Bill Text: CA SB1005 | 2015-2016 | Regular Session | Chaptered
Bill Title: Marriage.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2016-07-01 - Chaptered by Secretary of State. Chapter 50, Statutes of 2016. [SB1005 Detail]
Download: California-2015-SB1005-Chaptered.html
BILL NUMBER: SB 1005 CHAPTERED
BILL TEXT
CHAPTER 50
FILED WITH SECRETARY OF STATE JULY 1, 2016
APPROVED BY GOVERNOR JULY 1, 2016
PASSED THE SENATE JUNE 23, 2016
PASSED THE ASSEMBLY JUNE 16, 2016
AMENDED IN ASSEMBLY JUNE 6, 2016
AMENDED IN SENATE MARCH 16, 2016
INTRODUCED BY Senator Jackson
(Coauthor: Senator Leno)
FEBRUARY 10, 2016
An act to amend Section 17537.1 of, and to add Section 14.2 to,
the Business and Professions Code, to amend Sections 14, 50, 51.3,
51.11, 682, 682.1, 683, 1099, 1569, and 3390 of the Civil Code, to
amend Sections 17, 116.540, 371, 703.140, and 704.930 of the Code of
Civil Procedure, to amend Section 1201 of the Commercial Code, to
amend Sections 158, 704, 5612, 7612, 12482, 25102, and 25206 of, and
to add Section 12.2 to, the Corporations Code, to amend Sections
21100, 24803, and 68062 of, and to add Section 73.2 to, the Education
Code, to add Section 356.5 to the Elections Code, to amend Sections
917 and 980 of, and to add Section 215 to, the Evidence Code, to add
Section 143 to the Family Code, to amend Sections 14860, 18220,
18523, and 22327 of, and to add Section 11.2 to, the Financial Code,
to amend Section 8552.3 of, and to add Section 9.2 to, the Fish and
Game Code, to add Section 36 to the Food and Agricultural Code, to
amend Sections 9359.9, 9374, 21571, 21572, and 21573 of, and to add
Section 12.2 to, the Government Code, to add Section 12.2 to the
Harbors and Navigation Code, to amend Sections 1373.5, 18080,
25299.54, and 32501 of, and to add Section 12.2 to, the Health and
Safety Code, to amend Sections 10112, 10121.5, 10320, 10493, and
10494.6 of, and to add Section 12.2 to, the Insurance Code, to amend
Section 3503 of, and to add Section 12.2 to, the Labor Code, to add
Section 19 to the Military and Veterans Code, to amend Sections 7,
152.3, 197, 270e, 273.5, 281, 282, 284, 534, 4002, and 13700 of the
Penal Code, to amend Sections 59, 78, 100, 101, 103, 2407, 5040,
5042, 5203, 6122, 6227, 6240, 13500, and 13600 of, and to add Section
72 to, the Probate Code, to add Section 11005 to the Public Contract
Code, to add Section 12.2 to the Public Resources Code, to add
Section 12.2 to the Public Utilities Code, to amend Sections 17021,
17039, 17045, 17053.5, 17054, 17077, 17555, 18501, 18522, 18530,
18531.5, 18532, 19006, 19035, 19107, 19110, 19701.5, and 20542 of,
and to add Section 12.2 to, the Revenue and Taxation Code, to amend
Section 2804 of, and to add Section 12.2 to, the Streets and Highways
Code, to amend Section 13003 of, and to add Section 11.2 to, the
Unemployment Insurance Code, to add Section 12.2 to the Vehicle Code,
to add Section 12.2 to the Water Code, and to amend Sections 742.16,
7275, 12003, 14140, and 18291 of, and to add Section 12.2 to, the
Welfare and Institutions Code, relating to marriage.
LEGISLATIVE COUNSEL'S DIGEST
SB 1005, Jackson. Marriage.
Under existing law, a reference to "husband" and "wife," "spouses,"
or "married persons," or a comparable term, includes persons who are
lawfully married to each other and persons who were previously
lawfully married to each other, as is appropriate under the
circumstances of the particular case. Under existing law, registered
domestic partners have the same rights, protections, and benefits,
and are subject to the same responsibilities, obligations, and duties
under law, whether they derive from statutes, administrative
regulations, court rules, government policies, common law, or any
other provisions or sources of law, as are granted to and imposed
upon spouses. Existing law requires, where necessary to implement the
rights of registered domestic partners, gender-specific terms
referring to spouses to be construed to include domestic partners.
The bill would replace references to a "husband" or "wife" with
references to a "spouse," would define "spouse" as including
"registered domestic partner," and would make other conforming and
related changes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 14.2 is added to the Business and Professions
Code, to read:
14.2. "Spouse" includes "registered domestic partner," as
required by Section 297.5 of the Family Code.
SEC. 2. Section 17537.1 of the Business and Professions Code is
amended to read:
17537.1. (a) It is unlawful for any person, or an employee,
agent, or independent contractor employed or authorized by that
person, by any means, as part of an advertising plan or program, to
offer any incentive as an inducement to the recipient to visit a
location, attend a sales presentation, or contact a sales agent in
person, by telephone, or by mail, unless the offer clearly and
conspicuously discloses in writing, in readily understandable
language, all of the information required in paragraphs (1) and (2).
If the offer is not initially made in writing, the required
disclosures shall be received by the recipient in writing prior to
any scheduled visit to a location, sales presentation, or contact
with a sales agent. For purposes of this section, the term "incentive"
means any item or service of value, including, but not limited to,
any prize, gift, money, or other tangible property.
(1) The following disclosures shall appear on the front (or first)
page of the offer:
(A) The name and street address of the owner of the real or
personal property or the provider of the services which are the
subject of the visit, sales presentation, or contact with a sales
agent. If the offer is made by an agent or independent contractor
employed or authorized by the owner or provider, or is made under a
name other than the true name of the owner or provider, the name of
the owner or provider shall be more prominently and conspicuously
displayed than the name of the agent, independent contractor, or
other name.
(B) A general description of the business of the owner or provider
identified pursuant to subparagraph (A), and the purpose of any
requested visit, sales presentation, or contact with a sales agent,
which shall include a general description of the real or personal
property or services which are the subject of the sales presentation
and a clear statement, if applicable, that there will be a sales
presentation and the approximate duration of the visit and sales
presentation.
(C) If the recipient is not assured of receiving any particular
incentive, a statement of the odds of receiving each incentive
offered or, in the alternative, a clear statement describing the
location in the offer where the odds can be found. The odds shall be
stated in whole Arabic numbers in a format such as: "1 chance in
100,000" or "1:100,000." The odds and, where applicable, the
alternative statement describing their location, shall be printed in
a type size that is at least equal to that used for the standard text
on the front (or first) page of the offer.
(D) A clear statement, if applicable, that the offer is subject to
specific restrictions, qualifications, and conditions and a
statement describing the location in the offer where the
restrictions, qualifications, and conditions may be found. Both
statements shall be printed in a type size that is at least equal to
that used for the standard text on the front (or first) page of the
offer.
(2) The following disclosures shall appear in the offer, but need
not appear on the front (or first) page of the offer:
(A) Unless the odds are disclosed on the front (or first) page of
the offer, a statement of the odds of receiving each incentive
offered, printed in the size and format set forth in subparagraph (C)
of paragraph (1).
(B) All restrictions, qualifications, and other conditions which
must be satisfied before the recipient is entitled to receive the
incentive, including, but not limited to:
(i) Any deadline by which the recipient must visit the location,
attend the sales presentation, or contact the sales agent in order to
receive an incentive.
(ii) Any other conditions, such as a minimum age qualification, a
financial qualification, or a requirement that if the recipient is
married or in a registered domestic partnership, both spouses must be
present in order to receive the incentive. Any financial
qualifications shall be stated with a specificity sufficient to
enable the recipient to reasonably determine his or her eligibility.
(C) A statement that the owner or provider identified pursuant to
subparagraph (A) of paragraph (1) reserves the right to provide a
raincheck, or a substitute or like incentive, if those rights are
reserved.
(D) A statement that a recipient who receives an offered incentive
may request and will receive evidence showing that the incentive
provided matches the incentive randomly or otherwise selected for
distribution to that recipient.
(E) All other rules, terms, and conditions of the offer, plan, or
program.
(b) It is unlawful for any person making an offer subject to
subdivision (a), or any employee, agent, or independent contractor
employed or authorized by that person, to offer any incentive when
the person knows or has reason to know that the offered item will not
be available in a sufficient quantity based upon the reasonably
anticipated response to the offer.
(c) It is unlawful for any person making an offer subject to
subdivision (a), or any employee, agent, or independent contractor
employed or authorized by that person, to fail to provide any offered
incentive which any recipient who has responded to the offer in the
manner specified therein, who has performed the requirements
disclosed therein, and who has met the qualifications described
therein, is entitled to receive, unless the offered incentive is not
reasonably available and the offer discloses the reservation of a
right to provide a raincheck, or a like or substitute incentive, if
the offered incentive is unavailable.
(d) If the person making an offer subject to subdivision (a) is
unable to provide an offered incentive because of limitations of
supply, quantity, or quality that were not reasonably foreseeable or
controllable by the person making the offer, the person making the
offer shall inform the recipient of the recipient's right to receive
a raincheck for the incentive offered, unless the person making the
offer knows or has reasonable basis for knowing that the incentive
will not be reasonably available and shall inform the recipient of
the recipient's right to at least one of the following additional
options:
(1) The person making the offer will provide a like incentive of
equivalent or greater retail value or a raincheck therefor.
(2) The person making the offer will provide a substitute
incentive of equivalent or greater retail value.
(3) The person making the offer will provide a raincheck for the
like or substitute incentive.
(e) If a raincheck is provided, the person making an offer subject
to subdivision (a) shall, within a reasonable time, and in no event
later than 80 days, deliver the agreed incentive to the recipient's
address without additional cost or obligation to the recipient,
unless the incentive for which the raincheck is provided remains
unavailable because of limitations of supply, quantity, or quality
not reasonably foreseeable or controllable by the person making the
offer. In that case, the person making the offer shall, not later
than 30 days after the expiration of the 80 days, deliver a like
incentive of equal or greater retail value or, if an incentive is not
reasonably available to the person making the offer, a substitute
incentive of equal or greater retail value.
(f) Upon the request of a recipient who has received or claims a
right to receive any offered incentive, the person making an offer
subject to subdivision (a) shall furnish to the person sufficient
evidence showing that the incentive provided matches the incentive
randomly or otherwise selected for distribution to that recipient.
(g) It is unlawful for any person making an offer subject to
subdivision (a), or any employee, agent, or independent contractor
employed or authorized by that person, to:
(1) Use any printing styles, graphics, layouts, text, colors, or
formats on envelopes or on the offer that imply, create an
appearance, or would lead a reasonable person to believe, that the
offer originates from or is issued by or on behalf of a government or
public agency, public utility, public organization, insurance
company, credit reporting agency, bill collecting company, or law
firm, unless the same is true.
(2) Misrepresent the size, quantity, identity, value, or qualities
of any incentive.
(3) Misrepresent in any manner the odds of receiving any
particular incentive.
(4) Represent directly or by implication that the number of
participants has been significantly limited or that any person has
been selected to receive a particular incentive unless that is the
fact.
(5) Label any offer a notice of termination or notice of
cancellation.
(6) Misrepresent, in any manner, the offer, plan, or program or
the affiliation, connection, association, or contractual relationship
between the person making the offer and the owner or provider, if
they are not the same.
(h) If the major incentives are awarded or given at random, by the
assignment of a number to the incentives, that number shall be
actually assigned by the party contractually responsible for doing
so. The person making an offer subject to subdivision (a) hereof, or
the agent, employee, or independent contractor employed or authorized
by that person, if any, shall maintain, for a period of one year
after the date the offer is made, the records that show that the
winning numbers or opportunity to receive the major incentives have
been deposited in the mail or otherwise made available to recipients
in accordance with the odds statement provided pursuant to
subparagraph (C) of paragraph (1) of subdivision (a) hereof. The
records shall be made available to the Attorney General within 30
days after written request therefor. Postal receipt records,
affidavits of mailing, or a list of winners or recipients of the
major incentives shall be deemed to satisfy the requirements of this
section.
SEC. 3. Section 14 of the Civil Code is amended to read:
14. (a) Words used in this code in the present tense include the
future as well as the present; words used in the masculine gender
include the feminine and neuter; the singular number includes the
plural, and the plural the singular; the word person includes a
corporation as well as a natural person; county includes city and
county; writing includes printing and typewriting; oath includes
affirmation or declaration; and every mode of oral statement, under
oath or affirmation, is embraced by the term "testify," and every
written one in the term "depose"; signature or subscription includes
mark, when the person cannot write, his name being written near it,
by a person who writes his own name as a witness; provided, that when
a signature is by mark it must in order that the same may be
acknowledged or may serve as the signature to any sworn statement be
witnessed by two persons who must subscribe their own names as
witnesses thereto.
(b) The following words have in this code the signification
attached to them in this section, unless otherwise apparent from the
context:
(1) The word "property" includes property real and personal.
(2) The words "real property" are coextensive with lands,
tenements, and hereditaments.
(3) The words "personal property" include money, goods, chattels,
things in action, and evidences of debt.
(4) The word "month" means a calendar month, unless otherwise
expressed.
(5) The word "will" includes codicil.
(6) The word "section" whenever hereinafter employed refers to a
section of this code, unless some other code or statute is expressly
mentioned.
(7) The word "spouse" includes a registered domestic partner, as
required by Section 297.5 of the Family Code.
SEC. 4. Section 50 of the Civil Code is amended to read:
50. Any necessary force may be used to protect from wrongful
injury the person or property of oneself, or of a spouse, child,
parent, or other relative, or member of one's family, or of a ward,
servant, master, or guest.
SEC. 5. Section 51.3 of the Civil Code is amended to read:
51.3. (a) The Legislature finds and declares that this section is
essential to establish and preserve specially designed accessible
housing for senior citizens. There are senior citizens who need
special living environments and services, and find that there is an
inadequate supply of this type of housing in the state.
(b) For the purposes of this section, the following definitions
apply:
(1) "Qualifying resident" or "senior citizen" means a person 62
years of age or older, or 55 years of age or older in a senior
citizen housing development.
(2) "Qualified permanent resident" means a person who meets both
of the following requirements:
(A) Was residing with the qualifying resident or senior citizen
prior to the death, hospitalization, or other prolonged absence of,
or the dissolution of marriage with, the qualifying resident or
senior citizen.
(B) Was 45 years of age or older, or was a spouse, cohabitant, or
person providing primary physical or economic support to the
qualifying resident or senior citizen.
(3) "Qualified permanent resident" also means a disabled person or
person with a disabling illness or injury who is a child or
grandchild of the senior citizen or a qualified permanent resident as
defined in paragraph (2) who needs to live with the senior citizen
or qualified permanent resident because of the disabling condition,
illness, or injury. For purposes of this section, "disabled" means a
person who has a disability as defined in subdivision (b) of Section
54. A "disabling injury or illness" means an illness or injury which
results in a condition meeting the definition of disability set forth
in subdivision (b) of Section 54.
(A) For any person who is a qualified permanent resident under
this paragraph whose disabling condition ends, the owner, board of
directors, or other governing body may require the formerly disabled
resident to cease residing in the development upon receipt of six
months' written notice; provided, however, that the owner, board of
directors, or other governing body may allow the person to remain a
resident for up to one year after the disabling condition ends.
(B) The owner, board of directors, or other governing body of the
senior citizen housing development may take action to prohibit or
terminate occupancy by a person who is a qualified permanent resident
under this paragraph if the owner, board of directors, or other
governing body finds, based on credible and objective evidence, that
the person is likely to pose a significant threat to the health or
safety of others that cannot be ameliorated by means of a reasonable
accommodation; provided, however, that the action to prohibit or
terminate the occupancy may be taken only after doing both of the
following:
(i) Providing reasonable notice to and an opportunity to be heard
for the disabled person whose occupancy is being challenged, and
reasonable notice to the coresident parent or grandparent of that
person.
(ii) Giving due consideration to the relevant, credible, and
objective information provided in the hearing. The evidence shall be
taken and held in a confidential manner, pursuant to a closed
session, by the owner, board of directors, or other governing body in
order to preserve the privacy of the affected persons.
The affected persons shall be entitled to have present at the
hearing an attorney or any other person authorized by them to speak
on their behalf or to assist them in the matter.
(4) "Senior citizen housing development" means a residential
development developed, substantially rehabilitated, or substantially
renovated for, senior citizens that has at least 35 dwelling units.
Any senior citizen housing development which is required to obtain a
public report under Section 11010 of the Business and Professions
Code and which submits its application for a public report after July
1, 2001, shall be required to have been issued a public report as a
senior citizen housing development under Section 11010.05 of the
Business and Professions Code. No housing development constructed
prior to January 1, 1985, shall fail to qualify as a senior citizen
housing development because it was not originally developed or put to
use for occupancy by senior citizens.
(5) "Dwelling unit" or "housing" means any residential
accommodation other than a mobilehome.
(6) "Cohabitant" refers to persons who live together as spouses or
persons who are domestic partners within the meaning of Section 297
of the Family Code.
(7) "Permitted health care resident" means a person hired to
provide live-in, long-term, or terminal health care to a qualifying
resident, or a family member of the qualifying resident providing
that care. For the purposes of this section, the care provided by a
permitted health care resident must be substantial in nature and must
provide either assistance with necessary daily activities or medical
treatment, or both.
A permitted health care resident shall be entitled to continue his
or her occupancy, residency, or use of the dwelling unit as a
permitted resident in the absence of the senior citizen from the
dwelling unit only if both of the following are applicable:
(A) The senior citizen became absent from the dwelling unit due to
hospitalization or other necessary medical treatment and expects to
return to his or her residence within 90 days from the date the
absence began.
(B) The absent senior citizen or an authorized person acting for
the senior citizen submits a written request to the owner, board of
directors, or governing board stating that the senior citizen desires
that the permitted health care resident be allowed to remain in
order to be present when the senior citizen returns to reside in the
development.
Upon written request by the senior citizen or an authorized person
acting for the senior citizen, the owner, board of directors, or
governing board shall have the discretion to allow a permitted health
care resident to remain for a time period longer than 90 days from
the date that the senior citizen's absence began, if it appears that
the senior citizen will return within a period of time not to exceed
an additional 90 days.
(c) The covenants, conditions, and restrictions and other
documents or written policy shall set forth the limitations on
occupancy, residency, or use on the basis of age. Any such limitation
shall not be more exclusive than to require that one person in
residence in each dwelling unit may be required to be a senior
citizen and that each other resident in the same dwelling unit may be
required to be a qualified permanent resident, a permitted health
care resident, or a person under 55 years of age whose occupancy is
permitted under subdivision (h) of this section or under subdivision
(b) of Section 51.4. That limitation may be less exclusive, but shall
at least require that the persons commencing any occupancy of a
dwelling unit include a senior citizen who intends to reside in the
unit as his or her primary residence on a permanent basis. The
application of the rules set forth in this subdivision regarding
limitations on occupancy may result in less than all of the dwellings
being actually occupied by a senior citizen.
(d) The covenants, conditions, and restrictions or other documents
or written policy shall permit temporary residency, as a guest of a
senior citizen or qualified permanent resident, by a person of less
than 55 years of age for periods of time, not less than 60 days in
any year, that are specified in the covenants, conditions, and
restrictions or other documents or written policy.
(e) Upon the death or dissolution of marriage, or upon
hospitalization, or other prolonged absence of the qualifying
resident, any qualified permanent resident shall be entitled to
continue his or her occupancy, residency, or use of the dwelling unit
as a permitted resident. This subdivision shall not apply to a
permitted health care resident.
(f) The condominium, stock cooperative, limited-equity housing
cooperative, planned development, or multiple-family residential
rental property shall have been developed for, and initially been put
to use as, housing for senior citizens, or shall have been
substantially rehabilitated or renovated for, and immediately
afterward put to use as, housing for senior citizens, as provided in
this section; provided, however, that no housing development
constructed prior to January 1, 1985, shall fail to qualify as a
senior citizen housing development because it was not originally
developed for or originally put to use for occupancy by senior
citizens.
(g) The covenants, conditions, and restrictions or other documents
or written policies applicable to any condominium, stock
cooperative, limited-equity housing cooperative, planned development,
or multiple-family residential property that contained age
restrictions on January 1, 1984, shall be enforceable only to the
extent permitted by this section, notwithstanding lower age
restrictions contained in those documents or policies.
(h) Any person who has the right to reside in, occupy, or use the
housing or an unimproved lot subject to this section on January 1,
1985, shall not be deprived of the right to continue that residency,
occupancy, or use as the result of the enactment of this section.
(i) The covenants, conditions, and restrictions or other documents
or written policy of the senior citizen housing development shall
permit the occupancy of a dwelling unit by a permitted health care
resident during any period that the person is actually providing
live-in, long-term, or hospice health care to a qualifying resident
for compensation. For purposes of this subdivision, the term "for
compensation" shall include provisions of lodging and food in
exchange for care.
(j) Notwithstanding any other provision of this section, this
section shall not apply to the County of Riverside.
SEC. 6. Section 51.11 of the Civil Code is amended to read:
51.11. (a) The Legislature finds and declares that this section
is essential to establish and preserve housing for senior citizens.
There are senior citizens who need special living environments, and
find that there is an inadequate supply of this type of housing in
the state.
(b) For the purposes of this section, the following definitions
apply:
(1) "Qualifying resident" or "senior citizen" means a person 62
years of age or older, or 55 years of age or older in a senior
citizen housing development.
(2) "Qualified permanent resident" means a person who meets both
of the following requirements:
(A) Was residing with the qualifying resident or senior citizen
prior to the death, hospitalization, or other prolonged absence of,
or the dissolution of marriage with, the qualifying resident or
senior citizen.
(B) Was 45 years of age or older, or was a spouse, cohabitant, or
person providing primary physical or economic support to the
qualifying resident or senior citizen.
(3) "Qualified permanent resident" also means a disabled person or
person with a disabling illness or injury who is a child or
grandchild of the senior citizen or a qualified permanent resident as
defined in paragraph (2) who needs to live with the senior citizen
or qualified permanent resident because of the disabling condition,
illness, or injury. For purposes of this section, "disabled" means a
person who has a disability as defined in subdivision (b) of Section
54. A "disabling injury or illness" means an illness or injury which
results in a condition meeting the definition of disability set forth
in subdivision (b) of Section 54.
(A) For any person who is a qualified permanent resident under
paragraph (3) whose disabling condition ends, the owner, board of
directors, or other governing body may require the formerly disabled
resident to cease residing in the development upon receipt of six
months' written notice; provided, however, that the owner, board of
directors, or other governing body may allow the person to remain a
resident for up to one year, after the disabling condition ends.
(B) The owner, board of directors, or other governing body of the
senior citizen housing development may take action to prohibit or
terminate occupancy by a person who is a qualified permanent resident
under paragraph (3) if the owner, board of directors, or other
governing body finds, based on credible and objective evidence, that
the person is likely to pose a significant threat to the health or
safety of others that cannot be ameliorated by means of a reasonable
accommodation; provided, however, that action to prohibit or
terminate the occupancy may be taken only after doing both of the
following:
(i) Providing reasonable notice to and an opportunity to be heard
for the disabled person whose occupancy is being challenged, and
reasonable notice to the coresident parent or grandparent of that
person.
(ii) Giving due consideration to the relevant, credible, and
objective information provided in that hearing. The evidence shall be
taken and held in a confidential manner, pursuant to a closed
session, by the owner, board of directors, or other governing body in
order to preserve the privacy of the affected persons.
The affected persons shall be entitled to have present at the
hearing an attorney or any other person authorized by them to speak
on their behalf or to assist them in the matter.
(4) "Senior citizen housing development" means a residential
development developed with more than 20 units as a senior community
by its developer and zoned as a senior community by a local
governmental entity, or characterized as a senior community in its
governing documents, as these are defined in Section 4150, or
qualified as a senior community under the federal Fair Housing
Amendments Act of 1988, as amended. Any senior citizen housing
development which is required to obtain a public report under Section
11010 of the Business and Professions Code and which submits its
application for a public report after July 1, 2001, shall be required
to have been issued a public report as a senior citizen housing
development under Section 11010.05 of the Business and Professions
Code.
(5) "Dwelling unit" or "housing" means any residential
accommodation other than a mobilehome.
(6) "Cohabitant" refers to persons who live together as spouses or
persons who are domestic partners within the meaning of Section 297
of the Family Code.
(7)
"Permitted health care resident" means a person hired to provide
live-in, long-term, or terminal health care to a qualifying resident,
or a family member of the qualifying resident providing that care.
For the purposes of this section, the care provided by a permitted
health care resident must be substantial in nature and must provide
either assistance with necessary daily activities or medical
treatment, or both.
A permitted health care resident shall be entitled to continue his
or her occupancy, residency, or use of the dwelling unit as a
permitted resident in the absence of the senior citizen from the
dwelling unit only if both of the following are applicable:
(A) The senior citizen became absent from the dwelling unit due to
hospitalization or other necessary medical treatment and expects to
return to his or her residence within 90 days from the date the
absence began.
(B) The absent senior citizen or an authorized person acting for
the senior citizen submits a written request to the owner, board of
directors, or governing board stating that the senior citizen desires
that the permitted health care resident be allowed to remain in
order to be present when the senior citizen returns to reside in the
development.
Upon written request by the senior citizen or an authorized person
acting for the senior citizen, the owner, board of directors, or
governing board shall have the discretion to allow a permitted health
care resident to remain for a time period longer than 90 days from
the date that the senior citizen's absence began, if it appears that
the senior citizen will return within a period of time not to exceed
an additional 90 days.
(c) The covenants, conditions, and restrictions and other
documents or written policy shall set forth the limitations on
occupancy, residency, or use on the basis of age. Any limitation
shall not be more exclusive than to require that one person in
residence in each dwelling unit may be required to be a senior
citizen and that each other resident in the same dwelling unit may be
required to be a qualified permanent resident, a permitted health
care resident, or a person under 55 years of age whose occupancy is
permitted under subdivision (g) of this section or subdivision (b) of
Section 51.12. That limitation may be less exclusive, but shall at
least require that the persons commencing any occupancy of a dwelling
unit include a senior citizen who intends to reside in the unit as
his or her primary residence on a permanent basis. The application of
the rules set forth in this subdivision regarding limitations on
occupancy may result in less than all of the dwellings being actually
occupied by a senior citizen.
(d) The covenants, conditions, and restrictions or other documents
or written policy shall permit temporary residency, as a guest of a
senior citizen or qualified permanent resident, by a person of less
than 55 years of age for periods of time, not more than 60 days in
any year, that are specified in the covenants, conditions, and
restrictions or other documents or written policy.
(e) Upon the death or dissolution of marriage, or upon
hospitalization, or other prolonged absence of the qualifying
resident, any qualified permanent resident shall be entitled to
continue his or her occupancy, residency, or use of the dwelling unit
as a permitted resident. This subdivision shall not apply to a
permitted health care resident.
(f) The covenants, conditions, and restrictions or other documents
or written policies applicable to any condominium, stock
cooperative, limited-equity housing cooperative, planned development,
or multiple-family residential property that contained age
restrictions on January 1, 1984, shall be enforceable only to the
extent permitted by this section, notwithstanding lower age
restrictions contained in those documents or policies.
(g) Any person who has the right to reside in, occupy, or use the
housing or an unimproved lot subject to this section on or after
January 1, 1985, shall not be deprived of the right to continue that
residency, occupancy, or use as the result of the enactment of this
section by Chapter 1147 of the Statutes of 1996.
(h) A housing development may qualify as a senior citizen housing
development under this section even though, as of January 1, 1997, it
does not meet the definition of a senior citizen housing development
specified in subdivision (b), if the development complies with that
definition for every unit that becomes occupied after January 1,
1997, and if the development was once within that definition, and
then became noncompliant with the definition as the result of any one
of the following:
(1) The development was ordered by a court or a local, state, or
federal enforcement agency to allow persons other than qualifying
residents, qualified permanent residents, or permitted health care
residents to reside in the development.
(2) The development received a notice of a pending or proposed
action in, or by, a court, or a local, state, or federal enforcement
agency, which action could have resulted in the development being
ordered by a court or a state or federal enforcement agency to allow
persons other than qualifying residents, qualified permanent
residents, or permitted health care residents to reside in the
development.
(3) The development agreed to allow persons other than qualifying
residents, qualified permanent residents, or permitted health care
residents to reside in the development by entering into a
stipulation, conciliation agreement, or settlement agreement with a
local, state, or federal enforcement agency or with a private party
who had filed, or indicated an intent to file, a complaint against
the development with a local, state, or federal enforcement agency,
or file an action in a court.
(4) The development allowed persons other than qualifying
residents, qualified permanent residents, or permitted health care
residents to reside in the development on the advice of counsel in
order to prevent the possibility of an action being filed by a
private party or by a local, state, or federal enforcement agency.
(i) The covenants, conditions, and restrictions or other documents
or written policy of the senior citizen housing development shall
permit the occupancy of a dwelling unit by a permitted health care
resident during any period that the person is actually providing
live-in, long-term, or hospice health care to a qualifying resident
for compensation.
(j) This section shall only apply to the County of Riverside.
SEC. 7. Section 682 of the Civil Code is amended to read:
682. The ownership of property by several persons is either:
(a) Of joint interest.
