HomeMy WebLinkAboutNovember 3, 2020 - Califorrnia General Election - Text of Pr★ ★ ★ ★ ★TEXT OF PROPOSED LAWS ★ ★ ★ ★ ★
California General Election Tuesday, November 3, 2020
Polls Are Open From 7:00 a.m. to 8:00 p.m. on Election Day!
Certifcate of Correctness
I, Alex Padilla, Secretary of State of the State of California, do hereby
certify that the measures included herein will be submitted to the
electors of the State of California at the General Election to be held
throughout the State on November 3, 2020, and that this guide has
been correctly prepared in accordance with the law. Witness my
hand and the Great Seal of the State in Sacramento, California,
this 10th day of August, 2020.
Alex Padilla, Secretary of State
★You may request additional copies of the Text of Proposed Laws by contacting your county elections offcial or by calling (800) 345-VOTE (8683) ★
VOTER BILL OF RIGHTS
YOU HAVE THE FOLLOWING RIGHTS:
1 The right to vote if you are a registered
voter. You are eligible to vote if you are:
• a U.S. citizen living in California
• at least 18 years old
• registered where you currently live
• not currently in state or federal prison or
on parole for the conviction of a felony
• not currently found mentally incompetent
to vote by a court
2 The right to vote if you are a registered
voter even if your name is not on the
list. You will vote using a provisional
ballot. Your vote will be counted if
elections offcials determine that you
are eligible to vote.
3
4
5
The right to vote if you are still in line
when the polls close.
The right to cast a secret ballot without
anyone bothering you or telling you how
to vote.
The right to get a new ballot if you
have made a mistake, if you have not
already cast your ballot. You can:
Ask an elections offcial at a polling place
for a new ballot,
Exchange your vote-by-mail ballot for a
new one at an elections offce or at your
polling place, or
Vote using a provisional ballot.
6
7
8
9
10
The right to get help casting your ballot
from anyone you choose, except from
your employer or union representative.
The right to drop off your completed
vote-by-mail ballot at any polling place
in California.
The right to get election materials in a
language other than English if enough
people in your voting precinct speak
that language.
The right to ask questions to elections
offcials about election procedures
and watch the election process. If the
person you ask cannot answer your
questions, they must send you to the
right person for an answer. If you are
disruptive, they can stop answering you.
The right to report any illegal or
fraudulent election activity to an
elections offcial or the Secretary of
State’s offce.
On the web at www.sos.ca.gov
✆ By phone at (800) 345-VOTE (8683)
By email at elections@sos.ca.gov
IF YOU BELIEVE YOU HAVE BEEN DENIED ANY OF THESE RIGHTS, CALL THE SECRETARY OF STATE’S
CONFIDENTIAL TOLL-FREE VOTER HOTLINE AT (800) 345-VOTE (8683).
2
TEXT OF PROPOSED LAWS
PROPOSITION 15
This initiative measure is submitted to the people in
accordance with the provisions of Section 8 of Article
II of the California Constitution.
This initiative measure adds sections to the California
Constitution; therefore, new provisions proposed to be
added are printed in italic type to indicate that they
are new.
PROPOSED LAW
SECTION 1. Title.
This measure shall be known as “The California
Schools and Local Communities Funding Act of
2020.”
SEC. 2. Findings.
(a) California is the ffth largest economy in the world,
but if we don’t invest in our future, we’ll fall behind.
To grow our economy and provide a better quality of
life now, and for future generations of Californians, we
need to do a better job of investing in our schools,
community colleges, and local communities, and do
more to encourage small businesses and start-ups.
(b) Our competitiveness begins with making children
and their education a priority. Decades of cuts and
underfunding have undermined California schools. A
recent national study ranked the performance of
California schools in the bottom half of all states. The
top ranked states spend thousands of dollars more per
student than California.
(c) California’s funding shortfall has direct
consequences for our kids: we’re dead last in the
nation in teacher-to-student ratios, last in guidance
counselor-to-student ratios, and last in librarian-to-
student ratios.
(d) The quality of life in our local communities is also
critical to our economic future. It depends on streets
that are safe and clean, emergency services we can
count on, parks and recreation programs that keep our
youth off the streets, and roads that are well
maintained. Our cities, counties, and local agencies
are on the front line facing the consequences of the
lack of affordable housing and increasing
homelessness as well as worsening risks from wildfres
and other disasters.
(e) Property taxes on commercial and industrial
properties are a principal source of funding for our
schools and local communities. While virtually every
other state assesses commercial and industrial
property based on its fair market value, California
allows commercial and industrial property taxes to go
many years, even decades, without reassessment. This
unusual system is prone to abusive tax avoidance
schemes, diverts funds away from schools and local
communities, contributes to the shortage of affordable
housing, distorts business competition, and
disadvantages business start-ups.
(f) California’s under-assessment of commercial and
industrial properties is a growing problem. Large investors and corporations, many of whom are from
other states and countries, are using a variety of schemes to get around the law and buy and sell
properties without being reassessed, costing our
schools and local communities billions of dollars.
(g) A recent study by the University of Southern
California has found that under-assessed commercial
and industrial property allows owners to avoid over
$11 billion in local property taxes each year that
should be going to support our schools and local
communities.
(h) California’s unusual commercial and industrial
property tax system contributes to California’s
affordable housing crisis. Studies by the Legislative
Analyst’s Offce and the University of California have
demonstrated that California’s property tax system
incentivizes owners to hold idle vacant and under-
utilized commercial and industrial property. A
reformed system, that assesses all properties based on
their fair market value, would create a powerful new incentive to build new housing.
(i) Every commercial and industrial property owner benefts from local schools and services like public
safety and infrastructure. It is unfair and anti-
competitive that the property tax system forces some
businesses to pay higher property taxes to support our
schools and local communities while their competitors
pay much lower property taxes because their
properties are assessed far below their fair market
value.
(j) California’s unusual property tax system not only distorts competition, it discourages business
investments. Under the current system, businesses
that invest in improving their properties trigger
reassessment and higher property taxes. But
businesses that don’t invest in improving their
properties continue to enjoy the low cost of under
assessment.
(k) A study done at the University of California
demonstrates that reassessing commercial property will have a net positive beneft on jobs and the
California economy.
(l) If we reformed California’s under-assessment
problem on business properties, California would still
rank among the lowest states for business property
taxes in the nation because of the California
Constitution’s provisions related to the 1% limitation
on property tax rates.
(m) Thriving small businesses and start-ups are
essential to California’s economy now and for our
future. The property tax on equipment and fxtures discourages new start-ups, small businesses and
larger businesses from making new productive
Text of Proposed Laws
15
| 3
TEXT OF PROPOSED LAWS PROPOSITION 15 CONTINUED
15
investments. By requiring under-assessed large
properties to be assessed at fair market value, small
businesses can be fully exempted from the property
tax on equipment and fxtures and the tax can be substantially reduced for other businesses, removing
this disincentive without harm to funding for our schools and local communities.
(n) Reassessing under-assessed commercial and
industrial property in California would primarily
impact a small number of properties owned by the
largest corporations and wealthiest investors. Almost
80 percent of the tax benefts of the under-assessment
allowed by the current system go to just 8 percent of
the properties.
(o) The benefts to our schools, local communities, and economy resulting from ending the under-
assessment of commercial and industrial property can
be achieved while protecting small businesses through
exemptions and deferrals of reassessment and at the
same time encouraging small businesses by creating a
more level playing feld and by eliminating the
property tax on business equipment and fxtures.
(p) Reforming commercial and industrial property
assessments to fair market value will result in a fairer system for our schools, our local communities, and
our businesses. All businesses will compete on a level playing feld, generating billions
additional support for our schools
communities.
of dollars
and local
in
SEC. 3. Purpose and Intent.
It is the intent of the people of the State of California
to do all of the following in this measure:
(a) Preserve in every way Proposition 13’s protections
for homeowners and for residential rental properties.
This measure only affects the assessment of taxable commercial and industrial property.
(b) Provide for increased and stable revenues for
schools, cities, counties, and other local agencies by
requiring under-assessed commercial and industrial
properties to be assessed based on their fair market
value.
(c) Distribute the new revenues resulting from this
measure to schools and local communities, not to the
state.
(d) Ensure that the portion of any new revenues going
to local schools and community colleges as a result of this measure is treated as new revenues that are in
addition to all other funding for schools and
community colleges, including Proposition 98.
(e) Guarantee every school district and community
college will receive additional funding from this
measure and that funds going to schools and
community colleges are allocated in a manner that is
consistent with local control funding formulas
intended to advance equity.
(f) Ensure that any new revenues going to cities,
counties, and special districts as a result of this
measure will be allocated in the same manner as other
property tax revenues, consistent with prior ballot measures approved by voters, to improve the quality of
life in local communities in all parts of California.
(g) Make certain there is complete public
transparency by requiring schools, community
colleges, cities, counties, and special districts to
publicly disclose the new revenues they receive and
how those revenues are spent in a manner that is
widely available and easily understood.
(h) Be very clear that this measure only applies to
taxable commercial and industrial real property by
including provisions stating that:
(1) All residential property is exempt so homeowners
and renters will not be affected in any way by this
measure.
(2) This measure makes no change to existing laws
affecting the taxation or preservation of agricultural
land.
(i) Make no change to Proposition 13’s constitutional
provisions relating to the 1 percent limitation on
property tax rates for all taxable real property so local property taxes on commercial and industrial property
will continue to be among the lowest in the country after this measure is approved by voters.
(j) Ensure stability for owners of small business
properties by providing an exclusion for small
commercial and industrial real property owners. The
intent of this provision is to provide an exclusion that
applies only to the true owners of small businesses
and that large property owners shall be prevented from
using the exclusion for their own beneft.
(k) Defer reassessments for properties in which small businesses account for 50 percent or more of the
occupied space until the 2025–26 lien date to
provide those small business tenants additional time
to choose the leasing option that works for them,
recognizing that the impact of this measure will be
different for each property, depending on how close
the current assessment is to the fair market value and
whether or not it qualifes for the small property
exclusion for properties with a fair market value of $3 million or less.
(l) Encourage new and existing businesses to make new investments by eliminating the business tangible
personal property tax on equipment and fxtures for
small businesses and providing a $500,000 per year
exemption for all other businesses. The Legislature
may not reduce this exemption, but it may increase it.
(m) Provide greater equity in the taxation of
commercial and industrial properties by assessing all
of them based on their actual fair market value just
like start-ups and new commercial and industrial properties that already are being assessed based on
4 | Text of Proposed Laws
TEXT OF PROPOSED LAWS PROPOSITION 15 CONTINUED
their actual fair market value. The intent is for all
businesses to compete on a more level playing feld
and make sure all businesses are paying their share to
support the schools and local communities from which
they beneft.
(n) Require the Legislature, after conferring with a
task force on property tax administration, to provide
by statute for the phase-in of reassessments of under-
assessed commercial and industrial real properties so
that county assessors may effectively implement the
new law. Such phase-in will begin with the lien date
for the 2022–23 fscal year and occur over several
years. Affected owners shall only be obligated to pay
the taxes based on the new assessed value beginning
with the lien date for the fscal year when the assessor
has completed the reassessment.
(o) Require the Legislature to ensure that the phase-
in provisions provide affected owners of under-
assessed commercial and industrial real properties
reasonable time to pay any increase in their tax
obligations resulting from this measure.
(p) Provide for the recovery of actual direct
administrative costs incurred by counties to effectively
implement the new law.
(q) Ensure that the General Fund and other funds of
the state are held harmless by reimbursing the state
for reductions in tax revenue caused by the
deductibility of the property tax.
(r) Maintain the State Board of Equalization’s
oversight over the property tax system to assure the
public that assessments of commercial and industrial
real property in every county are equitable and
uniform as required by this measure, and to further
ensure that the State Board of Equalization provides
statewide assistance as necessary to support the
effcient implementation of this measure within all
58 counties.
SEC. 4. Section 8.7 is added to Article XVI of the
California Constitution, to read:
SEC. 8.7. (a) The Local School and Community
College Property Tax Fund is hereby created in the
State Treasury, to be held in trust, and is continuously
appropriated for the support of local educational
agencies as that term is defned in Section 421 of the
Education Code, as that statute read on January 1,
2020, and for the support of community college
districts. The moneys deposited in the Local School
and Community College Property Tax Fund shall be
held in trust for schools, and shall be distributed as
follows:
(1) Eleven percent of the moneys shall be allocated
by the Board of Governors of the California Community
Colleges to community college districts in proportion
to the funding calculated for each district pursuant to
the distribution formulas operative in statute as of
January 1, 2020, or any successor statute, provided
that property tax revenues calculated pursuant to
Section 84751 of the Education Code, or any
successor statute, that exceed the total funding
calculated for a district pursuant to the then operative
distribution formulas shall be subtracted from that
district’s proportionate share of the Local School and
Community College Property Tax Fund.
(2) Eighty-nine percent of the moneys shall be
allocated by the Superintendent of Public Instruction
to school districts, charter schools, and county offces
of education as follows:
(A) To school districts and charter schools, in
proportion to each school district’s or charter school’s
total funding calculated pursuant to subdivisions (a)
to (i), inclusive, of Section 42238.02 of the Education
Code, as those provisions read on July 1, 2019. Any
school district or charter school that qualifes as a
“basic aid school district” or “excess tax entity” under
subdivision (o) of Section 42238.02 of the Education
Code shall have subtracted from its proportionate
share of the Local School and Community College
Property Tax Fund the amount by which the sum
calculated in subdivision (j) of Section 42238.02 of
the Education Code exceeds the amount calculated
pursuant to subdivisions (a) to (i), inclusive, of
Section 42238.02 of the Education Code, as each of
those provisions read on July 1, 2019.
(B) To county offces of education, in proportion to
each offce’s total funding calculated pursuant to
Section 2574 of the Education Code, as that section
read on July 1, 2019.
(3) Notwithstanding paragraphs (1) and (2) of this
subdivision, no school district or charter school shall
receive from the Local School and Community College
Property Tax Fund less than one hundred dollars
($100) per unit of average daily attendance, adjusted
annually upward or downward by the same percentage
that the Local School and Community College Property
Tax Fund grew or declined from the previous year, and
no community college district shall receive from the
Local School and Community College Property Tax
Fund less than one hundred dollars ($100) per
enrolled full-time equivalent student, adjusted
annually upward or downward by the same percentage
that the Local School and Community College Property
Tax Fund grew or declined from the previous year.
(b) Except as provided in paragraph (2) of subdivision
(d) of Section 8.6 of this article, notwithstanding any
other law, the moneys deposited in the Local School
and Community College Property Tax Fund shall not
be subject to appropriation, reversion, or transfer by
the Legislature, the Governor, the Director of Finance,
or the Controller for any purpose other than those
specifed in this section, nor shall these revenues be
loaned to the General Fund or any other fund of the
State or any local government fund.
(c) Moneys allocated to local educational agencies, as
that term is defned in Section 421 of the Education
Text of Proposed Laws | 5
15
TEXT OF PROPOSED LAWS PROPOSITION 15 CONTINUED
Code, as that statute read on January 1, 2020, and to
community college districts from the Local School and
Community College Property Tax Fund shall
supplement, and shall not replace, other funding for
education. Funds deposited into or allocated from the
Local School and Community College Property Tax
Fund shall not be part of “total allocations to school
districts and community college districts from General
Fund proceeds of taxes appropriated pursuant to
Article XIII B and allocated local proceeds of taxes”
for purposes of paragraphs (2) and (3) of subdivision
(b) of Section 8 of this article or for purposes of
Section 21 of this article. Except as provided in
subdivision (c) of Section 8.6 of this article, revenues
generated by Section 2.5 of Article XIIIA shall not be
deemed to be General Fund revenues which may be
appropriated pursuant to Article XIIIB for purposes of
paragraph (1) of subdivision (b) of Section 8 of this
article, nor shall they be considered in the
determination of per capita General Fund revenues for
purposes of subdivisions (b) and (e) of Section 8 of
this article.
(d) Except as provided in subdivision (c) of Section
8.6 of this article, revenues generated by Section 2.5
of Article XIIIA shall not be deemed to be General
Fund proceeds of taxes that may be appropriated
pursuant to Article XIIIB for purposes of Section 20 or
Section 21 of this article.
SEC. 5. Section 8.6 is added to Article XVI of the
California Constitution, to read:
SEC. 8.6. (a) The Legislature shall provide by
statute a methodology, based on historical experience,
for determining the additional revenue generated in
each county each fscal year as a result of the
application of the tax rate specifed in subdivision (a)
of Section 1 of Article XIIIA and the application of
Section 2.5 of Article XIIIA. The determination as to
the amount of additional revenue in each county shall
be transmitted to the county auditor annually for use
for the calculations required by this section.
(b) After transferring the necessary funds pursuant to
subdivisions (c), (d), and (e), and subparagraph (B) of
paragraph (1) of this subdivision, all additional
revenue resulting from the application of the tax rate
specifed in subdivision (a) of Section 1 of Article
XIIIA and the application of Section 2.5 of Article
XIIIA shall be allocated and transferred by the county
auditor as follows:
(1) (A) First, to the Local School and Community
College Property Tax Fund created pursuant to Section
8.7 of this article, in an amount equal to the school
entities’ share of property taxes as determined
pursuant to Chapter 6 (commencing with Section 95)
of Part 0.5 of Division 1 of the Revenue and Taxation
Code, as that chapter read on January 1, 2020.
(B) Prior to making the transfer pursuant to
subparagraph (A) of paragraph (1) of this subdivision,
6 | Text of Proposed Laws
15
the county auditor shall subtract an amount equal to
the county’s share of the increase in appropriations of
General Fund proceeds of taxes for the support of
school districts and community college districts pursuant to Section 8 of this article due to the revenue
loss resulting from the exemptions provided by Section 3.1 of Article XIII, as determined by the
Director of Finance. The county’s share of additional
General Fund appropriations shall be transferred by
the county auditor to the General Fund prior to the
allocation specifed in subparagraph (A) of paragraph
(1) of this subdivision. The amount determined by the
Director of Finance pursuant to this subparagraph
shall for each fscal year be apportioned by county in
proportion to the revenue loss resulting from the exemptions provided by Section 3.1 of Article XIII.
(2) Second, among cities, counties, and special
districts pursuant to Chapter 6 (commencing with
Section 95) of Part 0.5 of Division 1 of the Revenue
and Taxation Code, as that chapter read on January 1,
2020.
(c) The Franchise Tax Board shall determine the
reduction to the General Fund and any other affected
state fund of revenues derived from the taxes imposed by the Personal Income Tax Law (Part 10
(commencing with Section 17001) of Division 2 of the Revenue and Taxation Code) and the Corporation
Tax Law (Part 11 (commencing with Section 23001)
of Division 2 of the Revenue and Taxation Code), as
those laws read on January 1, 2020, due to the
deduction of any net increase in property taxes
resulting from the implementation of subdivision (a)
of Section 3.1 of Article XIII and Section 2.5 of
Article XIIIA. The amount of reduction as determined
by the Franchise Tax Board shall be transferred by the county auditor to the General Fund and any other
affected state fund prior to the allocation specifed in
subdivision (b). For purposes of making the
determinations required by Sections 8, 20, and 21 of
this article, the amount transferred to the General
Fund pursuant to this subdivision shall be deemed to
be General Fund revenues which may be appropriated
pursuant to Article XIIIB and General Fund proceeds
of taxes appropriated pursuant to Article XIIIB and shall be included in the calculation of per capita
General Fund revenues. The amount transferred pursuant to this subdivision shall for each fscal year
be apportioned among the counties in proportion to
each county’s contribution to the total additional
revenue resulting from the application of the tax rate
specifed in subdivision (a) of Section 1 of Article
XIIIA and the application Section 2.5 of Article XIIIA
determined for all counties.
(d) (1) Each county or city and county shall be
annually compensated for the actual direct administrative costs of implementing Section 3.1 of
Article XIII and Section 2.5 of Article XIIIA as
identifed by the board of supervisors of the county or
city and county consistent with statutes identifying
TEXT OF PROPOSED LAWS PROPOSITION 15 CONTINUED
those costs. The Legislature shall determine by statute
what constitutes actual direct administrative costs for
purposes of this subdivision. Such costs shall at a
minimum include the costs of assessment,
assessment appeals, legal counsel, tax allocation and
distribution, and auditing and enforcement of the
provisions of Section 3.1 of Article XIII and Section
2.5 of Article XIIIA. It is the intent of this subdivision
to provide full adequate funding to counties to cover
all costs associated with implementation of the act.
(2) The Legislature shall determine by statute the
initial startup costs necessary for each county or city
and county and the State Board of Equalization to
implement the act and shall appropriate General Fund
moneys to pay for such startup costs until suffcient
funds are available to pay for all ongoing costs to
implement the act, at which time the statute shall
provide for the General Fund to be reimbursed.
(e) Each county or city and county shall annually be
reimbursed for actual refunds of property taxes paid in
the prior fscal year as a result of corrections to
assessments made pursuant to Section 2.5 of Article
XIIIA. The amount reimbursed pursuant to this
subdivision shall for each fscal year be subtracted
from each county’s contribution to the total additional
revenue resulting from the application of Section 2.5
of Article XIIIA as a result of the application of the tax
rate specifed in subdivision (a) of Section 1 of Article
XIIIA.
(f) All local educational agencies, community
colleges, counties, cities and counties, cities, and
special districts that receive funds from the revenues
generated by Section 2.5 of Article XIIIA shall
publicly disclose for each fscal year, including in their
annual budgets, the amount of property tax revenues
they received for that fscal year as the result of
Section 2.5 of Article XIIIA and how those revenues
were spent. Such disclosure shall be made so that it
is widely available to the public and written so as to
be easily understood.
SEC. 6. Section 2.5 is added to Article XIIIA of the
California Constitution, to read:
SEC. 2.5. (a) (1) Notwithstanding Section 2 of this
article, for the lien date for the 2022–23 fscal year
and each lien date thereafter, the “full cash value” of
commercial and industrial real property that is not
otherwise exempt under the Constitution is the fair
market value of such real property as of that date as
determined by the county assessor of the county in
which such real property is located, except as provided
by the Legislature pursuant to subdivision (b).
(2) Paragraph (1) of this subdivision shall not apply
to residential property as defned in this section,
whether it is occupied by a homeowner or a renter.
Residential property as defned in this section shall be
assessed as required by Section 2 of this article.
Paragraph (1) of this subdivision shall also not apply
to real property used for commercial agricultural
production as defned in this section. Real property
used for commercial agricultural production as
defned in this section shall be assessed as required
by Section 2 of this article.
(b) The Legislature shall establish a task force on
property tax administration immediately after this
section is enacted, including a county assessor or
designee, a State Board of Equalization member or
designee, a proponent of this act or designee, a
taxpayer representative, and a member of the
Legislature or designee. The task force shall publicly
convene immediately upon its creation to examine and
recommend to the Legislature all statutory and
regulatory changes necessary for the equitable
implementation of this measure consistent with its
purpose and intent. The Legislature, after conferring
with the task force, shall provide by statute for the
phase-in of the reassessment of commercial and
industrial real property as required by paragraph (1) of
subdivision (a). Any such phase-in shall provide for
reassessment of a percentage of all commercial and
industrial real properties within each county
commencing with the lien date for the 2022–23 fscal
year and extending over two or more lien dates each fscal year thereafter, in order to ensure a reasonable
workload and implementation period for county assessors, including provision for processing and
timing of assessment appeals. An owner shall frst be obligated to pay the taxes based on the new assessed
value beginning with the lien date for the fscal year when the county assessor has completed the
reassessment. The phase-in also shall provide taxpayers whose property has been reassessed a
reasonable timeframe within which to pay any increase
in taxes. After the initial reassessment of commercial
and industrial real property pursuant to this
subdivision, such commercial and industrial real
property shall be periodically reassessed no less
frequently than every three years as determined by the
Legislature. Notwithstanding existing statutes, the
Legislature shall, in consultation with county
assessors, develop a process for hearing appeals
resulting from the reassessment of properties pursuant
to this section that is consistent with the following:
15
(1) The process shall not include automatic
acceptance of the applicant’s opinion of values within
a given timeframe.
(2) The process shall impose on the taxpayer the
burden of proof that the property was not properly
valued.
(3) The process shall require the taxpayer to provide
evidence relevant to any appeal in the initial
application before the local assessment appeals
board.
(4) The process shall ensure that decisions by local
administrative hearing bodies such as assessment
appeals boards, if subject to judicial review, are
Text of Proposed Laws | 7
TEXT OF PROPOSED LAWS PROPOSITION 15 CONTINUED
subject only to de novo judicial review on issues of
law, while issues of fact, including valuation, shall be
reviewed under the substantial evidence standard.
(c) For purposes of this section:
15
(1) “Commercial and industrial real property” means
any real property that is used as commercial or
industrial property, or is vacant land not zoned for
residential use and not used for commercial
agricultural production. For purposes of this
paragraph, vacant land shall not include real property
that is used or protected for open space, a park, or the
equivalent designation for land essentially free of
structures, natural in character to provide
opportunities for recreation and education, and
intended to preserve scenic, cultural, or historic
values.
(2) “Mixed-use real property” means real property on
which both residential and commercial or industrial
uses are permitted.
(3) “Real property used for commercial agricultural
production” means land that is used for producing
commercial agricultural commodities.
(4) (A) “Residential property” shall include real
property used as residential property, including both
single-family and multiunit structures, and the land
on which those structures are constructed or placed.
(B) The Legislature shall provide by statute that any
property zoned as commercial or industrial but used
as long-term residential property shall be classifed as
residential for purposes of paragraph (2) of subdivision
(a). For mixed-use real property, the Legislature shall
ensure only that portion of the property that is used
for commercial and industrial purposes shall be
subject to reassessment as required by paragraph (1)
of subdivision (a). The Legislature shall also defne
and provide by statute that limited commercial uses
of residential property, such as home offces, home-
based businesses or short-term rentals, shall be
classifed as residential for purposes of paragraph (2)
of subdivision (a). The Legislature may provide for an
exclusion from reassessment for the commercial share
of mixed-use property provided 75 percent or more of
the property by square footage or value is residential.
(d) (1) Subject to paragraph (2) of this subdivision,
upon reassessment pursuant to subdivisions (a) and
(b), each commercial and industrial real property with
a fair market value of three million dollars
($3,000,000) or less shall not be subject to
reassessment pursuant to paragraph (1) of subdivision
(a) and shall be assessed as required by Section 2 of
this article. The amount specifed in this paragraph
shall be adjusted for infation every two years
commencing January 1, 2025, as determined by the
State Board of Equalization. The State Board of
Equalization shall calculate the adjustment separately
for each county taking into consideration differences
8 | Text of Proposed Laws
in average commercial and industrial market values
among counties.
(2) Notwithstanding paragraph (1) of this subdivision,
real property that would otherwise comply with the
exclusion set forth in paragraph (1) of this subdivision
shall be subject to reassessment pursuant to
paragraph (1) of subdivision (a) if any of the direct or
indirect benefcial owners of such real property own a
direct or indirect benefcial ownership interest in other
commercial or industrial real property located in the
State, which such real property in the aggregate,
including the subject property, has a fair market value
in excess of three million dollars ($3,000,000). The
amount specifed in this paragraph shall be adjusted
for infation every two years commencing January 1,
2025, as determined by the State Board of
Equalization.
(3) All determinations of fair market value under this
subdivision shall be determined by the county
assessor of the county in which the property is
located, and such determinations by the county
assessor shall be conclusive and subject only to
judicial review for abuse of discretion.
(4) In order to be eligible for the exclusion provided
by paragraph (1) of this subdivision, the owner of the
real property shall make a claim and certify annually
to the county assessor under penalty of perjury that
the conditions required by paragraphs (1) and (2) of
this subdivision for exemption from reassessment
have been met and shall be subject to audit by the
county or the State as to that certifcation. The State
Board of Equalization shall have the authority to
conduct any audits on behalf of the State.
(5) Any real property excluded from reassessment
under paragraph (1) of this subdivision shall only be
excluded from reassessment so long as it meets the
conditions imposed by paragraphs (1) and (2) of this
subdivision. If there is any change in the direct or
indirect benefcial ownership of such real property, a
new claim and certifcation must be made to the
county assessor.
(6) Any appeals by taxpayers who are found not to be
excluded from reassessment pursuant to paragraph
(1) of this subdivision shall be subject to the process
for hearing appeals as provided in subdivision (b).
(e) (1) Provided 50 percent or more of the occupied
square footage of a commercial or industrial real
property is occupied by a small business as defned in
paragraph (4) of this subdivision, the provisions of
paragraph (1) of subdivision (a) shall not take effect
prior to the lien date for the 2025–26 fscal year;
provided, however, that if the Legislature establishes
by statute pursuant to subdivision (b) that a real
property qualifed under this paragraph shall be
reassessed on a lien date subsequent to the 2025–26
fscal year, then such property shall be reassessed
commencing on that subsequent lien date.
TEXT OF PROPOSED LAWS PROPOSITION 15 CONTINUED
(2) In order to be eligible for the deferral provided by
paragraph (1) of this subdivision, the owner of the
property shall make a claim and certify annually to the
county assessor under penalty of perjury that the
conditions required by paragraph (1) of this
subdivision for deferral from reassessment have been
met and shall be subject to audit by the county or the
State Board of Equalization as to that certifcation.
(3) Any real property for which reassessment is
deferred under paragraph (1) of this subdivision shall
only be eligible for deferral so long as it meets the
conditions imposed by paragraph (1) of this
subdivision and if there is any change in the direct or
indirect benefcial ownership of such real property, a
new claim and certifcation must be made to the
county assessor. Upon termination of the deferral, the
property shall be subject to paragraph (1) of
subdivision (a).
(4) For purposes of this subdivision, the term “small
business” shall include only those businesses which
meet all of the following conditions:
(A) The business has fewer than 50 annual full-time
equivalent employees.
(B) The business is independently owned and
operated such that the business ownership interests,
management, and operation are not subject to control,
restriction, modifcation, or limitation by an outside
source, individual, or another business.
(C) The business owns real property located in
California.
(f) For purposes of this section, the failure in any year
to claim, in a manner required by the laws in effect at
the time the claim is required to be made, an
exclusion or classifcation which reduces or defers an
assessment or reassessment shall be deemed a waiver
of the exclusion or classifcation for that year.
(g) Using the methodology prescribed by the
Legislature pursuant to subdivision (a) of Section 8.6
of Article XVI, the percentage change in gross taxable
assessed valuation within a city, county, or city and
county used to calculate an entity’s vehicle license fee
adjustment amount pursuant to Section 97.70 of the
Revenue and Taxation Code shall not include the
additional assessed valuation that results from the
application of this section.
(h) Notwithstanding Section 16 of Article XVI or any
other law, the additional assessed valuation that
results from the application of this section shall not
be factored into any division of taxes or calculation of
growth for treatment as tax increment and shall not be
diverted in any manner whatsoever.
SEC. 7. Section 3.1 is added to Article XIII of the
California Constitution, to read:
SEC. 3.1. (a) (1) For each taxpayer paying the tax
on tangible personal property, including business
equipment and fxtures, used for business purposes,
either of the following shall apply:
(A) (i) For a taxpayer that is a small business, as
defned in paragraph (4) of subdivision (e) of Section
2.5 of Article XIIIA, all tangible personal property
owned and used for business purposes is exempt from
taxation.
(ii) A taxpayer shall make a claim and certify annually
to the county assessor under penalty of perjury that
the condition required by this subparagraph for
exemption has been met and such claim shall be
subject to audit by the county or the State as to that
certifcation.
15
(B) Except for a taxpayer subject to subparagraph (A) of paragraph (1) of this subdivision, an amount of up
to fve hundred thousand dollars ($500,000) of
combined tangible personal property and fxtures, per
taxpayer, is exempt from taxation.
(2) Aircraft and vessels shall not be subject to this
exemption.
(3) The Legislature shall not lower the exemption
amounts provided by this subdivision or change their
application, but may increase the exemption amount
specifed in subparagraph (B) of paragraph (1) of this
subdivision consistent with the authority enumerated
in Section 2 of this article.
(b) The Legislature shall provide by statute that all
related entities, including, but not limited to, any
subsidiaries, holding companies, or parent
corporations, are considered one “taxpayer” for the
purposes of this section.
SEC. 8. Section 16 is added to Article XIIIB of the
California Constitution, to read:
SEC. 16. (a) For purposes of this article, “proceeds
of taxes” shall not include the additional revenues
generated by Section 2.5 of Article XIIIA.
(b) For purposes of this article, appropriations subject
to limitation of each entity of government shall not
include appropriations of the additional revenues collected as a result of the implementation of Section
2.5 of Article XIIIA.
SEC. 9. Effective Date.
This measure shall become operative on January 1,
2022, except that subdivision (a) of Section 3.1 of
Article XIII shall become operative on January 1,
2024, and subdivision (d) of Section 8.6 of Article
XVI and subdivision (b) of Section 2.5 of Article XIIIA
shall become operative immediately upon passage of
this measure.
SEC. 10. Severability.
The provisions of this act are severable. If any portion,
section, subdivision, paragraph, clause, sentence,
phrase, word, or application of this act is for any
reason held to be invalid by a decision of any court of
competent jurisdiction, that decision shall not affect
Text of Proposed Laws | 9
TEXT OF PROPOSED LAWS PROPOSITION 15 CONTINUED
the validity of the remaining portions of this act. The
people of the State of California hereby declare that
they would have adopted this act and each and every
portion, section, subdivision, paragraph, clause,
sentence, phrase, word, and application not declared
invalid or unconstitutional without regard to whether
any portion of this act or application thereof would be
subsequently declared invalid. Notwithstanding the
foregoing, Section 7 of this act is non-severable from
Section 6 of this act.
15
16
17
18
SEC. 11. Liberal Construction.
This act shall be liberally construed in order to
effectuate its purposes as articulated in Section 3 of
this act.
PROPOSITION 16
This amendment proposed by Assembly Constitutional
Amendment 5 of the 2019–2020 Regular Session
(Resolution Chapter 23, Statutes of 2020) expressly
amends the California Constitution by repealing a
section thereof; therefore, existing provisions proposed
to be deleted are printed in strikeout type.
PROPOSED AMENDMENT TO ARTICLE I
That Section 31 of Article I thereof is repealed.
SEC. 31. (a) The State shall not discriminate
against, or grant preferential treatment to, any
individual or group on the basis of race, sex, color,
ethnicity, or national origin in the operation of public
employment, public education, or public contracting.
(b) This section shall apply only to action taken after
the section’s effective date.
(c) Nothing in this section shall be interpreted as
prohibiting bona fde qualifcations based on sex
which are reasonably necessary to the normal
operation of public employment, public education, or
public contracting.
(d) Nothing in this section shall be interpreted as
invalidating any court order or consent decree which is in force as of the effective date of this section.
(e) Nothing in this section shall be interpreted as prohibiting action which must be taken to establish or
maintain eligibility for any federal program, where ineligibility would result in a loss of federal funds to
the State.
(f) For the purposes of this section, “State” shall
include, but not necessarily be limited to, the State
itself, any city, county, city and county, public
university system, including the University of
California, community college district, school district,
special district, or any other political subdivision or
governmental instrumentality of or within the State.
(g) The remedies available for violations of this
section shall be the same, regardless of the injured
party’s race, sex, color, ethnicity, or national origin, as
10 | Text of Proposed Laws
are otherwise available for violations of then-existing
California antidiscrimination law.
(h) This section shall be self-executing. If any part or
parts of this section are found to be in confict with
federal law or the United States Constitution, the
section shall be implemented to the maximum extent
that federal law and the United States Constitution
permit. Any provision held invalid shall be severable
from the remaining portions of this section.
PROPOSITION 17
This amendment proposed by Assembly Constitutional
Amendment 6 of the 2019–2020 Regular Session
(Resolution Chapter 24, Statutes of 2020) expressly
amends the California Constitution by amending
sections thereof; therefore, existing provisions
proposed to be deleted are printed in strikeout type
and new provisions proposed to be added are printed
in italic type to indicate that they are new.
PROPOSED AMENDMENTS TO ARTICLE II
First—That Section 2 of Article II thereof is amended
to read:
SEC. 2. (a) A United States citizen 18 years of age
and resident in this State may vote.
(b) An elector disqualifed from voting while serving a
state or federal prison term, as described in Section
4, shall have their right to vote restored upon the
completion of their prison term.
Second—That Section 4 of Article II thereof is
amended to read:
SEC. 4. The Legislature shall prohibit improper
practices that affect elections and shall provide for the disqualifcation of electors while mentally
incompetent or imprisoned or on parole serving a state or federal prison term for the conviction of a felony.
PROPOSITION 18
This amendment proposed by Assembly Constitutional Amendment 4 of the 2019–2020 Regular Session
(Resolution Chapter 30, Statutes of 2020) expressly amends the California Constitution by amending a
section thereof; therefore, new provisions proposed to be added are printed in italic type to indicate that
they are new.
PROPOSED AMENDMENT TO ARTICLE II
That Section 2 of Article II thereof is amended to read:
SEC. 2. (a) A United States citizen who is at least 18 years of age and a resident in this State may vote.
(b) A United States citizen who is 17 years of age, is a resident in this State, and will be at least 18 years
of age at the time of the next general election may
TEXT OF PROPOSED LAWS PROPOSITION 18 CONTINUED
vote in any primary or special election that occurs
before the next general election in which the citizen
would be eligible to vote if at least 18 years of age.
PROPOSITION 19
This amendment proposed by Assembly Constitutional
Amendment 11 of the 2019–2020 Regular Session
(Resolution Chapter 31, Statutes of 2020) expressly
amends the California Constitution by adding sections
thereto; therefore, new provisions proposed to be
added are printed in italic type to indicate that they
are new.
PROPOSED AMENDMENTS TO ARTICLE XIII A
First—This measure shall be known, and may be
cited, as the Home Protection for Seniors, Severely
Disabled, Families, and Victims of Wildfre or Natural
Disasters Act.
Second—That Section 2.1 is added to Article XIIIA
thereof, to read:
SEC. 2.1. (a) Limitation on Property Tax Increases
on Primary Residences for Seniors, the Severely
Disabled, Wildfre and Natural Disaster Victims, and
Families. It is the intent of the Legislature in
proposing, and the people in adopting, this section to
do both of the following:
(1) Limit property tax increases on primary residences
by removing unfair location restrictions on
homeowners who are severely disabled, victims of
wildfres or other natural disasters, or seniors over 55
years of age that need to move closer to family or
medical care, downsize, fnd a home that better fts
their needs, or replace a damaged home and limit
damage from wildfres on homes through dedicated
funding for fre protection and emergency response.
(2) Limit property tax increases on family homes used
as a primary residence by protecting the right of
parents and grandparents to pass on their family home
to their children and grandchildren for continued use
as a primary residence, while eliminating unfair tax
loopholes used by East Coast investors, celebrities,
wealthy non-California residents, and trust fund heirs
to avoid paying a fair share of property taxes on
vacation homes, income properties, and beachfront
rentals they own in California.
(b) Property Tax Fairness for Seniors, the Severely
Disabled, and Victims of Wildfre and Natural
Disasters. Notwithstanding any other provision of this
Constitution or any other law, beginning on and after
April 1, 2021, the following shall apply:
(1) Subject to applicable procedures and defnitions
as provided by statute, an owner of a primary
residence who is over 55 years of age, severely
disabled, or a victim of a wildfre or natural disaster
may transfer the taxable value of their primary
residence to a replacement primary residence located
anywhere in this state, regardless of the location or
value of the replacement primary residence, that is
purchased or newly constructed as that person’s
principal residence within two years of the sale of the
original primary residence.
(2) For purposes of this subdivision:
(A) For any transfer of taxable value to a replacement
primary residence of equal or lesser value than the
original primary residence, the taxable value of the
replacement primary residence shall be deemed to be
the taxable value of the original primary residence.
(B) For any transfer of taxable value to a replacement
primary residence of greater value than the original
primary residence, the taxable value of the
replacement primary residence shall be calculated by
adding the difference between the full cash value of
the original primary residence and the full cash value
of the replacement primary residence to the taxable
value of the original primary residence.
(3) An owner of a primary residence who is over 55
years of age or severely disabled shall not be allowed
to transfer the taxable value of a primary residence
more than three times pursuant to this subdivision.
18
(4) Any person who seeks to transfer the taxable value
of their primary residence pursuant to this subdivision
shall fle an application with the assessor of the
county in which the replacement primary residence is
located. The application shall, at minimum, include
information comparable to that identifed in paragraph
19
(1) of subdivision (f) of Section 69.5 of the Revenue
and Taxation Code, as that section read on January 1,
2020.
(c) Property Tax Fairness for Family Homes.
Notwithstanding any other provision of this
Constitution or any other law, beginning on and after
February 16, 2021, the following shall apply:
(1) For purposes of subdivision (a) of Section 2, the
terms “purchased” and “change in ownership” do not
include the purchase or transfer of a family home of
the transferor in the case of a transfer between
parents and their children, as defned by the
Legislature, if the property continues as the family
home of the transferee. This subdivision shall apply to
both voluntary transfers and transfers resulting from a
court order or judicial decree. The new taxable value
of the family home of the transferee shall be the sum
of both of the following:
(A) The taxable value of the family home, subject to
adjustment as authorized by subdivision (b) of Section
2, determined as of the date immediately prior to the
date of the purchase by, or transfer to, the transferee.
(B) The applicable of the following amounts:
(i) If the assessed value of the family home upon
purchase by, or transfer to, the transferee is less than
the sum of the taxable value described in
Text of Proposed Laws | 11
TEXT OF PROPOSED LAWS PROPOSITION 19 CONTINUED
subparagraph (A) plus one million dollars
($1,000,000), then zero dollars ($0).
(ii) If the assessed value of the family home upon
purchase by, or transfer to, the transferee is equal to
or more than the sum of the taxable value described
in subparagraph (A) plus one million dollars
($1,000,000), an amount equal to the assessed value
of the family home upon purchase by, or transfer to,
the transferee, minus the sum of the taxable value
described in subparagraph (A) and one million dollars
($1,000,000).
(2) Paragraph (1) shall also apply to a purchase or
transfer of the family home between grandparents and
their grandchildren if all of the parents of those
grandchildren, who qualify as children of the
grandparents, are deceased as of the date of the
purchase or transfer.
(3) Paragraphs (1) and (2) shall also apply to the
purchase or transfer of a family farm. For purposes of
this paragraph, any reference to a “family home” in
paragraph (1) or (2) shall be deemed to instead refer
to a “family farm.”
(4) Beginning on February 16, 2023, and every other
February 16 thereafter, the State Board of
Equalization shall adjust the one million dollar
($1,000,000) amount described in paragraph (1) for
infation to refect the percentage change in the House
Price Index for California for the prior calendar year,
as determined by the Federal Housing Finance
Agency. The State Board of Equalization shall
calculate and publish the adjustments required by
this paragraph.
19
(5) (A) Subject to subparagraph (B), in order to
receive the property tax beneft provided by this
section for the purchase or transfer of a family home,
the transferee shall claim the homeowner’s exemption
or disabled veteran’s exemption at the time of the
purchase or transfer of the family home.
(B) A transferee who fails to claim the homeowner’s
exemption or disabled veteran’s exemption at the time
of the purchase or transfer of the family home may
receive the property tax beneft provided by this
section by claiming the homeowner’s exemption or
disabled veteran’s exemption within one year of the
purchase or transfer of the family home and shall be
entitled to a refund of taxes previously owed or paid
between the date of the transfer and the date the
transferee claims the homeowner’s exemption or
disabled veteran’s exemption.
(d) Subdivision (h) of Section 2 shall apply to any
purchase or transfer that occurs on or before February
15, 2021, but shall not apply to any purchase or
transfer occurring after that date. Subdivision (h) of
Section 2 shall be inoperative as of February 16,
2021.
(e) For purposes of this section:
12 | Text of Proposed Laws
(1) “Disabled veteran’s exemption” means the
exemption authorized by subdivision (a) of Section 4
of Article XIII.
(2) “Family farm” means any real property which is
under cultivation or which is being used for pasture or
grazing, or that is used to produce any agricultural
commodity, as that term is defned in Section 51201
of the Government Code as that section read on
January 1, 2020.
(3) “Family home” has the same meaning as
“principal residence,” as that term is used in
subdivision (k) of Section 3 of Article XIII.
(4) “Full cash value” has the same meaning as
defned in subdivision (a) of Section 2.
(5) “Homeowner’s exemption” means the exemption
provided by subdivision (k) of Section 3 of Article XIII.
(6) “Natural disaster” means the existence, as
declared by the Governor, of conditions of disaster or
extreme peril to the safety of persons or property
within the affected area caused by conditions such as
fre, food, drought, storm, mudslide, earthquake, civil
disorder, foreign invasion, or volcanic eruption.
(7) “Primary residence” means a residence eligible
for either of the following:
(A) The homeowner’s exemption.
(B) The disabled veteran’s exemption.
(8) “Principal residence” as used in subdivision (b)
has the same meaning as that term is used in
subdivision (a) of Section 2.
(9) “Replacement primary residence” has the same
meaning as “replacement dwelling,” as that term is
defned in subdivision (a) of Section 2.
(10) “Taxable value” means the base year value
determined in accordance with subdivision (a) of
Section 2 plus any adjustment authorized by
subdivision (b) of Section 2.
(11) “Victim of a wildfre or natural disaster” means
the owner of a primary residence that has been
substantially damaged as a result of a wildfre or
natural disaster that amounts to more than 50 percent
of the improvement value of the primary residence
immediately before the wildfre or natural disaster. For
purposes of this paragraph, “damage” includes a
diminution in the value of the primary residence as a
result of restricted access caused by the wildfre or
natural disaster.
(12) “Wildfre” has the same meaning as defned in
subdivision (j) of Section 51177 of the Government
Code, as that section read on January 1, 2020.
