Sen. Mike McGuire

This measure would declare May 18, 2016, as the 28th Annual State Scientist Day, as a tribute to the dedication and professionalism of the state scientists who work on behalf of all the residents of California.

The Cigarette and Tobacco Products Tax Law imposes a tax on every distributor of cigarettes and tobacco products at specified rates. That law specifies that the taxes imposed by that law are in lieu of all other state, county, municipal, or district taxes on the privilege of distributing cigarettes or tobacco products. The California Constitution prohibits the Legislature from imposing taxes for local purposes, but allows the Legislature to authorize local governments to impose them. This bill would authorize the board of supervisors of a county or city and county to impose a tax on the privilege of distributing cigarettes and tobacco products in the county or city and county, including within an incorporated city within the county.

Existing law vests in the State Department of Developmental Services jurisdiction over state hospitals, referred to as developmental centers, for the provision of residential care to individuals with developmental disabilities. Existing law requires the department, when closing a developmental center, to comply with procedural requirements that include the submission of a detailed plan to the Legislature. Existing law requires the department to submit to the Legislature, on or before October 1, 2015, a plan or plans to close one or more developmental centers, as specified, and declares the intent of the Legislature that General Fund savings derived from the closure of developmental centers benefit persons with developmental disabilities living in the community. Under existing law, the Lanterman Developmental Disabilities Services Act, the department is responsible for providing various services and supports to persons with developmental disabilities, and for ensuring the appropriateness and quality of those services and supports. Existing law authorizes the department to contract with regional centers to provide these services and supports. This bill would, commencing January 1, 2017, require the Department of Finance to include in the Governor's Budget and the May Revision a report on the estimated net savings derived from the downsizing or closure of developmental centers in the previous fiscal year, including the net savings calculated by computing the difference between the total General Fund savings or gains reasonably associated with the downsizing or closure of a developmental center and the aggregate General Fund costs of care of all consumers who move from a developmental center and into the community, as specified. The bill would require the net General Fund savings to be deposited into the Community Housing and Services Trust Fund, which the bill would create, and would require the moneys in the fund to be used, upon appropriation by the Legislature, for purposes of providing housing assistance, housing development, and specialty services for persons with developmental disabilities who are living in the community and receiving regional center services, as specified. The bill would make related findings and declarations.

The Lanterman Developmental Disabilities Services Act requires the State Department of Developmental Services to contract with regional centers to provide services and supports to individuals with developmental disabilities. Under existing law, regional centers purchase needed services for individuals with developmental disabilities through approved service providers or arrange for those services through other publicly funded agencies. Existing law establishes specified rates and wages to be paid to certain service providers and the rates to be paid for certain developmental services. Existing law requires that rates to be paid to other developmental service providers either be set by the department or negotiated between the regional center and the service provider. Existing law establishes the Medi-Cal program, administered by the State Department of Health Care Services, under which basic health care services are provided to qualified low-income persons. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions. Existing law requires, except as otherwise provided, Medi-Cal provider payments to be reduced, as specified. This bill would appropriate a specified sum to the State Department of Developmental Services to, commencing July 1, 2016, among other things, increase rates and wages for certain developmental services providers and fund incentive payments for competitive integrated employment opportunities and internships for individuals with developmental disabilities. The bill would require the department to submit a rate study to specified committees of the Legislature on or before March 1, 2019, regarding community-based services for individuals with developmental disabilities. The bill would require each regional center to report specified information to the department regarding increased funding for regional center operations. The bill would, for dates of service on or after August 1, 2016, increase the payment rates for intermediate care facilities and skilled nursing facilities that provide services to developmentally disabled individuals under the Medi-Cal program, as specified. The bill would also prohibit the State Department of Health Care Services from seeking to retroactively implement certain Medi-Cal provider payment reductions and limitations with regards to reimbursements for services provided by skilled nursing facilities that are distinct parts of general acute care hospitals for dates of service on or after June 1, 2011, and on or before September 30, 2013, and from seeking to recoup overpayments, as specified. Existing law requires the department and regional centers to annually collaborate to compile specified data relating to purchase of service authorization, utilization, and expenditure by each regional center. Existing law requires each regional center to annually report to the department regarding the regional center's implementation of these requirements, including whether the data indicates a need to reduce disparities in the purchase of services among consumers in the regional center's catchment area and the regional center's recommendations and plan to promote equity, and reduce disparities, in the purchase of services. Existing law requires the department to consult with specified stakeholders to review the data, develop recommendations to help reduce disparities in purchase of service expenditures, and encourage development and expansion of culturally appropriate services, among other things, and to report the status of its efforts during the 2016–17 legislative budget subcommittee hearing process. The bill would also require the department, subject to available funding, to allocate funding to regional centers to assist in implementing specified recommendations and plans, including the recommendations and plans of the regional centers to promote equity, and reduce disparities, in the purchase of services. Existing law requires an entity that receives payments between $250,000 and $500,000 per year from one or more regional centers to obtain either an independent audit or an independent review report of its financial statements, and requires an entity that receives payments that are equal to or more than $500,000 per year to obtain an independent audit. This bill would instead require an entity that receives payments between $500,000 and $2,000,000 from one or more regional centers to obtain an independent review report of its financial statements, and would authorize these entities to apply for, and require the regional center to grant, a 2-year exemption from this requirement if the regional center does not find issues in the independent review report that have an impact on regional center services. The bill would require an entity that receives payments from one or more regional centers that are equal to or more than $2,000,000 to obtain an independent audit and would authorize these entities to apply for, and require the regional center to grant, a 2-year exemption from the audit requirement if the audit resulted in an unmodified opinion, an unmodified opinion with additional communication, or a qualified opinion with issues that are not material. The bill would require a regional center to annually report to the State Department of Developmental Services any exemptions granted pursuant to these provisions.

Existing law, the Medical Marijuana Regulation and Safety Act, establishes the licensing and regulation of medical marijuana. The act authorizes a county to impose a tax on the privilege of cultivating, dispensing, producing, processing, preparing, storing, providing, donating, selling, or distributing medical cannabis or medical cannabis products by a licensee. This bill would eliminate the specification that the imposition of tax applies only to a licensee.

Existing law establishes the California State University, under the administration of the Trustees of the California State University, as one of the segments of public postsecondary education in this state. Existing law requires, on January 1, 2014, and on or before January 1, 2018, that the Legislative Analyst's Office, in consultation with the university, submit a report to the Legislature including specified data relating to the California State University Early Start Program. Existing law repeals these provisions regarding the Early Start Program on July 1, 2018. This bill would make nonsubstantive changes to these provisions.

Existing law sets forth various fiscal powers and duties of the Secretary of Food and Agriculture, and authorizes the secretary to remove from the Department of Agriculture's records an amount due pursuant to the provisions of the Food and Agricultural Code if the amount is $5 or less and the secretary either finds that the amount is too small to justify the cost of its collection, or believes that collection is improbable. This bill would increase the maximum amount from $5 to $25, and would also make nonsubstantive changes to those provisions.

Existing sales and use tax laws impose taxes on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, and provides various exemptions from those taxes. Existing law requires every person who desires to conduct business as a seller of tangible personal property within this state to file an application for a permit with the State Board of Equalization for each place of business. Existing law requires the application for a permit to be on a form prescribed by the State Board of Equalization, containing the name and location of the applicant's place of business, statement that the applicant will actively conduct business as a seller of tangible personal property, and other information that the State Board of Equalization may require. This bill would make nonsubstantive changes to these provisions.