AMENDED IN SENATE MARCH 15, 2011

AMENDED IN SENATE MARCH 14, 2011

california legislature—2011–12 regular session

ASSEMBLY BILL No. 95

Introduced by Assembly Member Brownley Committee on Budget

January 10, 2011

An act to amend Sections 19606.1, 19607.5, 19608.3, 19620.1, and

19627.5 of, to amend and renumber Sections 19621.1, 19621.3, 19622.1,
19622.2, 19622.3, 19622.4, 19630.5, and 19639 of, and to repeal
Sections 19606.3, 19606.4, 19620.2, 19621, 19621.2, 19630, 19632.5,
19632.6, 19635, 19638, and 19638.5 of, the Business and Professions
Code, to add Section 25359.21 to the Health and Safety Code, to add
Section 5007 to the Public Resources Code, to add Section 326 to the
Public Utilities Code, to amend Section 8352.6 of the Revenue and
Taxation Code, to amend Section 13260 of the Water Code, and to
amend Section 27 of Chapter 718 of the Statutes of 2010, relating to
public resources, making an appropriation therefor, and declaring the
urgency thereof, to take effect immediately, bill related to the budget.

legislative counsel’s digest

AB 95, as amended, Brownley Committee on Budget. Public
resources.
(1)  Existing law establishes the Fair and Exposition Fund for the
purpose of allocating moneys to provide financial support for the
network of California fairs. Existing law requires that $32,000,000 be
transferred annually from the General Fund to the credit of a separate
account of the fund. Existing law provides that the revenues in that
separate account are continuously appropriated to the Department of

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Food and Agriculture for specified purposes. In addition, existing law

requires the deposit of $10,000,000 of the license fees for horse racing
meetings into the fund and continuously appropriates those funds to the
51st District Agricultural Association for specified purposes.
This bill would repeal that annual transfer from the General Fund and
those other provisions and make related changes.
(2)  Existing law requires specified revenues received by the California
Horse Racing Board to be deposited into the State Treasury to the credit
of the Fair and Exposition Fund. Existing law provides that, in addition
to those moneys deposited in the fund, the Legislature shall appropriate,
and the board shall deposit in the fund, sums deemed necessary for the
support of the board, as specified, and to the department for oversight
of the network of California fairs, for contributions to the
Unemployment Fund by the network of fairs, and for auditing of
specified fairs. Any unallocated balance of revenues received by the
board is continuously appropriated for allocation by the Secretary of
Food and Agriculture for capital outlay to California fairs for specified
projects or for general operational support.
This bill would repeal those provisions relating to revenues received
by the board and would instead provide that, from revenue received by
the department, the Legislature shall appropriate to the department sums
deemed necessary for oversight of the network of California fairs and
for auditing of specified fairs.
(3)  Existing law requires the Secretary of Food and Agriculture to
annually project the available revenues from the fund described above,
and to prepare an annual expenditure plan for funds available from the
fund. Existing law also requires the secretary to prepare and submit to
the Department of Finance an estimate of the contributions, or the cost
of benefits in lieu of contributions, payable to the Unemployment Fund
by all California fairs, as specified.
This bill would delete those provisions. The bill would also make
technical changes.
(4)  Existing law authorizes the Department of Toxic Substances
Control to compel a responsible party to take or pay for appropriate
removal or remediation action necessary to protect public health and
safety and the environment at the Santa Susana Field Laboratory (SSFL)
site in Ventura County. The sale, lease, sublease, or other transfer of
any land presently or formerly occupied by the Santa Susana Field
Laboratory is prohibited unless the Director of Toxic Substances Control

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certifies that the land has undergone complete remediation pursuant to

specified protective standards.
This bill would provide that an administrative order on consent for
the site, signed on December 6, 2010, between the department and the
United States Department of Energy and a similar order between the
department and the National Aeronautics and Space Administration,
constitute the cleanup requirements and obligations for that portion of
the site that is subject to those administrative orders and would require
the administrative orders to result in the cleanup of the soil so that the
level of radiological or chemical contaminants in the soil does not
exceed local background levels, except as specified. The bill would
require the department to enforce the administrative orders and the
transfer prohibitions imposed on that site.
(5)  
(4)  Under existing law, the Department of Parks and Recreation has
control of the state park system. The existing Tort Claims Act provides
for the liability and immunity of a governmental entity for its acts or
omissions that cause harm to persons.
This bill would require the Department of Parks and Recreation to
achieve any required budget reductions by closing, partially closing,
and reducing services at selected units of the state park system and
would require the department to select the units to be closed based
solely on specified factors.
The bill would provide immunity to a public entity and a public
employee for injury or damage either caused by a condition of public
property in or otherwise occurring at a state park system unit that is
designated as closed, partially closed, or subject to service reduction
by the department pursuant to these provisions.
(6)  
(5)  Under existing law, the Public Utilities Commission has
regulatory authority over public utilities, as defined. Existing law
requires the commission, by January 10 of each year, to report to the
Joint Legislative Budget Committee and appropriate fiscal and policy
committees of the Legislature, on all sources and amounts of funding
and actual and proposed expenditures related to specified entities or
programs established by the commission. Existing law requires the
commission to adopt an updated Conflict of Interest Code and Statement
of Incompatible Activities.
This bill would require that the commission, by January 10 of each
year, report to the Joint Legislative Budget Committee and appropriate

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fiscal and policy committees of the Legislature, on all sources and

amounts of funding and actual and proposed expenditures related to
interactions by the commission, its officers, or its staff with the
California Public Utilities Commission Foundation. The bill would
require that within 8 weeks of any contribution to the foundation made
at the behest of a member of the commission, its officers, or its staff,
that the commission report the contribution to the Joint Legislative
Budget Committee and appropriate fiscal and policy committees of the
Legislature and include a certification that the contribution does not
violate the Conflict of Interest Code and Statement of Incompatible
Activities.
(7)  
(6)  Existing law requires certain moneys on the first day of every
month to be transferred from the Motor Vehicle Fuel Account to the
Off-Highway Vehicle Trust Fund that are attributable to taxes imposed
upon distribution of motor vehicle fuel related to specified off-highway
motor vehicles and off-highway vehicle activities. The moneys in the
fund are required to be used, upon appropriation, for specified purposes
related to off-highway motor vehicle recreation.
This bill would require the Controller to withhold $833,000 from this
monthly transfer, and transfer that amount to the General Fund.
(8)  
(7)  The Porter-Cologne Water Quality Control Act, with certain
exceptions, requires a waste discharger to pay an annual fee established
by the State Water Resources Control Board. The act requires the total
amount of fees collected to equal that amount necessary to recover
certain costs relating to the administration of waste discharge
requirements. Revenues generated by the imposition of the fee are
deposited in the Waste Discharge Permit Fund for expenditure, upon
appropriation by the Legislature, for specified water quality purposes.
This bill, for the purpose of calculating the annual fee, would authorize
recoverable costs to also include costs incurred by the State Water
Resources Control Board and the California regional water quality
control boards in the adoption, review, and revision of water quality
control plans and state policies for water quality control.
(9)  
(8)  The Sacramento-San Joaquin Delta Reform Act of 2009
establishes the Delta Stewardship Council, which is required to develop,
adopt, and commence implementation of a comprehensive management
plan for the Delta (Delta Plan) by January 1, 2012. The act provides