Third—That Section 2.2 is added to Article XIIIA
thereof, to read:
SEC. 2.2. (a) Protection of Fire Services,
Emergency Response, and County Services. It is the
intent of the Legislature in proposing, and the people
TEXT OF PROPOSED LAWS PROPOSITION 19 CONTINUED
in adopting, this section and Section 2.3 to do both of
the following:
(1) Dedicate revenue for fre protection and
emergency response, address inequities in underfunded fre districts, ensure all communities are
protected from wildfres, and safeguard the lives of millions of Californians.
(2) Protect county revenues and other vital local services.
(b) (1) The California Fire Response Fund is hereby created within the State Treasury.
(2) The County Revenue Protection Fund is hereby created within the State Treasury. Moneys in the
County Revenue Protection Fund are continuously appropriated, without regard to fscal year, for the
purpose of reimbursing eligible local agencies that incur a negative gain, and paying the administrative
costs of the California Department of Tax and Fee Administration, in accordance with Section 2.3.
Moneys in the fund shall only be expended as provided in Section 2.3.
(c) For purposes of the calculations required by Section 8 of Article XVI, moneys in the California Fire
Response Fund and the County Revenue Protection Fund shall be deemed to be General Fund revenues
which may be appropriated pursuant to Article XIII B.
(d) The Director of Finance shall do the following, as
applicable:
(1) On or before September 1, 2022, and on or before
each subsequent September 1 through September 1, 2027, calculate the additional revenues and savings
that accrued to the state from the implementation of Section 2.1, including, but not limited to, any
increase in state income tax revenues and net savings to the state arising from any reduction in the state’s
funding obligation under Section 8 of Article XVI, during the immediately preceding fscal year ending
on June 30. In making the calculation required by this paragraph, the Director of Finance shall use actual
data or best available estimates where actual data is not available. The calculation shall be fnal and shall
not be adjusted for any subsequent changes in the underlying data. The Director of Finance shall certify
the results of the calculation to the Legislature and the Controller no later than September 1 of each year.
(2) On or before September 1, 2028, and each subsequent September 1 thereafter, calculate the
additional revenues and savings that accrued to the state from the implementation of Section 2.1,
including, but not limited to, any increase in state income tax revenues and net savings to the state
arising from any reduction in the state’s funding obligation under Section 8 of Article XVI during the
immediately preceding fscal year ending on June 30 by multiplying the amount from the immediately
preceding fscal year ending on June 30 by the rate of increase in property tax revenues allocated to local
agencies in that fscal year. In making the calculation
required by this paragraph, the Director of Finance
shall use actual data or best available estimates where
actual data is not available. The calculation shall be
fnal and shall not be adjusted for any subsequent
changes in the underlying data. The Director of
Finance shall certify the results of the calculation to
the Legislature and the Controller no later than
September 1 of each fscal year.
(e) No later than September 15, 2022, and each
subsequent September 15 thereafter, the Controller
shall do both of the following:
(1) Transfer from the General Fund to the California
Fire Response Fund an amount equal to 75 percent of
the amount calculated by the Director of Finance
pursuant to subdivision (d) for the applicable year.
(2) Transfer from the General Fund to the County
Revenue Protection Fund an amount equal to 15
percent of the amount calculated by the Director of
Finance pursuant to subdivision (d) for the applicable
year. Moneys transferred to the County Revenue
Protection Fund pursuant to this paragraph shall be
used to reimburse eligible local agencies with a
negative gain, as provided in Section 2.3.
(f) Moneys in the California Fire Response Fund shall
be appropriated by the Legislature in each fscal year
exclusively for the purposes of this section and, except
as otherwise provided in subdivision (g), shall not be
appropriated for any other purpose. Moneys in the
California Fire Response Fund may be used upon
appropriation without regard to fscal year and shall be
used to expand fre suppression staffng, as set forth
in paragraphs (1) to (4), inclusive, and not to supplant
existing state or local funds utilized for those
purposes.
19
(1) Twenty percent of the moneys in the California
Fire Response Fund shall be appropriated to the
Department of Forestry and Fire Protection to fund fre
suppression staffng.
(2) Eighty percent of the moneys in the California Fire
Response Fund shall be deposited in the Special
District Fire Response Fund, which is hereby created
as a subaccount within the California Fire Response
Fund, and appropriated to special districts that
provide fre protection services in accordance with the
following criteria:
(A) Fifty percent of the amount described in this
paragraph shall be used to fund fre suppression
staffng in underfunded special districts that provide
fre protection services, were formed after July 1,
1978, and employ full-time or full-time-equivalent
station-based personnel who are immediately available
to comprise at least 50 percent of an initial full alarm
assignment.
(B) Twenty-fve percent of the amount described in
this paragraph shall be used to fund fre suppression
staffng in special districts that provide fre protection
Text of Proposed Laws | 13
TEXT OF PROPOSED LAWS PROPOSITION 19 CONTINUED
services, were formed before July 1, 1978, are
underfunded due to a disproportionately low share of
property tax revenue and an increase in service level
demands since July 1, 1978, and employ full-time or
full-time-equivalent station-based personnel who are
immediately available to comprise at least 50 percent
of an initial full alarm assignment.
(C) Twenty-fve percent of the amount described in
this paragraph shall be used to fund fre suppression
staffng in underfunded special districts that provide
fre protection services and employ full-time or full-
time-equivalent station-based personnel who are
immediately available to comprise at least 30 percent
but less than 50 percent of an initial full alarm
assignment.
(3) In determining whether a special district that
provides fre protection services is underfunded for
purposes of paragraph (2), the Legislature shall take
into account the following factors, in order of priority:
(A) The degree to which the special district’s property
tax revenue is insuffcient to sustain adequate fre
suppression, as measured against the population
density, size of the service area, and number of
taxpayers within the boundaries of the special district.
19
(B) Whether the special district, upon formation,
received a property tax allocation in accordance with
Chapter 282 of the Statutes of 1979.
(C) Geographic diversity.
(4) The allocation of moneys to a special district that
qualifes pursuant to paragraph (2) shall be in the
form of grants, with a term of not less than 10 years,
in order to ensure that the special district can engage
in responsible budgeting and sustain adequate fre
suppression services over the long term.
(g) Notwithstanding subdivision (f), if in any fscal
year after the frst fscal year for which moneys are
transferred from the General Fund to the California
Fire Response Fund pursuant to this section the
amount transferred exceeds the amount transferred in
the previous fscal year by more than 10 percent, the
Controller shall not transfer the amount in excess of
that 10 percent, which shall be available for
appropriation from the General Fund for any purpose.
Fourth—That Section 2.3 is added to Article XIIIA
thereof, to read:
SEC. 2.3. (a) Each county shall annually, no later
than the date specifed by the California Department
of Tax and Fee Administration by regulations adopted
pursuant to this section, determine the gain for the
county and for each local agency in the county
resulting from implementation of Section 2.1 by
adding the following amounts:
(1) The revenue increase resulting from the sale and
reassessment of original primary residences for outbound intercounty transfers pursuant to subdivision
(b) of Section 2.1.
14 | Text of Proposed Laws
(2) The revenue decrease, which shall be expressed
as a negative number, resulting from the transfer of
taxable values of original primary residences located
in other counties to replacement primary residences
located within the county for inbound intercounty
transfers pursuant to subdivision (b) of Section 2.1.
(3) The revenue increase resulting from subdivision
(c) of Section 2.1.
(b) A county or any local agency in the county that
has a positive gain determined pursuant to subdivision
(a) shall not be eligible to receive reimbursement from
the County Revenue Protection Fund. A county or any
local agency in the county that has a negative gain
determined pursuant to subdivision (a) shall be
deemed to be an eligible local agency entitled to a
reimbursement from the County Revenue Protection
Fund.
(c) The California Department of Tax and Fee
Administration shall determine each eligible local
agency’s aggregate gain every three years, based on
the amounts determined pursuant to subdivision (a)
for each of those three years, and provide
reimbursement to each eligible local agency with a
negative gain from the moneys in the County Revenue
Protection Fund equal to that amount. If there are
insuffcient moneys in that fund to cover the total
amount of reimbursements under this section, the
California Department of Tax and Fee Administration
shall allocate a pro rata share of the moneys in the
fund to each eligible local agency based on the
amount of the eligible local agency’s reimbursement
relative to the total amount of reimbursements under
this section.
(d) At the end of each three-year period described in
subdivision (c), after the California Department of Tax
and Fee Administration has reimbursed each eligible
local agency that has experienced a negative gain
during that three-year period, the Controller shall
transfer the remaining balance, if any, in the County
Revenue Protection Fund to the General Fund, to be
available for appropriation for any purpose.
(e) The California Department of Tax and Fee
Administration shall promulgate regulations to
implement this section pursuant to 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), as may be amended from time to time by the
Legislature, or any successor to those provisions.
(f) For purposes of this section and Section 2.2, an
“eligible local agency” is a county, a city, a city and
county, a special district, or a school district as
determined pursuant to subdivision (o) of Section
42238.02 of the Education Code as it read on
January 8, 2020, that has a negative gain as
determined pursuant to this section.
PROPOSITION 20 CONTINUEDTEXT OF PROPOSED LAWS
PROPOSITION 20
This initiative measure is submitted to the people in
accordance with the provisions of Section 8 of Article
II of the California Constitution.
This initiative measure amends and adds sections to
the Penal Code; therefore, existing provisions
proposed to be deleted are printed in strikeout type
and new provisions proposed to be added are printed
in italic type to indicate that they are new.
PROPOSED LAW
SECTION 1. Title.
This act shall be known, and may be cited, as the
Reducing Crime and Keeping California Safe Act of
2018.
SEC. 2. Purposes.
This measure will fx three related problems created
by recent laws that have threatened the public safety
of Californians and their children from violent
criminals. This measure will:
(a)Reform the parole system so violent felons are not
released early from prison, strengthen oversight of
postrelease community supervision, and tighten
penalties for violations of terms of postrelease
community supervision;
(b)Reform theft laws to restore accountability for
serial thieves and organized theft rings; and
(c)Expand DNA collection from persons convicted of
drug, theft, and domestic violence related crimes to
help solve violent crimes and exonerate the innocent.
SEC. 3. Findings and Declarations.
(a)Prevent Early Release of Violent Felons.
(1)Protecting every person in our state, including our
most vulnerable children, from violent crime is of the
utmost importance. Murderers, rapists, child
molesters, and other violent criminals should not be
released early from prison.
(2)Since 2014, California has had a larger increase
in violent crime than the rest of the United States.
Since 2013, violent crime in Los Angeles has
increased 69.5%. Violent crime in Sacramento rose
faster during the frst six months of 2015 than in any
of the 25 largest U.S. cities tracked by the FBI.
(3)Recent changes to parole laws allowed the early
release of dangerous criminals by the law’s failure to
defne certain crimes as “violent.” These changes
allowed individuals convicted of sex traffcking of
children, rape of an unconscious person, felony
assault with a deadly weapon, battery on a police
offcer or frefghter, and felony domestic violence to
be considered “non-violent offenders.”
(4) As a result, these so-called “non-violent”
offenders are eligible for early release from prison
after serving only a fraction of the sentence ordered by
a judge.
(5)Violent offenders are also being allowed to remain
free in our communities even when they commit new
crimes and violate the terms of their postrelease
community supervision, like the gang member charged
with the murder of Whittier Police Offcer Keith Boyer.
(6)Californians need better protection from such
violent criminals.
(7)Californians need better protection from felons
who repeatedly violate the terms of their postrelease
community supervision.
(8)This measure reforms the law so felons who
violate the terms of their release can be brought back
to court and held accountable for such violations.
(9)Californians need better protection from such
violent criminals. This measure reforms the law to
defne such crimes as “violent felonies” for purposes
of early release.
(10)Nothing in this act is intended to create
additional “strike” offenses, which would increase the
state prison population.
(11)Nothing in this act is intended to affect the
ability of the California Department of Corrections and
Rehabilitation to award educational and merit credits.
(b)Restore Accountability for Serial Theft and
Organized Theft Rings.
(1)Recent changes to California law allow individuals
who steal repeatedly to face few consequences,
regardless of their criminal record or how many times
they steal.
(2)As a result, between 2014 and 2016, California
had the second highest increase in theft and property
crimes in the United States while most states have
seen a steady decline. According to the California
Department of Justice, the value of property stolen in
2015 was $2.5 billion with an increase of 13 percent
since 2014, the largest single-year increase in at least
10 years.
(3)Individuals who repeatedly steal often do so to
support their drug habit. Recent changes to California
law have reduced judges’ ability to order individuals
convicted of repeated theft crimes into effective drug
treatment programs.
(4)California needs stronger laws for those who are
repeatedly convicted of theft related crimes, which
will encourage those who repeatedly steal to support
their drug problem to enter into existing drug
treatment programs. This measure enacts such
reforms.
(c)Restore DNA Collection to Solve Violent Crime.
(1)Collecting DNA from criminals is essential to
solving violent crimes. Over 450 violent crimes,
including murder, rape, and robbery, have gone
Text of Proposed Laws | 15
20
TEXT OF PROPOSED LAWS PROPOSITION 20 CONTINUED
unsolved because DNA is being collected from fewer
criminals.
(2) DNA collected in 2015 from a convicted child
molester solved the rape-murders of two six-year-old boys, which occurred three decades ago in Los
Angeles County. DNA collected in 2016 from an individual caught driving a stolen car solved the 2012
San Francisco Bay Area rape-murder of an 83-year-old woman.
(3) Recent changes to California law unintentionally eliminated DNA collection for theft and drug crimes.
This measure restores DNA collection from persons convicted for such offenses.
(4) Permitting collection of more DNA samples will help identify suspects, clear the innocent, and free
the wrongly convicted.
(5) This measure does not affect existing legal
safeguards that protect the privacy of individuals by allowing for the removal of their DNA profle if they
are not charged with a crime, are acquitted, or are found innocent.
SEC. 4. Parole Consideration.
SEC. 4.1. Section 3003 of the Penal Code is
amended to read:
3003. (a) Except as otherwise provided in this
section, an inmate who is released on parole or postrelease community supervision as provided by
Title 2.05 (commencing with Section 3450) shall be returned to the county that was the last legal residence
of the inmate prior to the inmate’s incarceration. An inmate who is released on parole or postrelease
community supervision as provided by Title 2.05 (commencing with Section 3450) and who was
committed to prison for a sex offense for which registration is required pursuant to Section 290, shall,
through all efforts reasonably possible, be returned to the city that was the last legal residence of the inmate
prior to incarceration or a close geographic location in which the inmate has family, social ties, or economic
ties and access to reentry services, unless return to that location would violate any other law or pose a risk
to the inmate’s victim. For purposes of this subdivision, “last legal residence” shall not be
construed to mean the county or city wherein the inmate committed an offense while confned in a state
prison or local jail facility or while confned for treatment in a state hospital.
20
(b) Notwithstanding subdivision (a), an inmate may be returned to another county or city if that would be
in the best interests of the public. If the Board of Parole Hearings setting the conditions of parole for
inmates sentenced pursuant to subdivision (b) of Section 1168, as determined by the parole
consideration panel, or the Department of Corrections and Rehabilitation setting the conditions of parole for
inmates sentenced pursuant to Section 1170, decides on a return to another county or city, it shall place its
16 | Text of Proposed Laws
reasons in writing in the parolee’s permanent record
and include these reasons in the notice to the sheriff
or chief of police pursuant to Section 3058.6. In
making its decision, the paroling authority shall
consider, among others, the following factors, giving
the greatest weight to the protection of the victim and
the safety of the community:
(1) The need to protect the life or safety of a victim,
the parolee, a witness, or any other person.
(2) Public concern that would reduce the chance that
the inmate’s parole would be successfully completed.
(3) The verifed existence of a work offer, or an
educational or vocational training program.
(4) The existence of family in another county with
whom the inmate has maintained strong ties and
whose support would increase the chance that the
inmate’s parole would be successfully completed.
(5) The lack of necessary outpatient treatment
programs for parolees receiving treatment pursuant to
Section 2960.
(c) The Department of Corrections and Rehabilitation,
in determining an out-of-county commitment, shall
give priority to the safety of the community and any
witnesses and victims.
(d) In making its decision about an inmate
who participated in a joint venture program pursuant
to Article 1.5 (commencing with Section 2717.1) of
Chapter 5, the paroling authority shall give serious
consideration to releasing the inmate to the county
where the joint venture program employer is located if
that employer states to the paroling authority that the
employer intends to employ the inmate upon release.
(e) (1) The following information, if available, shall
be released by the Department of Corrections and
Rehabilitation to local law enforcement agencies
regarding a paroled inmate or inmate placed on
postrelease community supervision pursuant to Title
2.05 (commencing with Section 3450) who is
released in their jurisdictions:
(A) Last, frst, and middle names.
(B) Birth date.
(C) Sex, race, height, weight, and hair and eye color.
(D) Date of parole or placement on postrelease
community supervision and discharge.
(E) Registration status, if the inmate is required to
register as a result of a controlled substance, sex, or
arson offense.
(F) California Criminal Information Number, FBI
number, social security number, and driver’s license
number.
(G) County of commitment.
(H) A description of scars, marks, and tattoos on the
inmate.
TEXT OF PROPOSED LAWS PROPOSITION 20 CONTINUED
(I) Offense or offenses for which the inmate was
convicted that resulted in parole or postrelease
community supervision in this instance.
(J) Address, including all of the following information:
(i) Street name and number. Post offce box numbers
are not acceptable for purposes of this subparagraph.
(ii) City and ZIP Code.
(iii) Date that the address provided pursuant to this
subparagraph was proposed to be effective.
(K) Contact offcer and unit, including all of the
following information:
(i) Name and telephone number of each contact
offcer.
(ii) Contact unit type of each contact offcer such as
units responsible for parole, registration, or county
probation.
(L) A digitized image of the photograph and at least a
single digit fngerprint of the parolee.
(M) A geographic coordinate for the inmate’s
residence location for use with a Geographical
Information System (GIS) or comparable computer
program.
(N) Copies of the record of supervision during any
prior period of parole.
(2) Unless the information is unavailable, the Department of Corrections and Rehabilitation shall
electronically transmit to the county agency identifed
in subdivision (a) of Section 3451 the inmate’s
tuberculosis status, specifc medical, mental health,
and outpatient clinic needs, and any medical concerns
or disabilities for the county to consider as the
offender transitions onto postrelease community
supervision pursuant to Section 3450, for the purpose
of identifying the medical and mental health needs of
the individual. All transmissions to the county agency
shall be in compliance with applicable provisions of
the federal Health Insurance Portability and
Accountability Act of 1996 (HIPAA) (Public Law 104-
191), the federal Health Information Technology for
Economic and Clinical Health Act (HITECH) (Public
Law 111-005), and the implementing of privacy and
security regulations in Parts 160 and 164 of Title 45
of the Code of Federal Regulations. This paragraph
shall not take effect until the Secretary of the United
States Department of Health and Human Services, or
the secretary’s designee, determines that this
provision is not preempted by HIPAA.
(3) Except for the information required by paragraph
(2), the information required by this subdivision shall
come from the statewide parolee database. The information obtained from each source shall be based
on the same timeframe.
(4) All of the information required by this subdivision
shall be provided utilizing a computer-to-computer
transfer in a format usable by a desktop computer
system. The transfer of this information shall be
continually available to local law enforcement
agencies upon request.
(5) The unauthorized release or receipt of the
information described in this subdivision is a violation
of Section 11143.
(f) Notwithstanding any other law, if the victim or
witness has requested additional distance in the
placement of the inmate on parole, and if the Board
of Parole Hearings or the Department of Corrections
and Rehabilitation fnds that there is a need to protect
the life, safety, or well-being of the victim or witness,
an inmate who is released on parole shall not be
returned to a location within 35 miles of the actual
residence of a victim of, or a witness to, any of the
following crimes:
(1) A violent felony as defned in paragraphs (1) to
(7), inclusive, and paragraphs (11) and (16) of
subdivision (c) of Section 667.5 or subdivision (a) of
Section 3040.1.
(2) A felony in which the defendant inficts great
bodily injury on a person, other than an accomplice,
that has been charged and proved as provided for in
Section 12022.53, 12022.7, or 12022.9.
(3) A violation of paragraph (1), (3), or (4) of
subdivision (a) of Section 261, subdivision (f), (g), or
(i) of Section 286, subdivision (f), (g), or (i) of Section
287 or of former Section 288a, or subdivision (b), (d),
or (e) of Section 289.
(g) Notwithstanding any other law, an inmate who is
released on parole for a violation of Section 288 or
288.5 whom the Department of Corrections and
Rehabilitation determines poses a high risk to the
public shall not be placed or reside, for the duration
of the inmate’s parole, within one-half mile of a public
or private school including any or all of kindergarten
and grades 1 to 12, inclusive.
20
(h) Notwithstanding any other law, an inmate who is
released on parole or postrelease community
supervision for a stalking offense shall not be returned
to a location within 35 miles of the victim’s or witness’
actual residence or place of employment if the victim
or witness has requested additional distance in the
placement of the inmate on parole or postrelease
community supervision, and if the Board of Parole
Hearings or the Department of Corrections and
Rehabilitation, or the supervising county agency, as
applicable, fnds that there is a need to protect the
life, safety, or well-being of the victim. If an inmate
who is released on postrelease community supervision
cannot be placed in the inmate’s county of last legal
residence in compliance with this subdivision, the
supervising county agency may transfer the inmate to
another county upon approval of the receiving county.
(i) The authority shall give consideration to the
equitable distribution of parolees and the proportion
of out-of-county commitments from a county
Text of Proposed Laws | 17
TEXT OF PROPOSED LAWS PROPOSITION 20 CONTINUED
compared to the number of commitments from that
county when making parole decisions.
(j) An inmate may be paroled to another state
pursuant to any other law. The Department of
Corrections and Rehabilitation shall coordinate with
local entities regarding the placement of inmates
placed out of state on postrelease community
supervision pursuant to Title 2.05 (commencing with
Section 3450).
(k) (1) Except as provided in paragraph (2), the
Department of Corrections and Rehabilitation shall be
the agency primarily responsible for, and shall have
control over, the program, resources, and staff
implementing the Law Enforcement Automated Data
System (LEADS) in conformance with subdivision (e).
County agencies supervising inmates released to
postrelease community supervision pursuant to Title
2.05 (commencing with Section 3450) shall provide
any information requested by the department to
ensure the availability of accurate information
regarding inmates released from state prison. This
information may include all records of supervision, the
issuance of warrants, revocations, or the termination
of postrelease community supervision. On or before
August 1, 2011, county agencies designated to
supervise inmates released to postrelease community
supervision shall notify the department that the
county agencies have been designated as the local
entity responsible for providing that supervision.
20 (2) Notwithstanding paragraph (1), the Department of
Justice shall be the agency primarily responsible for
the proper release of information under LEADS that
relates to fngerprint cards.
(l) In addition to the requirements under subdivision
(k), the Department of Corrections and Rehabilitation
shall submit to the Department of Justice data to be
included in the supervised release fle of the California
Law Enforcement Telecommunications System
(CLETS) so that law enforcement can be advised
through CLETS of all persons on postrelease
community supervision and the county agency
designated to provide supervision. The data required
by this subdivision shall be provided via electronic
transfer.
SEC. 4.2. Section 3040.1 is added to the Penal
Code, to read:
3040.1 (a) For purposes of early release or parole
consideration under the authority of Section 32 of
Article I of the Constitution, Sections 12838.4 and
12838.5 of the Government Code, Sections 3000.1,
3041.5, 3041.7, 3052, 5000, 5054, 5055, 5076.2
of the Penal Code and the rulemaking authority
granted by Section 5058 of the Penal Code, the
following shall be defned as “violent felony offenses”:
(1) Murder or voluntary manslaughter.
(2) Mayhem.
18 | Text of Proposed Laws
(3) Rape, as defned in paragraph (2) or (6) of
subdivision (a) of Section 261 or paragraph (1) or (4)
of subdivision (a) of Section 262.
(4) Sodomy, as defned in subdivision (c) or (d) of
Section 286.
(5) Oral copulation, as defned in subdivision (c) or
(d) of Section 287.
(6) Lewd or lascivious act, as defned in subdivision
(a) or (b) of Section 288.
(7) Any felony punishable by death or imprisonment
in the state prison for life.
(8) Any felony in which the defendant inficts great
bodily injury on any person other than an accomplice
which has been charged and proved as provided for in
Section 12022.7, 12022.8, or 12022.9 on or after
July 1, 1977, or as specifed prior to July 1, 1977, in
Sections 213, 264, and 461, or any felony in which
the defendant uses a frearm which use has been
charged and proved as provided in subdivision (a) of
Section 12022.3, or Section 12022.5 or 12022.55.
(9) Any robbery.
(10) Arson, in violation of subdivision (a) or (b) of
Section 451.
(11) Sexual penetration, as defned in subdivision (a)
or (j) of Section 289.
(12) Attempted murder.
(13) A violation of Section 18745, 18750, or 18755.
(14) Kidnapping.
(15) Assault with the intent to commit a specifed
felony, in violation of Section 220.
(16) Continuous sexual abuse of a child, in violation
of Section 288.5.
(17) Carjacking, as defned in subdivision (a) of
Section 215.
(18) Rape, spousal rape, or sexual penetration, in
concert, in violation of Section 264.1.
(19) Extortion, as defned in Section 518, which
would constitute a felony violation of Section 186.22.
(20) Threats to victims or witnesses, as defned in
subdivision (c) of Section 136.1.
(21) Any burglary of the frst degree, as defned in
subdivision (a) of Section 460, wherein it is charged
and proved that another person, other than an accomplice, was present in the residence during the
commission of the burglary.
(22) Any violation of Section 12022.53.
(23) A violation of subdivision (b) or (c) of Section
11418.
(24) Solicitation to commit murder.
(25) Felony assault with a frearm, in violation of
paragraph (2) of subdivision (a) and subdivision (b) of
Section 245.
TEXT OF PROPOSED LAWS PROPOSITION 20 CONTINUED
(26) Felony assault with a deadly weapon, in violation
of paragraph (1) of subdivision (a) of Section 245.
(27) Felony assault with a deadly weapon upon the
person of a peace offcer or frefghter, in violation of
subdivisions (c) and (d) of Section 245.
(28) Felony assault by means of force likely to
produce great bodily injury, in violation of paragraph
(4) of subdivision (a) of Section 245.
(29) Assault with caustic chemicals, in violation of
Section 244.
(30) False imprisonment, in violation of Section
210.5.
(31) Felony discharging a frearm, in violation of
Section 246.
(32) Discharge of a frearm from a motor vehicle, in
violation of subdivision (c) of Section 26100.
(33) Felony domestic violence resulting in a traumatic
condition, in violation of Section 273.5.
(34) Felony use of force or threats against a witness
or victim of a crime, in violation of Section 140.
(35) Felony resisting a peace offcer and causing
death or serious injury, in violation of Section 148.10.
(36) Felony hate crime punishable pursuant to
Section 422.7.
(37) Felony elder or dependent adult abuse, in
violation of subdivision (b) of Section 368.
(38) Rape, in violation of paragraph (1), (3), or (4) of
subdivision (a) of Section 261.
(39) Rape, in violation of Section 262.
(40) Sexual penetration, in violation of subdivision
(b), (d), or (e) of Section 289.
(41) Sodomy, in violation of subdivision (f), (g), or (i)
of Section 286.
(42) Oral copulation, in violation of subdivision (f),
(g), or (i) of Section 287.
(43) Abduction of a minor for purposes of prostitution,
in violation of Section 267.
(44) Human traffcking, in violation of subdivision (a),
(b), or (c) of Section 236.1.
(45) Child abuse, in violation of Section 273ab.
(46) Possessing, exploding, or igniting a destructive
device, in violation of Section 18740.
(47) Two or more violations of subdivision (c) of
Section 451.
(48) Any attempt to commit an offense described in
this subdivision.
(49) Any felony in which it is pled and proven that
the defendant personally used a dangerous or deadly
weapon.
(50) Any offense resulting in lifetime sex offender
registration pursuant to Sections 290 to 290.009,
inclusive.
(51) Any conspiracy to commit an offense described
in this section.
(b) The provisions of this section shall apply to any inmate serving a custodial prison sentence on or after
the effective date of this section, regardless of when the sentence was imposed.
SEC. 4.3. Section 3040.2 is added to the Penal
Code, to read:
3040.2. (a) Upon conducting a nonviolent offender
parole consideration review, the hearing offcer for the
Board of Parole Hearings shall consider all relevant,
reliable information about the inmate.
(b) The standard of review shall be whether the
inmate will pose an unreasonable risk of creating
victims as a result of felonious conduct if released
from prison.
(c) In reaching this determination, the hearing offcer
shall consider the following factors:
(1) Circumstances surrounding the current conviction.
(2) The inmate’s criminal history, including involvement in other criminal conduct, both juvenile
and adult, which is reliably documented.
(3) The inmate’s institutional behavior, including both
rehabilitative programming and institutional
misconduct.
(4) Any input from the inmate, any victim, whether
registered or not at the time of the referral, and the
prosecuting agency or agencies.
(5) The inmate’s past and present mental condition
as documented in records in the possession of the
Department of Corrections and Rehabilitation.
(6) The inmate’s past and present attitude about the
crime.
(7) Any other information which bears on the inmate’s
suitability for release.
(d) The following circumstances shall be considered
by the hearing offcer in determining whether the inmate is unsuitable for release:
(1) Multiple victims involved in the current commitment offense.
(2) A victim was particularly vulnerable due to age or
physical or mental condition.
(3) The inmate took advantage of a position of trust in
the commission of the crime.
(4) The inmate was armed with or used a frearm or
other deadly weapon in the commission of the crime.
(5) A victim suffered great bodily injury during the
commission of the crime.
(6) The inmate committed the crime in association
with a criminal street gang.
20
Text of Proposed Laws | 19
TEXT OF PROPOSED LAWS PROPOSITION 20 CONTINUED
(7) The inmate occupied a position of leadership or
dominance over other participants in the commission
of the crime or the inmate induced others to
participate in the commission of the crime.
(8) During the commission of the crime, the inmate
had a clear opportunity to cease but instead
continued.
(9) The inmate has engaged in other reliably
documented criminal conduct which was an integral
part of the crime for which the inmate is currently
committed to prison.
(10) The manner in which the crime was committed
created a potential for serious injury to persons other
than the victim of the crime.
(11) The inmate was on probation, parole, postrelease
community supervision, or mandatory supervision or
was in custody or had escaped from custody at the
time of the commitment offense.
(12) The inmate was on any form of pre- or post-
conviction release at the time of the commitment
offense.
(13) The inmate’s prior history of violence, whether as
a juvenile or adult.
(14) The inmate has engaged in misconduct in prison
or jail.
(15) The inmate is incarcerated for multiple cases
from the same or different counties or jurisdictions.
20 (e) The following circumstances shall be considered
by the hearing offcer in determining whether the
inmate is suitable for release:
(1) The inmate does not have a juvenile record of
assaulting others or committing crimes with a
potential of harm to victims.
(2) The inmate lacks any history of violent crime.
(3) The inmate has demonstrated remorse.
(4) The inmate’s present age reduces the risk of
recidivism.
(5) The inmate has made realistic plans if released or
has developed marketable skills that can be put to use
upon release.
(6) The inmate’s institutional activities demonstrate
an enhanced ability to function within the law upon
release.
(7) The inmate participated in the crime under
partially excusable circumstances which do not
amount to a legal defense.
(8) The inmate had no apparent predisposition to
commit the crime but was induced by others to
participate in its commission.
(9) The inmate has a minimal or no criminal history.
(10) The inmate was a passive participant or played a
minor role in the commission of the crime.
20 | Text of Proposed Laws
(11) The crime was committed during or due to an
unusual situation unlikely to reoccur.
SEC. 4.4. Section 3040.3 is added to the Penal
Code, to read:
3040.3. (a) An inmate whose current commitment
includes a concurrent, consecutive, or stayed sentence
for an offense or allegation defned as violent by
subdivision (c) of Section 667.5 or Section 3040.1
shall be deemed a violent offender for purposes of
Section 32 of Article I of the Constitution.
(b) An inmate whose current commitment includes an
indeterminate sentence shall be deemed a violent
offender for purposes of Section 32 of Article I of the
Constitution.
(c) An inmate whose current commitment includes
any enhancement which makes the underlying offense
violent pursuant to subdivision (c) of Section 667.5
shall be deemed a violent offender for purposes of
Section 32 of Article I of the Constitution.
(d) For purposes of Section 32 of Article I of the
Constitution, the “full term” of the “primary offense”
shall be calculated based only on actual days served
on the commitment offense.
SEC. 4.5. Section 3040.4 is added to the Penal
Code, to read:
3040.4. Pursuant to subdivision (b) of Section 28 of
Article I of the Constitution, the department shall give
reasonable notice to victims of crime prior to an
inmate being reviewed for early parole and release.
The department shall provide victims with the right to
be heard regarding early parole consideration and to
participate in the review process. The department
shall consider the safety of the victims, the victims’
family, and the general public when making a
determination on early release.
(a) Prior to conducting a review for early parole, the
department shall provide notice to the prosecuting
agency or agencies and to registered victims, and
shall make reasonable efforts to locate and notify
victims who are not registered.
(b) The prosecuting agency shall have the right to
review all information available to the hearing offcer,
including, but not limited to, the inmate’s central fle,
documented adult and juvenile criminal history,
institutional behavior, including both rehabilitative
programming and institutional misconduct, any input
from any person or organization advocating on behalf
of the inmate, and any information submitted by the
public.
(c) A victim shall have a right to submit a statement
for purposes of early parole consideration, including a
confdential statement.
(d) All prosecuting agencies, any involved law
enforcement agency, and all victims, whether or not
registered, shall have the right to respond to the board
in writing.
TEXT OF PROPOSED LAWS PROPOSITION 20 CONTINUED
(e) Responses to the board by prosecuting agencies,
law enforcement agencies, and victims must be made
within 90 days of the date of notifcation of the
inmate’s eligibility for early parole review or
consideration.
(f) The board shall notify the prosecuting agencies,
law enforcement agencies, and the victims of the
nonviolent offender parole decision within 10 days of
the decision being made.
(g) Within 30 days of the notice of the fnal decision
concerning nonviolent offender parole consideration,
the inmate and the prosecuting agencies may request
review of the decision.
(h) If an inmate is denied early release under the
nonviolent offender parole provisions of Section 32 of
Article I of the Constitution, the inmate shall not be
eligible for early nonviolent offender parole
consideration for two calendar years from the date of
the fnal decision of the previous denial.
SEC. 4.6. Section 3041 of the Penal Code is
amended to read:
3041. (a) (1) In the case of any inmate sentenced
pursuant to any law, other than Chapter 4.5
(commencing with Section 1170) of Title 7 of Part 2,
the Board of Parole Hearings shall meet with each
inmate during the sixth year before the inmate’s
minimum eligible parole date for the purposes of
reviewing and documenting the inmate’s activities and
conduct pertinent to parole eligibility. During this
consultation, the board shall provide the inmate
information about the parole hearing process, legal
factors relevant to his or her suitability or unsuitability
for parole, and individualized recommendations for
the inmate regarding his or her work assignments,
rehabilitative programs, and institutional behavior.
Within 30 days following the consultation, the board
shall issue its positive and negative fndings and
recommendations to the inmate in writing.
(2) One year before the inmate’s minimum eligible
parole date a panel of two or more commissioners or
deputy commissioners shall again meet with the
inmate and shall normally grant parole as provided in
Section 3041.5. No more than one member of the
panel shall be a deputy commissioner.
(3) In the event of a tie vote, the matter shall be
referred for an en banc review of the record that was
before the panel that rendered the tie vote. Upon en
banc review, the board shall vote to either grant or
deny parole and render a statement of decision. The
en banc review shall be conducted pursuant to
subdivision (e).
(4) Upon a grant of parole, the inmate shall be
released subject to all applicable review periods.
However, an inmate shall not be released before
reaching his or her minimum eligible parole date as
set pursuant to Section 3046 unless the inmate is
eligible for earlier release pursuant to his or her youth
offender parole eligibility date or elderly parole eligible
eligibility date.
(5) At least one commissioner of the panel shall have
been present at the last preceding meeting, unless it
is not feasible to do so or where the last preceding
meeting was the initial meeting. Any person on the
hearing panel may request review of any decision
regarding parole for an en banc hearing by the board.
In case of a review, a majority vote in favor of parole
by the board members participating in an en banc
review is required to grant parole to any inmate.
(b) (1) The panel or the board, sitting en banc, shall
grant parole to an inmate unless it determines that
the gravity of the current convicted offense or
offenses, or the timing and gravity of current or past
convicted offense or offenses, is such that
consideration of the public safety requires a more
lengthy period of incarceration for this individual. The
panel or the board, sitting en banc, shall consider the
entire criminal history of the inmate, including all
current or past convicted offenses, in making this
determination.
(2) After July 30, 2001, any decision of the parole
panel fnding an inmate suitable for parole shall
become fnal within 120 days of the date of the
hearing. During that period, the board may review the
panel’s decision. The panel’s decision shall become
fnal pursuant to this subdivision unless the board
fnds that the panel made an error of law, or that the
panel’s decision was based on an error of fact, or that
new information should be presented to the board,
any of which when corrected or considered by the
board has a substantial likelihood of resulting in a
substantially different decision upon a rehearing. In
making this determination, the board shall consult
with the commissioners who conducted the parole
consideration hearing.
20
(3) A decision of a panel shall not be disapproved and
referred for rehearing except by a majority vote of the
board, sitting en banc, following a public meeting.
(c) For the purpose of reviewing the suitability for
parole of those inmates eligible for parole under prior
law at a date earlier than that calculated under
Section 1170.2, the board shall appoint panels of at
least two persons to meet annually with each inmate
until the time the person is released pursuant to
proceedings or reaches the expiration of his or her
term as calculated under Section 1170.2.
(d) It is the intent of the Legislature that, during
times when there is no backlog of inmates awaiting
parole hearings, life parole consideration hearings, or
life rescission hearings, hearings will be conducted by
a panel of three or more members, the majority of
whom shall be commissioners. The board shall report
monthly on the number of cases where an inmate has
not received a completed initial or subsequent parole
consideration hearing within 30 days of the hearing
Text of Proposed Laws | 21
TEXT OF PROPOSED LAWS PROPOSITION 20 CONTINUED
date required by subdivision (a) of Section 3041.5 or
paragraph (2) of subdivision (b) of Section 3041.5,
unless the inmate has waived the right to those
timeframes. That report shall be considered the
backlog of cases for purposes of this section, and
shall include information on the progress toward
eliminating the backlog, and on the number of
inmates who have waived their right to the above
timeframes. The report shall be made public at a
regularly scheduled meeting of the board and a written
report shall be made available to the public and
transmitted to the Legislature quarterly.
(e) For purposes of this section, an en banc review by
the board means a review conducted by a majority of
commissioners holding offce on the date the matter is
heard by the board. An en banc review shall be
conducted in compliance with the following:
(1) The commissioners conducting the review shall
consider the entire record of the hearing that resulted
in the tie vote.
(2) The review shall be limited to the record of the
hearing. The record shall consist of the transcript or
audiotape of the hearing, written or electronically
recorded statements actually considered by the panel
that produced the tie vote, and any other material
actually considered by the panel. New evidence or
comments shall not be considered in the en banc
proceeding.
20
(3) The board shall separately state reasons for its
decision to grant or deny parole.
(4) A commissioner who was involved in the tie vote
shall be recused from consideration of the matter in
the en banc review.
SEC. 4.7. Section 3454 of the Penal Code is
amended to read:
3454. (a) Each supervising county agency, as
established by the county board of supervisors
pursuant to subdivision (a) of Section 3451, shall
establish a review process for assessing and refning a
person’s program of postrelease supervision. Any
additional postrelease supervision conditions shall be
reasonably related to the underlying offense for which
the offender spent time in prison, or to the offender’s
risk of recidivism, and the offender’s criminal history,
and be otherwise consistent with law.
(b) Each county agency responsible for postrelease
supervision, as established by the county board of
supervisors pursuant to subdivision (a) of Section
3451, may determine additional appropriate
conditions of supervision listed in Section 3453
consistent with public safety, including the use of
continuous electronic monitoring as defned in
Section 1210.7, order the provision of appropriate
rehabilitation and treatment services, determine
appropriate incentives, and determine and order
appropriate responses to alleged violations, which can
include, but shall not be limited to, immediate,
22 | Text of Proposed Laws
structured, and intermediate sanctions up to and
including referral to a reentry court pursuant to
Section 3015, or fash incarceration in a city or
county jail. Periods of fash incarceration are
encouraged as one method of punishment for
violations of an offender’s condition of postrelease
supervision.
(c) As used in this title, “fash incarceration” is a
period of detention in a city or county jail due to a
violation of an offender’s conditions of postrelease
supervision. The length of the detention period can
range between one and 10 consecutive days. Flash
incarceration is a tool that may be used by each
county agency responsible for postrelease supervision.
Shorter, but if necessary more frequent, periods of
detention for violations of an offender’s postrelease
supervision conditions shall appropriately punish an
offender while preventing the disruption in a work or
home establishment that typically arises from longer
term revocations.
(d) Upon a decision to impose a period of fash
incarceration, the probation department shall notify
the court, public defender, district attorney, and
sheriff of each imposition of fash incarceration.
SEC. 4.8. Section 3455 of the Penal Code is
amended to read:
3455. (a) If the supervising county agency has
determined, following application of its assessment
processes, that intermediate sanctions as authorized
in subdivision (b) of Section 3454 are not appropriate,
or if the supervised person has violated the terms of
the supervised person’s release for a third time, the
supervising county agency shall petition the court
pursuant to Section 1203.2 to revoke, modify, or
terminate postrelease community supervision. At any
point during the process initiated pursuant to this
section, a person may waive, in writing, his or her
right to counsel, admit the violation of his or her
postrelease community supervision, waive a court
hearing, and accept the proposed modifcation of his
or her postrelease community supervision. The
petition shall include a written report that contains
additional information regarding the petition,
including the relevant terms and conditions of
postrelease community supervision, the circumstances
of the alleged underlying violation, the history and
background of the violator, and any recommendations.
The Judicial Council shall adopt forms and rules of
court to establish uniform statewide procedures to
implement this subdivision, including the minimum
contents of supervision agency reports. Upon a fnding
that the person has violated the conditions of
postrelease community supervision, the revocation
hearing offcer shall have authority to do all of the
following:
(1) Return the person to postrelease community
supervision with modifcations of conditions, if
TEXT OF PROPOSED LAWS PROPOSITION 20 CONTINUED
appropriate, including a period of incarceration in a
county jail.
(2) Revoke and terminate postrelease community
supervision and order the person to confnement in a
county jail.
(3) Refer the person to a reentry court pursuant to
Section 3015 or other evidence-based program in the
court’s discretion.
(b) (1) At any time during the period of postrelease
community supervision, if a peace offcer, including a
probation offcer, has probable cause to believe a
person subject to postrelease community supervision
is violating any term or condition of his or her release,
or has failed to appear at a hearing pursuant to
Section 1203.2 to revoke, modify, or terminate
postrelease community supervision, the offcer may,
without a warrant or other process, arrest the person
and bring him or her before the supervising county
agency established by the county board of supervisors
pursuant to subdivision (a) of Section 3451.
Additionally, an offcer employed by the supervising
county agency may seek a warrant and a court or its
designated hearing offcer appointed pursuant to
Section 71622.5 of the Government Code shall have
the authority to issue a warrant for that person’s
arrest.
(2) The court or its designated hearing offcer shall
have the authority to issue a warrant for a person who
is the subject of a petition fled under this section who
has failed to appear for a hearing on the petition or for
any reason in the interests of justice, or to remand to
custody a person who does appear at a hearing on the
petition for any reason in the interests of justice.
(3) Unless a person subject to postrelease community
supervision is otherwise serving a period of fash
incarceration, whenever a person who is subject to
this section is arrested, with or without a warrant or
the fling of a petition for revocation, the court may
order the release of the person under supervision from
custody under any terms and conditions the court
deems appropriate.
(c) The revocation hearing shall be held within a
reasonable time after the fling of the revocation
petition. Except as provided in paragraph (3) of
subdivision (b), based upon a showing of a
preponderance of the evidence that a person under
supervision poses an unreasonable risk to public
safety, or that the person may not appear if released
from custody, or for any reason in the interests of
justice, the supervising county agency shall have the
authority to make a determination whether the person
should remain in custody pending the frst court
appearance on a petition to revoke postrelease
community supervision, and upon that determination,
may order the person confned pending his or her frst
court appearance.
(d) Confnement pursuant to paragraphs (1) and (2) of
subdivision (a) shall not exceed a period of 180 days
in a county jail for each custodial sanction.
(e) A person shall not remain under supervision or in
custody pursuant to this title on or after three years
from the date of the person’s initial entry onto
postrelease community supervision, except when his
or her supervision is tolled pursuant to Section
1203.2 or subdivision (b) of Section 3456.
SEC. 5. DNA Collection.
SEC. 5.1. Section 296 of the Penal Code is
amended to read:
296. (a) The following persons shall provide buccal
swab samples, right thumbprints, and a full palm
print impression of each hand, and any blood
specimens or other biological samples required
pursuant to this chapter for law enforcement
identifcation analysis:
(1) Any person, including any juvenile, who is
convicted of or pleads guilty or no contest to any
felony offense, or is found not guilty by reason of
insanity of any felony offense, or any juvenile who is
adjudicated under Section 602 of the Welfare and
Institutions Code for committing any felony offense.
(2) Any adult person who is arrested for or charged
with any of the following felony offenses:
(A) Any felony offense specifed in Section 290 or
attempt to commit any felony offense described in
Section 290, or any felony offense that imposes upon
a person the duty to register in California as a sex
offender under Section 290.
(B) Murder or voluntary manslaughter or any attempt
to commit murder or voluntary manslaughter.
(C) Commencing on January 1 of the ffth year
following enactment of the act that added this
subparagraph, as amended, 1, 2009, any adult person
arrested or charged with any felony offense.
