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Home/Bills/SB 1433California · 2025–2026 Regular Session
Senate BillChaptered/SignedBusiness and Professions

SB 1433: Maintenance of the codes.

California · Senate · 2025–2026 Regular Session · last verified July 20, 2026

What SB 1433 does, verified July 20, 2026

This bill aims to maintain the California codes by making nonsubstantive changes in various provisions of the law. The Legislative Counsel recommends updates to the codes to ensure they remain relevant and effective. The bill will make changes to sections of the codes related to business, civil, education, elections, fish and game, food, government, health, insurance, labor, military, penal, public resources, public utilities, revenue, taxation, vehicle, and welfare laws. The updates are intended to address outdated or unnecessary provisions, while maintaining the overall structure and intent of the codes. The bill is a response to the Legislative Counsel's advice to the legislature to update the codes and ensure they continue to serve the state's needs.

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6ChapteredCurrent
Last action: Chaptered by Secretary of State. Chapter 57, Statutes of 2026. (2026-06-15)Alert me
Recent actions17 total · showing 5
Jun. 30, 2026Chaptered by Secretary of State. Chapter 57, Statutes of 2026.
Jun. 30, 2026Approved by the Governor.
Jun. 19, 2026Enrolled and presented to the Governor at 3 p.m.
Jun. 16, 2026In Senate. Ordered to engrossing and enrolling.
Jun. 15, 2026Read third time. Passed. (Ayes 77. Noes 0. Page 5707.) Ordered to the Senate.
Full action history, 12 earlier actionsConnect Plus
Latest bill textChaptered version, June 30, 2026 · 142,718 words

Senate Bill No. 1433
CHAPTER 57

An act to amend Sections 733, 2242.2, 2553.5, 3046.1, 4073.5, 4602, 4610, 4826.5, 4858, 6126.7, 16608, and 17810 of the Business and Professions Code, to amend Sections 714.6, 798.14, 798.74.4, 1714.27, 3273.29, 4752, and 8811 of the Civil Code, to amend Sections 697.680 and 1094.9 of the Code of Civil Procedure, to amend Sections 234.7, 35221, 38134, 44043.5, 46392, 49001, 51140, 69436, 70022, 70034, and 88821 of the Education Code, to amend Sections 6915, 12304, and 12309 of the Elections Code, to amend Section 5654 of the Fish and Game Code, to amend Section 21283 of the Food and Agricultural Code, to amend Sections 1031.5, 6215, 6588.7, 8010, 8557, 10233, 10240, 11041, 11123.2, 12100.33, 12100.162, 12910, 12960, 12965, 15475.6, 19829.9854, 53398.52, 54953.4, 54953.8, 54953.8.1, 54954.2, 54957.9, 63049.71, 65589.5, 65914.2, 65950, 66300.6.5, 66323, 67784, 67786, 67788, and 87202 of, and to repeal the heading of Chapter 17.45 (commencing with Section 7289) of Division 7 of Title 1 of, the Government Code, to amend Section 676 of the Harbors and Navigation Code, to amend Sections 1279.6, 1342.74, 1367.25, 1597.640, 8028.73, 17021.8, 17970.3, 38532, 38562, 38562.3, 38591.2, 40100.5.5, 41313, 44501, 44515, 44559.14, 50406.4, 50410, 53545.14, 104660, 104661, and 108980 of the Health and Safety Code, to amend Sections 937, 10123.1933, and 10123.196 of the Insurance Code, to amend Sections 923.1, 1401, and 2810.8 of the Labor Code, to amend Section 59 of the Military and Veterans Code, to amend Sections 136.1, 636.6, 1170, 2780.6, 11105.04, and 13667 of the Penal Code, to amend Sections 4291.5, 4584.1, 4584.2, 5006.1, 5598, 5797.4, 21080.28.5, 21080.43, 21080.44, 25354, 25545, 25545.16, 25545.19, 30166, 30168, 30600.5, and 42652.5 of the Public Resources Code, to amend Sections 748.5, 850, 3299.2, 3310, 8501, and 180305 of, to amend the heading of Chapter 10 (commencing with Section 8500) of Division 4.1 of, and to repeal the heading of Article 7 of Chapter 3 of Division 1.5 of, the Public Utilities Code, to amend Sections 17053.40, 19002, and 23640 of the Revenue and Taxation Code, to amend Sections 21201 and 21450.5 of the Vehicle Code, to amend Sections 351, 50976, 60385, 60414, 74467, and 74850 of the Water Code, to amend Sections 309, 827, 9630, 10213.5, 11330.6, 13300.5, 14005.62, 14005.27, 14105.47, 14132.968, 16000.1, 16121.5, and 18900 of, and to repeal Section 12306.16 of, the Welfare and Institutions Code, and to amend Section 3 of Chapter 578 of the Statutes of 2025, relating to maintenance of the codes.

[ Approved by Governor June 30, 2026. Filed with Secretary of State June 30, 2026. ]

LEGISLATIVE COUNSEL'S DIGEST


SB 1433, Committee on Judiciary. Maintenance of the codes.
Existing law directs the Legislative Counsel to advise the Legislature from time to time as to legislation necessary to maintain the codes.
This bill would make nonsubstantive changes in various provisions of the law to effectuate the recommendations made by the Legislative Counsel to the Legislature.
Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO

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


SECTION 1.

Section 733 of the Business and Professions Code is amended to read:

733.

(a) A licentiate shall not obstruct a patient in obtaining a prescription drug or device that has been legally prescribed or ordered for that patient. A violation of this section constitutes unprofessional conduct by the licentiate and shall subject the licentiate to disciplinary or administrative action by their licensing agency.
(b) Notwithstanding any other law, a licentiate shall dispense drugs and devices, as described in subdivision (a) of Section 4024, pursuant to a lawful order or prescription unless one of the following circumstances exists:
(1) Based solely on the licentiate’s professional training and judgment, dispensing pursuant to the order or the prescription is contrary to law, or the licentiate determines that the prescribed drug or device would cause a harmful drug interaction or would otherwise adversely affect the patient’s medical condition.
(2) The prescription drug or device is not in stock. If an order, other than an order described in Section 4019, or prescription cannot be dispensed because the drug or device is not in stock, the licentiate shall take one of the following actions:
(A) Immediately notify the patient and arrange for the drug or device to be delivered to the site or directly to the patient in a timely manner.
(B) Promptly transfer the prescription to another pharmacy known to stock the prescription drug or device that is near enough to the site from which the prescription or order is transferred, to ensure the patient has timely access to the drug or device.
(C) Return the prescription to the patient and refer the patient. The licentiate shall make a reasonable effort to refer the patient to a pharmacy that stocks the prescription drug or device that is near enough to the referring site to ensure that the patient has timely access to the drug or device.
(3) The licentiate refuses on ethical, moral, or religious grounds to dispense a drug or device pursuant to an order or prescription. A licentiate may decline to dispense a prescription drug or device on this basis only if the licentiate has previously notified their employer, in writing, of the drug or class of drugs to which the licentiate objects, and the licentiate’s employer can, without creating undue hardship, provide a reasonable accommodation of the licentiate’s objection. The licentiate’s employer shall establish protocols that ensure that the patient has timely access to the prescribed drug or device despite the licentiate’s refusal to dispense the prescription or order. For purposes of this section, “reasonable accommodation” and “undue hardship” shall have the same meaning as applied to those terms pursuant to subdivision (l) of Section 12940 of the Government Code.
(c) For the purposes of this section, “prescription drug or device” has the same meaning as the definition in Section 4022.
(d) This section applies to emergency contraception drug therapy, over-the-counter contraceptives, and self-administered prescription-only hormonal contraceptives described in Section 4052.
(e) This section imposes no duty on a licentiate to dispense a drug or device pursuant to a prescription or order without payment for the drug or device, including payment directly by the patient or through a third-party payer accepted by the licentiate or payment of any required copayment by the patient.
(f) The notice to consumers required by Section 4122 shall include a statement that describes patients’ rights relative to the requirements of this section.

SEC. 2.

Section 2242.2 of the Business and Professions Code is amended to read:

2242.2.

Notwithstanding any other law, a physician and surgeon, a nurse practitioner acting within the scope of Section 2837.103 or 2837.104, a registered nurse acting in accordance with Section 2725.2, a certified nurse-midwife acting within the scope of Section 2746.51, a nurse practitioner acting within the scope of Section 2836.1, a physician assistant acting within the scope of Section 3502.1, and a pharmacist acting within the scope of Section 4052 may use a self-screening tool that will identify patient risk factors for the use of self-administered hormonal contraceptives by a patient, and, after an appropriate prior examination, prescribe, furnish, or dispense, as applicable, self-administered hormonal contraceptives to the patient. Blood pressure, weight, height, and patient health history may be self-reported using the self-screening tool that identifies patient risk factors.

SEC. 3.

Section 2553.5 of the Business and Professions Code is amended to read:

2553.5.

(a) A registered spectacle lens dispenser may fit and adjust spectacle lenses and frames or take facial measurements in any of the following locations:
(1) A health facility as defined in Section 1250 of the Health and Safety Code for a person admitted to that facility or an employee of that facility.
(2) A business location as defined in subdivision (e) for an employee or independent contractor of the person operating the business at that location.
(3) Any certified place of business pursuant to Section 2564.93.
(b) A registered spectacle lens dispenser who fits and adjusts spectacle lenses at a health facility or business location shall provide to the patient written information disclosing the registrant’s regular business address, certificate of registration number, phone number, and the name and phone number of the person designated by the licensee to receive complaints and inquiries, as specified in Section 2552.
(c) This section shall not be deemed to permit a registered contact lens dispenser to fit or adjust contact lenses at a health facility or at a business location, as defined in subdivision (e).
(d) A registered spectacle lens dispenser may fit and adjust spectacle lenses at a health facility or at a business location, as defined in subdivision (e), only if the dispenser is in personal attendance at a certified place of business pursuant to Section 2564.93 at least 40 percent of the dispenser’s regular working hours each week.
(e) “Business location” means the place at which any business employs more than 25 persons at any single business address, but shall not include a health facility, as defined in Section 1250 of the Health and Safety Code, or a certified place of business as specified in Section 2564.93.
(f) This section does not affect the requirements regarding fitting and adjusting as set forth in Sections 2559.1 and 2560.

SEC. 4.

Section 3046.1 of the Business and Professions Code is amended to read:

3046.1.

(a) The board shall issue a temporary license to practice optometry to a person who applies for and is eligible for licensure pursuant to Section 3046, but who is unable to immediately take the Part III - Patient Encounters and Performance Skills Examination developed by the National Board of Examiners in Optometry (NBEO), required for licensure under this chapter, due to the state of emergency, proclaimed by the Governor on March 4, 2020, in response to the COVID-19 pandemic. In addition to Section 3046, the person shall also satisfy all of the following conditions:
(1) The person has never been previously licensed to practice optometry in any state in the United States.
(2) The person pays to the board the applicable fee of one hundred dollars ($100), or a fee in an amount as determined by the board, not to exceed the reasonable cost of administering this section and submits an application to be a temporary licensee, as described in subdivision (j), to the board.
(3) The person has received approval from their accredited school of optometry that the person meets the educational requirements to practice optometry.
(4) The person satisfies all other conditions to licensure established by this chapter.
(b) A person holding a temporary license shall be subject to the same rights and restrictions that are afforded to a person holding a valid, unrevoked California optometrist license, except as set forth in this section. For the purposes of this chapter, “temporary licensee” means a person holding a temporary license pursuant to this section.
(c) A temporary licensee shall practice under the direct supervision of a supervising optometrist. For the purposes of this chapter, “supervising optometrist” means a California licensed optometrist that has been licensed for a minimum of five years and has been certified for the treatment of glaucoma, pursuant to subdivision (c) of Section 3041, and submits an application to be a supervising optometrist, as described in subdivision (k), to the board. A licensed physician practicing ophthalmology may also supervise a temporary licensee and shall be subject to all of the same reporting requirements as set forth in this section.
(d) Notwithstanding any other law, a temporary licensee may perform services as authorized by this chapter if both of the following requirements are met:
(1) The temporary licensee renders the services under the direct supervision of a supervising optometrist who is not subject to a disciplinary condition imposed by the board prohibiting that supervision or prohibiting the employment of a temporary licensee.
(2) The supervising optometrist is legally and professionally responsible for the actions of the temporary licensee.
(e) For the purposes of this chapter, “direct supervision” means that a supervising optometrist oversees the activities of, and accepts responsibility for, the services rendered by a temporary licensee. Direct supervision, as defined in this subdivision, requires that the supervising optometrist be physically present and immediately available in the facility or office in which the optometric services are being provided when the temporary licensee is with a patient.
(f) The supervising optometrist shall have a formal written procedure in place by which patients are informed that an optometrist with a temporary license will be performing the services. Additionally, the patient shall be informed that the supervising optometrist will be supervising the temporary licensee and the supervising optometrist will be identified to the patient. The temporary licensee shall note in the medical record the patient’s consent to this process prior to performing services authorized by this chapter.
(g) During the timeframe in which the temporary licensee holds a temporary license, the temporary licensee shall not open their own optometric office or place of practice.
(h) The temporary license shall expire either upon the date that the temporary licensee completes all of the requirements for licensure or six months after the date the state of emergency, proclaimed by the Governor on March 4, 2020, in response to the COVID-19 pandemic has ended, pursuant to Section 8629 of the Government Code, whichever occurs first.
(i) The supervising optometrist shall submit in writing to the board any violations of this chapter committed by the temporary licensee within 14 days of becoming aware of the violation.
(j) A person requesting to be a temporary licensee shall apply to the board pursuant to an application that shall be in substantially the following form, and may include any other information the board deems appropriate to safeguard the public from substandard optometric care, fraud, or other violation of this chapter:
“Application for Temporary License
Pursuant to Section 3046.1 of the Business and Professions Code, the board shall issue a temporary license to practice optometry to any person who applies for and is eligible for licensure pursuant to Section 3046 of the Business and Professions Code, but who is unable to immediately take the Part III - Patient Encounters and Performance Skills Examination developed by the National Board of Examiners in Optometry (NBEO), required for licensure under this chapter, due to the state of emergency, proclaimed by the Governor on March 4, 2020, in response to the COVID-19 pandemic. If eligible, you must also meet and maintain the following requirements to be a temporary licensee:
(1) Never been previously licensed to practice optometry in any state in the United States; and
(2) Receive confirmation via transcript or other correspondence from your accredited school of optometry that you meet the educational requirements to practice optometry.
To apply to be a temporary licensee, provide documentation for item (2) above with your application. All documentation must be provided, or the application will be rejected.
First, Middle, and Last Name:
Address (City, State, Zip Code):
Phone Number:
Email Address:
Social Security or ITIN number:
Date of Birth:
Name of School of Optometry:
Address of School of Optometry (City, State, Zip Code, Country):
Date Degree Conferred:
Name and License Number of Supervising Optometrist:
Date you completed the CLRE:
Regulations require the submission of fingerprints prior to issuance of the temporary license. Due to a change in the regulations, fingerprints are now checked by the Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI). Live Scan is required for California residents and a Manual Fingerprint Card is required for non-California residents.
I declare under penalty of perjury under the laws of the State of California that the information provided on this form and the attached documents or other requested proof of completion is true and accurate. I understand and agree that any misstatements of material facts may be cause for denial of the Application for Temporary License and disciplinary action by the State Board of Optometry.
Applicant Signature:
Date: ”
(k) A person requesting to be a supervising optometrist shall apply to the board pursuant to an application that shall be in substantially the following form, and may include any other information the board deems appropriate to safeguard the public from substandard optometric care, fraud, or other violation of this chapter:
“Application to be a Supervising Optometrist
Pursuant to Section 3046.1 of the Business and Professions Code, an individual may act as supervising optometrist to a temporary licensee, as defined in that section, if they meet the following conditions:
(1) Has been licensed for a minimum of five years; and
(2) Has been certified for the treatment of glaucoma pursuant to subdivision (c) of Section 3041.
To apply to be a supervising optometrist, provide documentation for items (1) and (2) above with your application. All documentation must be provided, or the application will be rejected.
First, Middle, and Last Name:
Address of Record:
Phone Number:
Email Address:
License Number:
Name of temporary licensee whom you will be
supervising:
1. I declare under penalty of perjury under the laws of the State of California that the information provided on this form and the attached documents or other requested proof of completion is true and accurate. I understand and agree that any misstatements of material facts may be cause for denial of the application to be a Supervising Optometrist and disciplinary action by the State Board of Optometry.
AND
2. I declare under penalty of perjury under the laws of the State of California that I will comply with all duties as a supervising optometrist set forth in Section 3046.1 of the Business and Professions Code, and that pursuant to that section, I am legally and professionally responsible for the actions of the temporary licensee which may result in action being taken against my license in cases of temporary licensee misconduct.
Applicant Signature:
Date: ”
(l) The board is not required to adopt regulations pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) to carry out this section.

SEC. 5.

Section 4073.5 of the Business and Professions Code is amended to read:

4073.5.

(a) A pharmacist filling a prescription order for a prescribed biological product may select an alternative biological product only if all of the following:
(1) The alternative biological product is interchangeable.
(2) The prescriber does not personally indicate “Do not substitute,” or words of similar meaning, in the manner provided in subdivision (d).
(b) Within five days following the dispensing of a biological product, a dispensing pharmacist or the pharmacists’ designee shall make an entry of the specific biological product provided to the patient, including the name of the biological product and the manufacturer. The communication shall be conveyed by making an entry that can be electronically accessed by the prescriber through one or more of the following electronic records systems:
(1) An interoperable electronic medical records system.
(2) An electronic prescribing technology.
(3) A pharmacy benefit management system.
(4) A pharmacy record.
(c) Entry into an electronic records system as described in subdivision (b) is presumed to provide notice to the prescriber.
(d) If the pharmacy does not have access to one or more of the entry systems in subdivision (b), the pharmacist or the pharmacist’s designee shall communicate the name of the biological product dispensed to the prescriber using facsimile, telephone, electronic transmission, or other prevailing means, except that communication shall not be required in this instance to the prescriber when either of the following apply:
(1) There is no interchangeable biological product approved by the federal Food and Drug Administration for the product prescribed.
(2) A refill prescription is not changed from the product dispensed on the prior filling of the prescription.
(e) In no case shall a selection be made pursuant to this section if the prescriber personally indicates, either orally or in his or her own handwriting, “Do not substitute,” or words of similar meaning.
(1) This subdivision shall not prohibit a prescriber from checking a box on a prescription marked “Do not substitute,” provided that the prescriber personally initials the box or checkmark.
(2) To indicate that a selection shall not be made pursuant to this section for an electronic data transmission prescription, as defined in subdivision (c) of Section 4040, a prescriber may indicate “Do not substitute,” or words of similar meaning, in the prescription as transmitted by electronic data, or may check a box marked on the prescription “Do not substitute.” In either instance, it shall not be required that the prohibition on substitution be manually initialed by the prescriber.
(f) Selection pursuant to this section is within the discretion of the pharmacist, except as provided in subdivision (e). A pharmacist who selects an alternative biological product to be dispensed pursuant to this section shall assume the same responsibility for substituting the biological product as would be incurred in filling a prescription for a biological product prescribed by name. There shall be no liability on the prescriber for an act or omission by a pharmacist in selecting, preparing, or dispensing a biological product pursuant to this section. In no case shall the pharmacist select a biological product that meets the requirements of subdivision (a) unless the cost to the patient of the biological product selected is the same or less than the cost of the prescribed biological product. Cost, as used in this subdivision, includes any professional fee that may be charged by the pharmacist.
(g) This section shall apply to all prescriptions, including those presented by or on behalf of persons receiving assistance from the federal government or pursuant to the Medi-Cal Act set forth in Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code.
(h) When a selection is made pursuant to this section, the substitution of a biological product shall be communicated to the patient.
(i) The board shall maintain on its public Internet Web site a link to the current list, if available, of biological products determined by the federal Food and Drug Administration to be interchangeable.
(j) For purposes of this section, the following terms shall have the following meanings:
(1) “Biological product” has the same meaning that applies to that term under Section 351 of the federal Public Health Service Act (42 U.S.C. Sec. 262(i)).
(2) “Interchangeable” means a biological product that the federal Food and Drug Administration has determined meets the standards set forth in Section 262(k)(4) of Title 42 of the United States Code, or has been deemed therapeutically equivalent by the federal Food and Drug Administration as set forth in the latest addition or supplement of the Approved Drug Products with Therapeutic Equivalence Evaluations.
(3) “Prescription,” with respect to a biological product, means a prescription for a product that is subject to Section 503(b) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 353(b)).
(k) This section does not prohibit the administration of immunizations, as permitted in Section 4052.
(l) This section does not prohibit a disability insurer or health care service plan from requiring prior authorization or imposing other appropriate utilization controls in approving coverage for any biological product.

SEC. 6.

Section 4602 of the Business and Professions Code is amended to read:

4602.