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that the council is the successor to the California Bay-Delta Authority,

which previously was required to carry out programs, projects, and
activities to implement the CALFED Bay-Delta Program with other
implementing agencies.
Existing law requires the Governor, on or before April 1, 2011, to
submit to the Legislature a report on the budget for the 2011–12 fiscal
year for all state agency programs that implement water and ecosystem
restoration activities in the Sacramento-San Joaquin Delta using a
zero-based budget methodology, as defined. Existing law requires that
budget to complement the budget for the CALFED Bay-Delta Program,
and requires all state expenditures reported in the budget for the
CALFED Bay-Delta Program for the 2011–12 fiscal year to be reported
using a zero-based budget methodology.
This bill would require the Governor to submit the report on the
budget using zero-based budget methodology for the 2012–13 fiscal
year, instead of the 2011–12 fiscal year, and would require that report
to be submitted to the Legislature by April 1, 2012, instead of April 1,
2011. The bill would additionally require the council, in developing a
zero-based budget for these purposes, to conduct a programmatic review
of CALFED Bay-Delta Program expenditures for consistency with the
Delta Plan.
(10)  
(9)  The bill would appropriate $1,000 from the General Fund to the
Department of Parks and Recreation for administrative costs.
(11)  
(10)  The California Constitution authorizes the Governor to declare
a fiscal emergency and to call the Legislature into special session for
that purpose. Governor Schwarzenegger issued a proclamation declaring
a fiscal emergency, and calling a special session for this purpose, on
December 6, 2010. Governor Brown issued a proclamation on January
20, 2011, declaring and reaffirming that a fiscal emergency exists and
stating that his proclamation supersedes the earlier proclamation for
purposes of that constitutional provision.
This bill would state that it addresses the fiscal emergency declared
and reaffirmed by the Governor by proclamation issued on January 20,
2011, pursuant to the California Constitution.
(12)  
(11)  This bill would declare that it is to take effect immediately as a
bill providing for appropriations related to the Budget Bill.
(13)  

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(12)  This bill would declare that it is to take effect immediately as

an urgency statute.
Vote: 2⁄3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.

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

1 SECTION 1. Section 19606.1 of the Business and Professions

2 Code is amended to read:
3 19606.1. (a)  All license fees from satellite wagering that are
4 deposited in the Fair and Exposition Fund shall be deposited in a
5 separate account in the fund and, notwithstanding Section 13340
6 of the Government Code, are continuously appropriated from that
7 account to the Department of Food and Agriculture, for allocation
8 by the Secretary of Food and Agriculture, at his or her discretion,
9 for the purposes set forth in paragraphs (1) to (6), inclusive. The
10 concurrence of the Director of Finance shall be required for
11 allocations pursuant to paragraphs (1) and (2). Allocations pursuant
12 to paragraphs (3) to (6), inclusive, shall be made with the
13 concurrence of the Joint Committee on Fairs Allocation and
14 Classification.
15 (1)  For the repayment of the principal of, interest on, and costs
16 of issuance of, and as security, including any coverage factor,
17 pledged to the payment of, bonds issued or to be issued by a joint
18 powers agency or other debt service or expense, including
19 repayment of any advances made or security required by any
20 provider of credit enhancement or liquidity for those bonds or
21 other indebtedness or expenses of maintaining that credit
22 enhancement or liquidity, incurred for the purpose of constructing
23 or acquiring improvements at a fair’s racetrack inclosure, satellite
24 wagering facilities at fairs, health and safety repair projects, or
25 handicapped access compliance projects at fairs or for the purpose
26 of refunding bonds or other indebtedness incurred for those
27 purposes. As used in this paragraph, “coverage factor” means
28 revenues in excess of the amount necessary to pay debt service on
29 the bonds or other indebtedness, up to an amount equal to 100
30 percent more than the amount of that debt service, which a joint
31 powers agency, pursuant to the resolution or indenture under which
32 the bonds or other indebtedness are or will be issued, pledges as
33 additional security for the payment of that debt service or is

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1 required to have or maintain as a condition to the issuance of

2 additional bonds or other indebtedness. Notwithstanding any other
3 provision of law, the department may also commit any funds
4 available for allocation under Article 10 (commencing with Section
5 19620) to complete projects funded under this paragraph in the
6 priority described in this paragraph.
7 (2)  For payment to the State Race Track Leasing Commission
8 to be pledged for the repayment of debt necessary to construct a
9 racetrack grandstand at the 22nd District Agricultural Association
10 fairgrounds. This payment shall be made only if the Secretary of
11 Food and Agriculture determines, annually, that all other pledged
12 revenues have been applied to the repayment of that debt and have
13 been determined by the secretary to be inadequate for that purpose.
14 (3)  For the payment of expenses incurred in establishing and
15 operating satellite wagering facilities at fairs.
16 (4)  For the support of an equipment and operating fund to
17 produce and display a consolidated California signal at satellite
18 wagering facilities and fairs.
19 (5)  For health and safety repair projects at fairs, which includes
20 fire and life safety improvement projects, California Code of
21 Regulations compliance projects, and long-term deferred
22 maintenance projects.
23 (6)  For the development and payment of revenue generating
24 projects, the establishment of pilot projects to restructure the
25 current fair system, and for projects realizing a cost savings for
26 more efficient utilization of existing fair resources.
27 (b)  The Secretary of Food and Agriculture may not make an
28 allocation for purposes of paragraphs (2) to (6), inclusive, of
29 subdivision (a) until the payments required in any fiscal year
30 pursuant to paragraph (1) of subdivision (a) have been funded.
31 (c)  Pursuant to subdivision (a), the Joint Committee on Fairs
32 Allocation and Classification shall review and concur, or not
33 concur, with the secretary’s determination of the allocations to be
34 made pursuant to paragraphs (3) to (6), inclusive, of subdivision
35 (a) in total, and the committee may not add to, or delete projects
36 or line items from, the proposed allocations.
37 (d)  Approval of the Joint Committee on Fairs Allocation and
38 Classification is deemed complete when one of the following
39 conditions is met:
40 (1)  The annual budget act is enacted.