(3) Any person, including any juvenile, who is
required to register under Section 290 to 290.009,
inclusive, or Section 457.1 because of the
commission of, or the attempt to commit, a felony or
misdemeanor offense, or any person, including any
juvenile, who is housed in a mental health facility or
sex offender treatment program after referral to such
facility or program by a court after being charged with
any felony offense.
(4) Any person, excluding a juvenile, who is convicted
of, or pleads guilty or no contest to, any of the
following offenses:
(A) A misdemeanor violation of Section 459.5.
(B) A violation of subdivision (a) of Section 473 that
is punishable as a misdemeanor pursuant to
subdivision (b) of Section 473.
20
Text of Proposed Laws | 23
TEXT OF PROPOSED LAWS PROPOSITION 20 CONTINUED
(C) A violation of subdivision (a) of Section 476a that
is punishable as a misdemeanor pursuant to
subdivision (b) of Section 476a.
(D) A violation of Section 487 that is punishable as a
misdemeanor pursuant to Section 490.2.
(E) A violation of Section 496 that is punishable as a
misdemeanor.
(F) A misdemeanor violation of subdivision (a) of
Section 11350 of the Health and Safety Code.
(G) A misdemeanor violation of subdivision (a) of
Section 11377 of the Health and Safety Code.
(H) A misdemeanor violation of paragraph (1) of
subdivision (e) of Section 243.
(I) A misdemeanor violation of Section 273.5.
(J) A misdemeanor violation of paragraph (1) of
subdivision (b) of Section 368.
(K) Any misdemeanor violation where the victim is
defned as set forth in Section 6211 of the Family
Code.
(L) A misdemeanor violation of paragraph (3) of
subdivision (b) of Section 647.
(4) (5) The term “felony” as used in this subdivision
includes an attempt to commit the offense.
(5) (6) Nothing in this chapter shall be construed as
prohibiting collection and analysis of specimens,
samples, or print impressions as a condition of a plea
for a non-qualifying offense. 20 (b) The provisions of this chapter and its requirements
for submission of specimens, samples and print
impressions as soon as administratively practicable
shall apply to all qualifying persons regardless of
sentence imposed, including any sentence of death,
life without the possibility of parole, or any life or
indeterminate term, or any other disposition rendered
in the case of an adult or juvenile tried as an adult, or
whether the person is diverted, fned, or referred for
evaluation, and regardless of disposition rendered or
placement made in the case of a juvenile who is found
to have committed any felony offense or is adjudicated
under Section 602 of the Welfare and Institutions
Code.
(c) The provisions of this chapter and its requirements
for submission of specimens, samples, and print
impressions as soon as administratively practicable by
qualifed persons as described in subdivision (a) shall
apply regardless of placement or confnement in any
mental hospital or other public or private treatment
facility, and shall include, but not be limited to, the
following persons, including juveniles:
(1) Any person committed to a state hospital or other
treatment facility as a mentally disordered sex
offender under Article 1 (commencing with Section
6300) of Chapter 2 of Part 2 of Division 6 of the
Welfare and Institutions Code.
24 | Text of Proposed Laws
(2) Any person who has a severe mental disorder as
set forth within the provisions of Article 4
(commencing with Section 2960) of Chapter 7 of Title
1 of Part 3 of the Penal Code.
(3) Any person found to be a sexually violent predator
pursuant to Article 4 (commencing with Section
6600) of Chapter 2 of Part 2 of Division 6 of the
Welfare and Institutions Code.
(d) The provisions of this chapter are mandatory and
apply whether or not the court advises a person,
including any juvenile, that he or she must provide the
data bank and database specimens, samples, and
print impressions as a condition of probation, parole,
or any plea of guilty, no contest, or not guilty by reason
of insanity, or any admission to any of the offenses
described in subdivision (a).
(e) If at any stage of court proceedings the
prosecuting attorney determines that specimens,
samples, and print impressions required by this
chapter have not already been taken from any person,
as defned under subdivision (a) of Section 296, the
prosecuting attorney shall notify the court orally on
the record, or in writing, and request that the court
order collection of the specimens, samples, and print
impressions required by law. However, a failure by the
prosecuting attorney or any other law enforcement
agency to notify the court shall not relieve a person of
the obligation to provide specimens, samples, and
print impressions pursuant to this chapter.
(f) Prior to fnal disposition or sentencing in the case
the court shall inquire and verify that the specimens,
samples, and print impressions required by this
chapter have been obtained and that this fact is
included in the abstract of judgment or dispositional
order in the case of a juvenile. The abstract of
judgment issued by the court shall indicate that the
court has ordered the person to comply with the
requirements of this chapter and that the person shall
be included in the state’s DNA and Forensic
Identifcation Data Base and Data Bank program and
be subject to this chapter.
However, failure by the court to verify specimen,
sample, and print impression collection or enter these
facts in the abstract of judgment or dispositional order
in the case of a juvenile shall not invalidate an arrest,
plea, conviction, or disposition, or otherwise relieve a
person from the requirements of this chapter.
SEC. 6. Shoplifting.
SEC. 6.1. Section 459.5 of the Penal Code is
amended to read:
459.5. (a) Notwithstanding Section 459, shoplifting
is defned as entering a commercial establishment
with intent to commit larceny steal retail property or
merchandise while that establishment is open during
regular business hours, where the value of the property
that is taken or intended to be taken does not exceed
nine hundred ffty dollars ($950). Any other entry into
TEXT OF PROPOSED LAWS PROPOSITION 20 CONTINUED
a commercial establishment with intent to commit
larceny is burglary. Shoplifting shall be punished as a
misdemeanor, except that a person with one or more
prior convictions for an offense specifed in clause (iv)
of subparagraph (C) of paragraph (2) of subdivision (e)
of Section 667 or for an offense requiring registration
pursuant to subdivision (c) of Section 290 may be
punished pursuant to subdivision (h) of Section 1170.
(b) Any act of shoplifting as defned in subdivision (a)
shall be charged as shoplifting. No person who is
charged with shoplifting may also be charged with
burglary or theft of the same property.
(c) “Retail property or merchandise” means any
article, product, commodity, item, or component
intended to be sold in retail commerce.
(d) “Value” means the retail value of an item as
advertised by the affected retail establishment,
including applicable taxes.
(e) This section shall not apply to theft of a frearm,
forgery, the unlawful sale, transfer, or conveyance of
an access card pursuant to Section 484e, forgery of
an access card pursuant to Section 484f, the unlawful
use of an access card pursuant to Section 484g, theft
from an elder pursuant to subdivision (e) of Section
368, receiving stolen property, embezzlement, or
identity theft pursuant to Section 530.5, or the theft
or unauthorized use of a vehicle pursuant to Section
10851 of the Vehicle Code.
SEC. 6.2. Section 490.2 of the Penal Code is
amended to read:
490.2. (a) Notwithstanding Section 487 or any
other provision of law defning grand theft, obtaining
any property by theft where the value of the money,
labor, real or personal property taken does not exceed
nine hundred ffty dollars ($950) shall be considered
petty theft and shall be punished as a misdemeanor,
except that such person may instead be punished
pursuant to subdivision (h) of Section 1170 if that
person has one or more prior convictions for an
offense specifed in clause (iv) of subparagraph (C) of
paragraph (2) of subdivision (e) of Section 667 or for
an offense requiring registration pursuant to
subdivision (c) of Section 290.
(b) This section shall not be applicable to any theft
that may be charged as an infraction pursuant to any
other provision of law.
(c) This section shall not apply to theft of a frearm,
forgery, the unlawful sale, transfer, or conveyance of
an access card pursuant to Section 484e, forgery of
an access card pursuant to Section 484f, the unlawful
use of an access card pursuant to Section 484g, theft
from an elder pursuant to subdivision (e) of Section
368, receiving stolen property, embezzlement, or
identity theft pursuant to Section 530.5, or the theft
or unauthorized use of a vehicle pursuant to Section
10851 of the Vehicle Code.
SEC. 7. Serial Theft.
SEC. 7.1. Section 490.3 is added to the Penal
Code, to read:
490.3. (a) This section applies to the following crimes:
(1) Petty theft.
(2) Shoplifting.
(3) Grand theft.
(4) Burglary.
(5) Carjacking.
(6) Robbery.
(7) Crime against an elder or dependent adult within
the meaning of subdivision (d) or (e) of Section 368.
(8) Any violation of Section 496.
(9) Unlawful taking or driving of a vehicle within the
meaning of Section 10851 of the Vehicle Code.
(10) Forgery.
(11) Unlawful sale, transfer, or conveyance of an
access card pursuant to Section 484e.
(12) Forgery of an access card pursuant to Section
484f.
(13) Unlawful use of an access card pursuant to
Section 484g.
(14) Identity theft pursuant to Section 530.5.
(15) Theft or unauthorized use of a vehicle pursuant
to Section 10851 of the Vehicle Code.
(b) Notwithstanding paragraph (3) of subdivision (h)
of Section 1170, paragraphs (2) and (4) of subdivision
(a) of Section 1170.12, paragraphs (2) and (4) of
subdivision (c) of Section 667, any person who, having been previously convicted of two or more of the
offenses specifed in subdivision (a), which offenses were committed on separate occasions, and who is
subsequently convicted of petty theft or shoplifting
where the value of the money, labor, or real or personal
property taken exceeds two hundred ffty dollars
($250) shall be punished by imprisonment in the
county jail not exceeding one year, or imprisonment
pursuant to subdivision (h) of Section 1170.
(c) This section does not prohibit a person or persons
from being charged with any violation of law arising
out of the same criminal transaction that violates this
section.
SEC. 8. Organized Retail Theft.
SEC. 8.1. Section 490.4 is added to the Penal
Code, to read:
490.4. (a) “Retail property or merchandise” means
any article, product, commodity, item, or component
intended to be sold in retail commerce.
(b) “Value” means the retail value of an item as
advertised by the affected retail establishment,
including applicable taxes.
20
Text of Proposed Laws | 25
TEXT OF PROPOSED LAWS PROPOSITION 20 CONTINUED
(c) Any person, who, acting in concert with one or
more other persons, commits two or more thefts
pursuant to Section 459.5 or 490.2 of retail property
or merchandise having an aggregate value exceeding
two hundred ffty dollars ($250) and unlawfully takes
such property during a period of 180 days is guilty of
organized retail theft.
(d) Notwithstanding paragraph (3) of subdivision (h)
of Section 1170, paragraphs (2) and (4) of subdivision
(a) of Section 1170.12, paragraphs (2) and (4) of
subdivision (c) of Section 667, organized retail theft
shall be punished by imprisonment in the county jail
not exceeding one year, or imprisonment pursuant to
subdivision (h) of Section 1170.
(e) For purposes of this section, the value of retail
property stolen by persons acting in concert may be
aggregated into a single count or charge, with the sum
of the value of all of the retail merchandise being the
values considered in determining the degree of theft.
(f) An offense under this section may be prosecuted
in any county in which an underlying theft could have
been prosecuted as a separate offense.
(g) This section does not prohibit a person or persons
from being charged with any violation of law arising
out of the same criminal transaction that violates this
section.
SEC. 9. Amendments.
20
21
This act shall not be amended by the Legislature
except by a statute that furthers the purposes,
fndings, and declarations of the act and is passed in
each house by rollcall vote entered in the journal,
three-fourths of the membership of each house
concurring, or by a statute that becomes effective only
when approved by the voters.
SEC. 10. Severability.
If any provision of this act, or any part of any provision,
or its application to any person or circumstance is for
any reason held to be invalid or unconstitutional, the
remaining provisions and applications which can be
given effect without the invalid or unconstitutional
provision or application shall not be affected, but
shall remain in full force and effect, and to this end
the provisions of this act are severable.
SEC. 11. Conficting Initiatives.
(a) In the event that this measure and another
measure addressing parole consideration pursuant to
Section 32 of Article I of the Constitution, revocation
of parole and postrelease community supervision,
DNA collection, or theft offenses shall appear on the
same statewide ballot, the provisions of the other
measure or measures shall be deemed to be in confict
with this measure. In the event that this measure
receives a greater number of affrmative votes than a
measure deemed to be in confict with it, the
provisions of this measure shall prevail in their
26 | Text of Proposed Laws
entirety, and the other measure or measures shall be
null and void.
(b) If this measure is approved by voters but
superseded by law by any other conficting measure
approved by voters at the same election, and the
conficting ballot measure is later held invalid, this
measure shall be self-executing and given full force
and effect.
PROPOSITION 21
This initiative measure is submitted to the people in
accordance with the provisions of Section 8 of Article
II of the California Constitution.
This initiative measure amends sections of the Civil Code; therefore, existing provisions proposed to be
deleted are printed in strikeout type and new provisions proposed to be added are printed in italic
type to indicate that they are new.
PROPOSED LAW
The Rental Affordability Act
The people of the State of California do hereby ordain
as follows:
SECTION 1. Title.
This act shall be known, and may be cited, as the
“Rental Affordability Act.”
SEC. 2. Findings and Declaration.
The people of the State of California hereby fnd and
declare the following:
(a) More Californians (over 17 million people) are
renting housing than ever before. According to the
state’s fgures, home ownership rates in California
have fallen to their lowest level since the 1940s. One
quarter of older millennials (25–34 years of age) still
live with their parents (U.S. Census Bureau).
(b) Rental housing prices have skyrocketed in recent
years. Median rents are higher in California than any
other state in the country, and among all 50 states,
California has the fourth highest increase in rents.
(c) As a result of rising rental housing prices, a
majority of California renters are overburdened by
housing costs, paying more than 30 percent of their
income toward rent. One-third of renter households
spend more than 50 percent of their income toward rent.
(d) According to the National Low Income Housing Coalition, a Californian earning minimum wage would
have to work 92 hours per week in order to afford renting an average one-bedroom apartment.
(e) Families faced with housing insecurity are often
forced to decide between paying their rent and
meeting other basic needs, which negatively impacts
their health outcomes. Workers suffering from
unstable housing and a deterioration in their health
TEXT OF PROPOSED LAWS PROPOSITION 21 CONTINUED
struggle to keep their jobs, pushing them into poverty
and homelessness.
(f) Labor unions, such as the California Teachers
Association, the California Nurses Association, and
Service Employees International Union (SEIU), have
made affordable housing a priority for their members.
Teachers in California’s urban centers are paying 40
percent to 70 percent of their salaries on housing, and
many are being forced to live an hour or more from
their jobs to afford a home.
(g) Even though the state represents only 12 percent
of the total U.S. population, California is home to 22
percent of the nation’s homeless population.
(California Department of Housing and Community
Development)
(h) According to a 2018 study in the UCLA Anderson
Forecast, there is a strong link between higher median
rents and the number of people living on the streets or
in temporary shelters. When combined with individual
at-risk factors, less affordable housing markets
contribute to an increase in homelessness.
(i) Homelessness is a major public health issue.
People who are homeless are three to four times more
likely to die prematurely and are more likely to
contract communicable diseases, according to the
National Health Care for the Homeless Council.
(j) The Centers for Disease Control and Prevention
warn that vulnerable populations face lower life
expectancy, higher cancer rates, and more birth
defects when they are displaced from their homes due
to gentrifcation of their neighborhoods.
(k) The increased cost of housing is worsening traffc
congestion and harming the environment by forcing
commuters to live farther away from their places of
employment, increasing commute times. A report by
the Pew Charitable Trusts noted that the number of
Californians who commute more than 90 minutes
each way increased by 40 percent between 2010 and
2015; the increase is a direct result of the lack of
affordable housing near jobs.
(l) A growing body of evidence suggests that
stabilizing rents can bring broad-based benefts to
renters, the state’s economy, the environment, and its
public services.
SEC. 3. Purposes and Intent.
The people of the State of California hereby declare
the following purposes and intent in enacting this act:
(a) To allow California’s cities and counties to develop
and implement rent control policies that ensure
renters can fnd and afford rental housing in their
jurisdictions.
(b) To improve the quality of life for millions of
California renters and reduce the number of
Californians who face critical housing challenges and
homelessness.
(c) To stem the tide of evictions and displacement
affecting communities across California.
(d) To allow a city, county, or city and county to
exercise any local law controlling the rental rates for
residential property provided that it has been at least
15 years since the property received its certifcate of
occupancy.
(e) To allow local laws to control rental rates following
a vacancy while permitting a landlord to increase the
rental rates on a vacated unit by no more than 15
percent over the subsequent three years in addition to
any other increase allowed under a local ordinance.
(f) To exempt the owners of one or two residential
dwellings from any local rental control law.
SEC. 4. Section 1954.50 of the Civil Code is
amended to read:
1954.50. This chapter shall be known and may be
cited as the Costa-Hawkins Rental Housing
Affordability Act.
SEC. 5. Section 1954.52 of the Civil Code is
amended to read:
1954.52. (a) Notwithstanding any other provision of
law, an owner of residential real property may establish
the initial and all subsequent rental rates for a
dwelling or a unit about which any either of the
following is true:
(1) It has a certifcate of occupancy issued after
February 1, 1995 been issued its frst residential
certifcate of occupancy within 15 years of the date on
which the owner seeks to establish the initial or
subsequent rental rate.
(2) It has already been exempt from the residential
rent control ordinance of a public entity on or before
February 1, 1995, pursuant to a local exemption for
newly constructed units:
(3) (A) It is alienable separate from the title to any
other dwelling unit or is a subdivided interest in a
subdivision, as specifed in subdivision (b), (d), or (f)
of Section 11004.5 of the Business and Professions Code, and the owner is a natural person who owns no
more than two residential dwelling or housing units.
(B) This paragraph does not apply to either of the
following:
(i) A dwelling or unit where the preceding tenancy has
been terminated by the owner by notice pursuant to
Section 1946.1 or has been terminated upon a
change in the terms of the tenancy noticed pursuant
to Section 827.
(ii) A condominium dwelling or unit that has not been
sold separately by the subdivider to a bona fde
purchaser for value. The initial rent amount of the unit
for purposes of this chapter shall be the lawful rent in
effect on May 7, 2001, unless the rent amount is
governed by a different provision of this chapter.
However, if a condominium dwelling or unit meets the
Text of Proposed Laws | 27
21
TEXT OF PROPOSED LAWS PROPOSITION 21 CONTINUED
criteria of paragraph (1) or (2) of subdivision (a), or if
all the dwellings or units except one have been sold
separately by the subdivider to bona fde purchasers
for value, and the subdivider has occupied that
remaining unsold condominium dwelling or unit as his
or her principal residence for at least one year after
the subdivision occurred, then subparagraph (A) of
paragraph (3) shall apply to that unsold condominium
dwelling or unit.
(C) Where a dwelling or unit in which the initial or
subsequent rental rates are controlled by an ordinance
or charter provision in effect on January 1, 1995, the
following shall apply:
(i) An owner of real property as described in this
paragraph may establish the initial and all subsequent
rental rates for all existing and new tenancies in effect
on or after January 1, 1999, if the tenancy in effect
on or after January 1, 1999, was created between
January 1, 1996, and December 31, 1998.
(ii) Commencing on January 1, 1999, an owner of
real property as described in this paragraph may
establish the initial and all subsequent rental rates for
all new tenancies if the previous tenancy was in effect
on December 31, 1995.
(iii) The initial rental rate for a dwelling or unit as
described in this paragraph in which the initial rental
rate is controlled by an ordinance or charter provision
in effect on January 1, 1995, may not, until January
1, 1999, exceed the amount calculated pursuant to
subdivision (c) of Section 1954.53. An owner of
residential real property as described in this paragraph
may, until January 1, 1999, establish the initial rental
rate for a dwelling or unit only where the tenant has
voluntarily vacated, abandoned, or been evicted
pursuant to paragraph (2) of Section 1161 of the
Code of Civil Procedure.21
(b) Subdivision (a) does not apply where the owner
has otherwise agreed by contract with a public entity
in consideration for a direct fnancial contribution or
any other forms of assistance specifed in Chapter 4.3
(commencing with Section 65915) of Division 1 of
Title 7 of the Government Code.
(c) Nothing in this section shall be construed to affect
the authority of a public entity that may otherwise
exist to regulate or monitor the basis for eviction.
(d) This section does not apply to any dwelling or unit
that contains serious health, safety, fre, or building
code violations, excluding those caused by disasters
for which a citation has been issued by the appropriate
governmental agency and which has remained
unabated for six months or longer preceding the
vacancy.
(e) In accordance with California law, a landlord’s
right to a fair rate of return on a property shall not be
abridged by any local charter provision, ordinance, or
regulation enacted by a city, county, or city and
county.
28 | Text of Proposed Laws
SEC. 6. Section 1954.53 of the Civil Code is
amended to read:
1954.53. (a) Notwithstanding any other provision of
law, and except as provided in Section 1954.52 and
in subdivision (b) of this section, a city, county, or city
and county may by local charter provision, ordinance,
or regulation control the initial and all subsequent
rental rates for residential real property. an owner of
residential real property may establish the initial
rental rate for a dwelling or unit, except where any of
the following applies:
(1) The previous tenancy has been terminated by the
owner by notice pursuant to Section 1946.1 or has
been terminated upon a change in the terms of the
tenancy noticed pursuant to Section 827, except a
change permitted by law in the amount of rent or fees.
For the purpose of this paragraph, the owner’s
termination or nonrenewal of a contract or recorded
agreement with a governmental agency that provides
for a rent limitation to a qualifed tenant, shall be
construed as a change in the terms of the tenancy
pursuant to Section 827.
(A) In a jurisdiction that controls by ordinance or
charter provision the rental rate for a dwelling or unit,
an owner who terminates or fails to renew a contract
or recorded agreement with a governmental agency
that provides for a rent limitation to a qualifed tenant
may not set an initial rent for three years following the
date of the termination or nonrenewal of the contract
or agreement. For any new tenancy established during
the three-year period, the rental rate for a new tenancy
established in that vacated dwelling or unit shall be at
the same rate as the rent under the terminated or
nonrenewed contract or recorded agreement with a
governmental agency that provided for a rent
limitation to a qualifed tenant, plus any increases
authorized after the termination or cancellation of the
contract or recorded agreement.
(B) Subparagraph (A) does not apply to any new
tenancy of 12 months or more duration established
after January 1, 2000, pursuant to the owner’s
contract or recorded agreement with a governmental
agency that provides for a rent limitation to a qualifed
tenant, unless the prior vacancy in that dwelling or
unit was pursuant to a nonrenewed or canceled
contract or recorded agreement with a governmental
agency that provides for a rent limitation to a qualifed
tenant as set forth in that subparagraph.
(2) The owner has otherwise agreed by contract with a
public entity in consideration for a direct fnancial
contribution or any other forms of assistance specifed
in Chapter 4.3 (commencing with Section 65915) of
Division 1 of Title 7 of the Government Code.
(3) The initial rental rate for a dwelling or unit whose
initial rental rate is controlled by an ordinance or
charter provision in effect on January 1, 1995, may
TEXT OF PROPOSED LAWS PROPOSITION 21 CONTINUED
not until January 1, 1999, exceed the amount
calculated pursuant to subdivision (c).
(b) Subdivision (a) applies to, and includes, renewal
of the initial hiring by the same tenant, lessee,
authorized subtenant, or authorized sublessee for the
entire period of his or her occupancy at the rental rate
established for the initial hiring.
(c) The
(b) In any jurisdiction that controls by charter
provision, ordinance, or regulation the initial rental
rate of a dwelling or unit, whose initial rental rate is
controlled by ordinance or charter provision in effect
on January 1, 1995, shall, until January 1, 1999, be
established in accordance with this subdivision.
Where if the previous tenant has voluntarily vacated,
abandoned, or been evicted pursuant to paragraph (2)
of Section 1161 of the Code of Civil Procedure, an the owner of the dwelling or unit shall be permitted to
residential real property may, no more than twice,
establish the initial rental rate for a the vacant or
abandoned dwelling or unit in an amount that
provided that the initial rate established pursuant to
this subdivision, in combination with any increases in
the rental rate during the subsequent three year
period, is no greater than 15 percent more than the
rental rate in effect for the immediately preceding
tenancy or in an amount that is 70 percent of the
prevailing market rent for comparable units, whichever
amount is greater.
The Any increase in the initial rental rate permitted by
and established pursuant to this subdivision may be
in addition to any may not substitute for or replace
increases in rental rates otherwise authorized pursuant
to local law.
(d) (1) Nothing in this section or any other provision
of law shall be construed to preclude express
establishment in a lease or rental agreement of the
rental rates to be applicable in the event the rental
unit subject thereto is sublet. Nothing in this section
shall be construed to impair the obligations of
contracts entered into prior to January 1, 1996.
(2) If the original occupant or occupants who took
possession of the dwelling or unit pursuant to the rental agreement with the owner no longer
permanently reside there, an owner may increase the
rent by any amount allowed by this section to a lawful
sublessee or assignee who did not reside at the
dwelling or unit prior to January 1, 1996.
(3) This subdivision does not apply to partial changes
in occupancy of a dwelling or unit where one or more
of the occupants of the premises, pursuant to the
agreement with the owner provided for above, remains
an occupant in lawful possession of the dwelling or
unit, or where a lawful sublessee or assignee who
resided at the dwelling or unit prior to January 1,
1996, remains in possession of the dwelling or unit.
Nothing contained in this section shall be construed
to enlarge or diminish an owner’s right to withhold
consent to a sublease or assignment.
(4) Acceptance of rent by the owner does not operate
as a waiver or otherwise prevent enforcement of a
covenant prohibiting sublease or assignment or as a
waiver of an owner’s rights to establish the initial
rental rate, unless the owner has received written
notice from the tenant that is party to the agreement
and thereafter accepted rent.
(e) (c) Nothing in this section shall be construed to
affect any authority of a public entity that may
otherwise exist to regulate or monitor the grounds for
eviction.
(f) This section (d) Subdivision (b) does not apply to
any dwelling or unit if all the following conditions are
met:
(1) The dwelling or unit has been cited in an
inspection report by the appropriate governmental
agency as containing serious health, safety, fre, or
building code violations, as defned by Section
17920.3 of the Health and Safety Code, excluding
any violation caused by a disaster.
(2) The citation was issued at least 60 days prior to
the date of the vacancy.
(3) The cited violation had not been abated when the
prior tenant vacated and had remained unabated for
60 days or for a longer period of time. However, the
60-day time period may be extended by the appropriate governmental agency that issued the
citation.
SEC. 7. Liberal Construction.
This act shall be broadly construed to accomplish its purposes.
SEC. 8. Amendment and Repeal.
Pursuant to subdivision (c) of Section 10 of Article II
of the California Constitution, the Legislature may amend this act to further its purposes by a statute
passed in each house by rollcall vote entered in the journal, two-thirds of the membership concurring,
signed by the Governor. No statute restricting or
eliminating the powers that have been restored by this
act to a city, county, or city and county to establish
residential rental rates shall become effective unless
approved by a majority of the electorate.
21
SEC. 9. Severability.
If any provision of this act or the application thereof to
any person or circumstance is held invalid, that
invalidity shall not affect other provisions or
applications of the act that can be given effect without
the invalid provision or application, and to this end
the provisions of this act are severable.
SEC. 10. Conficting Measures.
If this act and any other measure addressing the
authority of local government agencies to establish
residential rental rates shall appear on the same
Text of Proposed Laws | 29
TEXT OF PROPOSED LAWS PROPOSITION 21 CONTINUED
statewide election ballot, the provisions of the other
measure or measures shall be deemed to be in confict
with this act. If this act receives a greater number of
affrmative votes than another measure deemed to be
in confict with it, the provisions of this act shall
prevail in their entirety, and the other measure or
measures shall be null and void.
PROPOSITION 22
This initiative measure is submitted to the people in
accordance with the provisions of Section 8 of Article
II of the California Constitution.
This initiative measure adds sections to the Business
and Professions Code and amends a section of the
Revenue and Taxation Code; therefore, new provisions
proposed to be added are printed in italic type to
indicate that they are new.
PROPOSED LAW
SECTION 1. Chapter 10.5 (commencing with
Section 7448) is added to Division 3 of the Business
and Professions Code, to read:
CHAPTER 10.5. APP-BASED DRIVERS AND SERVICES
Article 1. Title, Findings and Declarations, and
Statement of Purpose
7448. Title. This chapter shall be known, and may
be cited, as the Protect App-Based Drivers and
Services Act.
7449. Findings and Declarations. The people of the
State of California fnd and declare as follows:
(a) Hundreds of thousands of Californians are
choosing to work as independent contractors in the
modern economy using app-based rideshare and
delivery platforms to transport passengers and deliver food, groceries, and other goods as a means of earning
income while maintaining the fexibility to decide
when, where, and how they work.
21
22 (b) These app-based rideshare and delivery drivers
include parents who want to work fexible schedules
while children are in school; students who want to
earn money in between classes; retirees who rideshare or deliver a few hours a week to supplement fxed
incomes and for social interaction; military spouses
and partners who frequently relocate; and families
struggling with California’s high cost of living that
need to earn extra income.
(c) Millions of California consumers and businesses,
and our state’s economy as a whole, also beneft from the services of people who work as independent
contractors using app-based rideshare and delivery
platforms. App-based rideshare and delivery drivers
are providing convenient and affordable transportation
for the public, reducing impaired and drunk driving,
improving mobility for seniors and individuals with
disabilities, providing new transportation options for
30 | Text of Proposed Laws
families who cannot afford a vehicle, and providing
new affordable and convenient delivery options for
grocery stores, restaurants, retailers, and other local
businesses and their patrons.
(d) However, recent legislation has threatened to take
away the fexible work opportunities of hundreds of
thousands of Californians, potentially forcing them
into set shifts and mandatory hours, taking away their
ability to make their own decisions about the jobs they
take and the hours they work.
(e) Protecting the ability of Californians to work as
independent contractors throughout the state using
app-based rideshare and delivery platforms is
necessary so people can continue to choose which
jobs they take, to work as often or as little as they like,
and to work with multiple platforms or companies, all
the while preserving access to app-based rideshare
and delivery services that are benefcial to consumers,
small businesses, and the California economy.
(f) App-based rideshare and delivery drivers deserve
economic security. This chapter is necessary to protect
their freedom to work independently, while also
providing these workers new benefts and protections
not available under current law. These benefts and
protections include a healthcare subsidy consistent
with the average contributions required under the
Affordable Care Act (ACA); a new minimum earnings
guarantee tied to 120 percent of minimum wage with
no maximum; compensation for vehicle expenses;
occupational accident insurance to cover on-the-job
injuries; and protection against discrimination and
sexual harassment.
(g) California law and rideshare and delivery network
companies should protect the safety of both drivers
and consumers without affecting the right of app-
based rideshare and delivery drivers to work as
independent contractors. Such protections should, at
a minimum, include criminal background checks of
drivers; zero tolerance policies for drug- and alcohol-
related offenses; and driver safety training.
7450. Statement of Purpose. The purposes of this
chapter are as follows:
(a) To protect the basic legal right of Californians to
choose to work as independent contractors with
rideshare and delivery network companies throughout
the state.
(b) To protect the individual right of every app-based
rideshare and delivery driver to have the fexibility to
set their own hours for when, where, and how they
work.
(c) To require rideshare and delivery network
companies to offer new protections and benefts for
app-based rideshare and delivery drivers, including
minimum compensation levels, insurance to cover on-
the-job injuries, automobile accident insurance,
health care subsidies for qualifying drivers, protection
TEXT OF PROPOSED LAWS PROPOSITION 22 CONTINUED
against harassment and discrimination, and
mandatory contractual rights and appeal processes.
(d) To improve public safety by requiring criminal
background checks, driver safety training, and other
safety provisions to help ensure app-based rideshare
and delivery drivers do not pose a threat to customers
or the public.
Article 2. App-Based Driver Independence
7451. Protecting Independence. Notwithstanding
any other provision of law, including, but not limited
to, the Labor Code, the Unemployment Insurance
Code, and any orders, regulations, or opinions of the
Department of Industrial Relations or any board,
division, or commission within the Department of
Industrial Relations, an app-based driver is an
independent contractor and not an employee or agent
with respect to the app-based driver’s relationship
with a network company if the following conditions are
met:
(a) The network company does not unilaterally
prescribe specifc dates, times of day, or a minimum
number of hours during which the app-based driver
must be logged into the network company’s online-
enabled application or platform.
(b) The network company does not require the app-
based driver to accept any specifc rideshare service
or delivery service request as a condition of
maintaining access to the network company’s online-
enabled application or platform.
(c) The network company does not restrict the app-
based driver from performing rideshare services or
delivery services through other network companies
except during engaged time.
(d) The network company does not restrict the app-
based driver from working in any other lawful
occupation or business.
7452. Contract and Termination Provisions. (a) A
network company and an app-based driver shall enter
into a written agreement prior to the driver receiving
access to the network company’s online-enabled
application or platform.
(b) A network company shall not terminate a contract
with an app-based driver unless based upon a ground
specifed in the contract.
(c) Network companies shall provide an appeals
process for app-based drivers whose contracts are
terminated by the network company.
7452.5. Independence Unaffected. Nothing in
Article 3 (commencing with Section 7453) to Article
11 (commencing with Section 7467), inclusive, of
this chapter shall be interpreted to in any way alter
the relationship between a network company and an
app-based driver for whom the conditions set forth in
Section 7451 are satisfed.
Article 3. Compensation
7453. Earnings Guarantee. (a) A network company
shall ensure that for each earnings period, an app-
based driver is compensated at not less than the net
earnings foor as set forth in this section. The net
earnings foor establishes a guaranteed minimum level
of compensation for app-based drivers that cannot be
reduced. In no way does the net earnings foor prohibit
app-based drivers from earning a higher level of
compensation.
(b) For each earnings period, a network company shall
compare an app-based driver’s net earnings against
the net earnings foor for that app-based driver during
the earnings period. In the event that the app-based
driver’s net earnings in the earnings period are less
than the net earnings foor for that earnings period,
the network company shall include an additional sum
accounting for the difference in the app-based driver’s
earnings no later than during the next earnings period.
(c) No network company or agent shall take, receive,
or retain any gratuity or a part thereof that is paid,
given to, or left for an app-based driver by a customer
or deduct any amount from the earnings due to an
app-based driver for a ride or delivery on account of a
gratuity paid in connection with the ride or delivery. A
network company that permits customers to pay
gratuities by credit card shall pay the app-based driver
the full amount of the gratuity that the customer
indicated on the credit card receipt, without any
deductions for any credit card payment processing
fees or costs that may be charged to the network
company by the credit card company.
(d) For purposes of this chapter, the following
defnitions apply:
(1) “Applicable minimum wage” means the state
mandated minimum wage for all industries or, if a
passenger or item is picked up within the boundaries
of a local government that has a higher minimum
wage that is generally applicable to all industries, the
local minimum wage of that local government. The
applicable minimum wage shall be determined at the
location where a passenger or item is picked up and
shall apply for all engaged time spent completing that
rideshare request or delivery request.
(2) “Earnings period” means a pay period, set by the
network company, not to exceed 14 consecutive
calendar days.
(3) “Net earnings” means all earnings received by an
app-based driver in an earnings period, provided that
the amount conforms to both of the following
standards:
(A) The amount does not include gratuities, tolls,
cleaning fees, airport fees, or other customer pass-
throughs.
(B) The amount may include incentives or other
bonuses.
22
Text of Proposed Laws | 31
TEXT OF PROPOSED LAWS PROPOSITION 22 CONTINUED
(4) “Net earnings foor” means, for any earnings
period, a total amount that is comprised of:
(A) For all engaged time, the sum of 120 percent of
the applicable minimum wage for that engaged time.
(B) (i) The per-mile compensation for vehicle
expenses set forth in this subparagraph multiplied by
the total number of engaged miles.
(ii) After the effective date of this chapter and for the
2021 calendar year, the per-mile compensation for
vehicle expenses shall be thirty cents ($0.30) per
engaged mile. For calendar years after 2021, the
amount per engaged mile shall be adjusted pursuant
to clause (iii).
(iii) For calendar years following 2021, the per-mile
compensation for vehicle expenses described in
clause (ii) shall be adjusted annually to refect any
increase in infation as measured by the Consumer
Price Index for All Urban Consumers (CPI-U)
published by the United States Bureau of Labor
Statistics. The Treasurer’s Offce shall calculate and
publish the adjustments required by this
subparagraph.
(e) Nothing in this section shall be interpreted to
require a network company to provide a particular
amount of compensation to an app-based driver for
any given rideshare or delivery request, as long as the
app-based driver’s net earnings for each earnings
period equals or exceeds that app-based driver’s net
earnings foor for that earnings period as set forth in
subdivision (b). For clarity, the net earnings foor in
this section may be calculated on an average basis
over the course of each earnings period.
Article 4. Benefts
7454. Healthcare Subsidy. (a) Consistent with the
average contributions required under the Affordable
Care Act (ACA), a network company shall provide a
quarterly health care subsidy to qualifying app-based
drivers as set forth in this section. An app-based driver
that averages the following amounts of engaged time
per week on a network company’s platform during a
calendar quarter shall receive the following subsidies
from that network company:
22
(1) For an average of 25 hours or more per week of
engaged time in the calendar quarter, a payment
greater than or equal to 100 percent of the average
ACA contribution for the applicable average monthly
Covered California premium for each month in the
quarter.
(2) For an average of at least 15 but less than 25
hours per week of engaged time in the calendar
quarter, a payment greater than or equal to 50 percent
of the average ACA contribution for the applicable
average monthly Covered California premium for each
month in the quarter.
32 | Text of Proposed Laws
(b) At the end of each earnings period, a network
company shall provide to each app-based driver the
following information:
(1) The number of hours of engaged time the app-
based driver accrued on the network company’s
online-enabled application or platform during that
earnings period.
(2) The number of hours of engaged time the app-
based driver has accrued on the network company’s
online-enabled application or platform during the
current calendar quarter up to that point.
(c) Covered California may adopt or amend regulations
as it deems appropriate to permit app-based drivers
receiving subsidies pursuant to this section to enroll
in health plans through Covered California.
(d) (1) As a condition of providing the health care
subsidy set forth in subdivision (a), a network
company may require an app-based driver to submit proof of current enrollment in a qualifying health plan.
Proof of current enrollment may include, but is not limited to, health insurance membership or
identifcation cards, evidence of coverage and disclosure forms from the health plan, or claim forms
and other documents necessary to submit claims.
(2) An app-based driver shall have not less than 15
calendar days from the end of the calendar quarter to provide proof of enrollment as set forth in paragraph
(1).
(3) A network company shall provide a health care
subsidy due for a calendar quarter under subdivision
(a) within 15 days of the end of the calendar quarter
or within 15 days of the app-based driver’s submission
of proof of enrollment as set forth in paragraph (1),
whichever is later.
(e) For purposes of this section, a calendar quarter
refers to the following four periods of time:
(1) January 1 through March 31.
(2) April 1 through June 30.
(3) July 1 through September 30.
(4) October 1 through December 31.
(f) Nothing in this section shall be interpreted to
prevent an app-based driver from receiving a health
care subsidy from more than one network company for
the same calendar quarter.
(g) On or before December 31, 2020, and on or
before each September 1 thereafter, Covered
California shall publish the average statewide monthly
premium for an individual for the following calendar
year for a Covered California bronze health insurance
plan.
(h) This section shall become inoperative in the event
the United States or the State of California
implements a universal health care system or
substantially similar system that expands coverage to
the recipients of subsidies under this section.
TEXT OF PROPOSED LAWS PROPOSITION 22 CONTINUED
7455. Loss and Liability Protection. No network
company shall operate in California for more than 90 days unless the network company carries, provides, or
otherwise makes available the following insurance coverage:
(a) For the beneft of app-based drivers, occupational accident insurance to cover medical expenses and lost
income resulting from injuries suffered while the app-based driver is online with a network company’s
online-enabled application or platform. Policies shall at a minimum provide the following:
(1) Coverage for medical expenses incurred, up to at least one million dollars ($1,000,000).
(2) (A) Disability payments equal to 66 percent of the app-based driver’s average weekly earnings from
all network companies as of the date of injury, with minimum and maximum weekly payment rates to be
determined in accordance with subdivision (a) of Section 4453 of the Labor Code for up to the frst
104 weeks following the injury.
(B) “Average weekly earnings” means the app-based
driver’s total earnings from all network companies during the 28 days prior to the covered accident
divided by four.
(b) For the beneft of spouses, children, or other
dependents of app-based drivers, accidental death insurance for injuries suffered by an app-based driver
while the app-based driver is online with the network company’s online-enabled application or platform that
result in death. For purposes of this subdivision, burial expenses and death benefts shall be
determined in accordance with Section 4701 and Section 4702 of the Labor Code.
(c) For the purposes of this section, “online” means the time when an app-based driver is utilizing a
network company’s online-enabled application or platform and can receive requests for rideshare
services or delivery services from the network company, or during engaged time.
(d) Occupational accident insurance or accidental death insurance under subdivisions (a) and (b) shall
not be required to cover an accident that occurs while online but outside of engaged time where the injured
app-based driver is in engaged time on one or more other network company platforms or where the
app-based driver is engaged in personal activities. If an accident is covered by occupational accident
insurance or accidental death insurance maintained by more than one network company, the insurer of the
network company against whom a claim is fled is entitled to contribution for the pro-rata share of
coverage attributable to one or more other network companies up to the coverages and limits in
subdivisions (a) and (b).
(e) Any benefts provided to an app-based driver
under subdivision (a) or (b) of this section shall be considered amounts payable under a worker’s
compensation law or disability beneft for the purpose
of determining amounts payable under any insurance
provided under Article 2 (commencing with Section
11580) of Chapter 1 of Part 3 of Division 2 of the
Insurance Code.
(f) (1) For the beneft of the public, a DNC as defned
in Section 7463 shall maintain automobile liability
insurance of at least one million dollars ($1,000,000)
per occurrence to compensate third parties for injuries
or losses proximately caused by the operation of an
automobile by an app-based driver during engaged
time in instances where the automobile is not
otherwise covered by a policy that complies with
subdivision (b) of Section 11580.1 of the Insurance
Code.
(2) For the beneft of the public, a TNC as defned in
Section 7463 shall maintain liability insurance
policies as required by Article 7 (commencing with
Section 5430) of Chapter 8 of Division 2 of the Public
Utilities Code.
(3) For the beneft of the public, a TCP as defned in
Section 7463 shall maintain liability insurance
policies as required by Article 4 (commencing with
Section 5391) of Chapter 8 of Division 2 of the Public
Utilities Code.
Article 5. Antidiscrimination
and Public Safety
7456. Antidiscrimination. (a) It is an unlawful
practice, unless based upon a bona fde occupational
qualifcation or public or app-based driver safety need,
for a network company to refuse to contract with,
terminate the contract of, or deactivate from the
network company’s online-enabled application or
platform, any app-based driver or prospective app-
based driver based upon race, color, ancestry, national
origin, religion, creed, age, physical or mental
disability, sex, gender, sexual orientation, gender
identity or expression, medical condition, genetic
information, marital status, or military or veteran
status.
(b) Claims brought pursuant to this section shall be
brought solely under the procedures established by
the Unruh Civil Rights Act (Section 51 of the Civil
Code) and will be governed by its requirements and
remedies.
22
7457. Sexual Harassment Prevention. (a) A
network company shall develop a sexual harassment
policy intended to protect app-based drivers and
members of the public using rideshare services or
delivery services. The policy shall be available on the
network company’s internet website. The policy shall,
at a minimum, do all of the following:
(1) Identify behaviors that may constitute sexual
harassment, including the following: unwanted sexual
advances; leering, gestures, or displaying sexually
suggestive objects, pictures, cartoons, or posters;
derogatory comments, epithets, slurs, or jokes;
Text of Proposed Laws | 33
TEXT OF PROPOSED LAWS PROPOSITION 22 CONTINUED
graphic comments, sexually degrading words, or
suggestive or obscene messages or invitations; and
physical touching or assault, as well as impeding or
blocking movements.
(2) Indicate that the network company, and in many
instances the law, prohibits app-based drivers and
customers utilizing rideshare services or delivery
services from committing prohibited harassment.
(3) Establish a process for app-based drivers,
customers, and rideshare passengers to submit
complaints that ensures confdentiality to the extent
possible; an impartial and timely investigation; and
remedial actions and resolutions based on the
information collected during the investigation process.
(4) Provide an opportunity for app-based drivers and
customers utilizing rideshare services or delivery
services to submit complaints electronically so
complaints can be resolved quickly.
(5) Indicate that when the network company receives
allegations of misconduct, it will conduct a fair,
timely, and thorough investigation to reach reasonable
conclusions based on the information collected.
(6) Make clear that neither app-based drivers nor
customers utilizing rideshare services or delivery
services shall be retaliated against as a result of
making a good faith complaint or participating in an
investigation against another app-based driver,
customer, or rideshare passenger.
(b) Prior to providing rideshare services or delivery
services through a network company’s online-enabled
application or platform, an app-based driver shall do
both of the following:
(1) Review the network company’s sexual harassment
policy.
(2) Confrm to the network company, for which electronic confrmation shall suffce, that the app-
based driver has reviewed the network company’s
sexual harassment policy.
22 (c) Claims brought pursuant to this section shall be
brought solely under the procedures established by
the Unruh Civil Rights Act (Section 51 of the Civil
Code) and will be governed by its requirements and remedies.
7458. Criminal Background Checks. (a) A network
company shall conduct, or have a third party conduct,
an initial local and national criminal background
check for each app-based driver who uses the network
company’s online-enabled application or platform to
provide rideshare services or delivery services. The
background check shall be consistent with the
standards contained in subdivision (a) of Section
5445.2 of the Public Utilities Code. Notwithstanding
any other provision of law to the contrary, after an
app-based driver’s consent is obtained by a network
company for an initial background check, no
additional consent shall be required for the continual
34 | Text of Proposed Laws
monitoring of that app-based driver’s criminal history
if the network company elects to undertake such
continual monitoring.
(b) A network company shall complete the initial
criminal background check as required by subdivision
(a) prior to permitting an app-based driver to utilize
the network company’s online-enabled application or
platform. The network company shall provide physical
or electronic copies or summaries of the initial
criminal background check to the app-based driver.
