California Code of Regulations

TITLE 4. Business Regulations

Article 1. Violation of Rules [Repealed]

HISTORY

1. Repealer of article 1 (section 1) filed 11-6-96; operative 12-6-96 (Register 96, No. 45). For prior history, see Register 77, No. 25.

Article 2. Records

§4. General. [Repealed]

Note • History

NOTE

Authority cited for repealer filed 3-18-55: Sections 24432, 25750, 25752, Business and Professions Code, and Section 22, Article XX, California Constitution. Issuing agency: State Board of Equalization.

HISTORY

1. Amendment filed 11-15-45 as an emergency; effective upon filing (Register 2).

2. Repealer filed 3-18-55; effective 30th day thereafter (Register 55, No. 4).

§6. Price of License Acquisition. [Repealed]

Note • History

NOTE

Authority cited: Section 25750, Business and Professions Code, and Section 22 of Article XX, California Constitution.

HISTORY

1. New Section 6 filed 10-8-64 as an emergency; effective upon filing (Register 64, No. 20).

2. Repealer filed 9-24-65; effective thirtieth day thereafter (Register 65, No. 18).

§7. Retail Distilled Spirits Licensees: Records. [Repealed]

Note • History

NOTE

Authority cited: Section 25750, Business and Professions Code. Reference: Sections 23334 and 25752, Business and Professions Code.

HISTORY

1. Amendment filed 11-16-67; effective thirtieth day thereafter (Register 67, No. 46). For prior history, see Register 64, No. 8.

2. Amendment filed 8-6-70; designated effective 9-8-70 (Register 70, No. 32).

3. Repealer of NOTE and new NOTE filed 6-17-77; effective thirtieth day thereafter (Register 77, No. 25).

4. Repealer filed 6-4-84; effective thirtieth day thereafter (Register 84, No. 23).

§8. Common Carriers.

Note • History

(a) Definition. For the purposes of Section 23661 of the Alcoholic Beverage Control Act, ``common carriers” are steamship companies and railroads, or any persons who hold themselves out to the general public to transport in interstate or foreign commerce any class or classes of passengers or property, or both, for compensation by air or highway, who actually engage in such transportation, and who hold an interstate alcoholic beverage transporter's permit as required by Section 32109 of the Revenue and Taxation Code.

Persons who transport only property owned or consigned to themselves shall not be deemed to be common carriers within the meaning of this section.

(b) Receipts and Delivery Reports.

Licensed importers and customs brokers shall furnish common carrier and holders of interstate alcoholic beverage transporter's permits, transporting alcoholic beverages into this State from without this State for delivery or use within this State, a receipt for the alcoholic beverages so transported and delivered. This receipt must show the following information:

Name of the shipper, point of origin, name of importer or customs broker to whom delivery is made, place of delivery, name of carrier making delivery, a complete description of the shipment, and the number of the waybill covering the shipments. In the case of rail shipments, the receipt shall show also the car number and in the case of water shipments, the receipt shall show also the name of the vessel and the number of the steamship bill of lading.

A copy of the freight bill or other shipping document containing all of this information shall be deemed to be compliance with this requirement. A copy of such receipt must be retained by the importer or customs broker to whom delivery is made. With respect to pool shipments in which more than one licensed importer or customs broker participates, each participating importer or customs broker shall retain a copy of the receipt.

NOTE

Authority cited: Sections 23661, 25750 and 25752, Business and Professions Code; Section 22, Article XX, California Constitution.

HISTORY

1. New section filed 4-4-58; designated effective 5-15-58 (Register 58, No. 6).

§9. Winegrower's or Wine Blender's Annual Report.

Note • History

Every licensed winegrower or wine blender shall report to the Department of Alcoholic Beverage Control his total gallonage of wine produced or blended for the 12-month period ending June 30th of each year. Such report shall be submitted before August 1st of each year on departmental Form ABC-261.

NOTE

Authority cited: Sections 23320, 23327, 25750 and 25752, Business and Professions Code; Section 22, Article XX, California Constitution.

HISTORY

1. New section filed 4-4-58; designated effective 5-15-58 (Register 58, No. 6).

2. Amendment filed 11-16-67; effective thirtieth day thereafter (Register 67, No. 46).

§10. Beer Wholesalers' Records. [Repealed]

Note • History

NOTE

Authority cited: Section 25750, Business and Professions Code.

HISTORY

1. New section filed 11-16-67; effective thirtieth day thereafter (Register 67, No. 46).

2. Repealer filed 6-4-84; effective thirtieth day thereafter (Register 84, No. 23).

§12. Beer and Wine. [Repealed]

Note • History

NOTE

Additional authority cited for amendment filed 10-18-49: Section 22, Article XX, California Constitution and Section 38a, Alcoholic Beverage Control Act. Additional authority cited for repealer filed 3-18-55: Sections 24432, 25750 and 25752, Business and Professions Code. Issuing agency: State Board of Equalization.