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1 (2)  If the secretary’s recommendations are received by the Joint

2 Committee on Fairs Allocation and Classification after the
3 enactment of the annual budget act, the recommendations shall be
4 deemed approved 30 days after they are received unless they are
5 rejected by the committee.
6 (e)  If the Joint Committee on Fairs Allocation and Classification
7 does not concur with the secretary’s recommendations, the
8 secretary may submit another set of recommendations to the
9 committee pursuant to this section.
10 (f)  The payments required in any fiscal year for the purposes
11 of paragraphs (1) to (3), inclusive, of subdivision (a) shall be made
12 before any transfer is made pursuant to subdivision (g).
13 (g)  Except as otherwise provided in subdivision (f), if the
14 revenues deposited in the separate account exceed eleven million
15 dollars ($11,000,000) in any fiscal year, the amount in excess of
16 eleven million dollars ($11,000,000) shall be transferred to the
17 Fair and Exposition Fund for allocation in accordance with Section
18 19620.1.
19 (h)  All of the costs of administering the account created by
20 subdivision (a) shall be charged to the account.
21 SEC. 2. Section 19606.3 of the Business and Professions Code
22 is repealed.
23 SEC. 3. Section 19606.4 of the Business and Professions Code
24 is repealed.
25 SEC. 4. Section 19607.5 of the Business and Professions Code
26 is amended to read:
27 19607.5. (a)  Notwithstanding any other provision of law, if
28 both a fair and a thoroughbred association are licensed by the board
29 to conduct live racing meetings within the northern zone during
30 the same calendar period, signals of both racing programs shall be
31 accepted at each live racing meeting within the northern zone and
32 at all satellite wagering facilities eligible to receive these programs.
33 (b)  Notwithstanding any other provision of law, in order to
34 ensure that fairs which previously had an exclusive right to send
35 their signals to satellite wagering facilities in the northern zone
36 during periods of overlap do not lose commission revenues from
37 satellite wagering, each fair that conducts its meeting during the
38 period described in subdivision (a) shall receive the following
39 satellite wagering commissions:

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1 (1)  With respect to the 2nd District Agricultural Association in

2 Stockton, the commissions payable to the fair from satellite
3 wagering during the period described in subdivision (a) shall be
4 the greater of any of the following:
5 (A)  The actual commission earned by the fair from satellite
6 wagering on its live races during that period.
7 (B)  Fifty percent of the total combined satellite wagering
8 commissions payable to the thoroughbred association and the fair
9 during that period.
10 (C)  One hundred ten percent of the satellite wagering
11 commissions paid to the fair during its live racing meeting in 1990.
12 If the satellite wagering commissions received by the 2nd District
13 Agricultural Association are less than the greater of the amounts
14 specified in subparagraph (B) or (C), the thoroughbred association
15 shall pay to the fair from amounts deducted from satellite wagering
16 on its meeting and before distribution of any satellite wagering
17 commissions and purses on its meeting, an amount equal to the
18 difference between the actual satellite wagering commissions
19 received by the fair in that year and the applicable amount from
20 subparagraph (B) or (C). No additional satellite wagering
21 commission shall be paid to the fair by an association unless the
22 fair conducts live racing during the period described in subdivision
23 (a).
24 (2)  With respect to the California Exposition and State Fair in
25 Sacramento, the commissions payable to the fair from satellite
26 wagering during the period described in subdivision (a) shall be
27 the greater of either of the following:
28 (A)  The actual commission earned by the fair from satellite
29 wagering on its live races during that period.
30 (B)  Sixty percent of the total combined satellite wagering
31 commissions payable to the thoroughbred association and the fair
32 during that period.
33 If the satellite wagering commissions received by the California
34 Exposition and State Fair are less than the amount described in
35 (B), the thoroughbred association shall pay to the fair from amounts
36 deducted from satellite wagering on its meeting and before
37 distribution of any satellite wagering commissions and purses on
38 its meeting, an amount equal to the difference between the actual
39 satellite wagering commissions received by the fair in that year
40 and the amount described in (B). No additional satellite wagering

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1 commission shall be paid to the fair by an association unless the

2 fair conducts live racing during the period described in subdivision
3 (a).
4 (c)  During any periods described in subdivision (a), including
5 periods of overlap for fairs not specified in subdivision (b), the
6 thoroughbred association shall deduct the same percentage from
7 the total amount wagered in its daily conventional and exotic
8 parimutuel pools as the percentage deducted by the fair meeting.
9 The amounts deducted shall be distributed as otherwise provided
10 in this article, with the following exceptions:
11 (1)  If the percentages deducted from the conventional and exotic
12 parimutuel pools of the thoroughbred association under this
13 subdivision exceed the percentages deducted from the association’s
14 pools during periods other than those described under subdivision
15 (a), the amount deducted which is equivalent to the difference
16 between those percentages shall be distributed by the thoroughbred
17 association equally between commissions and purses.
18 (2)  If a thoroughbred association and the 2nd District
19 Agricultural Association in Stockton or the California Exposition
20 and State Fair in Sacramento both conduct live racing meetings
21 during any period described in subdivision (a), the total amount
22 deducted shall be distributed by both the association and fair in
23 the percentages specified for fair meetings in subdivision (b) of
24 Section 19605.7.
25 This subdivision does not require any portion of the additional
26 deduction to be distributed pursuant to subdivision (c) of Section
27 19614.
28 (d)  Notwithstanding any other law, an association and fair that
29 conduct their meeting pursuant to subdivision (b) shall combine
30 the operating expenses incurred at satellite wagering facilities
31 during the period described in subdivision (a). For purposes of this
32 subdivision only, the combined satellite wagering operating
33 expenses of the association and the fair during the period described
34 in subdivision (a) shall not exceed the actual expenses, or 6 percent
35 of the combined parimutuel pool at satellite wagering facilities,
36 whichever amount is less.
37 SEC. 5. Section 19608.3 of the Business and Professions Code
38 is amended to read:
39 19608.3. (a)  Funds allocated by the Secretary of Food and
40 Agriculture pursuant to paragraph (5) of subdivision (a) of Section