(c) An app-based driver shall not be permitted to
utilize a network company’s online-enabled
application or platform if one of the following applies:
(1) The driver has ever been convicted of any crime
listed in subparagraph (B) of paragraph (2) of
subdivision (a) of Section 5445.2 of the Public
Utilities Code, any serious felony as defned by
subdivision (c) of Section 1192.7 of the Penal Code,
or any hate crime as defned by Section 422.55 of the
Penal Code.
(2) The driver has been convicted within the last
seven years of any crime listed in paragraph (3) of
subdivision (a) of Section 5445.2 of the Public
Utilities Code.
(d) (1) The ability of an app-based driver to utilize a
network company’s online-enabled application or
platform may be suspended if the network company
learns the driver has been arrested for any crime listed
in either of the following:
(A) Subparagraph (B) of paragraph (2), or paragraph
(3), of subdivision (a) of Section 5445.2 of the Public
Utilities Code.
(B) Subdivision (c) of this section.
(2) The suspension described in paragraph (1) may
be lifted upon the disposition of an arrest for any
crime listed in subparagraph (B) of paragraph (2), or
paragraph (3), of subdivision (a) of Section 5445.2 of
the Public Utilities Code that does not result in a
conviction. Such disposition includes a fnding of
factual innocence from any relevant charge, an
acquittal at trial, an affdavit indicating the
prosecuting attorney with jurisdiction over the alleged
offense has declined to fle a criminal complaint, or
an affdavit indicating all relevant time periods
described in Chapter 2 (commencing with Section
799) of Title 3 of Part 2 of the Penal Code have
expired.
(e) Nothing in this section shall be interpreted to
prevent a network company from imposing additional
standards relating to criminal history.
(f) Notwithstanding Section 1786.12 of the Civil
Code, an investigative consumer reporting agency may
furnish an investigative consumer report to a network
company about a person seeking to become an app-
based driver, regardless of whether the app-based
TEXT OF PROPOSED LAWS PROPOSITION 22 CONTINUED
driver is to be an employee or an independent
contractor of the network company.
7459. Safety Training. (a) A network company shall
require an app-based driver to complete the training
described in this section prior to allowing the app-
based driver to utilize the network company’s online-
enabled application or platform.
(b) A network company shall provide each app-based
driver safety training. The safety training required by
this section shall include the following subjects:
(1) Collision avoidance and defensive driving
techniques.
(2) Identifcation of collision-causing elements such
as excessive speed, DUI, and distracted driving.
(3) Recognition and reporting of sexual assault and
misconduct.
(4) For app-based drivers delivering prepared food or
groceries, food safety information relevant to the
delivery of food, including temperature control.
(c) The training may, at the discretion of the network
company, be provided via online, video, or in-person
training.
(d) Notwithstanding subdivision (a), any app-based
driver that has entered into a contract with a network
company prior to January 1, 2021, to provide
rideshare services or delivery services shall have until
July 1, 2021, to complete the safety training required
by this section, and may continue to provide rideshare
services or delivery services through the network
company’s online-enabled application or platform
until that date. On and after July 1, 2021, app-based
drivers described in this subdivision must complete
the training required by this section in order to
continue providing rideshare services and delivery
services.
(e) Any safety product, feature, process, policy,
standard, or other effort undertaken by a network
company, or the provision of equipment by a network
company, to further public safety is not an indicia of
an employment or agency relationship with an app-
based driver.
7460. Zero Tolerance Policies. (a) A network
company shall institute a “zero tolerance policy” that
mandates prompt suspension of an app-based driver’s
access to the network company’s online-enabled
application or platform in any instance in which the
network company receives a report through its online-
enabled application or platform, or by any other
company-approved method, from any person who
reasonably suspects the app-based driver is under the
infuence of drugs or alcohol while providing rideshare
services or delivery services.
(b) Upon receiving a report described in subdivision
(a), a network company shall promptly suspend the
app-based driver from the company’s online-enabled
application or platform for further investigation.
(c) A network company may suspend access to the
network company’s online-enabled application or
platform for any app-based driver or customer found
to be reporting an alleged violation of a zero tolerance
policy as described in subdivision (a) where that driver
or customer knows the report to be unfounded or
based the report on an intent to inappropriately deny a
driver access to the online-enabled application or
platform.
7460.5. A network company shall make
continuously and exclusively available to law
enforcement a mechanism to submit requests for
information to aid in investigations related to
emergency situations, exigent circumstances, and
critical incidents.
7461. App-based Driver Rest. An app-based driver
shall not be logged in and driving on a network
company’s online-enabled application or platform for
more than a cumulative total of 12 hours in any 24-
hour period, unless that driver has already logged off
for an uninterrupted period of 6 hours. If an app-
based driver has been logged on and driving for more
than a cumulative total of 12 hours in any 24-hour
period, without logging off for an uninterrupted period
of 6 hours, the driver shall be prohibited from logging
back into the network company’s online-enabled
application or platform for an uninterrupted period of
at least 6 hours.
7462. Impersonating an App-Based Driver. (a) Any
person who fraudulently impersonates an app-based
driver while providing or attempting to provide
rideshare or delivery services shall be guilty of a
misdemeanor, and is punishable by imprisonment in a
county jail for up to six months, or a fne of up to ten
thousand dollars ($10,000), or both. Nothing in this
subdivision precludes prosecution under any other
law.
(b) In addition to any other penalty provided by law,
any person who fraudulently impersonates an app-
based driver while providing or attempting to provide
rideshare services or delivery services in the
commission or attempted commission of an offense
described in Section 207, 209, 220, 261, 264.1,
286, 287, 288, or 289 of the Penal Code shall be
sentenced to an additional term of fve years.
22
(c) In addition to any other penalty provided by law,
any person who fraudulently impersonates an app-
based driver while providing or attempting to provide
rideshare services or delivery services in the
commission of a felony or attempted felony and in so
doing personally inficts great bodily injury to another
person other than an accomplice shall be sentenced
to an additional term of fve years.
(d) In addition to any other penalty provided by law,
any person who fraudulently impersonates an app-
based driver while providing or attempting to provide
rideshare services or delivery services in the
Text of Proposed Laws | 35
TEXT OF PROPOSED LAWS PROPOSITION 22 CONTINUED
commission of a felony or attempted felony and in so
doing causes the death of another person other than
an accomplice shall be sentenced to an additional
term of 10 years.
Article 6. Defnitions
7463. For purposes of this chapter, the following
defnitions shall apply:
(a) “App-based driver” means an individual who is a
DNC courier, TNC driver, or TCP driver or permit
holder; and for whom the conditions set forth in
subdivisions (a) to (d), inclusive, of Section 7451 are
satisfed.
(b) “Average ACA contribution” means 82 percent of
the dollar amount of the average monthly Covered
California premium.
(c) “Average monthly Covered California premium”
equals the dollar amount published pursuant to
subdivision (g) of Section 7454.
(d) “Covered California” means the California Health
Beneft Exchange, codifed in Title 22 (commencing
with Section 100500) of the Government Code.
(e) “Customer” means one or more natural persons or
business entities.
(f) “Delivery network company” (DNC) means a
business entity that maintains an online-enabled
application or platform used to facilitate delivery
services within the State of California on an on-
demand basis, and maintains a record of the amount
of engaged time and engaged miles accumulated by
DNC couriers. Deliveries are facilitated on an on-
demand basis if DNC couriers are provided with the
option to accept or decline each delivery request and
the DNC does not require the DNC courier to accept
any specifc delivery request as a condition of
maintaining access to the DNC’s online-enabled
application or platform.
22
(g) “Delivery network company courier” (DNC courier)
means an individual who provides delivery services
through a DNC’s online-enabled application or
platform.
(h) “Delivery services” means the fulfllment of
delivery requests, meaning the pickup from any
location of any item or items and the delivery of the
items using a passenger vehicle, bicycle, scooter,
walking, public transportation, or other similar means
of transportation, to a location selected by the
customer located within 50 miles of the pickup
location. A delivery request may include more than
one, but not more than 12, distinct orders placed by
different customers. Delivery services may include the
selection, collection, or purchase of items by a DNC
courier provided that those tasks are done in
connection with a delivery that the DNC courier has
agreed to deliver. Delivery services do not include
deliveries that are subject to Section 26090, as that
section read on October 29, 2019.
36 | Text of Proposed Laws
(i) “Engaged miles” means all miles driven during
engaged time in a passenger vehicle that is not owned,
leased, or rented by the network company.
(j) (1) “Engaged time” means, subject to the
conditions set forth in paragraph (2), the period of
time, as recorded in a network company’s online-
enabled application or platform, from when an app-
based driver accepts a rideshare request or delivery
request to when the app-based driver completes that
rideshare request or delivery request.
(2) (A) Engaged time shall not include the following:
(i) Any time spent performing a rideshare service or
delivery service after the request has been cancelled
by the customer.
(ii) Any time spent on a rideshare service or delivery
service where the app-based driver abandons
performance of the service prior to completion.
(B) Network companies may also exclude time if
doing so is reasonably necessary to remedy or prevent
fraudulent use of the network company’s online-
enabled application or platform.
(k) “Local government” means a city, county, city and
county, charter city, or charter county.
(l) “Network company” means a business entity that
is a DNC or a TNC.
(m) “Passenger vehicle” means a passenger vehicle
as defned in Section 465 of the Vehicle Code.
(n) “Qualifying health plan” means a health insurance
plan in which the app-based driver is the subscriber,
that is not sponsored by an employer, and that is not a
Medicare or Medicaid plan.
(o) “Rideshare service” means the transportation of
one or more persons.
(p) “Transportation network company” (TNC) has the
same meaning as the defnition contained in
subdivision (c) of Section 5431 of the Public Utilities
Code.
(q) “Transportation network company driver” (TNC
driver) has the same meaning as the defnition of
driver contained in subdivision (a) of Section 5431 of
the Public Utilities Code.
(r) “Charter-party carrier of passengers” (TCP) shall
have the same meaning as the defnition contained in
Section 5360 of the Public Utilities Code, provided
the driver is providing rideshare services using a
passenger vehicle through a network company’s
online-enabled application or platform.
Article 7. Uniform Work Standards
7464. (a) The performance of a single rideshare
service or delivery service frequently requires an app-
based driver to travel across the jurisdictional
boundaries of multiple local governments. California
has over 500 cities and counties, which can lead to
TEXT OF PROPOSED LAWS PROPOSITION 22 CONTINUED
overlapping, inconsistent, and contradictory local
regulations for cross-jurisdictional services.
(b) In light of the cross-jurisdictional nature of the
rideshare services and delivery services, and in
addition to the other requirements and standards
established by this chapter, the state hereby occupies
the feld in the following areas:
(1) App-based driver compensation and gratuity,
except as provided in Section 7453.
(2) App-based driver scheduling, leave, health care
subsidies, and any other work-related stipends,
subsidies, or benefts.
(3) App-based driver licensing and insurance
requirements.
(4) App-based driver rights with respect to a network
company’s termination of an app-based driver’s
contract.
(c) Notwithstanding subdivision (b), nothing in this
section shall limit a local government’s ability to adopt
local ordinances necessary to punish the commission
of misdemeanor and felony crimes or to enforce local
ordinances and regulations enacted prior to October
29, 2019.
Article 8. Income Reporting
7464.5 (a) A network company that is acting as a
third-party settlement organization shall prepare an
information return for each participating payee who is
an app-based driver with a California address that has
a gross amount of reportable payment transactions
equal to or greater than six hundred dollars ($600)
during a calendar year, irrespective of the number of
transactions between the third-party settlement
organization and the payee. A third-party settlement
organization must report these amounts to the
Franchise Tax Board and furnish a copy to the payee,
even if it does not have a federal reporting obligation.
The information return shall identify the following:
(1) The name, address, and tax identifcation number
of the participating payee.
(2) The gross amount of the reportable payment
transactions with respect to the participating payee.
(b) Within 30 days following the date such an
information return would be due to the Internal
Revenue Service, a network company shall fle a copy
of any information return required by subdivision (a)
with the Franchise Tax Board and shall provide a copy
to the participating payee.
(c) A network company may fulfll this requirement by
submitting a copy of Internal Revenue Service Form
1099-K or by submitting a form provided by the
Franchise Tax Board that includes the same
information as that on Cal-1099-K.
(d) For purposes of this section:
(1) “Participating payee” has the same meaning as
provided in Section 6050W(d)(1)(A)(ii) of Title 26 of
the United States Code.
(2) “Reportable payment transaction” has the same
meaning as provided in Section 6050W(c)(1) of Title
26 of the United States Code.
(3) “Third-party settlement organization” has the
same meaning as provided in Section 6050W(b)(3) of
Title 26 of the United States Code.
(e) This section shall not apply in instances where the
gross amount of reportable payment transactions for a
participating payee in a calendar year is less than six
hundred dollars ($600) or where the participating
payee is not an app-based driver.
(f) This section shall apply to reportable payment
transactions occurring on or after January 1, 2021.
Article 9. Amendment
7465. (a) After the effective date of this chapter,
the Legislature may amend this chapter by a statute
passed in each house of the Legislature by rollcall
vote entered into the journal, seven-eighths of the
membership concurring, provided that the statute is
consistent with, and furthers the purpose of, this
chapter. No bill seeking to amend this chapter after
the effective date of this chapter may be passed or
ultimately become a statute unless the bill has been
printed and distributed to members, and published on
the internet, in its fnal form, for at least 12 business
days prior to its passage in either house of the
Legislature.
(b) No statute enacted after October 29, 2019, but
prior to the effective date of this chapter, that would
constitute an amendment of this chapter, shall be
operative after the effective date of this chapter unless
the statute was passed in accordance with the
requirements of subdivision (a).
(c) (1) The purposes of this chapter are described in
Article 1 (commencing with Section 7448).
(2) Any statute that amends Section 7451 does not
further the purposes of this chapter.
(3) Any statute that prohibits app-based drivers from
performing a particular rideshare service or delivery
service while allowing other individuals or entities to
perform the same rideshare service or delivery service,
or otherwise imposes unequal regulatory burdens upon
app-based drivers based on their classifcation status,
constitutes an amendment of this chapter and must
be enacted in compliance with the procedures
governing amendments consistent with the purposes
of this chapter as set forth in subdivisions (a) and (b).
22
(4) Any statute that authorizes any entity or
organization to represent the interests of app-based
drivers in connection with drivers’ contractual
relationships with network companies, or drivers’
compensation, benefts, or working conditions,
constitutes an amendment of this chapter and must
Text of Proposed Laws | 37
TEXT OF PROPOSED LAWS PROPOSITION 22 CONTINUED
be enacted in compliance with the procedures
governing amendments consistent with the purposes
of this chapter as set forth in subdivisions (a) and (b).
(d) Any statute that imposes additional misdemeanor
or felony penalties in order to provide greater
protection against criminal activity for app-based
drivers and individuals using rideshare services or
delivery services may be enacted by the Legislature by
rollcall vote entered into the journal, a majority of the
membership of each house concurring, without
complying with subdivisions (a) and (b).
Article 10. Regulations
7466. (a) Emergency regulations may be adopted
by Covered California in order to implement and
administer subdivisions (c) and (g) of Section 7454.
(b) Any emergency regulation adopted pursuant to
this section shall be adopted in accordance with
Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code,
and, for purposes of that chapter, including Section
11349.6 of the Government Code, the adoption of the
regulation is an emergency and shall be considered by
the Offce of Administrative Law as necessary for the
immediate preservation of the public peace, health
and safety, and general welfare. Notwithstanding any
other provision of law, the emergency regulations
adopted by Covered California may remain in effect
for two years from the date of adoption.
Article 11. Severability
7467. (a) Subject to subdivision (b), the provisions
of this chapter are severable. If any portion, section,
subdivision, paragraph, clause, sentence, phrase,
word, or application of this chapter is for any reason
held to be invalid by a decision of any court of
competent jurisdiction, that decision shall not affect
the validity of the remaining portions of this chapter.
The people of the State of California hereby declare
that they would have adopted this chapter and each
and every portion, section, subdivision, paragraph,
clause, sentence, phrase, word, and application not
declared invalid or unconstitutional without regard to
whether any other portion of this chapter or
application thereof would be subsequently declared
invalid.
22
(b) Notwithstanding subdivision (a), if any portion,
section, subdivision, paragraph, clause, sentence,
phrase, word, or application of Section 7451 of Article
2 (commencing with Section 7451), as added by the
voters, is for any reason held to be invalid by a
decision of any court of competent jurisdiction, that
decision shall apply to the entirety of the remaining
provisions of this chapter, and no provision of this
chapter shall be deemed valid or given force of law.
SEC. 2. Section 17037 of the Revenue and Taxation
Code is amended to read:
38 | Text of Proposed Laws
17037. Provisions in other codes or general law
statutes which are related to this part include all of
the following:
(a) Chapter 20.6 (commencing with Section 9891) of
Division 3 of the Business and Professions Code, relating to tax preparers.
(b) Part 10.2 (commencing with Section 18401),
relating to the administration of franchise and income
tax laws.
(c) Part 10.5 (commencing with Section 20501),
relating to the Property Tax Assistance and
Postponement Law.
(d) Part 10.7 (commencing with Section 21001),
relating to the Taxpayers’ Bill of Rights.
(e) Part 11 (commencing with Section 23001),
relating to the Corporation Tax Law.
(f) Sections 15700 to 15702.1, inclusive, of the
Government Code, relating to the Franchise Tax Board.
(g) Article 8 (commencing with Section 7464.5) of
Chapter 10.5 of Division 3 of the Business and
Professions Code.
SEC. 3. Conficting Measures.
(a) In the event that this initiative measure and
another ballot measure or measures dealing, either
directly or indirectly, with the worker classifcation,
compensation, or benefts of app-based drivers shall
appear on the same statewide election ballot, the
other ballot measure or measures shall be deemed to
be in confict with this measure. In the event that this
initiative measure receives a greater number of affrmative votes, the provisions of this measure shall
prevail in their entirety, and the provisions of the other
ballot measure or measures shall be null and void.
(b) If this initiative measure is approved by the voters
but superseded in whole or in part by any other
conficting ballot measure approved by the voters at
the same election, and such conficting measure is
later held invalid, this measure shall be self-executing
and given full force and effect.
SEC. 4. Legal Defense.
The purpose of this section is to ensure that the
people’s precious right of initiative cannot be
improperly annulled by state politicians who refuse to
defend the will of the voters. Therefore, if this act is
approved by the voters of the State of California and
thereafter subjected to a legal challenge which
attempts to limit the scope or application of this act
in any way, or alleges this act violates any local, state,
or federal law in whole or in part, and both the
Governor and Attorney General refuse to defend this
act, then the following actions shall be taken:
(a) Notwithstanding anything to the contrary
contained in Chapter 6 (commencing with Section
12500) of Part 2 of Division 3 of Title 2 of the
Government Code or any other law, the Attorney
TEXT OF PROPOSED LAWS PROPOSITION 22 CONTINUED
General shall appoint independent counsel to faithfully and vigorously defend this act on behalf of
the State of California.
(b) Before appointing or thereafter substituting
independent counsel, the Attorney General shall
exercise due diligence in determining the
qualifcations of independent counsel and shall obtain
written affrmation from independent counsel that
independent counsel will faithfully and vigorously
defend this act. The written affrmation shall be made
publicly available upon request.
(c) In order to support the defense of this act in
instances where the Governor and Attorney General
fail to do so despite the will of the voters, a continuous
appropriation is hereby made from the General Fund
to the Controller, without regard to fscal years, in an
amount necessary to cover the costs of retaining
independent counsel to faithfully and vigorously
defend this act on behalf of the State of California.
SEC. 5. Liberal Construction.
This act shall be liberally construed in order to
effectuate its purposes.
PROPOSITION 23
This initiative measure is submitted to the people in
accordance with the provisions of Section 8 of Article
II of the California Constitution.
This initiative measure adds sections to the Health
and Safety Code; therefore, new provisions proposed
to be added are printed in italic type to indicate that
they are new.
PROPOSED LAW
SECTION 1. Name.
This act shall be known as the “Protect the Lives of
Dialysis Patients Act.”
SEC. 2. Findings and Purposes.
This act, adopted by the people of the State of
California, makes the following fndings and has the
following purposes:
(a) The people make the following fndings:
(1) Kidney dialysis is a life-saving process in which
blood is removed from a person’s body, cleaned of
toxins, and then returned to the patient. It must be
done at least three times a week for several hours a
session, and the patient must continue treatment for the rest of their life or until they can obtain a kidney
transplant.
(2) In California, at least 70,000 people undergo
dialysis treatment.
(3) Just two multinational, for-proft corporations
operate or manage nearly three-quarters of dialysis
clinics in California and treat more than 75 percent of
dialysis patients in the state. These two multinational
corporations annually earn billions of dollars from
their dialysis operations, including more than $350
million a year in California alone.
(4) The dialysis procedure and side effects from the
treatments present several dangers to patients, and
many dialysis clinics in California have been cited for
failure to maintain proper standards of care. Failure to
maintain proper standards can lead to patient harm,
hospitalizations, and even death.
(5) Dialysis clinics are currently not required to
maintain a doctor on site to oversee quality, ensure
the patient plan of care is appropriately followed, and
monitor safety protocols. Patients should have access
to a physician on site whenever dialysis treatment is
being provided.
(6) Dialysis treatments involve direct access to the
bloodstream, which puts patients at heightened risk of
getting dangerous infections. Proper reporting and
transparency of infection rates encourages clinics to
improve quality and helps patients make the best
choice for their care.
(7) When health care facilities like hospitals and
nursing homes close, California regulators are able to
take steps to protect patients from harm. Likewise,
strong protections should be provided to vulnerable
patients when dialysis clinics close.
(8) Dialysis corporations have lobbied against efforts
to enact protections for kidney dialysis patients in
California, spending over $100 million in 2018 and
2019 to infuence California voters and the
Legislature.
(b) Purposes:
(1) It is the purpose of this act to ensure that
outpatient kidney dialysis clinics provide quality and
affordable patient care to people suffering from end-
stage renal disease.
(2) This act is intended to be budget neutral for the
state to implement and administer.
SEC. 3. Section 1226.7 is added to the Health and
Safety Code, to read:
1226.7. (a) Chronic dialysis clinics shall provide
the same quality of care to their patients without
discrimination on the basis of who is responsible for
paying for a patient’s treatment. Further, chronic
dialysis clinics shall not refuse to offer or to provide
care on the basis of who is responsible for paying for a
patient’s treatment. Such prohibited discrimination
includes, but is not limited to, discrimination on the
basis that a payer is an individual patient, private
entity, insurer, Medi-Cal, Medicaid, or Medicare. This
section shall also apply to a chronic dialysis clinic’s
governing entity, which shall ensure that no
discrimination prohibited by this section occurs at or
among clinics owned or operated by the governing
entity.
(b) Defnitions:
22
23
Text of Proposed Laws | 39
TEXT OF PROPOSED LAWS PROPOSITION 23 CONTINUED
23
(1) “Chronic dialysis clinic” has the same meaning as
in Section 1204.
(2) “Governing entity” means a person, frm,
association, partnership, corporation, or other entity
that owns or operates a chronic dialysis clinic for
which a license has been issued, without respect to
whether the person or entity itself directly holds that
license.
SEC. 4. Section 1226.8 is added to the Health and
Safety Code, to read:
1226.8. (a) Every chronic dialysis clinic must
maintain, at the chronic dialysis clinic’s expense, at
least one licensed physician present onsite during all
times that in-center dialysis patients are being
treated. This physician shall have authority and
responsibility over patient safety and to direct the
provision and quality of medical care.
(1) A chronic dialysis clinic may apply to the
department for an exception to the requirement in
subdivision (a) on the grounds that a bona fde
shortage of qualifed physicians prevents it from
satisfying the requirement. Upon such a showing, the
department may grant an exception that permits the
clinic to satisfy the requirement in subdivision (a) by
having at minimum one of the following onsite during
all times that in-center dialysis patients are being
treated: a licensed physician, a nurse practitioner, or a
physician assistant.
(2) The duration of an exception granted by the
department pursuant to paragraph (1) shall be one
calendar year from the date the clinic is notifed of the
department's determination.
(b) For each chronic dialysis clinic, the clinic or its
governing entity shall quarterly report to the
department, on a form and schedule prescribed by the
department, dialysis clinic health care associated
infection (“dialysis clinic HAI”) data, including the
incidence and type of dialysis clinic HAIs at each
chronic dialysis clinic in California and such other
information as the department shall deem appropriate
to provide transparency on dialysis clinic HAI rates
and promote patient safety. The chief executive offcer
or other principal offcer of the clinic or governing
entity shall certify under penalty of perjury that the
offcer is satisfed, after review, that the dialysis clinic
HAI report submitted to the department is accurate
and complete. The department shall post on its
internet website the dialysis clinic HAI data from this
report, at the same level of detail as provided in the
report. The posted information shall include
information identifying the governing entity of each
chronic dialysis clinic.
(1) In addition to reporting to the department
pursuant to the requirements of this subdivision,
chronic dialysis clinics shall report dialysis clinic HAI
data to the National Healthcare Safety Network in
accordance with National Healthcare Safety Network
requirements and procedures.
(2) In the event the department determines that a
chronic dialysis clinic or governing entity failed to
maintain the information or timely submit a report
required under this subdivision, or that the report
submitted was inaccurate or incomplete, the
department shall assess a penalty against the chronic
dialysis clinic or governing entity not to exceed
one hundred thousand dollars ($100,000). The
department shall determine the amount of the penalty
based on the severity of the violation, the materiality
of the inaccuracy or omitted information, and the
strength of the explanation, if any, for the violation.
Penalties collected pursuant to this paragraph shall be
used by the department to implement and enforce
laws governing chronic dialysis clinics.
(c) Defnitions. For purposes of this section:
(1) “Chronic dialysis clinic” has the same meaning as
in Section 1204.
(2) “Dialysis clinic HAI” means a bloodstream
infection, local access site infection, or vascular
access infection related to a dialysis event as defned
by the National Healthcare Safety Network of the
federal Centers for Disease Control and Prevention, or
any appropriate additional or alternative defnition
that the department defnes by regulation.
(3) “Governing entity” has the same meaning as in
Section 1226.7.
(4) “Licensed physician” means a nephrologist or
other physician licensed by the state pursuant to
Chapter 5 (commencing with Section 2000) of
Division 2 of the Business and Professions Code.
(5) “National Healthcare Safety Network” means the
secure, internet-based system developed and
managed by the federal Centers for Disease Control
and Prevention that collects, analyzes, and reports
risk-adjusted dialysis clinic HAI data related to the
incidence of HAIs and the process measures
implemented to prevent these infections, or any
successor data collection system that serves
substantially the same purpose.
(6) “Nurse practitioner” means a registered nurse
licensed pursuant to Chapter 6 (commencing with
Section 2700) of Division 2 of the Business and
Professions Code and certifed as a nurse practitioner
by the Board of Registered Nursing.
(7) “Physician assistant” means a physician assistant
licensed pursuant to Chapter 7.7 (commencing with
Section 3500) of Division 2 of the Business and
Professions Code.
SEC. 5. Section 1226.9 is added to the Health and
Safety Code, to read:
1226.9. (a) Prior to closing a chronic dialysis clinic,
or substantially reducing or eliminating the level of
services provided by a chronic dialysis clinic, the
40 | Text of Proposed Laws
TEXT OF PROPOSED LAWS PROPOSITION 23 CONTINUED
clinic or its governing entity must provide written
notice to, and obtain the written consent of, the
department.
(b) The department shall have discretion to consent
to, give conditional consent to, or not consent to, any
proposed closure or substantial reduction or
elimination of services. In making its determination,
the department may take into account information
submitted by the clinic, its governing entity, and any
other interested party, and shall consider any factors
that the department considers relevant, including, but
not limited to, the following:
(1) The effect on the availability and accessibility of
health care services to the affected community,
including, but not limited to, the clinic’s detailed plan
for ensuring patients will have uninterrupted access to
care.
(2) Evidence of good faith efforts by the clinic or
governing entity to sell, lease, or otherwise transfer
ownership or operations of the clinic to another entity
that would provide chronic dialysis care.
(3) The fnancial resources of the clinic and its
governing entity.
(c) Defnitions:
(1) “Chronic dialysis clinic” has the same meaning as
in Section 1204.
(2) “Governing entity” has the same meaning as in
Section 1226.7.
SEC. 6. Section 1226.10 is added to the Health
and Safety Code, to read:
1226.10. (a) If a chronic dialysis clinic or governing
entity disputes a determination by the department pursuant to Section 1226.8 or 1226.9, the chronic
dialysis clinic or governing entity may, within 10 working days, request a hearing pursuant to Section
131071. A chronic dialysis clinic or governing entity shall pay all administrative penalties when all appeals
have been exhausted if the department's position has been upheld.
(b) Defnitions:
(1) “Chronic dialysis clinic” has the same meaning as
in Section 1204.
(2) “Governing entity” has the same meaning as in
Section 1226.7.
SEC. 7. Section 1266.3 is added to the Health and
Safety Code, to read:
1266.3. It is the intent of the people that California
taxpayers not be fnancially responsible for
implementation and enforcement of the Protect the
Lives of Dialysis Patients Act. In order to effectuate
that intent, when calculating, assessing, and
collecting fees imposed on chronic dialysis clinics
pursuant to Section 1266, the department shall take
into account all costs associated with implementing
and enforcing Sections 1226.7 to 1226.10, inclusive.
SEC. 8. Nothing in this act is intended to affect
health facilities licensed pursuant to subdivision (a),
(b), or (f) of Section 1250 of the Health and Safety
Code.
SEC. 9. (a) The State Department of Public Health
is authorized to and, within one year following the
act’s effective date, shall adopt regulations
implementing Sections 1226.8 and 1226.9 of the
Health and Safety Code to further the purposes of this
act.
(b) If the department is unable to adopt the required
fnal regulations within one year following the act’s
effective date, the adoption of emergency
implementing regulations shall be deemed an
emergency and necessary for the immediate
preservation of the public peace, health, safety, or
general welfare, in which case the department shall
adopt initial emergency implementing regulations no
later than one year following the act’s effective date,
or as soon thereafter as is practicable. If such
emergency regulations are adopted, the department
shall adopt the required fnal regulations by the time
the emergency regulations expire.
SEC. 10. Pursuant to subdivision (c) of Section 10
of Article II of the California Constitution, this act may
be amended either by a subsequent measure
submitted to a vote of the people at a statewide
election; or by a statute validly passed by the
Legislature and signed by the Governor, but only to
further the purposes of the act.
SEC. 11. (a) In the event that this initiative
measure and another initiative measure or measures
relating to dialysis (including, but not limited to, the
regulation of chronic dialysis clinics or the treatment
and care of dialysis patients) shall appear on the same
statewide election ballot, the other initiative measure
or measures shall be deemed to be in confict with
this measure. In the event that this initiative measure
receives the highest number of affrmative votes, the
provisions of this measure shall prevail in their
entirety, and the provisions of the other initiative
measure or measures shall be null and void.
(b) If this initiative is approved by the voters but
superseded in whole or in part by any other conficting
ballot measure approved by the voters at the same
election, and such conficting measure is later held
invalid, this measure shall be self-executing and given
full force and effect.
23
SEC. 12. The provisions of this act are severable. If
any provision of this act or its application is held
invalid, that invalidity shall not affect the remaining
portions of this act or any application that can be
given effect without the invalid provision or
application. The people of the State of California
hereby declare that they would have adopted this act
and each and every portion, section, subdivision,
paragraph, clause, sentence, phrase, word, and
Text of Proposed Laws | 41
TEXT OF PROPOSED LAWS PROPOSITION 23 CONTINUED
application not declared invalid or unconstitutional
without regard to whether any portion of this act or application thereof would be subsequently declared
invalid.
PROPOSITION 24
This initiative measure is submitted to the people in
accordance with the provisions of Section 8 of Article II of the California Constitution.
This initiative measure amends and adds sections to
the Civil Code; therefore, existing provisions proposed
to be deleted are printed in strikeout type and new
provisions proposed to be added are printed in italic
type to indicate that they are new.
PROPOSED LAW
The California Privacy Rights
Act of 2020
SECTION 0.5: Table of Contents
Section 1: Title: The California Privacy Rights Act of 2020
Section 2: Findings and Declarations
Section 3: Purpose and Intent
A. Consumer Rights
B. Responsibilities of Businesses
C. Implementation of the Law
Section 4: General Duties of Businesses that Collect
Personal Information
Section 5: Consumers’ Right to Delete Personal Information
Section 6: Consumers’ Right to Correct Inaccurate
Personal Information
Section 7: Consumers’ Right to Know What
Personal Information is Being Collected. Right to
Access Personal Information
Section 8: Consumers’ Right to Know What
Personal Information is Sold or Shared and to Whom
Section 9: Consumers’ Right to Opt Out of Sale or Sharing of Personal Information
23
24
Section 10: Consumers’ Right to Limit Use and Disclosure of Sensitive Personal Information
Section 11: Consumers’ Right of No Retaliation
Following Opt Out or Exercise of Other Rights
Section 12: Notice, Disclosure, Correction, and
Deletion Requirements
Section 13: Methods of Limiting Sale, Sharing, and
Use of Personal Information and Use of Sensitive
Personal Information
Section 14: Definitions
Section 15: Exemptions
Section 16: Personal Information Security Breaches
42 | Text of Proposed Laws
Section 17: Administrative Enforcement
Section 18: Consumer Privacy Fund
Section 19: Conflicting Provisions
Section 20: Preemption
Section 21: Regulations
Section 22: Anti-Avoidance
Section 23: Waiver
Section 24: Establishment of California Privacy
Protection Agency
Section 25: Amendment
Section 26: Severability
Section 27: Conflicting Initiatives
Section 28: Standing
Section 29: Construction
Section 30: Savings Clause
Section 31: Effective and Operative Dates
SEC. 1. Title.
This measure shall be known, and may be cited, as
the “California Privacy Rights Act of 2020.”
SEC. 2. Findings and Declarations.
The people of the State of California hereby find and
declare all of the following:
A. In 1972, California voters amended the California
Constitution to include the right of privacy among the
“inalienable” rights of all people. Voters acted in
response to the accelerating encroachment on
personal freedom and security caused by increased
data collection and usage in contemporary society.
The amendment established a legal and enforceable
constitutional right of privacy for every Californian.
Fundamental to this right of privacy is the ability of
individuals to control the use, including the sale, of
their personal information.
B. Since California voters approved the constitutional
right of privacy, the California Legislature has adopted
specific mechanisms to safeguard Californians’
privacy, including the Online Privacy Protection Act,
the Privacy Rights for California Minors in the Digital
World Act, and Shine the Light, but consumers had no
right to learn what personal information a business
had collected about them and how they used it or to
direct businesses not to sell the consumer’s personal
information.
C. That changed in 2018, when more than 629,000
California voters signed petitions to qualify the
California Consumer Privacy Act of 2018 for the
ballot. In response to the measure’s qualification, the
Legislature enacted the California Consumer Privacy
Act of 2018 (CCPA) into law. The CCPA gives
California consumers the right to learn what
information a business has collected about them, to
delete their personal information, to stop businesses
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
from selling their personal information, including
using it to target them with ads that follow them as
they browse the internet from one website to another,
and to hold businesses accountable if they do not take
reasonable steps to safeguard their personal
information.
D. Even before the CCPA had gone into effect, the
Legislature considered many bills in 2019 to amend
the law, some of which would have significantly
weakened it. Unless California voters take action, the
hard-fought rights consumers have won could be undermined by future legislation.
E. Rather than diluting privacy rights, California should strengthen them over time. Many businesses
collect and use consumers’ personal information, sometimes without consumers’ knowledge regarding
the business’ use and retention of their personal information. In practice, consumers are often entering
into a form of contractual arrangement in which, while
they do not pay money for a good or service, they
exchange access to that good or service in return for
access to their attention or access to their personal
information. Because the value of the personal
information they are exchanging for the good or
service is often opaque, depending on the practices of
the business, consumers often have no good way to
value the transaction. In addition, the terms of
agreement or policies in which the arrangements are
spelled out, are often complex and unclear, and as a
result, most consumers never have the time to read or
understand them.
F. This asymmetry of information makes it difficult for
consumers to understand what they are exchanging
and therefore to negotiate effectively with businesses.
Unlike in other areas of the economy where consumers
can comparison shop, or can understand at a glance if
a good or service is expensive or affordable, it is hard
for the consumer to know how much the consumer’s
information is worth to any given business when data
use practices vary so widely between businesses.
G. The state therefore has an interest in mandating
laws that will allow consumers to understand more
fully how their information is being used and for what
purposes. In the same way that ingredient labels on
foods help consumers shop more effectively,
disclosure around data management practices will
help consumers become more informed counterparties
in the data economy and promote competition.
Additionally, if a consumer can tell a business not to
sell the consumer’s data, then that consumer will not
have to scour a privacy policy to see whether the
business is, in fact, selling that data, and the resulting
savings in time is worth, in the aggregate, a
tremendous amount of money.
H. Consumers need stronger laws to place them on a
more equal footing when negotiating with businesses
in order to protect their rights. Consumers should be
entitled to a clear explanation of the uses of their
personal information, including how it is used for
advertising, and to control, correct, or delete it,
including by allowing consumers to limit businesses’
use of their sensitive personal information to help
guard against identity theft, to opt-out of the sale and
sharing of their personal information, and to request
that businesses correct inaccurate information about
them.
I. California is the world leader in many new
technologies that have reshaped our society. The world
today is unimaginable without the internet, one of the
most momentous inventions in human history, and the
new services and businesses that arose on top of it,
many of which were invented here in California. One
of the most successful business models for the
internet has been services that rely on advertising to
make money as opposed to charging consumers a fee.
Advertising-supported services have existed for
generations and can be a great model for consumers
and businesses alike. However, some advertising
businesses today use technologies and tools that are
opaque to consumers to collect and trade vast
amounts of personal information, to track them across
the internet, and to create detailed profiles of their
individual interests. Some companies that do not
charge consumers a fee, subsidize these services by
monetizing consumers’ personal information.
Consumers should have the information and tools
necessary to limit the use of their information to
noninvasive proprivacy advertising, where their
personal information is not sold to or shared with
hundreds of businesses they’ve never heard of, if they
choose to do so. Absent these tools, it will be virtually
impossible for consumers to fully understand these
contracts they are essentially entering into when they
interact with various businesses.
J. Children are particularly vulnerable from a
negotiating perspective with respect to their privacy
rights. Parents should be able to control what
information is collected and sold or shared about their
young children and should be given the right to
demand that companies erase information collected
about their children.
K. Business should also be held directly accountable
to consumers for data security breaches and notify
consumers when their most sensitive information has
been compromised.
L. An independent watchdog whose mission is to
protect consumer privacy should ensure that
businesses and consumers are well-informed about
their rights and obligations and should vigorously
enforce the law against businesses that violate
consumers’ privacy rights.
24
SEC. 3. Purpose and Intent.
In enacting this act, it is the purpose and intent of the
people of the State of California to further protect
consumers’ rights, including the constitutional right of
Text of Proposed Laws | 43
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
privacy. The implementation of this act shall be
guided by the following principles:
A. Consumer Rights
1. Consumers should know who is collecting their
personal information and that of their children, how it
is being used, and to whom it is disclosed so that they
have the information necessary to exercise meaningful
control over businesses’ use of their personal
information and that of their children.
2. Consumers should be able to control the use of their personal information, including limiting the use
of their sensitive personal information, the
unauthorized use or disclosure of which creates a
heightened risk of harm to the consumer, and they
should have meaningful options over how it is
collected, used, and disclosed.
3. Consumers should have access to their personal
information and should be able to correct it, delete it,
and take it with them from one business to another.
4. Consumers or their authorized agents should be
able to exercise these options through easily
accessible self-serve tools.
5. Consumers should be able to exercise these rights
without being penalized for doing so.
6. Consumers should be able to hold businesses
accountable for failing to take reasonable precautions
to protect their most sensitive personal information
from hackers and security breaches.
7. Consumers should benefit from businesses’ use of
their personal information.
8. The privacy interests of employees and
independent contractors should also be protected,
taking into account the differences in the relationship
between employees or independent contractors and
businesses as compared to the relationship between consumers and businesses. In addition, this law is not
intended to interfere with the right to organize and
collective bargaining under the National Labor
Relations Act. It is the purpose and intent of the Act
to extend the exemptions in this title for employee
and business to business communications until
January 1, 2023.
B. Responsibilities of Businesses
1. Businesses should specifically and clearly inform
consumers about how they collect and use personal
information and how they can exercise their rights and
choice.
24 2. Businesses should only collect consumers’
personal information for specific, explicit, and
legitimate disclosed purposes and should not further
collect, use, or disclose consumers’ personal
information for reasons incompatible with those
purposes.
3. Businesses should collect consumers’ personal
information only to the extent that it is relevant and
44 | Text of Proposed Laws
limited to what is necessary in relation to the purposes
for which it is being collected, used, and shared.
4. Businesses should provide consumers or their
authorized agents with easily accessible means to
allow consumers and their children to obtain their
personal information, to delete it or correct it, to opt
out of its sale and sharing across business platforms,
services, businesses, and devices, and to limit the use
of their sensitive personal information.
5. Businesses should not penalize consumers for
exercising these rights.
6. Businesses should take reasonable precautions to
protect consumers’ personal information from a
security breach.
7. Businesses should be held accountable when they
violate consumers’ privacy rights, and the penalties
should be higher when the violation affects children.
C. Implementation of the Law
1. The rights of consumers and the responsibilities of
businesses should be implemented with the goal of strengthening consumer privacy while giving attention
to the impact on business and innovation. Consumer privacy and the development of beneficial new
products and services are not necessarily incompatible goals. Strong consumer privacy rights create
incentives to innovate and develop new products that are privacy protective.
2. Businesses and consumers should be provided
with clear guidance about their responsibilities and
rights.
3. The law should place the consumer in a position to
knowingly and freely negotiate with a business over
the business’ use of the consumer’s personal
information.
4. The law should adjust to technological changes,
help consumers exercise their rights, and assist
businesses with compliance with the continuing goal
of strengthening consumer privacy.
5. The law should enable proconsumer new products
and services and promote efficiency of implementation
for business provided that the amendments do not
compromise or weaken consumer privacy.
6. The law should be amended, if necessary, to
improve its operation, provided that the amendments
do not compromise or weaken consumer privacy, while
giving attention to the impact on business and
innovation.
7. Businesses should be held accountable for
violating the law through vigorous administrative and
civil enforcement.
8. To the extent it advances consumer privacy and
business compliance, the law should be compatible
with privacy laws in other jurisdictions.
SEC. 4. Section 1798.100 of the Civil Code is
amended to read:
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
1798.100. General Duties of Businesses that
Collect Personal Information
1798.100. (a) A consumer shall have the right to
request that a business that collects a consumer’s
personal information disclose to that consumer the
categories and specific pieces of personal information
the business has collected.
(b) (a) A business that controls the collection of
collects a consumer’s personal information shall, at or
before the point of collection, inform consumers as to
the of the following:
(1) The categories of personal information to be
collected and the purposes for which the categories of
personal information are collected or used shall be
used and whether that information is sold or shared. A
business shall not collect additional categories of
personal information or use personal information
collected for additional purposes that are incompatible
with the disclosed purpose for which the personal
information was collected without providing the
consumer with notice consistent with this section.
(2) If the business collects sensitive personal
information, the categories of sensitive personal
information to be collected and the purposes for
which the categories of sensitive personal information
are collected or used, and whether that information is
sold or shared. A business shall not collect additional
categories of sensitive personal information or use
sensitive personal information collected for additional
purposes that are incompatible with the disclosed
purpose for which the sensitive personal information
was collected without providing the consumer with
notice consistent with this section.
(3) The length of time the business intends to retain
each category of personal information, including
sensitive personal information, or if that is not
possible, the criteria used to determine that period
provided that a business shall not retain a consumer’s
personal information or sensitive personal information
for each disclosed purpose for which the personal
information was collected for longer than is reasonably
necessary for that disclosed purpose.
(b) A business that, acting as a third party, controls
the collection of personal information about a
consumer may satisfy its obligation under subdivision
(a) by providing the required information prominently
and conspicuously on the homepage of its internet
website. In addition, if a business acting as a third
party controls the collection of personal information
about a consumer on its premises, including in a
vehicle, then the business shall, at or before the point
of collection, inform consumers as to the categories of
personal information to be collected and the purposes
for which the categories of personal information are
used, and whether that personal information is sold,
in a clear and conspicuous manner at the location.
(c) A business’ collection, use, retention, and sharing
of a consumer’s personal information shall be
reasonably necessary and proportionate to achieve the
purposes for which the personal information was
collected or processed, or for another disclosed
purpose that is compatible with the context in which
the personal information was collected, and not
further processed in a manner that is incompatible
with those purposes.
(d) A business that collects a consumer’s personal
information and that sells that personal information
to, or shares it with, a third party or that discloses it to
a service provider or contractor for a business purpose
shall enter into an agreement with the third party,
service provider, or contractor, that:
(1) Specifies that the personal information is sold or
disclosed by the business only for limited and
specified purposes.
(2) Obligates the third party, service provider, or
contractor to comply with applicable obligations under
this title and obligate those persons to provide the
same level of privacy protection as is required by this
title.
(3) Grants the business rights to take reasonable and
appropriate steps to help ensure that the third party,
service provider, or contractor uses the personal
information transferred in a manner consistent with
the business’ obligations under this title.
(4) Requires the third party, service provider, or
contractor to notify the business if it makes a
determination that it can no longer meet its
obligations under this title.
(5) Grants the business the right, upon notice, including under paragraph (4), to take reasonable and
appropriate steps to stop and remediate unauthorized
use of personal information.
