Bill Text: CA SB799 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: School finance: school districts: annual budgets: reserve balance.

Spectrum: Strong Partisan Bill (Democrat 16-1)

Status: (Failed) 2016-11-30 - From Assembly without further action. [SB799 Detail]

Download: California-2015-SB799-Amended.html

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BILL NUMBER: SB 799	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 20, 2015
	AMENDED IN ASSEMBLY  JUNE 25, 2015
	AMENDED IN SENATE  APRIL 20, 2015

INTRODUCED BY    Committee on Business, Professions and
Economic Development   (   Senators
Hill (Chair), Bates, Berryhill, Block, Galgiani, Hernandez, Jackson,
Mendoza, and Wieckowski   )   Senators
  Hill   and Glazer 
    (   Coauthors:   Senators   Allen,
  Block,   Galgiani,   Pavley,  
Roth,   and Wolk   ) 
    (   Coauthors:   Assembly Members 
 Bonilla,   Brown,   Calderon,  
Cooper,   Gray,   Irwin,   Olsen, 
 Salas,   and Ting   ) 

                        MARCH 18, 2015

    An act to amend Sections 5055, 5070.1, 5087, 6735, 7083,
7200, 7200.5, 7200.7, 7201, 7202, 7208, 7209, 7209.5, 7210.5, 7211.1,
7211.2, 7215, 7215.5, 7217, 7685, 7818, 8508, 8513, 8552, 8611, and
17913 of, and to repeal Section 8516.5 of, the Business and
Professions Code, and to amend Section 13995.40 of the Government
Code, relating to business and professions.   An ac
  t to amend Sections 42127 and 42127.01 of the Education
Code, relating to school finance. 



	LEGISLATIVE COUNSEL'S DIGEST


   SB 799, as amended,  Committee on Business, Professions
and Economic Development   Hill  . 
Business and professions.   School finance: school
districts: annual budgets: reserve balance.  
   Existing law requires the governing board of a school district, on
or before July 1 of each year, to hold a hearing on, and adopt a
budget for, the subsequent fiscal year. Existing law requires the
governing board of a school district that proposes to adopt a budget
that includes a combined assigned and unassigned ending fund balance
in excess of the minimum recommended reserve for economic
uncertainties adopted by the State Board of Education to provide
specified information for public review and discussion.  
   This bill would instead require the governing board of a school
district that proposes to adopt a budget that includes unassigned
ending balances in the school district's general fund and special
reserve fund for other than capital outlay projects in excess of the
minimum recommended reserve for economic uncertainties to provide
specified information for public review and discussion. The bill
would also require the governing board of a school district to adopt
a policy establishing procedures for reporting the fund balances as
reflected in the school district's governmental fund financial
statements, as specified. By imposing additional duties on school
districts, the bill would impose a state-mandated local program.
 
   Existing law limits the amount of the combined assigned or
unassigned ending fund balance contained in a school district's
annual budget in any fiscal year immediately after a fiscal year in
which a transfer is made into the Public School System Stabilization
Account. Existing law establishes formulas for calculating the
maximum amount allowable for school districts with less than 400,000
units of average daily attendance and for school districts with more
than 400,000 units of average daily attendance, as specified.
Existing law authorizes the county superintendent of schools to grant
an exemption from those requirements if the school district provides
documentation indicating extraordinary fiscal circumstances
substantiate the need for a combined assigned or unassigned ending
fund balance that is in excess of the minimum recommended reserve for
economic uncertainties, as specified.  
   This bill would instead provide that the school district's budget
shall not contain unassigned ending balances in the school district's
general fund and special reserve fund for other than capital outlay
projects in excess of 17% of those funds, and would require a county
superintendent of schools to grant a school district an exemption if
the school district provides documentation indicating extraordinary
fiscal circumstances substantiate the need for those fund balances,
as specified. The bill would also require each county superintendent
of schools to adopt a policy establishing the procedures for
submitting exemption requests and the criteria to be used to
determine whether extraordinary fiscal circumstances exist. 

   Because the bill would impose additional duties on school
districts and county superintendents of schools, the bill would
impose a state-mandated local program.  
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.  
   (1) Existing law provides for the practice of accountancy by the
California Board of Accountancy. Existing law, until January 1, 2019,
authorizes an individual whose principal place of business is not in
this state and who has a valid and current license, certificate, or
permit to practice public accountancy from another state to engage in
the practice of public accountancy in this state under a practice
privilege without obtaining a certificate or license subject to
specified requirements. Existing law provides that an accountant
whose license was canceled by operation of law, after nonrenewal, as
specified, may, upon application to the board and meeting specified
requirements, have his or her license placed into a retired status.
 
   This bill would authorize an individual practicing public
accountancy in this state under a practice privilege to be styled and
known as a "certified public accountant" and use the abbreviation
"C.P.A." The bill would prohibit the board from restoring that
license in retired status to active or inactive status and instead
would require the individual to apply for a new license in order to
restore his or her license.  
   Existing law authorizes the board to issue a certified public
accountant (CPA) license to an applicant who holds a valid and
unrevoked CPA license in another state, under specified conditions.
 
   This bill would require that an out-of-state applicant hold a
current, active, and unrestricted CPA license in order to be issued a
CPA license under this provision. 
   (2) The Professional Engineers Act provides for the regulation and
licensure of professional engineers by the Board for Professional
Engineers, Land Surveyors, and Geologists. A violation of the
licensing provisions of the act is a misdemeanor. Existing law
requires all civil engineering plans, calculations, specifications,
and reports to be prepared by, or under the responsible charge of, a
licensed civil engineer, as specified. Existing law requires all
civil engineering plans, calculations, specifications, and reports
for the construction of all public school structures to be prepared
by, or under the responsible charge of, a licensed architect or a
licensed civil engineer who is also licensed as a structural
engineer. Existing law requires all civil engineering plans,
calculations, specifications, and reports for the construction of all
hospitals and other medical facilities having surgery and emergency
treatment areas to be prepared by, or under the responsible charge
of, a licensed civil engineer who is also licensed as a structural
engineer.  
   This bill would repeal the requirements that all civil engineering
plans and other specified documents for construction of public
school structures be prepared by, or under the responsible charge of,
a licensed architect or a licensed civil engineer who is also
licensed as a structural engineer. The bill would also repeal the
requirements that all civil engineering plans and other specified
documents for construction of specified hospital and medical
facilities be prepared by, or under the responsible charge of, a
licensed civil engineer who is also licensed as a structural
engineer.  
   (3) Existing law establishes within the Department of Consumer
Affairs a State Board of Guide Dogs for the Blind, which consists of
7 members appointed by the Governor. Existing law authorizes the
board to issue licenses for guide dog training and instructional
services. A violation of these licensing provisions is a misdemeanor.
 
   This bill would also include dogs trained and provided for
visually impaired persons within these licensing requirements. The
bill would change reporting requirements from a calendar year to a
fiscal year period and would make technical changes. 