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1 19606.1 for fire and life safety improvement projects, California

2 Code of Regulations compliance projects, and long-term deferred
3 maintenance projects at fairs in the northern zone shall be allocated
4 in accordance with a project schedule determined by the
5 Department of Food and Agriculture in compliance with this
6 section.
7 (b)  The department shall prepare a three-year schedule of these
8 projects which commences July 1, 1987, and shall annually update
9 the schedule. The schedule shall list individual project costs,
10 contain a project description, and specify estimated project
11 completion dates.
12 SEC. 6. Section 19620.1 of the Business and Professions Code
13 is amended to read:
14 19620.1. From the total revenue received by the department,
15 exclusive of money received pursuant to Sections 19640 and 19641,
16 the Legislature shall annually appropriate to the department those
17 sums as it deems necessary for the following purposes:
18 (a)  For the oversight of the network of California fairs receiving
19 money from the fund.
20 (b)  For the auditing of all district agricultural association fairs,
21 county fairs, and citrus fruit fairs.
22 SEC. 7. Section 19620.2 of the Business and Professions Code
23 is repealed.
24 SEC. 8. Section 19621 of the Business and Professions Code
25 is repealed.
26 SEC. 9. Section 19621.1 of the Business and Professions Code
27 is amended and renumbered to read:
28 19621. Notwithstanding any other law, neither the state nor
29 the Department of Food and Agriculture is liable for any contract
30 or tort of, or any action taken or any failure to act by, any fair in
31 the network of California fairs that does not comply with the
32 requirements of Section 19622.2.
33 No member of the fair board, or any employee or agent thereof,
34 is personally liable for the contracts or actions of the fair board,
35 and no member of the fair board or employee or agent thereof is
36 responsible individually in any way to any other person for error
37 in judgment, mistakes, or other acts, either of commission or
38 omission, as principal, agent, or employee, except for his or her
39 own individual acts of dishonesty or crime. No member of the fair
40 board shall be held responsible individually for any act or omission

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1 of any other member of the fair board. The liability of the members
2 of the fair board is several and not joint, and no member is liable
3 for the default of any other member.
4 SEC. 10. Section 19621.2 of the Business and Professions
5 Code is repealed.
6 SEC. 11. Section 19621.3 of the Business and Professions
7 Code is amended and renumbered to read:
8 19621.1. (a)  The Secretary of Food and Agriculture shall
9 prepare and submit to the Department of Finance an estimate of
10 revenue to be deposited in the fund and allocations to be made
11 from the fund for each fiscal year.
12 The Director of Finance may authorize short-term, cash-flow
13 loans from the unappropriated surplus of the General Fund to the
14 Fair and Exposition Fund if all of the following conditions are
15 met:
16 (1)  The loan will be repaid during the same fiscal year in which
17 it is made.
18 (2)  No loan exceeds the amount remaining to be allocated in
19 any fiscal year or 75 percent of the revenue estimated to be
20 deposited in the Fair and Exposition Fund during the remainder
21 of the fiscal year.
22 (b)  The Secretary of Food and Agriculture shall notify the
23 Controller when loans under this section are no longer required
24 and any unnecessary loan funds shall be returned to the General
25 Fund.
26 SEC. 12. Section 19622.1 of the Business and Professions
27 Code is amended and renumbered to read:
28 19622. (a)  In order to maintain their eligibility to receive funds
29 or to utilize state assets, the fairs specified in Section 19418 shall
30 do all of the following:
31 (1)  File an annual statement of operations with the Department
32 of Food and Agriculture.
33 (2)  Conduct an annual fair that includes agriculture and other
34 community-relevant exhibits and competitions.
35 (b)  The Department of Food and Agriculture may withhold or
36 restrict allocations to fairs that do not comply with this section or
37 the fiscal standards or administrative standards established by the
38 department. The department shall establish an appeal process for
39 fairs regarding funds that are withheld or restricted.

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1 SEC. 13. Section 19622.2 of the Business and Professions

2 Code is amended and renumbered to read:
3 19622.1. (a)  The authority of the Department of Food and
4 Agriculture shall include, but is not limited to, requiring the
5 California Exposition and State Fair to meet all applicable
6 standards prescribed by the department.
7 (b)  The department may delegate approval authority for such
8 matters as the department may determine to the Board of Directors
9 of the California Exposition and State Fair if the fair complies with
10 this section.
11 (c)  Notwithstanding any other law, the department may assume
12 all rights, duties, and powers of the Board of Directors of the
13 California Exposition and State Fair if the department determines
14 there is insufficient fiscal or administrative control. The board of
15 directors shall again exercise these rights, duties, and powers when
16 the department determines that the fair has been restored to
17 solvency and is in compliance with this section.
18 (d)  The department may petition a court of competent
19 jurisdiction for an order appointing the department, or a person
20 designated by the department, as a receiver if it determines that
21 the California Exposition and State Fair is insolvent, or is in
22 imminent danger of insolvency. The court shall appoint a receiver
23 upon showing that the fair is insolvent, or is in imminent danger
24 of insolvency.
25 (e)  For the purposes of this section, “insolvency” means that
26 the California Exposition and State Fair is unable to discharge its
27 debts as they become due in the usual course of business.
28 (f)  The General Fund and the Fairs and Exposition Fund shall
29 be held harmless from any debts, liabilities, settlements, judgments,
30 or liens incurred by the California Exposition and State Fair,
31 including any deficiency in operating funds.
32 SEC. 14. Section 19622.3 of the Business and Professions
33 Code is amended and renumbered to read:
34 19622.2. (a)  The authority of the Department of Food and
35 Agriculture shall include, but is not limited to, requiring district
36 agricultural associations to meet all applicable standards prescribed
37 by the Department of Food and Agriculture.
38 (b)  The department may delegate approval authority for such
39 matters as the department may determine to the board of directors
40 if the board complies with this section. The department shall report

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1 annually to the Joint Committee on Fairs Allocation and