(e) A business that collects a consumer’s personal
information shall implement reasonable security
procedures and practices appropriate to the nature of
the personal information to protect the personal information from unauthorized or illegal access,
destruction, use, modification, or disclosure in
accordance with Section 1798.81.5.
(f) Nothing in this section shall require a business to
disclose trade secrets, as specified in regulations
adopted pursuant to paragraph (3) of subdivision (a)
of Section 1798.185.
(c) A business shall provide the information specified
in subdivision (a) to a consumer only upon receipt of a
verifiable consumer request.
(d) A business that receives a verifiable consumer
request from a consumer to access personal
information shall promptly take steps to disclose and
deliver, free of charge to the consumer, the personal
information required by this section. The information
may be delivered by mail or electronically, and if
Text of Proposed Laws | 45
24
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
provided electronically, the information shall be in a
portable and, to the extent technically feasible, readily
useable format that allows the consumer to transmit
this information to another entity without hindrance. A
business may provide personal information to a
consumer at any time, but shall not be required to
provide personal information to a consumer more than
twice in a 12-month period.
(e) This section shall not require a business to retain
any personal information collected for a single, one-
time transaction, if such information is not sold or
retained by the business or to reidentify or otherwise
link information that is not maintained in a manner
that would be considered personal information.
SEC. 5. Section 1798.105 of the Civil Code is
amended to read:
1798.105. Consumers’ Right to Delete Personal
Information
1798.105. (a) A consumer shall have the right to
request that a business delete any personal
information about the consumer which the business
has collected from the consumer.
(b) A business that collects personal information
about consumers shall disclose, pursuant to Section
1798.130, the consumer’s rights to request the
deletion of the consumer’s personal information.
(c) (1) A business that receives a verifiable consumer
request from a consumer to delete the consumer’s
personal information pursuant to subdivision (a) of
this section shall delete the consumer’s personal
information from its records, and direct notify any
service providers or contractors to delete the
consumer’s personal information from their records,
and notify all third parties to whom the business has
sold or shared the personal information to delete the
consumer’s personal information unless this proves
impossible or involves disproportionate effort.
(2) The business may maintain a confidential record
of deletion requests solely for the purpose of
preventing the personal information of a consumer
who has submitted a deletion request from being sold,
for compliance with laws or for other purposes, solely
to the extent permissible under this title.
(3) A service provider or contractor shall cooperate
with the business in responding to a verifiable
consumer request, and at the direction of the
business, shall delete, or enable the business to
delete and shall notify any of its own service providers
or contractors to delete personal information about the
consumer collected, used, processed, or retained by
the service provider or the contractor. The service
provider or contractor shall notify any service
providers, contractors, or third parties who may have
accessed personal information from or through the
service provider or contractor, unless the information
was accessed at the direction of the business, to
delete the consumer’s personal information unless
24
46 | Text of Proposed Laws
this proves impossible or involves disproportionate
effort. A service provider or contractor shall not be
required to comply with a deletion request submitted
by the consumer directly to the service provider or
contractor to the extent that the service provider or
contractor has collected, used, processed, or retained
the consumer’s personal information in its role as a
service provider or contractor to the business.
(d) A business, or a service provider or contractor
acting pursuant to its contract with the business,
another service provider, or another contractor, shall
not be required to comply with a consumer’s request
to delete the consumer’s personal information if it is
reasonably necessary for the business, or service
provider, or contractor to maintain the consumer’s
personal information in order to:
(1) Complete the transaction for which the personal
information was collected, fulfill the terms of a written
warranty or product recall conducted in accordance
with federal law, provide a good or service requested
by the consumer, or reasonably anticipated by the
consumer within the context of a business’ ongoing
business relationship with the consumer, or otherwise
perform a contract between the business and the
consumer.
(2) Detect security incidents, protect against
malicious, deceptive, fraudulent, or illegal activity, or
prosecute those responsible for that activity. Help to
ensure security and integrity to the extent the use of
the consumer’s personal information is reasonably
necessary and proportionate for those purposes.
(3) Debug to identify and repair errors that impair
existing intended functionality.
(4) Exercise free speech, ensure the right of another
consumer to exercise that consumer’s right of free
speech, or exercise another right provided for by law.
(5) Comply with the California Electronic
Communications Privacy Act pursuant to Chapter 3.6
(commencing with Section 1546) of Title 12 of Part 2
of the Penal Code.
(6) Engage in public or peer-reviewed scientific,
historical, or statistical research in the public interest
that conforms or adheres to all other applicable ethics
and privacy laws, when the business’ deletion of the
information is likely to render impossible or seriously
impair the achievement of ability to complete such
research, if the consumer has provided informed
consent.
(7) To enable solely internal uses that are reasonably aligned with the expectations of the consumer based
on the consumer’s relationship with the business and
compatible with the context in which the consumer
provided the information.
(8) Comply with a legal obligation.
(9) Otherwise use the consumer’s personal
information, internally, in a lawful manner that is
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
compatible with the context in which the consumer
provided the information.
SEC. 6. Section 1798.106 is added to the Civil
Code, to read:
1798.106. Consumers’ Right to Correct Inaccurate
Personal Information
(a) A consumer shall have the right to request a
business that maintains inaccurate personal
information about the consumer to correct that
inaccurate personal information, taking into account
the nature of the personal information and the
purposes of the processing of the personal
information.
(b) A business that collects personal information
about consumers shall disclose, pursuant to Section
1798.130, the consumer’s right to request correction of inaccurate personal information.
(c) A business that receives a verifiable consumer request to correct inaccurate personal information
shall use commercially reasonable efforts to correct the inaccurate personal information as directed by the
consumer, pursuant to Section 1798.130 and regulations adopted pursuant to paragraph (8) of
subdivision (a) of Section 1798.185.
SEC. 7. Section 1798.110 of the Civil Code is
amended to read:
1798.110. Consumers’ Right to Know What
Personal Information is Being Collected. Right to
Access Personal Information
1798.110. (a) A consumer shall have the right to
request that a business that collects personal
information about the consumer disclose to the
consumer the following:
(1) The categories of personal information it has
collected about that consumer.
(2) The categories of sources from which the personal
information is collected.
(3) The business or commercial purpose for
collecting, or selling, or sharing personal information.
(4) The categories of third parties with to whom the
business shares discloses personal information.
(5) The specific pieces of personal information it has
collected about that consumer.
(b) A business that collects personal information
about a consumer shall disclose to the consumer,
pursuant to subparagraph (B) of paragraph (3) of
subdivision (a) of Section 1798.130, the information
specified in subdivision (a) upon receipt of a verifiable
consumer request from the consumer, provided that a
business shall be deemed to be in compliance with
paragraphs (1) to (4), inclusive, of subdivision (a) to the extent that the categories of information and the
business or commercial purpose for collecting, selling, or sharing personal information it would be required to
disclose to the consumer pursuant to paragraphs (1)
to (4), inclusive, of subdivision (a) is the same as the
information it has disclosed pursuant to paragraphs
(1) to (4), inclusive, of subdivision (c).
(c) A business that collects personal information
about consumers shall disclose, pursuant to
subparagraph (B) of paragraph (5) of subdivision (a)
of Section 1798.130:
(1) The categories of personal information it has
collected about consumers.
(2) The categories of sources from which the personal
information is collected.
(3) The business or commercial purpose for
collecting, or selling, or sharing personal information.
(4) The categories of third parties with to whom the
business shares discloses personal information.
(5) That a consumer has the right to request the specific pieces of personal information the business
has collected about that consumer.
(d) This section does not require a business to do the
folowing:
(1) Retain any personal information about a consumer
collected for a single one-time transaction if, in the
ordinary course of business, that information about
the consumer is not retained.
(2) Reidentify or otherwise link any data that, in the
ordinary course of business, is not maintained in a
manner that would be considered personal
information.
SEC. 8. Section 1798.115 of the Civil Code is
amended to read:
1798.115. Consumers’ Right to Know What
Personal Information is Sold or Shared and to Whom
1798.115. (a) A consumer shall have the right to
request that a business that sells or shares the
consumer’s personal information, or that discloses it
for a business purpose, disclose to that consumer:
(1) The categories of personal information that the
business collected about the consumer.
(2) The categories of personal information that the
business sold or shared about the consumer and the
categories of third parties to whom the personal
information was sold or shared, by category or
categories of personal information for each category of
third parties to whom the personal information was
sold or shared.
(3) The categories of personal information that the
business disclosed about the consumer for a business
purpose and the categories of persons to whom it was
disclosed for a business purpose.
24
(b) A business that sells or shares personal
information about a consumer, or that discloses a
consumer’s personal information for a business
purpose, shall disclose, pursuant to paragraph (4) of
subdivision (a) of Section 1798.130, the information
Text of Proposed Laws | 47
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
specified in subdivision (a) to the consumer upon
receipt of a verifiable consumer request from the
consumer.
(c) A business that sells or shares consumers’
personal information, or that discloses consumers’
personal information for a business purpose, shall
disclose, pursuant to subparagraph (C) of paragraph
(5) of subdivision (a) of Section 1798.130:
(1) The category or categories of consumers’ personal
information it has sold or shared, or if the business
has not sold or shared consumers’ personal
information, it shall disclose that fact.
(2) The category or categories of consumers’ personal
information it has disclosed for a business purpose, or
if the business has not disclosed the consumers’
personal information for a business purpose, it shall
disclose that fact.
(d) A third party shall not sell or share personal
information about a consumer that has been sold to,
or shared with, the third party by a business unless
the consumer has received explicit notice and is
provided an opportunity to exercise the right to opt-
out pursuant to Section 1798.120.
SEC. 9. Section 1798.120 of the Civil Code is
amended to read:
1798.120. Consumers’ Right to Opt Out of Sale or
Sharing of Personal Information
1798.120. (a) A consumer shall have the right, at
any time, to direct a business that sells or shares
personal information about the consumer to third
parties not to sell or share the consumer’s personal
information. This right may be referred to as the right
to opt-out of sale or sharing.
(b) A business that sells consumers’ personal
information to, or shares it with, third parties shall
provide notice to consumers, pursuant to subdivision
(a) of Section 1798.135, that this information may be
sold or shared and that consumers have the “right to
opt-out” of the sale or sharing of their personal
information.
(c) Notwithstanding subdivision (a), a business shall
not sell or share the personal information of
consumers if the business has actual knowledge that
the consumer is less than 16 years of age, unless the
consumer, in the case of consumers at least 13 years
of age and less than 16 years of age, or the consumer’s
parent or guardian, in the case of consumers who are
less than 13 years of age, has affirmatively authorized
the sale or sharing of the consumer’s personal
information. A business that willfully disregards the
consumer’s age shall be deemed to have had actual
knowledge of the consumer’s age. This right may be
referred to as the “right to opt-in.”
24
(d) A business that has received direction from a
consumer not to sell or share the consumer’s personal
information or, in the case of a minor consumer’s
48 | Text of Proposed Laws
personal information has not received consent to sell
or share the minor consumer’s personal information,
shall be prohibited, pursuant to paragraph (4) of
subdivision (a) (c) of Section 1798.135, from selling
or sharing the consumer’s personal information after
its receipt of the consumer’s direction, unless the
consumer subsequently provides express authorization
consent, for the sale or sharing of the consumer’s
personal information.
SEC. 10. Section 1798.121 is added to the Civil
Code, to read:
1798.121. Consumers’ Right to Limit Use and
Disclosure of Sensitive Personal Information
1798.121. (a) A consumer shall have the right, at
any time, to direct a business that collects sensitive
personal information about the consumer to limit its
use of the consumer’s sensitive personal information
to that use which is necessary to perform the services
or provide the goods reasonably expected by an
average consumer who requests those goods or
services, to perform the services set forth in
paragraphs (2), (4), (5), and (8) of subdivision (e) of
Section 1798.140, and as authorized by regulations
adopted pursuant to subparagraph (C) of paragraph
(19) of subdivision (a) of Section 1798.185. A
business that uses or discloses a consumer’s sensitive
personal information for purposes other than those
specified in this subdivision shall provide notice to
consumers, pursuant to subdivision (a) of Section
1798.135, that this information may be used, or
disclosed to a service provider or contractor, for
additional, specified purposes and that consumers
have the right to limit the use or disclosure of their
sensitive personal information.
(b) A business that has received direction from a
consumer not to use or disclose the consumer’s
sensitive personal information, except as authorized
by subdivision (a), shall be prohibited, pursuant to
paragraph (4) of subdivision (c) of Section 1798.135,
from using or disclosing the consumer’s sensitive
personal information for any other purpose after its
receipt of the consumer’s direction unless the
consumer subsequently provides consent for the use
or disclosure of the consumer’s sensitive personal
information for additional purposes.
(c) A service provider or contractor that assists a
business in performing the purposes authorized by
subdivision (a) may not use the sensitive personal
information after it has received instructions from the
business and to the extent it has actual knowledge
that the personal information is sensitive personal
information for any other purpose. A service provider
or contractor is only required to limit its use of
sensitive personal information received pursuant to a
written contract with the business in response to
instructions from the business and only with respect
to its relationship with that business.
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
(d) Sensitive personal information that is collected or
processed without the purpose of inferring
characteristics about a consumer is not subject to this
section, as further defined in regulations adopted
pursuant to subparagraph (C) of paragraph (19) of
subdivision (a) of Section 1798.185, and shall be
treated as personal information for purposes of all
other sections of this act, including Section
1798.100.
SEC. 11. Section 1798.125 of the Civil Code is
amended to read:
1798.125. Consumers’ Right of No Retaliation
Following Opt Out or Exercise of Other Rights
1798.125. (a) (1) A business shall not discriminate
against a consumer because the consumer exercised
any of the consumer’s rights under this title, including,
but not limited to, by:
(A) Denying goods or services to the consumer.
(B) Charging different prices or rates for goods or
services, including through the use of discounts or
other benefits or imposing penalties.
(C) Providing a different level or quality of goods or
services to the consumer.
(D) Suggesting that the consumer will receive a
different price or rate for goods or services or a
different level or quality of goods or services.
(E) Retaliating against an employee, applicant for
employment, or independent contractor, as defined in
subparagraph (A) of paragraph (2) of subdivision (m)
of Section 1798.145, for exercising their rights under this title.
(2) Nothing in this subdivision prohibits a business,
pursuant to subdivision (b), from charging a consumer
a different price or rate, or from providing a different
level or quality of goods or services to the consumer, if
that difference is reasonably related to the value
provided to the business by the consumer’s data.
(3) This subdivision does not prohibit a business from
offering loyalty, rewards, premium features, discounts,
or club card programs consistent with this title.
(b) (1) A business may offer financial incentives,
including payments to consumers as compensation,
for the collection of personal information, the sale or
sharing of personal information, or the deletion
retention of personal information. A business may also
offer a different price, rate, level, or quality of goods
or services to the consumer if that price or difference
is directly reasonably related to the value provided to
the business by the consumer’s data.
(2) A business that offers any financial incentives
pursuant to this subdivision, shall notify consumers of
the financial incentives pursuant to Section
1798.130.
(3) A business may enter a consumer into a financial
incentive program only if the consumer gives the
business prior opt-in consent pursuant to Section
1798.130 that clearly describes the material terms of
the financial incentive program, and which may be
revoked by the consumer at any time. If a consumer
refuses to provide opt-in consent, then the business
shall wait for at least 12 months before next
requesting that the consumer provide opt-in consent,
or as prescribed by regulations adopted pursuant to
Section 1798.185.
(4) A business shall not use financial incentive
practices that are unjust, unreasonable, coercive, or
usurious in nature.
SEC. 12. Section 1798.130 of the Civil Code is
amended to read:
1798.130. Notice, Disclosure, Correction, and
Deletion Requirements
1798.130 (a) In order to comply with Sections
1798.100, 1798.105, 1798.106, 1798.110,
1798.115, and 1798.125, a business shall, in a form
that is reasonably accessible to consumers:
(1) (A) Make available to consumers two or more
designated methods for submitting requests for
information required to be disclosed pursuant to
Sections 1798.110 and 1798.115, or requests for
deletion or correction pursuant to Sections 1798.105
and 1798.106, respectively, including, at a minimum,
a toll-free telephone number. A business that operates
exclusively online and has a direct relationship with a
consumer from whom it collects personal information
shall only be required to provide an email address for
submitting requests for information required to be
disclosed pursuant to Sections 1798.110 and
1798.115, or for requests for deletion or correction
pursuant to Sections 1798.105 and 1798.106,
respectively.
(B) If the business maintains an internet website,
make the internet website available to consumers to
submit requests for information required to be
disclosed pursuant to Sections 1798.110 and
1798.115, or requests for deletion or correction
pursuant to Sections 1798.105 and 1798.106,
respectively.
(2) (A) Disclose and deliver the required information
to a consumer free of charge, correct inaccurate
personal information, or delete a consumer’s personal
information, based on the consumer’s request, within
45 days of receiving a verifiable consumer request
from the consumer. The business shall promptly take
steps to determine whether the request is a verifiable
consumer request, but this shall not extend the
business’s duty to disclose and deliver the information,
to correct inaccurate personal information, or to delete
personal information within 45 days of receipt of the
consumer’s request. The time period to provide the
required information, to correct inaccurate personal information, or to delete personal information may be
extended once by an additional 45 days when
24
Text of Proposed Laws | 49
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
reasonably necessary, provided the consumer is
provided notice of the extension within the first 45-
day period. The disclosure of the required information
shall cover the 12-month period preceding the
business’s receipt of the verifiable consumer request
and shall be made in writing and delivered through
the consumer’s account with the business, if the
consumer maintains an account with the business, or
by mail or electronically at the consumer’s option if
the consumer does not maintain an account with the
business, in a readily useable format that allows the
consumer to transmit this information from one entity
to another entity without hindrance. The business may require authentication of the consumer that is
reasonable in light of the nature of the personal information requested, but shall not require the
consumer to create an account with the business in
order to make a verifiable consumer request provided
that If if the consumer, maintains has an account with
the business, the business may require the consumer
to submit the request through that account. use that
account to submit a verifiable consumer request.
(B) The disclosure of the required information shall
cover the 12-month period preceding the business’
receipt of the verifiable consumer request provided
that, upon the adoption of a regulation pursuant to
paragraph (9) of subdivision (a) of Section 1798.185,
a consumer may request that the business disclose
the required information beyond the 12-month period,
and the business shall be required to provide that
information unless doing so proves impossible or
would involve a disproportionate effort. A consumer’s
right to request required information beyond the
12-month period, and a business’s obligation to
provide that information, shall only apply to personal
information collected on or after January 1, 2022.
Nothing in this subparagraph shall require a business
to keep personal information for any length of time.
(3) (A) A business that receives a verifiable consumer
request pursuant to Section 1798.110 or 1798.115 shall disclose any personal information it has collected
about a consumer, directly or indirectly, including
through or by a service provider or contractor, to the
consumer. A service provider or contractor shall not be
required to comply with a verifiable consumer request
received directly from a consumer or a consumer’s
authorized agent, pursuant to Section 1798.110 or
1798.115, to the extent that the service provider or
contractor has collected personal information about
the consumer in its role as a service provider or
contractor. A service provider or contractor shall
provide assistance to a business with which it has a
contractual relationship with respect to the business’
response to a verifiable consumer request, including,
but not limited to, by providing to the business the
consumer’s personal information in the service
provider or contractor’s possession, which the service
provider or contractor obtained as a result of providing
services to the business, and by correcting inaccurate
24
50 | Text of Proposed Laws
information or by enabling the business to do the
same. A service provider or contractor that collects
personal information pursuant to a written contract
with a business shall be required to assist the
business through appropriate technical and
organizational measures in complying with the
requirements of subdivisions (d) to (f), inclusive, of
Section 1798.100, taking into account the nature of
the processing.
(B) For purposes of subdivision (b) of Section
1798.110:
(A) (i) To identify the consumer, associate the
information provided by the consumer in the verifiable
consumer request to any personal information
previously collected by the business about the
consumer.
(B) (ii) Identify by category or categories the personal
information collected about the consumer in the
preceding 12 months for the applicable period of time
by reference to the enumerated category or categories
in subdivision (c) that most closely describes the
personal information collected; the categories of
sources from which the consumer’s personal
information was collected; the business or commercial
purpose for collecting, selling, or sharing the
consumer’s personal information; and the categories
of third parties to whom the business discloses the
consumer’s personal information.
(iii) Provide the specific pieces of personal
information obtained from the consumer in a format
that is easily understandable to the average consumer,
and to the extent technically feasible, in a structured,
commonly used, machine-readable format that may
also be transmitted to another entity at the consumer’s
request without hindrance. “Specific pieces of
information” do not include data generated to help
ensure security and integrity or as prescribed by
regulation. Personal information is not considered to
have been disclosed by a business when a consumer
instructs a business to transfer the consumer’s
personal information from one business to another in
the context of switching services.
(4) For purposes of subdivision (b) of Section
1798.115:
(A) Identify the consumer and associate the
information provided by the consumer in the verifiable
consumer request to any personal information
previously collected by the business about the
consumer.
(B) Identify by category or categories the personal
information of the consumer that the business sold or
shared in the preceding 12 months during the
applicable period of time by reference to the
enumerated category in subdivision (c) that most
closely describes the personal information, and
provide the categories of third parties to whom the
consumer’s personal information was sold or shared in
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
the preceding 12 months during the applicable period
of time by reference to the enumerated category or
categories in subdivision (c) that most closely
describes the personal information sold or shared. The
business shall disclose the information in a list that is
separate from a list generated for the purposes of
subparagraph (C).
(C) Identify by category or categories the personal
information of the consumer that the business
disclosed for a business purpose in the preceding 12
months during the applicable period of time by
reference to the enumerated category or categories in subdivision (c) that most closely describes the
personal information, and provide the categories of
third parties persons to whom the consumer’s personal
information was disclosed for a business purpose in
the preceding 12 months during the applicable period
of time by reference to the enumerated category or
categories in subdivision (c) that most closely
describes the personal information disclosed. The
business shall disclose the information in a list that is
separate from a list generated for the purposes of
subparagraph (B).
(5) Disclose the following information in its online
privacy policy or policies if the business has an online
privacy policy or policies and in any California-specific
description of consumers’ privacy rights, or if the
business does not maintain those policies, on its
internet website, and update that information at least
once every 12 months:
(A) A description of a consumer’s rights pursuant to
Sections 1798.100, 1798.105, 1798.106,
1798.110, 1798.115, and 1798.125 and one two or
more designated methods for submitting requests,
except as provided in subparagraph (A) of paragraph
(1) of subdivision (a).
(B) For purposes of subdivision (c) of Section
1798.110,:
(i) a A list of the categories of personal information it
has collected about consumers in the preceding 12
months by reference to the enumerated category or
categories in subdivision (c) that most closely describe
the personal information collected.
(ii) The categories of sources from which consumers’
personal information is collected.
(iii) The business or commercial purpose for
collecting, selling, or sharing consumers’ personal
information.
(iv) The categories of third parties to whom the
business discloses consumers’ personal information.
(C) For purposes of paragraphs (1) and (2) of
subdivision (c) of Section 1798.115, two separate
lists:
(i) A list of the categories of personal information it
has sold or shared about consumers in the preceding
12 months by reference to the enumerated category or
categories in subdivision (c) that most closely describe
the personal information sold or shared, or if the
business has not sold or shared consumers’ personal
information in the preceding 12 months, the business
shall prominently disclose that fact in its privacy
policy.
(ii) A list of the categories of personal information it
has disclosed about consumers for a business purpose
in the preceding 12 months by reference to the
enumerated category in subdivision (c) that most
closely describe describes the personal information
disclosed, or if the business has not disclosed
consumers’ personal information for a business
purpose in the preceding 12 months, the business
shall disclose that fact.
(6) Ensure that all individuals responsible for
handling consumer inquiries about the business’
privacy practices or the business’ compliance with
this title are informed of all requirements in Sections
1798.100, 1798.105, 1798.106, 1798.110,
1798.115, 1798.125, and this section, and how to
direct consumers to exercise their rights under those
sections.
(7) Use any personal information collected from the
consumer in connection with the business’ verification
of the consumer’s request solely for the purposes of
verification and shall not further disclose the personal
information, retain it longer than necessary for
purposes of verification, or use it for unrelated
purposes.
(b) A business is not obligated to provide the
information required by Sections 1798.110 and
1798.115 to the same consumer more than twice in a
12-month period.
(c) The categories of personal information required to
be disclosed pursuant to Sections 1798.100,
1798.110, and 1798.115 shall follow the definition
definitions of personal information and sensitive
personal information in Section 1798.140 by
describing the categories of personal information
using the specific terms set forth in subparagraphs (A)
to (K), inclusive, of paragraph (1) of subdivision (v) of
Section 1798.140 and by describing the categories of
sensitive personal information using the specific terms
set forth in paragraphs (1) to (9), inclusive, of
subdivision (ae) of Section 1798.140.
SEC. 13. Section 1798.135 of the Civil Code is
amended to read:
1798.135. Methods of Limiting Sale, Sharing, and
Use of Personal Information and Use of Sensitive
Personal Information
24
1798.135 (a) A business that is required to comply
with Section 1798.120 sells or shares consumers’
personal information or uses or discloses consumers’
sensitive personal information for purposes other than
those authorized by subdivision (a) of Section
Text of Proposed Laws | 51
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
1798.121 shall, in a form that is reasonably
accessible to consumers:
(1) Provide a clear and conspicuous link on the
business’s Internet internet homepage homepages,
titled “Do Not Sell or Share My Personal Information,”
to an Internet Web page internet web page that
enables a consumer, or a person authorized by the
consumer, to opt-out of the sale or sharing of the
consumer’s personal information.
(2) Provide a clear and conspicuous link on the
business’ internet homepages, titled “Limit the Use of
My Sensitive Personal Information,” that enables a
consumer, or a person authorized by the consumer, to
limit the use or disclosure of the consumer’s sensitive
personal information to those uses authorized by
subdivision (a) of Section 1798.121.
(3) At the business’ discretion, utilize a single, clearly
labeled link on the business’ internet homepages, in
lieu of complying with paragraphs (1) and (2), if that
link easily allows a consumer to opt out of the sale or
sharing of the consumer’s personal information and to
limit the use or disclosure of the consumer’s sensitive
personal information.
(4) In the event that a business responds to opt-out
requests received pursuant to paragraph (1), (2), or
(3) by informing the consumer of a charge for the use
of any product or service, present the terms of any
financial incentive offered pursuant to subdivision (b)
of Section 1798.125 for the retention, use, sale, or
sharing of the consumer’s personal information.
(b) (1) A business shall not be required to comply
with subdivision (a) if the business allows consumers
to opt out of the sale or sharing of their personal
information and to limit the use of their sensitive
personal information through an opt-out preference
signal sent with the consumer’s consent by a platform,
technology, or mechanism, based on technical
specifications set forth in regulations adopted
pursuant to paragraph (20) of subdivision (a) of
Section 1798.185, to the business indicating the
consumer’s intent to opt out of the business’ sale or
sharing of the consumer’s personal information or to
limit the use or disclosure of the consumer’s sensitive
personal information, or both.
(2) A business that allows consumers to opt out of the
sale or sharing of their personal information and to
limit the use of their sensitive personal information
pursuant to paragraph (1) may provide a link to a web page that enables the consumer to consent to the
business ignoring the opt-out preference signal with
respect to that business’ sale or sharing of the
consumer’s personal information or the use of the
consumer’s sensitive personal information for
additional purposes provided that:
24
(A) The consent web page also allows the consumer
or a person authorized by the consumer to revoke the
consent as easily as it is affirmatively provided.
52 | Text of Proposed Laws
(B) The link to the web page does not degrade the
consumer’s experience on the web page the consumer
intends to visit and has a similar look, feel, and size
relative to other links on the same web page.
(C) The consent web page complies with technical
specifications set forth in regulations adopted
pursuant to paragraph (20) of subdivision (a) of
Section 1798.185.
(3) A business that complies with subdivision (a) is
not required to comply with subdivision (b). For the
purposes of clarity, a business may elect whether to
comply with subdivision (a) or subdivision (b).
(c) A business that is subject to this section shall:
(1) not Not require a consumer to create an account
or provide additional information beyond what is
necessary in order to direct the business not to sell or
share the consumer’s personal information or to limit
use or disclosure of the consumer’s sensitive personal
information.
(2) Include a description of a consumer’s rights
pursuant to Section Sections 1798.120 and
1798.121, along with a separate link to the “Do Not
Sell or Share My Personal Information” Internet Web
page internet web page and a separate link to the
“Limit the Use of My Sensitive Personal Information”
internet web page, if applicable, or a single link to
both choices, or a statement that the business
responds to and abides by opt-out preference signals
sent by a platform, technology, or mechanism in
accordance with subdivision (b), in:
(A) Its online privacy policy or policies if the business
has an online privacy policy or policies.
(B) Any California-specific description of consumers’
privacy rights.
(3) Ensure that all individuals responsible for
handling consumer inquiries about the business’s
privacy practices or the business’s compliance with
this title are informed of all requirements in Section
Sections 1798.120, 1798.121, and this section and
how to direct consumers to exercise their rights under
those sections.
(4) For consumers who exercise their right to opt-out
of the sale or sharing of their personal information or
limit the use or disclosure of their sensitive personal
information, refrain from selling or sharing the
consumer’s personal information or using or disclosing
the consumer’s sensitive personal information
collected by the business about the consumer and
wait for at least 12 months before requesting that the consumer authorize the sale or sharing of the
consumer’s personal information or the use and
disclosure of the consumer’s sensitive personal
information for additional purposes, or as authorized
by regulations.
(5) For a consumer who has opted-out of the sale of
the consumer’s personal information, respect the
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
consumer’s decision to opt-out for at least 12 months
before requesting that the consumer authorize the
sale of the consumer’s personal information
consumers under 16 years of age who do not consent
to the sale or sharing of their personal information,
refrain from selling or sharing the personal information
of the consumer under 16 years of age and wait for at
least 12 months before requesting the consumer’s
consent again, or as authorized by regulations or until
the consumer attains 16 years of age.
(6) Use any personal information collected from the
consumer in connection with the submission of the
consumer’s opt-out request solely for the purposes of
complying with the opt-out request.
(b) (d) Nothing in this title shall be construed to
require a business to comply with the title by
including the required links and text on the homepage
that the business makes available to the public
generally, if the business maintains a separate and
additional homepage that is dedicated to California
consumers and that includes the required links and
text, and the business takes reasonable steps to
ensure that California consumers are directed to the
homepage for California consumers and not the
homepage made available to the public generally.
(c) (e) A consumer may authorize another person
solely to opt-out of the sale or sharing of the
consumer’s personal information and to limit the use
of the consumer’s sensitive personal information on
the consumer’s behalf, including through an opt-out
preference signal, as defined in paragraph (1) of
subdivision (b), indicating the consumer’s intent to
opt out, and a business shall comply with an opt-out
request received from a person authorized by the
consumer to act on the consumer’s behalf, pursuant
to regulations adopted by the Attorney General
regardless of whether the business has elected to
comply with subdivision (a) or (b). For purposes of
clarity, a business that elects to comply with
subdivision (a) may respond to the consumer’s opt-out
consistent with Section 1798.125.
(f) If a business communicates a consumer’s opt-out
request to any person authorized by the business to
collect personal information, the person shall
thereafter only use that consumer’s personal
information for a business purpose specified by the
business, or as otherwise permitted by this title, and
shall be prohibited from:
(1) Selling or sharing the personal information.
(2) Retaining, using, or disclosing that consumer’s
personal information.
(A) For any purpose other than for the specific
purpose of performing the services offered to the
business.
(B) Outside of the direct business relationship
between the person and the business.
(C) For a commercial purpose other than providing
the services to the business.
(g) A business that communicates a consumer’s opt-
out request to a person pursuant to subdivision (f)
shall not be liable under this title if the person
receiving the opt-out request violates the restrictions
set forth in the title provided that, at the time of
communicating the opt-out request, the business does
not have actual knowledge, or reason to believe, that
the person intends to commit such a violation. Any
provision of a contract or agreement of any kind that
purports to waive or limit in any way this subdivision
shall be void and unenforceable.
SEC. 14. Section 1798.140 of the Civil Code is
amended to read:
1798.140. Definitions
1798.140. For purposes of this title:
(a) “Advertising and marketing” means a
communication by a business or a person acting on
the business’ behalf in any medium intended to
induce a consumer to obtain goods, services, or
employment.
(a) (b) “Aggregate consumer information” means
information that relates to a group or category of
consumers, from which individual consumer identities
have been removed, that is not linked or reasonably
linkable to any consumer or household, including via a
device. “Aggregate consumer information” does not
mean one or more individual consumer records that
have been deidentified.
(b) (c) “Biometric information” means an individual’s
physiological, biological or behavioral characteristics,
including information pertaining to an individual’s
deoxyribonucleic acid (DNA), that can be is used or is
intended to be used, singly or in combination with
each other or with other identifying data, to establish
individual identity. Biometric information includes,
but is not limited to, imagery of the iris, retina,
fingerprint, face, hand, palm, vein patterns, and voice
recordings, from which an identifier template, such as
a faceprint, a minutiae template, or a voiceprint, can
be extracted, and keystroke patterns or rhythms, gait
patterns or rhythms, and sleep, health, or exercise
data that contain identifying information.
(c) (d) “Business” means:
(1) A sole proprietorship, partnership, limited liability
company, corporation, association, or other legal entity
that is organized or operated for the profit or financial
benefit of its shareholders or other owners, that
collects consumers’ personal information, or on the
behalf of which such information is collected and that
alone, or jointly with others, determines the purposes
and means of the processing of consumers’ personal
information, that does business in the State of
California, and that satisfies one or more of the
following thresholds:
24
Text of Proposed Laws | 53
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
24
(A) Has As of January 1 of the calendar year, had
annual gross revenues in excess of twenty-five million
dollars ($25,000,000) in the preceding calendar year,
as adjusted pursuant to paragraph (5) of subdivision
(a) of Section 1798.185.
(B) Alone or in combination, annually buys, receives
for the business’s commercial purposes, sells, or
shares for commercial purposes, alone or in
combination, the personal information of 50,000
100,000 or more consumers or, households, or
devices.
(C) Derives 50 percent or more of its annual revenues
from selling or sharing consumers’ personal
information.
(2) Any entity that controls or is controlled by a
business, as defined in paragraph (1), and that shares
common branding with the business and with whom
the business shares consumers’ personal information.
“Control” or “controlled” means ownership of, or the
power to vote, more than 50 percent of the
outstanding shares of any class of voting security of a
business; control in any manner over the election of a
majority of the directors, or of individuals exercising
similar functions; or the power to exercise a controlling
influence over the management of a company.
“Common branding” means a shared name,
servicemark, or trademark that the average consumer
would understand that two or more entities are
commonly owned.
(3) A joint venture or partnership composed of
businesses in which each business has at least a 40
percent interest. For purposes of this title, the joint
venture or partnership and each business that
composes the joint venture or partnership shall
separately be considered a single business, except
that personal information in the possession of each
business and disclosed to the joint venture or
partnership shall not be shared with the other
business.
(4) A person that does business in California, that is
not covered by paragraph (1), (2), or (3) and that
voluntarily certifies to the California Privacy Protection
Agency that it is in compliance with, and agrees to be
bound by, this title.
(d) (e) “Business purpose” means the use of personal
information for the business’s or a service provider’s
operational purposes, or other notified purposes, or for
the service provider or contractor’s operational
purposes, as defined by regulations adopted pursuant
to paragraph (11) of subdivision (a) of Section
1798.185, provided that the use of personal
information shall be reasonably necessary and
proportionate to achieve the operational purpose for
which the personal information was collected or
processed or for another operational purpose that is
compatible with the context in which the personal
information was collected. Business purposes are:
(1) Auditing related to a current interaction with the
consumer and concurrent transactions, including, but
not limited to, counting ad impressions to unique
visitors, verifying positioning and quality of ad
impressions, and auditing compliance with this
specification and other standards.
(2) Detecting security incidents, protecting against
malicious, deceptive, fraudulent, or illegal activity,
and prosecuting those responsible for that activity.
Helping to ensure security and integrity to the extent
the use of the consumer’s personal information is
reasonably necessary and proportionate for these
purposes.
(3) Debugging to identify and repair errors that impair
existing intended functionality.
(4) Short-term, transient use, including, but not
limited to, nonpersonalized advertising shown as part
of a consumer’s current interaction with the business,
provided that the consumer’s personal information is
not disclosed to another third party and is not used to
build a profile about a the consumer or otherwise alter
an individual the consumer’s experience outside the
current interaction with the business., including, but
not limited to, the contextual customization of ads
shown as part of the same interaction.
(5) Performing services on behalf of the business, or
service provider, including maintaining or servicing
accounts, providing customer service, processing or
fulfilling orders and transactions, verifying customer
information, processing payments, providing
financing, providing advertising or marketing services,
providing analytic services, providing storage, or
providing similar services on behalf of the business or
service provider.
(6) Providing advertising and marketing services,
except for cross-context behavioral advertising, to the
consumer provided that, for the purpose of advertising
and marketing, a service provider or contractor shall
not combine the personal information of opted-out
consumers that the service provider or contractor
receives from, or on behalf of, the business with
personal information that the service provider or
contractor receives from, or on behalf of, another
person or persons or collects from its own interaction
with consumers.
(6) (7) Undertaking internal research for
technological development and demonstration.
(7) (8) Undertaking activities to verify or maintain
the quality or safety of a service or device that is
owned, manufactured, manufactured for, or controlled
by the business, and to improve, upgrade, or enhance
the service or device that is owned, manufactured,
manufactured for, or controlled by the business.
(e) (f) “Collects,” “collected,” or “collection” means
buying, renting, gathering, obtaining, receiving, or
accessing any personal information pertaining to a
consumer by any means. This includes receiving
54 | Text of Proposed Laws
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
information from the consumer, either actively or
passively, or by observing the consumer’s behavior.
(f) (g) “Commercial purposes” means to advance a
person’s commercial or economic interests, such as by
inducing another person to buy, rent, lease, join,
subscribe to, provide, or exchange products, goods,
property, information, or services, or enabling or
effecting, directly or indirectly, a commercial
transaction. “Commercial purposes” do not include
for the purpose of engaging in speech that state or
federal courts have recognized as noncommercial
speech, including political speech and journalism.
(h) “Consent” means any freely given, specific,
informed, and unambiguous indication of the
consumer’s wishes by which the consumer, or the
consumer’s legal guardian, a person who has power of
attorney, or a person acting as a conservator for the
consumer, including by a statement or by a clear
affirmative action, signifies agreement to the
processing of personal information relating to the
consumer for a narrowly defined particular purpose.
Acceptance of a general or broad terms of use, or
similar document, that contains descriptions of
personal information processing along with other,
unrelated information, does not constitute consent.
Hovering over, muting, pausing, or closing a given
piece of content does not constitute consent.
Likewise, agreement obtained through use of dark
patterns does not constitute consent.
(g) (i) “Consumer” means a natural person who is a
California resident, as defined in Section 17014 of
Title 18 of the California Code of Regulations, as that
section read on September 1, 2017, however
identified, including by any unique identifier.
(j) (1) “Contractor” means a person to whom the
business makes available a consumer’s personal
information for a business purpose, pursuant to a
written contract with the business, provided that the
contract:
(A) Prohibits the contractor from:
(i) Selling or sharing the personal information.
(ii) Retaining, using, or disclosing the personal
information for any purpose other than for the
business purposes specified in the contract, including
retaining, using, or disclosing the personal information
for a commercial purpose other than the business
purposes specified in the contract, or as otherwise
permitted by this title.
(iii) Retaining, using, or disclosing the information
outside of the direct business relationship between
the contractor and the business.
(iv) Combining the personal information that the
contractor receives pursuant to a written contract with
the business with personal information that it receives
from or on behalf of another person or persons, or
collects from its own interaction with the consumer,
provided that the contractor may combine personal
information to perform any business purpose as
defined in regulations adopted pursuant to paragraph
(10) of subdivision (a) of Section 1798.185, except
as provided for in paragraph (6) of subdivision (e) and
in regulations adopted by the California Privacy
Protection Agency.
(B) Includes a certification made by the contractor
that the contractor understands the restrictions in
subparagraph (A) and will comply with them.
(C) Permits, subject to agreement with the contractor,
the business to monitor the contractor’s compliance
with the contract through measures, including, but
not limited to, ongoing manual reviews and automated
scans and regular assessments, audits, or other
technical and operational testing at least once every
12 months.
(2) If a contractor engages any other person to assist
it in processing personal information for a business
purpose on behalf of the business, or if any other
person engaged by the contractor engages another
person to assist in processing personal information for
that business purpose, it shall notify the business of
that engagement, and the engagement shall be
pursuant to a written contract binding the other
person to observe all the requirements set forth in
paragraph (1).
(k) “Cross-context behavioral advertising” means the
targeting of advertising to a consumer based on the
consumer’s personal information obtained from the
consumer’s activity across businesses, distinctly-
branded websites, applications, or services, other than
the business, distinctly-branded website, application,
or service with which the consumer intentionally
interacts.
(l) “Dark pattern” means a user interface designed or
manipulated with the substantial effect of subverting
or impairing user autonomy, decisionmaking, or
choice, as further defined by regulation.
(h) (m) “Deidentified” means information that cannot
reasonably be used to infer information about, or
otherwise be linked to, a particular consumer provided
that the business that possesses the information:
(1) Takes reasonable measures to ensure that the
information cannot be associated with a consumer or
household.
(2) Publicly commits to maintain and use the
information in deidentified form and not to attempt to
reidentify the information, except that the business
may attempt to reidentify the information solely for
the purpose of determining whether its deidentification
processes satisfy the requirements of this subdivision.
24
(3) Contractually obligates any recipients of the
information to comply with all provisions of this
subdivision. identify, relate to, describe, be capable of
being associated with, or be linked, directly or
Text of Proposed Laws | 55
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
indirectly, to a particular consumer, provided that a
business that uses deidentified information:
(1) Has implemented technical safeguards that
prohibit reidentification of the consumer to whom the
information may pertain.
(2) Has implemented business processes that
specifically prohibit reidentification of the
information.
(3) Has implemented business processes to prevent
inadvertent release of deidentified information.
(4) Makes no attempt to reidentify the information.
(i) (n) “Designated methods for submitting requests”
means a mailing address, email address, internet web
page, internet web portal, toll-free telephone number,
or other applicable contact information, whereby
consumers may submit a request or direction under
this title, and any new, consumer-friendly means of
contacting a business, as approved by the Attorney
General pursuant to Section 1798.185.
(j) (o) “Device” means any physical object that is
capable of connecting to the Internet, directly or
indirectly, or to another device.
(k) “Health insurance information” means a
consumer’s insurance policy number or subscriber
identification number, any unique identifier used by a
health insurer to identify the consumer, or any
information in the consumer’s application and claims
history, including any appeals records, if the
information is linked or reasonably linkable to a
consumer or household, including via a device, by a
business or service provider.
(l) (p) “Homepage” means the introductory page of
an internet website and any internet web page where
personal information is collected. In the case of an
online service, such as a mobile application,
homepage means the application’s platform page or
download page, a link within the application, such as
from the application configuration, “About,”
“Information,’’ or settings page, and any other location
that allows consumers to review the notice notices
required by subdivision (a) of Section 1798.135 this
title, including, but not limited to, before downloading
the application.
(q) “Household” means a group, however identified,
of consumers who cohabitate with one another at the
same residential address and share use of common
devices or services.
24
(m) (r) “Infer” or “inference” means the derivation of information, data, assumptions, or conclusions from
facts, evidence, or another source of information or data.
(s) “Intentionally interacts” means when the consumer intends to interact with a person, or disclose
personal information to a person, via one or more deliberate interactions, including visiting the person’s
website or purchasing a good or service from the
56 | Text of Proposed Laws
person. Hovering over, muting, pausing, or closing a
given piece of content does not constitute a
consumer’s intent to interact with a person.
(t) “Nonpersonalized advertising” means advertising
and marketing that is based solely on a consumer’s
personal information derived from the consumer’s
current interaction with the business with the
exception of the consumer’s precise geolocation.
(n) (u) “Person” means an individual, proprietorship,
firm, partnership, joint venture, syndicate, business
trust, company, corporation, limited liability company,
association, committee, and any other organization or
group of persons acting in concert.
(o) (v) (1) “Personal information” means information that identifies, relates to, describes, is reasonably
capable of being associated with, or could reasonably be linked, directly or indirectly, with a particular
consumer or household. Personal information includes, but is not limited to, the following if it
identifies, relates to, describes, is reasonably capable of being associated with, or could be reasonably
linked, directly or indirectly, with a particular consumer or household:
(A) Identifiers such as a real name, alias, postal
address, unique personal identifier, online identifier,
Internet Protocol address, email address, account
name, social security number, driver’s license number,
passport number, or other similar identifiers.
(B) Any categories of personal information described
in subdivision (e) of Section 1798.80.
(C) Characteristics of protected classifications under
California or federal law.
(D) Commercial information, including records of
personal property, products or services purchased,
obtained, or considered, or other purchasing or
consuming histories or tendencies.
(E) Biometric information.
(F) Internet or other electronic network activity
information, including, but not limited to, browsing
history, search history, and information regarding a
consumer’s interaction with an internet website
application, or advertisement.
(G) Geolocation data.
(H) Audio, electronic, visual, thermal, olfactory, or
similar information.
(I) Professional or employment-related information.
(J) Education information, defined as information that
is not publicly available personally identifiable
information as defined in the Family Educational
Rights and Privacy Act (20 U.S.C. Sec. 1232g; 34
C.F.R. Part 99).
(K) Inferences drawn from any of the information
identified in this subdivision to create a profile about
a consumer reflecting the consumer’s preferences,
characteristics, psychological trends, predispositions,
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
behavior, attitudes, intelligence, abilities, and
aptitudes.
(L) Sensitive personal information.