(b) Of partnership interests.
(c) Of interests in common.
(d) Of community interest of spouses.
SEC. 8. Section 682.1 of the Civil Code is amended to read:
682.1. (a) Community property of spouses, when expressly declared
in the transfer document to be community property with right of
survivorship, and which may be accepted in writing on the face of the
document by a statement signed or initialed by the grantees, shall,
upon the death of one of the spouses, pass to the survivor, without
administration, pursuant to the terms of the instrument, subject to
the same procedures, as property held in joint tenancy. Prior to the
death of either spouse, the right of survivorship may be terminated
pursuant to the same procedures by which a joint tenancy may be
severed. Part 1 (commencing with Section 5000) of Division 5 of the
Probate Code and Chapter 2 (commencing with Section 13540), Chapter 3
(commencing with Section 13550), and Chapter 3.5 (commencing with
Section 13560) of Part 2 of Division 8 of the Probate Code apply to
this property.
(b) This section does not apply to a joint account in a financial
institution to which Part 2 (commencing with Section 5100) of
Division 5 of the Probate Code applies.
(c) This section shall become operative on July 1, 2001, and shall
apply to instruments created on or after that date.
SEC. 9. Section 683 of the Civil Code is amended to read:
683. (a) A joint interest is one owned by two or more persons in
equal shares, by a title created by a single will or transfer, when
expressly declared in the will or transfer to be a joint tenancy, or
by transfer from a sole owner to himself or herself and others, or
from tenants in common or joint tenants to themselves or some of
them, or to themselves or any of them and others, or from spouses,
when holding title as community property or otherwise to themselves
or to themselves and others or to one of them and to another or
others, when expressly declared in the transfer to be a joint
tenancy, or when granted or devised to executors or trustees as joint
tenants. A joint tenancy in personal property may be created by a
written transfer, instrument, or agreement.
(b) Provisions of this section do not apply to a joint account in
a financial institution if Part 2 (commencing with Section 5100) of
Division 5 of the Probate Code applies to such account.
SEC. 10. Section 1099 of the Civil Code is amended to read:
1099. (a) As soon as practical before transfer of title of any
real property or the execution of a real property sales contract as
defined in Section 2985, the transferor, fee owner, or his or her
agent, shall deliver to the transferee a copy of a structural pest
control inspection report prepared pursuant to Section 8516 of the
Business and Professions Code upon which any certification in
accordance with Section 8519 of the Business and Professions Code may
be made, provided that certification or preparation of a report is a
condition of the contract effecting that transfer, or is a
requirement imposed as a condition of financing such transfer.
(b) If a notice of work completed as contemplated by Section 8518
of the Business and Professions Code, indicating action by a
structural pest control licensee in response to an inspection report
delivered or to be delivered under provisions of subdivision (a), or
a certification pursuant to Section 8519 of the Business and
Professions Code, has been received by a transferor or his or her
agent before transfer of title or execution of a real property sales
contract as defined in Section 2985, it shall be furnished to the
transferee as soon as practical before transfer of title or the
execution of such real property sales contract.
(c) Delivery to a transferee as used in this section means
delivery in person or by mail to the transferee himself or herself or
any person authorized to act for him or her in the transaction or to
such additional transferees who have requested such delivery from
the transferor or his or her agent in writing. For the purposes of
this section, delivery to either spouse shall be deemed delivery to a
transferee, unless the contract affecting the transfer states
otherwise.
(d) No transfer of title of real property shall be invalidated
solely because of the failure of any person to comply with the
provisions of this section unless such failure is an act or omission
which would be a valid ground for rescission of such transfer in the
absence of this section.
SEC. 11. Section 1569 of the Civil Code is amended to read:
1569. Duress consists in any of the following:
(a) Unlawful confinement of the person of the party, or of the
spouse of such party, or of an ancestor, descendant, or adopted child
of such party or spouse.
(b) Unlawful detention of the property of any such person.
(c) Confinement of such person, lawful in form, but fraudulently
obtained, or fraudulently made unjustly harassing or oppressive.
SEC. 12. Section 3390 of the Civil Code is amended to read:
3390. The following obligations cannot be specifically enforced:
(a) An obligation to render personal service.
(b) An obligation to employ another in personal service.
(c) An agreement to perform an act which the party has not power
lawfully to perform when required to do so.
(d) An agreement to procure the act or consent of the spouse of
the contracting party, or of any other third person.
(e) An agreement, the terms of which are not sufficiently certain
to make the precise act which is to be done clearly ascertainable.
SEC. 13. Section 17 of the Code of Civil Procedure is amended to
read:
17. (a) Words used in this code in the present tense include the
future as well as the present. Words used in the masculine gender
include the feminine and neuter. The singular number includes the
plural and the plural number includes the singular.
(b) As used in this code, the following words have the following
meanings, unless otherwise apparent from the context:
(1) "Affinity" signifies the connection existing in consequence of
marriage, between each of the married persons and the blood
relatives of the other when applied to the marriage relation.
(2) "County" includes "city and county."
(3) "Electronic signature" means an electronic sound, symbol, or
process attached to or logically associated with an electronic record
and executed or adopted by a person with the intent to sign the
electronic record.
(4) "Month" means a calendar month, unless otherwise expressed.
(5) "Oath" includes an affirmation or declaration.
(A) "Depose" includes any written statement made under oath or
affirmation.
(B) "Testify" includes any mode of oral statement made under oath
or affirmation.
(6) "Person" includes a corporation as well as a natural person.
(7) "Process" signifies a writ or summons issued in the course of
a judicial proceeding.
(8) "Property" includes both personal and real property.
(A) "Personal property" includes money, goods, chattels, things in
action, and evidences of debt.
(B) "Real property" is coextensive with lands, tenements, and
hereditaments.
(9) "Section" refers to a section of this code, unless some other
code or statute is expressly mentioned.
(10) "Sheriff" includes marshal.
(11) "Signature" or "subscription" includes a mark of a person's
name, if the person cannot write, with his or her name being written
near it by a person who writes his or her own name as a witness. In
order that a mark may be acknowledged or serve as the signature to
any sworn statement, it shall be witnessed by two persons who shall
subscribe their own names as witnesses thereto.
(12) "Spouse" includes "registered domestic partner," as required
by Section 297.5 of the Family Code.
(13) "State" includes the District of Columbia and the territories
when applied to the different parts of the United States, and the
words "United States" may include the district and territories.
(14) "Will" includes codicil.
(15) "Writ" means an order or precept in writing, issued in the
name of the people, or of a court or judicial officer.
(16) "Writing" includes printing and typewriting.
SEC. 14. Section 116.540 of the Code of Civil Procedure is amended
to read:
116.540. (a) Except as permitted by this section, no individual
other than the plaintiff and the defendant may take part in the
conduct or defense of a small claims action.
(b) Except as additionally provided in subdivision (i), a
corporation may appear and participate in a small claims action only
through a regular employee, or a duly appointed or elected officer or
director, who is employed, appointed, or elected for purposes other
than solely representing the corporation in small claims court.
(c) A party who is not a corporation or a natural person may
appear and participate in a small claims action only through a
regular employee, or a duly appointed or elected officer or director,
or in the case of a partnership, a partner, engaged for purposes
other than solely representing the party in small claims court.
(d) If a party is an individual doing business as a sole
proprietorship, the party may appear and participate in a small
claims action by a representative and without personally appearing if
both of the following conditions are met:
(1) The claim can be proved or disputed by evidence of an account
that constitutes a business record as defined in Section 1271 of the
Evidence Code, and there is no other issue of fact in the case.
(2) The representative is a regular employee of the party for
purposes other than solely representing the party in small claims
actions and is qualified to testify to the identity and mode of
preparation of the business record.
(e) A plaintiff is not required to personally appear, and may
submit declarations to serve as evidence supporting his or her claim
or allow another individual to appear and participate on his or her
behalf, if (1) the plaintiff is serving on active duty in the United
States Armed Forces outside this state, (2) the plaintiff was
assigned to his or her duty station after his or her claim arose, (3)
the assignment is for more than six months, (4) the representative
is serving without compensation, and (5) the representative has
appeared in small claims actions on behalf of others no more than
four times during the calendar year. The defendant may file a claim
in the same action in an amount not to exceed the jurisdictional
limits stated in Sections 116.220, 116.221, and 116.231.
(f) A party incarcerated in a county jail, a Department of
Corrections and Rehabilitation facility, or a Division of Juvenile
Facilities facility is not required to personally appear, and may
submit declarations to serve as evidence supporting his or her claim,
or may authorize another individual to appear and participate on his
or her behalf if that individual is serving without compensation and
has appeared in small claims actions on behalf of others no more
than four times during the calendar year.
(g) A defendant who is a nonresident owner of real property may
defend against a claim relating to that property without personally
appearing by (1) submitting written declarations to serve as evidence
supporting his or her defense, (2) allowing another individual to
appear and participate on his or her behalf if that individual is
serving without compensation and has appeared in small claims actions
on behalf of others no more than four times during the calendar
year, or (3) taking the action described in both (1) and (2).
(h) A party who is an owner of rental real property may appear and
participate in a small claims action through a property agent under
contract with the owner to manage the rental of that property, if (1)
the owner has retained the property agent principally to manage the
rental of that property and not principally to represent the owner in
small claims court, and (2) the claim relates to the rental
property.
(i) A party that is an association created to manage a common
interest development, as defined in Section 4100 or in Sections 6528
and 6534 of the Civil Code, may appear and participate in a small
claims action through an agent, a management company representative,
or bookkeeper who appears on behalf of that association.
(j) At the hearing of a small claims action, the court shall
require any individual who is appearing as a representative of a
party under subdivisions (b) to (i), inclusive, to file a declaration
stating (1) that the individual is authorized to appear for the
party, and (2) the basis for that authorization. If the
representative is appearing under subdivision (b), (c), (d), (h), or
(i), the declaration also shall state that the individual is not
employed solely to represent the party in small claims court. If the
representative is appearing under subdivision (e), (f), or (g), the
declaration also shall state that the representative is serving
without compensation, and has appeared in small claims actions on
behalf of others no more than four times during the calendar year.
(k) A spouse who sues or who is sued with his or her spouse may
appear and participate on behalf of his or her spouse if (1) the
claim is a joint claim, (2) the represented spouse has given his or
her consent, and (3) the court determines that the interests of
justice would be served.
( l ) If the court determines that a party cannot
properly present his or her claim or defense and needs assistance,
the court may in its discretion allow another individual to assist
that party.
(m) Nothing in this section shall operate or be construed to
authorize an attorney to participate in a small claims action except
as expressly provided in Section 116.530.
SEC. 15. Section 371 of the Code of Civil Procedure is amended to
read:
371. If spouses are sued together, each may defend for his or her
own right, but if one spouse neglects to defend, the other spouse
may defend for that spouse's right also.
SEC. 16. Section 703.140 of the Code of Civil Procedure is amended
to read:
703.140. (a) In a case under Title 11 of the United States Code,
all of the exemptions provided by this chapter, including the
homestead exemption, other than the provisions of subdivision (b) are
applicable regardless of whether there is a money judgment against
the debtor or whether a money judgment is being enforced by execution
sale or any other procedure, but the exemptions provided by
subdivision (b) may be elected in lieu of all other exemptions
provided by this chapter, as follows:
(1) If spouses are joined in the petition, they jointly may elect
to utilize the applicable exemption provisions of this chapter other
than the provisions of subdivision (b), or to utilize the applicable
exemptions set forth in subdivision (b), but not both.
(2) If the petition is filed individually, and not jointly, for a
spouse, the exemptions provided by this chapter other than the
provisions of subdivision (b) are applicable, except that, if both of
the spouses effectively waive in writing the right to claim, during
the period the case commenced by filing the petition is pending, the
exemptions provided by the applicable exemption provisions of this
chapter, other than subdivision (b), in any case commenced by filing
a petition for either of them under Title 11 of the United States
Code, then they may elect to instead utilize the applicable
exemptions set forth in subdivision (b).
(3) If the petition is filed for an unmarried person, that person
may elect to utilize the applicable exemption provisions of this
chapter other than subdivision (b), or to utilize the applicable
exemptions set forth in subdivision (b), but not both.
(b) The following exemptions may be elected as provided in
subdivision (a):
(1) The debtor's aggregate interest, not to exceed twenty-four
thousand sixty dollars ($24,060) in value, in real property or
personal property that the debtor or a dependent of the debtor uses
as a residence, in a cooperative that owns property that the debtor
or a dependent of the debtor uses as a residence.
(2) The debtor's interest, not to exceed four thousand eight
hundred dollars ($4,800) in value, in one or more motor vehicles.
(3) The debtor's interest, not to exceed six hundred dollars
($600) in value in any particular item, in household furnishings,
household goods, wearing apparel, appliances, books, animals, crops,
or musical instruments, that are held primarily for the personal,
family, or household use of the debtor or a dependent of the debtor.
(4) The debtor's aggregate interest, not to exceed one thousand
four hundred twenty-five dollars ($1,425) in value, in jewelry held
primarily for the personal, family, or household use of the debtor or
a dependent of the debtor.
(5) The debtor's aggregate interest, not to exceed in value one
thousand two hundred eighty dollars ($1,280) plus any unused amount
of the exemption provided under paragraph (1), in any property.
(6) The debtor's aggregate interest, not to exceed seven thousand
one hundred seventy-five dollars ($7,175) in value, in any
implements, professional books, or tools of the trade of the debtor
or the trade of a dependent of the debtor.
(7) Any unmatured life insurance contract owned by the debtor,
other than a credit life insurance contract.
(8) The debtor's aggregate interest, not to exceed in value twelve
thousand eight hundred sixty dollars ($12,860), in any accrued
dividend or interest under, or loan value of, any unmatured life
insurance contract owned by the debtor under which the insured is the
debtor or an individual of whom the debtor is a dependent.
(9) Professionally prescribed health aids for the debtor or a
dependent of the debtor.
(10) The debtor's right to receive any of the following:
(A) A social security benefit, unemployment compensation, or a
local public assistance benefit.
(B) A veterans' benefit.
(C) A disability, illness, or unemployment benefit.
(D) Alimony, support, or separate maintenance, to the extent
reasonably necessary for the support of the debtor and any dependent
of the debtor.
(E) A payment under a stock bonus, pension, profit-sharing,
annuity, or similar plan or contract on account of illness,
disability, death, age, or length of service, to the extent
reasonably necessary for the support of the debtor and any dependent
of the debtor, unless all of the following apply:
(i) That plan or contract was established by or under the auspices
of an insider that employed the debtor at the time the debtor's
rights under the plan or contract arose.
(ii) The payment is on account of age or length of service.
(iii) That plan or contract does not qualify under Section 401(a),
403(a), 403(b), 408, or 408A of the Internal Revenue Code of 1986.
(11) The debtor's right to receive, or property that is traceable
to, any of the following:
(A) An award under a crime victim's reparation law.
(B) A payment on account of the wrongful death of an individual of
whom the debtor was a dependent, to the extent reasonably necessary
for the support of the debtor and any dependent of the debtor.
(C) A payment under a life insurance contract that insured the
life of an individual of whom the debtor was a dependent on the date
of that individual's death, to the extent reasonably necessary for
the support of the debtor and any dependent of the debtor.
(D) A payment, not to exceed twenty-four thousand sixty dollars
($24,060), on account of personal bodily injury of the debtor or an
individual of whom the debtor is a dependent.
(E) A payment in compensation of loss of future earnings of the
debtor or an individual of whom the debtor is or was a dependent, to
the extent reasonably necessary for the support of the debtor and any
dependent of the debtor.
SEC. 17. Section 704.930 of the Code of Civil Procedure is amended
to read:
704.930. (a) A homestead
declaration recorded pursuant to this article shall contain all of
the following:
(1) The name of the declared homestead owner. Spouses both may be
named as declared homestead owners in the same homestead declaration
if each owns an interest in the dwelling selected as the declared
homestead.
(2) A description of the declared homestead.
(3) A statement that the declared homestead is the principal
dwelling of the declared homestead owner or such person's spouse, and
that the declared homestead owner or such person's spouse resides in
the declared homestead on the date the homestead declaration is
recorded.
(b) The homestead declaration shall be executed and acknowledged
in the manner of an acknowledgment of a conveyance of real property
by at least one of the following persons:
(1) The declared homestead owner.
(2) The spouse of the declared homestead owner.
(3) The guardian or conservator of the person or estate of either
of the persons listed in paragraph (1) or (2). The guardian or
conservator may execute, acknowledge, and record a homestead
declaration without the need to obtain court authorization.
(4) A person acting under a power of attorney or otherwise
authorized to act on behalf of a person listed in paragraph (1) or
(2).
(c) The homestead declaration shall include a statement that the
facts stated in the homestead declaration are known to be true as of
the personal knowledge of the person executing and acknowledging the
homestead declaration. If the homestead declaration is executed and
acknowledged by a person listed in paragraph (3) or (4) of
subdivision (b), it shall also contain a statement that the person
has authority to so act on behalf of the declared homestead owner or
the spouse of the declared homestead owner and the source of the
person's authority.
SEC. 18. Section 1201 of the Commercial Code is amended to read:
1201. (a) Unless the context otherwise requires, words or phrases
defined in this section, or in the additional definitions contained
in other divisions of this code that apply to particular divisions or
chapters thereof, have the meanings stated.
(b) Subject to definitions contained in other divisions of this
code that apply to particular divisions or chapters thereof:
(1) "Action," in the sense of a judicial proceeding, includes
recoupment, counterclaim, setoff, suit in equity, and any other
proceeding in which rights are determined.
(2) "Aggrieved party" means a party entitled to pursue a remedy.
(3) "Agreement," as distinguished from "contract," means the
bargain of the parties in fact, as found in their language or
inferred from other circumstances, including course of performance,
course of dealing, or usage of trade as provided in Section 1303.
(4) "Bank" means a person engaged in the business of banking, and
includes a savings bank, savings and loan association, credit union,
and trust company.
(5) "Bearer" means a person in possession of a negotiable
instrument, document of title, or certificated security that is
payable to bearer or endorsed in blank.
(6) "Bill of lading" means a document evidencing the receipt of
goods for shipment issued by a person engaged in the business of
transporting or forwarding goods.
(7) "Branch" includes a separately incorporated foreign branch of
a bank.
(8) "Burden of establishing" a fact means the burden of persuading
the trier of fact that the existence of the fact is more probable
than its nonexistence.
(9) "Buyer in ordinary course of business" means a person that
buys goods in good faith, without knowledge that the sale violates
the rights of another person in the goods, and in the ordinary course
from a person, other than a pawnbroker, in the business of selling
goods of that kind. A person buys goods in the ordinary course if the
sale to the person comports with the usual or customary practices in
the kind of business in which the seller is engaged or with the
seller's own usual or customary practices. A person that sells oil,
gas, or other minerals at the wellhead or minehead is a person in the
business of selling goods of that kind. A buyer in ordinary course
of business may buy for cash, by exchange of other property, or on
secured or unsecured credit, and may acquire goods or documents of
title under a preexisting contract for sale. Only a buyer that takes
possession of the goods or has a right to recover the goods from the
seller under Division 2 (commencing with Section 2101) may be a buyer
in ordinary course of business. "Buyer in ordinary course of
business" does not include a person that acquires goods in a transfer
in bulk or as security for or in total or partial satisfaction of a
money debt.
(10) "Conspicuous," with reference to a term, means so written,
displayed, or presented that a reasonable person against whom it is
to operate ought to have noticed it. Whether a term is "conspicuous"
or not is a decision for the court. Conspicuous terms include both of
the following:
(A) A heading in capitals equal to or greater in size than the
surrounding text, or in contrasting type, font, or color to the
surrounding text of the same or lesser size.
(B) Language in the body of a record or display in larger type
than the surrounding text, or in contrasting type, font, or color to
the surrounding text of the same size, or set off from surrounding
text of the same size by symbols or other marks that call attention
to the language.
(11) Reserved]
(12) "Contract," as distinguished from "agreement," means the
total legal obligation that results from the parties' agreement as
determined by this code and as supplemented by any other applicable
laws.
(13) "Creditor" includes a general creditor, a secured creditor, a
lien creditor, and any representative of creditors, including an
assignee for the benefit of creditors, a trustee in bankruptcy, a
receiver in equity, and an executor or administrator of an insolvent
debtor's or assignor's estate.
(14) "Defendant" includes a person in the position of defendant in
a counterclaim, cross-claim, or third-party claim.
(15) "Delivery," with respect to an instrument, document of title,
or chattel paper means voluntary transfer of possession.
(16) "Document of title" includes a bill of lading, dock warrant,
dock receipt, warehouse receipt, or order for the delivery of goods,
and also any other document which in the regular course of business
or financing is treated as adequately evidencing that the person in
possession of it is entitled to receive, hold, and dispose of the
document and the goods it covers. To be a document of title, a
document must purport to be issued by or addressed to a bailee and
purport to cover goods in the bailee's possession which are either
identified or are fungible portions of an identified mass.
(17) "Fault" means a default, breach, or wrongful act or omission.
(18) "Fungible goods" means:
(A) Goods of which any unit, by nature or usage of trade, is the
equivalent of any other like unit; or
(B) Goods that by agreement are treated as equivalent.
(19) "Genuine" means free of forgery or counterfeiting.
(20) "Good faith," except as otherwise provided in Division 5
(commencing with Section 5101), means honesty in fact and the
observance of reasonable commercial standards of fair dealing.
(21) "Holder," means:
(A) the person in possession of a negotiable instrument that is
payable either to bearer or, to an identified person that is the
person in possession; or
(B) the person in possession of a document of title if the goods
are deliverable either to bearer or to the order of the person in
possession.
(22) "Insolvency proceeding" includes an assignment for the
benefit of creditors or other proceeding intended to liquidate or
rehabilitate the estate of the person involved.
(23) "Insolvent" means:
(A) having generally ceased to pay debts in the ordinary course of
business other than as a result of bona fide dispute;
(B) being unable to pay debts as they become due; or
(C) being insolvent within the meaning of federal bankruptcy law.
(24) "Money" means a medium of exchange currently authorized or
adopted by a domestic or foreign government. The term includes a
monetary unit of account established by an intergovernmental
organization or by agreement between two or more countries.
(25) "Organization" means a person other than an individual.
(26) "Party," as distinguished from "third party," means a person
that has engaged in a transaction or made an agreement subject to
this code.
(27) "Person" means an individual, corporation, business trust,
estate, trust, partnership, limited liability company, association,
joint venture, government, governmental subdivision, agency, or
instrumentality, public corporation, or any other legal or commercial
entity.
(28) "Present value" means the amount as of a date certain of one
or more sums payable in the future, discounted to the date certain by
use of either an interest rate specified by the parties if that rate
is not manifestly unreasonable at the time the transaction is
entered into or, if an interest rate is not so specified, a
commercially reasonable rate that takes into account the facts and
circumstances at the time the transaction is entered into.
(29) "Purchase" means taking by sale, lease, discount,
negotiation, mortgage, pledge, lien, security interest, issue or
reissue, gift, or any other voluntary transaction creating an
interest in property.
(30) "Purchaser" means a person that takes by purchase.
(31) "Record" means information that is inscribed on a tangible
medium or that is stored in an electronic or other medium and is
retrievable in perceivable form.
(32) "Remedy" means any remedial right to which an aggrieved party
is entitled with or without resort to a tribunal.
(33) "Representative" means a person empowered to act for another,
including an agent, an officer of a corporation or association, and
a trustee, executor, or administrator of an estate.
(34) "Right" includes remedy.
(35) "Security interest" means an interest in personal property or
fixtures which secures payment or performance of an obligation.
"Security interest" includes any interest of a consignor and a buyer
of accounts, chattel paper, a payment intangible, or a promissory
note in a transaction that is subject to Division 9 (commencing with
Section 9101). "Security interest" does not include the special
property interest of a buyer of goods on identification of those
goods to a contract for sale under Section 2401, but a buyer may also
acquire a "security interest" by complying with Division 9
(commencing with Section 9101). Except as otherwise provided in
Section 2505, the right of a seller or lessor of goods under Division
2 (commencing with Section 2101) or Division 10 (commencing with
Section 10101) to retain or acquire possession of the goods is not a
"security interest," but a seller or lessor may also acquire a
"security interest" by complying with Division 9 (commencing with
Section 9101). The retention or reservation of title by a seller of
goods notwithstanding shipment or delivery to the buyer under Section
2401 is limited in effect to a reservation of a "security interest."
Whether a transaction in the form of a lease creates a "security
interest" is determined pursuant to Section 1203.
(36) "Send," in connection with a writing, record, or notice
means:
(A) to deposit in the mail or deliver for transmission by any
other usual means of communication with postage or cost of
transmission provided for and properly addressed and, in the case of
an instrument, to an address specified thereon or otherwise agreed
or, if there is none, to any address reasonable under the
circumstances; or
(B) in any other way to cause to be received any record or notice
within the time it would have arrived if properly sent.
(37) "Signed" includes using any symbol executed or adopted with
present intention to adopt or accept a writing.
(38) "Spouse" includes "registered domestic partner," as required
by Section 297.5 of the Family Code.
(39) "State" means a state of the United States, the District of
Columbia, Puerto Rico, the United States Virgin Islands, or any
territory or insular possession subject to the jurisdiction of the
United States.
(40) "Surety" includes a guarantor or other secondary obligor.
(41) "Term" means a portion of an agreement that relates to a
particular matter.
(42) "Unauthorized signature" means a signature made without
actual, implied, or apparent authority. The term includes a forgery.
(43) "Warehouse receipt" means a receipt issued by a person
engaged in the business of storing goods for hire.
(44) "Writing" includes printing, typewriting, or any other
intentional reduction to tangible form. "Written" has a corresponding
meaning.
SEC. 19. Section 12.2 is added to the Corporations Code, to read:
12.2. "Spouse" includes "registered domestic partner," as
required by Section 297.5 of the Family Code.
SEC. 20. Section 158 of the Corporations Code is amended to read:
158. (a) "Close corporation" means a corporation, including a
close social purpose corporation, whose articles contain, in addition
to the provisions required by Section 202, a provision that all of
the corporation's issued shares of all classes shall be held of
record by not more than a specified number of persons, not exceeding
35, and a statement, "This corporation is a close corporation."
(b) The special provisions referred to in subdivision (a) may be
included in the articles by amendment, but if such amendment is
adopted after the issuance of shares only by the affirmative vote of
all of the issued and outstanding shares of all classes.
(c) The special provisions referred to in subdivision (a) may be
deleted from the articles by amendment, or the number of shareholders
specified may be changed by amendment, but if such amendment is
adopted after the issuance of shares, only by the affirmative vote of
at least two-thirds of each class of the outstanding shares;
provided, however, that the articles may provide for a lesser vote,
but not less than a majority of the outstanding shares, or may deny a
vote to any class, or both.
(d) In determining the number of shareholders for the purposes of
the provision in the articles authorized by this section, spouses and
the personal representative of either shall be counted as one
regardless of how shares may be held by either or both of them, a
trust or personal representative of a decedent holding shares shall
be counted as one regardless of the number of trustees or
beneficiaries, and a partnership or corporation or business
association holding shares shall be counted as one (except that any
such trust or entity the primary purpose of which was the acquisition
or voting of the shares shall be counted according to the number of
beneficial interests therein).
(e) A corporation shall cease to be a close corporation upon the
filing of an amendment to its articles pursuant to subdivision (c)
or, if it shall have more than the maximum number of holders of
record of its shares specified in its articles as a result of an
inter vivos transfer of shares which is not void under subdivision
(d) of Section 418, the transfer of shares on distribution by will or
pursuant to the laws of descent and distribution, the dissolution of
a partnership or corporation or business association, or the
termination of a trust which holds shares, by court decree upon
dissolution of a marriage or otherwise by operation of law. Promptly
upon acquiring more than the specified number of holders of record of
its shares, a close corporation shall execute and file an amendment
to its articles deleting the special provisions referred to in
subdivision (a) and deleting any other provisions not permissible for
a corporation which is not a close corporation, which amendment
shall be promptly approved and filed by the board and need not be
approved by the outstanding shares.
(f) Nothing contained in this section shall invalidate any
agreement among the shareholders to vote for the deletion from the
articles of the special provisions referred to in subdivision (a)
upon the lapse of a specified period of time or upon the occurrence
of a certain event or condition or otherwise.
(g) The following sections contain specific references to close
corporations: Sections 186, 202, 204, 300, 418, 421, 1111, 1201,
1800, and 1904.
SEC. 21. Section 704 of the Corporations Code is amended to read:
704. (a) If shares stand of record in the names of two or more
persons, whether fiduciaries, members of a partnership, joint
tenants, tenants in common, spouses as community property, tenants by
the entirety, voting trustees, persons entitled to vote under a
shareholder voting agreement or otherwise, or if two or more persons
(including proxyholders) have the same fiduciary relationship
respecting the same shares, unless the secretary of the corporation
is given written notice to the contrary and is furnished with a copy
of the instrument or order appointing them or creating the
relationship wherein it is so provided, their acts with respect to
voting shall have the following effect:
(1) If only one votes, such act binds all.
(2) If more than one vote, the act of the majority so voting binds
all.
(3) If more than one vote, but the vote is evenly split on any
particular matter, each faction may vote the securities in question
proportionately.