(a) The California Massage Therapy Council, as described in subdivision (d) of Section 4601, is hereby established and shall carry out the responsibilities and duties set forth in this chapter.
(b) (1) The council may take any reasonable actions necessary to carry out the responsibilities and duties set forth in this chapter, including, but not limited to, hiring staff, entering into contracts, and developing policies, procedures, rules, and bylaws to implement this chapter.
(2) Notwithstanding any other law, the total annual salary for any individual employed or contracted by the council shall not exceed the annual salary provided pursuant to Section 11550 of the Government Code during that fiscal year.
(c) The council may require background checks for all employees, contractors, volunteers, and board members as a condition of their employment, formation of a contractual relationship, or participation in council activities.
(d) The council shall issue a certificate to an individual applicant who satisfies the requirements of this chapter for that certificate.
(e) The council is authorized to determine whether the information provided to the council in relation to the certification of an applicant is true and correct and meets the requirements of this chapter. If the council has any reason to question whether the information provided is true or correct, or meets the requirements of this chapter, the council is authorized to make any investigation it deems necessary to establish that the information received is accurate and satisfies any criteria established by this chapter. The applicant has the burden to prove that they are entitled to certification.
(f) The council shall be governed by a board of directors composed of 13 members who shall be chosen in the following manner:
(1) One member shall be a representative of the League of California Cities, unless that entity chooses not to exercise this right to appoint.
(2) One member shall be a representative of the California Police Chiefs Association, unless that entity chooses not to exercise this right to appoint.
(3) One member shall be a representative of the California State Association of Counties, unless that entity chooses not to exercise this right to appoint.
(4) One member shall be a representative of an “anti-human trafficking” organization to be determined by the council. This organization shall appoint one member, unless the organization chooses not to exercise this right to appoint.
(5) One member shall be a member of the public appointed by the Director of the Department of Consumer Affairs, unless the director chooses not to exercise this right to appoint.
(6) One member who represents an approved massage school shall be appointed by the California Association of Private Postsecondary Schools, unless that entity chooses not to exercise this right to appoint.
(7) One member shall be appointed by the American Massage Therapy Association, California Chapter, who shall be a California-certified massage therapist or massage practitioner who is a California resident and who has been practicing massage for at least three years, unless that entity chooses not to exercise this right to appoint.
(8) One member shall be a public health official representing a city, county, city and county, or state health department, to be determined by the council. The city, county, city and county, or state health department chosen, shall appoint one member unless that entity chooses not to exercise this right to appoint.
(9) (A) Two members shall each be a certified massage therapist or a certified massage practitioner who is a California resident who has practiced massage for at least three years prior to the appointment, selected by a professional society, association, or other entity the membership of which is composed of massage therapist professionals, and that chooses to participate in the council. To qualify, a professional society, association, or other entity shall have a dues-paying membership in California of at least 1,000 individuals, have been established since 2000, and shall have bylaws that require its members to comply with a code of ethics.
(B) If there are more than two professional societies, associations, or other entities that meet the requirements of subparagraph (A), the appointments shall rotate based on a four-year term between each of the qualifying entities. The qualifying entity shall maintain its appointment authority during the entirety of the four-year term during which it holds the appointment authority. The order in which a qualifying professional society, association, or other entity has the authority to appoint shall be determined by alphabetical order based on the full legal name of the entity as of January 1, 2014.
(10) The members appointed to the board in accordance with paragraphs (1) to (9), inclusive, shall appoint three additional members, at a duly held board meeting in accordance with the board’s bylaws. One of those appointees shall be an attorney licensed by the State Bar of California who has been practicing law for at least three years and who at the time of appointment represents a city, county, or a city and county in the state. One of those appointees shall represent a massage business entity that has been operating in the state for at least three years. The council shall establish in its bylaws a process for appointing an additional member, provided that the member has knowledge of the massage industry or can bring needed expertise to the operation of the council for purposes of complying with Section 4603.
(g) Any decision to change the appointing authority of any member appointed to the board pursuant to paragraphs (1) to (9), inclusive, of subdivision (f) shall not be effective unless the current member has completed their term under subdivision (h) or the appointment is vacant.
(h) (1) Board member terms shall be for four years and until the appointment and qualification of their successor or until one year from the expiration of the term for which the member was appointed, whichever occurs first. A board member who has served two terms shall not be eligible for reappointment to the board regardless of the appointing authority. Any board member who, as of January 1, 2025, has served on the board for 8 out of the preceding 10 years, regardless of the appointing authority, shall vacate their appointment no later than July 1, 2025.
(2) A board member may be removed only by their appointing authority under the conditions provided in Section 106.
(i) The board of directors shall establish fees reasonably related to the cost of providing services and carrying out its ongoing responsibilities and duties. Initial and renewal fees for certificates shall be in an amount sufficient to support the functions of the council in the administration of this chapter, but in no event shall exceed three hundred dollars ($300). The renewal fee shall be reassessed biennially by the board.
(j) Prior to holding a meeting to vote upon a proposal to increase the certification fees, the board shall provide at least 90 days’ notice of the meeting, including posting a notice on the council’s internet website unless at least two-thirds of the board members concur that there is an active threat to public safety and that voting at a meeting without prior notice is necessary. However, the board shall not waive the requirements of subdivision (l).
(k) If the board approves an increase in the certification fees, the council shall update all relevant areas of its internet website and notify all certificate holders and affected applicants by email within 14 days of the board’s action.
(l) The meetings of the council shall be subject to the rules of the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code). The board may adopt additional policies and procedures that provide greater transparency to certificate holders and the public than required by the Bagley-Keene Open Meeting Act. Except as otherwise provided in this chapter, meetings of the council shall be governed by either Rosenberg’s Rules of Order or Robert’s Rules of Order, Newly Revised.
(m) (1) The council shall provide a meaningful opportunity for public participation in the adoption, amendment, or repeal of any policies, procedures, rules, or bylaws that substantially impact the rights, benefits, privileges, duties, obligations, or responsibilities of individuals or entities subject to certification or approval by the council, including, but not limited to, actions by the council to increase fees, impose additional requirements for certification or approval, or substantively modify the disciplinary processes.
(2) For purposes of this subdivision, the council shall, at a minimum, publish the complete text of any policies, procedures, rules, or bylaws proposed for adoption, amendment, or repeal along with a summary of the changes being considered for a period of at least 45 calendar days before the adoption, amendment, or repeal. The council shall accept written public comments during the 45-day period and allow further public comment during a meeting held for these purposes.
(n) The council shall assess its contact with non-English speakers. Based on this assessment, the council shall offer and make available all publicly available written and electronic materials provided to certificate holders and applicants in languages other than English that the council determines will be used by a substantial number of non-English speakers who are in contact with the council. This subdivision shall not apply to examinations, denial and disciplinary legal documents, and email communications. The council shall provide a report to the Legislature on the findings of its assessment of contact with non-English speakers on or before January 1, 2019.
(o) (1) Beginning July 1, 2027, the council shall, to the extent practicable, make the records of the council available for public inspection in a manner consistent with the California Public Records Act (Division 10 (commencing with Section 7920.000) of the Government Code), as though the council were a public agency for purposes of that act.
(2) The council may charge for the direct costs of responding to requests for records pursuant to this subdivision, including staff time reasonably required to identify, locate, and provide records.
(3) It is the intent of the Legislature in enacting this subdivision that, in addition to having all exemptions under the California Public Records Act (Division 10 (commencing with Section 7920.000) of the Government Code) apply, the council shall not disclose investigatory records or records containing sensitive information, including law enforcement activities or personally identifying information regarding applicants, certificate holders, employers of certificate holders or other employer staff, council employees and contractors, massage school owners and staff, or other members of the public, including potential victims or survivors of human trafficking, sexual assault, or other crimes.

SEC. 7.

Section 4610 of the Business and Professions Code is amended to read:

4610.

(a) An applicant for a certificate shall not be denied a certificate, and a certificate holder shall not be disciplined pursuant to this chapter except according to procedures that satisfy the requirements of this section. Denial or discipline that is not in accord with this section shall be void and without effect.
(b) The council may discipline a certificate holder by any, or a combination, of the following methods:
(1) Placing the certificate holder on probation, which may include limitations or conditions on practice.
(2) Suspending the certificate and the rights conferred by this chapter on a certificate holder for a period not to exceed one year.
(3) Suspending or staying the disciplinary order, or portions of it, with or without conditions.
(4) Revoking the certificate.
(5) Taking other action as the council deems proper, as authorized by this chapter or policies, procedures, rules, or bylaws adopted by the board.
(c) The council may issue an initial certificate on probation, with specific terms and conditions, to any applicant.
(d) Any denial or discipline shall be decided upon and imposed in good faith and in a fair and reasonable manner. Any procedure that conforms to the requirements of subdivision (e) is fair and reasonable.
(e) A procedure is fair and reasonable and meets requirements for fair procedure if the procedures specified in subdivision (f) or (g) are followed or if all of the following apply:
(1) Denial or discipline shall be based on a preponderance of the evidence. In determining the basis for the denial or discipline and making a final decision that denial or discipline shall be imposed, the council may consider all written documents or statements as evidence, but shall weigh the reliability of those documents or statements. A final decision to deny or impose discipline may be based solely on a written statement or declaration made under penalty of perjury and the individual providing the written statement or declaration made under penalty of perjury shall not be required to appear at an oral hearing or provide additional documents or information beyond the written statement or declaration made under penalty of perjury that was already provided.
(2) The provisions of the procedure are publicly available on the council’s internet website.
(3) The council provides 15 calendar days prior notice of the denial or discipline and the reasons for the denial or discipline.
(4) The council provides an opportunity for the applicant or certificate holder, to be heard, orally or in writing, not less than five days before the effective date of the denial or discipline, by a qualified person or body authorized to decide whether the proposed denial or discipline should go into effect.
(f) (1) Notwithstanding any other law, if the council receives notice that a certificate holder has been arrested and charges have been filed by the appropriate prosecuting agency against the certificate holder alleging a violation of subdivision (b) of Section 647 of the Penal Code or any other offense described in paragraph (11) of subdivision (a) of Section 4609, the council shall immediately suspend, on an interim basis, the certificate of that certificate holder, and take all of the following additional actions:
(A) Notify the certificate holder at the address last filed with the council that the certificate has been suspended and the reason for the suspension within 10 business days.
(B) Provide notification of the suspension by email to the clerk or other designated contact of the city, county, or city and county in which the certificate holder lives or works, pursuant to the council’s records, within 10 business days.
(C) Provide notification of the suspension by email or first-class mail to any establishment or employer, whether public or private, that the council has in its records as employing the certificate holder, within 10 business days.
(2) Upon notice to the council that the charges described in paragraph (1) have resulted in a conviction, the council shall permanently revoke the suspended certificate. The council shall provide notice to the certificate holder, at the address last filed with the council by a method providing delivery confirmation, within 10 business days that it has evidence of a valid record of conviction and that the certificate will be revoked unless the certificate holder provides evidence within 15 days from the date of the council’s mailing of the notice that the conviction is either invalid or that the information is otherwise erroneous.
(3) Upon notice that the charges described in paragraph (1) have resulted in an acquittal or have been otherwise dismissed prior to conviction, the certificate shall be immediately reinstated and the certificate holder and any establishment or employer that received notice pursuant to this section shall be notified of the reinstatement within 10 business days.
(g) (1) Notwithstanding any other law, if the council determines that a certificate holder has committed an act punishable as a sexually related crime or a felony that is substantially related to the qualifications, functions, or duties of a certificate holder, the council may immediately suspend the certificate of that certificate holder. A determination to immediately suspend a certificate pursuant to this subdivision shall be based upon a preponderance of the evidence and the council shall also consider any available credible mitigating evidence before making a decision. Written statements by any person shall not be considered by the council when determining whether to immediately suspend a certificate unless made under penalty of perjury. If the council suspends a certificate in accordance with this subdivision, the council shall take all of the following additional actions:
(A) Notify the certificate holder within 10 business days, at the address last filed with the council, by a method providing delivery confirmation, that the certificate has been suspended, the reason for the suspension, and that the certificate holder has the right to request a hearing pursuant to paragraph (2).
(B) Notify by email or any other means consistent with the notice requirements of this chapter, any business or employer, whether public or private, that the council has in its records as employing or contracting with the certificate holder for massage services, and the California city, county, or city and county that has jurisdiction over that establishment or employer, that the certificate has been suspended within 10 business days.
(2) A certificate holder whose certificate is suspended pursuant to this subdivision shall have the right to request, in writing, an oral hearing or consideration of a written statement to challenge the factual basis for the suspension. If the holder of the suspended certificate requests an oral hearing or consideration of a written statement on the suspension, the oral hearing or consideration of a written statement shall be held within 30 calendar days after receipt of the request. A holder whose certificate is suspended based on paragraph (1) shall be subject to revocation or other discipline in accordance with subdivision (a).
(3) If the council determines, after a hearing conducted pursuant to this subdivision, to lift the suspension, the certificate shall be immediately reinstated and the certificate holder, any establishment or employer, and the city, county, or city and county that has jurisdiction over that establishment or employer, that received notice pursuant to this section shall be notified of the reinstatement within 10 business days.
(h) Any notice required under this section may be given by any method reasonably calculated to provide actual notice. Any notice given by mail shall be given by first-class or certified mail sent to the last address of the applicant or certificate holder shown on the council’s records.
(i) An applicant or certificate holder may challenge a denial or discipline decision issued pursuant to this section in a court of competent jurisdiction. Any action challenging a denial or discipline, including any claim alleging defective notice, shall be commenced within 90 days after the effective date of the denial or discipline. Certification issued pursuant to this chapter is not a fundamental vested right and judicial review of denial and disciplinary decisions made by the council shall be conducted using the substantial evidence standard of review. If the action is successful, the court may order any relief, including reinstatement, that it finds equitable under the circumstances.
(j) (1) An applicant or certificate holder may request an appeal of a final decision by the council to deny a certificate or discipline a certificate holder by submitting a request in writing within 30 days of the date of the final decision. A request to appeal a final decision submitted pursuant to this paragraph shall be considered by a committee of the board of directors, who may convene in closed session for that purpose, within 120 days of the final decision.
(2) If a request to appeal submitted pursuant to paragraph (1) is granted, the appeal of the final decision to deny a certificate or discipline a certificate holder shall be heard at the next board of directors meeting with a date, as posted on the internet website of the council, that is at least 120 days from the date that the request to appeal was granted, unless a timely request for a continuance of the hearing date is granted. The council may, in its discretion, for good cause, continue the date an appeal may be heard, in which case the appeal shall be heard at a later board of directors meeting.
(3) The council shall notify the applicant or certificate holder of their right to request an appeal pursuant to paragraph (1) at the time of the final decision.
(k) This section governs only the procedures for denial or discipline decision and not the substantive grounds for the denial or discipline. Denial or discipline based upon substantive grounds that violates contractual or other rights of the applicant or certificate holder, or is otherwise unlawful, is not made valid by compliance with this section.

SEC. 8.

Section 4826.5 of the Business and Professions Code is amended to read:

4826.5.

Notwithstanding any other law, a licensed veterinarian, or a registered veterinary technician or veterinary assistant controlled substance permitholder under the supervision of a licensed veterinarian, may compound drugs for animal use pursuant to Section 530 of Title 21 of the Code of Federal Regulations and in accordance with regulations promulgated by the board. The regulations promulgated by the board shall, at a minimum, address the storage of drugs, the level and type of supervision required for compounding drugs by a registered veterinary technician or a veterinary assistant controlled substance permitholder, and the equipment necessary for the safe compounding of drugs. Any violation of the regulations adopted by the board pursuant to this section shall constitute grounds for an enforcement or disciplinary action.

SEC. 9.

Section 4858 of the Business and Professions Code is amended to read:

4858.

(a) Except for the first renewal period, all holders of veterinarian licenses and veterinary technician registrations issued under the provisions of this chapter shall obtain continuing education relevant to developments in the practice of veterinary medicine.
(b) A person applying for renewal of their license or registration in active status shall certify, under penalty of perjury, that they are in compliance with this article, as applicable.
(c) The board may audit the records of all applicants to verify the completion of the continuing education requirement. Applicants shall maintain records of completion of required continuing education coursework for a period of four years and shall make these records available to the board upon request for auditing purposes. If the board, during this audit, questions whether any course reported by the applicant satisfies the continuing education requirement, the applicant shall provide information to the board concerning the content of the course, course hours, and the name of its sponsor and cosponsor.
(d) An applicant may apply for an inactive license or to restore an inactive license under the provisions of Article 9 (commencing with Section 700) of Chapter 1.
(e) Notwithstanding Section 4858.1, the board, in its discretion, may exempt from the continuing education requirement an applicant who for reasons of health, military service, or undue hardship cannot meet those requirements. Applications for waivers shall be submitted on a form provided by the board.

SEC. 10.

Section 6126.7 of the Business and Professions Code is amended to read:

6126.7.

(a) It is a violation of subdivision (a) of Section 6126 for any person who is not an attorney to literally translate from English into another language, in any document, including an advertisement, stationery, letterhead, business card, or other comparable written material, any words or titles, including, but not limited to, “notary public,” “notary,” “licensed,” “attorney,” or “lawyer,” that imply that the person is an attorney. As provided in this subdivision, the literal translation of the phrase “notary public” into Spanish as “notario publico” or “notario,” is expressly prohibited.
(b) For purposes of this section, “literal translation of” or “to literally translate” a word, title, or phrase from one language means the translation of a word, title, or phrase without regard to the true meaning of the word or phrase in the language that is being translated.
(c) (1) In addition to any other remedies and penalties prescribed in this article, a person who violates this section shall be subject to a civil penalty not to exceed one thousand dollars ($1,000) per day for each violation, to be assessed and collected in a civil action brought by the State Bar.
(2) In assessing the amount of the civil penalty, the court may consider relevant circumstances presented by the parties to the case, including, but not limited to, the following:
(A) The nature and severity of the misconduct.
(B) The number of violations.
(C) The length of time over which the misconduct occurred, and the persistence of the misconduct.
(D) The willfulness of the misconduct.
(E) The defendant’s assets, liabilities, and net worth.
(3) The court shall grant a prevailing plaintiff reasonable attorneys’ fees and costs.
(4) A civil action brought under this section shall be commenced within four years after the cause of action accrues.
(5) In a civil action brought by the State Bar under this section, the civil penalty collected shall be paid to the State Bar and allocated to the fund established pursuant to Section 6033 to provide free legal services related to immigration reform act services to clients of limited means or to a fund for the purposes of mitigating unpaid claims of injured immigrant clients under Section 22447, as directed by the Board of Trustees of the State Bar. The board shall annually report any collection and expenditure of funds for the preceding fiscal year, as authorized by this section, to the Assembly and Senate Committees on Judiciary. The report required by this section may be included in the report described in Section 6086.15.

SEC. 11.

Section 16608 of the Business and Professions Code is amended to read:

16608.