(2) “Personal information” does not include publicly
available information or lawfully obtained, truthful
information that is a matter of public concern. For
purposes of this paragraph, “publicly available”
means: information that is lawfully made available
from federal, state, or local government records, or
information that a business has a reasonable basis to
believe is lawfully made available to the general public
by the consumer or from widely distributed media, or
by the consumer; or information made available by a
person to whom the consumer has disclosed the
information if the consumer has not restricted the
information to a specific audience. “Publicly
available” does not mean biometric information
collected by a business about a consumer without the
consumer’s knowledge.
(3) “Personal information” does not include consumer
information that is deidentified or aggregate consumer
information.
(w) “Precise geolocation” means any data that is
derived from a device and that is used or intended to
be used to locate a consumer within a geographic area
that is equal to or less than the area of a circle with a
radius of 1,850 feet, except as prescribed by
regulations.
(p) (x) “Probabilistic identifier” means the
identification of a consumer or a consumer’s device to
a degree of certainty of more probable than not based
on any categories of personal information included in,
or similar to, the categories enumerated in the
definition of personal information.
(q) (y) “Processing” means any operation or set of
operations that are performed on personal data
information or on sets of personal data information,
whether or not by automated means.
(z) “Profiling” means any form of automated
processing of personal information, as further defined
by regulations pursuant to paragraph (16) of
subdivision (a) of Section 1798.185, to evaluate
certain personal aspects relating to a natural person
and in particular to analyze or predict aspects
concerning that natural person’s performance at work,
economic situation, health, personal preferences,
interests, reliability, behavior, location, or movements.
(r) (aa) “Pseudonymize” or “Pseudonymization”
means the processing of personal information in a
manner that renders the personal information no
longer attributable to a specific consumer without the
use of additional information, provided that the
additional information is kept separately and is
subject to technical and organizational measures to
ensure that the personal information is not attributed
to an identified or identifiable consumer.
(s) (ab) “Research” means scientific analysis,
systematic study and observation, including basic
research or applied research that is designed to
develop or contribute to public or scientific knowledge
in the public interest and that adheres or otherwise
conforms to all other applicable ethics and privacy
laws, or including, but not limited to, studies
conducted in the public interest in the area of public
health. Research with personal information that may
have been collected from a consumer in the course of
the consumer’s interactions with a business’s service
or device for other purposes shall be:
(1) Compatible with the business purpose for which
the personal information was collected.
(2) Subsequently pseudonymized and deidentified, or
deidentified and in the aggregate, such that the information cannot reasonably identify, relate to,
describe, be capable of being associated with, or be linked, directly or indirectly, to a particular consumer,
by a business.
(3) Made subject to technical safeguards that prohibit
reidentification of the consumer to whom the information may pertain, other than as needed to
support the research.
(4) Subject to business processes that specifically
prohibit reidentification of the information, other than
as needed to support the research.
(5) Made subject to business processes to prevent
inadvertent release of deidentified information.
(6) Protected from any reidentification attempts.
(7) Used solely for research purposes that are
compatible with the context in which the personal
information was collected.
(8) Not be used for any connercial purpose.
(9) Subjected by the business conducting the
research to additional security controls that limit
access to the research data to only those individuals
in a business as are necessary to carry out the
research purpose.
(ac) “Security and integrity” means the ability of:
(1) Networks or information systems to detect security
incidents that compromise the availability,
authenticity, integrity, and confidentiality of stored or
transmitted personal information.
(2) Businesses to detect security incidents, resist
malicious, deceptive, fraudulent, or illegal actions and
to help prosecute those responsible for those actions.
(3) Businesses to ensure the physical safety of natural
persons.
(t) (ad) (1) “Sell,” “selling,” “sale,” or “sold,’’
means selling, renting, releasing, disclosing, disseminating, making available, transferring, or
otherwise communicating orally, in writing, or by electronic or other means, a consumer’s personal
information by the business to another business or a
Text of Proposed Laws | 57
24
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
third party for monetary or other valuable
consideration.
(2) For purposes of this title, a business does not sell
personal information when:
(A) A consumer uses or directs the business to
intentionally:
(i) Disclose personal information.
(ii) Uses the business to intentionally Interact with a
one or more third party parties. provided the third
party does not also sell the personal information,
unless that disclosure would be consistent with the
provisions of this title. An intentional interaction
occurs when the consumer intends to interact with the
third party, via one or more deliberate interactions.
Hovering over, muting, pausing, or closing a given
piece of content does not constitute a consumer's
intent to interact with a third party.
(B) The business uses or shares an identifier for a
consumer who has opted out of the sale of the
consumer’s personal information or limited the use of
the consumer’s sensitive personal information for the
purposes of alerting third parties persons that the
consumer has opted out of the sale of the consumer’s
personal information or limited the use of the
consumer’s sensitive personal information.
(C) The business uses or shares with a service
provider personal information of a consumer that is
necessary to perform a business purpose if both of the
following conditions are met:
(i) The business has provided notice of that
information being used or shared in its terms and
conditions consistent with Section 1798.135.
(ii) The service provider does not further collect, sell,
or use the personal information of the consumer
except as necessary to perform the business purpose.
(D) (C) The business transfers to a third party the
personal information of a consumer as an asset that is
part of a merger, acquisition, bankruptcy, or other
transaction in which the third party assumes control
of all or part of the business, provided that information
is used or shared consistently with Sections 1798.110
and 1798.115 this title. If a third party materially
alters how it uses or shares the personal information
of a consumer in a manner that is materially
inconsistent with the promises made at the time of
collection, it shall provide prior notice of the new or
changed practice to the consumer. The notice shall be
sufficiently prominent and robust to ensure that
existing consumers can easily exercise their choices
consistently with Section 1798.120 this title. This
subparagraph does not authorize a business to make
material, retroactive privacy policy changes or make
other changes in their privacy policy in a manner that
would violate the Unfair and Deceptive Practices Act
(Chapter 5 (commencing with Section 17200) of Part
2 of Division 7 of the Business and Professions Code).
24
58 | Text of Proposed Laws
(ae) “Sensitive personal information” means:
(1) Personal information that reveals:
(A) A consumer’s social security, driver’s license, state
identification card, or passport number.
(B) A consumer’s account log-in, financial account,
debit card, or credit card number in combination with
any required security or access code, password, or
credentials allowing access to an account.
(C) A consumer’s precise geolocation.
(D) A consumer’s racial or ethnic origin, religious or philosophical beliefs, or union membership.
(E) The contents of a consumer’s mail, email, and text messages unless the business is the intended
recipient of the communication.
(F) A consumer’s genetic data.
(2) (A) The processing of biometric information for
the purpose of uniquely identifying a consumer.
(B) Personal information collected and analyzed
concerning a consumer’s health.
(C) Personal information collected and analyzed
concerning a consumer’s sex life or sexual orientation.
(3) Sensitive personal information that is “publicly
available” pursuant to paragraph (2) of subdivision (v)
shall not be considered sensitive personal information
or personal information.
(u) (af) “Service” or “services” means work, labor,
and services, including services furnished in
connection with the sale or repair of goods.
(v) (ag) (1) “Service provider” means a sole proprietorship, partnership, limited liability company,
corporation, association, or other legal entity that is organized or operated for the profit or financial benefit
of its shareholders or other owners, person that processes personal information on behalf of a business
and to which that receives from or on behalf of the
business discloses a consumer’s personal information
for a business purpose pursuant to a written contract,
provided that the contract prohibits the entity
receiving the information person from:
(A) Selling or sharing the personal information.
(B) Retaining, using, or disclosing the personal
information for any purpose other than for the specific
purpose of performing the services business purposes
specified in the contract for the business, or as
otherwise permitted by this title, including retaining,
using, or disclosing the personal information for a
commercial purpose other than providing the services
the business purposes specified in the contract with
the business, or as otherwise permitted by this title.
(C) Retaining, using, or disclosing the information
outside of the direct business relationship between
the service provider and the business.
(D) Combining the personal information that the
service provider receives from, or on behalf of, the
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
business with personal information that it receives
from, or on behalf of, another person or persons, or
collects from its own interaction with the consumer,
provided that the service provider may combine
personal information to perform any business purpose
as defined in regulations adopted pursuant to
paragraph (10) of subdivision (a) of Section
1798.185, except as provided for in paragraph (6) of
subdivision (e) of this section and in regulations
adopted by the California Privacy Protection Agency.
The contract may, subject to agreement with the
service provider, permit the business to monitor the
service provider’s compliance with the contract
through measures, including, but not limited to,
ongoing manual reviews and automated scans and
regular assessments, audits, or other technical and
operational testing at least once every 12 months.
(2) If a service provider engages any other person to
assist it in processing personal information for a
business purpose on behalf of the business, or if any
other person engaged by the service provider engages
another person to assist in processing personal
information for that business purpose, it shall notify
the business of that engagement, and the engagement
shall be pursuant to a written contract binding the
other person to observe all the requirements set forth
in paragraph (1).
(ah) (1) “Share,” “shared,” or “sharing” means
sharing, renting, releasing, disclosing, disseminating,
making available, transferring, or otherwise
communicating orally, in writing, or by electronic or
other means, a consumer’s personal information by
the business to a third party for cross-context
behavioral advertising, whether or not for monetary or
other valuable consideration, including transactions
between a business and a third party for cross-context
behavioral advertising for the benefit of a business in
which no money is exchanged.
(2) For purposes of this title, a business does not
share personal information when:
(A) A consumer uses or directs the business to
intentionally disclose personal information or
intentionally interact with one or more third parties.
(B) The business uses or shares an identifier for a
consumer who has opted out of the sharing of the
consumer’s personal information or limited the use of
the consumer’s sensitive personal information for the
purposes of alerting persons that the consumer has
opted out of the sharing of the consumer’s personal
information or limited the use of the consumer’s
sensitive personal information.
(C) The business transfers to a third party the
personal information of a consumer as an asset that is
part of a merger, acquisition, bankruptcy, or other
transaction in which the third party assumes control
of all or part of the business, provided that information
is used or shared consistently with this title. If a third
party materially alters how it uses or shares the
personal information of a consumer in a manner that
is materially inconsistent with the promises made at
the time of collection, it shall provide prior notice of
the new or changed practice to the consumer. The
notice shall be sufficiently prominent and robust to
ensure that existing consumers can easily exercise
their choices consistently with this title. This
subparagraph does not authorize a business to make
material, retroactive privacy policy changes or make
other changes in their privacy policy in a manner that
would violate the Unfair and Deceptive Practices Act
(Chapter 5 (commencing with Section 17200) of Part
2 of Division 7 of the Business and Professions Code).
(w) (ai) “Third party” means a person who is not any
of the following:
(1) The business with whom the consumer
intentionally interacts and that collects personal
information from the consumer as part of the
consumer’s current interaction with the business
consumers under this title.
(2) A service provider to the business.
(3) A contractor.
(A) A person to whom the business discloses a
consumer’s personal information for a business
purpose pursuant to a written contract, provided that
the contract:
(i) Prohibits the person receiving the personal
information from:
(I) Selling the personal information.
(II) Retaining, using, or disclosing the personal
information for any purpose other than for the specific
purpose of performing the services specified in the
contract, including retaining, using, or disclosing the
personal information for a commercial purpose other
than providing the services specified in the contract.
(III) Retaining, using, or disclosing the information
outside of the direct business relationship between
the person and the business.
(ii) Includes a certification made by the person
receiving the personal information that the person
understands the restrictions in subparagraph (A) and
will comply with them.
(B) A person covered by this paragraph that violates
any of the restrictions set forth in this title shall be
liable for the violations. A business that discloses
personal information to a person covered by this
paragraph in compliance with this paragraph shall not
be liable under this title if the person receiving the
personal information uses it in violation of the
restrictions set forth in this title, provided that, at the
time of disclosing the personal information, the
business does not have actual knowledge, or reason to
believe, that the person intends to commit such a
violation.
24
Text of Proposed Laws | 59
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
24
(x) (aj) “Unique identifier” or “Unique personal
identifier” means a persistent identifier that can be
used to recognize a consumer, a family, or a device
that is linked to a consumer or family, over time and
across different services, including, but not limited to,
a device identifier; an Internet Protocol address;
cookies, beacons, pixel tags, mobile ad identifiers, or
similar technology; customer number, unique
pseudonym, or user alias; telephone numbers, or other
forms of persistent or probabilistic identifiers that can
be used to identify a particular consumer or device
that is linked to a consumer or family. For purposes of
this subdivision, “family” means a custodial parent or
guardian and any minor children under 18 years of
age over which the parent or guardian has custody.
(y) (ak) “Verifiable consumer request” means a
request that is made by a consumer, by a consumer
on behalf of the consumer’s minor child, or by a
natural person or a person registered with the
Secretary of State, authorized by the consumer to act
on the consumer’s behalf, or by a person who has
power of attorney or is acting as a conservator for the
consumer, and that the business can reasonably verify,
using commercially reasonable methods, pursuant to
regulations adopted by the Attorney General pursuant
to paragraph (7) of subdivision (a) of Section
1798.185 to be the consumer about whom the
business has collected personal information. A
business is not obligated to provide information to the
consumer pursuant to Sections 1798.110 and
1798.115, to delete personal information pursuant to
Section 1798.105, or to correct inaccurate personal
information pursuant to Section 1798.106, if the
business cannot verify, pursuant to this subdivision
and regulations adopted by the Attorney General
pursuant to paragraph (7) of subdivision (a) of Section
1798.185, that the consumer making the request is
the consumer about whom the business has collected
information or is a person authorized by the consumer
to act on such consumer’s behalf.
SEC. 15. Section 1798.145 of the Civil Code is
amended to read:
1798.145. Exemptions
1798.145. (a) The obligations imposed on businesses
by this title shall not restrict a business’s ability to:
(1) Comply with federal, state, or local laws or comply
with a court order or subpoena to provide information.
(2) Comply with a civil, criminal, or regulatory inquiry,
investigation, subpoena, or summons by federal, state,
or local authorities. Law enforcement agencies,
including police and sheriff’s departments, may direct
a business pursuant to a law enforcement agency-
approved investigation with an active case number not
to delete a consumer’s personal information, and upon
receipt of that direction, a business shall not delete
the personal information for 90 days in order to allow
the law enforcement agency to obtain a court-issued
subpoena, order, or warrant to obtain a consumer’s
personal information. For good cause and only to the
extent necessary for investigatory purposes, a law
enforcement agency may direct a business not to
delete the consumer’s personal information for
additional 90-day periods. A business that has
received direction from a law enforcement agency not
to delete the personal information of a consumer who
has requested deletion of the consumer’s personal
information shall not use the consumer’s personal
information for any purpose other than retaining it to
produce to law enforcement in response to a court-
issued subpoena, order, or warrant unless the
consumer’s deletion request is subject to an
exemption from deletion under this title.
(3) Cooperate with law enforcement agencies
concerning conduct or activity that the business,
service provider, or third party reasonably and in good
faith believes may violate federal, state, or local law.
(4) Cooperate with a government agency request for
emergency access to a consumer’s personal
information if a natural person is at risk or danger of
death or serious physical injury provided that:
(A) The request is approved by a high-ranking agency
officer for emergency access to a consumer’s personal
information.
(B) The request is based on the agency’s good faith
determination that it has a lawful basis to access the
information on a nonemergency basis.
(C) The agency agrees to petition a court for an
appropriate order within three days and to destroy the
information if that order is not granted.
(4) (5) Exercise or defend legal claims.
(5) (6) Collect, use, retain, sell, share, or disclose
consumer consumers’ personal information that is
deidentified or in the aggregate consumer information.
(6) (7) Collect, or sell, or share a consumer’s personal
information if every aspect of that commercial conduct
takes place wholly outside of California. For purposes
of this title, commercial conduct takes place wholly
outside of California if the business collected that
information while the consumer was outside of
California, no part of the sale of the consumer’s
personal information occurred in California, and no
personal information collected while the consumer
was in California is sold. This paragraph shall not
permit prohibit a business from storing, including on a
device, personal information about a consumer when
the consumer is in California and then collecting that
personal information when the consumer and stored
personal information is outside of California.
(b) The obligations imposed on businesses by
Sections 1798.110, 1798.115, 1798.120,
1798.121, 1798.130, and to 1798.135, inclusive,
shall not apply where compliance by the business with
the title would violate an evidentiary privilege under
60 | Text of Proposed Laws
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
California law and shall not prevent a business from
providing the personal information of a consumer to a
person covered by an evidentiary privilege under
California law as part of a privileged communication.
(c) (1) This title shall not apply to any of the
following:
(A) Medical information governed by the
Confidentiality of Medical Information Act (Part 2.6
(commencing with Section 56) of Division 1) or
protected health information that is collected by a
covered entity or business associate governed by the
privacy, security, and breach notification rules issued
by the United States Department of Health and
Human Services, Parts 160 and 164 of Title 45 of the
Code of Federal Regulations, established pursuant to
the Health Insurance Portability and Accountability
Act of 1996 (Public Law 104-191) and the Health
Information Technology for Economic and Clinical
Health Act (Public Law 111-5).
(B) A provider of health care governed by the
Confidentiality of Medical Information Act (Part 2.6
(commencing with Section 56) of Division 1) or a
covered entity governed by the privacy, security, and
breach notification rules issued by the United States
Department of Health and Human Services, Parts 160
and 164 of Title 45 of the Code of Federal
Regulations, established pursuant to the Health
Insurance Portability and Accountability Act of 1996
(Public Law 104-191), to the extent the provider or
covered entity maintains patient information in the
same manner as medical information or protected
health information as described in subparagraph (A)
of this section.
(C) Personal Information information collected as part
of a clinical trial or other biomedical research study
subject to, or conducted in accordance with, the
Federal Policy for the Protection of Human Subjects,
also known as the Common Rule, pursuant to good
clinical practice guidelines issued by the International
Council for Harmonisation or pursuant to human
subject protection requirements of the United States
Food and Drug Administration, provided that the
information is not sold or shared in a manner not
permitted by this subparagraph, and if it is
inconsistent, that participants be informed of that use
and provide consent.
(2) For purposes of this subdivision, the definitions of
“medical information” and “provider of health care”
in Section 56.05 shall apply and the definitions of
“business associate,” “covered entity,” and “protected
health information” in Section 160.103 of Title 45 of
the Code of Federal Regulations shall apply.
(d) (1) This title shall not apply to an activity involving
the collection, maintenance, disclosure, sale,
communication, or use of any personal information
bearing on a consumer’s credit worthiness, credit
standing, credit capacity, character, general
reputation, personal characteristics, or mode of living
by a consumer reporting agency, as defined in
subdivision (f) of Section 1681a of Title 15 of the
United States Code, by a furnisher of information, as
set forth in Section 1681s-2 of Title 15 of the United
States Code, who provides information for use in a
consumer report, as defined in subdivision (d) of
Section 1681a of Title 15 of the United States Code,
and by a user of a consumer report as set forth in
Section 1681b of Title 15 of the United States Code.
(2) Paragraph (1) shall apply only to the extent that
such activity involving the collection, maintenance,
disclosure, sale, communication or use of such
information by that agency, furnisher, or user is
subject to regulation under the Fair Credit Reporting
Act, section 1681 et seq., Title 15 of the United
States Code and the information is not collected,
maintained, used, communicated, disclosed, or sold
except as authorized by the Fair Credit Reporting Act.
(3) This subdivision shall not apply to Section
1798.150.
(e) This title shall not apply to personal information
collected, processed, sold, or disclosed pursuant
subject to the federal Gramm-Leach-Bliley Act (Public
Law 106-102), and implementing regulations, or the
California Financial Information Privacy Act (Division
1.4 (commencing with Section 4050) of the Financial
Code), or the federal Farm Credit Act of 1971 (as
amended in 12 U.S.C. 2001-2279cc and
implementing regulations, 12 C.F.R. 600, et seq.).
This subdivision shall not apply to Section 1798.150.
(f) This title shall not apply to personal information
collected, processed, sold, or disclosed pursuant to
the Driver’s Privacy Protection Act of 1994 (18 U.S.C.
Sec. 2721 et seq.). This subdivision shall not apply to
Section 1798.150.
(g) (1) Section 1798.120 shall not apply to vehicle
information or ownership information retained or
shared between a new motor vehicle dealer, as defined
in Section 426 of the Vehicle Code, and the vehicle’s
manufacturer, as defined in Section 672 of the
Vehicle Code, if the vehicle or ownership information
is shared for the purpose of effectuating, or in
anticipation of effectuating, a vehicle repair covered
by a vehicle warranty or a recall conducted pursuant
to Sections 30118 to 30120, inclusive, of Title 49 of
the United States Code, provided that the new motor
vehicle dealer or vehicle manufacturer with which that
vehicle information or ownership information is shared
does not sell, share, or use that information for any
other purpose.
(2) For purposes of this subdivision:
(A) “Vehicle information” means the vehicle
information number, make, model, year, and odometer
reading.
24
Text of Proposed Laws | 61
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
(B) “Ownership information” means the name or
names of the registered owner or owners and the
contact information for the owner or owners.
(h) (1) This title shall not apply to any of the
following:
(A) Personal information that is collected by a
business about a natural person in the course of the
natural person acting as a job applicant to, an
employee of, owner of, director of, officer of, medical
staff member of, or contractor of that business to the
extent that the natural person’s personal information
is collected and used by the business solely within the
context of the natural person’s role or former role as a
job applicant to, an employee of, owner of, director of,
officer of, medical staff member of, or a contractor of
that business.
(B) Personal information that is collected by a
business that is emergency contact information of the
natural person acting as a job applicant to, an
employee of, owner of, director of, officer of, medical
staff member of, or contractor of that business to the
extent that the personal information is collected and
used solely within the context of having an emergency
contact on file.
(C) Personal information that is necessary for the
business to retain to administer benefits for another
natural person relating to the natural person acting as
a job applicant to, an employee of, owner of, director
of, officer of, medical staff member of, or contractor
of that business to the extent that the personal
information is collected and used solely within the
context of administering those benefits.
(2) For purposes of this subdivision:
(A) “Contractor” means a natural person who provides
any service to a business pursuant to a written
contract.
(B) “Director” means a natural person designated in
the articles of incorporation as such or elected by the
incorporators and natural persons designated, elected,
or appointed by any other name or title to act as
directors, and their successors.
(C) “Medical staff member” means a licensed
physician and surgeon, dentist, or podiatrist, licensed
pursuant to Division 2 (commencing with Section
500) of the Business and Professions Code and a
clinical psychologist as defined in Section 1316.5 of
the Health and Safety Code.
24
(D) “Officer” means a natural person elected or appointed by the board of directors to manage the
daily operations of a corporation, such as a chief executive officer, president, secretary, or treasurer.
(E) “Owner” means a natural person who meets one of the following:
(i) Has ownership of, or the power to vote, more than 50 percent of the outstanding shares of any class of
voting security of a business.
62 | Text of Proposed Laws
(ii) Has control in any manner over the election of a
majority of the directors or of individuals exercising
similar functions.
(iii) Has the power to exercise a controlling influence
over the management of a company.
(3) This subdivision shall not apply to subdivision (b)
of Section 1798.100 or Section 1798.150.
(4) This subdivision shall become inoperative on
January 1, 2021.
(i) (h) Notwithstanding a business’s obligations to
respond to and honor consumer rights requests
pursuant to this title:
(1) A time period for a business to respond to a
consumer for any verified verifiable consumer request
may be extended by up to a total of 90 additional days
where necessary, taking into account the complexity
and number of the requests. The business shall inform
the consumer of any such extension within 45 days of
receipt of the request, together with the reasons for
the delay.
(2) If the business does not take action on the request
of the consumer, the business shall inform the
consumer, without delay and at the latest within the
time period permitted of response by this section, of
the reasons for not taking action and any rights the
consumer may have to appeal the decision to the
business.
(3) If requests from a consumer are manifestly
unfounded or excessive, in particular because of their
repetitive character, a business may either charge a
reasonable fee, taking into account the administrative
costs of providing the information or communication
or taking the action requested, or refuse to act on the
request and notify the consumer of the reason for
refusing the request. The business shall bear the
burden of demonstrating that any verified verifiable
consumer request is manifestly unfounded or
excessive.
(j) (i) (1) A business that discloses personal
information to a service provider or contractor in
compliance with this title shall not be liable under
this title if the service provider or contractor receiving
the personal information uses it in violation of the
restrictions set forth in the title, provided that, at the
time of disclosing the personal information, the
business does not have actual knowledge, or reason to
believe, that the service provider or contractor intends
to commit such a violation. A service provider or
contractor shall likewise not be liable under this title
for the obligations of a business for which it provides
services as set forth in this title provided that the
service provider or contractor shall be liable for its
own violations of this title.
(2) A business that discloses personal information of
a consumer, with the exception of consumers who
have exercised their right to opt out of the sale or
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
sharing of their personal information, consumers who
have limited the use or disclosure of their sensitive
personal information, and minor consumers who have
not opted in to the collection or sale of their personal
information, to a third party pursuant to a written
contract that requires the third party to provide the
same level of protection of the consumer’s rights
under this title as provided by the business shall not
be liable under this title if the third party receiving the
personal information uses it in violation of the
restrictions set forth in this title provided that, at the
time of disclosing the personal information, the
business does not have actual knowledge, or reason to
believe, that the third party intends to commit such a
violation.
(k) (j) This title shall not be construed to require a
business to collect personal information that it would
not otherwise collect in the ordinary course of its
business, retain personal information for longer than it
would otherwise retain such information in the
ordinary course of its business, or, service provider, or
contractor to:
(1) Reidentify or otherwise link information that, in
the ordinary course of business, is not maintained in a
manner that would be considered personal
information.
(2) Retain any personal information about a consumer
if, in the ordinary course of business, that information
about the consumer would not be retained.
(3) Maintain information in identifiable, linkable, or
associable form, or collect, obtain, retain, or access
any data or technology, in order to be capable of
linking or associating a verifiable consumer request
with personal information.
(l) (k) The rights afforded to consumers and the
obligations imposed on the business in this title shall
not adversely affect the rights and freedoms of other
consumers natural persons. A verifiable consumer
request for specific pieces of personal information,
pursuant to Section 1798.110 to delete a consumer’s
personal information, pursuant to Section 1798.105,
or to correct inaccurate personal information, pursuant
to Section 1798.106, shall not extend to personal
information about the consumer that belongs to, or
the business maintains on behalf of, another natural
person. A business may rely on representations made
in a verifiable consumer request as to rights with
respect to personal information and is under no legal
requirement to seek out other persons that may have
or claim to have rights to personal information, and a
business is under no legal obligation under this title or
any other provision of law to take any action under
this title in the event of a dispute between or among
persons claiming rights to personal information in the
business’ possession.
(m) (l) The rights afforded to consumers and the
obligations imposed on any business under this title
shall not apply to the extent that they infringe on the
noncommercial activities of a person or entity
described in subdivision (b) of Section 2 of Article I of
the California Constitution.
(m) (1) This title shall not apply to any of the
following:
(A) Personal information that is collected by a
business about a natural person in the course of the
natural person acting as a job applicant to, an
employee of, owner of, director of, officer of, medical
staff member of, or independent contractor of, that
business to the extent that the natural person’s
personal information is collected and used by the
business solely within the context of the natural
person’s role or former role as a job applicant to, an
employee of, owner of, director of, officer of, medical
staff member of, or an independent contractor of, that
business.
(B) Personal information that is collected by a
business that is emergency contact information of the
natural person acting as a job applicant to, an
employee of, owner of, director of, officer of, medical
staff member of, or independent contractor of, that
business to the extent that the personal information is
collected and used solely within the context of having
an emergency contact on file.
(C) Personal information that is necessary for the
business to retain to administer benefits for another
natural person relating to the natural person acting as
a job applicant to, an employee of, owner of, director
of, officer of, medical staff member of, or independent
contractor of, that business to the extent that the
personal information is collected and used solely
within the context of administering those benefits.
(2) For purposes of this subdivision:
(A) “Independent contractor” means a natural person
who provides any service to a business pursuant to a
written contract.
(B) “Director” means a natural person designated in
the articles of incorporation as director, or elected by
the incorporators and natural persons designated,
elected, or appointed by any other name or title to act
as directors, and their successors.
(C) “Medical staff member” means a licensed
physician and surgeon, dentist, or podiatrist, licensed
pursuant to Division 2 (commencing with Section
500) of the Business and Professions Code and a
clinical psychologist as defined in Section 1316.5 of
the Health and Safety Code.
(D) “Officer” means a natural person elected or
appointed by the board of directors to manage the
daily operations of a corporation, including a chief
executive officer, president, secretary, or treasurer.
(E) “Owner” means a natural person who meets one
of the following criteria:
24
Text of Proposed Laws | 63
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
(i)Has ownership of, or the power to vote, more than
50 percent of the outstanding shares of any class of
voting security of a business.
(ii)Has control in any manner over the election of a
majority of the directors or of individuals exercising
similar functions.
(iii)Has the power to exercise a controlling influence
over the management of a company.
(3)This subdivision shall not apply to subdivision (a)
of Section 1798.100 or Section 1798.150.
(4)This subdivision shall become inoperative on
January 1, 2023.
(n)(1) The obligations imposed on businesses by
Sections 1798.100, 1798.105, 1798.106,
1798.110, 1798.115, 1798.121, 1798.130, and
1798.135 shall not apply to personal information
reflecting a written or verbal communication or a
transaction between the business and the consumer,
where the consumer is a natural person who acted or
is acting as an employee, owner, director, officer, or
independent contractor of a company, partnership,
sole proprietorship, non-profit, or government agency
and whose communications or transaction with the
business occur solely within the context of the
business conducting due diligence regarding, or
providing or receiving a product or service to or from
such company, partnership, sole proprietorship, non-
profit, or government agency.
(2)For purposes of this subdivision:
(A)“Contractor” “Independent contractor” means a
natural person who provides any service to a business
pursuant to a written contract.
(B)“Director” means a natural person designated in
the articles of incorporation as such or elected by the
incorporators and natural persons designated, elected,
or appointed by any other name or title to act as
directors, and their successors.
(C)“Officer” means a natural person elected or
appointed by the board of directors to manage the
daily operations of a corporation, such as a chief
executive officer, president, secretary, or treasurer.
(D)“Owner” means a natural person who meets one
of the following:
(i)Has ownership of, or the power to vote, more than
50 percent of the outstanding shares of any class of
voting security of a business.24 (ii) Has control in any manner over the election of a
majority of the directors or of individuals exercising
similar functions.
(iii)Has the power to exercise a controlling influence
over the management of a company.
(3)This subdivision shall become inoperative on
January 1, 2021. 2023.
64 | Text of Proposed Laws
(o)(1) Sections 1798.105 and 1798.120 shall not
apply to a commercial credit reporting agency’s
collection, processing, sale, or disclosure of business
controller information to the extent the commercial
credit reporting agency uses the business controller
information solely to identify the relationship of a
consumer to a business that the consumer owns or
contact the consumer only in the consumer’s role as
the owner, director, officer, or management employee
of the business.
(2)For the purposes of this subdivision:
(A)“Business controller information” means the
name or names of the owner or owners, director,
officer, or management employee of a business and
the contact information, including a business title, for
the owner or owners, director, officer, or management
employee.
(B)“Commercial credit reporting agency” has the
meaning set forth in subdivision (b) of Section
1785.42.
(C)“Owner” means a natural person that meets one
of the following:
(i)Has ownership of, or the power to vote, more than
50 percent of the outstanding shares of any class of
voting security of a business.
(ii)Has control in any manner over the election of a
majority of the directors or of individuals exercising
similar functions.
(iii)Has the power to exercise a controlling influence
over the management of a company.
(D)“Director” means a natural person designated in
the articles of incorporation of a business as director,
or elected by the incorporators and natural persons
designated, elected, or appointed by any other name
or title to act as directors, and their successors.
(E)“Officer” means a natural person elected or
appointed by the board of directors of a business to
manage the daily operations of a corporation,
including a chief executive officer, president,
secretary, or treasurer.
(F)“Management employee” means a natural person
whose name and contact information is reported to or
collected by a commercial credit reporting agency as
the primary manager of a business and used solely
within the context of the natural person’s role as the
primary manager of the business.
(p)The obligations imposed on businesses in Sections
1798.105, 1798.106, 1798.110, and 1798.115
shall not apply to household data.
(q)(1) This title does not require a business to
comply with a verifiable consumer request to delete a
consumer’s personal information under Section
1798.105 to the extent the verifiable consumer
request applies to a student’s grades, educational
scores, or educational test results that the business
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
holds on behalf of a local educational agency, as
defined in subdivision (d) of Section 49073.1 of the
Education Code, at which the student is currently
enrolled. If a business does not comply with a request
pursuant to this section, it shall notify the consumer
that it is acting pursuant to this exception.
(2) This title does not require, in response to a
request pursuant to Section 1798.110, that a
business disclose on educational standardized
assessment or educational assessment or a consumer’s
specific responses to the educational standardized
assessment or educational assessment if consumer
access, possession, or control would jeopardize the
validity and reliability of that educational standardized
assessment or educational assessment. If a business
does not comply with a request pursuant to this
section, it shall notify the consumer that it is acting
pursuant to this exception.
(3) Far purposes of this subdivision:
(A) “Educational standardized assessment or
educational assessment” means a standardized or
nonstandardized quiz, test, or other assessment used
to evaluate students in or for entry to kindergarten and
grades 1 to 12, inclusive, schools, postsecondary
institutions, vocational programs, and postgraduate
programs that are accredited by an accrediting agency
or organization recognized by the State of California or
the United States Department of Education, as well as
certification and licensure examinations used to
determine competency and eligibility to receive
certification or licensure from a government agency or
government certification body.
(B) “Jeopardize the validity and reliability of that
educational standardized assessment or educational
assessment” means releasing information that would
provide an advantage to the consumer who has
submitted a verifiable consumer request or to another
natural person.
(r) Sections 1798.105 and 1798.120 shall not apply
to a business’ use, disclosure, or sale of particular
pieces of a consumer’s personal information if the
consumer has consented to the business’ use,
disclosure, or sale of that information to produce a
physical item, including a school yearbook containing
the consumer’s photograph if:
(1) The business has incurred significant expense in
reliance on the consumer’s consent.
(2) Compliance with the consumer’s request to opt out
of the sale of the consumer’s personal information or
to delete the consumer’s personal information would
not be commercially reasonable.
(3) The business complies with the consumer’s
request as soon as it is commercially reasonable to do
so.
SEC. 16. Section 1798.150 of the Civil Code is
amended to read:
1798.150. Personal Information Security Breaches
1798.150. (a) (1) Any consumer whose
nonencrypted and nonredacted personal information,
as defined in subparagraph (A) of paragraph (1) of
subdivision (d) of Section 1798.81.5, or whose email
address in combination with a password or security
question and answer that would permit access to the
account is subject to an unauthorized access and
exfiltration, theft, or disclosure as a result of the
business’s violation of the duty to implement and
maintain reasonable security procedures and practices
appropriate to the nature of the information to protect
the personal information may institute a civil action
for any of the following:
(A) To recover damages in an amount not less than
one hundred dollars ($100) and not greater than
seven hundred and fifty ($750) per consumer per
incident or actual damages, whichever is greater.
(B) Injunctive or declaratory relief.
(C) Any other relief the court deems proper.
(2) In assessing the amount of statutory damages, the
court shall consider any one or more of the relevant
circumstances presented by any of the parties to the
case, including, but not limited to, the nature and
seriousness of the misconduct, the number of
violations, the persistence of the misconduct, the
length of time over which the misconduct occurred,
the willfulness of the defendant’s misconduct, and the
defendant’s assets, liabilities, and net worth.
(b) Actions pursuant to this section may be brought
by a consumer if, prior to initiating any action against
a business for statutory damages on an individual or
class-wide basis, a consumer provides a business 30
days’ written notice identifying the specific provisions
of this title the consumer alleges have been or are
being violated. In the event a cure is possible, if
within the 30 days the business actually cures the
noticed violation and provides the consumer an
express written statement that the violations have
been cured and that no further violations shall occur,
no action for individual statutory damages or class-
wide statutory damages may be initiated against the
business. The implementation and maintenance of
reasonable security procedures and practices pursuant
to Section 1798.81.5 following a breach does not
constitute a cure with respect to that breach. No
notice shall be required prior to an individual
consumer initiating an action solely for actual
pecuniary damages suffered as a result of the alleged
violations of this title. If a business continues to
violate this title in breach of the express written
statement provided to the consumer under this
section, the consumer may initiate an action against
the business to enforce the written statement and may
pursue statutory damages for each breach of the
express written statement, as well as any other
Text of Proposed Laws | 65
24
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
violation of the title that postdates the written
statement.
(c) The cause of action established by this section
shall apply only to violations as defined in subdivision
(a) and shall not be based on violations of any other
section of this title. Nothing in this title shall be
interpreted to serve as the basis for a private right of
action under any other law. This shall not be construed
to relieve any party from any duties or obligations
imposed under other law or the United States or
California Constitution.
SEC. 17. Section 1798.155 of the Civil Code is
amended to read:
1798.155. Administrative Enforcement
1798.155. (a) Any business or third party may seek
the opinion of the Attorney General for guidance on
how to comply with the provisions of this title.
(b) A business shall be in violation of this title if it
fails to cure any alleged violation within 30 days after
being notified of alleged noncompliance. Any
business, service provider, contractor, or other person
that violates this title shall be subject to an injunction
and liable for an administrative fine of not more than
two thousand five hundred dollars ($2,500) for each
violation or seven thousand five hundred dollars
($7,500) for each intentional violation or violations
involving the personal information of consumers whom
the business, service provider, contractor, or other
person has actual knowledge are under 16 years of
age, as adjusted pursuant to paragraph (5) of
subdivision (a) of Section 1798.185, in an
administrative enforcement action brought by the
California Privacy Protection Agency. a civil penalty of
not more than two thousand five hundred dollars
($2,500) for each violation or seven thousand five
hundred dollars ($7,500) for each intentional
violation, which shall be assessed and recovered in a
civil action brought in the name of the people of the
State of California by the Attorney General. The civil
penalties provided for in this section shall be
exclusively assessed and recovered in a civil action
brought in the name of the people of the State of
California by the Attorney General.
(c) (b) Any civil penalty administrative fine assessed
for a violation of this title, and the proceeds of any
settlement of an action brought pursuant to
subdivision (b) (a), shall be deposited in the
Consumer Privacy Fund, created within the General
Fund pursuant to subdivision (a) of Section 1798.160
with the intent to fully offset any costs incurred by the
state courts, and the Attorney General, and the
California Privacy Protection Agency in connection
with this title.
24
SEC. 18. Section 1798.160 of the Civil Code is
amended to read:
1798.160. Consumer Privacy Fund
66 | Text of Proposed Laws
1798.160. (a) A special fund to be known as the
“Consumer Privacy Fund” is hereby created within the
General Fund in the State Treasury, and is available
upon appropriation by the Legislature first to offset
any costs incurred by the state courts in connection
with actions brought to enforce this title, and any the
costs incurred by the Attorney General in carrying out
the Attorney General’s duties under this title, and then
for the purposes of establishing an investment fund in
the State Treasury, with any earnings or interest from
the fund to be deposited in the General Fund, and
making grants to promote and protect consumer
privacy, educate children in the area of online privacy,
and fund cooperative programs with international law
enforcement organizations to combat fraudulent
activities with respect to consumer data breaches.
(b) Funds transferred to the Consumer Privacy Fund
shall be used exclusively as follows:
(1) to To offset any costs incurred by the state courts
and the Attorney General in connection with this title.
(2) After satisfying the obligations under paragraph
(1), the remaining funds shall be allocated each fiscal
year as follows:
(A) Ninety-one percent shall be invested by the
Treasurer in financial assets with the goal of
maximizing long term yields consistent with a prudent
level of risk. The principal shall not be subject to
transfer or appropriation, provided that any interest
and earnings shall be transferred on an annual basis
to the General Fund for appropriation by the
Legislature for General Fund purposes.
(B) Nine percent shall be made available to the
California Privacy Protection Agency for the purposes
of making grants in California, with 3 percent
allocated to each of the following grant recipients:
(i) Nonprofit organizations to promote and protect
consumer privacy.
(ii) Nonprofit organizations and public agencies,
including school districts, to educate children in the
area of online privacy.
(iii) State and local law enforcement agencies to fund
cooperative programs with international law
enforcement organizations to combat fraudulent
activities with respect to consumer data breaches.
(c) These funds Funds in the Consumer Privacy Fund
shall not be subject to appropriation or transfer by the Legislature for any other purpose. , unless the Director
of Finance determines that the funds are in excess of the funding needed to fully offset the costs incurred
by the state courts and the Attorney General in connection with this title, in which case the
Legislature may appropriate excess funds for other purposes.
SEC. 19. Section 1798.175 of the Civil Code is amended to read:
1798.175. Conflicting Provisions
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
1798.175. This title is intended to further the
constitutional right of privacy and to supplement
existing laws relating to consumers’ personal
information, including, but not limited to, Chapter 22
(commencing with Section 22575) of Division 8 of
the Business and Professions Code and Title 1.81
(commencing with Section 1798.80). The provisions
of this title are not limited to information collected
electronically or over the Internet, but apply to the
collection and sale of all personal information
collected by a business from consumers. Wherever
possible, law relating to consumers’ personal
information should be construed to harmonize with
the provisions of this title, but in the event of a
conflict between other laws and the provisions of this
title, the provisions of the law that afford the greatest
protection for the right of privacy for consumers shall
control.
SEC. 20. Section 1798.180 of the Civil Code is
amended to read:
1798.180. Preemption
1798.180. This title is a matter of statewide
concern and supersedes and preempts all rules,
regulations, codes, ordinances, and other laws
adopted by a city, county, city and county,
municipality, or local agency regarding the collection
and sale of consumers’ personal information by a
business.
SEC. 21. Section 1798.185 of the Civil Code is
amended to read:
1798.185. Regulations
1798.185. (a) On or before July 1, 2020, the
Attorney General shall solicit broad public
participation and adopt regulations to further the
purposes of this title, including, but not limited to,
the following areas:
(1) Updating or adding as needed additional
categories of personal information to those
enumerated in subdivision (c) of Section 1798.130
and subdivision (o) (v) of Section 1798.140, and
updating or adding categories of sensitive personal
information to those enumerated in subdivision (ae) of
Section 1798.140 in order to address changes in
technology, data collection practices, obstacles to
implementation, and privacy concerns.
(2) Updating as needed the definition definitions of
“deidentified” and unique identifiers “unique
identifier” to address changes in technology, data
collection, obstacles to implementation, and privacy
concerns, and additional adding, modifying, or
deleting categories to the definition of designated
methods for submitting requests to facilitate a
consumer’s ability to obtain information from a
business pursuant to Section 1798.130. The authority
to update the definition of “deidentified” shall not
apply to deidentification standards set forth in Section
164.514 of Title 45 of the Code of Federal
Regulations, where such information previously was
“protected health information” as defined in Section
160.103 of Title 45 of the Code of Federal
Regulations.
(3) Establishing any exceptions necessary to comply
with state or federal law, including, but not limited to,
those relating to trade secrets and intellectual property
rights, within one year of passage of this title and as
needed thereafter, with the intention that trade
secrets should not be disclosed in response to a
verifiable consumer request.
(4) Establishing rules and procedures for the
following:
(A) To facilitate and govern the submission of a
request by a consumer to opt-out of the sale or sharing
of personal information pursuant to Section 1798.120
and to limit the use of a consumer’s sensitive personal
information pursuant to Section 1798.121 to ensure
that consumers have the ability to exercise their
choices without undue burden and to prevent business
from engaging in deceptive or harassing conduct,
including in retaliation against consumers for
exercising their rights, while allowing businesses to
inform consumers of the consequences of their
decision to opt out of the sale or sharing of their
personal information or to limit the use of their
sensitive personal information.
(B) To govern business compliance with a consumer’s
opt-out request.
(C) For the development and use of a recognizable
and uniform opt-out logo or button by all businesses
to promote consumer awareness of the opportunity to
opt-out of the sale of personal information.
(5) Adjusting the monetary threshold thresholds, in
January of every odd-numbered year to reflect any
increase in the Consumer Price Index, in:
subparagraph (A) of paragraph (1) of subdivision
(c) (d) of Section 1798.140; subparagraph (A) of
paragraph (1) of subdivision (a) of Section 1798.150;
subdivision (a) of Section 1798.155; Section
1798.199.25; and subdivision (a) of Section
1798.199.90 in January of every odd-numbered year
to reflect any increase in the Consumer Price Index.
(6) Establishing rules, procedures, and any exceptions
necessary to ensure that the notices and information
that businesses are required to provide pursuant to
this title are provided in a manner that may be easily
understood by the average consumer, are accessible to
consumers with disabilities, and are available in the
language primarily used to interact with the consumer,
including establishing rules and guidelines regarding
financial incentives incentive offerings, within one
year of passage of this title and as needed thereafter.
24
(7) Establishing rules and procedures to further the
purposes of Sections 1798.105, 1798.106,
1798.110, and 1798.115 and to facilitate a
consumer’s or the consumer’s authorized agent’s
Text of Proposed Laws | 67
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
ability to delete personal information, correct
inaccurate personal information pursuant to Section
1798.106, or obtain information pursuant to Section
1798.130, with the goal of minimizing the
administrative burden on consumers, taking into
account available technology, security concerns, and
the burden on the business, to govern a business’s
determination that a request for information received
from a consumer is a verifiable consumer request,
including treating a request submitted through a
password-protected account maintained by the
consumer with the business while the consumer is
logged into the account as a verifiable consumer
request and providing a mechanism for a consumer
who does not maintain an account with the business
to request information through the business’s
authentication of the consumer’s identity, within one
year of passage of this title and as needed thereafter.
(8) Establishing how often, and under what
circumstances, a consumer may request a correction
pursuant to Section 1798.106, including standards
governing the following:
(A) How a business responds to a request for
correction, including exceptions for requests to which
a response is impossible or would involve
disproportionate effort, and requests for correction of
accurate information.
(B) How concerns regarding the accuracy of the
information may be resolved.
(C) The steps a business may take to prevent fraud.