   (4) Under the Funeral Directors and Embalmers Law, the Cemetery
and Funeral Bureau regulates licensed funeral establishments and
requires that they be operated by a licensed funeral director who is
required to provide written information regarding funeral goods and
services and prices to consumers. Existing law requires a funeral
establishment that maintains an Internet Web site to also post that
information on its Internet Web site provided by a link from the
homepage. A violation of these provisions is a misdemeanor. 

   This bill would require that the funeral establishment's Internet
Web site contain specified key words.  
    (5) Existing law provides for the licensure and regulation of
structural pest control operators and registered companies by the
Structural Pest Control Board. The California Constitution provides
that laborers of every class who have worked upon or have furnished
material for a property have a lien upon that property for the value
of the labor done and material furnished. The California Constitution
requires the Legislature to provide, by law, for the speedy and
efficient enforcement of those liens. Existing law requires specified
registered companies to provide notice regarding possible liens, as
specified, to the owner of property prior to entering into a contract
to provide work on that property. A violation of these provisions is
a misdemeanor.  
   This bill would extend the notice requirements to all registered
companies.  
   Existing law requires a structural pest control operator to
provide a report detailing the results of an inspection for wood
destroying pests or organisms prior to commencing work on a contract
or expressing an opinion regarding the presence or absence of wood
destroying pests or organisms, to the Structural Pest Control Board,
within the Department of Consumer Affairs, as specified. Existing law
requires that the pest control operator deliver a copy of the report
to the person requesting inspection, or designated agent, within 10
business days of the inspection. Existing law requires a pest control
operator to deliver a copy of that report to the owner or the owner'
s agent within 10 working days of an inspection.  
   This bill would remove the requirement that the pest control
operator provide the owner of the property or the owner's agent with
a copy of the report, unless the owner was the person who requested
the inspection.  
   (6) Existing law creates the California Travel and Tourism
Commission and provides for the membership and meetings of the
commission.  
   This bill would specify that all meetings of the commission take
place in California and would authorize commissioners to attend
meetings of the commission by conference telephone or other
technology.  
   (7) This bill would make various other nonsubstantive changes.
 
   (8) Because this bill would expand the definition of a crime, it
would impose a state-mandated local program.  
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

   SECTION 1.    Section 42127 of the  
Education Code   is amended to read: 
   42127.  (a) On or before July 1 of each year, the governing board
of each school district shall accomplish the following:
   (1) Hold a public hearing conducted in accordance with Section
42103 on the budget to be adopted for the subsequent fiscal year. The
budget to be adopted shall be prepared in accordance with Section
42126. The agenda for that hearing shall be posted at least 72 hours
before the public hearing and shall include the location where the
budget will be available for public inspection.
   (2) (A) Adopt a budget. Not later than five days after that
adoption or by July 1, whichever occurs first, the governing board of
the school district shall file that budget with the county
superintendent of schools. The budget and supporting data shall be
maintained and made available for public review. If the governing
board of the school district does not want all or a portion of the
property tax requirement levied for the purpose of making payments
for the interest and redemption charges on indebtedness as described
in paragraph (1) or (2) of subdivision (b) of Section 1 of Article
XIII A of the California Constitution, the budget shall include a
statement of the amount or portion for which a levy shall not be
made. For the 2014-15 fiscal year and each fiscal year thereafter,
the governing board of the school district shall not adopt a budget
before the governing board of the school district adopts a local
control and accountability plan, if an existing local control and
accountability plan or annual update to a local control and
accountability plan is not effective for the budget year. The
governing board of a school district shall not adopt a budget that
does not include the expenditures necessary to implement the local
control and accountability plan or the annual update to a local
control and accountability plan that is effective for the budget
year.
   (B)  (i)    Commencing with budgets adopted for
the  2015-16   2016-17  fiscal year, the
governing board of a school district that proposes to adopt a budget
that includes  a combined assigned and  unassigned
ending  fund balance   balances in the school
district's general fund and special reserve fund for other than
capital outlay projects that are  in excess of the minimum
recommended reserve for economic uncertainties adopted by the state
board pursuant to subdivision (a) of Section  33128,
  33128  shall, at the public hearing held pursuant
to paragraph (1), provide all of the following for public review and
discussion: 
   (i) 
    (I)  The minimum recommended reserve for economic
uncertainties for each fiscal year identified in the budget. 