(b) If the instrument so filed or the registration of the shares
shows that any such tenancy is held in unequal interests, a majority
or even split for the purpose of this section shall be a majority or
even split in interest.
SEC. 22. Section 5612 of the Corporations Code is amended to read:
5612. If a membership stands of record in the names of two or
more persons, whether fiduciaries, members of a partnership, joint
tenants, tenants in common, spouses as community property, tenants by
the entirety, or otherwise, or if two or more persons (including
proxyholders) have the same fiduciary relationship respecting the
same membership, unless the secretary of the corporation is given
written notice to the contrary and is furnished with a copy of the
instrument or order appointing them or creating the relationship
wherein it is so provided, their acts with respect to voting shall
have the following effect:
(a) If only one votes, such act binds all;
(b) If more than one vote, the act of the majority so voting binds
all.
SEC. 23. Section 7612 of the Corporations Code is amended to read:
7612. If a membership stands of record in the names of two or
more persons, whether fiduciaries, members of a partnership, joint
tenants, tenants in common, spouses as community property, tenants by
the entirety, persons entitled to vote under a voting agreement or
otherwise, or if two or more persons (including proxyholders) have
the same fiduciary relationship respecting the same membership,
unless the secretary of the corporation is given written notice to
the contrary and is furnished with a copy of the instrument or order
appointing them or creating the relationship wherein it is so
provided, their acts with respect to voting shall have the following
effect:
(a) If only one votes, such act binds all; or
(b) If more than one vote, the act of the majority so voting binds
all.
SEC. 24. Section 12482 of the Corporations Code is amended to
read:
12482. Unless otherwise provided in the articles or bylaws, if a
membership stands of record in the names of two or more persons,
whether fiduciaries, members of a partnership, joint tenants, tenants
in common, spouses as community property, tenants by the entirety,
persons entitled to vote under a voting agreement or otherwise, or if
two or more persons have the same fiduciary relationship respecting
the same membership, unless the secretary of the corporation is given
written notice to the contrary and is furnished with a copy of the
instrument or order appointing them or creating the relationship
wherein it is so provided, their acts with respect to voting shall
have the following effect:
(a) If only one vote, such act binds all; or
(b) If more than one vote, the act of the majority so voting binds
all.
SEC. 25. Section 25102 of the Corporations Code is amended to
read:
25102. The following transactions are exempted from the
provisions of Section 25110:
(a) Any offer (but not a sale) not involving any public offering
and the execution and delivery of any agreement for the sale of
securities pursuant to the offer if (1) the agreement contains
substantially the following provision: "The sale of the securities
that are the subject of this agreement has not been qualified with
the Commissioner of Corporations of the State of California and the
issuance of the securities or the payment or receipt of any part of
the consideration therefor prior to the qualification is unlawful,
unless the sale of securities is exempt from the qualification by
Section 25100, 25102, or 25105 of the California Corporations Code.
The rights of all parties to this agreement are expressly conditioned
upon the qualification being obtained, unless the sale is so exempt"
; and (2) no part of the purchase price is paid or received and none
of the securities are issued until the sale of the securities is
qualified under this law unless the sale of securities is exempt from
the qualification by this section, Section 25100, or 25105.
(b) Any offer (but not a sale) of a security for which a
registration statement has been filed under the Securities Act of
1933 but has not yet become effective, or for which an offering
statement under Regulation A has been filed but has not yet been
qualified, if no stop order or refusal order is in effect and no
public proceeding or examination looking towards an order is pending
under Section 8 of the act and no order under Section 25140 or
subdivision (a) of Section 25143 is in effect under this law.
(c) Any offer (but not a sale) and the execution and delivery of
any agreement for the sale of securities pursuant to the offer as may
be permitted by the commissioner upon application. Any negotiating
permit under this subdivision shall be conditioned to the effect that
none of the securities may be issued and none of the consideration
therefor may be received or accepted until the sale of the securities
is qualified under this law.
(d) Any transaction or agreement between the issuer and an
underwriter or among underwriters if the sale of the securities is
qualified, or exempt from qualification, at the time of distribution
thereof in this state, if any.
(e) Any offer or sale of any evidence of indebtedness, whether
secured or unsecured, and any guarantee thereof, in a transaction not
involving any public offering.
(f) Any offer or sale of any security in a transaction (other than
an offer or sale to a pension or profit-sharing trust of the issuer)
that meets each of the following criteria:
(1) Sales of the security are not made to more than 35 persons,
including persons not in this state.
(2) All purchasers either have a preexisting personal or business
relationship with the offeror or any of its partners, officers,
directors or controlling persons, or managers (as appointed or
elected by the members) if the offeror is a limited liability
company, or by reason of their business or financial experience or
the business or financial experience of their professional advisers
who are unaffiliated with and who are not compensated by the issuer
or any affiliate or selling agent of the issuer, directly or
indirectly, could be reasonably assumed to have the capacity to
protect their own interests in connection with the transaction.
(3) Each purchaser represents that the purchaser is purchasing for
the purchaser's own account (or a trust account if the purchaser is
a trustee) and not with a view to or for sale in connection with any
distribution of the security.
(4) The offer and sale of the security is not accomplished by the
publication of any advertisement. The number of purchasers referred
to above is exclusive of any described in subdivision (i), any
officer, director, or affiliate of the issuer, or manager (as
appointed or elected by the members) if the issuer is a limited
liability company, and any other purchaser who the commissioner
designates by rule. For purposes of this section, spouses (together
with any custodian or trustee acting for the account of their minor
children) are counted as one person and a partnership, corporation,
or other organization that was not specifically formed for the
purpose of purchasing the security offered in reliance upon this
exemption, is counted as one person. The commissioner shall by rule
require the issuer to file a notice of transactions under this
subdivision.
The failure to file the notice or the failure to file the notice
within the time specified by the rule of the commissioner shall not
affect the availability of the exemption. Any issuer that fails to
file the notice as provided by rule of the commissioner shall, within
15 business days after discovery of the failure to file the notice
or after demand by the commissioner, whichever occurs first, file the
notice and pay to the commissioner a fee equal to the fee payable
had the transaction been qualified under Section 25110. Neither the
filing of the notice nor the failure by the commissioner to comment
thereon precludes the commissioner from taking any action that the
commissioner deems necessary or appropriate under this division with
respect to the offer and sale of the securities.
(g) Any offer or sale of conditional sale agreements, equipment
trust certificates, or certificates of interest or participation
therein or partial assignments thereof, covering the purchase of
railroad rolling stock or equipment or the purchase of motor
vehicles, aircraft, or parts thereof, in a transaction not involving
any public offering.
(h) Any offer or sale of voting common stock by a corporation
incorporated in any state if, immediately after the proposed sale and
issuance, there will be only one class of stock of the corporation
outstanding that is owned beneficially by no more than 35 persons,
provided all of the following requirements have been met:
(1) The offer and sale of the stock is not accompanied by the
publication of any advertisement, and no selling expenses have been
given, paid, or incurred in connection therewith.
(2) The consideration to be received by the issuer for the stock
to be issued consists of any of the following:
(A)
Only assets (which may include cash) of an existing business
enterprise transferred to the issuer upon its initial organization,
of which all of the persons who are to receive the stock to be issued
pursuant to this exemption were owners during, and the enterprise
was operated for, a period of not less than one year immediately
preceding the proposed issuance, and the ownership of the enterprise
immediately prior to the proposed issuance was in the same
proportions as the shares of stock are to be issued.
(B) Only cash or cancellation of indebtedness for money borrowed,
or both, upon the initial organization of the issuer, provided all of
the stock is issued for the same price per share.
(C) Only cash, provided the sale is approved in writing by each of
the existing shareholders and the purchaser or purchasers are
existing shareholders.
(D) In a case where after the proposed issuance there will be only
one owner of the stock of the issuer, only any legal consideration.
(3) No promotional consideration has been given, paid, or incurred
in connection with the issuance. Promotional consideration means any
consideration paid directly or indirectly to a person who, acting
alone or in conjunction with one or more other persons, takes the
initiative in founding and organizing the business or enterprise of
an issuer for services rendered in connection with the founding or
organizing.
(4) A notice in a form prescribed by rule of the commissioner,
signed by an active member of the State Bar of California, is filed
with or mailed for filing to the commissioner not later than 10
business days after receipt of consideration for the securities by
the issuer. That notice shall contain an opinion of the member of the
State Bar of California that the exemption provided by this
subdivision is available for the offer and sale of the securities.
The failure to file the notice as required by this subdivision and
the rules of the commissioner shall not affect the availability of
this exemption. An issuer who fails to file the notice within the
time specified by this subdivision shall, within 15 business days
after discovery of the failure to file the notice or after demand by
the commissioner, whichever occurs first, file the notice and pay to
the commissioner a fee equal to the fee payable had the transaction
been qualified under Section 25110. The notice, except when filed on
behalf of a California corporation, shall be accompanied by an
irrevocable consent, in the form that the commissioner by rule
prescribes, appointing the commissioner or his or her successor in
office to be the issuer's attorney to receive service of any lawful
process in any noncriminal suit, action, or proceeding against it or
its successor that arises under this law or any rule or order
hereunder after the consent has been filed, with the same force and
validity as if served personally on the issuer. An issuer on whose
behalf a consent has been filed in connection with a previous
qualification or exemption from qualification under this law (or
application for a permit under any prior law if the application or
notice under this law states that the consent is still effective)
need not file another. Service may be made by leaving a copy of the
process in the office of the commissioner, but it is not effective
unless (A) the plaintiff, who may be the commissioner in a suit,
action, or proceeding instituted by him or her, forthwith sends
notice of the service and a copy of the process by registered or
certified mail to the defendant or respondent at its last address on
file with the commissioner, and (B) the plaintiff's affidavit of
compliance with this section is filed in the case on or before the
return day of the process, if any, or within the further time as the
court allows.
(5) Each purchaser represents that the purchaser is purchasing for
the purchaser's own account, or a trust account if the purchaser is
a trustee, and not with a view to or for sale in connection with any
distribution of the stock.
For the purposes of this subdivision, all securities held by
spouses, whether or not jointly, shall be considered to be owned by
one person, and all securities held by a corporation that has issued
stock pursuant to this exemption shall be considered to be held by
the shareholders to whom it has issued the stock.
All stock issued by a corporation pursuant to this subdivision as
it existed prior to the effective date of the amendments to this
section made during the 1996 portion of the 1995-96 Regular Session
that required the issuer to have stamped or printed prominently on
the face of the stock certificate a legend in a form prescribed by
rule of the commissioner restricting transfer of the stock in a
manner provided for by that rule shall not be subject to the transfer
restriction legend requirement and, by operation of law, the
corporation is authorized to remove that transfer restriction legend
from the certificates of those shares of stock issued by the
corporation pursuant to this subdivision as it existed prior to the
effective date of the amendments to this section made during the 1996
portion of the 1995-96 Regular Session.
(i) Any offer or sale (1) to a bank, savings and loan association,
trust company, insurance company, investment company registered
under the Investment Company Act of 1940, pension or profit-sharing
trust (other than a pension or profit-sharing trust of the issuer, a
self-employed individual retirement plan, or individual retirement
account), or other institutional investor or governmental agency or
instrumentality that the commissioner may designate by rule, whether
the purchaser is acting for itself or as trustee, or (2) to any
corporation with outstanding securities registered under Section 12
of the Securities Exchange Act of 1934 or any wholly owned subsidiary
of the corporation that after the offer and sale will own directly
or indirectly 100 percent of the outstanding capital stock of the
issuer, provided the purchaser represents that it is purchasing for
its own account (or for the trust account) for investment and not
with a view to or for sale in connection with any distribution of the
security.
(j) Any offer or sale of any certificate of interest or
participation in an oil or gas title or lease (including subsurface
gas storage and payments out of production) if either of the
following apply:
(1) All of the purchasers meet one of the following requirements:
(A) Are and have been during the preceding two years engaged
primarily in the business of drilling for, producing, or refining oil
or gas (or whose corporate predecessor, in the case of a
corporation, has been so engaged).
(B) Are persons described in paragraph (1) of subdivision (i).
(C) Have been found by the commissioner upon written application
to be substantially engaged in the business of drilling for,
producing, or refining oil or gas so as not to require the protection
provided by this law (which finding shall be effective until
rescinded).
(2) The security is concurrently hypothecated to a bank in the
ordinary course of business to secure a loan made by the bank,
provided that each purchaser represents that it is purchasing for its
own account for investment and not with a view to or for sale in
connection with any distribution of the security.
(k) Any offer or sale of any security under, or pursuant to, a
plan of reorganization under Chapter 11 of the federal bankruptcy law
that has been confirmed or is subject to confirmation by the decree
or order of a court of competent jurisdiction.
( l ) Any offer or sale of an option, warrant, put,
call, or straddle, and any guarantee of any of these securities, by a
person who is not the issuer of the security subject to the right,
if the transaction, had it involved an offer or sale of the security
subject to the right by the person, would not have violated Section
25110 or 25130.
(m) Any offer or sale of a stock to a pension, profit-sharing,
stock bonus, or employee stock ownership plan, provided that (1) the
plan meets the requirements for qualification under Section 401 of
the Internal Revenue Code, and (2) the employees are not required or
permitted individually to make any contributions to the plan. The
exemption provided by this subdivision shall not be affected by
whether the stock is contributed to the plan, purchased from the
issuer with contributions by the issuer or an affiliate of the
issuer, or purchased from the issuer with funds borrowed from the
issuer, an affiliate of the issuer, or any other lender.
(n) Any offer or sale of any security in a transaction, other than
an offer or sale of a security in a rollup transaction, that meets
all of the following criteria:
(1) The issuer is (A) a California corporation or foreign
corporation that, at the time of the filing of the notice required
under this subdivision, is subject to Section 2115, or (B) any other
form of business entity, including without limitation a partnership
or trust organized under the laws of this state. The exemption
provided by this subdivision is not available to a "blind pool"
issuer, as that term is defined by the commissioner, or to an
investment company subject to the Investment Company Act of 1940.
(2) Sales of securities are made only to qualified purchasers or
other persons the issuer reasonably believes, after reasonable
inquiry, to be qualified purchasers. A corporation, partnership, or
other organization specifically formed for the purpose of acquiring
the securities offered by the issuer in reliance upon this exemption
may be a qualified purchaser if each of the equity owners of the
corporation, partnership, or other organization is a qualified
purchaser. Qualified purchasers include the following:
(A) A person designated in Section 260.102.13 of Title 10 of the
California Code of Regulations.
(B) A person designated in subdivision (i) or any rule of the
commissioner adopted thereunder.
(C) A pension or profit-sharing trust of the issuer, a
self-employed individual retirement plan, or an individual retirement
account, if the investment decisions made on behalf of the trust,
plan, or account are made solely by persons who are qualified
purchasers.
(D) An organization described in Section 501(c)(3) of the Internal
Revenue Code, corporation, Massachusetts or similar business trust,
or partnership, each with total assets in excess of five million
dollars ($5,000,000) according to its most recent audited financial
statements.
(E) With respect to the offer and sale of one class of voting
common stock of an issuer or of preferred stock of an issuer
entitling the holder thereof to at least the same voting rights as
the issuer's one class of voting common stock, provided that the
issuer has only one-class voting common stock outstanding upon
consummation of the offer and sale, a natural person who, either
individually or jointly with the person's spouse, (i) has a minimum
net worth of two hundred fifty thousand dollars ($250,000) and had,
during the immediately preceding tax year, gross income in excess of
one hundred thousand dollars ($100,000) and reasonably expects gross
income in excess of one hundred thousand dollars ($100,000) during
the current tax year or (ii) has a minimum net worth of five hundred
thousand dollars ($500,000). "Net worth" shall be determined
exclusive of home, home furnishings, and automobiles. Other assets
included in the computation of net worth may be valued at fair market
value.
Each natural person specified above, by reason of his or her
business or financial experience, or the business or financial
experience of his or her professional adviser, who is unaffiliated
with and who is not compensated, directly or indirectly, by the
issuer or any affiliate or selling agent of the issuer, can be
reasonably assumed to have the capacity to protect his or her
interests in connection with the transaction. The amount of the
investment of each natural person shall not exceed 10 percent of the
net worth, as determined by this subparagraph, of that natural
person.
(F) Any other purchaser designated as qualified by rule of the
commissioner.
(3) Each purchaser represents that the purchaser is purchasing for
the purchaser's own account (or trust account, if the purchaser is a
trustee) and not with a view to or for sale in connection with a
distribution of the security.
(4) Each natural person purchaser, including a corporation,
partnership, or other organization specifically formed by natural
persons for the purpose of acquiring the securities offered by the
issuer, receives, at least five business days before securities are
sold to, or a commitment to purchase is accepted from, the purchaser,
a written offering disclosure statement that shall meet the
disclosure requirements of Regulation D (17 C.F.R. 230.501 et seq.),
and any other information as may be prescribed by rule of the
commissioner, provided that the issuer shall not be obligated
pursuant to this paragraph to provide this disclosure statement to a
natural person qualified under Section 260.102.13 of Title 10 of the
California Code of Regulations. The offer or sale of securities
pursuant to a disclosure statement required by this paragraph that is
in violation of Section 25401, or that fails to meet the disclosure
requirements of Regulation D (17 C.F.R. 230.501 et seq.), shall not
render unavailable to the issuer the claim of an exemption from
Section 25110 afforded by this subdivision. This paragraph does not
impose, directly or indirectly, any additional disclosure obligation
with respect to any other exemption from qualification available
under any other provision of this section.
(5) (A) A general announcement of proposed offering may be
published by written document only, provided that the general
announcement of proposed offering sets forth the following required
information:
(i) The name of the issuer of the securities.
(ii) The full title of the security to be issued.
(iii) The anticipated suitability standards for prospective
purchasers.
(iv) A statement that (I) no money or other consideration is being
solicited or will be accepted, (II) an indication of interest made
by a prospective purchaser involves no obligation or commitment of
any kind, and, if the issuer is required by paragraph (4) to deliver
a disclosure statement to prospective purchasers, (III) no sales will
be made or commitment to purchase accepted until five business days
after delivery of a disclosure statement and subscription information
to the prospective purchaser in accordance with the requirements of
this subdivision.
(v) Any other information required by rule of the commissioner.
(vi) The following legend: "For more complete information about
(Name of Issuer) and (Full Title of Security), send for additional
information from (Name and Address) by sending this coupon or calling
(Telephone Number)."
(B) The general announcement of proposed offering referred to in
subparagraph (A) may also set forth the following information:
(i) A brief description of the business of the issuer.
(ii) The geographic location of the issuer and its business.
(iii) The price of the security to be issued, or, if the price is
not known, the method of its determination or the probable price
range as specified by the issuer, and the aggregate offering price.
(C) The general announcement of proposed offering shall contain
only the information that is set forth in this paragraph.
(D) Dissemination of the general announcement of proposed offering
to persons who are not qualified purchasers, without more, shall not
disqualify the issuer from claiming the exemption under this
subdivision.
(6) No telephone solicitation shall be permitted until the issuer
has determined that the prospective purchaser to be solicited is a
qualified purchaser.
(7) The issuer files a notice of transaction under this
subdivision both (A) concurrent with the publication of a general
announcement of proposed offering or at the time of the initial offer
of the securities, whichever occurs first, accompanied by a filing
fee, and (B) within 10 business days following the close or
abandonment of the offering, but in no case more than 210 days from
the date of filing the first notice. The first notice of transaction
under subparagraph (A) shall contain an undertaking, in a form
acceptable to the commissioner, to deliver any disclosure statement
required by paragraph (4) to be delivered to prospective purchasers,
and any supplement thereto, to the commissioner within 10 days of the
commissioner's request for the information. The exemption from
qualification afforded by this subdivision is unavailable if an
issuer fails to file the first notice required under subparagraph (A)
or to pay the filing fee. The commissioner has the authority to
assess an administrative penalty of up to one thousand dollars
($1,000) against an issuer that fails to deliver the disclosure
statement required to be delivered to the commissioner upon the
commissioner's request within the time period set forth above.
Neither the filing of the disclosure statement nor the failure by the
commissioner to comment thereon precludes the commissioner from
taking any action deemed necessary or appropriate under this division
with respect to the offer and sale of the securities.
(o) An offer or sale of any security issued by a corporation or
limited liability company pursuant to a purchase plan or agreement,
or issued pursuant to an option plan or agreement, where the security
at the time of issuance or grant is exempt from registration under
the Securities Act of 1933, as amended, pursuant to Rule 701 adopted
pursuant to that act (17 C.F.R. 230.701), the provisions of which are
hereby incorporated by reference into this section, provided that
(1) the terms of any purchase plan or agreement shall comply with
Sections 260.140.42, 260.140.45, and 260.140.46 of Title 10 of the
California Code of Regulations, (2) the terms of any option plan or
agreement shall comply with Sections 260.140.41, 260.140.45, and
260.140.46 of Title 10 of the California Code of Regulations, and (3)
the issuer files a notice of transaction in accordance with rules
adopted by the commissioner no later than 30 days after the initial
issuance of any security under that plan, accompanied by a filing fee
as prescribed by subdivision (y) of Section 25608. The failure to
file the notice of transaction within the time specified in this
subdivision shall not affect the availability of this exemption. An
issuer that fails to file the notice shall, within 15 business days
after discovery of the failure to file the notice or after demand by
the commissioner, whichever occurs first, file the notice and pay the
commissioner a fee equal to the maximum aggregate fee payable had
the transaction been qualified under Section 25110.
Offers and sales exempt pursuant to this subdivision shall be
deemed to be part of a single, discrete offering and are not subject
to integration with any other offering or sale, whether qualified
under Chapter 2 (commencing with Section 25110), or otherwise exempt,
or not subject to qualification.
(p) An offer or sale of nonredeemable securities to accredited
investors (Section 28031) by a person licensed under the Capital
Access Company Law (Division 3 (commencing with Section 28000) of
Title 4), provided that all purchasers either (1) have a preexisting
personal or business relationship with the offeror or any of its
partners, officers, directors, controlling persons, or managers (as
appointed or elected by the members), or (2) by reason of their
business or financial experience or the business or financial
experience of their professional advisers who are unaffiliated with
and who are not compensated by the issuer or any affiliate or selling
agent of the issuer, directly or indirectly, could be reasonably
assumed to have the capacity to protect their own interests in
connection with the transaction. All nonredeemable securities shall
be evidenced by certificates that shall have stamped or printed
prominently on their face a legend in a form to be prescribed by rule
or order of the commissioner restricting transfer of the securities
in the manner as the rule or order provides. The exemption under this
subdivision shall not be available for any offering that is exempt
or asserted to be exempt pursuant to Section 3(a)(11) of the
Securities Act of 1933 (15 U.S.C. Sec. 77c(a)(11)) or Rule 147 (17
C.F.R. 230.147) thereunder or otherwise is conducted by means of any
form of general solicitation or general advertising.
(q) Any offer or sale of any viatical or life settlement contract
or fractionalized or pooled interest therein in a transaction that
meets all of the following criteria:
(1) Sales of securities described in this subdivision are made
only to qualified purchasers or other persons the issuer reasonably
believes, after reasonable inquiry, to be qualified purchasers. A
corporation, partnership, or other organization specifically formed
for the purpose of acquiring the securities offered by the issuer in
reliance upon this exemption may be a qualified purchaser only if
each of the equity owners of the corporation, partnership, or other
organization is a qualified purchaser. Qualified purchasers include
the following:
(A) A person designated in Section 260.102.13 of Title 10 of the
California Code of Regulations.
(B) A person designated in subdivision (i) or any rule of the
commissioner adopted thereunder.
(C) A pension or profit-sharing trust of the issuer, a
self-employed individual retirement plan, or an individual retirement
account, if the investment decisions made on behalf of the trust,
plan, or account are made solely by persons who are qualified
purchasers.
(D) An organization described in Section 501(c)(3) of the Internal
Revenue Code, corporation, Massachusetts or similar business trust,
or partnership, each with total assets in excess of five million
dollars ($5,000,000) according to its most recent audited financial
statements.
(E) A natural person who, either individually or jointly with the
person's spouse, (i) has a minimum net worth of one hundred fifty
thousand dollars ($150,000) and had, during the immediately preceding
tax year, gross income in excess of one hundred thousand dollars
($100,000) and reasonably expects gross income in excess of one
hundred thousand dollars ($100,000) during the current tax year or
(ii) has a minimum net worth of two hundred fifty thousand dollars
($250,000). "Net worth" shall be determined exclusive of home, home
furnishings, and automobiles. Other assets included in the
computation of net worth may be valued at fair market value.
Each natural person specified above, by reason of his or her
business or financial experience, or the business or financial
experience of his or her professional adviser, who is unaffiliated
with and who is not compensated, directly or indirectly, by the
issuer or any affiliate or selling agent of the issuer, can be
reasonably assumed to have the capacity to protect his or her
interests in connection with the transaction.
The amount of the investment of each natural person shall not
exceed 10 percent of the net worth, as determined by this
subdivision, of that natural person.
(F) Any other purchaser designated as qualified by rule of the
commissioner.
(2) Each purchaser represents that the purchaser is purchasing for
the purchaser's own account (or trust account, if the purchaser is a
trustee) and not with a view to or for sale in connection with a
distribution of the security.
(3) Each natural person purchaser, including a corporation,
partnership, or other organization specifically formed by natural
persons for the purpose of acquiring the securities offered by the
issuer, receives, at least five business days before securities
described in this subdivision are sold to, or a commitment to
purchase is accepted from, the purchaser, the following information
in writing:
(A) The name, principal business and mailing address, and
telephone number of the issuer.
(B) The suitability standards for prospective purchasers as set
forth in paragraph (1) of this subdivision.
(C) A description of the issuer's type of business organization
and the state in which the issuer is organized or incorporated.
(D) A brief description of the business of the issuer.
(E) If the issuer retains ownership or becomes the beneficiary of
the insurance policy, an audit report of an independent certified
public accountant together with a balance sheet and related
statements of income, retained earnings, and cashflows that reflect
the issuer's financial position, the results of the issuer's
operations, and the issuer's cashflows as of a date within 15 months
before the date of the initial issuance of the securities described
in this subdivision. The financial statements listed in this
subparagraph shall be prepared in conformity with generally accepted
accounting principles. If the date of the audit report is more than
120 days before the date of the initial issuance of the securities
described in this subdivision, the issuer shall provide unaudited
interim financial statements.
(F) The names of all directors, officers, partners, members, or
trustees of the issuer.
(G) A description of any order, judgment, or decree that is final
as to the issuing entity of any state, federal, or foreign country
governmental agency or administrator, or of any state, federal, or
foreign country court of competent jurisdiction (i) revoking,
suspending, denying, or censuring for cause any license, permit, or
other authority of the issuer or of any director, officer, partner,
member, trustee, or person owning or controlling, directly or
indirectly, 10 percent or more of the outstanding interest or equity
securities of the issuer, to engage in the securities, commodities,
franchise, insurance, real estate, or lending business or in the
offer or sale of securities, commodities, franchises, insurance, real
estate, or loans, (ii) permanently restraining, enjoining, barring,
suspending, or censuring any such person from engaging in or
continuing any conduct, practice, or employment in connection with
the offer or sale of securities, commodities, franchises, insurance,
real estate, or loans, (iii) convicting any such person of, or
pleading nolo contendere by any such person to, any felony or
misdemeanor involving a security, commodity, franchise, insurance,
real estate, or loan, or any aspect of the securities, commodities,
franchise, insurance, real estate, or lending business, or involving
dishonesty, fraud, deceit, embezzlement, fraudulent conversion,
or misappropriation
of property, or (iv) holding any such person liable in a civil
action involving breach of a fiduciary duty, fraud, deceit,
embezzlement, fraudulent conversion, or misappropriation of property.
This subparagraph does not apply to any order, judgment, or decree
that has been vacated, overturned, or is more than 10 years old.
(H) Notice of the purchaser's right to rescind or cancel the
investment and receive a refund pursuant to Section 25508.5.
(I) The name, address, and telephone number of the issuing
insurance company, and the name, address, and telephone number of the
state or foreign country regulator of the insurance company.
(J) The total face value of the insurance policy and the
percentage of the insurance policy the purchaser will own.
(K) The insurance policy number, issue date, and type.
(L) If a group insurance policy, the name, address, and telephone
number of the group, and, if applicable, the material terms and
conditions of converting the policy to an individual policy,
including the amount of increased premiums.
(M) If a term insurance policy, the term and the name, address,
and telephone number of the person who will be responsible for
renewing the policy if necessary.
(N) That the insurance policy is beyond the state statute for
contestability and the reason therefor.
(O) The insurance policy premiums and terms of premium payments.
(P) The amount of the purchaser's moneys that will be set aside to
pay premiums.
(Q) The name, address, and telephone number of the person who will
be the insurance policy owner and the person who will be responsible
for paying premiums.
®) The date on which the purchaser will be required to pay
premiums and the amount of the premium, if known.
(S) A statement to the effect that any projected rate of return to
the purchaser from the purchase of a viatical or life settlement
contract or a fractionalized or pooled interest therein is based on
an estimated life expectancy for the person insured under the life
insurance policy; that the return on the purchase may vary
substantially from the expected rate of return based upon the actual
life expectancy of the insured that may be less than, equal to, or
may greatly exceed the estimated life expectancy; and that the rate
of return would be higher if the actual life expectancy were less
than, and lower if the actual life expectancy were greater than the
estimated life expectancy of the insured at the time the viatical or
life settlement contract was closed.