(a) For purposes of this section, the following definitions apply:
(1) “Contract” includes a promise, undertaking, contract, or agreement, whether written or oral, express or implied.
(2) “Debt” means money, personal property, or their equivalent that is due or owing or alleged to be due or owing from a natural person to another person, including, but not limited to, for employment-related costs, education-related costs, or a consumer financial product or service, regardless of whether the debt is certain, contingent, or incurred voluntarily.
(3) “Debt collector” has the same meaning as defined in subdivision (c) of Section 1788.2 of the Civil Code.
(4) “Employer” means any person or entity that employs workers. “Employer” includes any parent company, subsidiary, division, affiliate, contractor, hiring party, or third-party agent of an employer.
(5) “Freelance worker” has the same meaning as defined in subdivision (a) of Section 18101.
(6) “Misconduct” has the same meaning as in Section 1256 of the Unemployment Insurance Code.
(7) “Penalty, fee, or cost” includes, but is not limited to, a replacement hire fee, retraining fee, replacement fee, quit fee, reimbursement for immigration or visa-related costs, liquidated damages, lost goodwill, and lost profit.
(8) “Person” means a natural person or an entity, including, but not limited to, a corporation, partnership, association, trust, limited liability company, cooperative, or other organization.
(9) “Training provider” means an entity, whether or not affiliated with an employer, that provides an educational program, as defined in Section 94837 of the Education Code, a job training program, or a skills training program.
(10) “Transferable credential” means a degree that is offered by a third-party institution that is accredited and authorized to operate in the state, is not required for a worker’s current employment, and is transferable and useful for employment beyond the worker’s current employer.
(11) “Worker” means a natural person who is permitted to work for or on behalf of an employer or business entity, or who is permitted to participate in any other work relationship, job training program, or skills training program. “Worker” includes, but is not limited to, an employee or prospective employee.
(b) (1) Except as provided in paragraph (2), for contracts entered into on or after January 1, 2026, it shall be unlawful to include in any employment contract, or to require a worker to execute as a condition of employment or a work relationship a contract that includes, a contract term that does any of the following:
(A) Requires the worker to pay an employer, training provider, or debt collector for a debt if the worker’s employment or work relationship with a specific employer terminates.
(B) Authorizes the employer, training provider, or debt collector to resume or initiate collection of or end forbearance on a debt if the worker’s employment or work relationship with a specific employer terminates.
(C) Imposes any penalty, fee, or cost on a worker if the worker’s employment or work relationship with a specific employer terminates.
(2) This section does not apply to any of the following:
(A) A contract entered into under any loan repayment assistance program or loan forgiveness program provided by a federal, state, or local governmental agency.
(B) A contract related to the repayment of the cost of tuition for a transferable credential that meets all of the following requirements:
(i) The contract is offered separately from any contract for employment.
(ii) The contract does not require obtaining the transferable credential as a condition of employment.
(iii) The contract specifies the repayment amount before the worker agrees to the contract, and the repayment amount does not exceed the cost to the employer of the transferable credential received by the worker.
(iv) The contract provides for a prorated repayment amount during any required employment period that is proportional to the total repayment amount and the length of the required employment period and does not require an accelerated payment schedule if the worker separates from the employment.
(v) The contract does not require repayment to the employer by the worker if the worker is terminated, except if the worker is terminated for misconduct.
(C) A contract related to enrollment in an apprenticeship program approved by the Division of Apprenticeship Standards.
(D) A contract for the receipt of a discretionary or unearned monetary payment, including a financial bonus, at the outset of employment that is not tied to specific job performance, provided that all of the following conditions are met:
(i) The terms of any repayment obligation are set forth in a separate agreement from the primary employment contract.
(ii) The employee is notified that they have the right to consult an attorney regarding the agreement and provided with a reasonable time period of not less than five business days to obtain advice of counsel prior to executing the agreement.
(iii) Any repayment obligation for early separation from employment is not subject to interest accrual and is prorated based on the remaining term of any retention period, which shall not exceed two years from the receipt of payment.
(iv) The worker has an option to defer receipt of the payment to the end of a fully served retention period without any repayment obligation.
(v) Separation from employment prior to the retention period was at the sole election of the employee, or at the election of the employer for misconduct.
(E) A contract related to the lease, financing, or purchase of residential property, including, but not limited to, a contract pursuant to the California Residential Mortgage Lending Act (Division 20 (commencing with Section 50000) of the Financial Code).
(c) A contract that is unlawful under subdivision (b) is a contract restraining a person from engaging in a lawful profession, trade, or business, and is void under Section 16600 only if the contract was entered into on or after January 1, 2026.
(d) The rights, remedies, and penalties established by this section are cumulative and shall not be construed to supersede or limit the rights, remedies, or penalties established under other laws, or to limit the ability of any other person or entity to pursue enforcement of rights, remedies, or penalties established under other laws, including, but not limited to:
(1) Obligations of employers under Section 2802 of the Labor Code.
(2) Article 1.5 (commencing with Section 2775) of Chapter 2 of Division 3 of the Labor Code.
(3) The Unfair Competition Law (Chapter 5 (commencing with Section 17200)).

SEC. 12.

Section 17810 of the Business and Professions Code is amended to read:

17810.

(a) A seller that uses a fixed term installment contract entered into or modified on or after August 1, 2026, shall not charge a fee to a consumer who terminates the fixed term installment contract unless, at the time of entering the initial contract, the contract includes a clear and conspicuous written disclosure of either of the following, which shall be viewable by the consumer without reliance upon a tooltip, additional hyperlink, or any other feature that requires additional user interaction:
(1) The total cost of the early termination fee.
(2) The formula used to calculate the early termination fee and the highest possible early termination fee under the contract.
(b) A provider of broadband internet access service on its own, or as part of a bundle, that complies with federal broadband consumer requirements, including the broadband consumer label, codified in 47 C.F.R. Sec. 8.1(a), and its affiliates and subsidiaries, shall be deemed compliant with this section for all services sold on their own or as part of that bundle.

SEC. 13.

Section 714.6 of the Civil Code is amended to read:

714.6.

(a) Recorded covenants, conditions, restrictions, or private limits on the use of private or publicly owned land contained in any deed, contract, security instrument, reciprocal easement agreement, or other instrument affecting the transfer or sale of any interest in real property that restrict or prohibit the residential uses of the property, the number, size, or location of the residences that may be built on the property, or that restrict the number of persons or families who may reside on the property, shall not be enforceable against the owner of a housing development, if an approved restrictive covenant housing modification document has been recorded in the public record as provided for in this section, except as explicitly provided in this section.
(b) (1) The owner of a housing development shall be entitled to establish that an existing restrictive covenant is unenforceable pursuant to subdivision (a) by submitting a restrictive covenant modification document pursuant to Section 12956.2 of the Government Code that modifies or removes any existing restrictive covenant language that restricts or prohibits the residential uses of the property, the number, size, or location of the residences that may be built on the property, or that restricts the number of persons or families that may reside on the property, to the extent necessary to allow the housing development to proceed under the existing declaration of restrictive covenants.
(2) (A) The owner shall submit to the county recorder a copy of the original restrictive covenant, a copy of any notice the owner believes is required pursuant to paragraph (3) of subdivision (g), and any documents the owner believes necessary to establish that the property qualifies as a housing development under this section prior to, or simultaneously with, the submission of the request for recordation of the restrictive covenant modification document.
(B) Before recording the restrictive covenant modification document, pursuant to subdivision (b) of Section 12956.2 of the Government Code, the county recorder shall, within five business days of receipt, submit the documentation provided to the county recorder by the owner pursuant to subparagraph (A) and the modification document to the county counsel for review. The county counsel shall determine whether the original restrictive covenant document restricts the property in a manner prohibited by subdivision (a), whether the owner has submitted documents sufficient to establish that the property qualifies as a housing development under this section, whether any notice required under this section has been provided, whether any exemption provided in subdivision (g) or (h) applies, and whether the restriction may no longer be enforced against the owner of the housing development and that the owner may record a modification document pursuant to this section.
(C) Pursuant to Section 12956.2 of the Government Code, the county counsel shall return the documents and inform the county recorder of the county counsel’s determination within 15 days of submission to the county counsel. If the county counsel is unable to make a determination, the county counsel shall specify the documentation that is needed in order to make the determination. If the county counsel has authorized the county recorder to record the modification document, that authorization shall be noted on the face of the modification or on a cover sheet affixed thereto, and the county recorder shall notify the owner or submitting party of the county counsel’s determination without delay so that the notice described in subparagraph (D) may be given.
(D) Upon being notified that the county counsel has authorized the county recorder to record the modification document, the owner may mail, by certified mail to anyone who the owner knows has an interest in the property or in the restrictive covenant, a copy of the modification document, together with a copy of this section and a written explanation that the modification has been applied for and approved for recordation by the county counsel pursuant to this section. That notice shall be deemed given if the notice is actually received by the intended recipient or if the notice is mailed by certified mail both to an address for notice indicated in the restrictive covenant, if any, and to the intended recipient’s address as shown in the last equalized assessment roll, if that address reasonably can be ascertained from the assessment roll. The owner may also publish notice pursuant to Section 6061 of the Government Code identifying that a modification document pursuant to this section has been submitted to the county recorder and approved for recordation by the county counsel, and that the modification document is available for public inspection in the office of the county recorder. The notice shall also identify the property by assessor’s parcel number and mailing address. If no mailing address has been assigned for the property, then the property shall be identified instead by its nearest intersection. If the owner elects to publish notice in this manner, then notice shall be deemed given to anyone whose interest does not appear of record or for whom an address for notice does not appear of record and cannot reasonably be ascertained from the assessment roll. Notice as described in this subparagraph is optional, and failure to provide it shall not, in any manner, invalidate a restrictive covenant modification document recorded pursuant to this section.
(E) The county recorder shall not record the modification document if the county counsel finds that the original restrictive covenant document does not contain a restriction prohibited by this section or if the county counsel finds that the property does not qualify as a housing development. If the owner of the property is not yet its record title owner, but is instead a beneficial owner with a right pursuant to a purchase and sale or similar agreement to purchase the property, then the owner shall not record the modification document until the owner closes escrow on the property and becomes its record title owner.
(F) A modification document shall be indexed in the same manner as the original restrictive covenant document being modified. It shall contain a recording reference to the original restrictive covenant document, in the form of a book and page or instrument number, and date of the recording. The effective date of the terms and conditions of the modification document shall be the same as the effective date of the original restrictive covenant document, subject to any intervening amendments or modifications, except to the extent modified by the recorded modification document.
(3) If the holder of an ownership interest of record in property causes to be recorded a modification document pursuant to this section that modifies or removes a restrictive covenant that is not authorized by this section, the county shall not incur liability for recording the document. The liability that may result from the unauthorized recordation shall be the sole responsibility of the holder of the ownership interest of record who caused the unauthorized recordation.
(4) A restrictive covenant that was originally invalidated by this section shall become and remain enforceable while the property subject to the restrictive covenant modification is utilized in any manner that violates the terms of the restrictions required by this section.
(5) If the property is utilized in any manner that violates the terms of the restrictions required by this section, the city or county may, after notice and an opportunity to be heard, record a notice of that violation. If the owner complies with the applicable restrictions, the owner may apply to the agency of the city or county that recorded the notice of violation for a release of the notice of violation, and, if approved by the city or county, a release of the notice of violation may be recorded.
(6) The county recorder may charge a standard recording fee to an owner who submits a modification document for recordation pursuant to this section.
(c) (1) Subject to paragraph (2), this section shall only apply to restrictive covenants that restrict or prohibit the residential uses of the property, the number, size, or location of the residences that may be built on a property, or that restrict the number of persons or families who may reside on a property. This section does not apply to any other covenant, including, but not limited to, covenants that:
(A) Relate to purely aesthetic objective design standards, as long as the objective design standards are not applied in a manner that renders the housing development infeasible.
(B) Provide for fees or assessments for the maintenance of common areas.
(C) Provide for limits on the amount of rent that may be charged to tenants.
(2) Paragraph (1) shall not apply to restrictive covenants, fees, and assessments that have not been consistently enforced or assessed prior to the construction of the housing development.
(d) (1) Any suit filed by a party that is deemed to have been given notice as described in subparagraph (D) of paragraph (2) of subdivision (b), which challenges the validity of a restrictive covenant modification document pursuant to this section, shall be filed within 35 days of that notice.
(2) In any suit filed to enforce the rights provided in this section or defend against a suit filed against them, a prevailing owner of a housing development, and any successors or assigns, or a holder of a conservation easement, shall be entitled to recover, as part of any judgment, litigation costs and reasonable attorney’s fees, provided that any judgment entered shall be limited to those costs incurred after the modification document was recorded as provided by subdivision (b).
(3) This subdivision shall not prevent the court from awarding any prevailing party litigation costs and reasonable attorney’s fees otherwise authorized by applicable law, including, but not limited to, subdivision (d) of Section 815.7.
(e) This section shall not be interpreted to modify, weaken, or invalidate existing laws protecting affordable and fair housing and prohibiting unlawful discrimination in the provision of housing, including, but not limited to, prohibitions on discrimination in, or resulting from, the enforcement of restrictive covenants.
(f) (1) Provided that the restrictions are otherwise compliant with all applicable laws, this section does not invalidate local building codes or other rules regulating either of the following:
(A) The number of persons who may reside in a dwelling.
(B) The size of a dwelling.
(2) This section shall not be interpreted to authorize any development that is not otherwise consistent with state housing laws or the local general plan, zoning ordinances, and any applicable specific plan that apply to the housing development, including any requirements regarding the number of residential units, the size of residential units, and any other zoning restriction relevant to the housing development.
(3) This section does not prevent a housing development from receiving any bonus or incentive pursuant to any statute listed in Section 65582.1 of the Government Code or any related local ordinance.
(g) (1) Subject to paragraph (2), this section does not apply to:
(A) Any conservation easement, as defined in Section 815.1, that is recorded as required by Section 815.5, and held by any of the entities or organizations set forth in Section 815.3.
(B) Any interest in land comparable to a conservation easement that is held by any political subdivision and recorded in the office of the county recorder of the county where the land is situated.
(2) The exclusion from this section of conservation easements held by tax-exempt nonprofit organizations, as provided in subparagraph (A) of paragraph (1), applies only if the conservation easement satisfies one or more of the following:
(A) It was recorded in the office of the county recorder where the property is located before January 1, 2022.
(B) It is, as of the date of recordation of the conservation easement, held by a land trust or other entity that is accredited by the Land Trust Accreditation Commission, or any successor organization, or is a member of the California Council of Land Trusts, or any successor organization, and notice of that ownership is provided in the text of the recorded conservation easement document, or if that notice is not provided in the text of the recorded conservation easement document, the land trust or other entity provides documentation of that accreditation or membership within 30 days of receipt of either of the following:
(i) A written request for that documentation.
(ii) Any written notice of the intended modification of the conservation easement provided pursuant to paragraph (3).
(C) It was funded in whole or in part by a local, state, federal, or tribal government or was required by a local, state, federal, or tribal government as mitigation for, or as a condition of approval of, a project, and notice of that funding or mitigation requirement is provided in the text of the recorded conservation easement document.
(D) It is held by a land trust or other entity whose purpose is to conserve or protect indigenous cultural resources, and that purpose of the land trust or other entity is provided in the text of the recorded conservation easement document.
(E) It, as of the date of recordation of the conservation easement, burdens property that is located entirely outside the boundaries of any urbanized area or urban cluster, as designated by the United States Census Bureau.
(3) (A) At least 60 days before submission of a modification document modifying a conservation easement to a county recorder pursuant to subdivision (b), the owner of a housing development shall provide written notice of the intended modification of any conservation easement to the parties to that conservation easement and any third-party beneficiaries or other entities that are entitled to receive notice of changes to or termination of the conservation easement with the notice being sent to the notice address of those parties as specified in the recorded conservation easement. The notice shall include a return mailing address of the owner of the housing development, the approximate number, size, and location of intended structures to be built on the property for the purposes of housing, and a copy of the intended modification document, and shall specify that it is being provided pursuant to this section.
(B) The county recorder shall not record any restrictive covenant modification document unless the county recorder has received confirmation from the county counsel that any notice required pursuant to subparagraph (A) was provided in accordance with subparagraph (A).
(h) This section shall not apply to any settlement, conservation agreement, or conservation easement, notice of which has been recorded, for which either of the following apply:
(1) It was entered into before January 1, 2022, and limits the density of or precludes development in order to mitigate for the environmental impacts of a proposed project or to resolve a dispute about the level of permitted development on the property.
(2) It was entered into after January 1, 2022, and limits the density of or precludes development where the settlement is approved by a court of competent jurisdiction and the court finds that the density limitation is for the express purpose of protecting the natural resource or open-space value of the property.
(i) The provisions of this section shall not apply to any recorded deed restriction, public access easement, or other similar covenant that was required by a state agency for the purpose of compliance with a state or federal law, provided that the recorded deed restriction, public access easement, or similar covenant contains notice within the recorded document, inclusive of its recorded exhibits, that it was recorded to satisfy a state agency requirement.
(j) For purposes of this section:
(1) (A) “Housing development” means a development located on the property that is the subject of the recorded restrictive covenant and that meets one of the following requirements:
(i) The property is subject to a recorded affordability restriction requiring 100 percent of the units, exclusive of a manager’s unit or units, be made available at affordable rent to, and be occupied by, lower income households for 55 years for rental housing, unless a local ordinance or the terms of a federal, state, or local grant, tax credit, or other project financing requires, as a condition of the development of residential units, that the development include a certain percentage of units that are affordable to, and occupied by, low-income, lower income, very low income, or extremely low income households for a term that exceeds 55 years for rental housing units.
(ii) The property is owned or controlled by an entity or individual that has submitted a permit application to the relevant jurisdiction to develop a project that complies with clause (i).
(iii) The property is owned or controlled by an entity or individual that has submitted a development project application to redevelop an existing commercial property, and the development project includes residential uses permitted by state housing laws or local land use and zoning regulations.
(B) For purposes of subparagraph (A):
(i) “Controlled” includes, without limitation, the right to acquire the property under an option agreement, purchase and sale agreement, or similar agreement.
(ii) “Permit application” includes, without limitation, a building permit application, an application pursuant to Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code, including a preliminary application pursuant to Section 65941.1 of the Government Code, an application for a zoning or general plan amendment, an application for a specific plan or amendment to a specific plan, a notice of intent or an application for development pursuant to Section 65913.4 of the Government Code, or an application for development pursuant to Section 65912.110 of the Government Code.
(2) “Affordable rent” shall have the same meaning as defined in Section 50053 of the Health and Safety Code.
(3) “Lower income households” shall have the same meaning as defined in Section 50079.5 of the Health and Safety Code.
(4) “Modification document” means a restrictive covenant modification document described in paragraph (1) of subdivision (b).
(5) “Owner” means any record title owner of the property, any beneficial owner of the property, or an entity or individual controlling the property for purposes of paragraph (1).
(6) “Restrictive covenant” means any recorded covenant, condition, restriction, or limit on the use of private or publicly owned land contained in any deed, contract, security instrument, reciprocal easement agreement, or other instrument affecting the transfer or sale of any interest that restricts or prohibits the residential uses of the property, the number, size, or location of the residences that may be built on the property, or that restricts the number of persons or families who may reside on the property, as described in subdivision (a). “Restrictive covenant” does not include an easement set forth in a reciprocal easement agreement or other recorded instrument.

SEC. 14.

Section 798.14 of the Civil Code is amended to read:

798.14.

(a) For the purposes of this section, “affirmative, written consent” means express written consent obtained separately from, and not contained in, any lease or rental agreement and that is not a condition of the tenancy.
(b) Unless otherwise provided, all notices required by this chapter shall be either delivered personally to the homeowner and resident, or deposited in the United States mail, postage prepaid, addressed to the homeowner and resident at their site within the mobilehome park.
(c) All notices required by subdivisions (c) and (i) of Section 798.15 and by Section 798.43.1 to be delivered prior to February 1 of each year may be combined in one notice that contains all the information required by the sections under which the notices are given, and may be delivered to the homeowner and resident by electronic mail if the homeowner or resident has provided affirmative, written consent that clearly and conspicuously states that the homeowner or resident agrees to receive notices by electronic mail and includes the address to which the notices may be sent.
(d) A homeowner’s or resident’s affirmative, written consent to receive notices by electronic mail pursuant to subdivision (c) may be revoked by the homeowner or resident at any time, without any fee, charge, or penalty, and without any impact on the terms of the homeowner or resident’s tenancy. A homeowner’s or resident’s revocation shall be honored so long as it is in writing and indicates the intention of the homeowner or resident to no longer receive notices by electronic mail.
(e) (1) Management who obtains the affirmative, written consent of a homeowner or resident to receive notices by electronic mail pursuant to subdivision (c) shall, within five days, deliver personally or by mail to each homeowner or resident who gives consent the following notice, in English and any language set forth in subdivision (b) of Section 1632 used as the primary language during the negotiation of the rental agreement, in a clear and conspicuous manner, in at least 10-point Arial equivalent type:
“You have agreed to receive only electronic copies of notices that your mobilehome park management is required to send you by law. This means that you may not receive important notices on your door or in the mail. You may revoke this agreement, without any penalty or obligation, at any time. To revoke this agreement, send a written notice to your management that states that you no longer agree to receive electronic notices.”
(2) The notice described in paragraph (1) shall include the name and address of the entity to whom the homeowner or resident may deliver revocation of affirmative, written consent.

SEC. 15.

Section 798.74.4 of the Civil Code is amended to read:

798.74.4.

(a) The transfer or sale of a manufactured home or mobilehome in a mobilehome park is subject to the transfer disclosure requirements and provisions set forth in Article 1.5 (commencing with Section 1102) of Chapter 2 of Part 4. The requirements include, but are not limited to, the use of the Manufactured Home and Mobilehome Transfer Disclosure Statement set forth in Section 1102.6d.
(b) In the case of a sale or transfer of a mobilehome that will remain in the park, upon written request, a homeowner shall provide a copy of the Manufactured Home and Mobilehome Transfer Disclosure Statement required by subdivision (a) to management.

SEC. 16.

Section 1714.27 of the Civil Code is amended to read:

1714.27.

(a) Notwithstanding any other law, and except as provided in subdivision (b), a person not otherwise licensed to administer anti-seizure rescue medication, but who administers anti-seizure rescue medication at the scene of an emergency, in good faith and not for compensation, to a person who is experiencing, or is suspected of experiencing, a seizure shall not be subject to professional review, be liable in a civil action, or be subject to criminal prosecution for this administration so long as the person’s conduct is not grossly negligent and does not constitute willful or wanton misconduct.
(b) Subdivision (a) shall not apply to administration of anti-seizure rescue medication to a pupil on a schoolsite which shall, instead, comply with Article 4.6 (commencing with Section 49468) of Chapter 9 of Part 27 of Division 4 of Title 2 of the Education Code.

SEC. 17.

Section 3273.29 of the Civil Code is amended to read:

3273.29.

(a) It is the intent of the Legislature that a mortgage servicer offer a borrower forbearance that is consistent with the mortgage servicer’s contractual or other authority. This title does not require a mortgage servicer to take any action that would require the mortgage servicer to breach the terms of an existing contract with the investor that owns or insures the residential mortgage loan.
(b) It is the intent of the Legislature that this title not apply to servicing guidelines that are unrelated to disaster-related forbearance relief.

SEC. 18.

Section 4752 of the Civil Code is amended to read:

4752.