   (ii) 
   (II)  The  combined assigned and 
unassigned ending  fund  balances  in the school
district's general fund and special reserve fund for other than
capital outlay projects  that are in excess of the minimum
recommended reserve for economic uncertainties for each fiscal year
identified in the budget. 
   (iii) 
    (III)  A statement of reasons  that
substantiates the need for an assigned and   explaining
the  unassigned ending  fund balance that is 
 balances in the school district's general fund and special
reserve fund for other than capital outlay projects that are  in
excess of the minimum recommended reserve for economic uncertainties
for each fiscal year that the school district identifies  an
assigned and   any  unassigned ending fund
 balance   balances  that  is
  are  in excess of the minimum recommended reserve
for economic uncertainties, as identified pursuant to 
clause (ii).   subclause (II).  
   (ii) Commencing with the 2016-17 fiscal year, the governing board
of a school district shall adopt a policy establishing procedures for
reporting the fund balances as reflected in the school district's
governmental fund financial statements. The policy shall outline how
the school district's fund balances are intended to ensure that
adequate financial resources are available to address revenue
shortfalls, unanticipated expenditures, planned future one-time
expenses, and any other financial or educational needs of the
district. The policy shall include a requirement for an annual report
to the governing board of the school district in a public meeting at
the same meeting as budget adoption. 
   (C) The governing board of a school district shall include the
information required pursuant to subparagraph (B) in its budgetary
submission  each time   at the time  it
files an adopted  or revised  budget with the county
superintendent of schools. The information required pursuant to
subparagraph (B) shall be maintained and made available for public
review.
   (b) The county superintendent of schools may accept changes in any
statement included in the budget, pursuant to subdivision (a), of
the amount or portion for which a property tax levy shall not be
made. The county superintendent of schools or the county auditor
shall compute the actual amounts to be levied on the property tax
rolls of the school district for purposes that exceed apportionments
to the school district pursuant to Chapter 6 (commencing with Section
95) of Part 0.5 of Division 1 of the Revenue and Taxation Code. Each
school district shall provide all data needed by the county
superintendent of schools or the county auditor to compute the
amounts. On or before August 15, the county superintendent of schools
shall transmit the amounts computed to the county auditor who shall
compute the tax rates necessary to produce the amounts. On or before
September 1, the county auditor shall submit the rate computed to the
board of supervisors for adoption.
   (c) The county superintendent of schools shall do all of the
following:
   (1) Examine the adopted budget to determine whether it complies
with the standards and criteria adopted by the state board pursuant
to Section 33127 for application to final local educational agency
budgets. The county superintendent of schools shall identify, if
necessary, technical corrections that are required to be made to
bring the budget into compliance with those standards and criteria.
   (2) Determine whether the adopted budget will allow the school
district to meet its financial obligations during the fiscal year and
is consistent with a financial plan that will enable the school
district to satisfy its multiyear financial commitments. In addition
to his or her own analysis of the budget of each school district, the
county superintendent of schools shall review and consider studies,
reports, evaluations, or audits of the school district that were
commissioned by the school district, the county superintendent of
schools, the Superintendent, and state control agencies and that
contain evidence that the school district is showing fiscal distress
under the standards and criteria adopted in Section 33127 or that
contain a finding by an external reviewer that more than 3 of the 15
most common predictors of a school district needing intervention, as
determined by the County Office Fiscal Crisis and Management
Assistance Team, are present. The county superintendent of schools
shall either conditionally approve or disapprove a budget that does
not provide adequate assurance that the school district will meet its
current and future obligations and resolve any problems identified
in studies, reports, evaluations, or audits described in this
paragraph.
   (3) Determine whether the adopted budget includes the expenditures
necessary to implement the local control and accountability plan or
annual update to the local control and accountability plan approved
by the county superintendent of schools. 
   (4) Determine whether the adopted budget includes a combined
assigned and unassigned ending fund balance that exceeds the minimum
recommended reserve for economic uncertainties. If the adopted budget
includes a combined assigned and unassigned ending fund balance that
exceeds the minimum recommended reserve for economic uncertainties,
the county superintendent of schools shall verify 
    (4)     Verify  that the school
district complied with the requirements of subparagraphs (B) and (C)
of paragraph (2) of subdivision (a).
   (d) (1) On or before September 15, the county superintendent of
schools shall approve, conditionally approve, or disapprove the
adopted budget for each school district. For the 2014-15 fiscal year
and each fiscal year thereafter, the county superintendent of schools
shall disapprove a budget if the county superintendent of schools
determines that the budget does not include the expenditures
necessary to implement a local control and accountability plan or an
annual update to the local control and accountability plan approved
by the county superintendent of schools. If the governing board of a
school district does not submit a budget to the county superintendent
of schools, the county superintendent of schools shall develop, at
school district expense, a budget for that school district by
September 15 and transmit that budget to the governing board of the
school district. The budget prepared by the county superintendent of
schools shall be deemed adopted, unless the county superintendent of
schools approves any modifications made by the governing board of the
school district. The budget prepared by the county superintendent of
schools shall also comply with the requirements of subparagraph (B)
of paragraph (2) of subdivision (a). The approved budget shall be
used as a guide for the school district's priorities. The
Superintendent shall review and certify the budget approved by the
 county.   county superintendent of schools.
 If, pursuant to the review conducted pursuant to subdivision
(c), the county superintendent of schools determines that the adopted
budget for a school district does not satisfy paragraph (1), (2),
(3), or (4) of that subdivision, he or she shall conditionally
approve or disapprove the budget and, not later than September 15,
transmit to the governing board of the school district, in writing,
his or her recommendations regarding revision of the budget and the
reasons for those recommendations, including, but not limited to, the
amounts of any budget adjustments needed before he or she can
approve that budget. The county superintendent of schools may assign
a fiscal adviser to assist the school district to develop a budget in
compliance with those revisions. In addition, the county
superintendent of schools may appoint a committee to examine and
comment on the  superintendent's   county
superintendent of schools'  review and recommendations, subject
to the requirement that the committee report its findings to the
county superintendent of schools no later than September 20.
   (2)  Notwithstanding any other provision of this article, for the
2014-15 fiscal year and each fiscal year thereafter, the budget shall
not be adopted or approved by the county superintendent of schools
before a local control and accountability plan or update to an
existing local control and accountability plan for the budget year is
approved.
   (3) If the adopted budget of a school district is conditionally
approved or disapproved pursuant to paragraph (1), on or before
October 8, the governing board of the school district, in conjunction
with the county superintendent of schools, shall review and respond
to the recommendations of the county superintendent of schools at a
regular meeting of the governing board of the school district. The
response shall include any revisions to the adopted budget and other
proposed actions to be taken, if any, as a result of those
recommendations.
   (e) On or before October 22, the county superintendent of schools
shall provide a list to the Superintendent identifying all school
districts for which budgets may be disapproved.
   (f) (1) The county superintendent of schools shall examine the
revised budget as provided in paragraph (3) of subdivision (d) to
determine whether it (A) complies with the standards and criteria
adopted by the state board pursuant to Section 33127 for application
to final local educational agency budgets, (B) allows the school
district to meet its financial obligations during the fiscal year,
(C) satisfies all conditions established by the county superintendent
of schools in the case of a conditionally approved budget, (D) is
consistent with a financial plan that will enable the school district
to satisfy its multiyear financial commitments, and, not later than
November 8, shall approve or disapprove the revised budget, and (E)
whether the revised budget complies with the requirements of
subparagraph (B) of paragraph (2) of subdivision (a). If the county
superintendent of schools disapproves the budget, he or she shall
call for the formation of a budget review committee pursuant to
Section 42127.1, unless the governing board of the school district
and the county superintendent of schools agree to waive the
requirement that a budget review committee be formed and the
department approves the waiver after determining that a budget review
committee is not necessary. Upon the grant of a waiver, the county
superintendent of schools immediately has the authority and
responsibility provided in Section 42127.3. Upon approving a waiver
of the budget review committee, the department shall ensure that a
balanced budget is adopted for the school district by December 31. If
no budget is adopted by December 31, the Superintendent may adopt a
budget for the school district. The Superintendent shall report to
the Legislature and the Director of Finance by January 10 if any
school district, including a school district that has received a
waiver of the budget review committee process, does not have an
adopted budget by December 31. This report shall include the reasons
why a budget has not been adopted by the deadline, the steps being
taken to finalize budget adoption, the date the adopted budget is
anticipated, and whether the Superintendent has or will exercise his
or her authority to adopt a budget for the school district.
   (2) Notwithstanding any other law, for the 2014-15 fiscal year and
each fiscal year thereafter, if the county superintendent of schools
disapproves the budget for the sole reason that the county
superintendent of schools has not approved a local control and
accountability plan or an annual update to the local control and
accountability plan filed by the governing board of the school
district pursuant to Section 52070, the county superintendent of
schools shall not call for the formation of a budget review committee
pursuant to Section 42127.1.
   (g) Not later than November 8, the county superintendent of
schools shall submit a report to the Superintendent identifying all
school districts for which budgets have been disapproved or budget
review committees waived. The report shall include a copy of the
written response transmitted to each of those school districts
pursuant to paragraph (1) of subdivision (d).
   (h) Not later than 45 days after the Governor signs the annual
Budget Act, the school district shall make available for public
review any revisions in revenues and expenditures that it has made to
its budget to reflect the funding made available by that Budget Act.