(T) A statement that the purchaser should consult with his or her
tax adviser regarding the tax consequences of the purchase of the
viatical or life settlement contract or fractionalized or pooled
interest therein and, if the purchaser is using retirement funds or
accounts for that purchase, whether or not any adverse tax
consequences might result from the use of those funds for the
purchase of that investment.
(U) Any other information as may be prescribed by rule of the
commissioner.
SEC. 26. Section 25206 of the Corporations Code is amended to
read:
25206. A broker licensed by the Real Estate Commissioner is
exempt from the provisions of Section 25210 when engaged in
transactions in any interest in any general or limited partnership,
joint venture, unincorporated association, or similar organization
(but not a corporation) owned beneficially by no more than 100
persons and formed for the sole purpose of, and engaged solely in,
investment in or gain from an interest in real property, including,
but not limited to, a sale, exchange, trade, or development. An
interest held by spouses shall be considered held by one person for
the purposes of this section.
SEC. 27. Section 73.2 is added to the Education Code, to read:
73.2. "Spouse" includes "registered domestic partner," as
required by Section 297.5 of the Family Code.
SEC. 28. Section 21100 of the Education Code is amended to read:
21100. Any person desiring in his or her lifetime to promote the
public welfare by founding, endowing, and maintaining within this
state a university, college, school, seminary of learning, mechanical
institute, museum, botanic garden, public park, or gallery of art,
or any or all thereof, may, for such purposes, by grant in writing
convey to a trustee, or any number of trustees, named in the grant,
and to their successors, any property, real or personal, belonging to
him or her and situated within this state. If he or she is married
or in a registered domestic partnership and the property is community
property, then both spouses shall join in the grant.
SEC. 29. Section 24803 of the Education Code is amended to read:
24803. (a) If any benefit is payable by a district retirement
system to the estate of a deceased person, whether because the estate
is the beneficiary of the person or because no beneficiary was
designated or because an allowance payable to the person had accrued
and remained unpaid at the date of the death, and the estate would
not be administered if no amount were due from the system, then the
benefit shall be paid directly without procuring letters of
administration to the surviving next of kin of the deceased, or the
guardians of the survivors' estates, share and share alike. The
payment shall be made in the same order in which the following groups
are listed:
(1) Spouse.
(2) Children and issue of deceased children by right of
representation.
(3) Father and mother.
(4) Brothers and sisters.
(5) Nieces and nephews.
(b) Payment may also be made to persons in the groups listed in
subdivision (a) to the extent those persons are the only
beneficiaries under the last will and testament of a deceased former
member of a district retirement system, without the probate of the
will.
SEC. 30. Section 68062 of the Education Code is amended to read:
68062. In determining the place of residence the following rules
are to be observed:
(a) There can only be one residence.
(b) A residence is the place where one remains when not called
elsewhere for labor or other special or temporary purpose, and to
which he or she returns in seasons of repose.
(c) A residence cannot be lost until another is gained.
(d) The residence can be changed only by the union of act and
intent.
(e) A man or woman may establish his or her residence. A person's
residence shall not be derivative from that of his or her spouse.
(f) The residence of the parent with whom an unmarried minor child
maintains his or her place of abode is the residence of the
unmarried minor child. When the minor lives with neither parent his
or her residence is that of the parent with whom he or she maintained
his or her last place of abode, provided the minor may establish his
or her residence when both parents are deceased and a legal guardian
has not been appointed.
(g) The residence of an unmarried minor who has a parent living
cannot be changed by his or her own act, by the appointment of a
legal guardian, or by relinquishment of a parent's right of control.
(h) An alien, including an unmarried minor alien, may establish
his or her residence, unless precluded by the Immigration and
Nationality Act (8 U.S.C. Sec. 1101 et seq.) from establishing
domicile in the United States.
(i) The residence of an unmarried minor alien shall be derived
from his or her parents pursuant to the provisions of subdivisions
(f) and (g).
SEC. 31. Section 356.5 is added to the Elections Code, to read:
356.5. "Spouse" includes "registered domestic partner," as
required by Section 297.5 of the Family Code.
SEC. 32. Section 215 is added to the Evidence Code, to read:
215. "Spouse" includes "registered domestic partner," as required
by Section 297.5 of the Family Code.
SEC. 33. Section 917 of the Evidence Code is amended to read:
917. (a) If a privilege is claimed on the ground that the matter
sought to be disclosed is a communication made in confidence in the
course of the lawyer-client, lawyer referral service-client,
physician-patient, psychotherapist-patient, clergy-penitent, marital
or domestic partnership, sexual assault counselor-victim, domestic
violence counselor-victim, or human trafficking caseworker-victim
relationship, the communication is presumed to have been made in
confidence and the opponent of the claim of privilege has the burden
of proof to establish that the communication was not confidential.
(b) A communication between persons in a relationship listed in
subdivision (a) does not lose its privileged character for the sole
reason that it is communicated by electronic means or because persons
involved in the delivery, facilitation, or storage of electronic
communication may have access to the content of the communication.
(c) For purposes of this section, "electronic" has the same
meaning provided in Section 1633.2 of the Civil Code.
SEC. 34. Section 980 of the Evidence Code is amended to read:
980. Subject to Section 912 and except as otherwise provided in
this article, a spouse (or his or her guardian or conservator when he
or she has a guardian or conservator), whether or not a party, has a
privilege during the marital or domestic partnership relationship
and afterwards to refuse to disclose, and to prevent another from
disclosing, a communication if he or she claims the privilege and the
communication was made in confidence between him or her and the
other spouse while they were spouses.
SEC. 35. Section 143 is added to the Family Code, to read:
143. "Spouse" includes "registered domestic partner," as required
by Section 297.5.
SEC. 36. Section 11.2 is added to the Financial Code, to read:
11.2. "Spouse" includes "registered domestic partner," as
required by Section 297.5 of the Family Code.
SEC. 37. Section 14860 of the Financial Code is amended to read:
14860. Except as provided in this section and Part 2 (commencing
with Section 5100) of Division 5 of the Probate Code, no credit union
shall exercise trust powers except upon qualifying as a trust
company pursuant to Division 1 (commencing with Section 99).
(a) Notwithstanding any other law relating to trusts and trust
authority, subject to the regulations of the commissioner, a credit
union may act as a trustee or custodian, and may receive reasonable
compensation for so acting, under any written trust instrument or
custodial agreement created or organized in the United States which
is a part of a pension, education, or medical plan for its members or
groups or organizations of its members, which qualifies or has
qualified for specific tax treatment under Section 220, 223, 401,
408, 408A, 457, or 530 of the Internal Revenue Code, Title 26 of the
United States Code, or any deferred compensation plan for the benefit
of the credit union's employees, provided the funds received
pursuant to these plans are invested as provided in Section 16040 of
the Probate Code. All funds held by a credit union as trustee or in a
custodial capacity shall be maintained in accordance with applicable
laws and rules and regulations as may be promulgated by the
Secretary of Labor, the Secretary of the Treasury, or any other
authority exercising jurisdiction over the trust or custodial
accounts. The credit union shall maintain individual records for each
participant or beneficiary that show in detail all transactions
relating to the funds of each participant or beneficiary.
The trust instrument or agreement shall provide for the
appointment of a successor trustee or custodian by a person,
committee, corporation, or organization other than the credit union
or any person acting in his or her capacity as a director, employee,
or agent of the credit union, upon notice from the credit union or
the commissioner that the credit union is unwilling or unable to
continue to act as trustee or custodian.
(b) Shares may be issued in a revocable or irrevocable trust
subject to the following:
(1) When shares are issued in a revocable trust, the settlor shall
be a member of the credit union issuing the shares in his or her own
right. If the trust has joint settlors, who are spouses, then only
one settlor need be a member of the credit union.
(2) When shares are issued in an irrevocable trust, the settlor or
the beneficiary shall be a member of this credit union in his or her
own right. For purposes of this section, shares issued pursuant to a
pension plan authorized by this section shall be treated as an
irrevocable trust unless otherwise indicated in rules and regulations
issued by the commissioner.
(3) This subdivision does not apply to trust accounts established
prior to the effective date of this subdivision.
SEC. 38. Section 18220 of the Financial Code is amended to read:
18220. An industrial loan company shall not induce any spouses,
jointly or severally, to become obligated, directly or contingently
or both, under more than one contract of loan at the same time, with
the result of obtaining a higher rate of charge than would otherwise
be permitted by this division.
SEC. 39. Section 18523 of the Financial Code is amended to read:
18523. The following described thrift obligations will be
guaranteed by Guaranty Corporation in the amounts hereinafter set
forth below:
(a) Single ownership investment certificates. Funds owned by an
individual and invested in the manner set forth below shall be added
together and guaranteed up to fifty thousand dollars ($50,000) in the
aggregate.
(1) Individual investment certificates (or investment certificates
of the marital or domestic partnership community of which the
individual is a member) and invested in one or more investment
certificates in his or her own name shall be guaranteed up to fifty
thousand dollars ($50,000) in the aggregate.
(2) Funds owned by a principal and invested in one or more
investment certificates in the name or names of agents or nominees
shall be added to any individual investment certificates of the
principal and guaranteed up to fifty thousand dollars ($50,000) in
the aggregate.
(3) Investment certificates held by guardians, custodians, or
conservators for the benefit of their wards or for the benefit of a
minor under a Uniform Gifts to Minors Act and invested in one or more
investment certificates in the name of the guardian, custodian, or
conservator shall be added to any individual investment certificates
of the ward or minor and guaranteed up to fifty thousand dollars
($50,000) in the aggregate.
(b) Testamentary investment certificates.
(1) Funds owned by an individual and invested in a revocable trust
investment certificate, tentative trust investment certificate,
payable-on-death investment certificate, or similar investment
certificate evidencing an intention that on his or her death the
funds shall belong to his or her spouse, child, or grandchild, shall
be guaranteed up to fifty thousand dollars ($50,000) in the
aggregate, as to each such named beneficiary, separately from any
other investment certificates of the owner.
(2) If the named beneficiary of such an investment certificate is
other than the owner's spouse, child, or grandchild, the funds in the
investment certificate shall be added to any individual investment
certificates of such owner and guaranteed up to fifty thousand
dollars ($50,000) in the aggregate, separately from the individual
investment certificates of the beneficiaries of the estate or of the
executor or administrator.
(c) Investment certificates held by executors or administrators.
Funds of a decedent held in the name of the decedent or in the name
of the executor or administrator of his or her estate and invested in
one or more investment certificates shall be guaranteed up to fifty
thousand dollars ($50,000) in the aggregate, separately from the
individual investment certificates of the beneficiaries of the estate
or of the executor or administrator.
(d) Corporation or partnership investment certificates. Investment
certificates of a corporation or partnership engaged in any
independent activity shall be guaranteed up to fifty thousand dollars
($50,000) in the aggregate. An investment certificate of a
corporation or partnership not engaged in an independent activity
shall be deemed to be owned by the person or persons owning such
corporation or comprising such partnership and, for guarantee
purposes, the interest of each person in the investment certificate
shall be added to any other investment certificates individually
owned by such person and guaranteed up to fifty thousand dollars
($50,000) in the aggregate. The term "independent activity" means any
activity other than one directed solely at increasing guarantee
coverage under this chapter.
(e) Unincorporated associations. Investment certificates of an
unincorporated association engaged in any independent activity shall
be guaranteed up to fifty thousand dollars ($50,000) in the
aggregate. An investment certificate of an unincorporated association
not engaged in an independent activity shall be deemed to be owned
by the persons comprising such association and, for guarantee
purposes, the interest of each owner in the investment certificate
shall be added to any other investment certificates individually
owned by such person and guaranteed up to fifty thousand dollars
($50,000) in the aggregate.
(f) Joint investment certificates.
(1) Investment certificates owned jointly, whether as joint
tenants with right of survivorship, as tenants by the entireties, as
tenants in common, or by spouses as community property, shall be
guaranteed separately from investment certificates individually owned
by the coowners.
(2) A joint investment certificate shall be deemed to exist, for
purposes of guarantee of investment certificates, only if each
coowner has personally executed an investment certificate signature
card and possesses redemption rights.
(3) An investment certificate owned jointly which does not qualify
as a joint investment certificate for purposes of guarantee of
investment certificates shall be treated as owned by the named
persons as individuals and the actual ownership interest of each such
person in such investment certificate shall be added to any other
investment certificates individually owned by such person and
guaranteed up to fifty thousand dollars ($50,000) in the aggregate.
(4) All joint investment certificates owned by the same
combination of individuals shall first be added together and
guaranteed up to fifty thousand dollars ($50,000) in the aggregate.
(5) The interest of each coowner in all joint investment
certificates owned by different combinations of individuals shall
then be added together and guaranteed up to fifty thousand dollars
($50,000) in the aggregate.
(g) Trust investment certificates. All trust interests for the
same beneficiary invested in investment certificates established
pursuant to valid trust arrangements created by the same settlor
(grantor) shall be added together and guaranteed up to fifty thousand
dollars ($50,000) in the aggregate, separately from other investment
certificates of the trustee of such trust funds or the settlor or
beneficiary of such trust arrangements.
(h) Thrift obligations withdrawn by checks that have not cleared a
member's bank account at the time the commissioner has taken
possession of the property and business of a member. The owner of the
funds represented by such a check shall be recognized for all
purposes of a claim for guaranteed thrift obligations to the same
extent as if his or her name and interest were disclosed on the
records of the member.
SEC. 40. Section 22327 of the Financial Code is amended to read:
22327. No licensee shall knowingly induce any borrower to split
up or divide any loan with any other licensee. No licensee shall
induce or permit any borrower to be or to become obligated directly
or indirectly, or both, under more than one contract of loan at the
same time with the same licensee for the purpose or with the result
of obtaining a higher rate of charge than would otherwise be
permitted by this article, except as otherwise required by the
federal Equal Credit Opportunity Act (15 U.S.C. Sec. 1691 et seq.;
Public Law 93-495) and Regulation B promulgated by the Board of
Governors of the Federal Reserve System (12 C.F.R. 202 et seq.). For
the purpose of this section, "borrower" includes any spouses, whether
jointly or severally obligated.
SEC. 41. Section 9.2 is added to the Fish and Game Code, to read:
9.2. "Spouse" includes "registered domestic partner," as required
by Section 297.5 of the Family Code.
SEC. 42. Section 8552.3 of the Fish and Game Code is amended to
read:
8552.3. The commission may, in consultation with representatives
of the commercial herring roe fishery, and after holding at least one
public hearing, adopt regulations intended to facilitate the
transfer of herring permits, including, but not limited to,
regulations that would do the following:
(a) Allow an individual to own a single permit for each of the
different herring gillnet platoons in San Francisco Bay.
(b) Eliminate the point system for qualifying for a herring
permit.
(c) Allow a herring permit to be passed from a parent to child, or
between spouses.
SEC. 43. Section 36 is added to the Food and Agricultural Code, to
read:
36. "Spouse" includes "registered domestic partner," as required
by Section 297.5 of the Family Code.
SEC. 44. Section 12.2 is added to the Government Code, to read:
12.2. "Spouse" includes "registered domestic partner," as
required by Section 297.5 of the Family Code.
SEC. 45. Section 9359.9 of the Government Code is amended to read:
9359.9. (a) If a beneficiary is not designated, or if the estate
is the beneficiary and the estate would not be probated if no amount
were due from this system, all of the amount due by reason of the
death of a member or retired member, including retirement allowances
accrued but not received prior to death, shall be paid directly
without probate to the surviving next of kin of the deceased, or the
guardians of such survivors' estates, share and share alike.
(b) Such payment shall be made in the same order in which the
following groups are listed:
(1) Spouse.
(2) Children.
(3) Father and mother.
(4) Grandchildren.
(5) Brothers and sisters.
(6) Nieces and nephews.
SEC. 46. Section 9374 of the Government Code is amended to read:
9374. Upon the death of a member before retirement (a) the
surviving spouse of the member, who has the care of children,
including stepchildren, of the member who are not married or in
registered domestic partnerships and are under 18 years of age, or
are incapacitated because of disability which began before and has
continued without interruption after attainment of that age, or if
there is no such spouse, then (b) the guardian of surviving children,
including stepchildren, of the member who are not married or in
registered domestic partnerships and are under 18 years of age or so
incapacitated, if any, or (c) the surviving spouse of the member, who
does not qualify under (a), if any, or if no such children under (b)
or such spouse under (c), then (d) each surviving parent of the
member, shall be paid the following applicable survivor allowance,
under the conditions stated and from contributions of the state:
(1) A widow or a widower who was married to, or was in a
registered domestic partnership with, the member prior to the
occurrence of the injury or onset of the illness that resulted in
death, and has the care of children, including stepchildren, of the
deceased member who are not married or in registered domestic
partnerships and are under 18 years of age or so incapacitated, shall
be paid three hundred sixty dollars ($360) if there is one such
child, or four hundred thirty dollars ($430) per month if there are
two or more such children. If there also are such children who are
not in the care of the surviving spouse, the portion of the allowance
payable under this paragraph, assuming that these children were in
the care of the surviving spouse, which is in excess of one hundred
eighty dollars ($180) per month, shall be divided equally among all
of those children and payments made to the spouse and other children,
as the case may be.
(2) If there is no such surviving spouse, or if such surviving
spouse dies, remarries, or enters into a subsequent registered
domestic partnership, and if there are children, including
stepchildren, of the deceased member who are not married or in
registered domestic partnerships and are under 18 years of age, or if
there are such children not in the care of such spouse, such
children shall be paid an allowance as follows:
(A) If there is only one such child, such child shall be paid one
hundred eighty dollars ($180) per month.
(B) If there are two such children, such children shall be paid
three hundred sixty dollars ($360) per month divided equally between
them.
(C) If there are three or more such children, such children shall
be paid four hundred thirty dollars ($430) per month divided equally
among them.
(3) A surviving spouse who has attained or attains the age of 62
years, and, regardless of the gender of the surviving spouse, who was
married to, or in a registered domestic partnership with, such
member prior to the occurrence of the injury or onset of the illness
that resulted in death, and has not remarried or entered into a
registered domestic partnership subsequent to the member's death,
shall be paid one hundred eighty dollars ($180) per month. No
allowance shall be paid under this paragraph, while the surviving
spouse is receiving an allowance under paragraph (1), or while an
allowance is being paid under subparagraph (C) of paragraph (2). The
allowance paid under this paragraph shall be seventy dollars ($70)
per month while an allowance is being paid under subparagraph (B) of
paragraph (2).
(4) If there is no surviving spouse, or surviving children who
qualify for a survivor allowance, or if such surviving spouse dies,
remarries, or enters into a subsequent registered domestic
partnership, or if such children reach 18 years of age or die, marry,
or enter into a registered domestic partnership prior thereto, each
of the member's dependent mother and father who has attained or
attains 62 years of age, and who received at least one-half of his or
her support from the member at the time of the member's death, shall
be paid one hundred eighty dollars ($180) per month.
"Stepchildren," for purposes of this section, shall include only
stepchildren of the member living with him or her in a regular
parent-child relationship at the time of his or her death.
SEC. 47. Section 21571 of the Government Code is amended to read:
21571. (a) If the death benefit provided by Section 21532 is
payable on account of a member's death that occurs under
circumstances other than those described in subparagraph (F) of
paragraph (1) of subdivision (a) of Section 21530, or if an allowance
under Section 21546 is payable, the payment pursuant to subdivision
(b) shall be made, in the following order of priority:
(1) The surviving spouse of the member, who has the care of
children, including stepchildren, of the member who are not married
or in registered domestic partnerships and are under 22 years of age,
or are incapacitated because of disability that began before and has
continued without interruption after attainment of that age.
(2) The guardian or conservator of surviving children, including
stepchildren, of the member who are not married or in registered
domestic partnerships and are under 22 years of age or are so
incapacitated.
(3) The surviving spouse of the member, who does not qualify under
paragraph (1).
(4) Each surviving parent of the member.
(b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the state, shall be paid:
(1) A surviving spouse who was either continuously married to, or
in a registered domestic partnership with, the member for at least
one year prior to death, or was married to, or in a registered
domestic partnership with, the member prior to the occurrence of the
injury or onset of the illness that resulted in death, and has the
care of children, including stepchildren, of the deceased member who
are not married or in registered domestic partnerships and are under
22 years of age or are so incapacitated, shall be paid three hundred
sixty dollars ($360) if there is one child or four hundred thirty
dollars ($430) per month if there are two or more children. If there
also are children who are not in the care of the surviving spouse,
the portion of the allowance payable under this paragraph, assuming
that these children were in the care of the surviving spouse, which
is in excess of one hundred eighty dollars ($180) per month, shall be
divided equally among all those children and payments made to the
spouse and other children, as the case may be.
(2) If there is no surviving spouse, or if the surviving spouse
dies, and if there are children, including stepchildren, of the
deceased member who are not married or in registered domestic
partnerships and are under 22 years of age or are so incapacitated,
or if there are children not in the care of the spouse, the children
shall be paid an allowance as follows:
(A) If there is only one child, the child shall be paid one
hundred eighty dollars ($180) per month.
(B) If there are two children, the children shall be paid three
hundred sixty dollars ($360) per month divided equally between them.
(C) If there are three or more children, the children shall be
paid four hundred thirty dollars ($430) per month divided equally
among them.
(3) A surviving spouse who has attained or attains 62 years of age
and, with respect to that surviving spouse, who was either
continuously married to, or in a registered domestic partnership
with, the member for at least one year prior to death, or who was
married to, or in a registered domestic partnership with, the member
prior to the occurrence of the injury or onset of the illness which
resulted in death, shall be paid one hundred eighty dollars ($180)
per month. No allowance shall be paid under this paragraph, while the
surviving spouse is receiving an allowance under paragraph (1), or
while an allowance is being paid under subparagraph (C) of paragraph
(2). The allowance paid under this paragraph shall be seventy dollars
($70) per month while an allowance is being paid under subparagraph
(B) of paragraph (2).
(4) If there is no surviving spouse or surviving child who
qualifies for a 1959 survivor allowance, or if the surviving spouse
dies and there is no surviving child, or if the surviving spouse dies
and the children die or marry or, if not incapacitated, reach 22
years of age, each of the member's dependent parents who has attained
or attains 62 years of age, and who received at least one-half of
his or her support from the member at the time of the member's death,
shall be paid one hundred eighty dollars ($180) per month.
(c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with him or her in a regular
parent-child relationship at the time of his or her death.
(d) The amendments to this section by Chapter 1617 of the Statutes
of 1971 shall apply only to 1959 survivor allowances payable April
1, 1972, and thereafter.
(e) This section does not apply to any member in the employ of an
employer not subject to this section on January 1, 1994.
(f) On and after the date determined by the board, all assets and
liabilities of all contracting agencies subject to this section, and
their employees, on account of benefits provided under this article
shall be pooled into a single account, and a single employer rate
shall be established to provide benefits under this section on
account of members employed by a contracting agency that is subject
to this section.
(g) The rate of contribution of an employer subject to this
section shall be figured using the term insurance valuation method.
If a contracting agency that is subject to this section is projected
to have a surplus in its 1959 survivor benefit account as of the date
the assets and liabilities are first pooled, the surplus shall be
applied to reduce its rate of contribution. If a contracting agency
that is subject to this section is projected to have a deficit in its
1959 survivor benefit account as of the date the assets and
liabilities are first pooled, its rate of contribution shall be
increased until the projected deficit is paid.
SEC. 48. Section 21572 of the Government Code is amended to read:
21572. (a) In lieu of benefits provided in Section 21571, if the
death benefit provided by Section 21532 is payable on account of a
state member's death that occurs under circumstances other than those
described in subparagraph (F) of paragraph (1) of subdivision (a) of
Section 21530, or if an allowance under Section 21546 is payable,
the payment pursuant to subdivision (b) shall be made in the
following order of priority:
(1) The surviving spouse of the member who has the care of
children, including stepchildren, of the member who are not married
or in registered domestic partnerships and are under 22 years of age
or are incapacitated because of a disability that began before and
has continued without interruption after attainment of that age.
(2) The guardian of surviving children, including stepchildren, of
the member who are not married or in registered domestic
partnerships and are under 22 years of age or are so incapacitated.
(3) The surviving spouse of the member who does not qualify under
paragraph (1).
(4) Each surviving parent of the member.
(b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the state, shall be paid:
(1) A surviving spouse who was either continuously married to, or
in a registered domestic partnership with, the member for at least
one year prior to death, or was married to, or in a registered
domestic partnership with, the member prior to the occurrence of the
injury or onset of the illness that resulted in death, and has the
care of children, including stepchildren, of the deceased member who
are not married or in registered domestic partnerships and are under
22 years of age or are so incapacitated, shall be paid four hundred
fifty dollars ($450) per month if there is one child or five hundred
thirty-eight dollars ($538) per month if there are two or more
children. If there also are children who are not in the care of the
surviving spouse, the portion of the allowance payable under this
paragraph, assuming that these children were in the care of the
surviving spouse, that is in excess of two hundred twenty-five
dollars ($225) per month, shall be divided equally among all those
children and payments made to the spouse and other children, as the
case may be.
(2) If there is no surviving spouse, or if the surviving spouse
dies, and if there are children, including stepchildren, of the
deceased member who are not married or in registered domestic
partnerships and are under 22 years of age or are so incapacitated,
or if there are children not in the care of the spouse, the children
shall be paid an allowance as follows:
(A) If there is only one child, the child shall be paid two
hundred twenty-five dollars ($225) per month.
(B) If there are two children, the children shall be paid four
hundred fifty dollars ($450) per month divided equally between them.
(C) If there are three or more children, the children shall be
paid five hundred thirty-eight dollars ($538) per month divided
equally among them.
(3) A surviving spouse who has attained or attains 62 years of age
and, with respect to that surviving spouse, who was either
continuously married to, or in a registered domestic partnership
with, the member for at least one year prior to death, or was married
to, or in a registered domestic partnership with, the member prior
to the occurrence of the injury or onset of the illness that resulted
in death, shall be paid two hundred twenty-five dollars ($225) per
month. No allowance shall be paid under this paragraph while the
surviving spouse is receiving an allowance under paragraph (1) or
while an allowance is being paid under subparagraph (C) of paragraph
(2). The allowance paid under this paragraph shall be eighty-eight
dollars ($88) per month while an allowance is being paid under
subparagraph (B) of paragraph (2).
(4) If there is no surviving spouse or surviving child who
qualifies for a 1959 survivor allowance, or if the surviving spouse
dies and there is no surviving child, or if the surviving spouse dies
and the children die or marry or, if not incapacitated, reach 22
years of age, each of the member's dependent parents who has attained
or attains 62 years of age, and who received at least one-half of
his or her support from the member at the time of the member's death,
shall be paid two hundred twenty-five dollars ($225) per month.
(c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with him or her in a regular
parent-child relationship at the time of his or her death.
(d) This section shall apply to beneficiaries receiving 1959
survivor allowances on July 1, 1975, as well as to beneficiaries with
respect to the death of a state member occurring on or after July 1,
1975.
(e) This section shall apply, with respect to benefits payable on
and after July 1, 1981, to all members employed by a school employer,
and school safety members employed with a school district or
community college district as defined in subdivision (i) of Section
20057, except that it shall not apply, without contract amendment,
with respect to safety members who became members after July 1, 1981.
All assets and liabilities of all school employers, and their
employees, on account of benefits provided under this article shall
be pooled into a single account, and a single employer rate shall be
established to provide benefits under this section on account of all
miscellaneous members employed by a school employer and all safety
members who are members on July 1, 1981.
(f) This section does not apply to any member in the employ of an
employer not subject to this section on January 1, 1994.
(g) On and after January 1, 2000, all state members covered by
this section shall be covered by the benefit provided under Section
21574.7.
(h) On and after the date determined by the board, all assets and
liabilities of all contracting agencies subject to this section, and
their employees, on account of benefits provided under this article
shall be pooled into a single account, and a single employer rate
shall be established to provide benefits under this section on
account of members employed by a contracting agency that is subject
to this section.
(i) The rate of contribution of an employer subject to this
section shall be figured using the term insurance valuation method.
If a contracting agency that is subject to this section is projected
to have a surplus in its 1959 survivor benefit account as of the date
the assets and liabilities are first pooled, the surplus shall be
applied to reduce its rate of contribution. If a contracting agency
that is subject to this section is projected to have a deficit in its
1959 survivor benefit account as of the date the assets and
liabilities are first pooled, its rate of contribution shall be
increased until the projected deficit is paid.
SEC. 49. Section 21573 of the Government Code is amended to read:
21573. (a) In lieu of benefits provided in Section 21571 or
Section 21572, if the death benefit provided by Section 21532 is
payable on account of a state member's death that occurs under
circumstances other than those described in subparagraph (F) of
paragraph (1) of subdivision (a) of Section 21530, or if an allowance
under Section 21546 is payable, the payment pursuant to subdivision
(b) shall be made in the following order of priority:
(1) The surviving spouse of the member who has the care of
children, including stepchildren, of the member who are not married
or in registered domestic partnerships and are under 22 years of age
or are incapacitated because of a disability that began before and
has continued without interruption after attainment of that age.
(2) The guardian of surviving children, including stepchildren, of
the member who are not married or in registered domestic
partnerships and are under 22 years of age or are so incapacitated.