(a) Any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument, and any provision of a governing document shall be void and unenforceable to the extent that it prohibits, or includes conditions that have the effect of prohibiting, a substantially similar reconstruction of a residential structure that was destroyed or damaged in a disaster.
(b) A court shall award reasonable attorney’s fees to the owner of a separate interest in a common interest development who prevails in an action to enforce this section.
(c) For purposes of this section, the following definitions apply:
(1) “Disaster” means any of the following:
(A) A state of disaster or emergency declared by the federal government.
(B) A state of emergency proclaimed by the Governor pursuant to Section 8625 of the Government Code.
(C) A local emergency proclaimed by a local governing body or official pursuant to Section 8630 of the Government Code.
(2) “Objective design standard” means a standard that involves no personal or subjective judgment and is uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the applicant and the association before submittal.
(3) “Substantially similar reconstruction of a residential structure” means a proposal that rebuilds a residential structure on a separate interest located in a common interest development that complies with all of the following:
(A) (i) The local building code.
(ii) For purposes of this subparagraph, a proposal shall be considered to be in compliance with the local building code if the building permit is deemed approved by the local agency with appropriate jurisdiction.
(B) The interior livable square footage of the rebuilt residential structure will not exceed 110 percent of the square footage that existed when the structure was damaged or destroyed.
(C) The exterior footprint of the rebuilt residential structure will meet either of the following:
(i) The rebuilt residential structure will be constructed in the same location and to the same exterior dimensions as the structure that was damaged or destroyed.
(ii) The setbacks for the rebuilt residential structure will be at least four feet from the side and rear lot lines.
(D) The height of the rebuilt residential structure will not exceed 110 percent of the height that existed when the residential structure was damaged or destroyed, or 100 percent of the height allowed by the governing documents of the association in effect at the time the proposal was submitted, whichever is greater.
(E) Any objective design standard in effect at the time the original residential structure was destroyed or damaged in a disaster, provided that the standard does not unreasonably increase the cost to construct or effectively prohibit the construction of, or extinguish the ability to otherwise rebuild, a substantially similar residential structure.

SEC. 19.

Section 8811 of the Civil Code is amended to read:

8811.

(a) This section is applicable to a contract relating to a private work of improvement entered into on or after January 1, 2026.
(b) (1) (A) A retention payment withheld from a payment by an owner from the direct contractor, by the direct contractor from any subcontractor, and by a subcontractor from any subcontractor thereunder, for a private work of improvement, shall not exceed 5 percent of the payment.
(B) In no event shall the total retention proceeds withheld exceed 5 percent of the contract price.
(C) In a contract between the direct contractor and a subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention payment withheld shall not exceed the percentage specified in the contract between the owner and the direct contractor.
(2) Paragraph (1) does not apply to a direct contractor or subcontractor if the direct contractor or subcontractor provides written notice to a subcontractor before, or at, the time that the bid is requested that a faithful performance and payment bond shall be required, and a subcontractor subsequently fails to furnish to the direct contractor or subcontractor a performance and payment bond issued by an admitted surety insurer.
(3) Paragraph (1) does not apply to an owner, direct contractor, or subcontractor on a residential project if the project is not mixed use and does not exceed four stories.
(c) In any action to enforce the provisions of this section, a court shall award reasonable attorney’s fees to the prevailing party.

SEC. 20.

Section 697.680 of the Code of Civil Procedure is amended to read:

697.680.

(a) A judgment creditor may apply to the court for an order reinstating a released lien on personal property and its priority at the time of cancellation. Subject to subdivisions (b) and (c), the court shall order the reinstatement of a lien with the same priority that it held at the time of cancellation. Upon entry of the order the clerk shall do the following:
(1) Note in the court’s records that the judgment is no longer satisfied to the extent of the returned funds or property.
(2) Issue to the judgment creditor a certificate and notice of reinstatement of judgment lien. The certificate of reinstatement of judgment lien shall identify the judgment and parties, the unsatisfied judgment amount, and the filing number and date of the original notice of judgment lien filed with the Secretary of State.
(b) (1) The application for reinstatement of a lien under subdivision (a) shall be filed with a declaration by the judgment creditor that includes and certifies all of the following:
(A) The title of the court, the case name and number, and the date and amount of the original judgment and any renewals thereof.
(B) A statement that the judgment creditor released a lien or liens in the reasonable belief that the money judgment was satisfied. This statement shall include:
(i) Information sufficient to identify the liens that were released, including the county or counties in which an abstract of judgment was recorded, the recording dates and numbers of those recordings and, if applicable, the filing date and number of any notice of judgment lien on personal property that was filed with the Secretary of State.
(ii) The details of any acknowledgment of full or partial satisfaction of judgment that was filed or entered as a result of the prior application of funds, including the date, county, and recording number of any acknowledgment of full or partial satisfaction of judgment recorded by the judgment creditor.
(C) A statement that after a lien was released, the judgment creditor was ordered pursuant to paragraph (2) or (3) of subdivision (d) of Section 703.580 to return to the judgment debtor property levied or wages garnished in satisfaction of the money judgment. A copy of the order shall be attached as an exhibit to the declaration.
(D) A statement that the judgment creditor returned, and the judgment debtor received, all property and wages ordered returned.
(E) A statement that but for the court’s order pursuant to paragraph (2) or (3) of subdivision (d) of Section 703.580, the money judgment would have been fully satisfied or that the property returned to the judgment creditor was identified in a recorded acknowledgment of full or partial satisfaction of judgment.
(F) A statement that the judgment creditor is not appealing the order to return funds pursuant to subdivision (d) of Section 703.580.
(2) Knowingly providing false information shall be subject to a civil penalty in an amount up to one thousand five hundred dollars ($1,500).
(c) (1) The judgment creditor shall serve upon the judgment debtor by first-class mail to the address verified pursuant to paragraph (2) of subdivision (b) of Section 684.130 a copy of the application for an order reinstating a released lien.
(2) The judgment debtor may, within 15 days of service of the application, file a declaration stating that the funds or property identified by the judgment debtor pursuant to subparagraph (D) of paragraph (1) of subdivision (b) have not been returned.
(3) If a declaration under paragraph (2) is filed, the court shall deny the application and the judgment creditor shall file a noticed motion to be heard by the court in order to reinstate a lien and its priority.
(4) If no objection is filed, the clerk’s reinstatement of the lien and its priority shall be automatically effective.
(d) An application under this section shall be filed in the action in which the judgment creditor was ordered, pursuant to paragraph (2) or (3) of subdivision (d) of Section 703.580, to return to the judgment debtor property levied or wages garnished in satisfaction of the money judgment.
(e) Attorney’s fees are not recoverable under this section.
(f) The judgment creditor may record the certificate in the same manner as an abstract of judgment, and that recordation shall have the effect of restoring the lien’s priority as if the prior release or satisfaction had not occurred.

SEC. 21.

Section 1094.9 of the Code of Civil Procedure is amended to read:

1094.9.

(a) Notwithstanding any other provision of this chapter, an action or proceeding to review the denial of a permit or other entitlement for a housing development project or residential dwelling unit shall be conducted pursuant to subdivision (d), if the petitioner timely provides the notice described in paragraph (4) of subdivision (d).
(b) For purposes of this section, the following definitions apply:
(1) “Applicant” means a party that has submitted an application or requested a permit for a housing development project.
(2) “Department” means the Department of Housing and Community Development.
(3) “Disapproves the housing development project” has the same meaning as described in paragraph (6) of subdivision (h) of Section 65589.5 of the Government Code.
(4) “Housing development project” has the meaning set forth in paragraph (2) of subdivision (h) of Section 65589.5 of the Government Code. It includes housing development projects consisting of one residential unit.
(5) “Local agency” means a city, county, city and county, district, or other local authority.
(c) Actions brought pursuant to this section, including when on appeal from the decision of a lower court, shall be given preference over all other civil actions before the court when setting the matter for hearing or trial and holding the hearing or trial.
(d) The procedure set forth in this subdivision, supersedes anything to the contrary set forth in this chapter.
(1) An applicant, the Attorney General, or the department may bring any action under this section. The action shall be in the form of a petition for writ of mandate pursuant to Section 1085 or 1094.5, or both, as appropriate.
(2) Upon request of the applicant, or notice from the department or the Attorney General, the local agency shall prepare the record of its proceedings concurrently with the local agency’s proceedings.
(A) This record of proceedings shall include, at a minimum, the local agency’s decision, filings, notices, orders, transcripts of the local agency’s administrative proceedings pertaining to the housing development project, staff reports, and documents relied upon by the local agency in denying a permit or entitlement of the housing development project or residential dwelling unit.
(B) The parties shall meet and confer to certify the record of proceedings no later than 15 days after a petition for writ of mandate is served. Any disputed items shall be subject to a separate motion to be specially noticed on or before the date of the hearing on the writ petition, and in accordance with any local court rules.
(C) The cost of preparation of the administrative record shall be borne by the local agency, unless the petitioner elects to prepare the record.
(3) The record of the proceedings before the local agency shall be lodged with the court as expeditiously as possible. All or part of the record may be filed:
(A) By the petitioner with the petition or petitioner’s points and authorities.
(B) By the respondent with respondent’s points and authorities.
(C) After payment of costs by the petitioner, or:
(D) As otherwise directed by the court.
If the expense of preparing the record has been borne by the petitioner and the petitioner is the prevailing party, the expense shall be taxable as costs.
(4) A petitioner who elects to bring an action pursuant to this section shall file and serve the petition on the respondent no later than 90 days from the later of (1) the effective date of a decision of the local agency imposing conditions on, disapproving, or any other final action on a housing development project, (2) the effective date of the denial of a permit for a housing development project, or (3) any other action by which respondent disapproves the housing development project. The title page of the petition shall contain the following language in 18-point type:
“ATTENTION: THIS MATTER IS ENTITLED TO PRIORITY AND SUBJECT TO THE EXPEDITED HEARING AND REVIEW PROCEDURES CONTAINED IN SECTION 1094.9 OF THE CODE OF CIVIL PROCEDURE.”
(5) The clerk of the court shall set a hearing for review of the petition for writ of mandate no later than 45 calendar days from the date the petition is filed. Moving, opposition, and reply papers shall be filed as provided in the California Rules of Court. If not otherwise filed, the petitioner shall lodge the record of proceedings with the court no later than 15 calendar days before the hearing date.
(6) Following the conclusion of the hearing, the court shall render its decision in an expeditious manner. In no event shall the decision be rendered later than 30 calendar days after the matter is submitted or 75 calendar days after the date the petition is filed pursuant to paragraph (4), whichever is earlier.
(e) If the presiding judge of the court in which the action is filed determines that, as a result of either the press of other court business or other factors, the court will be unable to meet any of the deadlines provided within this section, the presiding judge may request the temporary assignment of a judicial officer to hear the petition and render a decision within the time limits contained herein, pursuant to California Rules of Court Rule 2.812 and Section 68543.8 of the Government Code. Given the short time period involved, the request shall be entitled to priority.

SEC. 22.

Section 234.7 of the Education Code is amended to read:

234.7.

(a) Except as required by state or federal law or as required to administer a state or federally supported educational program, school officials and employees of a local educational agency shall not do either of the following:
(1) Collect information or documents regarding citizenship or immigration status of pupils or their family members.
(2) Allow an officer or employee of an agency conducting immigration enforcement to enter a nonpublic area of a schoolsite for any purpose without being presented with a valid judicial warrant or judicial subpoena, or a court order. Any school official or employee of a local educational agency shall, to the extent practicable, request a valid identification from an officer or employee of an agency conducting immigration enforcement seeking to enter a nonpublic area of a schoolsite. This subdivision shall not be construed to limit a local educational agency’s or school official’s right to consult with counsel or challenge the validity of a warrant, subpoena, or court order in a court of competent jurisdiction.
(b) A local educational agency and its personnel, to the extent practicable, shall not disclose or provide in writing, verbally, or in any other manner, the education records of or any information about a pupil or a pupil’s family and household without the pupil’s parents’ or guardians’ written consent, a school employee, or a teacher, including, but not limited to, personal information as defined in subdivision (a) of Section 1798.3 of the Civil Code, information about a pupil’s home, and information about a pupil’s travel schedule, to an officer or employee of an agency conducting immigration enforcement absent a valid judicial warrant or judicial subpoena, or court order directing the local educational agency or its personnel to do so. Any disclosure of a pupil’s education records pursuant to a valid judicial warrant or judicial subpoena, or court order shall be in accordance with the parent notification requirements set forth in Section 99.31(a)(9)(ii) of Title 34 of the Code of Federal Regulations.
(c) The superintendent of a school district, the superintendent of a county office of education, and the principal of a charter school, as applicable, shall report to the respective governing board or body of the local educational agency in a timely manner any requests for information or access to a schoolsite by an officer or employee of a law enforcement agency for the purpose of enforcing the immigration laws in a manner that ensures the confidentiality and privacy of any potentially identifying information.
(d) If an employee of a school is aware that a pupil’s parent or guardian is not available to care for the pupil, the school shall first exhaust any parental instruction relating to the pupil’s care in the emergency contact information it has for the pupil to arrange for the pupil’s care. A school is encouraged to work with parents or guardians to update their emergency contact information and not to contact a child protective services agency to arrange for the pupil’s care unless the school is unable to arrange for care through the use of emergency contact information or other information or instructions provided by the parent or guardian.
(e) The governing board or body of a local educational agency shall do all of the following:
(1) (A) Provide information to parents and guardians, as appropriate, regarding their child’s right to a free public education, regardless of immigration status or religious beliefs. This information shall include information relating to both of the following:
(i) The Immigration-Enforcement Actions at California Schools Guide for Students and Families, also known as “Know Your Educational Rights,” developed by the Attorney General.
(ii) “Promoting a Safe and Secure Learning Environment for All: Guidance and Model Policies to Assist California’s K–12 Schools in Responding to Immigration Issues” issued by the Attorney General on January 6, 2025, including, but not limited to, information related to plans for family safety, the caregiver’s authorization affidavit in Section 6552 of the Family Code, and the importance of providing the school with, and regularly updating, emergency contact information, including secondary and additional contact information. The provided information shall be revised as necessary to be consistent with any revisions or updates to the guidance issued by the Attorney General.
(B) The information may be provided in the annual notification to parents and guardians pursuant to Section 48980 or any other cost-effective means determined by the local educational agency.
(C) The guide specified in clause (i) of subparagraph (A) shall be posted in the administrative buildings and on the internet websites of the local educational agency and each of its schoolsites. The guide shall be posted in every language that the Attorney General provides and shall be updated the school year following any updates published by the Attorney General.
(2) Educate pupils about the negative impact of bullying other pupils based on their actual or perceived immigration status or their religious beliefs and customs.
(f) This section does not prohibit the governing board or body of a local educational agency from establishing stronger standards and protections.
(g) (1) The Attorney General, by April 1, 2018, in consultation with the appropriate stakeholders, shall publish model policies limiting assistance with immigration enforcement at public schools, to the fullest extent possible consistent with federal and state law, and ensuring that public schools remain safe and accessible to all California residents, regardless of immigration status. The Attorney General shall, at a minimum, consider all of the following issues when developing the model policies:
(A) Procedures related to requests for access to school grounds for purposes related to immigration enforcement.
(B) Procedures for local educational agency employees to notify the superintendent of the school district or the superintendent’s designee, the superintendent of the county office of education or the superintendent’s designee, or the principal of the charter school or the principal’s designee, as applicable, if an individual requests or gains access to school grounds for purposes related to immigration enforcement.
(C) Procedures for responding to requests for personal information about pupils or their family members for purposes of immigration enforcement.
(2) The Attorney General shall, no later than December 1, 2025, update the model policies described in paragraph (1) to ensure that these policies align with the prohibition applicable to school officials and employees of local educational agencies as described in paragraph (2) of subdivision (a), and the requirements for local educational agencies, as described in this section.
(3) Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the Department of Justice may implement, interpret, or make specific this section without taking any regulatory action.
(h) All local educational agencies shall do all of the following:
(1) Adopt the model policies developed pursuant to paragraph (1) of subdivision (g), or equivalent policies, by July 1, 2018.
(2) Revise their model policies as necessary to be consistent with any revisions or updates to the model policies developed by the Attorney General, including “Promoting a Safe and Secure Learning Environment for All: Guidance and Model Policies to Assist California’s K–12 Schools in Responding to Immigration Issues” issued by the Attorney General on January 6, 2025, including, but not limited to, information related to plans for family safety, the caregiver’s authorization affidavit in Section 6552 of the Family Code, and the importance of providing the school with, and regularly updating, emergency contact information, including secondary and additional contact information.
(3) Update their model policies to align with this section, including paragraph (2) of subdivision (g), by March 1, 2026.
(i) This section does not prohibit or restrict any governmental entity or official from sending to, or receiving from, federal immigration authorities, information regarding the citizenship or immigration status, lawful or unlawful, of an individual, or from requesting from federal immigration authorities immigration status information, lawful or unlawful, of any individual, or maintaining or exchanging that information with any other federal, state, or local governmental entity, pursuant to Sections 1373 and 1644 of Title 8 of the United States Code.
(j) A local educational agency shall maintain its policy adopted pursuant to subdivision (h) and make the policy available to the department upon request.
(k) Local educational agencies may be subject to monitoring and auditing by the department to ensure compliance with the requirements of subdivisions (h) and (j).
(l) For purposes of this section, the following definitions apply:
(1) “Immigration enforcement” includes any and all efforts to investigate, enforce, or assist in the investigation or enforcement of any federal civil immigration law, and any and all efforts to investigate, enforce, or assist in the investigation or enforcement of any federal criminal immigration law that penalizes a person’s presence in, entry, or reentry to, or employment in, the United States.
(2) “Local educational agency” means a school district, county office of education, or charter school.
(3) “Schoolsite” means an individual school campus of a school district, county office of education, or charter school, an area where a local educational agency’s school-sponsored activity is currently being held, or a schoolbus or other transportation provided by a local educational agency.

SEC. 23.

Section 35221 of the Education Code is amended to read:

35221.

(a) Each local educational agency official shall receive training in K–12 public education school finance laws pursuant to this article.
(b) An entity offering training courses to meet the requirements of this article shall use the curriculum developed pursuant to Section 35220.5.
(c) (1) In order to meet the requirement of subdivision (a), a local educational agency or a consortium of local educational agencies shall only use the following methods:
(A) Offer training courses using local educational agency employees or contracted legal counsel with demonstrable experience in the applicable topic described in subdivision (b) of Section 35220 for which it will provide training.
(B) (i) Arrange for its local educational agency officials to receive training courses through an entity that meets all of the following requirements:
(I) One of the entity’s primary functions is supporting local educational agencies with technical assistance and expertise in the applicable topic described in subdivision (b) of Section 35220 for which it will provide training.
(II) The entity has demonstrable experience supporting local educational agencies with technical assistance and expertise.
(III) The entity has trainers that each possess demonstrable experience in the applicable topic described in subdivision (b) of Section 35220 for which it will provide training.
(ii) (I) Local educational agency officials of school districts and county offices of education shall only receive training from an entity described in clause (i) with demonstrable experience supporting school districts and county offices of education with technical assistance and expertise, or as provided by subparagraph (A), (C), or (D).
(II) Local educational agency officials of charter schools or an entity managing charter schools shall only receive training from an entity with demonstrable experience supporting charter schools with technical assistance and expertise, or as provided by subparagraph (A), (C), or (D).
(C) Arrange for its local educational agency officials to receive training courses through the County Office Fiscal Crisis and Management Assistance Team established pursuant to Section 42127.8. The County Office Fiscal Crisis and Management Assistance Team may charge a fee to local educational agencies for providing the training.
(D) Arrange for its local educational agency officials to receive training courses through a nonprofit statewide education association led by officials who govern school districts and county offices of education.
(E) Offer their own, or arrange through a different entity that meets the requirements of subparagraph (B), (C), or (D), sets of self-study materials with tests.
(2) Courses offered or arranged pursuant to subparagraph (A), (B), (C), or (D) of paragraph (1), as applicable, may be taken at home, in person, or online.
(d) A local educational agency official that has successfully completed the California School Boards Association’s Masters in Governance program and provides their local educational agency with proof of their participation and completion of the program, to comply with Section 35222, shall be exempt from the requirement of subdivision (a).
(e) A training course covering the topics described in subdivision (b) of Section 35220 shall be no longer than four hours.
(f) A provider of a training course that meets the requirements of this article shall provide participants with proof of participation to comply with Section 35222.
(g) A local educational agency shall provide information to its officials at least annually on training available to meet the requirements of this article.

SEC. 24.

Section 38134 of the Education Code is amended to read:

38134.