   (i) Any school district for which the county board of education
serves as the governing board of the school district is not subject
to subdivisions (c) to (h), inclusive, but is governed instead by the
budget procedures set forth in Section 1622.
   SEC. 2.    Section 42127.01 of the  
Education Code   is amended to read: 
   42127.01.  (a) In a fiscal year immediately after a fiscal year in
which a transfer is made into the Public School System Stabilization
Account, a school district budget that is adopted  or
revised  pursuant to Section 42127 shall not contain
 a combined assigned or  unassigned ending 
fund balance that is   balances in the school district's
general fund and special reserve fund for other than capital outlay
projects  in excess of  the following:   17
percent of those funds.  
   (1) For school districts with fewer than 400,000 units of average
daily attendance, the sum of the school district's applicable minimum
recommended reserve for economic uncertainties adopted by the state
board pursuant to subdivision (a) of Section 33128, multiplied by
two.  
   (2) For school districts with more than 400,000 units of average
daily attendance, the sum of the school district's applicable minimum
recommended reserve for economic uncertainties adopted by the state
board pursuant to subdivision (a) of Section 33128, multiplied by
three. 
   (b) A county superintendent of schools  may  
shall  grant a school district under its jurisdiction an
exemption from the requirements of subdivision (a) for up to two
consecutive fiscal years within a three-year period if the school
district provides documentation indicating that extraordinary fiscal
circumstances, including, but not limited to, multiyear
infrastructure or technology projects, substantiate the need for
 a combined assigned or unassigned ending fund balance that
is in excess of the minimum recommended reserve for economic
uncertainties. As a condition of receiving an exception, a school
district shall do all of the following:   unassigned
ending balances in the school district's general fund and special
reserve fund for other than capital outlay projects in excess of the
amount described in subdivision (a).  
   (1) Provide a statement that substantiates the need for an
assigned and unassigned ending fund balance that is in excess of the
minimum recommended reserve for economic uncertainties. 

   (2) Identify the funding amounts in the budget adopted by the
school district that are associated with the extraordinary fiscal
circumstances.  
   (3) Provide documentation that no other fiscal resources are
available to fund the extraordinary fiscal circumstances. 

   (c) This section shall become operative on December 15, 2014, only
if Assembly Constitutional Amendment No. 1 of the 2013-14 Second
Extraordinary Session is approved by the voters at the November 4,
2014, statewide general election. If Assembly Constitutional
Amendment No. 1 of the 2013-14 Second Extraordinary Session is not
approved by the voters at the November 4, 2014, statewide general
election, this section shall not become operative and is repealed on
January 1, 2015.  
   (c) Each county superintendent of schools shall adopt a policy
establishing the procedures for submitting exemption requests and the
criteria by which the county superintendent of schools shall
determine whether extraordinary fiscal circumstances exist. 

   (d) This section shall not apply to school districts with fewer
than 2,501 units of average daily attendance or to basic aid school
districts, defined as those school districts that do not receive
funding from the state pursuant to Section 42238.02 or 42238.03.

   SEC. 3.    If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.  
  SECTION 1.    Section 5055 of the Business and
Professions Code is amended to read:
   5055.  Any person who has received from the board a certificate of
certified public accountant, or who is authorized to practice public
accountancy in this state pursuant to Article 5.1 (commencing with
Section 5096), may, subject to Section 5051, be styled and known as a
"certified public accountant" and may also use the abbreviation
"C.P.A." No other person, except a firm registered under this
chapter, shall assume or use that title, designation, or abbreviation
or any other title, designation, sign, card, or device tending to
indicate that the person using it is a certified public accountant.
 