(3) The surviving spouse of the member who does not qualify under
paragraph (1).
(4) Each surviving parent of the member.
(b) Regardless of the benefit provided by Section 21532 and of the
beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the state, shall be paid:
(1) A surviving spouse who was either continuously married to, or
in a registered domestic partnership with, the member for at least
one year prior to death, or who was married to, or in a registered
domestic partnership with, the member prior to the occurrence of the
injury or onset of the illness that resulted in death, and has the
care of children, including stepchildren, of the deceased member who
are not married or in registered domestic partnerships and are under
22 years of age or are so incapacitated, shall be paid seven hundred
dollars ($700) per month if there is one child, or eight hundred
forty dollars ($840) per month if there are two or more children. If
there also are children who are not in the care of the surviving
spouse, the portion of the allowance payable under this paragraph,
assuming that these children were in the care of the surviving
spouse, that is in excess of three hundred fifty dollars ($350) per
month, shall be divided equally among all those children and payments
made to the spouse and other children, as the case may be.
(2) If there is no surviving spouse, or if the surviving spouse
dies, and if there are children, including stepchildren, of the
deceased member who are not married or in registered domestic
partnerships and are under 22 years of age or are so incapacitated,
or if there are children not in the care of the spouse, the children
shall be paid an allowance as follows:
(A) If there is only one child, the child shall be paid three
hundred fifty dollars ($350) per month.
(B) If there are two children, the children shall be paid seven
hundred dollars ($700) per month divided equally between them.
(C) If there are three or more children, the children shall be
paid eight hundred forty dollars ($840) per month divided equally
among them.
(3) A surviving spouse who has attained or attains 62 years of
age, and, with respect to that surviving spouse, who was either
continuously married to, or in a registered domestic partnership
with, the member for at least one year prior to death, or who was
married to, or in a registered domestic partnership with, the member
prior to the occurrence of the injury or onset of the illness that
resulted in death, shall be paid three hundred fifty dollars ($350)
per month. No allowance shall be paid under this paragraph while the
surviving spouse is receiving an allowance under paragraph (1) or
while an allowance is being paid under subparagraph (C) of paragraph
(2). The allowance paid under this paragraph shall be one hundred
forty dollars ($140) per month while an allowance is being paid under
subparagraph (B) of paragraph (2).
(4) If there is no surviving spouse or surviving child who
qualifies for the 1959 survivor allowance, or if the surviving spouse
dies and there is no surviving child, or if the surviving spouse
dies and the children die, marry, or enter into a registered domestic
partnership or, if not incapacitated, reach 22 years of age, each of
the member's dependent parents who has attained or attains 62 years
of age, and who received at least one-half of his or her support from
the member at the time of the member's death, shall be paid three
hundred fifty dollars ($350) per month.
(c) "Stepchildren," for purposes of this section, shall include
only stepchildren of the member living with the member in a regular
parent-child relationship at the time of the death of the member.
(d) This section shall apply to beneficiaries of state members
whose death occurred before January 1, 1985. Where a surviving spouse
attained 62 years of age prior to January 1, 1987, entitlement shall
exist retroactive to January 1, 1985, or to his or her 62nd
birthday, whichever is later. All assets and liabilities of all state
agencies and their employees on account of benefits provided to
beneficiaries specified in this subdivision shall be pooled into a
single account. The board shall transfer from the reserve for 1959
survivor contributions retained in the retirement fund an amount
sufficient to pay the cost of the increased benefits provided by this
subdivision for beneficiaries of members who died on or before
December 31, 1984.
(e) This section shall not apply to beneficiaries with respect to
the death of a state member, except as provided in subdivision (i),
occurring on or after January 1, 1985, unless provided for in a
memorandum of understanding reached pursuant to Section 3517.5, or
authorized by the Director of Personnel Administration for
classifications of state employees that are excluded from, or not
subject to, collective bargaining. The memorandum of understanding
adopting this section shall be controlling without further
legislative action, except that if those provisions of a memorandum
of understanding require the expenditure of funds, those provisions
shall not become effective unless approved by the Legislature as
provided by law.
(f) This section shall apply, with respect to benefits payable on
and after January 1, 1985, to school members and to school safety
members, as defined in Section 20444. All assets and liabilities of
all school employers, and their employees, on account of benefits
provided under this article shall be pooled into a single account,
and a single employer rate shall be established to provide benefits
under this section on account of school members employed by a school
employer.
(g) This section shall apply to members of a contracting agency
that, in its original contract or by amending its contract, first
elects effective on or after January 1, 1985, and prior to July 1,
2001, to make this article applicable to local members employed by
the agency. On or after January 1, 1985, and prior to July 1, 2001,
contracting agencies already subject to Section 21571 or Section
21572 may elect by contract amendment to be subject to this section.
All assets and liabilities of all contracting agencies subject to
this section, and their employees, on account of benefits provided
under this article shall be pooled into a single account, and a
single employer rate shall be established to provide benefits under
this section on account of members employed by a contracting agency
that is subject to this section. Any public agency first contracting
with the board on or after January 1, 1994, and prior to July 1,
2001, or any contracting agency amending its contract to remove
exclusions of member classifications on or after January 1, 1994, and
prior to July 1, 2001, that has not, pursuant to Section 418 of
Title 42 of the United States Code, entered into an agreement with
the federal government for the coverage of its employees under the
federal system, shall be subject to this section.
(h) The rate of contribution of an employer subject to this
section shall be figured using the term insurance valuation method.
If a contracting agency that is subject to this section has a surplus
in its 1959 survivor benefit account as of the date the contracting
agency becomes subject to this section, the surplus shall be applied
to reduce its rate of contribution. If a contracting agency that is
subject to this section has a deficit in its 1959 survivor benefit
account as of the date the contracting agency becomes subject to this
section, its rate of contribution shall be increased until the
deficit is paid.
(i) This section shall not apply to beneficiaries with respect to
the death of a state member employed by the California State
University occurring on or after January 1, 1988, unless provided for
in a memorandum of understanding reached pursuant to Chapter 12
(commencing with Section 3560) of Division 4 of Title 1, or
authorized by the Trustees of the California State University for
employees excluded from collective bargaining. The memorandum of
understanding shall be controlling without further legislative
action, except that if the provisions of a memorandum of
understanding require the expenditure of funds, the provisions shall
not become effective unless approved by the Legislature in the annual
Budget Act.
(j) This section shall apply to local members employed by a
contracting agency that has included this benefit in its contract
with the board on or before June 30, 2001.
(k) This section shall not apply to any contracting agency that
first contracts with the board on or after July 1, 2001.
( l ) On and after January 1, 2000, all eligible state
and school members covered by this section shall be covered by the
benefit provided under Section 21574.7.
SEC. 50. Section 12.2 is added to the Harbors and Navigation Code,
to read:
12.2. "Spouse" includes "registered domestic partner," as
required by Section 297.5 of the Family Code.
SEC. 51. Section 12.2 is added to the Health and Safety Code, to
read:
12.2. "Spouse" includes "registered domestic partner," as
required by Section 297.5 of the Family Code.
SEC. 52. Section 1373.5 of the Health and Safety Code is amended
to read:
1373.5. When spouses are both employed as employees, and both
have enrolled themselves and their eligible family members under a
group health care service plan provided by their respective
employers, and each spouse is covered as an employee under the terms
of the same master contract, each spouse may claim on his or her
behalf, or on behalf of his or her enrolled dependents, the combined
maximum contractual benefits to which an employee is entitled under
the terms of the master contract, not to exceed in the aggregate 100
percent of the charge for the covered expense or service.
This section shall apply to every group plan entered into,
delivered, amended, or renewed in this state on or after January 1,
1978.
SEC. 53. Section 18080 of the Health and Safety Code is amended to
read:
18080. Ownership registration and title to a manufactured home,
mobilehome, commercial coach, or truck camper, or floating home
subject to registration may be held by two or more coowners as
follows:
(a) A manufactured home, mobilehome, commercial coach, truck
camper, or floating home may be registered in the names of two or
more persons as joint tenants. Upon the death of a joint tenant, the
interest of the decedent shall pass to the survivor or survivors. The
signature of each joint tenant or survivor or survivors, as the case
may be, shall be required to transfer or encumber the title to the
manufactured home, mobilehome, commercial coach, truck camper, or
floating home.
(b) A manufactured home, mobilehome, commercial coach, truck
camper, or floating home may be registered in the names of two or
more persons as tenants in common. If the names of the tenants in
common are separated by the word "and," each tenant in common may
transfer his or her individual interest in the manufactured home,
mobilehome, commercial coach, truck camper, or floating home without
the signature of the other tenant or tenants in common. However, the
signature of each tenant in common shall be required to transfer full
interest in the title to a new registered owner. If the names of the
tenants in common are separated by the word "or," any one of the
tenants in common may transfer full interest in the title to the
manufactured home, mobilehome, commercial coach, truck camper, or
floating home to a new registered owner without the signature of the
other tenant or tenants in common. The signature of each tenant in
common is required in all cases to encumber the title to the
manufactured home, mobilehome, commercial coach, truck camper, or
floating home.
(c) A manufactured home, mobilehome, commercial coach, truck
camper, or floating home may be registered as community property in
the names of the spouses. The signature of each spouse shall be
required to transfer or encumber the title to the manufactured home,
mobilehome, commercial coach, truck camper, or floating home.
(d) All manufactured homes, mobilehomes, commercial coaches,
truck campers, and floating homes registered, on or before January 1,
1985, in the names of two or more persons
as tenants in common, as provided in
subdivision (b), shall be considered to be the same as if the names
of the tenants in common were separated by the word "or," as provided
in subdivision (b).
SEC. 54. Section 25299.54 of the Health and Safety Code is amended
to read:
25299.54. (a) Except as provided in subdivisions (b), (c), (d),
(e), (g), and (h), an owner or operator, required to perform
corrective action pursuant to Section 25296.10, or an owner or
operator who, as of January 1, 1988, is required to perform
corrective action, who has initiated this action in accordance with
Division 7 (commencing with Section 13000) of the Water Code, who is
undertaking corrective action in compliance with waste discharge
requirements or other orders issued pursuant to Division 7
(commencing with Section 13000) of the Water Code, or Chapter 6.7
(commencing with Section 25280), may apply to the board for
satisfaction of a claim filed pursuant to this article.
(b) A person who has failed to comply with Article 3 (commencing
with Section 25299.30) is ineligible to file a claim pursuant to this
section.
(c) An owner or operator of an underground storage tank containing
petroleum is ineligible to file a claim pursuant to this section if
the person meets both of the following conditions:
(1) The person knew, before January 1, 1988, of the unauthorized
release of petroleum which is the subject of the claim.
(2) The person did not initiate, on or before June 30, 1988, any
corrective action in accordance with Division 7 (commencing with
Section 13000) of the Water Code concerning the release, or the
person did not, on or before June 30, 1988, initiate corrective
action in accordance with Chapter 6.7 (commencing with Section 25280)
or the person did not initiate action on or before June 30, 1988, to
come into compliance with waste discharge requirements or other
orders issued pursuant to Division 7 (commencing with Section 13000)
of the Water Code concerning the release.
(d) An owner or operator who violates Section 25296.10 or a
corrective action order, directive, notification, or approval order
issued pursuant to this chapter, Chapter 6.7 (commencing with Section
25280) of this code, or Division 7 (commencing with Section 13000)
of the Water Code, is liable for a corrective action cost that
results from the owner's or operator's violation and is ineligible to
file a claim pursuant to this section.
(e) Notwithstanding this chapter, a person who owns a tank located
underground that is used to store petroleum may apply to the board
for satisfaction of a claim, and the board may pay the claim pursuant
to Section 25299.57 without making the finding specified in
paragraph (3) of subdivision (d) of Section 25299.57 if all of the
following apply:
(1) The tank meets one of the following requirements:
(A) The tank is located at the residence of a person on property
used exclusively for residential purposes at the time of discovery of
the unauthorized release of petroleum.
(B) The tank owner demonstrates that the tank is located on
property that, on and after January 1, 1985, is not used for
agricultural purposes, the tank is of a type specified in
subparagraph (B) of paragraph (1) of subdivision (y) of Section
25281, and the petroleum in the tank is used solely for the purposes
specified in subparagraph (B) of paragraph (1) of subdivision (y) of
Section 25281 on and after January 1, 1985.
(2) The tank is not a tank described in subparagraph (A) of
paragraph (1) of subdivision (y) of Section 25281 and the tank is not
used on or after January 1, 1985, for the purposes specified in that
subparagraph.
(3) The claimant has complied with Section 25299.31 and the permit
requirements of Chapter 6.7 (commencing with Section 25280), or the
claimant is not subject to the requirements of those provisions.
(f) Whenever the board has authorized the prepayment of a claim
pursuant to Section 25299.57, and the amount of money available in
the fund is insufficient to pay the claim, the owner or operator
shall remain obligated to undertake the corrective action in
accordance with Section 25296.10.
(g) The board shall not reimburse a claimant for any eligible
costs for which the claimant has been, or will be, compensated by
another person. This subdivision does not affect reimbursement of a
claimant from the fund under either of the following circumstances:
(1) The claimant has a written contract, other than an insurance
contract, with another person that requires the claimant to reimburse
the person for payments the person has provided the claimant pending
receipt of reimbursement from the fund.
(2) An insurer has made payments on behalf of the claimant
pursuant to an insurance contract and either of the following
applies:
(A) The insurance contract explicitly coordinates insurance
benefits with the fund and requires the claimant to do both of the
following:
(i) Maintain the claimant's eligibility for reimbursement of costs
pursuant to this chapter by complying with all applicable
eligibility requirements.
(ii) Reimburse the insurer for costs paid by the insurer pending
reimbursement of those costs by the fund.
(B) The claimant received a letter of commitment prior to June 30,
1999, for the occurrence and the claimant is required to reimburse
the insurer for any costs paid by the insurer pending reimbursement
of those costs by the fund.
(h) (1) Except as provided in paragraph (2), a person who
purchases or otherwise acquires real property on which an underground
storage tank or tank specified in subdivision (e) is situated shall
not be reimbursed by the board for a cost attributable to an
occurrence that commenced prior to the acquisition of the real
property if both of the following conditions apply:
(A) The purchaser or acquirer knew, or in the exercise of
reasonable diligence would have discovered, that an underground
storage tank or tank specified in subdivision (e) was located on the
real property being acquired.
(B) A person who owned the site or owned or operated an
underground storage tank or tank specified in subdivision (e) at the
site during or after the occurrence and prior to acquisition by the
purchaser or acquirer would not have been eligible for reimbursement
from the fund.
(2) Notwithstanding paragraph (1), if the claim is filed on or
after January 1, 2003, the board may reimburse the eligible costs
claimed by a person who purchases or otherwise acquires real property
on which an underground storage tank or tank specified in
subdivision (e) is situated, if all of the following conditions
apply:
(A) The claimant is the owner or operator of the underground
storage tank or tank specified in subdivision (e) that had an
occurrence that commenced prior to the owner's acquisition of the
real property.
(B) The claimant satisfies all eligibility requirements, other
than those specified in paragraph (1).
(C) The claimant is not an affiliate of a person whose act or
omission caused or would cause ineligibility for the fund.
(3) If the board reimburses a claim pursuant to paragraph (2), a
person specified in subparagraph (B) of paragraph (1), other than a
person who is ineligible for reimbursement from the fund solely
because the property was acquired from another person who was
ineligible for reimbursement from the fund, shall be liable for the
amount paid from the fund. The Attorney General, upon request of the
board, shall bring a civil action to recover the liability imposed
under this paragraph. All money recovered by the Attorney General
under this paragraph shall be deposited in the fund.
(4) The liability established pursuant to paragraph (3) does not
limit or supersede liability under any other provision of state or
federal law, including common law.
(5) For purposes of this subdivision, the following definitions
shall apply:
(A) "Affiliate" means a person who has one or more of the
following relationships with another person:
(i) Familial relationship.
(ii) Fiduciary relationship.
(iii) A relationship of direct or indirect control or shared
interests.
(B) Affiliates include, but are not limited to, any of the
following:
(i) Parent corporation and subsidiary.
(ii) Subsidiaries that are owned by the same parent corporation.
(iii) Business entities involved in a reorganization, as defined
in Section 181 of the Corporations Code.
(iv) Corporate officer and corporation.
(v) Shareholder that owns a controlling block of voting stock and
the corporation.
(vi) Partner and the partnership.
(vii) Member and a limited liability company.
(viii) Franchiser and franchisee.
(ix) Settlor, trustee, and beneficiary of a trust.
(x) Debtor and bankruptcy trustee or debtor-in-possession.
(xi) Principal and agent.
(C) "Familial relationship" means relationships between family
members, including, and limited to, a spouse, child, stepchild,
parent, grandparent, grandchild, brother, sister, stepbrother,
stepsister, stepmother, stepfather, mother-in-law, father-in-law,
brother-in-law, sister-in-law, daughter-in-law, son-in-law, and, if
related by blood, uncle, aunt, niece, or nephew.
(D) "Purchases or otherwise acquires real property" means the
acquisition of fee title ownership or the acquisition of the lessee's
interest in a ground lease of real property on which one or more
underground storage tanks are located if the lease has an initial
original term, including unilateral extension or renewal rights, of
not less than 35 years.
(i) The Legislature finds and declares that the changes made to
subparagraph (A) of paragraph (1) of subdivision (e) by Chapter 1290
of the Statutes of 1992 are declaratory of existing law.
(j) The Legislature finds and declares that the amendment of
subdivisions (a) and (g) by Chapter 328 of the Statutes of 1999 is
declaratory of existing law.
SEC. 55. Section 32501 of the Health and Safety Code is amended to
read:
32501. Any person desiring in his or her lifetime to promote the
public welfare by founding, endowing, and having maintained within
this state a hospital for the relief of the sick, and for use as a
training school for nurses may, by grant in writing, convey to a
trustee named in the grant and to the successor of such trustee, any
of his or her property situated within this state. If he or she is
married or in a registered domestic partnership and the property is
community, both spouses shall join in the grant.
SEC. 56. Section 12.2 is added to the Insurance Code, to read:
12.2. "Spouse" includes "registered domestic partner," as
required by Section 297.5 of the Family Code.
SEC. 57. Section 10112 of the Insurance Code is amended to read:
10112. Subject to Section 2459 of the Probate Code, in respect to
life or disability insurance, or annuity contracts (except as
provided in Sections 2500 to 2507, inclusive, of the Probate Code and
Section 3500 of the Probate Code and Chapter 4 (commencing with
Section 3600) of Part 8 of Division 4 of the Probate Code),
heretofore or hereafter issued to or upon the life of any person not
of a full 18 years of age for the benefit of such minor or for the
benefit of the father, mother, spouse, child, brother, or sister, of
such minor, or issued to such minor, subject to written consent of a
parent or guardian, upon the life of any person in whom such minor
has an insurable interest for the benefit of himself or herself or
such minor's father, mother, spouse, child, brother or sister, such
minor shall not, by reason only of such minority, be deemed
incompetent to contract for such insurance or annuity, or for the
surrender thereof, or to exercise all contractual rights thereunder,
or, subject to approval of a parent or guardian, to give a valid
discharge for any benefit accruing or for any money payable
thereunder; provided, that all such contracts made by a minor under
16 years of age, as determined by the nearest birthday, shall have
the written consent of a parent or guardian, and that the exercise of
all contractual rights under such contracts, or the surrender
thereof, or the giving of a valid discharge for any benefit accruing
or money payable thereunder, in the case of a minor under 16 years of
age, as determined by the nearest birthday, shall have the written
consent of a parent or guardian.
All such contracts made by a minor not of a full 18 years of age
which may result in any personal liability for assessment shall have
the written assumption of any such liability by a parent or guardian
in consideration of the issuance of the contract. Such assumption
shall be in a form approved by the commissioner, reasonably designed
to inform the parent or guardian of the liability thus assumed.
Such assumption of liability may be made a part of and included
with any written consent of such parent or guardian required under
other provisions of this section and it may be provided therein that
such assumption shall cover only up to the anniversary date of the
policy nearest to the member's birthday at which he or she attains 18
years of age.
SEC. 58. Section 10121.5 of the Insurance Code is amended to read:
10121.5. (a) When spouses are both employed as employees, and
both have enrolled themselves and their eligible family members under
a group policy of disability insurance provided by their respective
employers, and each spouse is covered as an employee under the terms
of the same master policy, each spouse may claim on his or her
behalf, or on behalf of his or her enrolled dependents, the combined
maximum contractual benefits to which an employee is entitled under
the terms of the master policy, not to exceed in the aggregate 100
percent of the charge for the covered expense or service.
(b) When spouses are both employed as employees, and both have
enrolled themselves and their eligible family members under a
self-insured employee welfare benefit plan provided by their
respective employers, and each spouse is covered as an employee under
the terms of the same master contract, each spouse may claim on his
or her behalf, or on behalf of his or her enrolled dependents, the
combined maximum contractual benefits to which an employee is
entitled under the terms of the master contract, not to exceed in the
aggregate 100 percent of the charge for the covered expense or
service.
(c) This section shall apply to every group disability insurance
policy and self-insured employee welfare benefit plan which is
entered into, issued, delivered, amended, or renewed in this state on
or after January 1, 1978.
SEC. 59. Section 10320 of the Insurance Code is amended to read:
10320. No policy of accident and sickness insurance shall be
delivered or issued for delivery to any person in this state unless
all of the following apply:
(a) The entire money and other considerations therefor are
expressed therein.
(b) The time at which the insurance takes effect and terminates is
expressed therein.
(c) It purports to insure only one person, except that a policy
may insure, originally or by subsequent amendment, upon the
application of the head of a family who shall be deemed the
policyholder, any two or more eligible members of that family,
including spouse, dependent children, or any children under a
specified age which shall not exceed 19 years of age and any other
person dependent upon the policyholder.
(d) The style, arrangement and over-all appearance of the policy
give no undue prominence to any portion of the text, and unless every
printed portion of the text of the policy and of any endorsements or
attached papers is plainly printed in light-faced type of a style in
general use, the size of which shall be uniform and not less than
10-point with a lower case unspaced alphabet length not less than
120-point (the "text" shall include all printed matter except the
name and address of the insurer, name or title of the policy, the
brief description, if any, and captions and subcaptions).
(e) The exceptions and reductions of indemnity are set forth in
the policy and, except those which are set forth in Article 4a or 5a
of this chapter, are printed, at the insurer's option, either
included with the benefit provision to which they apply, or under an
appropriate caption such as "Exceptions," or "Exceptions and
Reductions"; provided, that if an exception or reduction specifically
applies only to a particular benefit of the policy, a statement of
such exception or reduction shall be included with the benefit
provision to which it applies.
(f) Each such form, including riders and endorsements, shall be
identified by a form number in the lower left-hand corner of the
first page thereof.
(g) It contains no provision purporting to make any portion of the
charter, rules, constitution, or bylaws of the insurer a part of the
policy unless such portion is set forth in full in the policy,
except in the case of the incorporation of, or reference to, a
statement of rates or classification of risks, or short-rate table
filed with the commissioner.
(h) If the policy contains amendment, change, limitation,
alteration, or restriction of the printed text by endorsement, or by
any means other than rider upon a separate piece of paper made a part
of such policy.
(i) If any portion of such policy purports to reduce benefits by
reason of age of the insured and such reduction, in accordance with
the age of the insured as stated in his or her application, would be
effective on the issue date of the policy.
SEC. 60. Section 10493 of the Insurance Code is amended to read:
10493. Any incorporated or unincorporated benefit and relief
association organized before January 15, 1951, may procure a
certificate of exemption from the commissioner if it complies with
all of the following:
(a) All of the other requirements of this article.
(b) As respects life or disability or life and disability
insurance transacted by it, it is of an entirely nonprofit nature.
(c) Any one of the following requirements as to membership and
purpose:
(1) It is composed of and its membership limited to the appointive
officers and employees of a public school district or districts
and/or the pupils of any such district or districts, or of any
private school or schools.
(2) It is composed of and its membership limited to the appointive
officers and employees of a municipal playground system, or the
systems of two or more municipalities united in a league, federation,
or other association for the purpose of promoting intercity
competitions or other activities, and/or the participants in dancing,
recreational, sporting, educational, social and/or theatrical
activities sponsored and/or directed by such system or systems and
carried on through the use of any of the facilities of such system or
systems.
(3) Its membership in this state is 1,000 or more and it is either
an organization of a purely religious or benevolent character or its
membership is limited to the members of such an organization.
(4) It is composed of and its membership is limited to the members
of another organization which other organization is of a purely
religious or benevolent character and has a total membership in this
state of not less than 1,000.
(5) It is a domestic organization, lodge, society or order which
prior to September 19, 1947, provided life or disability benefits or
both such benefits to its members and
(A) Is of a charitable, benevolent or beneficent character or
becomes such within one year from September 4, 1951, and in both
instances is thereafter of such character, and
(B) Operates in such a manner that the payment of such benefits
even though it be one of the express purposes of such organization,
lodge or order, is as a matter of fact incidental to its charitable,
benevolent or beneficent purposes or within one year from September
4, 1951, operates in such a manner and in both instances thereafter
operates in such a manner.
(6) Officers and employees of a common employer, and related
dependents of such officers and employees, comprising spouses and
dependent children who are not married or in registered domestic
partnerships and are under 19 years of age, and living in the same
household.
(d) Pays a filing fee in the amount of seven hundred eight dollars
($708).
SEC. 61. Section 10494.6 of the Insurance Code is amended to read:
10494.6. Any employer who qualifies for a certificate of
exemption under Section 10494.5 by virtue of which certificate he or
she maintains a plan for furnishing disability benefits to his or her
employees may, if he or she elects, make available for the related
dependents of his or her employees, comprising spouses and dependent
children who are not married or in registered domestic partnerships
living in the same household, a supplemental plan of disability
benefits containing any or all of the following benefits, hospital,
surgical and medical; provided, that as to the supplemental plan the
Insurance Commissioner finds that all of the following exist:
(a) The supplemental plan shall be separately stated, setting out
all of the provisions of coverage.
(b) The plan shall set out the respective contributions of the
employer and employees. All contributions of employees received or
retained by the employer shall be trust funds and shall be separately
accounted for by the employer and may not inure to the benefit of
the employer in any manner whatsoever.
(c) The plan permits the disabled individual a free choice of
physician and surgeon, or podiatrist in the case of those services
that are within the scope of practice of podiatric medicine, as
defined in Section 2472 of the Business and Professions Code, and
hospital.
(d) The employer agrees to assume 50 percent of the cost of
maintaining the plan, and he or she further agrees to guarantee the
benefits if the contributions required for the supplementary benefits
are not sufficient to pay the cost of same. The funds necessary to
discharge the employer's 50 percent assumption shall be trust funds
and shall be separately accounted for by him or her.
SEC. 62. Section 12.2 is added to the Labor Code, to read:
12.2. "Spouse" includes "registered domestic partner," as
required by Section 297.5 of the Family Code.
SEC. 63. Section 3503 of the Labor Code is amended to read:
3503. No person is a dependent of any deceased employee unless in
good faith a member of the family or household of the employee, or
unless the person bears to the employee the relation of spouse,
child, posthumous child, adopted child or stepchild, grandchild,
father or mother, father-in-law or mother-in-law, grandfather or
grandmother, brother or sister, uncle or aunt, brother-in-law or
sister-in-law, or nephew or niece.
SEC. 64. Section 19 is added to the Military and Veterans Code, to
read:
19. "Spouse" includes "registered domestic partner," as required
by Section 297.5 of the Family Code.
SEC. 65. Section 7 of the Penal Code is amended to read:
7. Words used in this code in the present tense include the
future as well as the present; words used in the masculine gender
include the feminine and neuter; the singular number includes the
plural, and the plural the singular; the word "person" includes a
corporation as well as a natural person; the word "county" includes
"city and county"; writing includes printing and typewriting; oath
includes affirmation or declaration; and every mode of oral
statement, under oath or affirmation, is embraced by the term
"testify," and every written one in the term "depose"; signature or
subscription includes mark, when the person cannot write, his or her
name being written near it, by a person who writes his or her own
name as a witness; provided, that when a signature is made by mark it
must, in order that the same may be acknowledged or serve as the
signature to any sworn statement, be witnessed by two persons who
must subscribe their own names as witnesses thereto.
The following words have in this code the signification attached
to them in this section, unless otherwise apparent from the context:
(1) The word "willfully," when applied to the intent with which an
act is done or omitted, implies simply a purpose or willingness to
commit the act, or make the omission referred to. It does not require
any intent to violate law, or to injure another, or to acquire any
advantage.
(2) The words "neglect," "negligence," "negligent," and
"negligently" import a want of such attention to the nature or
probable consequences of the act or omission as a prudent man
ordinarily bestows in acting in his own concerns.
(3) The word "corruptly" imports a wrongful design to acquire or
cause some pecuniary or other advantage to the person guilty of the
act or omission referred to, or to some other person.
(4) The words "malice" and "maliciously" import a wish to vex,
annoy, or injure another person, or an intent to do a wrongful act,
established either by proof or presumption of law.
(5) The word "knowingly" imports only a knowledge that the facts
exist which bring the act or omission within the provisions of this
code. It does not require any knowledge of the unlawfulness of such
act or omission.