2 Classification the names of fairs that are delegated that authority.
3 (c)  Notwithstanding any other law, and in order to protect the
4 integrity of the Fair and Exposition Fund, the department may
5 assume any or all rights, duties, and powers of the board of
6 directors of a district agricultural association if the department
7 reasonably determines that there is insufficient fiscal or
8 administrative control. The board of directors shall again exercise
9 these rights, duties, and powers when the department determines
10 that the fair is in compliance with this section. The department
11 shall report annually to the Joint Committee on Fairs Allocation
12 and Classification the names of fairs with respect to which the
13 department has taken the action prescribed in this subdivision and
14 subdivision (d).
15 (d)  The department may petition a court of competent
16 jurisdiction for an order appointing the department, or a person
17 designated by the department, as a receiver if it determines that
18 the fair is insolvent, or is in imminent danger of insolvency. The
19 court shall appoint a receiver upon a showing that the fair is
20 insolvent, or is in imminent danger of insolvency.
21 (e)  For the purposes of this section, “insolvency” means that
22 the district agricultural association is unable to discharge its debts
23 as they become due in the usual course of business.
24 SEC. 15. Section 19622.4 of the Business and Professions
25 Code is amended and renumbered to read:
26 19622.3. The authority of the Department of Food and
27 Agriculture shall include, but is not limited to, requiring county
28 fairs and citrus fruit fairs to do all of the following:
29 (a)  Meet all applicable standards prescribed by the Department
30 of Food and Agriculture.
31 (b)  Submit to the department for review and approval every five
32 years a written agreement specifying the operational, financial,
33 and administrative responsibilities between the entity producing
34 the fair and the host county, or the host agency.
35 SEC. 16. Section 19627.5 of the Business and Professions
36 Code is amended to read:
37 19627.5. Notwithstanding Section 19623, any unanticipated
38 revenues, other than any allocation from the state, which are in
39 excess of the approved budget for any fiscal or calendar year of
40 any California fair shall be retained by that fair.

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1 These funds may be expended, without regard to any fiscal year,

2 by any fair to which Section 19623 applies, upon approval by the
3 board of directors of that fair, which shall be recorded in the official
4 minutes of the fair approving a plan of expenditure.
5 SEC. 17. Section 19630 of the Business and Professions Code
6 is repealed.
7 SEC. 18. Section 19630.5 of the Business and Professions
8 Code is amended and renumbered to read:
9 19630. Notwithstanding any other law, any fair qualified to
10 receive an allocation that has complied with the requirements set
11 forth in subdivision (b) of Section 19622, with the approval of the
12 Department of Food and Agriculture, may expend available funds
13 for the construction or operation of recreational and cultural
14 facilities of general public interest.
15 SEC. 19. Section 19632.5 of the Business and Professions
16 Code is repealed.
17 SEC. 20. Section 19632.6 of the Business and Professions
18 Code is repealed.
19 SEC. 21. Section 19635 of the Business and Professions Code
20 is repealed.
21 SEC. 22. Section 19638 of the Business and Professions Code
22 is repealed.
23 SEC. 23. Section 19638.5 of the Business and Professions
24 Code is repealed.
25 SEC. 24. Section 19639 of the Business and Professions Code
26 is amended and renumbered to read:
27 19638. The books and records of any county or citrus fruit fair
28 or exposition receiving an appropriation or an allocation from the
29 Fair and Exposition Fund, insofar as they relate to revenues and
30 expenditures for fair or exposition purposes, may be audited by
31 the Department of Finance.
32 When any county or citrus fruit fair or exposition receiving an
33 appropriation or allocation from the Fair and Exposition Fund
34 contracts with an association to conduct such fair or exposition,
35 the contract shall include a provision that the books and records
36 of such association shall be subject to audit by the Department of
37 Finance at the discretion of the department.
38 SEC. 25. Section 25359.21 is added to the Health and Safety
39 Code, to read:

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1 25359.21. (a)  The Legislature finds and declares that on

2 December 6, 2010, an administrative order on consent was signed
3 between the United States Department of Energy and the
4 department, and a similar administrative order on consent was
5 signed between the department and the National Aeronautics and
6 Space Administration, for a remedial action on portions of the
7 Santa Susana Field Laboratory site.
8 (b)  For purposes of this section, the following definitions shall
9 apply:
10 (1)  “Administrative order” means an administrative order on
11 consent signed on December 6, 2010, between the United States
12 Department of Energy and the department for a remedial action
13 to the site, the similar administrative order on consent signed on
14 December 6, 2010, between the department and the National
15 Aeronautics and Space Administration.
16 (2)  “Site” means the Santa Susana Field Laboratory site in
17 Ventura County.
18 (c)  An administrative order shall constitute the cleanup
19 requirements and obligations for the portion of the site that is
20 subject to that administrative order.
21 (d)  An administrative order shall result in the cleanup of soil
22 for that portion of the site that is subject to the administrative order
23 so that the level of radiological or chemical contaminants in the
24 soil does not exceed local background levels, except as provided
25 in the exemptions specifically expressed and incorporated by
26 reference in an administrative order entered into on December 6,
27 2010.
28 (e)  The department shall enforce an administrative order, and,
29 when enforcing an order, shall enforce the prohibitions on transfer
30 specified in subdivisions (d) and (e) of Section 25359.20.
31 SEC. 26.
32 SEC. 25. Section 5007 is added to the Public Resources Code,
33 to read:
34 5007. (a)  The department shall achieve any required budget
35 reductions by closing, partially closing, and reducing services at
36 selected units of the state park system. For purposes of this section,
37 “required budget reductions” means the amount of funds
38 appropriated in the annual Budget Act to the department that is
39 less than the amount necessary to fully operate the 2010 level of