(a) (1) The governing board of a school district shall authorize the use of school facilities or grounds under its control by a nonprofit organization, or by a club or an association organized to promote youth and school activities, including, but not necessarily limited to, any of the following:
(A) The Girl Scouts; the Boy Scouts; Camp Fire USA; or the YMCA.
(B) A parent-teacher association.
(C) A school-community advisory council.
(D) A recreational youth sports league that charges participants no more than a nominal fee. As used in this subparagraph, “nominal fee” means an average of no more than sixty dollars ($60) per month.
(2) This subdivision does not apply to a group that uses school facilities or grounds for fundraising activities that are not beneficial to youth or public school activities of the school district, as determined by the governing board of the school district.
(b) Except as otherwise provided by law, a governing board of a school district may charge an amount not to exceed its direct costs for use of its school facilities or grounds pursuant to this section. A governing board of a school district that levies these charges shall first adopt a policy specifying which activities shall be charged an amount not to exceed direct costs.
(c) The governing board of a school district may charge an amount, not to exceed its direct costs for use of its school facilities or grounds by the entity using the school facilities or grounds, including a religious organization or church, that arranges for and supervises sports league activities for youths as described in paragraph (6) of subdivision (b) of Section 38131.
(d) The governing board of a school district that authorizes the use of school facilities or grounds for the purpose specified in paragraph (3) of subdivision (b) of Section 38131 shall charge the church or religious organization an amount at least equal to the school district’s direct costs.
(e) In the case of entertainment or a meeting where an admission fee is charged or contributions are solicited, and the net receipts are not expended for the welfare of the pupils of the school district or for charitable purposes, a charge equal to fair rental value shall be levied for the use of the school facilities or grounds.
(f) If the use of school facilities or grounds under this section results in the destruction of school property, the entity using the school facilities or grounds may be charged for an amount necessary to repay the damages, and further use of facilities or grounds by that entity may be denied.
(g) As used in this section:
(1) “Direct costs” to the school district for the use of school facilities or grounds includes all of the following:
(A) The share of the costs of supplies, utilities, janitorial services, services of school district employees, and salaries paid to school district employees directly associated with the administration of this section to operate and maintain school facilities or grounds that is proportional to the entity’s use of the school facilities or grounds under this section.
(B) The share of the costs for maintenance, repair, restoration, and refurbishment, proportional to the use of the school facilities or grounds by the entity using the school facilities or grounds under this section as follows:
(i) For purposes of this subparagraph, “school facilities” shall be limited to only nonclassroom space, and “school grounds” shall include, but not necessarily be limited to, playing fields, athletic fields, track and field venues, tennis courts, and outdoor basketball courts.
(ii) The share of the cost for maintenance, repair, restoration, and refurbishment shall not apply to:
(I) Classroom-based programs that operate after school hours, including, but not necessarily limited to, after school programs, tutoring programs, or childcare programs.
(II) Organizations retained by the school or school district to provide instruction or instructional activities to pupils during school hours.
(iii) Funds collected under this subparagraph shall be deposited into a special fund that shall only be used for purposes of this section.
(2) “Fair rental value” means the direct costs to the school district plus the amortized costs of the school facilities or grounds used for the duration of the activity authorized.
(h) (1) A school district authorizing the use of school facilities or grounds under subdivision (a) is liable for an injury resulting from the negligence of the school district in the ownership and maintenance of the school facilities or grounds. An entity using school facilities or grounds under this section is liable for an injury resulting from the negligence of that entity during the use of the school facilities or grounds. The school district and the entity using the school facilities or grounds under this section shall each bear the cost of insuring against its respective risks and shall each bear the costs of defending itself against claims arising from those risks.
(2) Notwithstanding any other law, this subdivision shall not be waived. This subdivision does not limit or affect the immunity or liability of a school district under Division 3.6 (commencing with Section 810) of Title 1 of the Government Code for an injury caused by a dangerous condition of public property.

SEC. 25.

Section 44043.5 of the Education Code is amended to read:

44043.5.

(a) The governing board or body of a school district, county office of education, or charter school may establish a catastrophic leave program to permit employees of that school district, county office of education, or charter school to donate eligible leave credits to an employee when that employee or a member of the employee’s family suffers from a catastrophic illness or injury.
(b) For the purposes of this section, the following definitions apply:
(1) “Catastrophic illness” or “injury” means an illness or injury that is expected to incapacitate the employee for an extended period of time, or that incapacitates a member of the employee’s family that requires the employee to take time off from work for an extended period of time to care for that family member, and taking extended time off work creates a financial hardship for the employee because they have exhausted all of their sick leave and other paid time off.
(2) “Eligible leave credits” means vacation leave and sick leave accrued to the donating employee.
(c) Eligible leave credits may be donated to an employee for purposes of subdivision (a) if all of the following requirements are met:
(1) The employee, who is, or whose family member is, suffering from a catastrophic illness or injury, requests that eligible leave credits be donated and provides verification of catastrophic injury or illness as required by the governing board or body of the school district, county office of education, or charter school in which the employee is employed.
(2) The governing board or body of the school district, county office of education, or charter school determines that the employee is unable to work due to the employee’s or their family member’s catastrophic illness or injury.
(3) The employee has exhausted all accrued paid leave credits.
(d) If the transfer of eligible leave credits is approved by the governing board or body of the school district, county office of education, or charter school, any employee may, upon written notice to the governing board or body of the school district, county office of education, or charter school, donate eligible leave credits at a minimum of eight hours, and in hour increments thereafter.
(e) The governing board or body of a school district, county office of education, or charter school that provides a catastrophic leave program pursuant to this section shall adopt rules and regulations for the administration of this section, including, but not limited to, the following:
(1) The maximum amount of time for which donated leave credits may be used, but not to exceed use for a maximum period of 12 consecutive months.
(2) The verification of catastrophic injury or illness required pursuant to paragraph (1) of subdivision (c).
(3) Making all transfers of eligible leave credit irrevocable.
(f) An employee who receives paid leave pursuant to subdivision (c) shall use any leave credits that they continue to accrue on a monthly basis before receiving paid leave pursuant to this section.
(g) Notwithstanding this section, the governing board or body of a school district, county office of education, or charter school and an exclusive bargaining representative of employees in that school district, county office of education, or charter school may agree to include in any collective bargaining agreement, a provision setting forth requirements for a catastrophic leave program.

SEC. 26.

Section 46392 of the Education Code is amended to read:

46392.

(a) If the average daily attendance of a school district, county office of education, or charter school during a fiscal year has been materially decreased during a fiscal year because of any of the following, the fact shall be established to the satisfaction of the Superintendent by affidavits of the members of the governing board or body of the school district, county office of education, or charter school and the county superintendent of schools:
(1) Fire.
(2) Flood.
(3) Impassable roads.
(4) Epidemic.
(5) Earthquake.
(6) The imminence of a major safety hazard as determined by the local law enforcement agency.
(7) A strike involving transportation services to pupils provided by a nonschool entity.
(8) An order provided for in Section 41422.
(9) Snowstorm.
(b) (1) In the event a state of emergency is declared by the Governor in a county, a decrease in average daily attendance in the county below the approximate total average daily attendance that would have been credited to a school district, county office of education, or charter school had the state of emergency not occurred shall be deemed material. The Superintendent shall determine the length of the period during which average daily attendance has been reduced by the state of emergency.
(2) The period determined by the Superintendent shall not extend into the next fiscal year following the declaration of the state of emergency by the Governor, except upon a showing by a school district, county office of education, or charter school, to the satisfaction of the Superintendent, that extending the period into the next fiscal year is essential to alleviate continued reductions in average daily attendance attributable to the state of emergency.
(3) Notwithstanding any other law, the Superintendent shall extend through the 2018–19 fiscal year the period during which it is essential to alleviate continued reductions in average daily attendance attributable to a state of emergency declared by the Governor in October 2017, for a school district where no less than 5 percent of the residences within the school district or school district facilities were destroyed by the qualifying emergency.
(c) (1) The average daily attendance of the school district, county office of education, or charter school for the fiscal year shall be estimated by the Superintendent in a manner that credits to the school district, county office of education, or charter school for determining the apportionments to be made to the school district, county office of education, or charter school from the State School Fund approximately the total average daily attendance that would have been credited to the school district, county office of education, or charter school had the emergency not occurred or had the order not been issued.
(2) (A) From September 1, 2021, to June 30, 2022, inclusive, with the exception of a material loss of attendance for pupils who are individuals with exceptional needs, as that term is defined in Section 56026, whose individualized education program developed pursuant to Article 3 (commencing with Section 56340) of Chapter 4 of Part 30 does not specifically provide for participation in independent study or pupils who are enrolled in community day schools pursuant to Article 3 (commencing with Section 48660) of Chapter 4 of Part 27, a school district, county office of education, or charter school shall not receive average daily attendance credit pursuant to this section for pupils that have been quarantined and are unable to attend in-person instruction due to exposure to, or infection with, COVID-19 pursuant to local or state public health guidance.
(B) Notwithstanding subparagraph (A), from September 1, 2021, to June 30, 2022, inclusive, a school district, county office of education, or charter school may receive average daily attendance credit pursuant to this section for school closures related to impacts from COVID-19 or material loss of attendance due to COVID-19 related staffing shortages if the following conditions are established to the satisfaction of the Superintendent by affidavits of the members of the governing board or body of the school district, county office of education, or charter school and the county superintendent of schools:
(i) The school district, county office of education, or charter school is unable to provide in person instruction to pupils due to staffing shortages as a result of staff quarantine due to exposure to, or infection with, COVID-19 pursuant to local or state public health guidance.
(ii) For certificated staff shortages, the school district, county office of education, or charter school has exhausted all options for obtaining staff coverage, including using all certificated staff and substitute teacher options, and has consulted with their county office of education and the Superintendent in determining that staffing needs cannot be met through any option.
(iii) For classified staff shortages, the school district, county office of education, or charter school has exhausted all options for obtaining staff coverage, including using all staff options, and has consulted with their county office of education and the Superintendent in determining that staffing needs cannot be met through any option.
(d) Notwithstanding any other law, for a school district or charter school physically located within a school district, where no less than 5 percent of the residences within the school district, or the school district’s facilities, were destroyed as a result of a state of emergency that was declared by the Governor in November 2018, all of the following shall apply:
(1) (A) In the 2020–21 fiscal year, for school districts, the Superintendent shall calculate the difference between the school district’s certified second principal apportionment local control funding formula entitlement pursuant to Section 42238.02 in the 2020–21 fiscal year and the 2019–20 fiscal year and, if there is a difference, allocate the amount of that difference to the school district.
(B) In the 2021–22 fiscal year, for school districts, the Superintendent shall allocate an amount equal to 25 percent of the difference calculated in subparagraph (A) to the school district.
(C) In the 2022–23 fiscal year, for school districts, the Superintendent shall allocate an amount equal to 12.5 percent of the difference calculated in subparagraph (A) to the school district.
(2) (A) In the 2019–20 and 2020–21 fiscal years, for charter schools, the Superintendent shall calculate the difference between the charter school’s certified second principal apportionment local control funding formula entitlement pursuant to 42238.02 in the current year and each respective prior year and, if there is a difference, allocate the amount of that difference to the charter school.
(B) In the 2021–22 fiscal year, for charter schools that operate a minimum of 175 schooldays and report at least 75 percent of the total second period average daily attendance for the 2019–20 fiscal year, as described in Section 41601, the Superintendent shall allocate 25 percent of the difference calculated in subparagraph (A) to the charter school.
(3) For a county office of education funded pursuant to paragraph (1) of subdivision (g) of Section 2575 that has within the boundaries of the county school districts or charter schools affected pursuant to this subdivision and that has in the schools operated by the county office of education at least a 10-percent decrease in average daily attendance in the current fiscal year, in the 2019–20 and 2020–21 fiscal years, the Superintendent shall calculate the difference between the county office of education’s alternative education grant entitlement certified at the annual principal apportionment pursuant to Section 2574 in the current fiscal year and each respective prior fiscal year and, if there is a difference, allocate the amount of that difference to the county office of education.
(4) A school district may transfer funds received pursuant to paragraph (1) to the county office of education for the portion of the funds that represents pupils served by the county office of education who are funded through the school district’s local control funding formula apportionment pursuant to Section 2576.
(5) In each fiscal year, the allocations pursuant to this subdivision shall be made to school districts and charter schools by the Superintendent as soon as practicable after the second principal apportionment and to county offices of education as soon as practicable after the annual principal apportionment. The allocations made shall be final. The Superintendent may provide a preliminary allocation of up to 50 percent no sooner than the first principal apportionment.
(6) (A) The amounts described in this subdivision shall be continuously appropriated from the General Fund to the Superintendent for these purposes.
(B) For purposes of making the computations required by Section 8 of Article XVI of the California Constitution, the appropriation made by this subdivision shall be deemed to be “General Fund revenues appropriated for school districts,” as defined in subdivision (c) of Section 41202, for the fiscal year in which they are appropriated, and included within the “total allocations to school districts and community college districts from General Fund proceeds of taxes appropriated pursuant to Article XIII B,” as defined in subdivision (e) of Section 41202.
(e) Notwithstanding any other law, for a school district or charter school physically located within a school district, where no less than 5 percent of the residences within the school district, or the school district’s facilities, were destroyed as a result of a state of emergency that was declared by the Governor in September 2020, all of the following shall apply:
(1) For the 2021–22 fiscal year, for school districts, the Superintendent shall calculate the difference between the school district’s certified annual principal apportionment local control funding formula revenues pursuant to Section 42238.02 in the 2021–22 fiscal year and the 2019–20 fiscal year, including local revenue, pursuant to subdivision (j) of Section 42238.02, and any additional funds received pursuant to subdivision (e) of Section 42238.03 in excess of the entitlement calculated pursuant to Section 42238.02 and 42238.03 and, if there is a difference, allocate the amount of that difference to the school district.
(2) For the 2021–22 fiscal year, for charter schools that operate a minimum of 175 schooldays and report at least 75 percent of the total second period average daily attendance for the 2019–20 fiscal year, as described in Section 41601, the Superintendent shall calculate the difference between the charter school’s certified second principal apportionment local control funding formula revenues pursuant to Section 42238.02 in the 2021–22 fiscal year and the 2019–20 fiscal year, and, if there is a difference, allocate the amount of that difference to the charter school.
(3) School districts and charter schools shall notify the Superintendent of their eligibility pursuant to this subdivision by November 1, 2021, in the manner prescribed by the Superintendent.
(4) Preliminary allocations made pursuant to paragraph (1) shall be made to school districts by the Superintendent through the principal apportionment beginning with the 2021–22 fiscal year first principal apportionment certification and shall be made final as of the annual principal apportionment.
(5) Allocations pursuant to paragraph (2) shall be made to charter schools by the Superintendent as soon as practicable after the second principal apportionment and shall be made final as of the annual principal apportionment. The Superintendent may provide a preliminary allocation of up to 50 percent no sooner than the first principal apportionment.
(f) Notwithstanding any other law, for a school district where a school eligible for funding pursuant to Article 4 (commencing with Section 42280) of Chapter 7 of Part 24 of Division 3 was destroyed as a result of a state of emergency that was declared by the Governor in August 2021, the following shall apply:
(1) The school district may continue to report the amount of attendance generated by pupils enrolled in another school of the school district that would have otherwise attended the destroyed school, and the number of full-time teachers employed by the school district that would have otherwise provided instructional services at the school, as if the school were operational in the 2021–22, 2022–23, and 2023–24 fiscal years.
(2) The school shall be considered a necessary small school for the purpose of Section 42282 in the 2022–23 and 2023–24 fiscal years.
(g) (1) Notwithstanding any other law, paragraphs (2) and (3) shall apply for the following charter schools identified in subparagraph (A), (B), or (C) that were damaged, destroyed, or directly impacted, as a result of a state of emergency that was declared by the Governor in January 2025:
(A) Marquez Charter, Palisades Charter Elementary, and Palisades Charter High within the Los Angeles Unified School District.
(B) Aveson Global Leadership Academy, Aveson School of Leaders, Odyssey Charter, OCS - South, and Pasadena Rosebud Academy in the Pasadena Unified School District.
(C) Alma Fuerte Public in the City of Pasadena.
(2) For the 2025–26 fiscal year, for charter schools identified in paragraph (1) that operate a minimum of 175 schooldays, as described in Section 41601, the Superintendent shall calculate the difference between the charter school’s certified local control funding formula entitlement pursuant to Section 42238.02 as of the annual principal apportionment in the 2025–26 fiscal year and the first principal apportionment in the 2024–25 fiscal year, and, if there is a difference, allocate the amount of that difference to the charter school.
(3) Allocations pursuant to paragraph (2) shall be made final as of the annual principal apportionment. The Superintendent may provide a preliminary allocation no sooner than the first principal apportionment.
(h) This section applies to any average daily attendance that occurs during any part of a school year.

SEC. 27.

Section 49001 of the Education Code is amended to read:

49001.

(a) For the purposes of this section, “corporal punishment” means the willful infliction of, or willfully causing the infliction of, physical pain on a pupil. An amount of force that is reasonable and necessary for a person employed by or engaged in a public school to quell a disturbance threatening physical injury to persons or damage to property, for purposes of self-defense, or to obtain possession of weapons or other dangerous objects within the control of the pupil, is not and shall not be construed to be corporal punishment within the meaning and intent of this section. Physical pain or discomfort caused by athletic competition or other such recreational activity, voluntarily engaged in by the pupil, is not and shall not be construed to be corporal punishment within the meaning and intent of this section.
(b) No person employed by or engaged in a public school shall inflict, or cause to be inflicted, corporal punishment upon a pupil. Every resolution, bylaw, rule, ordinance, or other act or authority permitting or authorizing the infliction of corporal punishment upon a pupil attending a public school is void and unenforceable.
(c) For purposes of this section, “public school” includes a school operated by a school district or a county office of education, a charter school, a nonpublic, nonsectarian school, and a state special school for the blind or the deaf.

SEC. 28.

Section 51140 of the Education Code is amended to read:

51140.

(a) (1) A drowning or injury prevention organization may provide informational materials, in electronic or hardcopy form, to a public school that serves pupils in kindergarten or any of grades 1 to 12, inclusive, in accordance with the requirements of this article, regarding all of the following topics:
(A) The role that water safety education courses and swim lessons play in drowning prevention and saving lives.
(B) Local water safety and swimming skills programs in the county and communities served by the public school, including free or reduced-price programs, and how to access information about age-appropriate public or private water safety courses and swimming skills programs that result in a certificate indicating successful completion.
(C) Contact information of the organization to receive further water safety education information.
(2) The informational materials shall not be used to solicit funding or donations for the organization.
(3) It is the intent of the Legislature that public schools that receive information pursuant to paragraph (1) facilitate the sharing of that information with the parents, caregivers, or guardians of pupils.
(b) (1) Upon receipt of the informational materials described in subdivision (a), a public school is authorized to provide the informational materials to parents, legal guardians, or caregivers of pupils at the time the pupil enrolls at the public school and at the beginning of each school year, and is encouraged to provide the materials described in subdivision (a) during the first week of May in the year that the informational materials were provided.
(2) In recognition of the importance of drowning as a public health issue impacting the lives of many pupils, public schools are authorized to, and are encouraged to, provide to their pupils water safety informational materials through multiple means, including, but not limited to, school assemblies, classroom instruction, or library programs. These informational materials shall meet the following criteria:
(A) Be age and grade appropriate.
(B) Be aligned with the information from the federal Centers for Disease Control and Prevention, as described in paragraph (1) of subdivision (a) of Section 51141, and identified by the department pursuant to Section 51900.1.
(C) Be provided for free by drowning prevention or children safety organizations.
(c) Upon request by a public school, a drowning or injury prevention organization that elects to provide informational materials shall provide the informational materials in English and is encouraged to provide informational materials in the other most commonly spoken languages associated with the population attending the school based on available data from the department.

SEC. 29.

Section 69436 of the Education Code is amended to read:

69436.