(6) The word "bribe" signifies anything of value or advantage,
present or prospective, or any promise or undertaking to give any,
asked, given, or accepted, with a corrupt intent to influence,
unlawfully, the person to whom it is given, in his or her action,
vote, or opinion, in any public or official capacity.
(7) The word "vessel," when used with reference to shipping,
includes ships of all kinds, steamboats, canalboats, barges, and
every structure adapted to be navigated from place to place for the
transportation of merchandise or persons, except that, as used in
Sections 192.5 and 193.5, the word "vessel" means a vessel as defined
in subdivision (c) of Section 651 of the Harbors and Navigation
Code.
(8) The words "peace officer" signify any one of the officers
mentioned in Chapter 4.5 (commencing with Section 830) of Title 3 of
Part 2.
(9) The word "magistrate" signifies any one of the officers
mentioned in Section 808.
(10) The word "property" includes both real and personal property.
(11) The words "real property" are coextensive with lands,
tenements, and hereditaments.
(12) The words "personal property" include money, goods, chattels,
things in action, and evidences of debt.
(13) The word "month" means a calendar month, unless otherwise
expressed; the word "daytime" means the period between sunrise and
sunset, and the word "nighttime" means the period between sunset and
sunrise.
(14) The word "will" includes codicil.
(15) The word "writ" signifies an order or precept in writing,
issued in the name of the people, or of a court or judicial officer,
and the word "process" a writ or summons issued in the course of
judicial proceedings.
(16) Words and phrases must be construed according to the context
and the approved usage of the language; but technical words and
phrases, and such others as may have acquired a peculiar and
appropriate meaning in law, must be construed according to such
peculiar and appropriate meaning.
(17) Words giving a joint authority to three or more public
officers or other persons, are construed as giving such authority to
a majority of them, unless it is otherwise expressed in the act
giving the authority.
(18) When the seal of a court or public officer is required by law
to be affixed to any paper, the word "seal" includes an impression
of such seal upon the paper alone, or upon any substance attached to
the paper capable of receiving a visible impression. The seal of a
private person may be made in like manner, or by the scroll of a pen,
or by writing the word "seal" against his or her name.
(19) The word "state," when applied to the different parts of the
United States, includes the District of Columbia and the territories,
and the words "United States" may include the district and
territories.
(20) The word "section," whenever hereinafter employed, refers to
a section of this code, unless some other code or statute is
expressly mentioned.
(21) To "book" signifies the recordation of an arrest in official
police records, and the taking by the police of fingerprints and
photographs of the person arrested, or any of these acts following an
arrest.
(22) The word "spouse" includes "registered domestic partner," as
required by Section 297.5 of the Family Code.
SEC. 66. Section 152.3 of the Penal Code is amended to read:
152.3. (a) Any person who reasonably believes that he or she has
observed the commission of any of the following offenses where the
victim is a child under 14 years of age shall notify a peace officer,
as defined in Chapter 4.5 (commencing with Section 830) of Title 3
of Part 2:
(1) Murder.
(2) Rape.
(3) A violation of paragraph (1) of subdivision (b) of Section 288
of the Penal Code.
(b) This section shall not be construed to affect privileged
relationships as provided by law.
(c) The duty to notify a peace officer imposed pursuant to
subdivision (a) is satisfied if the notification or an attempt to
provide notice is made by telephone or any other means.
(d) Failure to notify as required pursuant to subdivision (a) is a
misdemeanor and is punishable by a fine of not more than one
thousand five hundred dollars ($1,500), by imprisonment in a county
jail for not more than six months, or by both that fine and
imprisonment.
(e) The requirements of this section shall not apply to the
following:
(1) A person who is related to either the victim or the offender,
including a spouse, parent, child, brother, sister, grandparent,
grandchild, or other person related by consanguinity or affinity.
(2) A person who fails to report based on a reasonable mistake of
fact.
(3) A person who fails to report based on a reasonable fear for
his or her own safety or for the safety of his or her family.
SEC. 67. Section 197 of the Penal Code is amended to read:
197. Homicide is also justifiable when committed by any person in
any of the following cases:
(1) When resisting any attempt to murder any person, or to commit
a felony, or to do some great bodily injury upon any person.
(2) When committed in defense of habitation, property, or person,
against one who manifestly intends or endeavors, by violence or
surprise, to commit a felony, or against one who manifestly intends
and endeavors, in a violent, riotous, or tumultuous manner, to enter
the habitation of another for the purpose of offering violence to any
person therein.
(3) When committed in the lawful defense of such person, or of a
spouse, parent, child, master, mistress, or servant of such person,
when there is reasonable ground to apprehend a design to commit a
felony or to do some great bodily injury, and imminent danger of such
design being accomplished; but such person, or the person in whose
behalf the defense was made, if he or she was the assailant or
engaged in mutual combat, must really and in good faith have
endeavored to decline any further struggle before the homicide was
committed.
(4) When necessarily committed in attempting, by lawful ways and
means, to apprehend any person for any felony committed, or in
lawfully suppressing any riot, or in lawfully keeping and preserving
the peace.
SEC. 68. Section 270e of the Penal Code is amended to read:
270e. No other evidence shall be required to prove marriage or
registered domestic partnership of spouses, or that a person is the
lawful father or mother of a child or children, than is or shall be
required to prove such facts in a civil action. In all prosecutions
under either Section 270a or 270 of this code, Sections 970, 971, and
980 of the Evidence Code do not apply, and both spouses or domestic
partners shall be competent to testify to any and all relevant
matters, including the fact of marriage or registered domestic
partnership and the parentage of a child or children. Proof of the
abandonment and nonsupport of a spouse, or of the omission to furnish
necessary food, clothing, shelter, or of medical attendance for a
child or children is prima facie evidence that such abandonment and
nonsupport or omission to furnish necessary food, clothing, shelter,
or medical attendance is willful. In any prosecution under Section
270, it shall be competent for the people to prove nonaccess of
husband to wife or any other fact establishing nonpaternity of a
husband. In any prosecution pursuant to Section 270, the final
establishment of paternity or nonpaternity in another proceeding
shall be admissible as evidence of paternity or nonpaternity.
SEC. 69. Section 273.5 of the Penal Code is amended to read:
273.5. (a) Any person who willfully inflicts corporal injury
resulting in a traumatic condition upon a victim described in
subdivision (b) is guilty of a felony, and upon conviction thereof
shall be punished by imprisonment in the state prison for two, three,
or four years, or in a county jail for not more than one year, or by
a fine of up to six thousand dollars ($6,000), or by both that fine
and imprisonment.
(b) Subdivision (a) shall apply if the victim is or was one or
more of the following:
(1) The offender's spouse or former spouse.
(2) The offender's cohabitant or former cohabitant.
(3) The offender's fiancé or fiancée, or someone with whom the
offender has, or previously had, an engagement or dating
relationship, as defined in paragraph (10) of subdivision (f) of
Section 243.
(4) The mother or father of the offender's child.
(c) Holding oneself out to be the spouse of the person with whom
one is cohabiting is not necessary to constitute cohabitation as the
term is used in this section.
(d) As used in this section, "traumatic condition" means a
condition of the body, such as a wound, or external or internal
injury, including, but not limited to, injury as a result of
strangulation or suffocation, whether of a minor or serious nature,
caused by a physical force. For purposes of this section,
"strangulation" and "suffocation" include impeding the normal
breathing or circulation of the blood of a person by applying
pressure on the throat or neck.
(e) For the purpose of this section, a person shall be considered
the father or mother of another person's child if the alleged male
parent is presumed the natural father under Sections 7611 and 7612 of
the Family Code.
(f) (1) Any person convicted of violating this section for acts
occurring within seven years of a previous conviction under
subdivision (a), or subdivision (d) of Section 243, or Section 243.4,
244, 244.5, or 245, shall be punished by imprisonment in a county
jail for not more than one year, or by imprisonment in the state
prison for two, four, or five years, or by both imprisonment and a
fine of up to ten thousand dollars ($10,000).
(2) Any person convicted of a violation of this section for acts
occurring within seven years of a previous conviction under
subdivision (e) of Section 243 shall be punished by imprisonment in
the state prison for two, three, or four years, or in a county jail
for not more than one year, or by a fine of up to ten thousand
dollars ($10,000), or by both that imprisonment and fine.
(g) If probation is granted to any person convicted under
subdivision (a), the court shall impose probation consistent with the
provisions of Section 1203.097.
(h) If probation is granted, or the execution or imposition of a
sentence is suspended, for any defendant convicted under subdivision
(a) who has been convicted of any prior offense specified in
subdivision (f), the court shall impose one of the following
conditions of probation:
(1) If the defendant has suffered one prior conviction within the
previous seven years for a violation of any offense specified in
subdivision (f), it shall be a condition of probation, in addition to
the provisions contained in Section 1203.097, that he or she be
imprisoned in a county jail for not less than 15 days.
(2) If the defendant has suffered two or more prior convictions
within the previous seven years for a violation of any offense
specified in subdivision (f), it shall be a condition of probation,
in addition to the provisions contained in Section 1203.097, that he
or she be imprisoned in a county jail for not less than 60 days.
(3) The court, upon a showing of good cause, may find that the
mandatory imprisonment required by this subdivision shall not be
imposed and shall state on the record its reasons for finding good
cause.
(i) If probation is granted upon conviction of a violation of
subdivision (a), the conditions of probation may include, consistent
with the terms of probation imposed pursuant to Section 1203.097, in
lieu of a fine, one or both of the following requirements:
(1) That the defendant make payments to a battered women's
shelter, up to a maximum of five thousand dollars ($5,000), pursuant
to Section 1203.097.
(2) (A) That the defendant reimburse the victim for reasonable
costs of counseling and other reasonable expenses that the court
finds are the direct result of the defendant's offense.
(B) For any order to pay a fine, make payments to a battered women'
s shelter, or pay restitution as a condition of probation under this
subdivision, the court shall make a determination of the defendant's
ability to pay. An order to make payments to a battered women's
shelter shall not be made if it would impair the ability of the
defendant to pay direct restitution to the victim or court-ordered
child support. If the injury to a person who is married or in a
registered domestic partnership is caused in whole or in part by the
criminal acts of his or her spouse or domestic partner in violation
of this section, the community property may not be used to discharge
the liability of the offending spouse or domestic partner for
restitution to the injured spouse or domestic partner, required by
Section 1203.04, as operative on or before August 2, 1995, or Section
1202.4, or to a shelter for costs with regard to the injured spouse
or domestic partner and dependents, required by this section, until
all separate property of the offending spouse or domestic partner is
exhausted.
(j) Upon conviction under subdivision (a), the sentencing court
shall also consider issuing an order restraining the defendant from
any contact with the victim, which may be valid for up to 10 years,
as determined by the court. It is the intent of the Legislature that
the length of any restraining order be based upon the seriousness of
the facts before the court, the probability of future violations, and
the safety of the victim and his or her immediate family. This
protective order may be issued by the court whether the defendant is
sentenced to state prison or county jail, or if imposition of
sentence is suspended and the defendant is placed on probation.
(k) If a peace officer makes an arrest for a violation of this
section, the peace officer is not required to inform the victim of
his or her right to make a citizen's arrest pursuant to subdivision
(b) of Section 836.
SEC. 70. Section 281 of the Penal Code is amended to read:
281. (a) Every person having a spouse living, who marries or
enters into a registered domestic partnership with any other person,
except in the cases specified in Section 282, is guilty of bigamy.
(b) Upon a trial for bigamy, it is not necessary to prove either
of the marriages or registered domestic partnerships by the register,
certificate, or other record evidence thereof, but the marriages or
registered domestic partnerships may be proved by evidence which is
admissible to prove a marriage or registered domestic partnership in
other cases; and when the second marriage or registered domestic
partnership took place out of this state, proof of that fact,
accompanied with proof of cohabitation thereafter in this state, is
sufficient to sustain the charge.
SEC. 71. Section 282 of the Penal Code is amended to read:
282. Section 281 does not extend to any of the following:
(a) To any person by reason of any former marriage or former
registered domestic partnership whose spouse by such marriage or
registered domestic partnership has been absent for five successive
years without being known to such person within that time to be
living.
(b) To any person by reason of any former marriage, or any former
registered domestic partnership, which has been pronounced void,
annulled, or dissolved by the judgment of a competent court.
SEC. 72. Section 284 of the Penal Code is amended to read:
284. Every person who knowingly and willfully marries or enters
into a registered domestic partnership with the spouse of another, in
any case in which such spouse would be punishable under the
provisions of this chapter, is punishable by a fine not less than
five thousand dollars ($5,000), or by imprisonment pursuant to
subdivision (h) of Section 1170.
SEC. 73. Section 534 of the Penal Code is amended to read:
534. Every person who is married or in a registered domestic
partnership, who falsely and fraudulently represents himself or
herself as competent to sell or mortgage any real estate, to the
validity of which sale or mortgage the assent or concurrence of his
or her spouse is necessary, and under such representations willfully
conveys or mortgages the same, is guilty of a felony.
SEC. 74. Section 4002 of the Penal Code is amended to read:
4002. (a) Persons committed on criminal process and detained for
trial, persons convicted and under sentence, and persons committed
upon civil process, shall not be kept or put in the same room, nor
shall male and female prisoners, except spouses, sleep, dress or
undress, bathe, or perform eliminatory functions in the same room.
However, persons committed on criminal process and detained for trial
may be kept or put in the same room with persons convicted and under
sentence for the purpose of participating in supervised activities
and for the purpose of housing, provided, that the housing occurs as
a result of a classification procedure that is based upon objective
criteria, including consideration of criminal sophistication,
seriousness of crime charged, presence or absence of assaultive
behavior, age, and other criteria that will provide for the safety of
the prisoners and staff.
(b) Inmates who are held pending civil process under the sexually
violent predator laws shall be held in administrative segregation.
For purposes of this subdivision, administrative segregation means
separate and secure housing that does not involve any deprivation of
privileges other than what is necessary to protect the inmates and
staff. Consistent with Section 1610, to the extent possible, the
person shall continue in his or her course of treatment, if any. An
alleged sexually violent predator held pending civil process may
waive placement in secure housing by petitioning the court for a
waiver. In order to grant the waiver, the court must find that the
waiver is voluntary and intelligent, and that granting the waiver
would not interfere with any treatment programming for the person
requesting the waiver. A person granted a waiver shall be placed with
inmates charged with similar offenses or with similar criminal
histories, based on the objective criteria set forth in subdivision
(a).
(c) Nothing in this section shall be construed to impose any
requirement upon a county to confine male and female prisoners in the
same or an adjoining facility or impose any duty upon a county to
establish or maintain programs which involve the joint participation
of male and female prisoners.
SEC. 75. Section 13700 of the Penal Code is amended to read:
13700. As used in this title:
(a) "Abuse" means intentionally or recklessly causing or
attempting to cause bodily injury, or placing another person in
reasonable apprehension of imminent serious bodily injury to himself
or herself, or another.
(b) "Domestic violence" means abuse committed against an adult or
a minor who is a spouse, former spouse, cohabitant, former
cohabitant, or person with whom the suspect has had a child or is
having or has had a dating or engagement relationship. For purposes
of this subdivision, "cohabitant" means two unrelated adult persons
living together for a substantial period of time, resulting in some
permanency of relationship. Factors that may determine whether
persons are cohabiting include, but are not limited to, (1) sexual
relations between the parties while sharing the same living quarters,
(2) sharing of income or expenses, (3) joint use or ownership of
property, (4) whether the parties hold themselves out as spouses, (5)
the continuity of the relationship, and (6) the length of the
relationship.
(c) "Officer" means any officer or employee of a local police
department or sheriff's office, and any peace officer of the
Department of the California Highway Patrol, the Department of Parks
and Recreation, the University of California Police Department, or
the California State University and College Police Departments, as
defined in Section 830.2, a peace officer of the Department of
General Services of the City of Los Angeles, as defined in
subdivision (c) of Section 830.31, a housing authority patrol
officer, as defined in subdivision (d) of Section 830.31, a peace
officer as defined in subdivisions (a) and (b) of Section 830.32, or
a peace officer as defined in subdivision (a) of Section 830.33.
(d) "Victim" means a person who is a victim of domestic violence.
SEC. 76. Section 59 of the Probate Code is amended to read:
59. "Predeceased spouse" means a person who died before the
decedent while married to the decedent, except that the term does not
include any of the following:
(a) A person who obtains or consents to a final decree or judgment
of dissolution of marriage from the decedent or a final decree or
judgment of annulment of their marriage, which decree or judgment is
not recognized as valid in this state, unless they (1) subsequently
participate in a marriage ceremony purporting to marry each to the
other or (2) subsequently live together as spouses.
(b) A person who, following a decree or judgment of dissolution or
annulment of marriage obtained by the decedent, participates in a
marriage ceremony to a third person.
(c) A person who was a party to a valid proceeding concluded by an
order purporting to terminate all marital property rights.
SEC. 77. Section 72 is added to the Probate Code, to read:
72. "Spouse" includes domestic partner, as defined in Section 37
of this code, as required by Section 297.5 of the Family Code.
SEC. 78. Section 78 of the Probate Code is amended to read:
78. "Surviving spouse" does not include any of the following:
(a) A person whose marriage to, or registered domestic partnership
with, the decedent has been dissolved or annulled, unless, by virtue
of a subsequent marriage or registered domestic partnership, the
person is married to, or in a registered domestic partnership with,
the decedent at the time of death.
(b) A person who obtains or consents to a final decree or judgment
of dissolution of marriage or termination of registered domestic
partnership from the decedent or a final decree or judgment of
annulment of their marriage or termination of registered domestic
partnership, which decree or judgment is not recognized as valid in
this state, unless they (1) subsequently participate in a marriage
ceremony purporting to marry each to the other or (2) subsequently
live together as spouses.
(c) A person who, following a decree or judgment of dissolution or
annulment of marriage or registered domestic partnership obtained by
the decedent, participates in a marriage ceremony with a third
person.
(d) A person who was a party to a valid proceeding concluded by an
order purporting to terminate all marital or registered domestic
partnership property rights.
SEC. 79. Section 100 of the Probate Code is amended to read:
100. (a) Upon the death of a person who is married or in a
registered domestic partnership, one-half of the community property
belongs to the surviving spouse and the other one-half belongs to the
decedent.
(b) Notwithstanding subdivision (a), spouses may agree in writing
to divide their community property on the basis of a non pro rata
division of the aggregate value of the community property or on the
basis of a division of each individual item or asset of community
property, or partly on each basis. Nothing in this subdivision shall
be construed to require this written agreement in order to permit or
recognize a non pro rata division of community property.
SEC. 80. Section 101 of the Probate Code is amended to read:
101. (a) Upon the death of a person who is married or in a
registered domestic partnership, and is domiciled in this state,
one-half of the decedent's quasi-community property belongs to the
surviving spouse and the other one-half belongs to the decedent.
(b) Notwithstanding subdivision (a), spouses may agree in writing
to divide their quasi-community property on the basis of a non pro
rata division of the aggregate value of the quasi-community property,
or on the basis of a division of each individual item or asset of
quasi-community property, or partly on each basis. Nothing in this
subdivision shall be construed to require this written agreement in
order to permit or recognize a non pro rata division of
quasi-community property.
SEC. 81. Section 103 of the Probate Code is amended to read:
103. Except as provided by Section 224, if spouses die leaving
community or quasi-community property and it cannot be established by
clear and convincing evidence that one spouse survived the other:
(a) One-half of the community property and one-half of the
quasi-community property shall be administered or distributed, or
otherwise dealt with, as if one spouse had survived and as if that
one-half belonged to that spouse.
(b) The other one-half of the community property and the other
one-half of the quasi-community property shall be administered or
distributed, or otherwise dealt with, as if the other spouse had
survived and as if that one-half belonged to that spouse.
SEC. 82. Section 2407 of the Probate Code is amended to read:
2407. This chapter applies to property owned by spouses as
community property only to the extent authorized by Part 6
(commencing with Section 3000).
SEC. 83. Section 5040 of the Probate Code is amended to read:
5040. (a) Except as provided in subdivision (b), a nonprobate
transfer to the transferor's former spouse, in an instrument executed
by the transferor before or during the marriage or registered
domestic partnership, fails if, at the time of the transferor's
death, the former spouse is not the transferor's surviving spouse as
defined in Section 78, as a result of the dissolution or annulment of
the marriage or termination of registered domestic partnership. A
judgment of legal separation that does not terminate the status of
spouses is not a dissolution for purposes of this section.
(b) Subdivision (a) does not cause a nonprobate transfer to fail
in any of the following cases:
(1) The nonprobate transfer is not subject to revocation by the
transferor at the time of the transferor's death.
(2) There is clear and convincing evidence that the transferor
intended to preserve the nonprobate transfer to the former spouse.
(3) A court order that the nonprobate transfer be maintained on
behalf of the former spouse is in effect at the time of the
transferor's death.
(c) Where a nonprobate transfer fails by operation of this
section, the instrument making the nonprobate transfer shall be
treated as it would if the former spouse failed to survive the
transferor.
(d) Nothing in this section affects the rights of a subsequent
purchaser or encumbrancer for value in good faith who relies on the
apparent failure of a nonprobate transfer under this section or who
lacks knowledge of the failure of a nonprobate transfer under this
section.
(e) As used in this section, "nonprobate transfer" means a
provision, other than a provision of a life insurance policy, of
either of the following types:
(1) A provision of a type described in Section 5000.
(2) A provision in an instrument that operates on death, other
than a will, conferring a power of appointment or naming a trustee.
SEC. 84. Section 5042 of the Probate Code is amended to read:
5042. (a) Except as provided in subdivision (b), a joint tenancy
between the decedent and the decedent's former spouse, created before
or during the marriage or registered domestic partnership, is
severed as to the decedent's interest if, at the time of the decedent'
s death, the former spouse is not the decedent's surviving spouse as
defined in Section 78, as a result of the dissolution or annulment of
the marriage or registered domestic partnership. A judgment of legal
separation that does not terminate the status of spouses is not a
dissolution for purposes of this section.
(b) Subdivision (a) does not sever a joint tenancy in either of
the following cases:
(1) The joint tenancy is not subject to severance by the decedent
at the time of the decedent's death.
(2) There is clear and
convincing evidence that the decedent intended to preserve the joint
tenancy in favor of the former spouse.
(c) Nothing in this section affects the rights of a subsequent
purchaser or encumbrancer for value in good faith who relies on an
apparent severance under this section or who lacks knowledge of a
severance under this section.
(d) For purposes of this section, property held in "joint tenancy"
includes property held as community property with right of
survivorship, as described in Section 682.1 of the Civil Code.
SEC. 85. Section 5203 of the Probate Code is amended to read:
5203. (a) Words in substantially the following form in a
signature card, passbook, contract, or instrument evidencing an
account, or words to the same effect, executed before, on, or after
July 1, 1990, create the following accounts:
(1) Joint account: "This account or certificate is owned by the
named parties. Upon the death of any of them, ownership passes to the
survivor(s)."
(2) P.O.D. account with single party: "This account or certificate
is owned by the named party. Upon the death of that party, ownership
passes to the named pay-on-death payee(s)."
(3) P.O.D. account with multiple parties: "This account or
certificate is owned by the named parties. Upon the death of any of
them, ownership passes to the survivor(s). Upon the death of all of
them, ownership passes to the named pay-on-death payee(s)."
(4) Joint account of spouses with right of survivorship: "This
account or certificate is owned by the named parties, who are
spouses, and is presumed to be their community property. Upon the
death of either of them, ownership passes to the survivor."
(5) Community property account of spouses: "This account or
certificate is the community property of the named parties who are
spouses. The ownership during lifetime and after the death of a
spouse is determined by the law applicable to community property
generally and may be affected by a will."
(6) Tenancy in common account: "This account or certificate is
owned by the named parties as tenants in common. Upon the death of
any party, the ownership interest of that party passes to the named
pay-on-death payee(s) of that party or, if none, to the estate of
that party."
(b) Use of the form language provided in this section is not
necessary to create an account that is governed by this part. If the
contract of deposit creates substantially the same relationship
between the parties as an account created using the form language
provided in this section, this part applies to the same extent as if
the form language had been used.
SEC. 86. Section 6122 of the Probate Code is amended to read:
6122. (a) Unless the will expressly provides otherwise, if after
executing a will the testator's marriage is dissolved or annulled,
the dissolution or annulment revokes all of the following:
(1) Any disposition or appointment of property made by the will to
the former spouse.
(2) Any provision of the will conferring a general or special
power of appointment on the former spouse.
(3) Any provision of the will nominating the former spouse as
executor, trustee, conservator, or guardian.
(b) If any disposition or other provision of a will is revoked
solely by this section, it is revived by the testator's remarriage to
the former spouse.
(c) In case of revocation by dissolution or annulment:
(1) Property prevented from passing to a former spouse because of
the revocation passes as if the former spouse failed to survive the
testator.
(2) Other provisions of the will conferring some power or office
on the former spouse shall be interpreted as if the former spouse
failed to survive the testator.
(d) For purposes of this section, dissolution or annulment means
any dissolution or annulment which would exclude the spouse as a
surviving spouse within the meaning of Section 78. A decree of legal
separation which does not terminate the status of spouses is not a
dissolution for purposes of this section.
(e) Except as provided in Section 6122.1, no change of
circumstances other than as described in this section revokes a will.
(f) Subdivisions (a) to (d), inclusive, do not apply to any case
where the final judgment of dissolution or annulment of marriage
occurs before January 1, 1985. That case is governed by the law in
effect prior to January 1, 1985.
SEC. 87. Section 6227 of the Probate Code is amended to read:
6227. (a) If after executing a California statutory will the
testator's marriage is dissolved or annulled, or the testator's
registered domestic partnership is terminated, the dissolution,
annulment, or termination revokes any disposition of property made by
the will to the former spouse and any nomination of the former
spouse as executor, trustee, guardian, or custodian made by the will.
If any disposition or nomination is revoked solely by this section,
it is revived by the testator's remarriage to, or entry into a
subsequent registered domestic partnership with, the former spouse.
(b) In case of revocation by dissolution or annulment:
(1) Property prevented from passing to a former spouse because of
the revocation passes as if the former spouse failed to survive the
testator.
(2) Provisions nominating the former spouse as executor, trustee,
guardian, or custodian shall be interpreted as if the former spouse
failed to survive the testator.
(c) For purposes of this section, dissolution or annulment means
any dissolution or annulment that would exclude the spouse as a
surviving spouse within the meaning of Section 78. A decree of legal
separation which does not terminate the status of spouses is not a
dissolution or annulment for purposes of this section.
(d) This section applies to any California statutory will, without
regard to the time when the will was executed, but this section does
not apply to any case where the final judgment of dissolution or
annulment of marriage occurs before January 1, 1985; and, if the
final judgment of dissolution or annulment of marriage occurs before
January 1, 1985, the case is governed by the law that applied prior
to January 1, 1985.
SEC. 88. Section 6240 of the Probate Code is amended to read:
6240. The following is the California Statutory Will form:
QUESTIONS AND ANSWERS ABOUT THIS CALIFORNIA STATUTORY WILL
The following information, in question and answer form, is not a
part of the California Statutory Will. It is designed to help you
understand about Wills and to decide if this Will meets your needs.
This Will is in a simple form. The complete text of each paragraph of
this Will is printed at the end of the Will.
1. What happens if I die without a Will? If you die without a
Will, what you own (your "assets") in your name alone will be divided
among your spouse, domestic partner, children, or other relatives
according to state law. The court will appoint a relative to collect
and distribute your assets.
2. What can a Will do for me? In a Will you may designate who
will receive your assets at your death. You may designate someone
(called an "executor") to appear before the court, collect your
assets, pay your debts and taxes, and distribute your assets as you
specify. You may nominate someone (called a "guardian") to raise your
children who are under age 18. You may designate someone (called a
"custodian") to manage assets for your children until they reach any
age from 18 to 25.
3. Does a Will avoid probate? No. With or without a Will, assets
in your name alone usually go through the court probate process. The
court's first job is to determine if your Will is valid.
4. What is community property? Can I give away my share in my
Will? If you are married or in a domestic partnership and you or your
spouse earned money during your marriage or domestic partnership
from work and wages, that money (and the assets bought with it) is
community property. Your Will can only give away your one-half of
community property. Your Will cannot give away your spouse's one-half
of community property.
5. Does my Will give away all of my assets? Do all assets go
through probate? No. Money in a joint tenancy bank account
automatically belongs to the other named owner without probate. If
your spouse, domestic partner, or child is on the deed to your house
as a joint tenant, the house automatically passes to him or her. Life
insurance and retirement plan benefits may pass directly to the
named beneficiary. A Will does not necessarily control how these
types of "nonprobate" assets pass at your death.
6. Are there different kinds of Wills? Yes. There are handwritten
Wills, typewritten Wills, attorney-prepared Wills, and statutory
Wills. All are valid if done precisely as the law requires. You
should see a lawyer if you do not want to use this Statutory Will or
if you do not understand this form.
7. Who may use this Will? This Will is based on California law.
It is designed only for California residents. You may use this form
if you are single, married, a member of a domestic partnership, or
divorced. You must be age 18 or older and of sound mind.