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1 278 units of the state park system. The department shall select the
2 units to be closed based solely on all of the following factors:
3 (1)  The relative statewide significance of each park unit,
4 preserving to the extent possible, parks identified in the
5 department’s documents including “Outstanding and
6 Representative Parks,” the “California State History Plan,” and
7 the “California State Parks Survey of 1928.”
8 (2)  The rate of visitation to each unit, to minimize impacts to
9 visitation in the state park system.
10 (3)  (A)  The estimated net savings from closing each unit, to
11 maximize savings to the state park system.
12 (B)  For purposes of this subdivision, “net savings” means the
13 estimated costs of operation for the unit less the unit’s projected
14 revenues and less the costs of maintaining the unit after it is closed.
15 (4)  The feasibility of physically closing each unit.
16 (5)  The existence of, or potential for, partnerships that can help
17 support each unit, including concessions and both for-profit and
18 nonprofit partners.
19 (6)  Significant operational efficiencies to be gained from closing
20 a unit based on its proximity to other closed units where the units
21 typically share staff and other operating resources.
22 (7)  Significant and costly infrastructure deficiencies affecting
23 key systems at each unit so that continued operation of the unit is
24 less cost effective relative to other units.
25 (8)  Recent or funded infrastructure investments at a unit.
26 (9)  Necessary but unfunded capital investments at a unit.
27 (10)  Deed restrictions and grant requirements applicable to each
28 unit.
29 (11)  The extent to which there are substantial dedicated funds
30 for the support of the unit that are not appropriated from the
31 General Fund.
32 (b)  Notwithstanding Division 3.6 (commencing with Section
33 810) of Title 1 of the Government Code, a public entity or a public
34 employee is not liable for injury or damage caused by a condition
35 of public property located in, or injury or damage otherwise
36 occurring in, or arising out of an activity in, a state park system
37 unit that is designated as closed, partially closed, or subject to
38 service reduction by the department pursuant to subdivision (a).
39 This immunity shall apply notwithstanding the fact that the public
40 has access, whether invited or uninvited, to the state park system

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1 unit, and notwithstanding that the department may take actions

2 such as patrols, inspections, maintenance, and repairs necessary
3 to protect the state park system unit facilities and resources from
4 deterioration, damage, or destruction. The immunity provided by
5 this subdivision does not limit any other immunity or immunities
6 available to a public entity or a public employee.
7 SEC. 27.
8 SEC. 26. Section 326 is added to the Public Utilities Code, to
9 read:
10 326. (a)  By January 10, 2012, and by January 10 of each year
11 thereafter, the commission shall report to the Joint Legislative
12 Budget Committee and appropriate fiscal and policy committees
13 of the Legislature, on all sources and amounts of funding and actual
14 and proposed expenditures, both in the two prior fiscal years and
15 for the proposed fiscal year, including any costs to ratepayers,
16 related to interactions by the commission, its officers, or its staff
17 with the California Public Utilities Commission Foundation, or
18 any derivative, or successor, or with any agent or director of the
19 foundation, including all of the following:
20 (1)  Attendance at meetings, conferences, or events organized
21 or sponsored by the foundation.
22 (2)  Any contract or other agreement between the commission,
23 its officers, or its staff and the foundation, including agreements
24 relating to attendance at any educational or training conference or
25 event.
26 (3)  Any agenda item, order, decision, resolution, or motion,
27 referencing the foundation.
28 (4)  Endorsements of the foundation or its activities.
29 (5)  Any contribution made to the foundation at the behest of a
30 member of the commission, its officers, or its staff, and any direct
31 or indirect contribution made to the foundation by a member of
32 the commission, its officers, or its staff. For purposes of this
33 paragraph, “contribution” means any payment, a forgiveness of a
34 loan, a payment of a loan by a third party, or an enforceable
35 promise to make a payment, except to the extent that full and
36 adequate consideration is received.
37 (b)  (1)  Within eight weeks of any contribution to the foundation
38 made at the behest of a member of the commission, its officers,
39 or its staff, the commission shall report the contribution to the Joint
40 Legislative Budget Committee and appropriate fiscal and policy

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1 committees of the Legislature, and include any documents

2 pertaining to the contribution.
3 (2)  Each report shall include certification from the commission
4 that the contribution does not violate the Conflict of Interest Code
5 and Statement of Incompatible Activities adopted pursuant to
6 Section 303.
7 SEC. 28.
8 SEC. 27. Section 8352.6 of the Revenue and Taxation Code is
9 amended to read:
10 8352.6. (a)  (1)  Subject to Section 8352.1, on the first day of
11 every month, there shall be transferred from moneys deposited to
12 the credit of the Motor Vehicle Fuel Account to the Off-Highway
13 Vehicle Trust Fund created by Section 38225 of the Vehicle Code
14 an amount attributable to taxes imposed upon distributions of motor
15 vehicle fuel used in the operation of motor vehicles off highway
16 and for which a refund has not been claimed. Transfers made
17 pursuant to this section shall be made prior to transfers pursuant
18 to Section 8352.2.
19 (2)  The Controller shall withhold eight hundred thirty-three
20 thousand dollars ($833,000) from this monthly transfer, and transfer
21 that amount to the General Fund.
22 (b)  The amount transferred pursuant to paragraph (1) of
23 subdivision (a), as a percentage of the Motor Vehicle Fuel Account,
24 shall be equal to the percentage transferred in the 2006–07 fiscal
25 year. Every five years, starting in the 2013–14 fiscal year, the
26 percentage transferred may be adjusted by the Department of
27 Transportation in cooperation with the Department of Parks and
28 Recreation and the Department of Motor Vehicles. Adjustments
29 shall be based on, but not limited to, the changes in the following
30 factors since the 2006–07 fiscal year or the last adjustment,
31 whichever is more recent:
32 (1)  The number of vehicles registered as off-highway motor
33 vehicles as required by Division 16.5 (commencing with Section
34 38000) of the Vehicle Code.
35 (2)  The number of registered street-legal vehicles that are
36 anticipated to be used off highway, including four-wheel drive
37 vehicles, all-wheel drive vehicles, and dual-sport motorcycles.
38 (3)  Attendance at the state vehicular recreation areas.
39 (4)  Off-highway recreation use on federal lands as indicated by
40 the United States Forest Service’s National Visitor Use Monitoring

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1 and the United States Bureau of Land Management’s Recreation