  SEC. 2.    Section 5070.1 of the Business and
Professions Code is amended to read:
   5070.1.  (a) The board may establish, by regulation, a system for
the placement of a license into a retired status, upon application,
for certified public accountants and public accountants who are not
actively engaged in the practice of public accountancy or any
activity that requires them to be licensed by the board.
   (b) No licensee with a license in a retired status shall engage in
any activity for which a permit is required.
   (c) The board shall deny an applicant's application to place a
license in a retired status if the permit is subject to an
outstanding order of the board, is suspended, revoked, or otherwise
punitively restricted by the board, or is subject to disciplinary
action under this chapter.
   (d) (1) The holder of a license that was canceled pursuant to
Section 5070.7 may apply for the placement of that license in a
retired status pursuant to subdivision (a).
   (2) Upon approval of an application made pursuant to paragraph
(1), the board shall reissue that license in a retired status.
   (3) The holder of a canceled license that was placed in retired
status between January 1, 1994, and January 1, 1999, inclusive, shall
not be required to meet the qualifications established pursuant to
subdivision (e), but shall be subject to all other requirements of
this section.
   (e) The board shall establish minimum qualifications to place a
license in retired status.
   (f) The board may exempt the holder of a license in a retired
status from the renewal requirements described in Section 5070.5.
   (g) The board shall establish minimum qualifications for the
restoration of a license in a retired status to an active status.
These minimum qualifications shall include, but are not limited to,
continuing education and payment of a fee as provided in subdivision
(h) of Section 5134.
   (h) The board shall not restore to active or inactive status a
license that was canceled by operation of law, pursuant to
subdivision (a) of Section 5070.7, and then placed into retired
status pursuant to subdivision (d). The individual shall instead
apply for a new license, as described in subdivision (c) of Section
5070.7, in order to restore his or her license.  
  SEC. 3.    Section 5087 of the Business and
Professions Code is amended to read:
   5087.  (a) The board may issue a certified public accountant
license to any applicant who is a holder of a current, active, and
unrestricted certified public accountant license issued under the
laws of any state, if the board determines that the standards under
which the applicant received the license are substantially equivalent
to the standards of education, examination, and experience
established under this chapter and the applicant has not committed
acts or crimes constituting grounds for denial under Section 480. To
be authorized to sign reports on attest engagements, the applicant
shall meet the requirements of Section 5095.
   (b) The board may in particular cases waive any of the
requirements regarding the circumstances in which the various parts
of the examination were to be passed for an applicant from another
state.  
  SEC. 4.    Section 6735 of the Business and
Professions Code is amended to read:
   6735.  (a) All civil (including structural and geotechnical)
engineering plans, calculations, specifications, and reports
(hereinafter referred to as "documents") shall be prepared by, or
under the responsible charge of, a licensed civil engineer and shall
include his or her name and license number. Interim documents shall
include a notation as to the intended purpose of the document, such
as "preliminary," "not for construction," "for plan check only," or
"for review only." All civil engineering plans and specifications
that are permitted or that are to be released for construction shall
bear the signature and seal or stamp of the licensee and the date of
signing and sealing or stamping. All final civil engineering
calculations and reports shall bear the signature and seal or stamp
of the licensee, and the date of signing and sealing or stamping. If
civil engineering plans are required to be signed and sealed or
stamped and have multiple sheets, the signature, seal or stamp, and
date of signing and sealing or stamping shall appear on each sheet of
the plans. If civil engineering specifications, calculations, and
reports are required to be signed and sealed or stamped and have
multiple pages, the signature, seal or stamp, and date of signing and
sealing or stamping shall appear at a minimum on the title sheet,
cover sheet, or signature sheet.
   (b) Notwithstanding subdivision (a), a licensed civil engineer who
signs civil engineering documents shall not be responsible for
damage caused by subsequent changes to or uses of those documents, if
the subsequent changes or uses, including changes or uses made by
state or local governmental agencies, are not authorized or approved
by the licensed civil engineer who originally signed the documents,
provided that the engineering service rendered by the civil engineer
who signed the documents was not also a proximate cause of the
damage.  
           SEC. 5.    Section 7083 of the Business
and Professions Code is amended to read:
   7083.  (a) Notwithstanding any other law, licensees shall notify
the registrar, on a form prescribed by the registrar, in writing
within 90 days of any change to information recorded under this
chapter. This notification requirement shall include, but not be
limited to, changes in business address, personnel, business name,
qualifying individual bond exemption pursuant to Section 7071.9, or
exemption to qualify multiple licenses pursuant to Section 7068.1.
   (b) Failure of the licensee to notify the registrar of any change
to information within 90 days shall cause the change to be effective
the date the written notification is received at the board's
headquarters office.
   (c) Failure to notify the registrar of the changes within the 90
days is grounds for disciplinary action.  
  SEC. 6.    Section 7200 of the Business and
Professions Code is amended to read:
   7200.  (a) There is in the Department of Consumer Affairs a State
Board of Guide Dogs for the Blind in whom enforcement of this chapter
is vested. The board shall consist of seven members appointed by the
Governor. One member shall be the Director of Rehabilitation or his
or her designated representative. The remaining members shall be
persons who have shown a particular interest in dealing with the
problems of persons who are blind or visually impaired and at least
two of them shall be persons who are blind or visually impaired who
use guide dogs.
   (b) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date. Notwithstanding any other law, the repeal of this section
renders the board subject to review by the appropriate policy
committees of the Legislature.  
  SEC. 7.    Section 7200.5 of the Business and
Professions Code is amended to read:
   7200.5.  The board shall have exclusive authority in this state to
issue licenses for the instruction of persons who are blind or
visually impaired in the use of guide dogs and for the training of
guide dogs for use by persons who are blind or visually impaired. It
shall also have exclusive authority in this state to issue licenses
to operate schools for the training of guide dogs and the instruction
of persons who are blind or visually impaired in the use of guide
dogs.  
  SEC. 8.    Section 7200.7 of the Business and
Professions Code is amended to read:
   7200.7.  A fee equal to no more than 0.005 of all school expenses
incurred in the most recently concluded school fiscal year, as
specified in the audit required under Section 7217, shall be paid no
later than April 30 of each year for renewal of a school's license
pursuant to Section 7200.5. The board shall, by regulation, define
the exact amount of the fee. All fees collected pursuant to this
section shall be deposited into the Guide Dogs for the Blind Fund,
which is hereby created.  
  SEC. 9.    Section 7201 of the Business and
Professions Code is amended to read:
   7201.  No person shall be eligible to membership in the board who
is a stockholder in, or an owner of, or financially interested
directly or indirectly, in any company, organization, or concern
supplying, delivering, or furnishing any guide dogs for use by
persons who are blind or visually impaired.  
  SEC. 10.    Section 7202 of the Business and
Professions Code is amended to read:
   7202.  Each of the appointed members of the board shall hold
office for a term of four years and until his or her successor is
appointed and qualified or until one year shall have elapsed since
the expiration of the term for which he or she was appointed,
whichever first occurs. No person shall serve as an appointed member
of the board for more than two consecutive terms.  
  SEC. 11.    Section 7208 of the Business and
Professions Code is amended to read:
   7208.  Pursuant to the provisions of the Administrative Procedure
Act the board may make such rules and regulations as are reasonably
necessary to:
   (a) Govern the procedure of the board.
   (b) Govern the admission of applicants for examination for license
to instruct persons who are blind or visually impaired in the use of
guide dogs or to engage in the business of training, selling,
hiring, or being in the business of supplying guide dogs for persons
who are blind or visually impaired.
   (c) Govern the operation of schools which furnish guide dogs and
train persons who are blind or visually impaired to use guide dogs.
   (d) The reissuance of licenses.
   (e) The reexamination of licensees.  
  SEC. 12.    Section 7209 of the Business and
Professions Code is amended to read:
   7209.  A person to be eligible for examination as an instructor
must (a) have a knowledge of the special problems of persons who are
blind or visually impaired and how to teach them, (b) be able to
demonstrate by actual blindfold test under traffic conditions his or
her ability to train guide dogs with whom persons who are blind or
visually impaired would be safe, (c) be suited temperamentally and
otherwise to instruct persons who are blind or visually impaired in
the use of guide dogs, and (d) have had at least three years' actual
experience, comprising such number of hours as the board may require,
as an instructor, and have handled 22 person-dog units; or its
equivalent, as determined by the board, as an apprentice under a
licensed instructor or under an instructor in a school satisfactory
to the board.  
  SEC. 13.    Section 7209.5 of the Business and
Professions Code is amended to read:
   7209.5.  Except as the context otherwise requires, as used in this
chapter the term "instructor" means a person who instructs persons
who are blind or visually impaired in the use of guide dogs or who
engages in the business of training, selling, hiring, or supplying
guide dogs for persons who are blind or visually impaired. 