8. Are there any reasons why I should NOT use this Statutory Will?
Yes. This is a simple Will. It is not designed to reduce death
taxes or other taxes. Talk to a lawyer to do tax planning, especially
if (i) your assets will be worth more than $600,000 or the current
amount excluded from estate tax under federal law at your death, (ii)
you own business-related assets, (iii) you want to create a trust
fund for your children's education or other purposes, (iv) you own
assets in some other state, (v) you want to disinherit your spouse,
domestic partner, or descendants, or (vi) you have valuable interests
in pension or profit-sharing plans. You should talk to a lawyer who
knows about estate planning if this Will does not meet your needs.
This Will treats most adopted children like natural children. You
should talk to a lawyer if you have stepchildren or foster children
whom you have not adopted.
9. May I add or cross out any words on this Will? No. If you do,
the Will may be invalid or the court may ignore the crossed out or
added words. You may only fill in the blanks. You may amend this Will
by a separate document (called a codicil). Talk to a lawyer if you
want to do something with your assets which is not allowed in this
form.
10. May I change my Will? Yes. A Will is not effective until you
die. You may make and sign a new Will. You may change your Will at
any time, but only by an amendment (called a codicil). You can give
away or sell your assets before your death. Your Will only acts on
what you own at death.
11. Where should I keep my Will? After you and the witnesses sign
the Will, keep your Will in your safe deposit box or other safe
place. You should tell trusted family members where your Will is
kept.
12. When should I change my Will? You should make and sign a new
Will if you marry, divorce, or terminate your domestic partnership
after you sign this Will. Divorce, annulment, or termination of a
domestic partnership automatically cancels all property stated to
pass to a former spouse or domestic partner under this Will, and
revokes the designation of a former spouse or domestic partner as
executor, custodian, or guardian. You should sign a new Will when you
have more children, or if your spouse or a child dies, or a domestic
partner dies or marries. You may want to change your Will if there
is a large change in the value of your assets. You may also want to
change your Will if you enter a domestic partnership or your domestic
partnership has been terminated after you sign this Will.
13. What can I do if I do not understand something in this Will?
If there is anything in this Will you do not understand, ask a lawyer
to explain it to you.
14. What is an executor? An "executor" is the person you name to
collect your assets, pay your debts and taxes, and distribute your
assets as the court directs. It may be a person or it may be a
qualified bank or trust company.
15. Should I require a bond? You may require that an executor
post a "bond." A bond is a form of insurance to replace assets that
may be mismanaged or stolen by the executor. The cost of the bond is
paid from the estate's assets.
16. What is a guardian? Do I need to designate one? If you have
children under age 18, you should designate a guardian of their
"persons" to raise them.
17. What is a custodian? Do I need to designate one? A "custodian"
is a person you may designate to manage assets for someone
(including a child) who is under the age of 25 and who receives
assets under your Will. The custodian manages the assets and pays as
much as the custodian determines is proper for health, support,
maintenance, and education. The custodian delivers what is left to
the person when the person reaches the age you choose (from 18 to
25). No bond is required of a custodian.
18. Should I ask people if they are willing to serve before I
designate them as executor, guardian, or custodian? Probably yes.
Some people and banks and trust companies may not consent to serve or
may not be qualified to act.
19. What happens if I make a gift in this Will to someone and that
person dies before I do? A person must survive you by 120 hours to
take a gift under this Will. If that person does not, then the gift
fails and goes with the rest of your assets. If the person who does
not survive you is a relative of yours or your spouse, then certain
assets may go to the relative's descendants.
20. What is a trust? There are many kinds of trusts, including
trusts created by Wills (called "testamentary trusts") and trusts
created during your lifetime (called "revocable living trusts"). Both
kinds of trusts are long-term arrangements in which a manager
(called a "trustee") invests and manages assets for someone (called a
"beneficiary") on the terms you specify. Trusts are too complicated
to be used in this Statutory Will. You should see a lawyer if you
want to create a trust.
21. What is a domestic partner? You have a domestic partner if
you have met certain legal requirements and filed a form entitled
"Declaration of Domestic Partnership" with the Secretary of State.
Notwithstanding Section 299.6 of the Family Code, if you have not
filed a Declaration of Domestic Partnership with the Secretary of
State, you do not meet the required definition and should not use the
section of the Statutory Will form that refers to domestic partners
even if you have registered your domestic partnership with another
governmental entity. If you are unsure if you have a domestic partner
or if your domestic partnership meets the required definition,
please contact the Secretary of State's office.
INSTRUCTIONS
1. READ THE WILL. Read the whole Will first. If you do not
understand something, ask a lawyer to explain it to you.
2. FILL IN THE BLANKS. Fill in the blanks. Follow the instructions
in the form carefully. Do not add any words to the Will (except for
filling in blanks) or cross out any words.
3. DATE AND SIGN THE WILL AND HAVE TWO WITNESSES SIGN IT. Date and
sign the Will and have two witnesses sign it. You and the witnesses
should read and follow the Notice to Witnesses found at the end of
this Will.
*You do not need to have this document notarized. Notarization
will not fulfill the witness requirement. GRAPHIC INSERT HERE: SEE
PRINTED VERSION OF THE BILL]
SEC. 89. Section 13500 of the Probate Code is amended to read:
13500. Except as provided in this chapter, when a spouse dies
intestate leaving property that passes to the surviving spouse under
Section 6401, or dies testate and by his or her will devises all or a
part of his or her property to the surviving spouse, the property
passes to the survivor subject to the provisions of Chapter 2
(commencing with Section 13540) and Chapter 3 (commencing with
Section 13550), and no administration is necessary.
SEC. 90. Section 13600 of the Probate Code is amended to read:
13600. (a) At any time after a spouse dies, the surviving spouse
or the guardian or conservator of the estate of the surviving spouse
may, without procuring letters of administration or awaiting probate
of the will, collect salary or other compensation owed by an employer
for personal services of the deceased spouse, including compensation
for unused vacation, not in excess of fifteen thousand dollars
($15,000) net.
(b) Not more than fifteen thousand dollars ($15,000) net in the
aggregate may be collected by or for the surviving spouse under this
chapter from all of the employers of the decedent.
(c) For the purposes of this chapter, a guardian or conservator of
the estate of the surviving spouse may act on behalf of the
surviving spouse without authorization or approval of the court in
which the guardianship or conservatorship proceeding is pending.
(d) The fifteen-thousand-dollar ($15,000) net limitation set forth
in subdivisions (a) and (b) does not apply to the surviving spouse
or the guardian or conservator of the estate of the surviving spouse
of a firefighter or peace officer described in subdivision (a) of
Section 22820 of the Government Code.
(e) On January 1, 2003, and on January 1 of each year thereafter,
the maximum net amount of salary or compensation payable under
subdivisions (a) and (b) to the surviving spouse or the guardian or
conservator of the estate of the surviving spouse may be adjusted to
reflect any increase in the cost of living occurring after January 1
of the immediately preceding year. The United States city average of
the "Consumer Price Index for All Urban Consumers," as published by
the United States Bureau of Labor Statistics, shall be used as the
basis for determining the changes in the cost of living. The
cost-of-living increase shall equal or exceed 1 percent before any
adjustment is made. The net amount payable may not be decreased as a
result of the cost-of-living adjustment.
SEC. 91. Section 11005 is added to the Public Contract Code, to
read:
11005. "Spouse," as used in this code, includes "registered
domestic partner," as required by Section 297.5 of the Family Code.
SEC. 92. Section 12.2 is added to the Public Resources Code, to
read:
12.2. "Spouse" includes "registered domestic partner," as
required by Section 297.5 of the Family Code.
SEC. 93. Section 12.2 is added to the Public Utilities Code, to
read:
12.2. "Spouse" includes "registered domestic partner," as
required by Section 297.5 of the Family Code.
SEC. 94. Section 12.2 is added to the Revenue and Taxation Code,
to read:
12.2. "Spouse" includes "registered domestic partner," as
required by Section 297.5 of the Family Code.
SEC. 95. Section 17021 of the Revenue and Taxation Code is amended
to read:
17021. As used in this part, if the spouses therein referred to
are divorced or their registered domestic partnership has been
terminated, wherever appropriate to the meaning of this part, the
term "spouse" shall be read "former spouse."
SEC. 96. Section 17039 of the Revenue and Taxation Code is amended
to read:
17039. (a) Notwithstanding any provision in this part to the
contrary, for the purposes of computing tax credits, the term "net
tax" means the tax imposed under either Section 17041 or 17048 plus
the tax imposed under Section 17504 (relating to lump-sum
distributions) less the credits allowed by Section 17054 (relating to
personal exemption credits) and any amount imposed under paragraph
(1) of subdivision (d) and paragraph (1) of subdivision (e) of
Section 17560. Notwithstanding the preceding sentence, the "net tax"
shall not be less than the tax imposed under Section 17504 (relating
to the separate tax on lump-sum distributions), if any. Credits shall
be allowed against "net tax" in the following order:
(1) Credits that do not contain carryover or refundable
provisions, except those described in paragraphs (4) and (5).
(2) Credits that contain carryover provisions but do not contain
refundable provisions, except for those that are allowed to reduce
"net tax" below the tentative minimum tax, as defined by Section
17062.
(3) Credits that contain both carryover and refundable provisions.
(4) The minimum tax credit allowed by Section 17063 (relating to
the alternative minimum tax).
(5) Credits that are allowed to reduce "net tax" below the
tentative minimum tax, as defined by Section 17062.
(6) Credits for taxes paid to other states allowed by Chapter 12
(commencing with Section 18001).
(7) Credits that contain refundable provisions but do not contain
carryover provisions.
The order within each paragraph shall be determined by the
Franchise Tax Board.
(b) Notwithstanding the provisions of Sections 17061 (relating to
refunds pursuant to the Unemployment Insurance Code) and 19002
(relating to tax withholding), the credits provided in those sections
shall be allowed in the order provided in paragraph (6) of
subdivision (a).
(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:
(A) The credit allowed by Section 17052.2 (relating to teacher
retention tax credit).
(B) The credit allowed by former Section 17052.4 (relating to
solar energy).
(C) The credit allowed by former Section 17052.5 (relating to
solar energy, repealed on January 1, 1987).
(D) The credit allowed by former Section 17052.5 (relating to
solar energy, repealed on December 1, 1994).
(E) The credit allowed by Section 17052.12 (relating to research
expenses).
(F) The credit allowed by former Section 17052.13 (relating to
sales and use tax credit).
(G) The credit allowed by former Section 17052.15 (relating to Los
Angeles Revitalization Zone sales tax credit).
(H) The credit allowed by Section 17052.25 (relating to the
adoption costs credit).
(I) The credit allowed by Section 17053.5 (relating to the renter'
s credit).
(J) The credit allowed by former Section 17053.8 (relating to
enterprise zone hiring credit).
(K) The credit allowed by former Section 17053.10 (relating to Los
Angeles Revitalization Zone hiring credit).
(L) The credit allowed by former Section 17053.11 (relating to
program area hiring credit).
(M) For each taxable year beginning on or after January 1, 1994,
the credit allowed by former Section 17053.17 (relating to Los
Angeles Revitalization Zone hiring credit).
(N) The credit allowed by Section 17053.33 (relating to targeted
tax area sales or use tax credit).
(O) The credit allowed by Section 17053.34 (relating to targeted
tax area hiring credit).
(P) The credit allowed by Section 17053.49 (relating to qualified
property).
(Q) The credit allowed by Section 17053.70 (relating to enterprise
zone sales or use tax credit).
®) The credit allowed by Section 17053.74 (relating to enterprise
zone hiring credit).
(S) The credit allowed by Section 17054 (relating to credits for
personal exemption).
(T) The credit allowed by Section 17054.5 (relating to the credits
for a qualified joint custody head of household and a qualified
taxpayer with a dependent parent).
(U) The credit allowed by Section 17054.7 (relating to the credit
for a senior head of household).
(V) The credit allowed by former Section 17057 (relating to
clinical testing expenses).
(W) The credit allowed by Section 17058 (relating to low-income
housing).
(X) For taxable years beginning on or after January 1, 2014, the
credit allowed by Section 17059.2 (relating to GO-Biz California
Competes Credit).
(Y) The credit allowed by Section 17061 (relating to refunds
pursuant to the Unemployment Insurance Code).
(Z) Credits for taxes paid to other states allowed by Chapter 12
(commencing with Section 18001).
(AA) The credit allowed by Section 19002 (relating to tax
withholding).
(AB) For taxable years beginning on or after January 1, 2014, the
credit allowed by Section 17053.86 (relating to the College Access
Tax Credit Fund).
(AC) For taxable years beginning on or after January 1, 2017, the
credit allowed by Section 17053.87 (relating to the College Access
Tax Credit Fund).
(2) Any credit that is partially or totally denied under paragraph
(1) shall be allowed to be carried over and applied to the net tax
in succeeding taxable years, if the provisions relating to that
credit include a provision to allow a carryover when that credit
exceeds the net tax.
(d) Unless otherwise provided, any remaining carryover of a credit
allowed by a section that has been repealed or made inoperative
shall continue to be allowed to be carried over under the provisions
of that section as it read immediately prior to being repealed or
becoming inoperative.
(e) (1) Unless otherwise provided, if two or more taxpayers (other
than spouses) share in costs that would be eligible for a tax credit
allowed under this part, each taxpayer shall be eligible to receive
the tax credit in proportion to his or her respective share of the
costs paid or incurred.
(2) In the case of a partnership, the credit shall be allocated
among the partners pursuant to a written partnership agreement in
accordance with Section 704 of the Internal Revenue Code, relating to
partner's distributive share.
(3) In the case of spouses who file separate returns, the credit
may be taken by either or equally divided between them.
(f) Unless otherwise provided, in the case of a partnership, any
credit allowed by this part shall be computed at the partnership
level, and any limitation on the expenses qualifying for the credit
or limitation upon the amount of the credit shall be applied to the
partnership and to each partner.
(g) (1) With respect to any taxpayer that directly or indirectly
owns an interest in a business entity that is disregarded for tax
purposes pursuant to Section 23038 and any regulations thereunder,
the amount of any credit or credit carryforward allowable for any
taxable year attributable to the disregarded business entity shall be
limited in accordance with paragraphs (2) and (3).
(2) The amount of any credit otherwise allowed under this part,
including any credit carryover from prior years, that may be applied
to reduce the taxpayer's "net tax," as defined in subdivision (a),
for the taxable year shall be limited to an amount equal to the
excess of the taxpayer's regular tax (as defined in Section 17062),
determined by including income attributable to the disregarded
business entity that
generated the credit or credit carryover, over the taxpayer's regular
tax (as defined in Section 17062), determined by excluding the
income attributable to that disregarded business entity. No credit
shall be allowed if the taxpayer's regular tax (as defined in Section
17062), determined by including the income attributable to the
disregarded business entity, is less than the taxpayer's regular tax
(as defined in Section 17062), determined by excluding the income
attributable to the disregarded business entity.
(3) If the amount of a credit allowed pursuant to the section
establishing the credit exceeds the amount allowable under this
subdivision in any taxable year, the excess amount may be carried
over to subsequent taxable years pursuant to subdivisions (c) and
(d).
(h) (1) Unless otherwise specifically provided, in the case of a
taxpayer that is a partner or shareholder of an eligible pass-thru
entity described in paragraph (2), any credit passed through to the
taxpayer in the taxpayer's first taxable year beginning on or after
the date the credit is no longer operative may be claimed by the
taxpayer in that taxable year, notwithstanding the repeal of the
statute authorizing the credit prior to the close of that taxable
year.
(2) For purposes of this subdivision, "eligible pass-thru entity"
means any partnership or "S" corporation that files its return on a
fiscal year basis pursuant to Section 18566, and that is entitled to
a credit pursuant to this part for the taxable year that begins
during the last year the credit is operative.
(3) This subdivision shall apply to credits that become
inoperative on or after the operative date of the act adding this
subdivision.
SEC. 97. Section 17045 of the Revenue and Taxation Code is amended
to read:
17045. In the case of a joint return of spouses under Section
18521, the tax imposed by Section 17041 shall be twice the tax which
would be imposed if the taxable income were cut in one-half.
For purposes of this section, a return of a surviving spouse (as
defined in Section 17046) shall be treated as a joint return of
spouses.
SEC. 98. Section 17053.5 of the Revenue and Taxation Code is
amended to read:
17053.5. (a) (1) For a qualified renter, there shall be allowed a
credit against his or her "net tax," as defined in Section 17039.
The amount of the credit shall be as follows:
(A) For spouses filing joint returns, heads of household, and
surviving spouses, as defined in Section 17046, the credit shall be
equal to one hundred twenty dollars ($120) if adjusted gross income
is fifty thousand dollars ($50,000) or less.
(B) For other individuals, the credit shall be equal to sixty
dollars ($60) if adjusted gross income is twenty-five thousand
dollars ($25,000) or less.
(2) Except as provided in subdivision (b), spouses shall receive
but one credit under this section. If the spouses file separate
returns, the credit may be taken by either or equally divided between
them, except as follows:
(A) If one spouse was a resident for the entire taxable year and
the other spouse was a nonresident for part or all of the taxable
year, the resident spouse shall be allowed one-half the credit
allowed to married persons and the nonresident spouse shall be
permitted one-half the credit allowed to married persons, prorated as
provided in subdivision (e).
(B) If both spouses were nonresidents for part of the taxable
year, the credit allowed to married persons shall be divided equally
between them subject to the proration provided in subdivision (e).
(b) For spouses, if each spouse maintained a separate place of
residence and resided in this state during the entire taxable year,
each spouse will be allowed one-half the full credit allowed to
married persons provided in subdivision (a).
(c) For purposes of this section, a "qualified renter" means an
individual who satisfies both of the following:
(1) Was a resident of this state, as defined in Section 17014.
(2) Rented and occupied premises in this state which constituted
his or her principal place of residence during at least 50 percent of
the taxable year.
(d) "Qualified renter" does not include any of the following:
(1) An individual who for more than 50 percent of the taxable year
rented and occupied premises that were exempt from property taxes,
except that an individual, otherwise qualified, is deemed a qualified
renter if he or she or his or her landlord pays possessory interest
taxes, or the owner of those premises makes payments in lieu of
property taxes that are substantially equivalent to property taxes
paid on properties of comparable market value.
(2) An individual whose principal place of residence for more than
50 percent of the taxable year is with another person who claimed
that individual as a dependent for income tax purposes.
(3) An individual who has been granted or whose spouse has been
granted the homeowners' property tax exemption during the taxable
year. This paragraph does not apply to an individual whose spouse has
been granted the homeowners' property tax exemption if each spouse
maintained a separate residence for the entire taxable year.
(e) An otherwise qualified renter who is a nonresident for any
portion of the taxable year shall claim the credits set forth in
subdivision (a) at the rate of one-twelfth of those credits for each
full month that individual resided within this state during the
taxable year.
(f) A person claiming the credit provided in this section shall,
as part of that claim, and under penalty of perjury, furnish that
information as the Franchise Tax Board prescribes on a form supplied
by the board.
(g) The credit provided in this section shall be claimed on
returns in the form as the Franchise Tax Board may from time to time
prescribe.
(h) For purposes of this section, "premises" means a house or a
dwelling unit used to provide living accommodations in a building or
structure and the land incidental thereto, but does not include land
only, unless the dwelling unit is a mobilehome. The credit is not
allowed for any taxable year for the rental of land upon which a
mobilehome is located if the mobilehome has been granted a homeowners'
exemption under Section 218 in that year.
(i) This section shall become operative on January 1, 1998, and
applies to any taxable year beginning on or after January 1, 1998.
(j) For each taxable year beginning on or after January 1, 1999,
the Franchise Tax Board shall recompute the adjusted gross income
amounts set forth in subdivision (a). The computation shall be made
as follows:
(1) The Department of Industrial Relations shall transmit annually
to the Franchise Tax Board the percentage change in the California
Consumer Price Index for all items from June of the prior calendar
year to June of the current year, no later than August 1 of the
current calendar year.
(2) The Franchise Tax Board shall compute an inflation adjustment
factor by adding 100 percent to the portion of the percentage change
figure which is furnished pursuant to paragraph (1) and dividing the
result by 100.
(3) The Franchise Tax Board shall multiply the amount in
subparagraph (B) of paragraph (1) of subdivision (d) for the
preceding taxable year by the inflation adjustment factor determined
in paragraph (2), and round off the resulting products to the nearest
one dollar ($1).
(4) In computing the amounts pursuant to this subdivision, the
amounts provided in subparagraph (A) of paragraph (1) of subdivision
(a) shall be twice the amount provided in subparagraph (B) of
paragraph (1) of subdivision (a).
SEC. 99. Section 17054 of the Revenue and Taxation Code is amended
to read:
17054. In the case of individuals, the following credits for
personal exemption may be deducted from the tax imposed under Section
17041 or 17048, less any increases imposed under paragraph (1) of
subdivision (d) or paragraph (1) of subdivision (e), or both, of
Section 17560.
(a) In the case of a single individual, a head of household, or a
spouse making a separate return, a credit of fifty-two dollars ($52).
(b) In the case of a surviving spouse (as defined in Section
17046), or spouses making a joint return, a credit of one hundred
four dollars ($104). If one spouse was a resident for the entire
taxable year and the other spouse was a nonresident for all or any
portion of the taxable year, the personal exemption shall be divided
equally.
(c) In addition to any other credit provided in this section, in
the case of an individual who is 65 years of age or over by the end
of the taxable year, a credit of fifty-two dollars ($52).
(d) (1) A credit of two hundred twenty-seven dollars ($227) for
each dependent (as defined in Section 17056) for whom an exemption is
allowable under Section 151(c) of the Internal Revenue Code,
relating to additional exemption for dependents. The credit allowed
under this subdivision for taxable years beginning on or after
January 1, 1999, shall not be adjusted pursuant to subdivision (i)
for any taxable year beginning before January 1, 2000.
(2) (A) For taxable years beginning on or after January 1, 2015, a
credit shall not be allowed under paragraph (1) with respect to any
individual unless the identification number, as defined in Section
6109 of the Internal Revenue Code, of that individual is included on
the return claiming the credit.
(B) A disallowance of a credit due to the omission of a correct
identification number required under this paragraph, may be assessed
by the Franchise Tax Board in the same manner as is provided by
Section 19051 in the case of a mathematical error appearing on the
return. A claimant shall have the right to claim a credit or refund
of adjusted amounts within the period provided in Section 19306,
19307, 19308, or 19311, whichever period expires later.
(3) (A) For taxable years beginning on or after January 1, 2009,
the credit allowed under paragraph (1) for each dependent shall be
equal to the credit allowed under subdivision (a). This subparagraph
shall cease to be operative for taxable years beginning on or after
January 1, 2011, unless the Director of Finance makes the
notification pursuant to Section 99040 of the Government Code, in
which case this subparagraph shall cease to be operative for taxable
years beginning on or after January 1, 2013.
(B) For taxable years that subparagraph (A) ceases to be
operative, the credit allowed under paragraph (1) for each dependent
shall be equal to the amount that would be allowed if subparagraph
(A) had never been operative.
(e) A credit for personal exemption of fifty-two dollars ($52) for
the taxpayer if he or she is blind at the end of his or her taxable
year.
(f) A credit for personal exemption of fifty-two dollars ($52) for
the spouse of the taxpayer if a separate return is made by the
taxpayer, and if the spouse is blind and, for the calendar year in
which the taxable year of the taxpayer begins, has no gross income
and is not the dependent of another taxpayer.
(g) For the purposes of this section, an individual is blind only
if either (1) his or her central visual acuity does not exceed 20/200
in the better eye with correcting lenses, or (2) his or her visual
acuity is greater than 20/200 but is accompanied by a limitation in
the fields of vision such that the widest diameter of the visual
field subtends an angle no greater than 20 degrees.
(h) In the case of an individual with respect to whom a credit
under this section is allowable to another taxpayer for a taxable
year beginning in the calendar year in which the individual's taxable
year begins, the credit amount applicable to that individual for
that individual's taxable year is zero.
(i) For each taxable year beginning on or after January 1, 1989,
the Franchise Tax Board shall compute the credits prescribed in this
section. That computation shall be made as follows:
(1) The Department of Industrial Relations shall transmit annually
to the Franchise Tax Board the percentage change in the California
Consumer Price Index for all items from June of the prior calendar
year to June of the current calendar year, no later than August 1 of
the current calendar year.
(2) The Franchise Tax Board shall add 100 percent to the
percentage change figure which is furnished to them pursuant to
paragraph (1), and divide the result by 100.
(3) The Franchise Tax Board shall multiply the immediately
preceding taxable year credits by the inflation adjustment factor
determined in paragraph (2), and round off the resulting products to
the nearest one dollar ($1).
(4) In computing the credits pursuant to this subdivision, the
credit provided in subdivision (b) shall be twice the credit provided
in subdivision (a).
SEC. 100. Section 17077 of the Revenue and Taxation Code is
amended to read:
17077. Section 68 of the Internal Revenue Code, relating to
overall limitation on itemized deductions, shall apply, except as
otherwise provided.
(a) "Six percent" shall be substituted for "3 percent" in Section
68(a)(1) of the Internal Revenue Code.
(b) Section 68(b)(1) of the Internal Revenue Code shall not apply
and in lieu thereof the term "applicable amount" in each place it
appears in Section 68(a) of the Internal Revenue Code means one
hundred thousand dollars ($100,000) in the case of a single
individual, or a spouse filing a separate return, one hundred fifty
thousand dollars ($150,000) in the case of a head of household, and
two hundred thousand dollars ($200,000) in the case of a surviving
spouse, or spouses filing a joint return.
(c) Section 68(b)(2) of the Internal Revenue Code, relating to
inflation adjustments, shall not apply. However, for any taxable year
beginning on or after January 1, 1992, the applicable amounts
specified in subdivision (b) shall be recomputed annually in the same
manner as the recomputation of income tax brackets under subdivision
(h) of Section 17041.
(d) Section 68(f) of the Internal Revenue Code, relating to
phaseout of limitation, shall not apply.
(e) Section 68(g) of the Internal Revenue Code, relating to
termination, shall not apply.
SEC. 101. Section 17555 of the Revenue and Taxation Code is
amended to read:
17555. In any case where spouses file separate returns, the
Franchise Tax Board may distribute, apportion, or allocate gross
income between the spouses, if it is determined that such
distribution, apportionment, or allocation is necessary in order to
reflect the proper income of the spouses.
SEC. 102. Section 18501 of the Revenue and Taxation Code is
amended to read:
18501. (a) Every individual taxable under Part 10 (commencing
with Section 17001) shall make a return to the Franchise Tax Board,
stating specifically the items of the individual's gross income from
all sources and the deductions and credits allowable, if the
individual has any of the following for the taxable year:
(1) An adjusted gross income from all sources in excess of eight
thousand dollars ($8,000), if single.
(2) An adjusted gross income from all sources in excess of sixteen
thousand dollars ($16,000), if married or in a registered domestic
partnership.
(3) A gross income from all sources in excess of ten thousand
dollars ($10,000), if single, and twenty thousand dollars ($20,000),
if married or in a registered domestic partnership, regardless of the
amount of adjusted gross income.
(4) In the case of an individual described in Section 63(c)(5) of
the Internal Revenue Code, relating to limitation on basic standard
deduction in the case of certain dependents, a gross income from all
sources that exceeds the amount of the standard deduction allowed
under that section.
(b) If spouses have for the taxable year an adjusted gross income
from all sources in excess of sixteen thousand dollars ($16,000) or a
gross income from all sources in excess of twenty thousand dollars
($20,000), each spouse shall make a return or the income of each
shall be included on a single joint return as otherwise provided in
this article.
(c) For any individual described in paragraph (1) or (2), the
Franchise Tax Board shall recompute the amounts provided in
subdivision (b) and paragraphs (1) to (3), inclusive, of subdivision
(a) as follows:
(1) For any individual eligible to claim the credit described in
subdivision (c) of Section 17054, the Franchise Tax Board shall
increase the income amounts described in subdivision (b) and
paragraphs (1) to (3), inclusive, of subdivision (a), as adjusted by
subdivision (d), by the quotient provided by dividing the credit
described in subdivision (c) of Section 17054, as adjusted in
subdivision (i) of Section 17054, by 2 percent.
(2) For any individual or spouses eligible to claim the credit
described in subdivision (d) of Section 17054, the Franchise Tax
Board shall increase the income amounts described in subdivision (b)
or paragraphs (1) to (3), inclusive, of subdivision (a), as adjusted
by subdivision (d), by the quotient provided by dividing each credit
described in subdivision (d) of Section 17054, as adjusted in
subdivision (i) of Section 17054, by the following:
(A) If the individual or spouses are not eligible to claim the
credit allowed in subdivision (c) of Section 17054, 3 percent for the
first dependent credit and 4 percent for the second dependent
credit, if any.
(B) If the individual or spouses are eligible to claim the credit
allowed in subdivision (c) of Section 17054, 4 percent for the first
dependent credit and 5 percent for the second dependent credit, if
any.
(d) For each taxable year beginning on or after January 1, 1996,
the Franchise Tax Board shall recompute the income amounts prescribed
in paragraphs (1) to (3), inclusive, of subdivision (a) and in
subdivision (b), as follows:
(1) The Department of Industrial Relations shall transmit annually
to the Franchise Tax Board the percentage change in the California
Consumer Price Index for all items from June of the prior calendar
year to June of the current calendar year, no later than August 1 of
the current calendar year.
(2) The Franchise Tax Board shall do both of the following:
(A) Compute an inflation adjustment factor by adding 100 percent
to the percentage change figure that is furnished pursuant to
paragraph (1) and dividing the result by 100.