2 Management Information System.
3 (c)  It is the intent of the Legislature that transfers from the Motor
4 Vehicle Fuel Account to the Off-Highway Vehicle Trust Fund
5 should reflect the full range of motorized vehicle use off highway
6 for both motorized recreation and motorized off-road access to
7 other recreation opportunities. Therefore, the Legislature finds that
8 the fuel tax baseline established in subdivision (b), attributable to
9 off-highway estimates of use as of the 2006–07 fiscal year,
10 accounts for the three categories of vehicles that have been found
11 over the years to be users of fuel for off-highway motorized
12 recreation or motorized access to nonmotorized recreational
13 pursuits. These three categories are registered off-highway
14 motorized vehicles, registered street-legal motorized vehicles used
15 off highway, and unregistered off-highway motorized vehicles.
16 (d)  It is the intent of the Legislature that the off-highway motor
17 vehicle recreational use to be determined by the Department of
18 Transportation pursuant to paragraph (2) of subdivision (b) be that
19 usage by vehicles subject to registration under Division 3
20 (commencing with Section 4000) of the Vehicle Code, for
21 recreation or the pursuit of recreation on surfaces where the use
22 of vehicles registered under Division 16.5 (commencing with
23 Section 38000) of the Vehicle Code may occur.
24 SEC. 29.
25 SEC. 28. Section 13260 of the Water Code is amended to read:
26 13260. (a)  Each of the following persons shall file with the
27 appropriate regional board a report of the discharge, containing
28 the information that may be required by the regional board:
29 (1)  A person discharging waste, or proposing to discharge waste,
30 within any region that could affect the quality of the waters of the
31 state, other than into a community sewer system.
32 (2)  A person who is a citizen, domiciliary, or political agency
33 or entity of this state discharging waste, or proposing to discharge
34 waste, outside the boundaries of the state in a manner that could
35 affect the quality of the waters of the state within any region.
36 (3)  A person operating, or proposing to construct, an injection
37 well.
38 (b)  No report of waste discharge need be filed pursuant to
39 subdivision (a) if the requirement is waived pursuant to Section
40 13269.

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1 (c)  Each person subject to subdivision (a) shall file with the

2 appropriate regional board a report of waste discharge relative to
3 any material change or proposed change in the character, location,
4 or volume of the discharge.
5 (d)  (1)  (A)  Each person who is subject to subdivision (a) or
6 (c) shall submit an annual fee according to a fee schedule
7 established by the state board.
8 (B)  The total amount of annual fees collected pursuant to this
9 section shall equal that amount necessary to recover costs incurred
10 in connection with the issuance, administration, reviewing,
11 monitoring, and enforcement of waste discharge requirements and
12 waivers of waste discharge requirements.
13 (C)  Recoverable costs may include, but are not limited to, costs
14 incurred in reviewing waste discharge reports, prescribing terms
15 of waste discharge requirements and monitoring requirements,
16 enforcing and evaluating compliance with waste discharge
17 requirements and waiver requirements, conducting surface water
18 and groundwater monitoring and modeling, analyzing laboratory
19 samples, adopting, reviewing, and revising water quality control
20 plans and state policies for water quality control, and reviewing
21 documents prepared for the purpose of regulating the discharge of
22 waste, and administrative costs incurred in connection with
23 carrying out these actions.
24 (D)  In establishing the amount of a fee that may be imposed on
25 a confined animal feeding and holding operation pursuant to this
26 section, including, but not limited to, a dairy farm, the state board
27 shall consider all of the following factors:
28 (i)  The size of the operation.
29 (ii)  Whether the operation has been issued a permit to operate
30 pursuant to Section 1342 of Title 33 of the United States Code.
31 (iii)  Any applicable waste discharge requirement or conditional
32 waiver of a waste discharge requirement.
33 (iv)  The type and amount of discharge from the operation.
34 (v)  The pricing mechanism of the commodity produced.
35 (vi)  Any compliance costs borne by the operation pursuant to
36 state and federal water quality regulations.
37 (vii)  Whether the operation participates in a quality assurance
38 program certified by a regional water quality control board, the
39 state board, or a federal water quality control agency.

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1 (2)  (A)  Subject to subparagraph (B), the fees collected pursuant

2 to this section shall be deposited in the Waste Discharge Permit
3 Fund, which is hereby created. The money in the fund is available
4 for expenditure by the state board, upon appropriation by the
5 Legislature, solely for the purposes of carrying out this division.
6 (B)  (i)  Notwithstanding subparagraph (A), the fees collected
7 pursuant to this section from stormwater dischargers that are
8 subject to a general industrial or construction stormwater permit
9 under the national pollutant discharge elimination system (NPDES)
10 shall be separately accounted for in the Waste Discharge Permit
11 Fund.
12 (ii)  Not less than 50 percent of the money in the Waste
13 Discharge Permit Fund that is separately accounted for pursuant
14 to clause (i) is available, upon appropriation by the Legislature,
15 for expenditure by the regional board with jurisdiction over the
16 permitted industry or construction site that generated the fee to
17 carry out stormwater programs in the region.
18 (iii)  Each regional board that receives money pursuant to clause
19 (ii) shall spend not less than 50 percent of that money solely on
20 stormwater inspection and regulatory compliance issues associated
21 with industrial and construction stormwater programs.
22 (3)  A person who would be required to pay the annual fee
23 prescribed by paragraph (1) for waste discharge requirements
24 applicable to discharges of solid waste, as defined in Section 40191
25 of the Public Resources Code, at a waste management unit that is
26 also regulated under Division 30 (commencing with Section 40000)
27 of the Public Resources Code, shall be entitled to a waiver of the
28 annual fee for the discharge of solid waste at the waste management
29 unit imposed by paragraph (1) upon verification by the state board
30 of payment of the fee imposed by Section 48000 of the Public
31 Resources Code, and provided that the fee established pursuant to
32 Section 48000 of the Public Resources Code generates revenues
33 sufficient to fund the programs specified in Section 48004 of the
34 Public Resources Code and the amount appropriated by the
35 Legislature for those purposes is not reduced.
36 (e)  Each person that discharges waste in a manner regulated by
37 this section shall pay an annual fee to the state board. The state
38 board shall establish, by regulation, a timetable for the payment
39 of the annual fee. If the state board or a regional board determines
40 that the discharge will not affect, or have the potential to affect,