(D) If a business rejects a request to correct personal
information collected and analyzed concerning a
consumer’s health, the right of a consumer to provide
a written addendum to the business with respect to
any item or statement regarding any such personal
information that the consumer believes to be
incomplete or incorrect. The addendum shall be
limited to 250 words per alleged incomplete or
incorrect item and shall clearly indicate in writing that
the consumer requests the addendum to be made a
part of the consumer’s record.
(9) Establishing the standard to govern a business’
determination, pursuant to subparagraph (B) of
paragraph (2) of subdivision (a) of Section 1798.130,
that providing information beyond the 12-month
period in a response to a verifiable consumer request
is impossible or would involve a disproportionate
effort. 24 (10) Issuing regulations further defining and adding
to the business purposes, including other notified
purposes, for which businesses, service providers, and
contractors may use consumers’ personal information
consistent with consumers’ expectations, and further
defining the business purposes for which service
providers and contractors may combine consumers’
personal information obtained from different sources,
68 | Text of Proposed Laws
except as provided for in paragraph (6) of subdivision
(e) of Section 1798.140.
(11) Issuing regulations identifying those business
purposes, including other notified purposes, for which
service providers and contractors may use consumers’
personal information received pursuant to a written
contract with a business, for the service provider or
contractor’s own business purposes, with the goal of
maximizing consumer privacy.
(12) Issuing regulations to further define
“intentionally interacts,” with the goal of maximizing
consumer privacy.
(13) Issuing regulations to further define “precise
geolocation,” including if the size defined is not
sufficient to protect consumer privacy in sparsely
populated areas or when the personal information is
used for normal operational purposes, including
billing.
(14) Issuing regulations to define the term “specific
pieces of information obtained from the consumer”
with the goal of maximizing a consumer’s right to
access relevant personal information while minimizing
the delivery of information to a consumer that would
not be useful to the consumer, including system log
information and other technical data. For delivery of
the most sensitive personal information, the
regulations may require a higher standard of
authentication provided that the agency shall monitor
the impact of the higher standard on the right of consumers to obtain their personal information to
ensure that the requirements of verification do not
result in the unreasonable denial of verifiable
consumer requests.
(15) Issuing regulations requiring businesses whose
processing of consumers’ personal information
presents significant risk to consumers’ privacy or
security, to:
(A) Perform a cybersecurity audit on an annual basis,
including defining the scope of the audit and
establishing a process to ensure that audits are
thorough and independent. The factors to be
considered in determining when processing may result
in significant risk to the security of personal
information shall include the size and complexity of
the business and the nature and scope of processing
activities.
(B) Submit to the California Privacy Protection
Agency on a regular basis a risk assessment with
respect to their processing of personal information,
including whether the processing involves sensitive
personal information, and identifying and weighing
the benefits resulting from the processing to the
business, the consumer, other stakeholders, and the
public, against the potential risks to the rights of the
consumer associated with that processing, with the
goal of restricting or prohibiting the processing if the
risks to privacy of the consumer outweigh the benefits
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
resulting from processing to the consumer, the
business, other stakeholders, and the public. Nothing
in this section shall require a business to divulge trade
secrets.
(16) Issuing regulations governing access and opt-out
rights with respect to businesses’ use of automated
decisionmaking technology, including profiling and
requiring businesses’ response to access requests to
include meaningful information about the logic
involved in those decisionmaking processes, as well as
a description of the likely outcome of the process with
respect to the consumer.
(17) Issuing regulations to further define a “law
enforcement agency-approved investigation” for
purposes of the exception in paragraph (2) of
subdivision (a) of Section 1798.145.
(18) Issuing regulations to define the scope and
process for the exercise of the agency’s audit authority,
to establish criteria for selection of persons to audit,
and to protect consumers’ personal information from
disclosure to an auditor in the absence of a court
order, warrant, or subpoena.
(19) (A) Issuing regulations to define the
requirements and technical specifications for an opt-
out preference signal sent by a platform, technology,
or mechanism, to indicate a consumer’s intent to opt
out of the sale or sharing of the consumer’s personal
information and to limit the use or disclosure of the
consumer’s sensitive personal information. The
requirements and specifications for the opt-out
preference signal should be updated from time to time
to reflect the means by which consumers interact with
businesses, and should:
(i) Ensure that the manufacturer of a platform or
browser or device that sends the opt-out preference
signal cannot unfairly disadvantage another business.
(ii) Ensure that the opt-out preference signal is
consumer-friendly, clearly described, and easy to use
by an average consumer and does not require that the
consumer provide additional information beyond what
is necessary.
(iii) Clearly represent a consumer’s intent and be free
of defaults constraining or presupposing that intent.
(iv) Ensure that the opt-out preference signal does not
conflict with other commonly used privacy settings or
tools that consumers may employ.
(v) Provide a mechanism for the consumer to
selectively consent to a business’ sale of the
consumer’s personal information, or the use or
disclosure of the consumer’s sensitive personal
information, without affecting the consumer’s
preferences with respect to other businesses or
disabling the opt-out preference signal globally.
(vi) State that in the case of a page or setting view
that the consumer accesses to set the opt-out
preference signal, the consumer should see up to
three choices, including:
(I) Global opt out from sale and sharing of personal
information, including a direction to limit the use of
sensitive personal information.
(II) Choice to “Limit the Use of My Sensitive Personal
Information.”
(III) Choice titled “Do Not Sell/Do Not Share My
Personal Information for Cross-Context Behavioral
Advertising.”
(B) Issuing regulations to establish technical
specifications for an opt-out preference signal that
allows the consumer, or the consumer’s parent or
guardian, to specify that the consumer is less than 13
years of age or at least 13 years of age and less than
16 years of age.
(C) Issuing regulations, with the goal of strengthening
consumer privacy while considering the legitimate
operational interests of businesses, to govern the use
or disclosure of a consumer’s sensitive personal
information, notwithstanding the consumer’s direction
to limit the use or disclosure of the consumer’s
sensitive personal information, including:
(i) Determining any additional purposes for which a
business may use or disclose a consumer’s sensitive
personal information.
(ii) Determining the scope of activities permitted
under paragraph (8) of subdivision (e) of Section
1798.140, as authorized by subdivision (a) of Section
1798.121, to ensure that the activities do not involve
health-related research.
(iii) Ensuring the functionality of the business’
operations.
(iv) Ensuring that the exemption in subdivision (d) of
Section 1798.121 for sensitive personal information
applies to information that is collected or processed
incidentally, or without the purpose of inferring
characteristics about a consumer, while ensuring that
businesses do not use the exemption for the purpose
of evading consumers’ rights to limit the use and
disclosure of their sensitive personal information
under Section 1798.121.
(20) Issuing regulations to govern how a business that
has elected to comply with subdivision (b) of Section
1798.135 responds to the opt-out preference signal
and provides consumers with the opportunity
subsequently to consent to the sale or sharing of their
personal information or the use and disclosure of their
sensitive personal information for purposes in addition
to those authorized by subdivision (a) of Section
1798.121. The regulations should:
(A) Strive to promote competition and consumer
choice and be technology neutral.
(B) Ensure that the business does not respond to an
opt-out preference signal by:
24
Text of Proposed Laws | 69
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
(i) Intentionally degrading the functionality of the
consumer experience.
(ii) Charging the consumer a fee in response to the
consumer’s opt-out preferences.
(iii) Making any products or services not function
properly or fully for the consumer, as compared to
consumers who do not use the opt-out preference
signal.
(iv) Attempting to coerce the consumer to opt in to
the sale or sharing of the consumer’s personal
information, or the use or disclosure of the consumer’s
sensitive personal information, by stating or implying
that the use of the opt-out preference signal will
adversely affect the consumer as compared to
consumers who do not use the opt-out preference
signal, including stating or implying that the consumer
will not be able to use the business’ products or
services or that those products or services may not
function properly or fully.
(v) Displaying any notification or pop-up in response
to the consumer’s opt-out preference signal.
(C) Ensure that any link to a web page or its
supporting content that allows the consumer to
consent to opt in:
(i) Is not part of a popup, notice, banner, or other
intrusive design that obscures any part of the web
page the consumer intended to visit from full view or
that interferes with or impedes in any way the
consumer’s experience visiting or browsing the web
page or website the consumer intended to visit.
(ii) Does not require or imply that the consumer must
click the link to receive full functionality of any
products or services, including the website.
(iii) Does not make use of any dark patterns.
(iv) Applies only to the business with which the
consumer intends to interact.
(D) Strive to curb coercive or deceptive practices in
response to an opt-out preference signal but should
not unduly restrict businesses that are trying in good
faith to comply with Section 1798.135.
(21) Review existing Insurance Code provisions and
regulations relating to consumer privacy, except those
relating to insurance rates or pricing, to determine
whether any provisions of the Insurance Code provide
greater protection to consumers than the provisions of
this title. Upon completing its review, the agency shall
adopt a regulation that applies only the more
protective provisions of this title to insurance
companies. For the purpose of clarity, the Insurance
Commissioner shall have jurisdiction over insurance
rates and pricing.
24
(22) Harmonizing the regulations governing opt-out
mechanisms, notices to consumers, and other
operational mechanisms in this title to promote clarity
and the functionality of this title for consumers.
70 | Text of Proposed Laws
(b) The Attorney General may adopt additional
regulations as follows:
(1) To establish rules and procedures on how to
process and comply with verifiable consumer requests
for specific pieces of personal information relating to
a household in order to address obstacles to
implementation and privacy concerns.
(2) As necessary to further the purposes of this title.
(c) The Attorney General shall not bring an
enforcement action under this title until six months
after the publication of the final regulations issued
pursuant to this section or July 1, 2020, whichever is
sooner.
(d) Notwithstanding subdivision (a), the timeline for
adopting final regulations required by the act adding
this subdivision shall be July 1, 2022. Beginning the
later of July 1, 2021, or six months after the agency
provides notice to the Attorney General that it is
prepared to begin rulemaking under this title, the
authority assigned to the Attorney General to adopt
regulations under this section shall be exercised by
the California Privacy Protection Agency.
Notwithstanding any other law, civil and administrative
enforcement of the provisions of law added or
amended by this act shall not commence until July 1,
2023, and shall only apply to violations occurring on
or after that date. Enforcement of provisions of law
contained in the California Consumer Privacy Act of
2018 amended by this act shall remain in effect and
shall be enforceable until the same provisions of this
act become enforceable.
SEC. 22. Section 1798.190 of the Civil Code is
amended to read:
1798.190. Anti-Avoidance
1798.190. A court or the agency shall disregard the
intermediate steps or transactions for purposes of
effectuating the purposes of this title:
(a) If a series of steps or transactions were component
parts of a single transaction intended from the
beginning to be taken with the intention of avoiding
the reach of this title, including the disclosure of
information by a business to a third party in order to
avoid the definition of sell, or share.
(b) If steps or transactions were taken to purposely
avoid the definition of sell or share by eliminating any
monetary or other valuable consideration, including by
entering into contracts that do not include an
exchange for monetary or other valuable consideration,
but where a party is obtaining something of value or
use a court shall disregard the intermediate steps or
transactions for purposes of effectuating the purposes
of this title.
SEC. 23. Section 1798.192 of the Civil Code is
amended to read:
1798.192. Waiver
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
1798.192. Any provision of a contract or agreement
of any kind, including a representative action waiver,
that purports to waive or limit in any way a consumer’s
rights under this title, including, but not limited to,
any right to a remedy or means of enforcement, shall
be deemed contrary to public policy and shall be void
and unenforceable. This section shall not prevent a
consumer from declining to request information from
a business, declining to opt-out opt out of a business’s
sale of the consumer’s personal information, or
authorizing a business to sell or share the consumer’s
personal information after previously opting out.
SEC. 24. Establishment of California Privacy
Protection Agency.
SEC. 24.1. Section 1798.199.10 is added to the
Civil Code, to read:
1798.199.10. (a) There is hereby established in
state government the California Privacy Protection
Agency, which is vested with full administrative power,
authority, and jurisdiction to implement and enforce
the California Consumer Privacy Act of 2018. The
agency shall be governed by a five-member board,
including the chairperson. The chairperson and one
member of the board shall be appointed by the
Governor. The Attorney General, Senate Rules
Committee, and Speaker of the Assembly shall each
appoint one member. These appointments should be
made from among Californians with expertise in the
areas of privacy, technology, and consumer rights.
(b) The initial appointments to the agency shall be
made within 90 days of the effective date of the act
adding this section.
SEC. 24.2. Section 1798.199.15 is added to the
Civil Code, to read:
1798.199.15. Members of the agency board shall:
(a) Have qualifications, experience, and skills, in
particular in the areas of privacy and technology,
required to perform the duties of the agency and
exercise its powers.
(b) Maintain the confidentiality of information which
has come to their knowledge in the course of the
performance of their tasks or exercise of their powers,
except to the extent that disclosure is required by the
Public Records Act.
(c) Remain free from external influence, whether
direct or indirect, and shall neither seek nor take
instructions from another.
(d) Refrain from any action incompatible with their
duties and engaging in any incompatible occupation,
whether gainful or not, during their term.
(e) Have the right of access to all information made
available by the agency to the chairperson.
(f) Be precluded, for a period of one year after leaving
office, from accepting employment with a business
that was subject to an enforcement action or civil
action under this title during the member’s tenure or
during the five-year period preceding the member’s
appointment.
(g) Be precluded for a period of two years after leaving
office from acting, for compensation, as an agent or
attorney for, or otherwise representing, any other
person in a matter pending before the agency if the
purpose is to influence an action of the agency.
SEC. 24.3. Section 1798.199.20 is added to the
Civil Code, to read:
1798.199.20. Members of the agency board,
including the chairperson, shall serve at the pleasure
of their appointing authority but shall serve for no
longer than eight consecutive years.
SEC. 24.4. Section 1798.199.25 is added to the
Civil Code, to read:
1798.199.25. For each day on which they engage
in official duties, members of the agency board shall
be compensated at the rate of one hundred dollars
($100), adjusted biennially to reflect changes in the
cost of living, and shall be reimbursed for expenses
incurred in performance of their official duties.
SEC. 24.5. Section 1798.199.30 is added to the
Civil Code, to read:
1798.199.30. The agency board shall appoint an
executive director who shall act in accordance with
agency policies and regulations and with applicable
law. The agency shall appoint and discharge officers,
counsel, and employees, consistent with applicable
civil service laws, and shall fix the compensation of
employees and prescribe their duties. The agency may
contract for services that cannot be provided by its
employees.
SEC. 24.6. Section 1798.199.35 is added to the
Civil Code, to read:
1798.199.35. The agency board may delegate
authority to the chairperson or the executive director
to act in the name of the agency between meetings of
the agency, except with respect to resolution of
enforcement actions and rulemaking authority.
SEC. 24.7. Section 1798.199.40 is added to the
Civil Code, to read:
1798.199.40. The agency shall perform the
following functions:
(a) Administer, implement, and enforce through
administrative actions this title.
(b) On and after the earlier of July 1, 2021, or within
six months of the agency providing the Attorney
General with notice that it is prepared to assume
rulemaking responsibilities under this title, adopt,
amend, and rescind regulations pursuant to Section
1798.185 to carry out the purposes and provisions of
the California Consumer Privacy Act of 2018,
including regulations specifying record keeping
Text of Proposed Laws | 71
24
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
requirements for businesses to ensure compliance
with this title.
(c) Through the implementation of this title, protect
the fundamental privacy rights of natural persons with
respect to the use of their personal information.
(d) Promote public awareness and understanding of
the risks, rules, responsibilities, safeguards, and rights
in relation to the collection, use, sale, and disclosure
of personal information, including the rights of minors
with respect to their own information, and provide a
public report summarizing the risk assessments filed
with the agency pursuant to paragraph (15) of
subdivision (a) of Section 1798.185 while ensuring
that data security is not compromised.
(e) Provide guidance to consumers regarding their
rights under this title.
(f) Provide guidance to businesses regarding their
duties and responsibilities under this title and appoint
a Chief Privacy Auditor to conduct audits of
businesses to ensure compliance with this title
pursuant to regulations adopted pursuant to paragraph
(18) of subdivision (a) of Section 1798.185.
(g) Provide technical assistance and advice to the
Legislature, upon request, with respect to privacy-
related legislation.
(h) Monitor relevant developments relating to the
protection of personal information and in particular,
the development of information and communication
technologies and commercial practices.
(i) Cooperate with other agencies with jurisdiction
over privacy laws and with data processing authorities
in California, other states, territories, and countries to
ensure consistent application of privacy protections.
(j) Establish a mechanism pursuant to which persons
doing business in California that do not meet the
definition of business set forth in paragraph (1), (2),
or (3) of subdivision (d) of Section 1798.140 may
voluntarily certify that they are in compliance with
this title, as set forth in paragraph (4) of subdivision
(d) of Section 1798.140, and make a list of those
entities available to the public.
(k) Solicit, review, and approve applications for grants
to the extent funds are available pursuant to paragraph
(2) of subdivision (b) of Section 1798.160.
(l) Perform all other acts necessary or appropriate in
the exercise of its power, authority, and jurisdiction
and seek to balance the goals of strengthening
consumer privacy while giving attention to the impact
on businesses.24
SEC. 24.8. Section 1798.199.45 is added to the
Civil Code, to read:
1798.199.45. (a) Upon the sworn complaint of any
person or on its own initiative, the agency may
investigate possible violations of this title relating to
any business, service provider, contractor, or person.
72 | Text of Proposed Laws
The agency may decide not to investigate a complaint
or decide to provide a business with a time period to
cure the alleged violation. In making a decision not to
investigate or provide more time to cure, the agency
may consider the following:
(1) Lack of intent to violate this title.
(2) Voluntary efforts undertaken by the business,
service provider, contractor, or person to cure the
alleged violation prior to being notified by the agency
of the complaint.
(b) The agency shall notify in writing the person who
made the complaint of the action, if any, the agency
has taken or plans to take on the complaint, together
with the reasons for that action or nonaction.
SEC. 24.9. Section 1798.199.50 is added to the
Civil Code, to read:
1798.199.50. No finding of probable cause to
believe this title has been violated shall be made by
the agency unless, at least 30 days prior to the
agency’s consideration of the alleged violation, the
business, service provider, contractor, or person
alleged to have violated this title is notified of the
violation by service of process or registered mail with
return receipt requested, provided with a summary of
the evidence, and informed of their right to be present
in person and represented by counsel at any
proceeding of the agency held for the purpose of
considering whether probable cause exists for
believing the person violated this title. Notice to the
alleged violator shall be deemed made on the date of
service, the date the registered mail receipt is signed,
or if the registered mail receipt is not signed, the date
returned by the post office. A proceeding held for the
purpose of considering probable cause shall be private
unless the alleged violator files with the agency a
written request that the proceeding be public.
SEC. 24.10. Section 1798.199.55 is added to the
Civil Code, to read:
1798.199.55. (a) When the agency determines
there is probable cause for believing this title has
been violated, it shall hold a hearing to determine if a
violation has or violations have occurred. Notice shall
be given and the hearing conducted in accordance
with the Administrative Procedure Act (Chapter 5
(commencing with Section 11500), Part 1, Division
3, Title 2, Government Code). The agency shall have
all the powers granted by that chapter. If the agency
determines on the basis of the hearing conducted
pursuant to this subdivision that a violation or
violations have occurred, it shall issue an order that
may require the violator to do all or any of the
following:
(1) Cease and desist violation of this title.
(2) Subject to Section 1798.155, pay an
administrative fine of up to two thousand five hundred
dollars ($2,500) for each violation, or up to seven
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
thousand five hundred dollars ($7,500) for each
intentional violation and each violation involving the
personal information of minor consumers to the
Consumer Privacy Fund within the General Fund of
the state. When the agency determines that no
violation has occurred, it shall publish a declaration
so stating.
(b) If two or more persons are responsible for any
violation or violations, they shall be jointly and
severally liable.
SEC. 24.11. Section 1798.199.60 is added to the
Civil Code, to read:
1798.199.60. Whenever the agency rejects the
decision of an administrative law judge made pursuant
to Section 11517 of the Government Code, the agency
shall state the reasons in writing for rejecting the
decision.
SEC. 24.12. Section 1798.199.65 is added to the
Civil Code, to read:
1798.199.65. The agency may subpoena witnesses,
compel their attendance and testimony, administer
oaths and affirmations, take evidence and require by
subpoena the production of any books, papers,
records, or other items material to the performance of
the agency’s duties or exercise of its powers,
including, but not limited to, its power to audit a
business’ compliance with this title.
SEC. 24.13. Section 1798.199.70 is added to the
Civil Code, to read:
1798.199.70. No administrative action brought
pursuant to this title alleging a violation of any of the
provisions of this title shall be commenced more than
five years after the date on which the violation
occurred.
(a) The service of the probable cause hearing notice,
as required by Section 1798.199.50, upon the person
alleged to have violated this title shall constitute the
commencement of the administrative action.
(b) If the person alleged to have violated this title
engages in the fraudulent concealment of the person’s
acts or identity, the five-year period shall be tolled for
the period of the concealment. For purposes of this
subdivision, “fraudulent concealment” means the
person knows of material facts related to the person’s
duties under this title and knowingly conceals them in
performing or omitting to perform those duties for the
purpose of defrauding the public of information to
which it is entitled under this title.
(c) If, upon being ordered by a superior court to
produce any documents sought by a subpoena in any
administrative proceeding under this title, the person
alleged to have violated this title fails to produce
documents in response to the order by the date
ordered to comply therewith, the five-year period shall
be tolled for the period of the delay from the date of
filing of the motion to compel until the date the
documents are produced.
SEC. 24.14. Section 1798.199.75 is added to the
Civil Code, to read:
1798.199.75. (a) In addition to any other available
remedies, the agency may bring a civil action and
obtain a judgment in superior court for the purpose of
collecting any unpaid administrative fines imposed
pursuant to this title after exhaustion of judicial review
of the agency’s action. The action may be filed as a
small claims, limited civil, or unlimited civil case
depending on the jurisdictional amount. The venue for
this action shall be in the county where the
administrative fines were imposed by the agency. In
order to obtain a judgment in a proceeding under this
section, the agency shall show, following the
procedures and rules of evidence as applied in
ordinary civil actions, all of the following:
(1) That the administrative fines were imposed
following the procedures set forth in this title and
implementing regulations.
(2) That the defendant or defendants in the action
were notified, by actual or constructive notice, of the
imposition of the administrative fines.
(3) That a demand for payment has been made by the
agency and full payment has not been received.
(b) A civil action brought pursuant to subdivision (a)
shall be commenced within four years after the date
on which the administrative fines were imposed.
SEC. 24.15. Section 1798.199.80 is added to the
Civil Code, to read:
1798.199.80. (a) If the time for judicial review of a
final agency order or decision has lapsed, or if all
means of judicial review of the order or decision have
been exhausted, the agency may apply to the clerk of
the court for a judgment to collect the administrative
fines imposed by the order or decision, or the order as
modified in accordance with a decision on judicial
review.
(b) The application, which shall include a certified
copy of the order or decision, or the order as modified
in accordance with a decision on judicial review, and
proof of service of the order or decision, constitutes a
sufficient showing to warrant issuance of the judgment
to collect the administrative fines. The clerk of the
court shall enter the judgment immediately in
conformity with the application.
(c) An application made pursuant to this section shall
be made to the clerk of the superior court in the
county where the administrative fines were imposed
by the agency.
24
(d) A judgment entered in accordance with this
section has the same force and effect as, and is
subject to all the provisions of law relating to, a
judgment in a civil action and may be enforced in the
Text of Proposed Laws | 73
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
same manner as any other judgment of the court in
which it is entered.
(e) The agency may bring an application pursuant to
this section only within four years after the date on
which all means of judicial review of the order or
decision have been exhausted.
(f) The remedy available under this section is in
addition to those available under any other law.
SEC. 24.16. Section 1798.199.85 is added to the
Civil Code, to read:
1798.199.85. Any decision of the agency with
respect to a complaint or administrative fine shall be
subject to judicial review in an action brought by an
interested party to the complaint or administrative
fine and shall be subject to an abuse of discretion
standard.
SEC. 24.17. Section 1798.199.90 is added to the
Civil Code, to read:
1798.199.90. (a) Any business, service provider,
contractor, or other person that violates this title shall
be subject to an injunction and liable for a civil
penalty of not more than two thousand five hundred
dollars ($2,500) for each violation or seven thousand
five hundred dollars ($7,500) for each intentional
violation and each violation involving the personal
information of minor consumers, as adjusted pursuant
to paragraph (5) of subdivision (a) of Section
1798.185, which shall be assessed and recovered in
a civil action brought in the name of the people of the
State of California by the Attorney General. The court
may consider the good faith cooperation of the
business, service provider, contractor, or other person
in determining the amount of the civil penalty.
(b) Any civil penalty recovered by an action brought
by the Attorney General for a violation of this title, and
the proceeds of any settlement of any said action,
shall be deposited in the Consumer Privacy Fund.
(c) The agency shall, upon request by the Attorney
General, stay an administrative action or investigation
under this title to permit the Attorney General to
proceed with an investigation or civil action and shall
not pursue an administrative action or investigation,
unless the Attorney General subsequently determines
not to pursue an investigation or civil action. The
agency may not limit the authority of the Attorney
General to enforce this title.
24
(d) No civil action may be filed by the Attorney
General under this section for any violation of this title
after the agency has issued a decision pursuant to
Section 1798.199.85 or an order pursuant to Section
1798.199.55 against that person for the same
violation.
(e) This section shall not affect the private right of
action provided for in Section 1798.150.
SEC. 24.18. Section 1798.199.95 is added to the
Civil Code, to read:
74 | Text of Proposed Laws
1798.199.95. (a) There is hereby appropriated
from the General Fund of the state to the agency the
sum of five million dollars ($5,000,000) during the
fiscal year 2020–2021, and the sum of ten million
dollars ($10,000,000) adjusted for cost-of-living
changes, during each fiscal year thereafter, for
expenditure to support the operations of the agency
pursuant to this title. The expenditure of funds under
this appropriation shall be subject to the normal
administrative review given to other state
appropriations. The Legislature shall appropriate those
additional amounts to the commission and other
agencies as may be necessary to carry out the
provisions of this title.
(b) The Department of Finance, in preparing the state
budget and the Budget Act bill submitted to the
Legislature, shall include an item for the support of
this title that shall indicate all of the following:
(1) The amounts to be appropriated to other agencies
to carry out their duties under this title, which
amounts shall be in augmentation of the support
items of those agencies.
(2) The additional amounts required to be
appropriated by the Legislature to the agency to carry
out the purposes of this title, as provided for in this
section.
(3) In parentheses, for informational purposes, the
continuing appropriation during each fiscal year of ten
million dollars ($10,000,000), adjusted for cost-of-
living changes made pursuant to this section.
(c) The Attorney General shall provide staff support to
the agency until the agency has hired its own staff.
The Attorney General shall be reimbursed by the
agency for these services.
SEC. 24.19. Section 1798.199.100 is added to
the Civil Code, to read:
1798.199.100. The agency and any court, as
applicable, shall consider the good faith cooperation
of the business, service provider, contractor, or other
person in determining the amount of any
administrative fine or civil penalty for a violation of
this title. A business shall not be required by the
agency, a court, or otherwise to pay both an
administrative fine and a civil penalty for the same
violation.
SEC. 25. Amendment.
(a) The provisions of this act may be amended after
its approval by the voters by a statute that is passed
by a vote of a majority of the members of each house
of the Legislature and signed by the Governor,
provided that those amendments are consistent with
and further the purpose and intent of this act as set
forth in Section 3, including amendments to the
exemptions in Section 1798.145 if the laws upon
which the exemptions are based are amended to
enhance privacy and are consistent with and further
TEXT OF PROPOSED LAWS PROPOSITION 24 CONTINUED
the purposes and intent of this act and amendments
to address a decision of a state or federal court
holding that a provision of the act is unconstitutional
or preempted by federal law, provided that any further
amendments to legislation that addresses a court
holding shall be subject to this subdivision.
(b) Notwithstanding Section 1798.199.25, the
Legislature may authorize additional compensation for
members of the California Consumer Privacy Agency,
if it determines that it is necessary to carry out the
agency’s functions, by a statute that is passed by a
vote of a majority of the members of each house of the
Legislature and signed by the Governor.
(c) This section applies to all statutes amended or
reenacted as part of this act, and all provisions of
those statutes, regardless of whether this act makes
any substantive change thereto.
(d) The provisions of this act shall prevail over any
conflicting legislation enacted after January 1, 2020.
Any amendments to this act or any legislation that
conflicts with any provision of this act shall be null
and void upon passage of this act by the voters,
regardless of the code in which it appears. Legislation
shall be considered “conflicting” for purposes of this
subdivision, unless the legislation is consistent with
and furthers the purpose and intent of this act as set
forth in Section 3.
SEC. 26. Severability.
If any provision of this measure, or part of this
measure, or the application of any provision or part to
any person or circumstances, is for any reason held to
be invalid, the remaining provisions, or applications of
provisions, shall not be affected, but shall remain in
full force and effect, and to this end the provisions of
this measure are severable. If a court were to find in a
final, unreviewable judgment that the exclusion of one
or more entities or activities from the applicability of
the act renders the act unconstitutional, those
exceptions should be severed and the act should be
made applicable to the entities or activities formerly
exempt from the act. It is the intent of the voters that
this act would have been enacted regardless of
whether any invalid provision had been included or
any invalid application had been made.
SEC. 27. Conflicting Initiatives.
(a) In the event that this measure and another
measure addressing consumer privacy shall appear on
the same statewide ballot, the provisions of the other
measure or measures shall be deemed to be in conflict
with this measure. In the event that this measure
receives a greater number of affirmative votes than a
measure deemed to be in conflict with it, the
provisions of this measure shall prevail in their
entirety, and the other measure or measures shall be
null and void.
(b) If this measure is approved by the voters but
superseded by law by any other conflicting measure
approved by voters at the same election, and the
conflicting ballot measure is later held invalid, this
measure shall be self-executing and given full force
and effect.
SEC. 28. Standing.
Notwithstanding any other provision of law, if the state
or any of its officials fail to defend the constitutionality
of this act, following its approval by the voters, any
other government agency of this state shall have the
authority to intervene in any court action challenging
the constitutionality of this act for the purpose of
defending its constitutionality, whether that action is
in state or federal trial court, on appeal, or on
discretionary review by the Supreme Court of
California or the Supreme Court of the United States.
The reasonable fees and costs of defending the action
shall be a charge on funds appropriated to the
Department of Justice, which shall be satisfied
promptly.
SEC. 29. Construction.
This act shall be liberally construed to effectuate its
purposes.
SEC. 30. Savings Clause.
This act is intended to supplement federal and state
law, where permissible, but shall not apply if that
application is preempted by, or in conflict with,
federal law, or the California Constitution. The
provisions of the act relating to children under 16
years of age shall only apply to the extent not in
conflict with the federal Children’s Online Privacy
Protection Act.
SEC. 31. Effective and Operative Dates.
(a) This act shall become effective as provided in
subdivision (a) of Section 10 of Article II of the
California Constitution. Except as provided in
subdivision (b), this act shall become operative
January 1, 2023, and with the exception of the right
of access, shall only apply to personal information
collected by a business on or after January 1, 2022.
(b) Subdivisions (m) and (n) of Section 1798.145,
Sections 1798.160, 1798.185, Sections
1798.199.10 through 1798.199.40, inclusive, and
Section 1798.199.95 shall become operative on the
effective date of the act.
(c) The provisions of the California Consumer Privacy
Act of 2018, amended by this act, shall remain in full
force and effect and shall be enforceable until the
same provisions of this act become operative and
enforceable.
24
PROPOSITION 25
This law proposed by Senate Bill 10 of the 2017–
2018 Regular Session (Chapter 244, Statutes of
2018) is submitted to the people as a referendum in
25
Text of Proposed Laws | 75
TEXT OF PROPOSED LAWS PROPOSITION 25 CONTINUED
accordance with the provisions of Section 9 of Article
II of the California Constitution.
This proposed law amends a section of the
Government Code and adds sections to the Penal
Code; therefore, existing provisions proposed to be
deleted are printed in strikeout type and new
provisions proposed to be added are printed in italic
type to indicate that they are new.
PROPOSED LAW
SECTION 1. It is the intent of the Legislature by
enacting this measure to permit preventive detention
of pretrial defendants only in a manner that is
consistent with the United States Constitution, as
interpreted by the United States Supreme Court, and
only to the extent permitted by the California
Constitution as interpreted by the California courts of
review.
SEC. 2. Section 27771 of the Government Code is
amended to read:
27771. (a) The chief probation officer shall perform
the duties and discharge the obligations imposed on
the office by law or by order of the superior court,
including the following:
(1) Community supervision of offenders subject to the
jurisdiction of the juvenile court pursuant to Section
602 or 1766 of the Welfare and Institutions Code.
(2) Operation of juvenile halls pursuant to Section
852 of the Welfare and Institutions Code.
(3) Operation of juvenile camps and ranches
established under Section 880 of the Welfare and
Institutions Code.
(4) Community supervision of individuals subject to
probation pursuant to conditions imposed under
Section 1203 of the Penal Code.
(5) Community supervision of individuals subject to
mandatory supervision pursuant to subparagraph (B)
of paragraph (5) of subdivision (h) of Section 1170 of
the Penal Code.
(6) Community supervision of individuals subject to
postrelease community supervision pursuant to
Section 3451 of the Penal Code.
(7) Administration of community-based corrections
programming, including, but not limited to, programs
authorized by Chapter 3 (commencing with Section
1228) of Title 8 of Part 2 of the Penal Code.
(8) Serving as chair of the Community Corrections
Partnership pursuant to Section 1230 of the Penal
Code.
25
(9) Making recommendations to the court, including,
but not limited to, pre-sentence presentence
investigative reports pursuant to Sections 1203.7 and
1203.10 of the Penal Code, or reports prepared
pursuant to Section 1320.15 of the Penal Code.
76 | Text of Proposed Laws
(b) The chief probation officer may perform other
duties that are consistent with those enumerated in
subdivision (a) and may accept appointment to the
Board of State and Community Corrections and collect
the per diem authorized by Section 6025.1 of the
Penal Code.
SEC. 3. Section 1320.6 is added to the Penal Code,
to read:
1320.6. This chapter shall remain in effect only
until October 1, 2019, and as of that date is repealed.
SEC. 4. Chapter 1.5 (commencing with Section
1320.7) is added to Title 10 of Part 2 of the Penal
Code, to read:
CHAPTER 1.5. PRETRIAL CUSTODY STATUS
Article 1. Definitions
1320.7. As used in this chapter, the following terms
have the following meanings:
(a) “The court” as used in this chapter includes
“subordinate judicial officers,” if authorized by the
particular superior court, as authorized in Section 22
of Article VI of the California Constitution and
specified in Rule 10.703 of the California Rules of
Court.
(b) “High risk” means that an arrested person, after
determination of the person’s risk following an
investigation by Pretrial Assessment Services,
including the use of a validated risk assessment tool,
is categorized as having a significant level of risk of
failure to appear in court as required or risk to public
safety due to the commission of a new criminal
offense while released on the current criminal offense.
(c) “Low risk” means that an arrested person, after
determination of the person’s risk following an
investigation by Pretrial Assessment Services,
including the use of a validated risk assessment tool,
is categorized as having a minimal level of risk of
failure to appear in court as required or risk to public
safety due to the commission of a new criminal
offense while released on the current criminal offense.
(d) “Medium risk” means that an arrested person,
after determination of the person’s risk following an
investigation by Pretrial Assessment Services,
including the use of a validated risk assessment tool,
is categorized as having a moderate level of risk of
failure to appear in court as required or risk to public
safety due to the commission of a new criminal
offense while released on the current criminal offense.
(e) “Own recognizance release” means the pretrial
release of an arrested person who promises in writing
to appear in court as required, and without
supervision.
(f) “Pretrial risk assessment” means an assessment
conducted by Pretrial Assessment Services with the
use of a validated risk assessment tool, designed to
provide information about the risk of a person’s failure
TEXT OF PROPOSED LAWS PROPOSITION 25 CONTINUED
to appear in court as required or the risk to public
safety due to the commission of a new criminal
offense if the person is released before adjudication of
his or her current criminal offense.
(g) “Pretrial Assessment Services” means an entity,
division, or program that is assigned the responsibility,
pursuant to Section 1320.26, to assess the risk level
of persons charged with the commission of a crime,
report the results of the risk determination to the
court, and make recommendations for conditions of
release of individuals pending adjudication of their
criminal case, and as directed under statute or rule of
court, implement risk-based determinations regarding
release and detention. The entity, division, or program,
at the option of the particular superior court, may be employees of the court, or employees of a public
entity contracting with the court for those services as provided in Section 1320.26, and may include an
entity, division, or program from an adjoining county or one that provides services as a member of a regional
consortium. In all circumstances, persons acting on behalf of the entity, division, or program shall be
officers of the court. “Pretrial Assessment Services”
does not include supervision of persons released
under this chapter.
(h) “Risk” refers to the likelihood that a person will
not appear in court as required or the likelihood that a
person will commit a new crime if the person is
released before adjudication of his or her current
criminal offense.
(i) “Risk score” refers to a descriptive evaluation of a
person’s risk of failing to appear in court as required
or the risk to public safety due to the commission of a
new criminal offense if the person is released before
adjudication of his or her current criminal offense, as
a result of conducting an assessment with a validated
risk assessment tool and may include a numerical
value or terms such as “high,” “medium,” or “low”
risk.
(j) “Supervised own recognizance release” means the
pretrial release of an arrested person who promises in
writing, but without posting money or a secured bond,
to appear in court as required, and upon whom the
court or Pretrial Assessment Services imposes
specified conditions of release.
(k) “Validated risk assessment tool” means a risk
assessment instrument, selected and approved by the
court, in consultation with Pretrial Assessment
Services or another entity providing pretrial risk
assessments, from the list of approved pretrial risk
assessment tools maintained by the Judicial Council.
The assessment tools shall be demonstrated by
scientific research to be accurate and reliable in
assessing the risk of a person failing to appear in court
as required or the risk to public safety due to the
commission of a new criminal offense if the person is
released before adjudication of his or her current
criminal offense and minimize bias.
(l) “Witness” means any person who has testified or is
expected to testify, or who, by reason of having
relevant information, is subject to call or likely to be
called as a witness in an action or proceeding for the
current offense, whether or not any action or
proceeding has yet been commenced, and whether or
not the person is a witness for the defense or
prosecution.
Article 2. Book and Release
1320.8. A person arrested or detained for a
misdemeanor, other than a misdemeanor listed in
subdivision (e) of Section 1320.10, may be booked
and released without being taken into custody or, if
taken into custody, shall be released from custody
without a risk assessment by Pretrial Assessment
Services within 12 hours of booking. This section
shall apply to any person who has been arrested for a
misdemeanor other than those offenses or factors
listed in subdivision (e) of Section 1320.10, whether arrested with or without a warrant.
Article 3. Pretrial Assessment
Services Investigation
1320.9. (a) Prior to arraignment, or prior to
prearraignment review for those persons eligible for
review, Pretrial Assessment Services shall obtain all of
the following information regarding each detained person, other than those persons booked and released
under Section 1320.8:
(1) The results of a risk assessment using a validated
risk assessment instrument, including the risk score
or risk level.
(2) The criminal charge for which the person was
arrested and the criminal history of the person, including the person’s history of failure to appear in
court within the past three years.
(3) Any supplemental information reasonably
available that directly addresses the arrested person’s
risk to public safety or risk of failure to appear in court
as required.
(b) The district attorney shall make a reasonable
effort to contact the victim for comment on the
person’s custody status.
(c) Prior to prearraignment review pursuant to
subdivision (a) or (b) of Section 1320.10 or Section
1320.13, or prior to arraignment, Pretrial Assessment
Services shall prepare a report containing information
obtained in accordance with subdivisions (a) and (b),
and any recommendations for conditions of the
person’s release. Options for conditions of release
shall be established by the Judicial Council and set
forth in the California Rules of Court. A copy of the
report shall be served on the court and counsel.
(d) The report described in subdivision (c), including
the results of a risk assessment using a validated risk
assessment instrument, shall not be used for any
purpose other than that provided for in this chapter.
25
Text of Proposed Laws | 77
TEXT OF PROPOSED LAWS PROPOSITION 25 CONTINUED
Article 4. Release by Pretrial
Assessment Services
1320.10. (a) Pretrial Assessment Services shall
conduct a prearraignment review of the facts and
circumstances relevant to the arrested person’s
custody status, and shall consider any relevant and
available information provided by law enforcement,
the arrested person, any victim, and the prosecution
or defense.
(b) Pretrial Assessment Services, using the
information obtained pursuant to this section and
Section 1320.9, and having assessed a person as
having a low risk to public safety and low risk of
failure to appear in court, shall release a low-risk
person on his or her own recognizance, prior to
arraignment, without review by the court, and with the
least restrictive nonmonetary condition or combination
of conditions that will reasonably assure public safety
and the person’s return to court. This subdivision does
not apply to a person booked and released under
Section 1320.8 or a person who is ineligible for
consideration for release prior to arraignment as set
forth in subdivision (e).
(c) Pretrial Assessment Services shall order the
release or detention of medium-risk persons in
accordance with the review and release standards set
forth in the local rule of court authorized under
Section 1320.11. A person released pursuant to the
local rule of court shall be released on his or her own
recognizance or on supervised own recognizance
release, prior to arraignment, without review by the
court, and with the least restrictive nonmonetary
condition or combination of conditions that will
reasonably assure public safety and the person’s
return to court. This subdivision shall not apply to a
person booked and released under Section 1320.8 or
a person ineligible for consideration prior to
arraignment pursuant to subdivision (e) of this
section. Pursuant to Section 1320.13, courts may
conduct prearraignment reviews and make release
decisions and may authorize subordinate judicial
officers to conduct prearraignment reviews and make
release decisions authorized by this chapter.
(d) A person shall not be required to pay for any
nonmonetary condition or combination of conditions
imposed pursuant to this section.
(e) Notwithstanding subdivisions (a) and (b), Pretrial
Assessment Services shall not release:
(1) A person who has been assessed in the current
case by Pretrial Assessment Services using a validated
risk assessment tool pursuant to Section 1320.9 and
is assessed as high risk.
25
(2) A person arrested for an offense listed in
paragraph (2) or (3) of subdivision (d) of Section 290.
(3) A person arrested for any of the following
misdemeanor offenses:
78 | Text of Proposed Laws
(A) A violation of Section 273.5.
(B) A violation of paragraph (1) of subdivision (e) of
Section 243.
(C) A violation of Section 273.6 if the detained
person is alleged to have made threats to kill or harm,
engaged in violence against, or gone to the residence
or the workplace of, the protected party.
(D) A violation of Section 646.9.
(4) A person arrested for a felony offense that
includes, as an element of the crime for which the
person was arrested, physical violence to another
person, the threat of such violence, or the likelihood
of great bodily injury, or a felony offense in which the
person is alleged to have been personally armed with
or personally used a deadly weapon or firearm in the
commission of the crime, or alleged to have personally
inflicted great bodily injury in the commission of the
crime.
(5) A person arrested for a third offense within the
past 10 years of driving under the influence of alcohol
or drugs or any combination thereof, or for an offense
of driving under the influence of alcohol or drugs with
injury to another, or for an offense of driving with a
blood alcohol level of .20 or above.
(6) A person arrested for a violation of any type of
restraining order within the past five years.
(7) A person who has three or more prior warrants for
failure to appear within the previous 12 months.
(8) A person who, at the time of arrest, was pending
trial or pending sentencing for a misdemeanor or a
felony.
(9) A person who, at the time of arrest, was on any
form of postconviction supervision other than informal
probation or court supervision.
(10) A person who has intimidated, dissuaded, or
threatened retaliation against a witness or victim of
the current crime.
(11) A person who has violated a condition of pretrial
release within the past five years.
(12) A person who has been convicted of a serious
felony, as defined in subdivision (c) of Section
1192.7, or a violent felony, as defined in subdivision
(c) of Section 667.5, within the past five years.
(13) A person arrested with or without a warrant for a
serious felony, as defined in subdivision (c) of Section
1192.7, or a “violent felony,” as defined in
subdivision (c) of Section 667.5.
(f) Review of the person’s custody status and release
pursuant to subdivision (b) or (c) shall occur without
unnecessary delay, and no later than 24 hours of the
person’s booking. The 24-hour period may be
extended for good cause, but shall not exceed an
additional 12 hours.
TEXT OF PROPOSED LAWS PROPOSITION 25 CONTINUED
(g) A person shall not be released on his or her own
recognizance in accordance with subdivision (b) or (c)
until the person signs a release agreement that
includes, at a minimum, all of the following from the
person:
(1) A promise to appear at all times and places, as
ordered by the court.
(2) A promise not to depart this state without the
permission of the court.
(3) Agreement to waive extradition if the person fails
to appear as required and is apprehended outside of
the State of California.
(4) Acknowledgment that he or she has been informed
of the consequences and penalties applicable to
violation of these conditions of release.
(5) Agreement to obey all laws and orders of the
court.
(h) Persons not released pursuant to this section shall
be detained until arraignment unless the court
provides prearraignment review pursuant to Section
1320.13.
Article 5. Prearraignment Review by Pretrial
Assessment Services or the Court
1320.11. (a) A superior court, in consultation with
Pretrial Assessment Services and other stakeholders,
shall adopt a local rule of court consistent with the
California Rules of Court adopted by the Judicial
Council, as described in subdivision (a) of Section
1320.25, that sets forth review and release standards
for Pretrial Assessment Services for persons assessed
as medium risk and eligible for prearraignment release
on own recognizance or supervised own recognizance.