  SEC. 14.    Section 7210.5 of the Business and
Professions Code is amended to read:
   7210.5.  It is unlawful to solicit funds for any person purporting
to provide guide dogs for persons who are blind or visually impaired
in this state unless the person for whose benefit the solicitation
is made holds a valid and unimpaired license issued by the State
Board of Guide Dogs for the Blind.
   As used in this section "person" means an individual, firm,
partnership, association, corporation, limited liability company, or
cooperative association.  
  SEC. 15.    Section 7211.1 of the Business and
Professions Code is amended to read:
   7211.1.  (a) As a condition of renewal of an instructor's license,
the instructor shall provide proof of completion of not less than 8
hours of continuing education. The board shall determine the form of
proof.
   (b) Continuing education shall meet the criteria specified in
Section 166, and shall be in one or more of the following subject
matter areas:
   (1) Blindness and mobility.
   (2) Health issues relating to blindness.
   (3) Instructing persons who are blind or visually impaired.
   (4) Care and training of dogs.  
  SEC. 16.    Section 7211.2 of the Business and
Professions Code is amended to read:
   7211.2.  A plea or verdict of guilty or a conviction following a
plea of nolo contendere is deemed to be a conviction within the
meaning of this article. The board may order the license suspended or
revoked, or may decline to issue a license, when the time for appeal
has elapsed, or the judgment of conviction has been affirmed on
appeal or when an order granting probation is made suspending the
imposition of sentence, irrespective of a subsequent order under the
provisions of Section 1203.4 of the Penal Code allowing such person
to withdraw his or her plea of guilty and to enter a plea of not
guilty, or setting aside the verdict of guilty, or dismissing the
accusation, information, or indictment.  
  SEC. 17.    Section 7215 of the Business and
Professions Code is amended to read:
   7215.  No person shall sell, give, or furnish any guide dog to a
person who is blind or visually impaired unless the following
requirements have been met:
   (a) The dog has been immunized against distemper and rabies.
   (b) The dog has been spayed or neutered.
   (c) The dog has been examined by a licensed veterinarian and found
to be in good health.
   A certificate from a veterinarian certifying to the foregoing
shall be delivered to the recipient of the dog at the time the dog is
assigned to a client.  
  SEC. 18.    Section 7215.5 of the Business and
Professions Code is amended to read:
   7215.5.  (a) During the first year following the successful
training of each person-dog unit, and release from a guide dog
training school of the trained person supplied with a guide dog, the
school may retain title to the trained dog. During this probationary
year, the school may enter into a contractual agreement with the user
of the dog describing the conditions under which the user may
maintain the status of legal custodian of the dog. During the
probationary year, the school, acting in what it deems to be the best
interest of the user, the dog, or the public, may temporarily or
permanently resume possession of the dog.
    (b) Within 15 days after the end of each fiscal year, each
licensed school shall report to the board the following:
   (1) The number of dog ownership titles transferred to dog users
pursuant to this section during the calendar year.
   (2) The number of title recoveries and repossessions made by the
school pursuant to this section during the calendar year.
   (3) The number, type, and amount of charges assessed for followup
training, instruction, veterinary, or boarding services, pursuant to
this section, which make a distinction between users who have
acquired title to their dogs and users who have not acquired title.
   (4) The views of the governing entity of the school as to any
problems or concerns relative to compliance with the provisions of
this section, along with recommendations for appropriate legislative
or administrative changes commensurate with the purposes of this
section.
   (c) Immediately upon completion of the first year following the
successful training referred to above, if the training school and the
dog user are mutually satisfied with the operation of the person-dog
unit, title to the dog shall be transferred to the user who is blind
or visually impaired if the user so desires. Transfer of title shall
be evidenced by a transfer of title agreement executed by both
parties thereto. The school may retain an option to recover title and
possession to the guide dog subject to conditions described in the
transfer of title agreement. These conditions may include, but are
not limited to, the following:
   (1) If in the school's opinion, the guide dog is being misused or
neglected or mistreated by its user who is blind or visually
impaired.
   (2) If the user to whom the dog was furnished has ceased to use
the dog as a guide and the dog is not too old to be retrained as a
guide for another person who is blind or visually impaired.
   (3) If, in the school's opinion, the dog is no longer a safe guide
and the user refuses to cease using the dog as a guide after being
requested by the school to cease this use.
   (d) The guide dog school shall make no distinction as to the
quality or extent of followup or supportive services available to its
blind graduates based on whether they elect to acquire title to
their dogs or allow title to remain with the school after the
probationary year. The school may, however, make this distinction
when assessing reasonable and appropriate charges for followup
training, instruction, veterinary, or boarding services.
   (e) No applicant for admission to a guide dog training school, nor
any enrolled student, shall be required by the school prior to
completion of his or her training to sign any instrument or to
announce his or her intention regarding transfer of title of the dog
from the school to himself or herself upon completion of the training
and probation period.  
  SEC. 19.    Section 7217 of the Business and
Professions Code is amended to read:
   7217.  (a) Within 60 days after the termination of the fiscal year
of a school, there shall be furnished to the board the following:
   (1) A list of students accepted for training and those who have
completed training.
   (2) A list of the number of dogs trained.
   (b) Within 90 days after the end of a fiscal year, there shall be
furnished to the board an independent audit of the school's finances
by a certified public accountant licensed by this state. 

  SEC. 20.    Section 7685 of the Business and
Professions Code is amended to read:
   7685.  (a) (1) Every funeral director shall provide to any person,
upon beginning discussion of prices or of the funeral goods and
services offered, a written or printed list containing, but not
necessarily limited to, the price for professional services offered,
which may include the funeral director's services, the preparation of
the body, the use of facilities, and the use of automotive
equipment. All services included in this price or prices shall be
enumerated. The funeral director shall also provide a statement on
that list that gives the price range for all caskets offered for
sale.
   (2) The list shall also include a statement indicating that the
survivor of the deceased who is handling the funeral arrangements, or
the responsible party, is entitled to receive, prior to the drafting
of any contract, a copy of any preneed agreement that has been
signed and paid for, in full or in part, by or on behalf of the
deceased, and that is in the possession of the funeral establishment.

   (3) The funeral director shall also provide a written statement or
list that, at a minimum, specifically identifies a particular casket
or caskets by price and by thickness of metal, or type of wood, or
other construction, interior and color, in addition to other casket
identification requirements under Part 453 of Title 16 of the Code of
Federal Regulations and any subsequent version of this regulation,
when a request for specific information on a casket or caskets is
made in person by any individual. Prices of caskets and other
identifying features such as thickness of metal, or type of wood, or
other construction, interior and color, in addition to other casket
identification requirements required to be given over the telephone
by Part 453 of Title 16 of the Code of Federal Regulations and any
subsequent version of this regulation, shall be provided over the
telephone, if requested.
   (b) (1) Each licensed funeral establishment that maintains an
Internet Web site shall post on its Internet Web site the list of
funeral goods and services that are required to be included in the
establishment's general price list, pursuant to federal rule, and a
statement that the general price list is available upon request.
   (2) Information posted pursuant to paragraph (1) shall be provided
by a link from the homepage of the Internet Web site with a word or
combination of words, including, but not limited to, "goods,"
"merchandise," "products," or "services."
   (3) An establishment that posts on its Internet Web site home page
the words "price information" or a similar phrase that includes the
word "price," with a link that leads to the establishment's general
price list, need not comply with paragraphs (1) or (2).
   (4) Nothing in this subdivision shall be construed to affect an
establishment's obligations under federal or state law effective
prior to January 1, 2013.
   (5) This subdivision shall become operative on January 1, 2013.
 
  SEC. 21.    Section 7818 of the Business and
Professions Code is amended to read:
   7818.  The board, pursuant to the provisions contained in Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code, may adopt, amend or repeal rules and
regulations to carry out the provisions of this chapter. 