(a) A student who was not awarded a Cal Grant A or B award pursuant to Article 2 (commencing with Section 69434) or Article 3 (commencing with Section 69435), respectively, at the time of their high school graduation but, at the time of transfer from a California community college to a qualifying baccalaureate program or upon matriculation into the upper division coursework of a community college baccalaureate program, described in Article 3 (commencing with Section 78040) of Chapter 1 of Part 48 of Division 7, meets all of the criteria set forth in subdivision (b), shall be entitled to a Cal Grant A or B award.
(b) Any California resident transferring from a California community college to a qualifying institution that offers a baccalaureate degree or who matriculates into the upper division coursework of a community college baccalaureate program, described in Article 3 (commencing with Section 78040) of Chapter 1 of Part 48 of Division 7, is entitled to receive, and the commission, or a qualifying institution pursuant to Article 8 (commencing with Section 69450), shall award, a Cal Grant A or B award depending on the eligibility determined pursuant to subdivision (c), if all of the following criteria are met:
(1) A complete official financial aid application has been submitted or postmarked pursuant to Section 69432.9, no later than the March 2 of the year immediately preceding the award year.
(2) The student demonstrates financial need pursuant to Section 69433.
(3) The student has earned a community college grade point average of at least 2.4 on a 4.0 scale and is eligible to transfer to a qualifying institution that offers a baccalaureate degree.
(4) The student’s household has an income and asset level not exceeding the limits set forth in Section 69432.7.
(5) The student is pursuing a baccalaureate degree that is offered by a qualifying institution.
(6) The student is enrolled at least part time.
(7) The student meets the general Cal Grant eligibility requirements set forth in Article 1 (commencing with Section 69430).
(8) The student will not be 28 years of age or older by December 31 of the award year.
(9) The student graduated from a California high school or its equivalent during or after the 2000–01 academic year.
(10) (A) Except as provided for in subparagraph (B), the student attended a California community college in the academic year immediately preceding the academic year for which the award will be used.
(B) A student otherwise eligible to receive an award pursuant to this section, who attended a California community college in the 2011–12 academic year, may use the award for the 2012–13 and 2013–14 academic years.
(c) The amount and type of the award pursuant to this article shall be determined as follows:
(1) For applicants with income and assets at or under the Cal Grant A limits, the award amount shall be the amount established pursuant to Article 2 (commencing with Section 69434).
(2) For applicants with income and assets at or under the Cal Grant B limits, the award amount shall be the amount established pursuant to Article 3 (commencing with Section 69435).
(d) (1) A student meeting the requirements of paragraph (9) of subdivision (b) by means of high school graduation, rather than its equivalent, shall be required to have graduated from a California high school, unless that California resident graduated from a high school outside of California due solely to orders received from a branch of the United States Armed Forces by that student or by that student’s parent or guardian that required that student to be outside of California at the time of high school graduation.
(2) For the purposes of this article, all of the following are exempt from the requirements of paragraph (4) of subdivision (a) of Section 69433.9 and paragraph (9) of subdivision (b) of this section:
(A) A student for whom a claim under this article was paid before December 1, 2005.
(B) A student for whom a claim under this article for the 2004–05 award year or the 2005–06 award year was or is paid on or after December 1, 2005, but no later than October 15, 2006.
(C) Commencing with the 2017–18 academic year, a student who did not graduate from high school or its equivalent and was a California resident, as determined pursuant to Article 5 (commencing with Section 68060) of Chapter 1 of Part 41, on their 18th birthday.
(3) (A) The commission, or a qualifying institution pursuant to Article 8 (commencing with Section 69450), shall make preliminary awards to all applicants currently eligible for an award under this article. At the time an applicant receives a preliminary award, the commission, or a qualifying institution pursuant to Article 8 (commencing with Section 69450), shall require that applicant to affirm, in writing, under penalty of perjury, that they meet the requirements set forth in paragraph (4) of subdivision (a) of Section 69433.9, paragraph (9) of subdivision (b) of this section, and paragraph (1) of this subdivision. The commission, or a qualifying institution pursuant to Article 8 (commencing with Section 69450), shall notify each person who receives a preliminary award under this paragraph that their award is subject to an audit pursuant to subparagraph (B).
(B) The commission shall select, at random, a minimum of 10 percent of the new and renewal awards made under subparagraph (A), and shall require, before the disbursement of Cal Grant funds to the affected postsecondary institution, that the institution verify that the recipient meets the requirements of paragraph (4) of subdivision (a) of Section 69433.9, paragraph (9) of subdivision (b) of this section, and paragraph (1) of this subdivision. An award that is audited under this paragraph and found to be valid shall not be subject to a subsequent audit.
(C) Pursuant to Section 69517.5, the commission shall seek repayment of any and all funds found to be improperly disbursed under this article.
(D) On or before November 1 of each year, the commission shall submit a report to the Legislature and the Governor, including, but not necessarily limited to, both of the following:
(i) The number of awards made under this article in the preceding 12 months.
(ii) The number of new and renewal awards selected, in the preceding 12 months, for verification under subparagraph (B), and the results of that verification with respect to students at the University of California, at the California State University, at independent nonprofit institutions, and at independent for-profit institutions.

SEC. 30.

Section 70022 of the Education Code is amended to read:

70022.

(a) (1) Subject to an available and sufficient appropriation, an undergraduate student enrolled in the California State University or the University of California, or a community college student enrolled in upper division coursework of a community college baccalaureate program, described in Article 3 (commencing with Section 78040) of Chapter 1 of Part 48 of Division 7, who meets the requirements of paragraph (3) is eligible for a scholarship award as described in paragraph (2).
(2) (A) For the 2013–14 to the 2021–22 academic years, inclusive, except as provided in paragraphs (4) and (5), an eligible student shall receive a scholarship award in an amount that, combined with other federal, state, or institutionally administered student grants or fee waivers received by an eligible student, is up to 40 percent of the amount charged to that student in that academic year for mandatory systemwide tuition and fees, or for an eligible community college student, up to 40 percent of the amount charged to that student in upper division fees for a community college baccalaureate degree program, if all of the requirements in paragraph (3) are met, to the satisfaction of the commission, each academic year.
(B) For the 2022–23 academic year, except as provided in paragraph (5), an eligible student shall receive a scholarship award in an amount that equals the difference between their cost of attendance as determined by the commission and the sum of the following amounts:
(i) Other federal, state, and institutionally administered student scholarships, grants, or fee waivers, and the amount of private scholarships awarded to the student in excess of the sum of the amounts in clauses (ii) and (iii).
(ii) Seven thousand eight hundred ninety-eight dollars ($7,898), reflecting an expected student contribution toward cost of attendance from work earnings or other resources.
(iii) Notwithstanding Section 69506, for dependent students with an annual household income exceeding one hundred thousand dollars ($100,000), 33 percent of the parents’ contribution from adjusted available income, as determined using the federal methodology established by Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1087mm et seq.), and applicable rules and regulations adopted by the commission.
(C) For the 2023–24 academic year, except as provided in paragraph (5), an eligible student shall receive a scholarship award in an amount that equals the difference between their cost of attendance as determined by the commission and the sum of the following amounts:
(i) Other federal, state, and institutionally administered student scholarships, grants, or fee waivers.
(ii) The amount of private grants and scholarships awarded to the student, and institutionally awarded emergency housing funds and other basic needs emergency assistance awarded to the student, including emergency assistance awarded by an institution-based foster youth support program, in excess of the sum of the amounts in clauses (iii) and (iv).
(iii) Seven thousand eight hundred ninety-eight dollars ($7,898), reflecting an expected student contribution toward cost of attendance from work earnings or other resources.
(iv) Notwithstanding Section 69506, for dependent students with an annual household income exceeding one hundred thousand dollars ($100,000), 33 percent of the parents’ contribution from adjusted available income, as determined using the federal methodology established by Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1087mm et seq.), and applicable rules and regulations adopted by the commission.
(D) Commencing with the 2024–25 academic year, except as provided in paragraph (5), an eligible student shall receive a scholarship award in an amount that equals the difference between their cost of attendance as determined by the commission and the sum of the following amounts:
(i) Other federal, state, and institutionally administered student need-based scholarships, grants, or fee waivers.
(ii) The amount of private grants and scholarships awarded to the student, and institutionally administered non-need-based scholarships and institutionally awarded emergency housing funds or other basic needs emergency assistance awarded to the student, including emergency assistance awarded by an institution-based foster youth support program, in excess of the sum of the amounts in clauses (iii) and (iv).
(iii) An expected student contribution toward cost of attendance from work earnings or other resources. The commission shall adjust the 2023–24 amount of seven thousand eight hundred ninety-eight dollars ($7,898) annually thereafter based on the percentage change in the minimum wage pursuant to paragraph (1) of subdivision (c) of Section 1182.12 of the Labor Code.
(iv) Notwithstanding Section 69506, for dependent students with an annual household income exceeding one hundred thousand dollars ($100,000), 33 percent of the parents’ contribution from adjusted available income, as determined using the federal methodology established by Title IV of the federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1087mm et seq.), and applicable rules and regulations adopted by the commission.
(E) If a student’s total award under this article, in combination with other grants and scholarships treated as estimated financial assistance (EFA) or other financial assistance (OFA) pursuant to federal financial aid regulations, exceeds the allowable gift aid under those regulations, the award under this article shall be reduced to the greatest allowable award to maintain compliance pursuant to federal financial aid regulations.
(F) If an award in clause (i) of subparagraph (D) of less than three hundred dollars ($300) is identified following the determination of a student’s scholarship award under this article, the student’s scholarship award under this article shall not require a recalculation.
(3) (A) A student shall be eligible to receive an award if all of the following requirements are met, to the satisfaction of the commission, each academic year:
(B) (i) For each academic year from 2013–14 to 2021–22, inclusive, the student’s annual household income does not exceed one hundred fifty thousand dollars ($150,000). For awards distributed for the 2016–17 academic year and subsequent academic years, the commission shall annually adjust the maximum income level set under this clause in accordance with the percentage changes in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIII B of the California Constitution. For purposes of this article, annual household income shall be calculated in a manner that is consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter 1.7 (commencing with Section 69430)) and Section 69506.
(ii) Commencing with the 2022–23 academic year, the student’s annual household income does not exceed the following amounts:
(I) Two hundred one thousand dollars ($201,000) if the student is a dependent student or an independent student with dependents other than a spouse.
(II) One hundred thirty-three thousand dollars ($133,000) if the student is a married independent student with no dependents other than a spouse.
(III) One hundred sixteen thousand dollars ($116,000) if the student is a single independent student with no dependents.
(iii) For awards distributed for the 2023–24 academic year and subsequent academic years, the commission shall annually adjust the maximum income levels set under clause (ii) in accordance with the percentage changes in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIII B of the California Constitution. For purposes of this article, annual household income shall be calculated in a manner that is consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter 1.7 (commencing with Section 69430)) and Section 69506.
(C) (i) For each academic year from 2015–16 to 2021–22, inclusive, the student’s household asset level shall not exceed one hundred fifty thousand dollars ($150,000). For awards distributed in the 2016–17 academic year and subsequent academic years, the commission shall annually adjust the maximum household asset level set under this clause in accordance with the percentage changes in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIII B of the California Constitution. For purposes of this article, a student’s household asset level shall be calculated in a manner that is consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter 1.7 (commencing with Section 69430)) and Section 69506.
(ii) Commencing with the 2022–23 academic year, the student’s household asset level does not exceed the following amounts:
(I) Two hundred one thousand dollars ($201,000) if the student is a dependent student or an independent student with dependents other than a spouse.
(II) Ninety-six thousand dollars ($96,000) if the student is a single independent student with no dependents or a married independent student with no dependents other than a spouse.
(iii) For awards distributed in the 2023–24 academic year and subsequent academic years, the commission shall annually adjust the maximum household asset level set under clause (ii) in accordance with the percentage changes in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIII B of the California Constitution. For purposes of this article, a student’s household asset level shall be calculated in a manner that is consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Chapter 1.7 (commencing with Section 69430)) and Section 69506.
(D) The student satisfies the eligibility requirements for a Cal Grant award pursuant to either subdivision (a) or (b) of Section 69433.9, except that a student who is exempt from nonresident tuition under Section 68130.5 shall not be required to satisfy the requirements of paragraph (1) of subdivision (a) of Section 69433.9.
(E) The student is exempt from paying nonresident tuition.
(F) The student completes and submits a Free Application for Federal Student Aid (FAFSA) or a California Dream Act application. The FAFSA or California Dream Act application must be submitted or postmarked by no later than March 2.
(G) The student makes a timely application or applications for all other federal, state, or institutionally administered grants or fee waivers for which the student is eligible.
(H) The student maintains satisfactory academic progress in a manner that is consistent with the requirements applicable to the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program pursuant to subdivision (m) of Section 69432.7.
(I) The student is pursuing the student’s first undergraduate baccalaureate degree or has completed a baccalaureate degree and has been admitted to, and is enrolled in, a program of professional teacher preparation at an institution approved by the Commission on Teacher Credentialing.
(J) The student is enrolled at least part time.
(4) (A) For each academic year from 2013–14 to 2021–22, inclusive, the percentages specified in paragraph (2) shall be reduced by 0.6-percent increments per one thousand dollars ($1,000) of annual household income in excess of one hundred thousand dollars ($100,000), to a minimum of 10 percent, provided that no scholarship award shall be provided to a student with an annual household income exceeding one hundred fifty thousand dollars ($150,000). Beginning with award calculations for the 2016–17 academic year, and for subsequent academic years, the commission shall annually adjust the income levels specified in this subparagraph by the percentage change in the cost of living within the meaning of paragraph (1) of subdivision (e) of Section 8 of Article XIII B of the California Constitution and shall adjust the incremental reduction accordingly to ensure that a minimum of 10 percent of mandatory systemwide tuition and fees for an academic year are awarded. This reduction shall be in addition to any reduction required by Section 70023.
(B) Notwithstanding subparagraph (A), for each academic year from 2013–14 to 2021–22, inclusive, for any student who qualifies for a scholarship award of at least one dollar ($1), the minimum annual scholarship amount for full-time enrollment is ninety dollars ($90).
(5) (A) For the 2014–15, 2015–16, and 2016–17 academic years, the maximum amount of a student’s scholarship award shall be 35 percent, 50 percent, and 75 percent, respectively, of the total scholarship award amount that the student would otherwise be eligible to receive.
(B) Commencing with the 2022–23 academic year, except as provided in subparagraph (D), the maximum amount of a student’s scholarship award shall be determined by the percentage determined pursuant to subparagraph (C) of the total scholarship award amount that the student would otherwise be eligible to receive.
(C) The commission shall annually determine the percentage required for purposes of subparagraph (B) by taking the amount appropriated for purposes of this program for the applicable award year, less the amount necessary to fund subparagraph (D), and dividing that by the sum of the projected amount computed pursuant to subparagraph (B), (C), or (D) of paragraph (2) for the applicable award year for all eligible students, except those affected by subparagraph (D).
(D) Commencing with the 2023–24 academic year, a current or former foster youth, as defined in paragraph (2) of subdivision (e) of Section 69433.6, shall receive a scholarship award in the full amount determined in subparagraph (C) or (D) of paragraph (2), as adjusted, if applicable, pursuant to paragraph (2) of subdivision (d).
(b) In order for students enrolled in their respective segments to remain eligible to receive a scholarship award under this article, the University of California and the California State University shall not supplant their respective institutional need-based or merit-based grants with the funds provided for scholarships under this article. The University of California and the California State University shall ensure that the amount of institutional student aid provided in each academic year beginning with the 2022–23 academic year is adjusted annually to account for increases in systemwide undergraduate enrollment, as applicable, such that the proportion of institutional student aid relative to systemwide undergraduate enrollment is maintained at a level at least equivalent to the level maintained for undergraduate students during the 2021–22 academic year. The University of California and the California State University shall also ensure that at least 33 percent of the revenues of an increase to existing mandatory systemwide fees charged to undergraduate students is set aside by the regents or the trustees, as applicable, for institutional student aid to assist resident undergraduate students, including those undergraduate students exempt from nonresident tuition pursuant to Sections 68075.5 and 68130.5, and families in meeting the total cost of education.
(c) (1) The University of California and the California State University shall report on the implementation of this article as part of the report made pursuant to Section 66021.1. At a minimum, the report shall add the following information, by parental income level or expected family contribution deciles, for the prior academic year:
(A) The number and percentage of students receiving an award under this article and the average dollar amount of that award.
(B) The number and percentage of students receiving a student loan and the average amount borrowed.
(2) The report shall also include the following information by campus for the prior academic year:
(A) The cost of attendance for undergraduates in each living arrangement (on campus, off campus, or at home with parents).
(B) The number and percentage of undergraduates in each living arrangement (on campus, off campus, or at home with parents).
(d) (1) A Middle Class Scholarship Program award authorized pursuant to this article shall be defined as a full-time equivalent grant. An award to a part-time student shall be a fraction of a full-time grant. For each academic year from 2013–14 to 2021–22, inclusive, an award to a part-time student shall be determined by the proportionate amount charged for systemwide tuition and fees. A part-time student shall not be discriminated against in the selection of Middle Class Scholarship Program awards. For purposes of this section, “full-time student” and “part-time student” have the same meaning as specified in subdivision (f) of Section 69432.7.
(2) Commencing with the 2022–23 academic year, an award to a student enrolled in six to eight semester units, inclusive, or the equivalent shall be no more than one-half of the award the student would have received had the student enrolled full time. An award to a student enrolled in 9 to 11 semester units, inclusive, or the equivalent shall be no more than three-quarters of the award the student would have received had the student enrolled full time.

SEC. 31.

Section 70034 of the Education Code is amended to read:

70034.

(a) The amount of a DREAM loan offered to an individual student by a participating institution shall be determined by the institution, subject to the following provisions:
(1) The loan may not exceed the financial need of the student.
(2) (A) A student who is enrolled in an undergraduate program may not borrow more than four thousand dollars ($4,000) under this program within a single academic year.
(B) A student who is enrolled in a graduate program may not borrow more than twenty thousand five hundred dollars ($20,500) under this program within a single academic year.
(3) (A) A student who is enrolled in an undergraduate program may not borrow, as an undergraduate student, more than twenty thousand dollars ($20,000) in the aggregate under the program.
(B) A student who is enrolled in a graduate program may not borrow, as a graduate student, more than one hundred eighteen thousand five hundred dollars ($118,500) in the aggregate under the program.
(C) A student may not borrow more than one hundred thirty-eight thousand five hundred dollars ($138,500) in the aggregate under the program, consistent with the limitations specified in subparagraphs (A) and (B).
(4) The proportion of program funding used for instructional programs and for graduate programs shall be determined at the discretion of the participating institution. Priority shall be given to loans for instructional programs.
(b) The interest rate for loans issued under the program shall be the same as the then-current interest rate for undergraduate loans under the William D. Ford Federal Direct Loan Program (20 U.S.C. Sec. 1087a et seq.).
(c) Except as provided in subdivision (d), the standard repayment term for a DREAM loan shall be 10 years. Repayment shall commence following a six-month grace period that begins when a student graduates or ceases to maintain at least half-time enrollment in a degree or certificate program.
(d) On or before January 1, 2020, a participating institution shall adopt procedures allowing a borrower to select an income-based repayment plan for the repayment of a DREAM loan, in accordance with the standards set forth in the William D. Ford Federal Direct Loan Program for income-based repayment plans.
(e) Interest shall not accrue on a DREAM loan during periods of at least half-time enrollment in a degree or certificate program or during the six-month grace period specified in subdivision (c).
(f) Eligibility for deferment, discharge, or forbearance of a DREAM loan shall be determined by the participating institution in accordance with the standards set forth in the William D. Ford Federal Direct Loan Program.
(g) On or before January 1, 2024, a participating institution shall establish loan forgiveness options for borrowers who receive a DREAM loan with similar standards as those set forth in the William D. Ford Federal Perkins Loan Program.
(h) (1) A borrower shall qualify for administrative relief consistent with the standards set forth in the Federal Direct Loan Program during periods of national emergency declared by the President of the United States.
(2) A borrower shall qualify for any state of emergency administrative forbearance on student loans that is provided by the Governor by executive order or the participating institution.
(3) A borrower shall be granted administrative relief for 90 days if the borrower lives or works where a natural disaster has occurred upon notification by the borrower, a member of the borrower’s family, or another reliable source that the borrower has been affected by the natural disaster.
(i) Participating institutions shall use a common promissory note, approved by the Treasurer, to issue DREAM loans.

SEC. 32.

Section 88821 of the Education Code is amended to read:

88821.