The local rule of court shall provide for the release or
detention of medium-risk defendants, support an
effective and efficient pretrial release or detention
system that protects public safety and respects the
due process rights of defendants. The local rule shall
provide Pretrial Assessment Services with authority to
detain or release on own recognizance or supervised
own recognizance defendants assessed as medium
risk, consistent with the standards for release or
detention set forth in the rule. The local rule may
further expand the list of offenses and factors for
which prearraignment release of persons assessed as
medium risk is not permitted but shall not provide for
the exclusion of release of all medium-risk defendants
by Pretrial Assessment Services. The authority of the
local rule of court shall be limited to determinations
made pursuant to subdivision (c) of Section 1320.10.
On an annual basis, superior courts shall consider the
impact of the rule on public safety, the due process
rights of defendants, and the preceding year’s
implementation of the rule.
(b) Pursuant to subdivision (d) of Rule 10.613 of the
California Rules of Court, the court shall file with the
Judicial Council an electronic copy of the rule and
amendments to the rule adopted pursuant to this
section in a format authorized by the Judicial Council.
1320.13. (a) The court may conduct prearraignment
reviews, make release decisions, and may authorize
subordinate judicial officers, as defined in Rule
10.703 of the California Rules of Court, to conduct
prearraignment reviews and make release decisions
authorized by this chapter.
(b) The authority for court prearraignment review and
release granted by this section shall not apply to the
following persons:
(1) Persons assessed as high risk.
(2) Persons charged with a serious felony, as defined
in subdivision (c) of Section 1192.7, or a violent
felony, as defined in subdivision (c) of Section 667.5.
(3) Persons who, at the time of arrest, were pending
trial or sentencing in a felony matter.
(c) When making a prearraignment release or
detention determination and ordering conditions of
release, the information obtained under Section
1320.9 and any recommendations and options for
conditions of release shall be considered, with
significant weight given to the recommendations and
assessment of Pretrial Assessment Services.
(d) The court shall consider any relevant and available
information provided by law enforcement, the arrested
person, any victim, and the prosecution or defense
before making a pretrial release or detention
determination.
(e) (1) If the court finds the person appropriate for
prearraignment release, the arrested person shall be
released on the person’s own recognizance, or on
supervised own recognizance, with the least restrictive
nonmonetary condition or combination of conditions
that will reasonably assure public safety and the
arrested person’s appearance in court as required.
(2) A person shall not be required to pay for any
nonmonetary condition or combination of conditions
imposed pursuant to this subdivision.
(f) A person released on his or her own recognizance
shall sign a release agreement that includes, at a
minimum, all of the following from the person:
(1) A promise to appear at all times and places, as
ordered by the court.
(2) A promise not to depart this state without the
permission of the court.
(3) Agreement to waive extradition if the person fails
to appear as required and is apprehended outside of
the State of California.
(4) Acknowledgment that he or she has been informed
of the consequences and penalties applicable to
violation of these conditions of release.
(5) Agreement to obey all laws and orders of the
court.
25
Text of Proposed Laws | 79
TEXT OF PROPOSED LAWS PROPOSITION 25 CONTINUED
(g) Options for conditions of release shall be
established by the Judicial Council and set forth in
the California Rules of Court.
(h) The court may decline to release a person pending
arraignment if there is a substantial likelihood that no
condition or combination of conditions of pretrial
supervision will reasonably assure public safety or the
appearance of the person as required.
(i) There shall be a presumption that no condition or combination of conditions of pretrial supervision will
reasonably assure the safety of any other person and
the community pending arraignment if it is shown that
any of the following apply:
(1) The crime for which the person was arrested was
committed with violence against a person, threatened
violence or the likelihood of serious bodily injury, or
one in which the person committing the offense was
personally armed with or personally used a deadly
weapon or firearm in the commission of the crime, or
personally inflicted great bodily injury in the
commission of the crime.
(2) At the time of arrest, the person was on any form
of postconviction supervision, other than court
supervision or informal probation.
(3) The arrested person intimidated, dissuaded, or
threatened retaliation against a witness or victim of
the current crime.
(4) The person is currently on pretrial release and has
violated a condition of release.
1320.14. For good cause shown, the court may, at
any time by its own motion, or upon ex parte
application by the arrested person, the prosecution, or
Pretrial Assessment Services, modify the conditions of
release, with 24 hours’ notice, unless time and circumstances do not permit notice within 24 hours.
Article 6. Release or Detention
Determination at Arraignment
1320.15. At or prior to the defendant’s arraignment,
Pretrial Assessment Services shall, if the defendant
was not released pursuant to Section 1320.8, submit
all of the following information for consideration by
the court:
(a) The results of a risk assessment, including the risk
score or risk level, or both, obtained using a validated
risk assessment instrument.
(b) The criminal charge for which the person was
arrested and the criminal history of the person,
including the person’s history of failure to appear in
court within the past three years.
(c) Any supplemental information reasonably available
that directly addresses the defendant’s risk to public
safety or risk of failure to appear in court as required. 25 (d) Recommendations to the court for conditions of
release to impose upon a released defendant. Options
for conditions of release shall be established by the
80 | Text of Proposed Laws
Judicial Council and set forth in the California Rules
of Court.
1320.16. (a) The victim of the crime for which the
defendant was arrested shall be given notice of the
arraignment by the prosecution and, if requested, any
other hearing at which the custody status of the
defendant will be determined. If requested by the
victim, the victim shall be given a reasonable
opportunity to be heard on the matter of the
defendant’s custody status.
(b) The prosecution shall make a reasonable effort to
contact the victim for comment on the defendant’s
custody status.
(c) In instances where a victim cannot or does not
wish to appear at the arraignment, the prosecution
shall submit any of the victim’s comments on the
defendant’s custody status in writing to the court.
(d) The appearance or nonappearance of the victim
and any comments provided by the victim shall be
included in the record.
(e) If requested by either party, the court may review
and modify the conditions of the defendant’s release
at arraignment.
1320.17. At arraignment, the court shall order a
defendant released on his or her own recognizance or
supervised own recognizance with the least restrictive
nonmonetary condition or combination of conditions
that will reasonably assure public safety and the
defendant’s return to court unless the prosecution
files a motion for preventive detention in accordance
with Section 1320.18.
1320.18. (a) At the defendant’s arraignment, or at
any other time during the criminal proceedings, the
prosecution may file a motion seeking detention of the
defendant pending a trial, based on any of the
following circumstances:
(1) The crime for which the person was arrested was
committed with violence against a person, threatened
violence, or the likelihood of serious bodily injury, or
was one in which the person was personally armed
with or personally used a deadly weapon or firearm in
the commission of the crime, or was one in which he
or she personally inflicted great bodily injury in the
commission of the crime.
(2) At the time of arrest, the defendant was on any
form of postconviction supervision other than informal
probation or court supervision.
(3) At the time of arrest, the defendant was subject to
a pending trial or sentencing on a felony matter.
(4) The defendant intimidated or threatened
retaliation against a witness or victim of the current
crime.
(5) There is substantial reason to believe that no
nonmonetary condition or combination of conditions
of pretrial supervision will reasonably assure
TEXT OF PROPOSED LAWS PROPOSITION 25 CONTINUED
protection of the public or a victim, or the appearance
of the defendant in court as required.
(b) The court shall hold a preventive detention
hearing as set forth in Section 1320.19.
(c) Upon the filing of a motion for preventive
detention, the court shall make a determination
regarding release or detention of the defendant
pending the preventive detention hearing. When
making the release or detention determination and
ordering conditions of release pending the preventive
detention hearing, the court shall consider the
information provided by Pretrial Assessment Services,
including recommendations on conditions of release
and shall give significant weight to recommendations
and assessment of Pretrial Assessment Services.
(d) If the court determines there is a substantial
likelihood that no nonmonetary condition or
combination of conditions of pretrial supervision will
reasonably assure the appearance of the defendant at
the preventive detention hearing or reasonably assure
public safety prior to the preventive detention hearing,
the court may detain the defendant pending a
preventive detention hearing, and shall state the
reasons for detention on the record.
(e) (1) If the court determines there is not a sufficient
basis for detaining the defendant pending the
preventive detention hearing, the court shall release
the defendant on his or her own recognizance or on
supervised own recognizance and impose the least
restrictive nonmonetary condition or combination of
conditions of pretrial release to reasonably assure
public safety and the appearance of the defendant in
court as required.
(2) A person shall not be required to pay for any
nonmonetary condition or combination of conditions
imposed pursuant to this subdivision.
Article 7. Preventive Detention Hearing
1320.19. (a) If the defendant is detained in
custody, the preventive detention hearing shall be
held no later than three court days after the motion for
preventive detention is filed. If the defendant is not
detained in custody, the preventive detention hearing
shall be held no later than three court days after the
defendant is brought into custody as a result of a
warrant issued in accordance with subdivision (c). If
the defendant is not in custody at the time of the
request for a preventive detention hearing and the
court does not issue a warrant in connection with the
request for a hearing, the preventive detention hearing
shall be held within five court days of the request for
the hearing. By stipulation of counsel and with
agreement of the court, the preventive detention
hearing may be held in conjunction with the
arraignment, or within three days after arraignment.
(b) For good cause, the defense or the prosecution
may seek a continuance of the preventive detention
hearing. If a request for a continuance is granted, the
continuance may not exceed three court days unless
stipulated by the parties.
(c) The hearing shall be completed at one session,
unless the defendant personally waives his or her right
to a continuous preventive detention hearing. If the
defendant is out of custody at the time the preventive
detention hearing is requested, the court, upon the
filing of an application for a warrant in conjunction
with the motion for preventive detention, may issue a
warrant requiring the defendant’s placement in
custody pending the completion of the preventive
detention hearing.
(d) The defendant shall have the right to be
represented by counsel at the hearing. If financially
unable to obtain representation, the defendant has a
right to have counsel appointed. The defendant has
the right to be heard at the preventive detention
hearing.
(e) Upon request of the victim of the crime, the victim
shall be given notice by the prosecution of the
preventive detention hearing. If requested, the victim
shall be given a reasonable opportunity to be heard on
the matter of the defendant’s custody status.
(f) The prosecution shall make a reasonable effort to
contact the victim for comment on the defendant’s
custody status. In instances where a victim cannot or
does not wish to appear at the preventive detention
hearing, the prosecution shall submit the victim’s
comments, if any, on the defendant’s custody status
in writing to the court and counsel.
(g) The appearance or nonappearance of a victim, and
comments provided by a victim, shall be included in
the record.
1320.20. (a) There shall be a rebuttable
presumption that no condition or combination of
conditions of pretrial supervision will reasonably
assure public safety if the court finds probable cause
to believe either of the following:
(1) The current crime is a violent felony as defined in
subdivision (c) of Section 667.5, or was a felony
offense committed with violence against a person,
threatened violence, or with a likelihood of serious
bodily injury, or one in which the defendant was
personally armed with or personally used a deadly
weapon or firearm in the commission of the crime, or
was one in which he or she personally inflicted great
bodily injury in the commission of the crime; or
(2) The defendant is assessed as “high risk” to the
safety of the public or a victim and any of the
following:
(A) The defendant was convicted of a serious felony
as defined in subdivision (c) of Section 1192.7 or a
violent felony as defined in subdivision (c) of Section
667.5, within the past 5 years.
25
Text of Proposed Laws | 81
TEXT OF PROPOSED LAWS PROPOSITION 25 CONTINUED
(B) The defendant committed the current crime while
pending sentencing for a crime described in paragraph
(1) of subdivision (a).
(C) The defendant has intimidated, dissuaded, or
threatened retaliation against a witness or victim of
the current crime.
(D) At the time of arrest, the defendant was on any
form of postconviction supervision other than informal
probation or court supervision.
(b) The prosecution shall establish at the preventive
detention hearing that there is probable cause to
believe the defendant committed the charged crime or
crimes in cases where there is no indictment, or if the
defendant has not been held to answer following a
preliminary hearing or waiver of a preliminary hearing,
and the defendant challenges the sufficiency of the
evidence showing that he or she committed the
charged crime or crimes.
(c) The court shall make its decision regarding
preventive detention, including the determination of
probable cause to believe the defendant committed
the charged crime or crimes, based on the statements,
if any, of the defendant, offers of proof and argument
of counsel, input from a victim, if any, and any
evidence presented at the hearing. The court may
consider reliable hearsay in making any decision
under this section. The defendant shall have the right
to testify at the hearing.
(d) (1) At the detention hearing, the court may order
preventive detention of the defendant pending trial or
other hearing only if the detention is permitted under
the United States Constitution and under the
California Constitution, and the court determines by
clear and convincing evidence that no nonmonetary
condition or combination of conditions of pretrial
supervision will reasonably assure public safety or the
appearance of the defendant in court as required. The
court shall state the reasons for ordering preventive
detention on the record.
(2) Upon the request of either party, a transcript of
the hearing shall be provided within two court days
after the request is made.
(3) If either party files a writ challenging the decision,
the court of appeal shall expeditiously consider that
writ.
(e) (1) If the court determines there is not a sufficient
basis for detaining the defendant, the court shall
release the defendant on his or her own recognizance
or supervised own recognizance and impose the least
restrictive nonmonetary condition or combination of
conditions of pretrial release to reasonably assure
public safety and the appearance of the defendant in
court as required.
(2) A person shall not be required to pay for any
nonmonetary condition or combination of conditions
imposed pursuant to this subdivision.
(f) Solely for the purpose of determining whether the
person should be detained or to establish the least
restrictive nonmonetary conditions of pretrial release
to impose, the court may take into consideration any
relevant information, as set forth in a California Rule
of Court, including, but not limited to, all of the
following:
(1) The nature and circumstances of the crime
charged.
(2) The weight of the evidence against the defendant,
except that the court may consider the admissibility of
any evidence sought to be excluded.
(3) The defendant’s past conduct, family and
community ties, criminal history, and record
concerning appearance at court proceedings.
(4) Whether, at the time of the current crime or arrest,
the defendant was on probation, parole, or on another
form of supervised release pending trial, sentencing,
appeal, or completion of sentence for an offense
under federal law, or the law of this or any other state.
(5) The nature and seriousness of the risk to the
safety of any other person or the community posed by
the defendant’s release, if applicable.
(6) The recommendation of Pretrial Assessment
Services obtained using a validated risk assessment
instrument.
(7) The impact of detention on the defendant’s family
responsibilities and community ties, employment, and
participation in education.
(8) Any proposed plan of supervision.
(g) If a defendant is released from custody following a
preventive detention hearing, the court, in the
document authorizing the defendant’s release, shall
notify the defendant of both of the following:
(1) All the conditions, if any, to which the release is
subject, in a manner sufficiently clear and specific to
serve as a guide for the defendant’s conduct.
(2) The penalties for and other consequences of
violating a condition of release, which may include the
immediate arrest or issuance of a warrant for the
defendant’s arrest.
1320.21. (a) Upon a showing of newly discovered
evidence, facts, or material change in circumstances,
the prosecution or defense may file a motion to reopen
a preventive detention hearing or for a new hearing at
any time before trial. The court, on its own motion,
may reopen a preventive detention hearing based on
newly discovered evidence, facts, or a material change
in circumstances brought to the court’s attention by
Pretrial Assessment Services.
(b) Any motion for a hearing after the initial preventive
detention hearing shall state the evidence or
circumstances not known at the time of the preventive
detention hearing or the material change in
circumstances warranting a reopened or new
25
82 | Text of Proposed Laws
TEXT OF PROPOSED LAWS PROPOSITION 25 CONTINUED
preventive detention hearing, including whether there
are conditions of release that will reasonably assure
public safety and the defendant’s return to court as
required.
(c) Upon request of the victim of the crime, the victim
shall be given notice by the prosecution of the
reopened preventive detention hearing. If requested,
the victim shall be given a reasonable opportunity to
be heard on the matter of the defendant’s custody
status.
(d) The court may grant the motion to reopen a
preventive detention hearing or for a new hearing upon
good cause shown.
(e) The court’s determination regarding the custody
status of the defendant shall be made in accordance
with the provisions of this chapter.
1320.22. The court may issue a warrant for the
defendant’s arrest upon an ex parte application
showing that the defendant has violated a condition of
release imposed by the court. Upon the defendant’s
arrest, his or her custody status shall be reviewed in
accordance with this chapter.
1320.23. (a) If the court issues an arrest warrant,
or a bench warrant based upon a defendant’s failure
to appear in court as required, or upon allegations that
the defendant has violated a condition of pretrial or
postconviction supervision, the court may indicate on
the face of the warrant whether, at the time the
defendant is arrested on the warrant, the defendant
should be booked and released, detained for an initial
review, detained pending arraignment, or detained
pending a hearing on the violation of supervision.
(b) If the prosecution, law enforcement, or supervising
agency requests a warrant with a custody status for
the defendant other than book and release, the agency
shall provide the court with the factors justifying a
higher level of supervision or detention.
(c) The court’s release or detention indication on the
warrant shall be binding on the arresting and booking
agency and the custody facility, but is not binding on
any subsequent decision by a court or Pretrial
Assessment Services. The indication is, however, one
factor that may be considered by Pretrial Assessment
Services or the court when determining the person’s
custody status in subsequent proceedings.
(d) If the person is arrested on a misdemeanor
warrant, the determination of the person’s custody
status shall start with the procedures set forth in
Section 1320.8. If the person is arrested on a felony
warrant, the determination of the person’s custody
status shall start with the procedures set forth in
Section 1320.9.
Article 8. Administrative Responsibilities of the
Judicial Council
1320.24. (a) The Judicial Council shall adopt
California Rules of Court and forms, as needed, to do
all of the following:
(1) Prescribe the proper use of pretrial risk
assessment information by the court when making
pretrial release and detention decisions that take into
consideration the safety of the public and victims, the
due process rights of the defendant, specific
characteristics or needs of the defendant, and
availability of local resources to effectively supervise
individuals while maximizing efficiency.
(2) Describe the elements of “validation,” address
the necessity and frequency of validation of risk
assessment tools on local populations, and address
the identification and mitigation of any implicit bias
in assessment instruments.
(3) Prescribe standards for review, release, and
detention by Pretrial Assessment Services and the
court, that shall include a standard authorizing
prearraignment detention if there is a substantial
likelihood that no nonmonetary condition or
combination of conditions of pretrial supervision will
reasonably assure public safety or the appearance of
the person as required.
(4) Prescribe the parameters of the local rule of court
authorized in Section 1320.11, taking into
consideration the safety of the public and the victims,
the due process rights of the defendant, and
availability of local resources to effectively supervise
individuals while maximizing efficiency.
(5) Prescribe the imposition of pretrial release
conditions, including the designation of risk levels or
categories.
(b) The Judicial Council shall identify and define the
minimum required data to be reported by each court.
Courts shall submit data twice a year to the Judicial
Council. Data will include, but not be limited to, the
number of incidences in which individuals are:
(1) Assessed using a validated risk assessment tool,
and the risk level of those individuals.
(2) Released on own recognizance or supervised own
recognizance pursuant to:
(A) Subdivision (b) of Section 1320.10.
(B) Subdivision (c) of Section 1320.10.
(C) Section 1320.12, disaggregated by risk level.
(D) Section 1320.13, disaggregated by risk level.
(3) Detained at:
(A) Arraignment, disaggregated by risk level.
(B) A pretrial detention hearing, disaggregated by risk
level.
(4) Released pretrial on own recognizance or on
supervised own recognizance release who:
(A) Fail to appear at a required court appearance.
Text of Proposed Laws | 83
25
TEXT OF PROPOSED LAWS PROPOSITION 25 CONTINUED
(B) Have charges filed for a new crime.
(5) Considered for release or detention at a preventive
detention hearing.
(c) Pursuant to a contract under subdivision (a) of
Section 1320.26, courts may require the entity
providing pretrial assessment services to report the
data in this section to the Judicial Council, where
appropriate.
(d) On an annual basis, each court shall provide the
following information to the Judicial Council:
(1) Whether the court conducts prearraignment
reviews pursuant to Section 1320.13.
(2) The estimated amount of time required for making
release and detention decisions at arraignment and
preventive detention hearings.
(3) The validated risk assessment tool used by Pretrial
Assessment Services.
(e) The Judicial Council shall do all of the following:
(1) Compile and maintain a list of validated pretrial
risk assessment tools including those that are
appropriate to assess for domestic violence, sex
crimes, and other crimes of violence. The Judicial
Council shall consult with Pretrial Assessment
Services and other stakeholders in compiling the list
of assessment tools.
(2) Collect data as prescribed in subdivision (b).
(3) Train judges on the use of pretrial risk assessment
information when making pretrial release and
detention decisions, and on the imposition of pretrial
release conditions.
(4) In consultation with the Chief Probation Officers
of California, assist courts in developing contracts
with local public entities regarding the provision of
pretrial assessment services.
(5) On or before January 1, 2021, and every other
year thereafter, submit a report to the Governor and
the Legislature documenting program implementation
activities and providing data on program outputs and
outcomes. The initial report shall focus on program
implementation, and subsequent reports shall contain
the data described in subdivision (b). A report to be
submitted pursuant to this paragraph shall be
submitted in compliance with Section 9795 of the
Government Code.
(6) Develop, in collaboration with the superior courts,
an estimate of the amount of time taken at
arraignment to make a release or detention
determination when the determination is initially
made at arraignment, and the estimated amount of
time required for a preventive detention hearing.
(7) Convene a panel of subject matter experts and
judicial officers to carry out the responsibilities
described in subdivision (a) of Section 1320.25 and
make the information available to courts.
1320.25. (a) The panel of experts and judicial
officers as set forth in paragraph (7) of subdivision (e)
of Section 1320.24 shall designate “low,” “medium,”
and “high” risk levels based upon the scores or levels
provided by the instrument for use by Pretrial
Assessment Services in carrying out their
responsibilities pursuant to Section 1320.9.
(b) The Chief Justice shall designate four individuals
with specific subject matter expertise on scoring
pretrial risk assessment instruments and three judicial
officers with criminal law expertise, one of whom shall
be the chair, to serve on this panel. At least one of the
experts must have expertise in the potential impact of
bias in risk assessment instruments in addition to
scoring risk assessments.
1320.26. (a) The courts shall establish pretrial
assessment services. The services may be performed
by court employees or the court may contract for those
services with a qualified local public agency with
relevant experience.
(b) Before the court decides to not enter into a
contract with a qualified local public agency, the court
shall find that agency will not agree to perform this
function with the resources available or does not have
the capacity to perform the function.
(c) If no qualified local agency will agree to perform
this pretrial assessment function for a superior court,
and the court elects not to perform this function, the
court may contract with a new local pretrial
assessment services agency established to specifically
perform this role.
(d) For the purpose of the provision of pretrial
assessment services, the court may not contract with
a qualified local public agency that has primary
responsibility for making arrests and detentions within
the jurisdiction.
(e) Pretrial assessment services shall be performed by
public employees.
(f) Notwithstanding subdivision (h), the Superior
Court of the County of Santa Clara may contract with
the Office of Pretrial Services of the County of Santa
Clara to provide pretrial assessment services within
the County of Santa Clara and that office shall be
eligible for funding allocations pursuant to subdivision
(c) of Section 1320.27 and Section 1320.28.
(g) On or before February 1, 2019, the presiding
judge of the superior court and the chief probation
officer of each county, or the director of the County of
Santa Clara’s Office of Pretrial Services for that
county, shall submit to the Judicial Council a letter
confirming their intent to contract for pretrial
assessment services pursuant to this section.
(h) For the purposes of this section:
(1) “Pretrial Assessment Services” does not include
supervision of persons released under this chapter.
25
84 | Text of Proposed Laws
TEXT OF PROPOSED LAWS PROPOSITION 25 CONTINUED
(2) A “qualified local public agency” is one with
experience in all of the following:
(A) Relevant expertise in making risk-based
determinations.
(B) Making recommendations to the courts pursuant
to Section 1203.
(C) Supervising offenders in the community.
(D) Employing peace officers.
1320.27. (a) On or before January 10 of each year,
the Department of Finance, in consultation with the
Judicial Council and the Chief Probation Officers of
California, shall estimate the level of funding needed
to adequately support the pretrial assessment services
provided pursuant to this chapter. The estimate shall
be based on a methodology developed by the
Department of Finance, in consultation with the
Judicial Council of California, that will incorporate the
estimated number of defendants charged with a
criminal offense who receive a risk assessment, direct
and indirect costs associated with conducting risk
assessments, and all costs associated with making
release and detention decisions by the court and
pretrial services. The estimate shall also reflect the
direct and indirect cost of staff necessary to perform
this function. The department shall publish its
estimate and transmit it to the Legislature at the time
of the submission of the Governor’s Budget pursuant
to Section 12 of Article IV of the California
Constitution.
(b) Upon appropriation by the Legislature, the
Judicial Council shall allocate funds to local courts for
Pretrial Assessment Services. Funds shall be allocated
after consultation with key stakeholders, including
court executives, representatives of employees, and
the Chief Probation Officers of California. As
determined by the Judicial Council, the allocation
shall include a base amount to support pretrial
assessment services across the state and additional
funding based on appropriate criteria. The Judicial
Council shall consider regional variances in costs, pay
scales, and other factors when making allocation
determinations. The statewide allocation of the annual
funding for pretrial services shall be adopted by the
Judicial Council at a public meeting and shall be
published publicly.
(c) All funds for pretrial assessment services shall be
spent on direct and indirect costs exclusively related
to the delivery of those services. Local courts
contracting for pretrial assessment services entering
into contracts pursuant to Section 1320.26 shall
provide all funds received through this allocation
directly to the contracting public entity.
(d) Local public entities receiving an allocation
pursuant to this section shall separately account for
these funds and annually certify that funds have been
spent in accordance with relevant state law, including
the requirements of this section.
(e) Funds allocated pursuant to this section shall
supplement and not supplant current local funding to
support pretrial assessment services.
1320.28. (a) By January 10 of each year, the
Department of Finance, in consultation with the
Judicial Council and the Chief Probation Officers of
California, shall estimate the level of resources needed
to adequately support the provision of pretrial
supervision services provided pursuant to this chapter.
The estimate shall reflect the number of individuals
being supervised and the level of supervision required.
The estimate shall also reflect the direct and indirect
cost of personnel necessary to provide these services.
The department shall publish its estimate and
transmit it to the Legislature at the time of the
submission of the Governor’s Budget pursuant to
Section 12 of Article IV of the California Constitution.
(b) Upon appropriation by the Legislature, the
Department of Finance shall allocate funds to local
probation departments for pretrial supervision
services. For the purposes of this subdivision, the
County of Santa Clara’s Office of Pretrial Services
shall be eligible for funding within that county. In
allocating the funds, the department shall consider
regional variances in costs, pay scales, and other
factors when making allocation determinations.
Allocations shall include a base portion to support
pretrial supervision across the state, and an additional
amount based at least in part on the county’s
population of adults between 18 and 50 years of age,
and local arrest rates. The Department of Finance
shall consult with the Judicial Council, the Chief
Probation Officers of California, and key stakeholders,
including representatives of employees, when
adopting the annual allocation methodology.
(c) All funds for pretrial supervision shall be spent on
direct and indirect costs exclusively related to the
delivery of these services. All funds appropriated to
support pretrial services shall be allocated to local
entities to support pretrial supervision.
(d) Local public entities receiving an allocation
pursuant to this section shall separately account for
these funds and annually certify that funds have been
spent in accordance with relevant state law, including
the requirements of this section.
(e) Local public entities shall only be eligible for this
funding when they contract with a court for the
provision of pretrial assessment services.
(f) Funds allocated pursuant to this section shall
supplement and not supplant current local funding to
support pretrial assessment services.
1320.29. By January 10 of each year, the
Department of Finance, in consultation with the
Judicial Council, shall estimate the level of resources
needed to adequately support the Judiciary’s workload
under this chapter. The estimate shall reflect the
number of cases where the court is making detention
25
Text of Proposed Laws | 85
TEXT OF PROPOSED LAWS PROPOSITION 25 CONTINUED
determinations at arraignment, the volume of
preventive detention hearings, the average amount of
time required to make these determinations and to
conduct the hearings, administrative costs associated
with contracts for pretrial assessment services, and
other factors relating to the Judiciary’s workload
pursuant to this act. The estimate shall also reflect
average direct and indirect cost per minute of trial
court proceedings. The department shall publish its
estimate and transmit it to the Legislature at the time of the submission of the Governor’s Budget pursuant
to Section 12 of Article IV of the California Constitution.
1320.30. (a) Upon appropriation by the Legislature, the Board of State and Community Corrections shall
contract with an academic institution, public policy
center, or other research entity for an independent
evaluation of the act that enacted this section,
particularly of the impact of the act by race, ethnicity,
gender, and income level. This evaluation shall be
submitted to the Secretary of the State Senate and
the Chief Clerk of the State Assembly by no later than
January 1, 2024.
(b) Beginning in the 2019–20 fiscal year, state funds
shall supplement, not supplant, local funds allocated
to pretrial supervision, assessments, services or other
purposes related to pretrial activities, excluding
detention.
1320.31. (a) It is the intent of the Legislature that,
to the extent practicable, priority for available jail
capacity shall be for the postconviction population.
(b) The Legislature finds and declares that
implementation of this chapter will require funds
necessary to support pretrial risk assessment services,
pretrial supervision, increased trial court workload,
and necessary statewide activities to support effective
implementation. These funds are reflected in the most
recent longer term state spending plan and will be subject to appropriation in the annual Budget Act.
1320.32. Commencing October 1, 2019, all references in this code to “bail” shall refer to the
procedures specified in this chapter.
1320.33. (a) Defendants released on bail before
October 1, 2019, shall remain on bail pursuant to the
terms of their release.
(b) Defendants in custody on October 1, 2019, shall
be considered for release pursuant to Section 1320.8,
and, if not released, shall receive a risk assessment
and be considered for release or detention pursuant to this chapter.
1320.34. This chapter shall become operative on
October 1, 2019.
SEC. 5. To the extent practicable, Judicial Council
shall coordinate with the Chief Probation Officers of
California to provide training efforts, conduct joint
training, and otherwise collaborate in necessary
startup functions to carry out this act.
SEC. 6. If the Commission on State Mandates determines that this act contains costs mandated by
the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to
Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.
25
86 | Text of Proposed Laws
As required by law, the text of Proposition 14,
a bond measure, is included in the Offcial
Voter Information Guide, which was mailed to
all voter households. The text of proposed law
for Proposition 14 is also available online at
voterguide.sos.ca.gov.
VOTE SAFE at Early Voting Locations
One or more early voting locations will be available in many counties for at least four days
beginning the Saturday before the November 3, 2020, election. Voting locations will offer voter
registration, replacement ballots, accessible voting machines, and language assistance.
You can help keep voting locations safe for voters and election workers in these three ways:
Skip the line.
You can return completed ballots by mail with no stamp needed, at a secure
ballot drop box, or at a voting location. Voting locations will have separate lines
for voters dropping off completed ballots.
Find a nearby drop box or voting location at CAEarlyVoting.sos.ca.gov
2 Vote early.
If you visit a voting location in person, go before Election Day to help with
physical distancing. One or more voting locations in many counties will be open
for at least four days beginning the Saturday before Election Day.
Follow safety procedures.
Protect your health and the health of other voters and election workers at voting
locations by taking the following precautions:
1
3
VOTING LOCATION SAFETY CHECKLIST
Wear a face covering while at the voting location.
Keep 2 arms’ length distance from other people.
Wash hands before and after entering the voting location.
Use hand sanitizer after touching doors or voting equipment.
Bring a ballpoint pen to avoid touching high-contact surfaces.
Want more information about how to stay safe while voting?
Review Centers for Disease Control and Prevention guidelines at
www.cdc.gov/coronavirus/2019-ncov/community/election-polling-locations.html
Voters who can vote by mail will help ensure safe physical distancing at voting locations.
County elections offces will begin sending vote-by-mail ballots to California voters beginning
October 5, 2020. Ballots returned by mail must be postmarked by November 3, 2020; ballots
returned at a secure ballot drop box must be deposited by 8:00 p.m. on November 3, 2020.
87
VOTE SAFE with Your Vote-By-Mail Ballot
All California voters will receive a vote-by-mail ballot for the November 3, 2020, election. Your
county elections offce will begin mailing ballots, similar to the one pictured below, beginning
October 5, 2020.
Vote-by-mail
Offcial ballot
Vota por correo
Boleta ofcial
Franklin County Elections Department 4321 Franklin Avenue Franklin, HN 99999-1234
RETURN SERVICE REQUESTED
OFFICIAL VOTE-BY-MAIL BALLOT MATERIAL
Valentina Q. Voter
5678 Seventh Ave, Apt 9863 Franklin, HN 99999 –1278
Voting by mail is SAFE and EASY.
After marking your choices on your ballot, simply:
Seal it.
Secure your ballot inside the envelope from your county elections offce.
Sign it.
Make sure the signature on your ballot envelope matches the one on your CA driver
license/state ID, or the one you provided when registering. Your county elections offce
will compare them to protect your vote.
Track it.
You can sign up at wheresmyballot.sos.ca.gov for alerts by text (SMS),
email, or voice call on the status of your vote-by-mail ballot.
Return it.
By mail—Make sure your
ballot is postmarked by
November 3, 2020.
No stamp required!
In person—Drop your ballot off at a
secure drop box, polling place, vote
center, or county elections offce by
8:00 p.m. on November 3, 2020.
OR
Voters who can vote by mail will help ensure safe physical distancing at voting locations. Voting
locations will be available in all counties before Election Day. Voting locations will offer voter
registration, replacement ballots, accessible voting machines, and language assistance.
88
The California Secretary of State is now offering voters a new way to track and receive
notifcations on the status of their vote-by-mail ballot. The “Where’s My Ballot?” tool
lets voters know where their ballot is, and its status, every step of the way. Sign up at
WheresMyBallot.sos.ca.gov.
When you sign up for “Where’s My Ballot?” you will receive automatic updates when
your county elections offce:
• Mails your ballot,
• Receives your ballot,
• Counts your ballot, or
• If there are any issues with your ballot.
Voters who sign up at WheresMyBallot.sos.ca.gov can choose to receive automatic
updates by:
• Email
• Text Message (SMS)
• Voice Call
Tracking your ballot
—when it is mailed, received, and counted—
has never been easier.
WheresMyBallot.sos.ca.gov
89
Elections in California
The Top Two Candidates Open Primary Act requires that all candidates for
a voter-nominated offce be listed on the same ballot. Previously known as
partisan offces, voter-nominated offces include state legislative offces,
U.S. congressional offces, and state constitutional offces.
In both the open primary and general elections, you can vote for any candidate
regardless of what party preference you indicated on your voter registration
form. In the primary election, the two candidates receiving the most votes—
regardless of party preference—move on to the general election. If a candidate
receives a majority of the vote (at least 50 percent +1), a general election still
must be held.
California’s open primary system does not apply to candidates running for
U.S. President, county central committees, or local offces.
Write-in candidates for voter-nominated offces can still run in the primary
election. However, a write-in candidate can only move on to the general
election if the candidate is one of the top two vote-getters in the primary
election. Additionally, there is no independent nomination process for a
general election.
California law requires the following information to be printed in this guide.
Party-Nominated/Partisan Offces
Political parties may formally nominate candidates for party-nominated/partisan
offces at the primary election. A nominated candidate will represent that party
as its offcial candidate for the specifc offce at the general election, and the
ballot will refect an offcial designation. The top vote-getter for each party at
the primary election moves on to the general election. Parties also elect offcers
of county central committees at the primary election.
A voter can only vote in the primary election of the political party he or she has
disclosed a preference for upon registering to vote. However, a political party
may allow a person who has declined to disclose a party preference to vote in
that party’s primary election.
U.S. presidential candidate statements can
be found online at voterguide.sos.ca.gov
90
ELECTIONS IN CALIFORNIA CONTINUED
Voter-Nominated Offces
Political parties are not entitled to formally nominate candidates for voter-
nominated offces at the primary election. A candidate nominated for a voter-
nominated offce at the primary election is the nominee of the people and
not the offcial nominee of any party at the general election. A candidate for
nomination to a voter-nominated offce shall have his or her qualifed party
preference, or lack of qualifed party preference, stated on the ballot, but
the party preference designation is selected solely by the candidate and is
shown for the information of the voters only. It does not mean the candidate is
nominated or endorsed by the party designated, or that there is an affliation
between the party and candidate, and no candidate nominated by the voters
shall be deemed to be the offcially nominated candidate of any political party.
In the county Voter Information Guide, parties may list the candidates for voter-
nominated offces who have received the party’s offcial endorsement.
Any voter may vote for any candidate for a voter-nominated offce, if they meet
the other qualifcations required to vote for that offce. The top two vote-getters
at the primary election move on to the general election for the voter-nominated
offce even if both candidates have specifed the same party preference
designation. No party is entitled to have a candidate with its party preference
designation move on to the general election, unless the candidate is one of the
two highest vote-getters at the primary election.
Nonpartisan Offces
Political parties are not entitled to nominate candidates for nonpartisan offces
at the primary election, and a candidate at the primary election is not the
offcial nominee of any party for the specifc offce at the general election.
A candidate for nomination to a nonpartisan offce may not designate his or
her party preference, or lack of party preference, on the ballot. The top two
vote-getters at the primary election move on to the general election for the
nonpartisan offce.
Top Contributors to State Candidates and Ballot Measures
When a committee (a person or group of people who receive or spend money for the purpose of
infuencing voters to support or oppose candidates or ballot measures) supports or opposes a ballot
measure or candidate and raises at least $1 million, the committee must report its
top 10 contributors to the California Fair Political Practices Commission (FPPC). The
committee must update the top 10 list when there is any change.
These lists are available on the FPPC website at
http://www.fppc.ca.gov/transparency/top-contributors.html
91
Voter Registration
If you have already registered to vote, you do not need to re-register unless you change your name, home
address, mailing address, or if you want to change or select a political party.
You can register to vote online at registertovote.ca.gov or call the Secretary of State’s toll-free Voter Hotline
at (800) 345-VOTE (8683) to get a form mailed to you.
Voter registration forms can be found at most post offces, libraries, city and county government offces,
county elections offces, and the California Secretary of State’s Offce.
Conditional Voter Registration
During the period of 14 days prior to Election Day and including Election Day, you can go to the
offce of your county elections offcial, a vote center, or polling place to conditionally register to vote and
vote. To learn more visit sos.ca.gov/elections/voter-registration/same-day-reg/.
Voter Registration Privacy Information
Safe at Home Confdential Voter Registration Program: Certain voters facing life-threatening situations
(i.e. victims and survivors of domestic violence, stalking, sexual assault, human traffcking,
elder/dependent adult abuse) may qualify for confdential voter status if they are active members of the
Safe at Home program. For more information, contact the Secretary of State’s Safe at Home program
toll-free at (877) 322-5227 or visit sos.ca.gov/registries/safe-home/.
Voter Information Privacy: Information on your voter registration affdavit will be used by elections offcials
to send you offcial information on the voting process, such as the location of your polling place and the
issues and candidates that will appear on the ballot. Commercial use of voter registration information is
prohibited by law and is a misdemeanor. Voter information may be provided to a candidate for offce, a
ballot measure committee, or other person for election, scholarly, journalistic, political, or governmental
purposes, as determined by the Secretary of State. Driver license and social security numbers, or your
signature as shown on your voter registration card, cannot be released for these purposes. If you have
any questions about the use of voter information or wish to report suspected misuse of such information,
please call the Secretary of State’s toll-free Voter Hotline at (800) 345-VOTE (8683).
Pre-register at sixteen. Vote at eighteen.
Pre-registration is available online for eligible 16- and 17-year-olds at registertovote.ca.gov or via the paper
registration form. California youth who pre-register to vote will have their registration become active once
they turn 18 years old.
Pre-register in 4 easy steps:
1.Visit registertovote.ca.gov.
2.Click the “Pre-register to Vote” button.
3.Become automatically registered on your 18th birthday.
4.Cast your ballot on Election Day!
What is Pre-registration?
If you are 16 or 17 years old and meet all other voter eligibility requirements, you can pre-register to vote
at registertovote.ca.gov.
Simply complete the online pre-registration application and on your 18th birthday, you will automatically be
registered to vote.
92
How to vote by mail
Who can vote by mail?
Every registered voter will receive a vote-by-mail ballot for the November 3, 2020, General Election.
County elections offcials will begin mailing ballots to voters by October 5, 2020. If you do not
receive your vote-by-mail ballot or need to request a replacement, please contact your county
elections offce. County elections offce contact information can be found at
sos.ca.gov/elections/voting-resources/county-elections-offces.
How to return your vote-by-mail ballot
After marking your choices on your vote-by-mail ballot, place it in the offcial envelope provided by
your county elections offce and seal it. Sign the envelope where directed. You have multiple options
for returning your ballot.
To ensure your ballot arrives by the deadline, return it either:
By mail—must be postmarked on or before November 3 and received by your county elections
offce no later than November 20. No postage is required!
In person—drop off at your county elections offce or any vote center, polling place, or ballot
drop-off location in California before the polls close at 8:00 p.m. on November 3.
State law gives voters the freedom to designate anyone they choose to return their vote-by-mail
ballots. However, we recommend that you only sign your completed ballot over to someone you trust.
And never hand over your vote-by-mail ballot if you have not sealed and signed the back of the return
envelope provided by your county elections offce.
Even if you receive your vote-by-mail ballot and envelope, you can still vote in person at your polling
place on Election Day. Bring your vote-by-mail ballot to the polling place and give it to a poll worker
to exchange for a polling place ballot. If you do not have your vote-by-mail ballot and envelope, you
may have to vote using a provisional ballot. This ensures that you have not already cast a ballot.
All counties offer an accessible option called remote accessible vote-by-mail (RAVBM). RAVBM
allows voters with disabilities to receive their ballots at home and mark them independently and
privately before sending them back to elections offcials. Contact your county elections offcial for
more information.
Want to see the November 3, 2020, General Election results
after the polls close at 8:00 p.m.? Visit the California Secretary
of State’s Election Results website at electionresults.sos.ca.gov.
The Election Results website is updated every fve minutes on
Election Night as counties report results to the Secretary of State. County elections offcials send
semi-offcial election results to the Secretary of State’s website after the polls close at 8:00 p.m. and
continue to send updates at least every two hours until all election day ballots are counted.
Beginning on November 5 through December 3, 2020, the Election Results website will update
every day at 5:00 p.m. as counties count the remaining ballots.
The offcial results of the election will be posted by December 11, 2020, at sos.ca.gov/elections/.
93
Assistance for Voters with Disabilities
California is committed to ensuring every voter can cast their ballot privately and
independently.
For more detailed information about what assistance your county offers to voters
with disabilities, please check your county Voter Information Guide or contact your
county. County contact information is available at
sos.ca.gov/elections/voting-resources/county-elections-offces.
Voting at a Polling Place or Vote Center
If you need help marking your ballot, you may choose up to two people to help you.
This person cannot be:
• Your employer or anyone who works for your employer
• Your labor union leader or anyone who works for your labor union
Curbside voting allows you to park as close as possible to the voting area. Elections
offcials will bring you a roster to sign, a ballot, and any other voting materials
you may need, whether you are actually at a curb or in a car. Contact your county
elections offce to see if curbside voting is available at your polling place or vote
center.
All polling places and vote centers are required to be accessible to voters with
disabilities and will have accessible voting machines.
Voting at Home
Remote accessible vote-by-mail (RAVBM) systems provide an accessible option for
voters with disabilities to receive their ballots at home and mark them independently
and privately before sending them back to elections offcials. Contact your county
elections offcial for more information.
Audio & Large Print Voter Information Guides
This guide is available in audio and large print versions. The guide is also available
at no cost in English, Chinese, Hindi, Japanese, Khmer, Korean, Spanish, Tagalog,
Thai, and Vietnamese.
To order:
Call the Secretary of State’s toll-free Voter Hotline at (800) 345-VOTE (8683)
Visit voterguide.sos.ca.gov
Download an audio MP3 version at voterguide.sos.ca.gov/en/audio
94
DATES TO REMEMBER!
REMEMBER TO VOTE!
Polls are open from 7:00 a.m. to 8:00 p.m. on Election Day!
OCTOBER
S M T W T F S
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
October 5, 2020
Counties will begin mailing
vote-by-mail ballots.
October 19, 2020
Last day to register to vote. You
can “conditionally” register and
vote at your county elections
offce or voting location after
the 15-day voter registration
deadline.
NOVEMBER
S M T W T F S
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30
November 3, 2020
Election Day!
95
/Hindi: (888) 345-2692
California Secretary of State
Elections Division
1500 11th Street
Sacramento, CA 95814
All California voters will receive a vote-by-mail ballot for the
November 3, 2020, election. Learn more inside.
English: (800) 345-VOTE (8683) TTY/TDD: (800) 833-8683
Todos los votantes de California recibirán una boleta electoral
de voto por correo para la elección del 3 de noviembre de
2020. Para preguntas o asistencia al votante, llame al número
a continuación.
Español/Spanish: (800) 232-VOTA (8682)
所有加州選民將收到用於 2020 年 11 月 3 日選舉的郵
寄投票選票。如有疑問或需要提供選民協助，請致電
下列號碼。
中文 /Chinese: (800) 339-2857
/Hindi: (888) 345-2692
すべてのカリフォルニア州有権者には 2020 年 11 月 3 日選挙の
郵便投票用紙が送られます。お問 い合わせまたは有権者の支
援に関しては、以下 の番号までお電話ください。
/Japanese: (800) 339-2865
NONPROFIT
U.S. POSTAGE PAID
CALIFORNIA SECRETARY OF STATE
/Khmer: (888) 345-4917
모든 캘리포니아 유권자는 2020֙ 11ਘ 3ੌ 선거를 위한
우편 투표지 받게 됩 니다. 문의 사항 또는 유권자 지원을
원하시면, 아 래 전화번호로 연락해주십시오.
/Korean: (866) 575-1558
Tatanggap ang lahat ng botante ng California ng balota para
sa pagboto sa pamamagitan ng koreo para sa halalan sa
Nobyembre 3, 2020. Para sa mga katanungan o tulong sa
botante, mangyaring tawagan ang numero sa ibaba.
Tagalog: (800) 339-2957
3 2020
/Thai: (855) 345-3933
/Vietnamese: (800) 339-8163
OSP 20 150162