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1 the quality of the waters of the state, all or part of the annual fee
2 shall be refunded.
3 (f)  (1)  The state board shall adopt, by emergency regulations,
4 a schedule of fees authorized under subdivision (d). The total
5 revenue collected each year through annual fees shall be set at an
6 amount equal to the revenue levels set forth in the Budget Act for
7 this activity. The state board shall automatically adjust the annual
8 fees each fiscal year to conform with the revenue levels set forth
9 in the Budget Act for this activity. If the state board determines
10 that the revenue collected during the preceding year was greater
11 than, or less than, the revenue levels set forth in the Budget Act,
12 the state board may further adjust the annual fees to compensate
13 for the over and under collection of revenue.
14 (2)  The emergency regulations adopted pursuant to this
15 subdivision, any amendment thereto, or subsequent adjustments
16 to the annual fees, shall be adopted by the state board in accordance
17 with Chapter 3.5 (commencing with Section 11340) of Part 1 of
18 Division 3 of Title 2 of the Government Code. The adoption of
19 these regulations is an emergency and shall be considered by the
20 Office of Administrative Law as necessary for the immediate
21 preservation of the public peace, health, safety, and general welfare.
22 Notwithstanding Chapter 3.5 (commencing with Section 11340)
23 of Part 1 of Division 3 of Title 2 of the Government Code, any
24 emergency regulations adopted by the state board, or adjustments
25 to the annual fees made by the state board pursuant to this section,
26 shall not be subject to review by the Office of Administrative Law
27 and shall remain in effect until revised by the state board.
28 (g)  The state board shall adopt regulations setting forth
29 reasonable time limits within which the regional board shall
30 determine the adequacy of a report of waste discharge submitted
31 under this section.
32 (h)  Each report submitted under this section shall be sworn to,
33 or submitted under penalty of perjury.
34 (i)  The regulations adopted by the state board pursuant to
35 subdivision (f) shall include a provision that annual fees shall not
36 be imposed on those who pay fees under the national pollutant
37 discharge elimination system until the time when those fees are
38 again due, at which time the fees shall become due on an annual
39 basis.

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1 (j)  A person operating or proposing to construct an oil, gas, or

2 geothermal injection well subject to paragraph (3) of subdivision
3 (a) shall not be required to pay a fee pursuant to subdivision (d) if
4 the injection well is regulated by the Division of Oil and Gas of
5 the Department of Conservation, in lieu of the appropriate
6 California regional water quality control board, pursuant to the
7 memorandum of understanding, entered into between the state
8 board and the Department of Conservation on May 19, 1988. This
9 subdivision shall remain operative until the memorandum of
10 understanding is revoked by the state board or the Department of
11 Conservation.
12 (k)  In addition to the report required by subdivision (a), before
13 a person discharges mining waste, the person shall first submit
14 both of the following to the regional board:
15 (1)  A report on the physical and chemical characteristics of the
16 waste that could affect its potential to cause pollution or
17 contamination. The report shall include the results of all tests
18 required by regulations adopted by the board, any test adopted by
19 the Department of Toxic Substances Control pursuant to Section
20 25141 of the Health and Safety Code for extractable, persistent,
21 and bioaccumulative toxic substances in a waste or other material,
22 and any other tests that the state board or regional board may
23 require, including, but not limited to, tests needed to determine
24 the acid-generating potential of the mining waste or the extent to
25 which hazardous substances may persist in the waste after disposal.
26 (2)  A report that evaluates the potential of the discharge of the
27 mining waste to produce, over the long term, acid mine drainage,
28 the discharge or leaching of heavy metals, or the release of other
29 hazardous substances.
30 (l)  Except upon the written request of the regional board, a report
31 of waste discharge need not be filed pursuant to subdivision (a) or
32 (c) by a user of recycled water that is being supplied by a supplier
33 or distributor of recycled water for whom a master recycling permit
34 has been issued pursuant to Section 13523.1.
35 SEC. 30.
36 SEC. 29. Section 27 of Chapter 718 of the Statutes of 2010 is
37 amended to read:
38 Sec. 27. (a)  It is the intent of the Legislature that a zero-based
39 budget for programs and expenditures related to water and
40 ecosystem restoration activities in the Sacramento-San Joaquin

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1 Delta will enable the Legislature to better understand the overall

2 size of the state’s investment in the Sacramento-San Joaquin Delta
3 and how funds are being allocated and prioritized for particular
4 programs and functions.
5 (b)  (1)  On or before April 1, 2012, the Governor shall submit
6 to the Legislature a report on the budget for the 2012–13 fiscal
7 year for all state agency programs that implement water and
8 ecosystem restoration activities in the Sacramento-San Joaquin
9 Delta, including activities related to the CALFED Bay-Delta
10 Program, using a zero-based budget methodology.
11 (2)  The budget submitted pursuant to this subdivision shall
12 complement the budget display for the CALFED Bay-Delta
13 Program budget annually submitted by the Governor in conjunction
14 with the budget, and shall show all state agency expenditures that
15 implement water and ecosystem restoration activities in the
16 Sacramento-San Joaquin Delta. All state expenditures reported in
17 the budget for the CALFED Bay-Delta Program for the 2012–13
18 fiscal year shall be reported using a zero-based budget
19 methodology, regardless of whether the appropriation authority is
20 continuous or on an annual basis.
21 (3)  In developing a zero-based budget for the CALFED
22 Bay-Delta Program, the Delta Stewardship Council shall conduct
23 a programmatic review of CALFED Bay-Delta Program
24 expenditures for consistency with the Delta Plan developed
25 pursuant to Section 85300 of the Water Code.
26 (c)  As used in the section, “zero-based budget methodology”
27 means determining a budget by starting with a base of zero dollars
28 ($0) and adding dollar amounts necessary to conduct specific
29 activities and operations. A zero-based budget shall set forth all
30 of the following:
31 (1)  Each activity performed for which an appropriation is made
32 or is requested.
33 (2)  The legal basis for performing the activity.
34 (3)  An itemized justification for the amount requested to perform
35 the activity.
36 SEC. 31.
37 SEC. 30. There is hereby appropriated one thousand dollars
38 ($1,000) from the State Parks and Recreation Fund to the
39 Department of Parks and Recreation for administrative costs.

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1 SEC. 32.
2 SEC. 31. This act addresses the fiscal emergency declared and
3 reaffirmed by the Governor by proclamation on January 20, 2011,
4 pursuant to subdivision (f) of Section 10 of Article IV of the
5 California Constitution.
6 SEC. 33.
7 SEC. 32. This act is a bill providing for appropriations related
8 to the Budget Bill within the meaning of subdivision (e) of Section
9 12 of Article IV of the California Constitution, has been identified
10 as related to the budget in the Budget Bill, and shall take effect
11 immediately.
12 SEC. 34.
13 SEC. 33. This act is an urgency statute necessary for the
14 immediate preservation of the public peace, health, or safety within
15 the meaning of Article IV of the Constitution and shall go into
16 immediate effect. The facts constituting the necessity are:
17 In order to make the necessary statutory changes to implement
18 the Budget Act of 2011 at the earliest possible time, it is necessary
19 that this act take effect immediately.

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