(a) The Legislature finds and declares all of the following:
(1) California’s economic competitiveness is fueled, in part, by the strength of its regional economies and its skilled workforce.
(2) Upward social and economic mobility helps keep the state’s economy diversified and vibrant.
(3) The attainment of industry-valued “middle skill credentials” serves as a gateway for a large and diverse number of careers in the state’s economy.
(4) California’s local educational agencies, community college districts, interested public four-year universities, local workforce development boards, economic development and industry leaders, and local civic representatives should collaboratively work together to inform the offerings of courses, programs, pathways, and workforce development opportunities that enable students to access the current and future job market and further social and economic mobility.
(b) The Strong Workforce Program is hereby established as a K–14 state education, economic, and workforce development initiative for the purpose of expanding the availability of high-quality, industry-valued career technical education and workforce development courses, programs, pathways, credentials, certificates, and degrees.
(c) To facilitate program coordination and alignment with other workforce training, education, and employment services in the state, the Strong Workforce Program shall operate in a manner that complies with the California Strategic Workforce Development Plan, required pursuant to the federal Workforce Innovation and Opportunity Act (Public Law 113-128), and expand upon existing consortia infrastructure.
(d) To avoid duplication of effort, activities funded under the Strong Workforce Program shall be informed by, aligned with, and expand upon the activities of existing workforce and education regional partnerships, including those partnership activities that pertain to regional planning efforts established pursuant to the federal Workforce Innovation and Opportunity Act (Public Law 113-128), adult education block grant consortia, and other career technical education programs.
(e) All of the following guiding principles apply to each consortium participating in the Strong Workforce Program:
(1) Any community college district or local educational agency participating in the consortium shall ensure that its career technical education and workforce development courses, credentials, certificates, degrees, programs, and pathway offerings, as applicable, are responsive to the needs of employers, workers, civic leaders, and students.
(2) The consortium shall collaborate with other public institutions, including, but not limited to, adult education consortia, local workforce development boards, and interested California State University and University of California institutions.
(3) The consortium shall collaborate with civic representatives, representatives from the labor community, and economic development and industry sector leaders within the region.
(4) The consortium shall include collaborating entities and persons identified in this subdivision in planning meetings, provide them with adequate notice of the consortium’s proposed decisions, and solicit, consider, and respond to comments from them regarding the consortium’s proposed decisions.
(5) Collaborative efforts shall focus upon evidence-based decisionmaking and student success with workforce outcomes aligned with the performance accountability measures of the federal Workforce Innovation and Opportunity Act (Public Law 113-128), and closing labor market and employment gaps. Each consortium shall strive to align programmatic offerings in the most effective and efficient manner to avoid duplication of effort and streamline access to services, and education and training opportunities.
(6) Community college districts, local educational agencies, and other entities participating in a consortium are encouraged to develop long-term partnerships with private sector employers and labor partners to provide coordinated courses, programs, and pathways with employer involvement in the assessment, planning, and development of career technical education courses, programs, and pathways. To the extent practicable, employer partnerships should build upon regional partnerships formed pursuant to the federal Workforce Innovation and Opportunity Act (Public Law 113-128) and other state or federal programs.
(7) Community college districts, local educational agencies, and other entities participating in a consortium are encouraged to develop and work closely with public and private organizations that offer workforce development programs and pathways to individuals with autism and other developmental disabilities to provide a comprehensive approach to address workforce readiness and employment.
(f) The chancellor’s office shall, in consultation with the California Workforce Development Board, the Academic Senate for California Community Colleges, and its partners formed pursuant to the federal Workforce Innovation and Opportunity Act (Public Law 113-128), as applicable, develop and implement policies and guidance necessary to implement the Community College component of the Strong Workforce Program, including policies and guidance necessary for consortia, including community college districts and their regional partners, to increase the number of aligned middle skill and career technical education courses, programs, pathways, credentials, certificates, and degrees. No later than June 30, 2017, the chancellor’s office shall develop and implement policies and guidance pursuant to this subdivision and bring before the Board of Governors of the California Community Colleges any policies, regulations, and guidance necessary to accomplish all of the following:
(1) Facilitate the development, implementation, and sharing of career technical education effective practices, curriculum models and courses, and community college credentials, certificates, degrees, and programs across regions and among community college districts.
(2) Enable community college districts to develop career technical education and workforce outcomes, and applicable associate degrees and certificates as appropriate.
(3) Provide accessible performance and labor market data that can be used flexibly by participating community college districts and their regional partners to support the implementation of the Strong Workforce Program and related efforts to align regional workforce and education programming with regional labor market needs.
(4) Encourage local efficiency through coordinated and collaborative regional workforce efforts in which community college districts are partners.
(5) Support curriculum processes to ensure that students are able to efficiently transfer college-level career technical education credits across community college districts and to the California State University and the University of California.
(6) Improve sector-based engagement with employers within a region.
(7) Provide, in partnership with employers, work-based learning opportunities for students that increase their employability and earning potential.
(8) Enable community college districts to facilitate and optimize their resources to support the Strong Workforce Program and other related regional workforce development efforts.
(9) Ensure that community college district Strong Workforce Program expenditures are focused on improving student success with workforce outcomes for all students enrolled in community college career technical education courses, programs, and pathways.
(10) (A) For the Community College component only, notwithstanding the June 30, 2017, implementation date specified in this subdivision, develop and implement a plan to streamline the course and curriculum approval process, both at the state and local levels. The plan shall reflect an expedited state approval process for career technical education courses, programs, and certificates, and may include the elimination of an existing state course and program approval process. The plan shall reflect one of the following two options:
(i) A process of course and curriculum approval that enables community college districts to develop a course or program within one academic year and to offer that course or program the subsequent academic year.
(ii) A process of course and curriculum approval that enables community college districts to develop a course or program within one academic semester and to offer that course or program the subsequent academic semester.
(B) The plan described in subparagraph (A) shall also reflect the creation of a process that enables career technical education courses and programs to be portable among community college districts. This process shall enable a community college district to adapt, adopt, or adapt and adopt another community college district’s approved career technical education courses, programs, and curriculum within one academic semester and to offer that course or program, or use that curriculum, the subsequent academic semester.
(C) The chancellor’s office shall consult with the Legislature and the Governor before implementing the plan. The plan shall be developed no later than July 1, 2017, and implemented no later than January 1, 2018.
(11) Eliminate barriers to hiring qualified instructors for career technical education courses, including reevaluating the required minimum qualifications for career technical education instructors.
(g) Community college districts are encouraged to expedite the development of targeted credit or noncredit short-term workforce training programs, in accordance with all of the following:
(1) Short-term workforce training programs that focus on economic recovery and result in job placement.
(2) Short-term workforce training programs that focus on the reskilling and upskilling of individuals.
(3) (A) Short-term workforce training programs that have at least one proven employer partner, demonstrate job vacancies, and submit verification to the chancellor’s office.
(B) For purposes of subparagraph (A), verification includes the projected number of individuals served, completion rates, and job placement rates.
(4) It is the intent of the Legislature that, where possible, short-term noncredit workforce training programs should be used to be responsive to the workforce training needs of employers, with the ability to transition to credit or noncredit courses and programs upon successful completion of a program established pursuant to this subdivision. Colleges are encouraged to develop workforce training that uses competency-based approaches, and applies credit for prior learning where possible.
(h) After June 30, 2017, and only as necessary, the chancellor’s office may develop and implement revised policies and guidance for the Community College component only, and bring regulations before the Board of Governors of the California Community Colleges as necessary for a community college district and its regional partners to accomplish both of the following:
(1) Implement and expand the amount of aligned middle skill and career technical education credentials, certificates, degrees, courses, programs, and pathways in accordance with paragraphs (1) to (11), inclusive, of subdivision (f).
(2) Implement the recommendations of the Strong Workforce Task Force.
(i) No later than June 30, 2026, the chancellor’s office shall revise any policies, regulations, and guidance necessary to provide students, employers, or both, with paid work-based learning opportunities that may be directly supported with funds apportioned directly to a community college district pursuant to clause (iv) of subparagraph (B) of paragraph (2) of subdivision (c) of Section 88825.
(j) (1) For purposes of this section, the chancellor’s office shall consider input provided by relevant stakeholders, including the Academic Senate of the California Community Colleges, the Workforce Pathways Joint Advisory Committee, and the California Workforce Development Board, before implementing revised guidance, policies, or regulatory changes for the Community College component.
(2) For purposes of the Community College component and in compliance with the consultation requirements in Sections 70901 and 70902, the Academic Senate of the California Community Colleges shall establish a career technical education subcommittee to provide recommendations on career technical education issues. No less than 70 percent of the subcommittee shall consist of career technical education faculty. The subcommittee’s charter shall require it to provide assistance to community college districts to ensure that career technical education and its instruction is responsive and aligned to current and emergent industry trends, and ensure that similar courses, programs, and degrees are portable among community college districts.

SEC. 33.

Section 6915 of the Elections Code is amended to read:

6915.

In submitting this state’s certificate of ascertainment as required by Section 5 of Title 3 of the United States Code, the Governor shall certify this state’s electors and state in the certificate that:
(a) The electors will serve as electors unless a vacancy occurs in the office of elector before the end of the meeting at which elector votes are cast, in which case a substitute elector will fill the vacancy.
(b) If a substitute elector is appointed to fill a vacancy, the Governor will submit an amended certificate of ascertainment stating the names on the final list of this state’s electors.

SEC. 34.

Section 12304 of the Elections Code is amended to read:

12304.

The composition of the precinct board shall be determined by the elections official based on election precinct size. The precinct board shall consist of a minimum of one inspector and two clerks. Additional clerk positions may be allocated in proportion to the number of registered voters within the precinct.

SEC. 35.

Section 12309 of the Elections Code is amended to read:

12309.

(a) Following the appointment of members of precinct boards, the elections official shall instruct inspectors so appointed concerning their duties in connection with the conduct of the election, which instruction shall conform to the uniform standards adopted by the Secretary of State pursuant to Section 12309.5.
(b) A person may not serve as an inspector of a precinct board at an election unless instruction has been received in accordance with this section except that, in the case of the emergency disability of a regular inspector, substitute inspectors shall be given any instruction found necessary by the elections official.
(c) At the request of the elections official, the legislative body may contract with any qualified person or organization for purposes of instructing inspectors in accordance with this section.

SEC. 36.

Section 5654 of the Fish and Game Code is amended to read:

5654.

(a) (1) The director, after a notification of a spill or discharge, as those terms are defined in Section 8670.3 of the Government Code, where any fishing, including all commercial, recreational, and nonlicensed subsistence fishing, may take place, or where aquaculture operations are taking place, may close all waters in the vicinity of the spill or discharge or where the spilled or discharged material has spread, or is likely to spread, to the take of all fish or shellfish, or may restrict the take or possession of all fish or shellfish in those waters. In determining where a spill or discharge is likely to spread, the director shall consult with the Administrator of the Office of Spill Prevention and Response. At the time of closure, the department shall make all reasonable efforts to notify the public of the closure, including notification to commercial and recreational fishing organizations, and posting of warnings on public piers and other locations where subsistence fishing is known to occur. The department shall coordinate, when possible, with local and regional agencies and organizations to expedite public notification.
(2) Closure pursuant to paragraph (1) shall be required if the Office of Environmental Health Hazard Assessment finds that a public health threat exists or is likely to exist. In determining the need for a closure, the director shall initiate consultation with the Office of Environmental Health Hazard Assessment no later than 24 hours after a notification of a spill or discharge regarding the likelihood of a public health threat, if any of the following conditions are met:
(A) There is a reported volume of one or more barrels of oil spilled or discharged in inland or estuarine waters or enclosed bays.
(B) There is a reported volume of one or more barrels of oil spilled or discharged and the oil is impacting coastal shorelines.
(C) There is a reported volume of five or more barrels of oil spilled or discharged in open ocean waters.
(3) If none of the conditions in paragraph (2) are met, the director may consult with the Office of Environmental Health Hazard Assessment regarding the likelihood of a public health threat.
(b) Within 48 hours after a closure pursuant to subdivision (a), both of the following shall occur:
(1) The Office of Environmental Health Hazard Assessment shall assess the danger posed to the public from fishing in the area where the spill or discharge occurred or spread, and the danger of consuming fish or shellfish taken in the area where the spill or discharge occurred or spread.
(2) The director shall, in consultation with the Office of Environmental Health Hazard Assessment, determine whether the areas closed to the take of fish or shellfish should be revised to prevent any potential take or consumption of any fish or shellfish that may have been contaminated by the spill or discharge, as determined pursuant to paragraph (1).
(c) Within 48 hours after a closure pursuant to subdivision (a), or as soon as is feasible, the director, in consultation with the Office of Environmental Health Hazard Assessment, shall assess and determine the potential danger from consuming fish or shellfish that have been contained in a recirculating seawater tank onboard a vessel that may become contaminated by the vessel’s movement through an area where the spill or discharge occurred or spread.
(d) If the Office of Environmental Health Hazard Assessment finds in the assessment pursuant to subdivision (b) that there is no significant risk to the public or to the fisheries, the director may immediately reopen a closed area and waive the testing requirements of subdivision (e).
(e) Except under the conditions specified in subdivision (d), after complying with subdivisions (a) and (b), the director, in consultation with the Office of Environmental Health Hazard Assessment, within seven days after a closure, shall order expedited tests of fish or shellfish that would have been open for take for commercial, recreational, or subsistence purposes in the closed area if not for the closure, to determine the levels of contamination, if any, and whether the fish or shellfish is safe for human consumption.
(f) (1) As soon as possible after receiving a notification from the Office of Environmental Health Hazard Assessment that no threat to human health exists from the spill or discharge or that no contaminant from the spill or discharge is present that could contaminate fish or shellfish, the director shall reopen the areas closed pursuant to this section in a manner that promotes fair and orderly fisheries. The director shall maintain a closure in any remaining portion of the closed area where the Office of Environmental Health Hazard Assessment finds contamination from the spill or discharge persists that may adversely affect human health.
(2) The director, in consultation with the commission, may also maintain a closure in any remaining portion of the closed area where commercial fishing or aquaculture occurs and where the department determines, pursuant to this paragraph, that contamination from the spill or discharge persists that may cause the waste of commercial fish or shellfish as regulated by Section 7701.
(g) To the extent feasible, the director shall consult with representatives of commercial and recreational fishing associations and subsistence fishing communities regarding the extent and duration of a closure, testing protocols, and findings. If a spill or discharge occurs within the lands governed by a Native American tribe or affects waters flowing through tribal lands, or tribal fisheries, the director shall consult with the affected tribal governments.
(h) The director shall, and the Office of Environmental Health Hazard Assessment may, seek full reimbursement from the responsible party or parties for the spill or discharge for all reasonable costs incurred by the department or the Office of Environmental Health Hazard Assessment, respectively, in carrying out this section, including, but not limited to, all testing.
(i) It is unlawful to take any fish or shellfish from any waters closed pursuant to this section or to otherwise violate any restriction imposed pursuant to this section.

SEC. 37.

Section 21283 of the Food and Agricultural Code is amended to read:

21283.

(a) Unless otherwise provided in this article, inspection fees shall be paid at the point of inspection.
(b) The fee for inspection is one dollar and sixty cents ($1.60) for each animal that is inspected, except as follows:
(1) The fee for inspection at a registered feedlot, as defined in Section 20015, is eighty-five cents ($0.85) for each animal that is inspected.
(2) The fee for inspecting an animal that originated in another state and was shipped into this state for feeding direct to a registered feedlot is sixty cents ($0.60) for each animal that is inspected.
(3) The fee for inspecting an animal that was inspected at a posted stockyard, or posted saleyard, in this state, and shipped direct to a registered feedlot, is sixty cents ($0.60) for each animal that is inspected.

SEC. 38.

Section 1031.5 of the Government Code is amended to read:

1031.5.

(a) (1) In addition to the standards in Section 1031, commencing January 1, 2031, each state officer and employee designated as a peace officer as described in Section 830.1, with the exception of those described in subdivision (c) of that section, 830.2, with the exception of those described in subdivision (d) of that section, 830.3, 830.32, or 830.33 of the Penal Code, or any other peace officer employed by an agency that participates in the Peace Officer Standards and Training (POST) program shall attain one or more of the following degrees or certificates no later than 36 months after receiving their basic certificate by the commission:
(A) An associate’s degree from a community college that is accredited by an agency recognized by the United States Department of Education.
(B) A bachelor’s degree or other advanced degree from a college or university that is accredited by an agency recognized by the United States Department of Education.
(C) A modern policing degree, as described in subdivision (b).
(D) A professional policing certificate, as described in subdivision (c).
(2) Notwithstanding paragraph (1), a person who is either of the following shall attain one or more of the degrees or certificates set forth in subparagraph (A), (B), (C), or (D) of paragraph (1) no later than 48 months after receiving their basic certificate by the commission:
(A) An individual with experience as a sworn peace officer from another state who served as a peace officer for less than eight years and with a separation in good standing.
(B) An individual with experience serving in the Armed Forces of the United States who served for less than eight years and with an honorable discharge if their military service has concluded.
(3) Paragraph (1) does not apply to either of the following:
(A) An individual with at least eight years of experience as a sworn peace officer from another state and with a separation in good standing.
(B) An individual with at least eight years of military service in the Armed Forces of the United States and with an honorable discharge if military service has concluded.
(b) A modern policing degree shall meet all of the following criteria:
(1) Require at least 60 semester units or 90 quarter units of degree-applicable credit coursework from a college or university that is accredited by an agency recognized by the United States Department of Education.
(2) Award credits for required commission-certified academy course instruction.
(3) Offer courses that include, but are not limited to, the following list of subjects:
(A) Communications.
(B) Psychology.
(C) Writing.
(D) Ethics.
(E) Criminal Justice.
(c) A professional policing certificate may be offered by any accredited college or university, and shall meet all of the following criteria:
(1) Require at least 16 semester units or 24 quarter units of degree-applicable credit coursework from a college or university that is accredited by an agency recognized by the United States Department of Education.
(2) Offer courses that include, but are not limited to, the following list of subjects:
(A) Communications.
(B) Psychology.
(C) Writing.
(D) Ethics.
(E) Criminal Justice.
(d) (1) Coursework completed as part of the commission-certified academy shall count toward a modern policing degree as described in subdivision (b) or a professional policing certificate as described in subdivision (c) and may count toward any associate degree or bachelor’s degree described in subparagraph (A) or (B) of paragraph (1) of subdivision (a).
(2) Coursework completed as part of military or law enforcement training that is within the curriculum of a modern policing degree as described in subdivision (b) or a professional policing certificate as described in subdivision (c) by an individual during prior employment in the military or in law enforcement in another state may count toward a modern policing degree as described in subdivision (b) or a professional policing certificate as described in subdivision (c).
(3) Coursework completed as part of the commission-certified academy shall not solely satisfy the unit requirement for a professional policing certificate.
(e) This section does not apply to any person who, as of December 31, 2030, is currently enrolled in a basic academy or is employed as a peace officer by a public entity in California.
(f) This section does not apply to any person who is employed as a peace officer by the State Department of State Hospitals.

SEC. 39.

Section 6215 of the Government Code is amended to read:

6215.

The Legislature finds and declares the following:
(a) Persons working in the reproductive health care field, specifically the provision of terminating a pregnancy, are often subject to harassment, threats, and acts of violence by persons or groups.
(1) In 2000, 30 percent of respondents to a Senate Office of Research survey of 172 California reproductive health care providers reported they or their families had been targets of acts of violence by groups that oppose reproductive rights at locations away from their clinics or offices.
(2) Persons and groups that oppose reproductive rights attempt to stop the provision of legal reproductive health care services by threatening reproductive health care service providers, clinics, employees, volunteers, and patients. The names, photographs, spouses’ names, and home addresses of these providers, employees, volunteers, and patients have been posted on internet websites. From one website list that includes personal information of reproductive health care service providers, seven persons have been murdered and 14 have been injured. As of August 5, 2002, there are 78 Californians listed on this site. The threat of violence toward reproductive health care service providers and those who assist them has clearly extended beyond the clinic and into the home.
(3) Nationally, between 1992 and 1996, the number of reproductive health care service providers declined by 14 percent. Nearly one out of every four women must travel more than 50 miles to obtain reproductive health care services dealing with the termination of a pregnancy. There exists a fear on the part of physicians to enter the reproductive health care field and to provide reproductive health care services.
(4) Reproductive health care services are legal medical procedures. In order to prevent potential acts of violence from being committed against providers, employees, and volunteers who assist in the provision of reproductive health care services and the patients seeking those services, it is necessary for the Legislature to ensure that the home address information of these individuals is kept confidential.
(b) Other individuals are also subject to harassment, threats, and acts of violence from the public because of their work with the public, which have become more frequent and serious since the start of the COVID-19 pandemic. They include, but are not limited to, public health officers and public health workers, election workers, school board members, and code enforcement officers.
(1) For example, persons working in the elections field are often subject to harassment, threats, and acts of violence by persons or groups. Violent threats and harassment of election workers reached alarming levels in the 2020 general election and continued into 2021. A survey of election officials in 2021 found that one in three election officials feel unsafe because of their job, and nearly one in five listed threats to their lives as a job-related concern.
(2) The names, photographs, and home addresses of these public servants have been posted on internet websites. While performing election-related duties, election officials were subjected to explicit death threats, anger-laden language and demoralizing behavior, statements that threatened their own and their family’s safety and well-being, and statements that interfered with their ability to do their job. The threat of violence toward election workers has extended beyond the polling place and into the home.
(3) Experts predict a massive departure from the profession of election administration if protective measures are not implemented. In California, 15 percent of election officials have retired since the 2020 election. Elections play a vital role in a free and fair society and are a cornerstone of American democracy, but those charged with administrating elections are increasingly subjected to violent threats, harassment, and intimidation. In order to prevent acts of violence from being committed against employees who assist in the administration of elections, it is necessary for the Legislature to ensure that the home addresses of these individuals are kept confidential.
(4) While many of these individuals wish to protect the confidentiality of their home addresses by means of address confidentiality programs operated by the Secretary of State, they may not be eligible to do so under current law. It is the intent of the Legislature in this chapter to offer address protection services to persons whose work for a public entity exposes them to violent threats, harassment, and intimidation from the public that are equivalent to what is experienced by those now eligible for the address confidentiality program pursuant to this chapter.
(c) The purpose of this chapter is to enable state and local agencies to respond to requests for public records without disclosing the residential location of a designated health care services provider, employee, volunteer, or patient, as defined in Section 6215.1, or other individual who faces threats of violence or violence from the public because of their work for a public entity, to enable interagency cooperation with the Secretary of State in providing address confidentiality for program participants, and to enable state and local agencies to accept a program participant’s use of an address designated by the Secretary of State as a substitute mailing address.

SEC. 40.

Section 6588.7 of the Government Code is amended to read:

6588.7.