  SEC. 22.    Section 8508 of the Business and
Professions Code is amended to read:
   8508.  "Household" means any structure and its contents that are
used for persons and their convenience.  
  SEC. 23.    Section 8513 of the Business and
Professions Code is amended to read:
   8513.  (a) The board shall prescribe a form entitled "Notice to
Owner" that shall describe, in nontechnical language and in a clear
and coherent manner using words with common and everyday meaning, the
pertinent provisions of this state's mechanics lien laws and the
rights and responsibilities of an owner of property and a registered
pest control company thereunder. Each company registered under this
chapter, prior to entering into a contract with an owner for work for
which a company registration is required, shall give a copy of this
"Notice to Owner" to the owner, his or her agent, or the payer.
   (b) No company that is required to be registered under this
chapter shall require or request a waiver of lien rights from any
subcontractor, employee, or supplier.
   (c) Each company registered under this chapter that acts as a
subcontractor for another company registered under this chapter
shall, within 20 days of commencement of any work for which a company
registration is required, give the preliminary notice in accordance
with Chapter 2 (commencing with Section 8200) of Title 2 of Part 6 of
Division 4 of the Civil Code, to the owner, his or her agent, or the
payer.
   (d) Each company registered under this chapter that acts as a
prime contractor for work for which a company registration is
required shall, prior to accepting payment for the work, furnish to
the owner, his or her agent, or the payer a full and unconditional
release from any claim of mechanics lien by any subcontractor
entitled to enforce a mechanics lien pursuant to Section 8410 of the
Civil Code.
   (e) Each company registered under this chapter that subcontracts
to another company registered under this chapter work for which a
company registration is required shall furnish to the subcontractor
the name of the owner, his or her agent, or the payer.
   (f) A violation of the provisions of this section is a ground for
disciplinary action.  
  SEC. 24.    Section 8516.5 of the Business and
Professions Code is repealed.  
  SEC. 25.    Section 8552 of the Business and
Professions Code is amended to read:
   8552.  It is unlawful for any person to advertise or represent in
any manner that any pest control work, in whole or in part, has been
done upon any structure, unless the work has been performed by a
registered company, except as otherwise provided in this chapter.
 
  SEC. 26.    Section 8611 of the Business and
Professions Code is amended to read:
   8611.  (a) Each branch office shall have a branch supervisor
designated by the registered company to supervise and assist the
company's employees who are located at that branch. The branch
supervisor shall be an individual who is licensed by the board as an
operator or a field representative in the branch or branches of
business being conducted and his or her license shall be prominently
displayed in the branch office.
   (b) If a branch supervisor ceases for any reason to be connected
with a registered company, the company shall notify the registrar in
writing within 10 days from that cessation. If this notice is given,
the company's branch office registration shall remain in force for a
reasonable length of time to be determined by rules of the board,
during which period the company shall submit to the registrar in
writing the name of another qualified branch supervisor. 

  SEC. 27.    Section 17913 of the Business and
Professions Code is amended to read:
   17913.  (a) The fictitious business name statement shall contain
all of the information required by this subdivision and shall be
substantially in the following form:
         FICTITIOUS BUSINESS NAME STATEMENT
The following person (persons) is (are) doing
business as
*_________________________________________________
at ** ___________________________________________:
***_______________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
  This business is conducted by ****_______________
  The registrant commenced to transact business
under the fictitious business name or names
listed above on
             ***** ________________________________
  I declare that all information in this statement
is true and correct. (A registrant who declares
as true any material matter pursuant to Section
17913 of the Business and Professions Code that
the registrant knows to be false is guilty of a
misdemeanor punishable by a fine not to exceed
one thousand dollars ($1,000).)
        Registrant ________________________________
         signature
  Statement filed with the County Clerk of ____
County on ________________________________________


   NOTICE--IN ACCORDANCE WITH SUBDIVISION (a) OF SECTION 17920, A
FICTITIOUS NAME STATEMENT GENERALLY EXPIRES AT THE END OF FIVE YEARS
FROM THE DATE ON WHICH IT WAS FILED IN THE OFFICE OF THE COUNTY
CLERK, EXCEPT, AS PROVIDED IN SUBDIVISION (b) OF SECTION 17920, WHERE
IT EXPIRES 40 DAYS AFTER ANY CHANGE IN THE FACTS SET FORTH IN THE
STATEMENT PURSUANT TO SECTION 17913 OTHER THAN A CHANGE IN THE
RESIDENCE ADDRESS OF A REGISTERED OWNER. A NEW FICTITIOUS BUSINESS
NAME STATEMENT MUST BE FILED BEFORE THE EXPIRATION.
   THE FILING OF THIS STATEMENT DOES NOT OF ITSELF AUTHORIZE THE USE
IN THIS STATE OF A FICTITIOUS BUSINESS NAME IN VIOLATION OF THE
RIGHTS OF ANOTHER UNDER FEDERAL, STATE, OR COMMON LAW (SEE SECTION
14411 ET SEQ., BUSINESS AND PROFESSIONS CODE).