(B) Multiply the income amounts for the preceding taxable year by
the inflation adjustment factor determined in subparagraph (A) and
round off the resulting products to the nearest one dollar ($1).
(e) The changes to subdivision (c) made by the act adding this
subdivision shall apply to each taxable year beginning on or after
January 1, 1999.
SEC. 103. Section 18522 of the Revenue and Taxation Code is
amended to read:
18522. If an individual has filed a separate return for a taxable
year for which a joint return could have been made by him or her and
his or her spouse under Section 18521, and the time prescribed for
filing the return for that taxable year has expired, that individual
and his or her spouse may nevertheless make a joint return for that
taxable year, provided a joint federal income tax return is made
under the provisions of Section 6013(b) of the Internal Revenue Code.
A joint return filed by the spouses in that case shall constitute
the return of the spouses for that taxable year, and all payments,
credits, refunds, or other repayments made or allowed with respect to
the separate return of either spouse for that taxable year shall be
taken into account in determining the extent to which the tax based
upon the joint return has been paid.
SEC. 104. Section 18530 of the Revenue and Taxation Code is
amended to read:
18530. Where the amount shown as the tax by the spouses on a
joint return made under Section 18522 exceeds the aggregate of the
amounts shown as the tax upon the separate return of each spouse,
each of the following shall apply:
(a) If any part of the excess is attributable to negligence or
intentional disregard of rules and regulations (but without intent to
defraud) at the time of the making of the separate return, then 20
percent of the total amount of the excess shall be assessed,
collected, and paid, in lieu of the 20-percent addition to the tax
provided in subdivision (a) of Section 19164.
(b) If any part of the excess is attributable to fraud with intent
to evade tax at the time of the making of the separate return, then
75 percent of the total amount of the excess shall be assessed,
collected, and paid, in lieu of the 75-percent addition to the tax
provided in subdivision (b) of Section 19164.
SEC. 105. Section 18531.5 of the Revenue and Taxation Code is
amended to read:
18531.5. For purposes of Section 443 of the Internal Revenue
Code, where the spouses have different taxable years because of the
death of either spouse, the joint return shall be treated as if the
taxable years of both spouses ended on the date of the closing of the
surviving spouse's taxable year.
SEC. 106. Section 18532 of the Revenue and Taxation Code is
amended to read:
18532. For the purposes of this article, each of the following
shall apply:
(a) The status as spouses of two individuals having taxable years
beginning on the same day shall be determined as follows:
(1) If both have the same taxable year, then as of the close of
that year.
(2) If one dies before the close of the taxable year of the other,
then as of the time of the death.
(b) An individual who is legally separated from his or her spouse
under a decree of divorce, termination of registered domestic
partnership, or of separate maintenance shall not be considered as
married or in a registered domestic partnership.
(c) If a joint return is made, the tax shall be computed on the
aggregate income and the liability with respect to the tax shall be
joint and several.
SEC. 107. Section 19006 of the Revenue and Taxation Code is
amended to read:
19006. (a) The spouse who controls the disposition of or who
receives or spends community income as well as the spouse who is
taxable on the income is liable for the payment of the taxes imposed
by Part 10 (commencing with Section 17001) on that income.
(b) Whenever a joint return is filed by spouses, the liability for
the tax on the aggregate income is joint and several. The liability
may be revised by a court in a proceeding for dissolution of the
marriage or for termination of the registered domestic partnership of
the spouses, provided:
(1) The order revising tax liability may not relieve a spouse of
tax liability on income earned by or subject to the exclusive
management and control of the spouse. The liability of the spouse for
the tax, penalties, and interest due for the taxable year shall be
in the same ratio to total tax, penalties, and interest due for the
taxable year as the income earned by or subject to the management and
control of the spouse is to total gross income reportable on the
return.
(2) The order revising tax liability:
(A) Must separately state the income tax liabilities for the
taxable years for which revision of tax liability is granted.
(B) Shall not revise a tax liability that has been fully paid
prior to the effective date of the order; however, any unpaid amount
may be revised.
(C) Shall become effective when the Franchise Tax Board is served
with or acknowledges receipt of the order.
(D) Shall not be effective if the gross income reportable on the
return exceeds one hundred fifty thousand dollars ($150,000) or the
amount of tax liability the spouse is relieved of exceeds seven
thousand five hundred dollars ($7,500), unless a tax revision
clearance certificate is obtained from the Franchise Tax Board and
filed with the court.
(c) Notwithstanding subdivisions (a) and (b), whenever a joint
return is filed by spouses and the tax liability is not fully paid,
that liability, including interest and penalties, may be revised by
the Franchise Tax Board as to one spouse.
(1) However, the liability shall not be revised:
(A) To relieve a spouse of tax liability on income earned by or
subject to the exclusive management and control of the spouse. The
liability of the spouse for the tax, penalties, and interest due for
the taxable year shall be in the same ratio to total tax, penalties,
and interest due for the taxable year as the income earned by or
subject to the management and control of the spouse is to total gross
income reportable on the return.
(B) To relieve a spouse of liability below the amount actually
paid on the liability prior to the granting of relief, including
credit from any other taxable year available for application to the
liability.
(2) The liability may be revised only if the spouse whose
liability is to be revised establishes that he or she did not know
of, and had no reason to know of, the nonpayment at the time the
return was filed. For purposes of this paragraph, "reason to know"
means whether or not a reasonably prudent person would have had
reason to know of the nonpayment.
(3) For purposes of this section, the determination of the spouse
to whom items of gross income are attributable shall be made without
regard to community property laws.
(4) The determination of the Franchise Tax Board as to whether the
liability is to be revised as to one spouse shall be made not less
than 30 days after notification of the other spouse and shall be
based upon whether, under all of the facts and circumstances
surrounding the nonpayment, it would be inequitable to hold the
spouse requesting revision liable for the nonpayment. Any action
taken under this section shall be treated as though it were action on
a protest taken under Section 19044 and shall become final upon the
expiration of 30 days from the date that notice of the action is
mailed to both spouses, unless, within that 30-day period, one or
both spouses appeal the determination to the board as provided in
Section 19045.
(5) This subdivision shall apply to all taxable years subject to
the provisions of this part, but shall not apply to any taxable year
which has been closed by a statute of limitations, res judicata, or
otherwise.
SEC. 108. Section 19035 of the Revenue and Taxation Code is
amended to read:
19035. In the case of a joint return filed by spouses, the notice
of proposed deficiency assessment may be a single joint notice,
except that if the Franchise Tax Board is notified by either spouse
that separate residences have been established, it shall mail to each
spouse, in lieu of the single joint notice, duplicate originals of
the joint notice.
SEC. 109. Section 19107 of the Revenue and Taxation Code is
amended to read:
19107. Where an overpayment is made by any individual for any
year, and a deficiency is owing from the spouse of the taxpayer for
the same year, and both spouses notify the Franchise Tax Board in
writing prior to the expiration of the time within which credit for
the overpayment may be allowed that the overpayment may be credited
against the deficiency, no interest shall be assessed on that portion
of the deficiency as is extinguished by the credit for the period of
time subsequent to the date the overpayment was made.
SEC. 110. Section 19110 of the Revenue and Taxation Code is
amended to read:
19110. (a) When the correction of an erroneous inclusion or
deduction of an item or items in the computation of income of a
trust, estate, parent, or spouse for any year results in an
overpayment for that year by the trust, estate, parent, or spouse,
and also results in a deficiency for the same year for a grantor of
the trust or beneficiary of the estate or trust, or child of the
parent, or spouse of the child, or the spouse of the spouse, the
overpayment, if the period within which credit for the overpayment
may be allowed has not expired, shall be credited on the deficiency,
if the period within which the deficiency may be proposed has not
expired, and the balance, if any, shall be credited or refunded. No
interest shall be assessed on the portion of the deficiency as is
extinguished by the credit for the period of time subsequent to the
date the overpayment was made.
(b) When the correction of an erroneous inclusion or deduction of
an item or items in the computation of income of a grantor of a
trust, beneficiary of an estate or trust, a child, or spouse of the
child, or a spouse for any year results in an overpayment for that
year by the grantor, beneficiary, child, or spouse, and also results
in a deficiency for the same year for the grantor's or beneficiary's
trust, the beneficiary's estate, the child's parent, or spouse of the
child, or the beneficiary's spouse, the overpayment, if the period
within which credit for the overpayment may be allowed has not
expired, shall be credited on the deficiency, if the period within
which the deficiency may be proposed has not expired, and the
balance, if any, shall be credited or refunded. No interest shall be
assessed on the portion of the deficiency as is extinguished by the
credit for the period of time subsequent to the date the overpayment
was made.
(c) Subdivisions (a) and (b) are not intended, nor shall they be
construed as a limitation on the Franchise Tax Board's right to
offset or recoup barred assessments against overpayments.
SEC. 111. Section 19701.5 of the Revenue and Taxation Code is
amended to read:
19701.5. (a) Any person who signs his or her spouse's name on any
income tax return, or any schedules or attachments thereto, or who
files electronically pursuant to Section 18621.5, without the consent
of the spouse as provided in subdivision (b), is guilty of a
misdemeanor and shall upon conviction be fined an amount not to
exceed five thousand dollars ($5,000) or be imprisoned for a term not
to exceed one year, or both, at the discretion of the court,
together with costs of investigation and prosecution.
(b) Notwithstanding subdivision (a), any person who signs his or
her spouse's name shall not be guilty of a misdemeanor when one
spouse is physically unable by reason of disease or injury to sign a
joint return, and the other spouse, with the oral consent of the one
who is incapacitated, signs the incapacitated spouse's name in the
proper place on the return followed by the words "By ____, Spouse (or
Husband or Wife)," and by the signature of the signing spouse in his
or her own right, provided that a dated statement signed by the
spouse who is signing the return is attached to and made a part of
the return stating each of the following:
(1) The name of the return being filed.
(2) The taxable year.
(3) The reason for the inability of the spouse who is
incapacitated to sign the return.
(4) That the spouse who is incapacitated consented to the signing
of the return and that the taxpayer and his or her agent, if any, are
responsible for the return as made and incur liability for the
penalties provided for erroneous, false, or fraudulent returns.
(c) The penalties provided by this section are cumulative and
shall not be construed as restricting any other penalty provided by
law based upon the same facts, including any penalty under Section
470 of the Penal Code. However, an act or omission which is made
punishable in different ways by this section and different provisions
of the Penal Code shall not be punished under more than one
provision.
SEC. 112. Section 20542 of the Revenue and Taxation Code is
amended to read:
20542. (a) The Franchise Tax Board, pursuant to the provisions of
Article 3 (commencing with Section 20561), of this chapter, shall
provide assistance to the claimant based on a percentage of the
property tax accrued and paid by the claimant on the residential
dwelling as provided in Section 20543 or the statutory property tax
equivalent pursuant to Section 20544. In case of an owner-claimant,
the assistance shall be equal to the applicable percentage of
property taxes paid on the full value of the residential dwelling up
to, and including, thirty-four thousand dollars ($34,000). No
assistance shall be allowed for property taxes paid on that portion
of full value of a residential dwelling exceeding thirty-four
thousand dollars ($34,000). No assistance shall be provided if the
amount of the assistance claim is five dollars ($5) or less.
(b) For purposes of allowing assistance provided for by this
section:
(1) (A) Only one owner-claimant from one household each year shall
be entitled to assistance under this chapter. When two or more
individuals of a household are able to meet the qualifications for an
owner-claimant, they may determine who the owner-claimant shall be.
If they are unable to agree, the matter shall be referred to the
Franchise Tax Board and its decision shall be final.
(B) When two or more individuals pay rent for the same premises
and each individual meets the qualifications for a renter-claimant,
each qualified individual shall be entitled to assistance under this
part.
For the purposes of this subparagraph, spouses residing in the
same premises shall be presumed to be one renter.
(2) Except as provided in paragraph (3), the right to file a claim
shall be personal to the claimant and shall not survive his or her
death; however, when a claimant dies after having filed a timely
claim, the amount thereof may be disbursed to the surviving spouse
and, if no surviving spouse, to any other member of the household who
is a qualified claimant. If there is no surviving spouse or
otherwise qualified claimant, the claim shall be disbursed to any
other member of the household. In the event two or more individuals
qualify for payment as either an otherwise qualified claimant or a
member of the household, they may determine which of them will be
paid. If they are unable to agree, the matter shall be referred to
the Franchise Tax Board and its decision shall be final.
(3) If, after January 1 of the property tax fiscal year for which
a claim may be filed, a claimant dies without filing a timely claim,
a claim on behalf of such claimant may be filed by the surviving
spouse within the filing period prescribed in subdivision (a) or (b)
of Section 20563.
(4) If an individual postponed taxes for any given property tax
fiscal year under Chapter 2 (commencing with Section 20581), Chapter
3 (commencing with Section 20625), Chapter 3.3 (commencing with
Section 20639), or Chapter 3.5 (commencing with Section 20640), then
any claim for assistance under this chapter for the same property tax
fiscal year shall be filed by such individual (assuming all other
eligibility requirements in this chapter are satisfied) and not an
otherwise qualified member of the individual's household.
SEC. 113. Section 12.2 is added to the Streets and Highways Code,
to read:
12.2. "Spouse" includes "registered domestic partner," as
required by Section 297.5 of the Family Code.
SEC. 114. Section 2804 of the Streets and Highways Code is amended
to read:
2804. (a) This division does not apply to irrigation districts,
irrigation district improvement districts, fire districts, fire
protection districts, or public cemetery districts, or to any
proceeding otherwise subject to this division when one or more of the
following situations exist:
(1) The proceedings are undertaken by a district or public
corporation within one year of its incorporation.
(2) The improvement proceedings are by a chartered city, chartered
county, or a county sanitation district which is governed ex officio
by the board of supervisors of a chartered county, and the city,
county, or district has complied with Section 19 of Article XVI of
the California Constitution.
(3) All of the owners of more than 60 percent in area of the
property subject to assessment for the proposed improvements have
signed and filed with the clerk or secretary of the legislative body
undertaking the proceedings a written petition for the improvements
meeting the requirements of Section 2804.5.
(b) As used in this section, "substantially described" means that
additional improvements of the same or similar nature may not be
provided unless the estimated cost of the improvements does not
exceed 10 percent of the estimated cost of the improvements provided
in the former report.
(c) As used in this section, "owner of land" means only a person
who, at the time the petition is filed with the clerk or secretary of
the legislative body, appears to be the owner upon the assessor's
roll or, in the case of transfers of land, or parts thereof,
subsequent to the date upon which the last assessor's roll was
prepared, appear to be the owner on the records in the county
assessor's office which the county assessor will use to prepare the
next assessor's roll. If any person signing the petition appears on
the assessor's roll or the records in the county assessor's office as
an owner of property as a joint tenant or tenant in common, or as a
spouse, that property shall be counted as if all those persons had
signed the petition.
SEC. 115. Section 11.2 is added to the Unemployment Insurance
Code, to read:
11.2. "Spouse" includes "registered domestic partner," as
required by Section 297.5 of the Family Code.
SEC. 116. Section 13003 of the Unemployment Insurance Code is
amended to read:
13003. (a) Except where the context otherwise requires, the
definitions set forth in this chapter, and in addition the
definitions and provisions of the Personal Income Tax Law referred to
and hereby incorporated by reference as set forth in the following
provisions of the Revenue and Taxation Code, shall apply to and
govern the construction of this division:
(1) "Corporation" as defined by Section 17009.
(2) "Fiduciary" as defined by Section 17006.
(3) "Fiscal year" as defined by Section 17011.
(4) "Foreign country" as defined by Section 17019.
(5) "Franchise Tax Board" as defined by Section 17003.
(6) "Spouse" as defined by Section 17021.
(7) "Individual" as defined by Section 17005.
(8) "Military or naval forces" as defined by Section 17022.
(9) "Nonresident" as defined by Section 17015.
(10) "Partnership" as defined by Section 17008.
(11) "Person" as defined by Section 17007.
(12) "Resident" as defined by Sections 17014 and 17016.
(13) "State" as defined by Section 17018.
(14) "Taxable year" as defined by Section 17010.
(15) "Taxpayer" as defined by Section 17004.
(16) "Trade or business" as defined by Section 17020.
(17) "United States" as defined by Section 17017.
(b) The provisions of Part 10 (commencing with Section 17001) and
Part 10.2 (commencing with Section 18401) of Division 2 of the
Revenue and Taxation Code, relating to the following items, are
hereby incorporated by reference and shall apply to and govern
construction of this division:
(1) Trade or business expense (Article 6 (commencing with Section
17201) of Chapter 3 of Part 10).
(2) Deductions for retirement savings (Article 6 (commencing with
Section 17201) of Chapter 3 of Part 10).
(3) Distributions of property by a corporation to a shareholder
(Chapter 4 (commencing with Section 17321) of Part 10).
(4) Deferred compensation (Chapter 5 (commencing with Section
17501) of Part 10).
(5) Partners and partnerships (Chapter 10 (commencing with Section
17851) of Part 10).
(6) Gross income of nonresident taxpayers (Chapter 11 (commencing
with Section 17951) of Part 10).
(7) Postponement of the time for certain acts by individuals in or
in support of the Armed Forces (Article 3 (commencing with Section
18621) of Chapter 2 of Part 10.2).
(8) Disclosure of information (Article 2 (commencing with Section
19542) of Chapter 7 of Part 10.2). For this purpose "Franchise Tax
Board" as used therein shall mean the Employment Development
Department in respect to information obtained in the administration
of this division.
SEC. 117. Section 12.2 is added to the Vehicle Code, to read:
12.2. "Spouse" includes "registered domestic partner," as
required by Section 297.5 of the Family Code.
SEC. 118. Section 12.2 is added to the Water Code, to read:
12.2. "Spouse" includes "registered domestic partner," as
required by Section 297.5 of the Family Code.
SEC. 119. Section 12.2 is added to the Welfare and Institutions
Code, to read:
12.2. "Spouse" includes "registered domestic partner," as
required by Section 297.5 of the Family Code.
SEC. 120. Section 742.16 of the Welfare and Institutions Code is
amended to read:
742.16. (a) If a minor is found to be a person described in
Section 602 of this code by reason of the commission of an act
prohibited by Section 594, 594.3, 594.4, 640.5, 640.6, or 640.7 of
the Penal Code, and the court does not remove the minor from the
physical custody of the parent or guardian, the court as a condition
of probation, except in any case in which the court makes a finding
and states on the record its reasons why that condition would be
inappropriate, shall require the minor to wash, paint, repair, or
replace the property defaced, damaged, or destroyed by the minor or
otherwise pay restitution to the probation officer of the county for
disbursement to the owner or possessor of the property or both. In
any case in which the minor is not granted probation or in which the
minor's cleanup, repair, or replacement of the property will not
return the property to its condition before it was defaced, damaged,
or destroyed, the court shall make a finding of the amount of
restitution that would be required to fully compensate the owner and
possessor of the property for their damages. The court shall order
the minor or the minor's estate to pay that restitution to the
probation officer of the county for disbursement to the owner or
possessor of the property or both, to the extent the court determines
that the minor or the minor's estate have the ability to do so,
except in any case in which the court makes a finding and states on
the record its reasons why full restitution would be inappropriate.
If full restitution is found to be inappropriate, the court shall
require the minor to perform specified community service, except in
any case in which the court makes a finding and states on the record
its reasons why that condition would be inappropriate.
(b) If a minor is found to be a person described in Section 602 of
this code by reason of the commission of an act prohibited by
Section 594, 594.3, 594.4, 640.5, 640.6, or 640.7 of the Penal Code,
and the graffiti or other material inscribed by the minor has been
removed, or the property defaced by the minor has been repaired or
replaced by a public entity that has elected, pursuant to Section
742.14, to have the probation officer of the county recoup its costs
through proceedings in accordance with this section and has made cost
findings in accordance with subdivision (c) or (d) of Section
742.14, the court shall determine the total cost incurred by the
public entity for said removal, repair, or replacement, using, if
applicable, the cost findings most recently adopted by the public
entity pursuant to subdivision (c) or (d) of Section 742.14. The
court shall order the minor or the minor's estate to pay those costs
to the probation officer of the county to the extent the court
determines that the minor or the minor's estate have the ability to
do so.
(c) If the minor is found to be a person described in Section 602
of this code by reason of the commission of an act prohibited by
Section 594, 594.3, 594.4, 640.5, 640.6, or 640.7 of the Penal Code,
and the minor was identified or apprehended by the law enforcement
agency of a city or county that has elected, pursuant to Section
742.14, to have the probation officer of the county recoup its costs
through proceedings in accordance with this section, the court shall
determine the cost of identifying or apprehending the minor, or both,
using, if applicable, the cost findings adopted by the city or
county pursuant to subdivision (b) of Section 742.14. The court shall
order the minor or the minor's estate to pay those costs to the
probation officer of the county to the extent the court determines
that the minor or the minor's estate has the ability to do so.
(d) If the court determines that the minor or the minor's estate
is unable to pay in full the costs and damages determined pursuant to
subdivisions (a), (b), and (c), and if the minor's parent or parents
have been cited into court pursuant to Section 742.18, the court
shall hold a hearing to determine the liability of the minor's parent
or parents pursuant to Section 1714.1 of the Civil Code for those
costs and damages. Except when the court makes a finding setting
forth unusual circumstances in which parental liability would not
serve the interests of justice, the court shall order the minor's
parent or parents to pay those costs and damages to the probation
officer of the county to the extent the court determines that the
parent or parents have the ability to pay, if the minor was in the
custody or control of the parent or parents at the time he or she
committed the act that forms the basis for the finding that the minor
is a person described in Section 602. In evaluating the parent's or
parents' ability to pay, the court shall take into consideration the
family income, the necessary obligations of the family, and the
number of persons dependent upon this income.
(e) The hearing described in subdivision (d) may be held
immediately following the disposition hearing or at a later date, at
the option of the court.
(f) If the amount of costs and damages sought to be recovered in
the hearing pursuant to subdivision (d) is five thousand dollars
($5,000) or less, the parent or parents may not be represented by
counsel and the probation officer of the county shall be represented
by his or her nonattorney designee. The court shall conduct that
hearing in accordance with Sections 116.510 and 116.520 of the Code
of Civil Procedure. Notwithstanding the foregoing, if the court
determines that a parent cannot properly present his or her defense,
the court may, in its discretion, allow another individual to assist
that parent. In addition, a spouse may appear and participate in the
hearing on behalf of his or her spouse if the representative's spouse
has given his or her consent and the court determines that the
interest of justice would be served thereby.
(g) If the amount of costs and damages sought to be recovered in
the hearing pursuant to subdivision (d) exceeds five thousand dollars
($5,000), the parent or parents may be represented by counsel of his
or her or their own choosing, and the probation officer of the
county shall be represented by the district attorney or an attorney
or nonattorney designee of the probation officer. The parent or
parents shall not be entitled to court-appointed counsel or to
counsel compensated at public expense.
(h) At the hearing conducted pursuant to subdivision (d), there
shall be a presumption affecting the burden of proof that the
findings of the court made pursuant to subdivisions (a), (b), and (c)
represent the actual damages and costs attributable to the act of
the minor that forms the basis of the finding that the minor is a
person described in Section 602.
(i) If the parent or parents, after having been cited to appear
pursuant to Section 742.18, fail to appear as ordered, the court
shall order the parent or parents to pay the full amount of the costs
and damages determined by the court pursuant to subdivisions (a),
(b), and (c).
(j) Execution may be issued on an order issued by the court
pursuant to this section in the same manner as on a judgment in a
civil action, including any balance unpaid at the termination of the
court's jurisdiction over the minor.
(k) At any time prior to the satisfaction of a judgment entered
pursuant to this section, a person against whom the judgment was
entered may petition the rendering court to modify or vacate the
judgment on the showing of a change in circumstances relating to his
or her ability to pay the judgment.
( l ) For purposes of a hearing conducted pursuant to
subdivision (d), the judge of the juvenile court shall have the
jurisdiction of a judge of the superior court in a limited civil
case, and if the amount of the demand is within the jurisdictional
limits stated in Sections 116.220 and 116.221 of the Code of Civil
Procedure, the judge of the juvenile court shall have the powers of a
judge presiding over the small claims court.
(m) Nothing in this section shall be construed to limit the
authority of a juvenile court to provide conditions of probation.
(n) The options available to the court pursuant to subdivisions
(a), (b), (c), (d), and (k), to order payment by the minor and his or
her parent or parents of less than the full costs described in
subdivisions (a), (b), and (c), on grounds of financial inability or
for reasons of justice, shall not be available to a superior court in
an ordinary civil proceeding pursuant to subdivision (b) of Section
1714.1 of the Civil Code, except that in any proceeding pursuant to
either subdivision (b) of Section 1714.1 of the Civil Code or this
section, the maximum amount that a parent or a minor may be ordered
to pay shall not exceed twenty thousand dollars ($20,000) for each
tort of the minor.
SEC. 121. Section 7275 of the Welfare and Institutions Code is
amended to read:
7275. (a) The spouse, father, mother, or children of a patient in
a state hospital, the estates of these persons, and the guardian or
conservator and administrator of the estate of the patient shall
cause him or her to be properly and suitably cared for and
maintained, and shall pay the costs and charges for transportation to
a state institution. The spouse, father, mother, or children of a
patient in a state hospital and the administrators of their estates,
and the estate of the person shall be liable for his or her care,
support, and maintenance in a state institution of which he or she is
a patient. The liability of these persons and estates shall be a
joint and several liability, and the liability shall exist whether
the person has become a patient of a state institution pursuant to
the provisions of this code or pursuant to the provisions of Sections
1026, 1368, 1369, 1370, and 1372 of the Penal Code.
(b) This section does not impose liability for the care of persons
with intellectual disabilities in state hospitals.
SEC. 122. Section 12003 of the Welfare and Institutions Code is
amended to read:
12003. For the purposes of this chapter, neither the residence
nor domicile of the spouse shall be deemed the residence or domicile
of the other, but each may have a separate residence or domicile
dependent upon proof of the fact and not on legal presumption.
For the purposes of this chapter, a minor child shall be deemed to
have resided in the state during any period in which such child has
been physically present in the state.
SEC. 123. Section 14140 of the Welfare and Institutions Code is
amended to read:
14140. The following definitions shall apply to the provisions of
this article:
(a) "Net worth" means:
(1) Personal property, which consists of cash, savings accounts,
securities, and similar items; notes, mortgages, and deeds of trust;
the cash surrender value of life insurance on the life of the
applicant or beneficiary, on the life of the spouse, or any member of
the family, except as provided in Section 11158; motor vehicles,
except one which meets the transportation needs of the person or
family; any other property or equity other than real estate, except
that property specified in subdivisions (1), (2), and (3) of Section
11155.
(2) Real property, including any interest in land of more than
nominal interest which does not constitute the home of the applicant
for aid under this chapter. The home of the applicant shall be exempt
from consideration as net worth under this section to the extent of
ten thousand dollars ($10,000) in assessed valuation, as assessed by
the county assessor.
(3) "Income" which consists of the sum of adjusted gross income as
used for purposes of the Federal Income Tax Law.
(b) "Family unit" means:
(1) In the case of a patient who is not married or in a registered
domestic partnership and is under 21 years of age living with his or
her parent or parents, the patient and his or her parents.
(2) In the case of a patient who is married or in a registered
domestic partnership and is under 21 years of age, the patient and
his or her spouse.
(3) In the case of a patient over 21 years of age, the patient,
and if married or in a registered domestic partnership, the patient's
spouse.
SEC. 124. Section 18291 of the Welfare and Institutions Code is
amended to read:
18291. For purposes of this chapter:
(a) "Domestic violence" means abuse committed against an adult or
a minor who is a spouse, former spouse, cohabitant, former
cohabitant, or person with whom the suspect has had a child or is
having or has had a dating or engagement relationship.
(b) "Cohabitant" means two unrelated adult persons living together
for a substantial period of time, resulting in some permanency of
relationship. Factors that may determine whether persons are
cohabiting include, but are not limited to, all of the following:
(1) Sexual relations between the parties while
sharing the same living quarters.
(2) Sharing of income or expenses.
(3) Joint use or ownership of property.
(4) Whether the parties hold themselves out as spouses.
(5) The continuity of the relationship.
(6) The length of the relationship.
(c) "Domestic violence shelter" means a shelter for domestic
violence victims that meets all of the following requirements:
(1) Provides shelter in an undisclosed and secured location.
(2) Provides staff that meet the requirements set forth in Section
1037.1 of the Evidence Code.
(3) Meets the requirements set forth in Section 18294.
(d) "Undisclosed" means a location that is not advertised or
publicized.
SEC. 125. It is the intent of the Legislature that the changes
made by this act have only technical and nonsubstantive effect.
Hence, no change made by this act shall create any new right, duty,
or other obligation that did not exist immediately preceding the
effective date of this act, or result in the limitation or
termination of any right, duty, or other obligation that existed
immediately preceding the effective date of this act.
SEC. 126. Any section of any act, except for Senate Bill 1171,
enacted by the Legislature during the 2016 calendar year that takes
effect on or before January 1, 2017, and that amends, amends and
renumbers, adds, repeals and adds, or repeals a section that is
amended, amended and renumbered, added, repealed and added, or
repealed by this act, shall prevail over this act, whether that act
is enacted prior to, or subsequent to, the enactment of this act.