(a) An authority whose financing activities are limited to financing utility projects and projects for the use or benefit of public agencies providing water, wastewater, or electrical service may finance utility projects as provided in this section, including the issuance of rate reduction bonds and the imposition and adjustment of utility project charges.
(b) (1) A local agency that owns and operates a publicly owned utility may apply to an authority specified in subdivision (a) to finance costs of a utility project for the publicly owned utility with the proceeds of rate reduction bonds if at the time of application, bonds payable from revenues of the publicly owned utility are, or upon issuance would be, rated investment grade by a nationally recognized rating agency. In its application to an authority for the financing or refinancing, the local agency shall specify the utility project to be financed by the rate reduction bonds, the maximum principal amount, the maximum interest rate, and the maximum stated terms of the rate reduction bonds.
(2) (A) In order to allow the state to review the issuance of rate reduction bonds, collect data, ensure transparency, and conduct an independent analysis of the effectiveness of the use of rate reduction bonds pursuant to this section, the Capital Programs and Climate Financing Authority, as defined in Section 44504 of the Health and Safety Code, shall review each issue of bonds and shall determine whether the issue is qualified for issuance under the provisions of this section. The Capital Programs and Climate Financing Authority shall determine that an issue of rate reduction bonds is qualified for issuance under this section, if the issuance satisfies all of the following:
(i) The issuance meets the criteria specified in paragraphs (1) to (3), inclusive, of subdivision (c), or, if the local agency elects to make a determination under paragraph (4) of subdivision (c), meets the criteria specified in paragraphs (1), (2), and (4) of subdivision (c).
(ii) The projected financing costs fall within the normal range of financing costs for comparable types of debt issuance.
(B) The Capital Programs and Climate Financing Authority shall determine that an issue of rate reduction bonds is qualified for issuance pursuant to subparagraph (A) solely on the basis of the submitted documentation referred to in subparagraph (A), and the determination shall not be conditional in any respect, including conditional on the submission or review of additional material after the determination.
(3) The Capital Programs and Climate Financing Authority shall establish procedures for the expeditious review of a proposed issuance pursuant to this section, including, but not limited to, the establishment of reasonable application fees to reimburse the Capital Programs and Climate Financing Authority for costs incurred in administering this section. The Capital Programs and Climate Financing Authority may charge additional fees in an amount equal to the amount of any additional expenses incurred by the authority in retaining an independent financial advisor to review the application under circumstances involving the verification of all requirements of this section. Any fees for review and processing of the application shall be nonrefundable.
(4) The Capital Programs and Climate Financing Authority shall provide an explanation in writing for any refusal to qualify a proposed issuance but may not alter or modify any term or condition related to the utility project property.
(5) The Capital Programs and Climate Financing Authority shall take action on any completed application submitted to it pursuant to this section no later than the next meeting of the Capital Programs and Climate Financing Authority that occurs after at least 60 days following receipt of the application.
(6) The review and qualification pursuant to this section may be concurrent with an authority’s processing of an application for financing or refinancing so as to allow for the issuance of rate reduction bonds as quickly as feasible.
(7) Notwithstanding any other law, the Capital Programs and Climate Financing Authority may adopt regulations relating to this section as emergency regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2. For purposes of that chapter, including Section 11349.6, the adoption of the regulations shall be considered by the Office of Administrative Law to be necessary for the immediate preservation of the public peace, health and safety, and general welfare.
(8) (A) Annually, no later than March 31, the Capital Programs and Climate Financing Authority shall submit to the Legislature, including to the relevant legislative policy committees having jurisdiction over energy and public utilities issues, a report of its activities pursuant to this section for the preceding calendar year ending December 31. The Capital Programs and Climate Financing Authority shall require information from applicants to ensure that the necessary data is available to complete this report. The report may be submitted as a part of the report required pursuant to Section 44538 of the Health and Safety Code. The report shall include all of the following:
(i) A listing of applications received.
(ii) A listing of proposed issuances qualified under the provisions of this section.
(iii) A report of bonds sold, the interest rates on the bonds, whether the bond sales were pursuant to public bid or were negotiated, and any rating given the bonds by a nationally recognized securities rating organization.
(iv) A specification of proposed issuances qualified but not yet issued.
(v) A comparison of the interest rates and transactional costs on issuances qualified under this section with interest rates on comparable types of debt issuance occurring at or near the same time as the issuances.
(B) A report to be submitted pursuant to this paragraph shall be submitted in compliance with Section 9795.
(9) The provisions of paragraphs (2) to (8), inclusive, shall not apply to the issuance of rate reduction bonds for a publicly owned utility if the determinations of the local agency pursuant to subdivision (c) are subject to review by a ratepayer advocate or similar entity whose function is to provide public independent analysis of a public utility’s actions as they relate to water, wastewater, or electric rates.
(c) A local agency shall not apply to an authority for financing or refinancing of a utility project pursuant to this section unless the legislative body of the local agency has determined all of the following:
(1) The project to be financed or refinanced is a utility project.
(2) The local agency is electing to finance or refinance costs of the utility project pursuant to this section and the financing costs associated with the financing or refinancing are to be paid from utility project property, including the utility project charge for the rate reduction bonds issued for the utility project in accordance with this section.
(3) Based on information available to, and projections used by, the legislative body, the rates of the publicly owned utility plus the utility project charge resulting from the financing or refinancing of the utility project with rate reduction bonds are expected to be lower than the rates of the publicly owned utility if the utility project was financed or refinanced with bonds payable from revenues of the publicly owned utility.
(4) A local agency with a publicly owned utility having 500,000 or more retail customers may, in lieu of making the determination in paragraph (3), determine that the use of rate reduction bonds to finance or refinance utility projects provides substantial benefits to the publicly owned utility. These benefits may include, but are not limited to, lower interest rates on rate reduction bonds and more favorable capitalization and debt service coverage ratio treatment that results in gross or present value lifetime savings for the publicly owned utility.
(d) (1) Subject to the requirements of Article XIII D of the California Constitution, to the extent applicable, an authority financing the costs of a utility project or projects for a local agency’s publicly owned utility with rate reduction bonds is authorized and directed to impose and collect a utility project charge with respect to the rate reduction bonds as provided in this section. The imposition of the utility project charge shall be made and evidenced by the adoption of a financing resolution by the governing body of the authority. Upon the issuance of rate reduction bonds, the financing resolution adopted in connection with the issuance of rate reduction bonds shall be irrevocable. The financing resolution with respect to financing or refinancing a utility project or projects with rate reduction bonds for a publicly owned utility shall include all of the following:
(A) The addition of a separate charge to the bill of each customer of the publicly owned utility in the class or classes of customers specified in the financing resolution.
(B) A description of the financial calculation, formula, or other method that the authority is to use to determine the utility project charge. The calculation, formula, or other method shall include a periodic adjustment method to the then current utility project charge, to be applied at least annually, that shall be used by the authority to correct for any overcollection or undercollection of financing costs from the utility project charge or any other adjustment necessary to ensure timely payment of the financing costs of the rate reduction bonds, including, but not limited to, the adjustment of the utility project charge to pay any debt service coverage requirement for the rate reduction bonds. The financial calculation, formula, or other method, including the periodic adjustment method, established in the financing resolution pursuant to this section, and the allocation of utility project charges to, and among, customers of the publicly owned utility shall be decided solely by the governing body of the authority and shall be final and conclusive. In no event shall the periodic adjustment method established in the financing resolution be applied less frequently than required by the financing resolution and the documents relating to the applicable rate reduction bonds. Once the financial calculation, formula, or other method for determining the utility project charge, and the periodic adjustment method, have been established in the financing resolution and have become final and conclusive as provided in this section, they shall not be changed.
(C) Notwithstanding any other provision of this section, the imposition of a utility project charge shall comply with the requirements of Article XIII D of the California Constitution, to the extent applicable, including, but not limited to, the provision of a notice containing the initial amount of the proposed utility project charge and the periodic adjustment method by which the utility project charge amount could subsequently change.
(D) A requirement that the authority enter into a servicing agreement for the collection of the utility project charge with the local agency for which the financing is undertaken or its publicly owned utility and the local agency or its publicly owned utility shall act as a servicing agent for purposes of collecting the utility project charge as long as the servicing agreement remains in effect. Moneys collected by the local agency or its publicly owned utility, acting as a servicing agent on behalf of the authority, as a utility project charge shall be held in trust for the exclusive benefit of the persons entitled to the financing costs to be paid, directly or indirectly, from the utility project charge and shall not lose their character as revenues of the authority by virtue of possession by the local agency or its publicly owned utility. The local agency or its publicly owned utility shall provide the authority with the information as to estimated sales of water, wastewater, or electrical services and any other information concerning the publicly owned utility required by the authority in connection with the initial establishment and the adjustment of the utility project charge.
(2) The determination of the legislative body of the local agency that a project to be financed with rate reduction bonds is a utility project shall be final and conclusive and the rate reduction bonds issued to finance the utility project and the utility project charge imposed relating to the rate reduction bonds shall be valid and enforceable in accordance with the terms of the financing resolution and the documents relating to the rate reduction bonds. The authority shall require, in its financing resolution with respect to a utility project charge, that as long as a customer in the class or classes of customers specified in the financing resolution receive water or electricity or discharge wastewater through the facilities of the publicly owned utility, the customer shall pay the utility project charge regardless of whether or not the customer has an agreement to purchase water or electricity or discharge wastewater from a person or entity other than the publicly owned utility. The utility project charge shall be a nonbypassable charge to all customers of the publicly owned utility in the class or classes of customers specified in the financing resolution at the time of adoption of the financing resolution and all future customers in that class or classes. If a customer of the publicly owned utility that is subject to a utility project charge enters into an agreement to purchase water or electricity or discharge wastewater from a person or entity other than the publicly owned utility, the customer shall remain liable for the payment of its share of the utility project charge as if it had not entered into the agreement. The liability may be discharged by the continued payment of its share of the utility project charge as it accrues or by a one-time payment, as determined by the authority. All provisions of a financing resolution adopted pursuant to this subdivision shall be binding on the authority.
(3) The timely and complete payment of all utility project charges by a person liable for the charges shall be a condition of receiving water, wastewater, or electrical service, as applicable, from the publicly owned utility of the local agency and each of the local agencies and their publicly owned utilities is authorized to use its established collection policies and all rights and remedies provided by law to enforce payment and collection of the utility project charge. In no event shall a person liable for a utility project charge be entitled or authorized to withhold payment, in whole or in part, of the utility project charge for any reason.
(4) The authority shall determine whether adjustments to the utility project charge relating to rate reduction bonds are required upon the issuance of the rate reduction bonds and at least annually, and at additional intervals as may be provided for in the financing resolution or the documents relating to the rate reduction bonds. Each adjustment shall be made and put into effect in accordance with the financial calculation, formula, or other method that the authority is to use to determine the utility project charge pursuant to the financing resolution expeditiously after the authority’s determination that the adjustment is required.
(5) All revenues with respect to utility project property related to rate reduction bonds, including payments of the utility project charge, shall be applied first to the payment of the financing costs of the related rate reduction bonds then due, including the funding of reserves for the rate reduction bonds, with any excess being applied as determined by the authority for the benefit of the utility for which the rate reduction bonds were issued.
(6) The authority shall be obligated to impose and collect the utility project charge relating to rate reduction bonds in amounts, based on estimates of water or electricity usage or wastewater discharge subject to the utility project charge, sufficient to pay on a timely basis the financing costs associated with the rate reduction bonds when due. The pledge of a utility project charge to secure the payment of rate reduction bonds shall be irrevocable, and the State of California, the authority, or any limited liability company acting pursuant to subdivision (j) shall not reduce, impair, or otherwise adjust the utility project charge, except that the authority shall implement the periodic adjustments to the utility project charge relating to rate reduction bonds as required by the applicable financing resolution and the documents relating to the rate reduction bonds. Revenue from a utility project charge shall be deemed special revenue of the authority and shall not constitute revenue of the local agency or its publicly owned utility for any purpose, including, without limitation, any dedication, commitment, or pledge of revenue, receipts, or other income that the local agency or its publicly owned utility has made or will make for the security of any of its obligations.
(7) A utility project charge shall constitute utility project property when, and to the extent that, a financing resolution authorizing the utility project charge has become effective in accordance with its terms, and the utility project property shall thereafter continuously exist as property for all purposes with all of the rights and privileges of this section for the period, and to the extent, provided in the financing resolution, but in any event until all financing costs with respect to the related rate reduction bonds are paid in full, including all arrearages thereon.
(8) Utility project property shall constitute a current property right notwithstanding that the value of the property right will depend on consumers using water, wastewater, or electrical services or, in those instances where consumers are customers of the publicly owned utility, the publicly owned utility performing certain services.
(9) If a local agency for which rate reduction bonds have been issued and remain outstanding ceases to operate a water, wastewater, or electric utility, either directly or through its publicly owned utility, references in this section to the local agency or to its publicly owned utility shall be to the entity providing water, wastewater, or electrical services in lieu of the local agency and the entity shall assume and perform all obligations of the local agency and its publicly owned utility required by this section and the servicing agreement with the local agency while the rate reduction bonds remain outstanding.
(e) (1) Rate reduction bonds shall be within the parameters of the financing or refinancing set forth by the local agency pursuant to subdivision (b) in connection with the rate reduction bonds and the proceeds of the rate reduction bonds made available to the local agency or its publicly owned utility shall be used for the utility project identified in the application for financing or refinancing of the utility project or projects pursuant to subdivision (b).
(2) An authority shall authorize the issuance of rate reduction bonds by a resolution of its governing body. An authority issuing rate reduction bonds shall include in its preliminary notice and final report for the rate reduction bonds submitted to the California Debt and Investment Advisory Commission pursuant to Section 8855 a statement that the rate reduction bonds are being issued pursuant to this section. An authority issuing rate reduction bonds shall include in its final report for the rate reduction bonds submitted to the California Debt and Investment Advisory Commission pursuant to Section 8855 the estimated savings or local agency benefit, if applicable pursuant to paragraph (4) of subdivision (c), realized by issuing the rate reduction bonds rather than bonds payable from the revenues of the publicly owned utility for whose benefit the rate reduction bonds were issued. Rate reduction bonds shall be nonrecourse to the credit or any assets of the local agency and the publicly owned utility for which the utility project is financed and shall be payable from, and secured by a pledge of, the utility project property relating to the rate reduction bonds and any additional security or credit enhancement specified in the documents relating to the rate reduction bonds.
(3) An authority issuing rate reduction bonds shall pledge the utility project property relating to the rate reduction bonds as security for the payment of the rate reduction bonds, which pledge shall be made pursuant to, and with the effect set forth in Section 5451. All rights of an authority with respect to utility project property pledged as security for the payment of rate reduction bonds shall be for the benefit of, and enforceable by, the beneficiaries of the pledge to the extent provided in the documents relating to the rate reduction bonds.
(4) To the extent that any interest in utility project property is pledged as security for the payment of rate reduction bonds, the applicable local agency or its publicly owned utility shall contract with the authority, which contract shall be part of the utility project property, that the local agency or its publicly owned utility will continue to operate its publicly owned utility system that includes the financed utility project to provide service to its customers, will, as servicer, collect amounts in respect of the utility project charge for the benefit and account of the authority and the beneficiaries of the pledge of the utility project charge and will account for and remit these amounts to, or for the account of, the authority.
(5) Notwithstanding any other law, any requirement under this section, a financing resolution, any other resolution of the authority, or the provisions of the documents relating to rate reduction bonds to the effect that the authority shall take action with respect to the utility project property relating to the rate reduction bonds shall be binding upon the authority, as its governing body may be constituted from time to time, and the authority shall have no power or right to rescind, alter, or amend any resolution or document containing the requirement.
(6) Notwithstanding any other law, except as otherwise provided in this section with respect to adjustments to a utility project charge, the recovery of the financing costs for the rate reduction bonds from the utility project charge shall be irrevocable and the authority shall not have the power either by rescinding, altering, or amending the applicable financing resolution or otherwise, to revalue or revise for ratemaking purposes the financing costs of rate reduction bonds, determine that the financing costs for the related rate reduction bonds or the utility project charge is unjust or unreasonable, or in any way reduce or impair the value of utility project property that includes the utility project charge, either directly or indirectly; nor shall the amount of revenues arising with respect to the financing costs for the related rate reduction bonds or the utility project charge be subject to reduction, impairment, postponement, or termination for any reason until all financing costs to be paid from the utility project charge are fully met and discharged. Except as otherwise provided in this section with respect to adjustments to a utility project charge, the State of California does hereby pledge and agree with the owners of rate reduction bonds that the State of California shall neither limit nor alter the financing costs or the utility project property, including the utility project charge, relating to the rate reduction bonds, or any rights in, to, or under, the utility project property until all financing costs with respect to the rate reduction bonds are fully met and discharged. This section does not preclude limitation or alteration if and when adequate provision shall be made by law for the protection of the owners. The authority is authorized to include this pledge and undertaking by the State of California in the governing documents for rate reduction bonds. Notwithstanding any other provision of this section, the authority shall make the adjustments to the utility project charge relating to rate reduction bonds provided by this section and the documents related to those rate reduction bonds as may be necessary to ensure timely payment of all financing costs with respect to the rate reduction bonds. The adjustments shall not impose the utility project charge upon classes of customers that were not subject to the utility project charge pursuant to the financing resolution imposing the utility project charge.
(f) (1) Financing costs in connection with rate reduction bonds do not constitute a debt or liability of the State of California or of any political subdivision thereof, other than the special obligation of the authority, and do not constitute a pledge of the full faith and credit of the State of California or any of its political subdivisions, including the authority, but are payable solely from the funds provided therefor under this section and in the documents relating to the rate reduction bonds. This subdivision shall in no way preclude guarantees or credit enhancements in connection with rate reduction bonds. All the rate reduction bonds shall contain on the face thereof a statement to the following effect:
Neither the full faith and credit nor the taxing power of the State of California or any political subdivision thereof is pledged to the payment of the principal of, or interest on, this bond.
(2) The issuance of rate reduction bonds shall not directly, indirectly, or contingently obligate the State of California or any political subdivision thereof to levy or to pledge any form of taxation to pay the rate reduction bonds or to make any appropriation for their payment.
(g) (1) Utility project property shall constitute property for all purposes, including for contracts securing rate reduction bonds, whether or not the revenues and proceeds arising with respect thereto have accrued.
(2) Subject to the terms of the pledge document with respect to a pledge of utility project property, the validity and relative priority of a pledge created or authorized under this section is not defeated or adversely affected by the commingling of revenues arising with respect to the utility project property with other funds of the local agency or the publicly owned utility collecting a utility project charge on behalf of an authority.
(h) (1) There shall exist a statutory lien on the utility project property relating to rate reduction bonds. Upon the effective date of the financing resolution relating to rate reduction bonds, there shall exist a first priority statutory lien on all utility project property, then existing or, thereafter arising, to secure the payment of the rate reduction bonds. This lien shall arise pursuant to law by operation of this section automatically without any action on the part of the authority, the local agency or its publicly owned utility, or any other person. This lien shall secure the payment of all financing costs, then existing or subsequently arising, to the holders of the rate reduction bonds, the trustee or representative for the holders of the rate reduction bonds, and any other entity specified in the financing resolution or the documents relating to the rate reduction bonds. This lien shall attach to the utility project property regardless of who shall own, or shall subsequently be determined to own, the utility project property including any local agency or its publicly owned utility, the authority, or any other person. This lien shall be valid and enforceable against the owner of the utility project property and all third parties upon the effectiveness of the financing resolution without any further public notice.
(2) The statutory lien on utility project property created by this section is a continuously perfected lien on all revenues and proceeds arising with respect thereto, whether or not the revenues or proceeds have accrued. Utility project property shall constitute property for all purposes, including for contracts securing rate reduction bonds, whether or not the revenues or proceeds arising with respect thereto have accrued.
(3) In addition, the authority may require, in a financing resolution creating utility project property, that, in the event of default by the local agency or its publicly owned utility, in payment of revenues arising with respect to the utility project property, any court in the state, upon the application by the beneficiaries of the statutory lien, and without limiting any other remedies available to the beneficiaries by reason of the default, shall order the sequestration and payment to the beneficiaries of revenues arising with respect to the utility project property.
(i) Notwithstanding any other law, an authority or a limited liability company acting pursuant to subdivision (j) that has financed a utility project through the issuance of rate reduction bonds is not authorized, and no governmental officer or organization shall be empowered to authorize the authority, to become a debtor in a case under the United States Bankruptcy Code (11 U.S.C. Sec. 101 et seq.) or to become the subject of any similar case or proceeding under any other law, whether federal or of the State of California, as long as any payment obligation from utility project property remains with respect to the rate reduction bonds.
(j) An authority may elect to implement a financing of a utility project pursuant to this section by forming a single member limited liability company and by authorizing the company to adopt the financing resolution. The authority may issue rate reduction bonds payable from, and secured by a pledge of, amounts paid by the company to the authority from the applicable utility project property pursuant to an agreement. The provisions of subdivisions (g) and (h) shall apply to and be the exclusive method of perfecting a pledge of utility project property by the company securing the payment of financing costs under any agreement of the company in connection with the issuance of rate reduction bonds. Reference to the authority in this section and in all related defined terms shall mean or include the company as necessary to implement this subdivision.
(k) After December 31, 2036, the authority to issue rate reduction bonds under this section terminates.

SEC. 41.

The heading of Chapter 17.45 (commencing with Section 7289) of Division 7 of Title 1 of the Government Code, as added by Section 2 of Chapter 125 of the Statutes of 2025, is repealed.

SEC. 42.

Section 8010 of the Government Code is amended to read:
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