   (b) The fictitious business name statement shall contain the
following information set forth in the manner indicated in the form
provided by subdivision (a):
   (1) Where the asterisk (*) appears in the form, insert the
fictitious business name or names. Only those businesses operated at
the same address and under the same ownership may be listed on one
fictitious business name statement.
   (2) Where the two asterisks (**) appear in the form: If the
registrant has a place of business in this state, insert the street
address, and county, of his or her principal place of business in
this state. If the registrant has no place of business in this state,
insert the street address, and county, of his or her principal place
of business outside this state.
   (3) Where the three asterisks (***) appear in the form: If the
registrant is an individual, insert his or her full name and
residence address. If the registrants are a married couple, insert
the full name and residence address of both parties to the marriage.
If the registrant is a general partnership, copartnership, joint
venture, or limited liability partnership, insert the full name and
residence address of each general partner. If the registrant is a
limited partnership, insert the full name and
                    residence address of each general partner. If the
registrant is a limited liability company, insert the name and
address of the limited liability company, as set out in its articles
of organization on file with the California Secretary of State, and
the state of organization. If the registrant is a trust, insert the
full name and residence address of each trustee. If the registrant is
a corporation, insert the name and address of the corporation, as
set out in its articles of incorporation on file with the California
Secretary of State, and the state of incorporation. If the
registrants are state or local registered domestic partners, insert
the full name and residence address of each domestic partner. If the
registrant is an unincorporated association other than a partnership,
insert the name of each person who is interested in the business of
the association and whose liability with respect to the association
is substantially the same as that of a general partner.
   (4) Where the four asterisks (****) appear in the form, insert
whichever of the following best describes the nature of the business:
(i) "an individual," (ii) "a general partnership," (iii) "a limited
partnership," (iv) "a limited liability company," (v) "an
unincorporated association other than a partnership," (vi) "a
corporation," (vii) "a trust," (viii) "copartners," (ix) "a married
couple," (x) "joint venture," (xi) "state or local registered
domestic partners," or (xii) "a limited liability partnership."
   (5) Where the five asterisks (*****) appear in the form, insert
the date on which the registrant first commenced to transact business
under the fictitious business name or names listed, if already
transacting business under that name or names. If the registrant has
not yet commenced to transact business under the fictitious business
name or names listed, insert the statement, "Not applicable."
   (c) The registrant shall declare that all of the information in
the fictitious business statement is true and correct. A registrant
who declares as true any material matter pursuant to this section
that the registrant knows to be false is guilty of a misdemeanor
punishable by a fine not to exceed one thousand dollars ($1,000).
   (d) (1) At the time of filing of the fictitious business name
statement, the registrant filing on behalf of the registrant shall
present personal identification in the form of a California driver's
license or other government identification acceptable to the county
clerk to adequately determine the identity of the registrant filing
on behalf of the registrant as provided in subdivision (e) and the
county clerk may require the registrant to complete and sign an
affidavit of identity.
   (2) In the case of a registrant utilizing an agent for submission
of the registrant's fictitious business name statement for filing, at
the time of filing of the fictitious business name statement, the
agent filing on behalf of the registrant shall present personal
identification in the form of a California driver's license or other
government identification acceptable to the county clerk to
adequately determine the identity of the agent filing on behalf of
the registrant as provided in subdivision (e). The county clerk may
also require the agent to submit a notarized statement signed by the
registrant declaring the registrant has authorized the agent to
submit the filing on behalf of the registrant.
   (e) If the registrant is a corporation, a limited liability
company, a limited partnership, or a limited liability partnership,
the county clerk may require documentary evidence issued by the
California Secretary of State and deemed acceptable by the county
clerk, indicating the current existence and good standing of that
business entity to be attached to a completed and notarized affidavit
of identity, for purposes of subdivision (d).
   (f) The county clerk may require a registrant that mails a
fictitious business name statement to a county clerk's office for
filing to submit a completed and notarized affidavit of identity. A
registrant that is a corporation, limited liability company, limited
partnership, or limited liability partnership, if required by the
county clerk to submit an affidavit of identity, shall also submit
documentary evidence issued by the California Secretary of State
indicating the current existence and good standing of that business
entity.
   (g) A county clerk that chooses to establish procedures pursuant
to this section shall prescribe the form of affidavit of identity for
filing by a registrant in that county.  
  SEC. 28.    Section 13995.40 of the Government
Code is amended to read:
   13995.40.  (a) Upon approval of the initial referendum, the office
shall establish a nonprofit mutual benefit corporation named the
California Travel and Tourism Commission. The commission shall be
under the direction of a board of commissioners, which shall function
as the board of directors for purposes of the Nonprofit Corporation
Law.
   (b) The board of commissioners shall consist of 37 commissioners
comprising the following:
   (1) The director, who shall serve as chairperson.
   (2) (A) Twelve members, who are professionally active in the
tourism industry, and whose primary business, trade, or profession is
directly related to the tourism industry, shall be appointed by the
Governor. Each appointed commissioner shall represent only one of the
12 tourism regions designated by the office, and the appointed
commissioners shall be selected so as to represent, to the greatest
extent possible, the diverse elements of the tourism industry.
Appointed commissioners are not limited to individuals who are
employed by or represent assessed businesses.
   (B) If an appointed commissioner ceases to be professionally
active in the tourism industry or his or her primary business, trade,
or profession ceases to be directly related to the tourism industry,
he or she shall automatically cease to be an appointed commissioner
90 days following the date on which he or she ceases to meet both of
the eligibility criteria specified in subparagraph (A), unless the
commissioner becomes eligible again within that 90-day period.
   (3) Twenty-four elected commissioners, including at least one
representative of a travel agency or tour operator that is an
assessed business.
   (c) The commission established pursuant to Section 15364.52 shall
be inoperative so long as the commission established pursuant to this
section is in existence.
   (d) Elected commissioners shall be elected by industry category in
a referendum. Regardless of the number of ballots received for a
referendum, the nominee for each commissioner slot with the most
weighted votes from assessed businesses within that industry category
shall be elected commissioner. In the event that an elected
commissioner resigns, dies, or is removed from office during his or
her term, the commission shall appoint a replacement from the same
industry category that the commissioner in question represented, and
that commissioner shall fill the remaining term of the commissioner
in question. The number of commissioners elected from each industry
category shall be determined by the weighted percentage of
assessments from that category.
   (e) The director may remove any elected commissioner following a
hearing at which the commissioner is found guilty of abuse of office
or moral turpitude.
   (f) (1) The term of each elected commissioner shall commence July
1 of the year next following his or her election, and shall expire on
June 30 of the fourth year following his or her election. If an
elected commissioner ceases to be employed by or with an assessed
business in the category and segment which he or she was
representing, his or her term as an elected commissioner shall
automatically terminate 90 days following the date on which he or she
ceases to be so employed, unless, within that 90-day period, the
commissioner again is employed by or with an assessed business in the
same category and segment.
   (2) Terms of elected commissioners that would otherwise expire
effective December 31 of the year during which legislation adding
this subdivision is enacted shall automatically be extended until
June 30 of the following year.
   (g) With the exception of the director, no commissioner shall
serve for more than two consecutive terms. For purposes of this
subdivision, the phrase "two consecutive terms" shall not include
partial terms.
   (h) Except for the original commissioners, all commissioners shall
serve four-year terms. One-half of the commissioners originally
appointed or elected shall serve a two-year term, while the remainder
shall serve a four-year term. Every two years thereafter, one-half
of the commissioners shall be appointed or elected by referendum.
   (i) The selection committee shall determine the initial slate of
candidates for elected commissioners. Thereafter the commissioners,
by adopted resolution, shall nominate a slate of candidates, and
shall include any additional candidates complying with the procedure
described in Section 13995.62.
   (j) The commissioners shall elect a vice chairperson from the
elected commissioners.
   (k) The commission may lease space from the office.
   (l) The commission and the office shall be the official state
representatives of California tourism.
   (m) (1) All commission meetings shall be held in California.
   (2) Commissioners may participate in meetings by means of
conference telephone and other technology.
   (n) No person shall receive compensation for serving as a
commissioner, but each commissioner shall receive reimbursement for
reasonable expenses incurred while on authorized commission business.

   (o) Assessed businesses shall vote only for commissioners
representing their industry category.
   (p) Commissioners shall comply with the requirements of the
Political Reform Act of 1974 (Title 9 (commencing with Section
81000)). The Legislature finds and declares that commissioners
appointed or elected on the basis of membership in a particular
tourism segment are appointed or elected to represent and serve the
economic interests of those tourism segments and that the economic
interests of these members are the same as those of the public
generally.
   (q) Commission meetings shall be subject to the requirements of
the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section
11120) of Chapter 1 of Part 1).
   (r) The executive director of the commission shall serve as
secretary to the commission, a nonvoting position, and shall keep the
minutes and records of all commission meetings.  
  SEC. 29.    No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.