HISTORY

1. Originally published 3-22-45 (Title 4).

2. Amendment filed 11-15-45 as an emergency (Register 2).

3. Amendment filed 10-18-49 as an emergency designated to be effective 11-1-49 (Register 18, No. 3).

4. Repealer filed 3-18-55; effective thirtieth day thereafter (Register 55, No. 4).

§14. Beer Sold to Instrumentalities of the Armed Forces. [Repealed]

Note • History

NOTE

Authority cited: Sections 6a, 38 and 38a of the Alcoholic Beverage Control Act. Additional authority cited, Sections 24440 and 25750, Business and Professions Code. Additional authority cited for repealer filed 3-18-55: Section 25752, Business and Professions Code. Issuing agency: State Board of Equalization.

HISTORY

1. New section filed 6-15-51 as an emergency; effective upon filing (Register 24, No. 5).

2. Amendment filed 9-25-53 as an emergency; designated effective 10-1-53 (Register 53, No. 17).

3. Repealer filed 3-18-55; effective thirtieth day thereafter (Register 55, No. 4).

Article 4. Invoices

§17. Contents of Sales Invoices and Retail Delivery Orders.

Note • History

(a) Every sale or delivery of alcoholic beverages, except beer, from one licensee to another licensee must be recorded on a sales invoice, whether or not consideration is involved. Invoices covering the sale or purchase of alcoholic beverages must be filed in such manner as to be readily accessible for examination by employees of the department and shall not be commingled with invoices covering only commodities other than alcoholic beverages.

Each sales invoice shall have printed thereon the name and address of the seller and shall show the following information:

(1) Name and address of the purchaser. The name of the purchaser may be shown as the name of the licensee or the trade name under which the purchaser operates, or both the name of said licensee and the trade name under which he operates. When the trade name only of said licensee is used on the invoice, the vendor shall keep a record on his licensed premises showing the name of the licensee as set forth on the license certificate issued by the department.

Any licensee who is authorized to sell and who does sell to another licensee shall keep a record showing the name or names of the person or persons to whom the license of the purchasing licensee is issued. These records shall be kept for a period of three years.

(2) Date of sale and invoice number.

(3) Kind, quantity, size, and capacity of packages of alcoholic beverages sold.

(4) The cost to the purchaser, together with any discount which at any time is to be given on or from the price as shown on the invoice.

(5) The place from which delivery of the alcoholic beverages was made unless delivery was made from the premises of the licensee or from a public warehouse located in the same county.

(6) Invoices covering sales of distilled spirits by distilled spirits taxpayers to other distilled spirits taxpayers shall show, in addition to the above, the total number of wine gallons covered by the invoice.

(b) Invoices covering sales of wine in internal bond by a wine grower to another wine grower must also show that delivery was made ``in bond.”

(c) Invoices covering sales of alcoholic beverages for use in trades, professions, or industries, and not for beverage use, must be marked or stamped: “No state tax--not for beverage use.”

(d) Invoices covering the sale of alcoholic beverages for export must be marked or stamped: “Sold for export.”

(e) No alcoholic beverage shall leave the premises of an off-sale licensee for delivery to a consumer, except pursuant to an order previously received by such licensee. Such alcoholic beverages shall be accompanied by a delivery order, which order must state the quantity, brand, proof, and price of such alcoholic beverages, and the name and address of the consumer purchaser, and shall have printed or stamped thereon the name and address of such off-sale licensee. A copy of such order shall be kept on file by the off-sale licensee for a period of two years after the date of delivery.

NOTE

Authority cited: Sections 25750 and 25752, Business and Professions Code; Section 22, Article XX, California Constitution.

HISTORY

1. Amendment of Subsection (a)(1) filed 5-7-74; designated effective 6-10-74 (Register 74, No. 19). For prior history, see Register 56, No. 19.

2. Amendment of NOTE filed 6-17-77; effective thirtieth day thereafter (Register 77, No. 25).

§18. Return of Distilled Spirits by Retailer; Application for Approval by Department; Exceptions. [Repealed]

Note • History

NOTE

Authority cited: Section 25750, Business and Professions Code. Reference: Sections 23104.3 and 25503, Business and Professions Code.

HISTORY

1. New section filed 10-2-56; designated effective 12-1-56 (Register 56, No. 19).

2. Amendment filed 8-10-73; designated effective 9-12-73 (Register 73, No. 32).

3. Repealer of NOTE and new NOTE filed 6-17-77; effective thirtieth day thereafter (Register 77, No. 25).

4. Repealer filed 6-4-84; effective thirtieth day thereafter (Register 84, No. 23).

§19. Return of Wine by Retailer; Application for Approval by Department; Records. [Repealed]

Note • History

NOTE

Authority cited: Sections 24879, 24881, 25750 and 25752, Business and Professions Code and Section 22, Article XX, California Constitution.

HISTORY

1. New section filed 12-6-68; designated effective 1-8-69 (Register 68, No. 46).

2. Repealer filed 11-6-96; operative 12-6-96 (Register 96, No. 45).

Article 5. Inventories

§27. Retail Store--Qualifications.

Note • History

“Retail store” means premises which hold only an off-sale beer and wine or an off-sale general license. Premises may be licensed as a retail store provided the licensee at such premises complies with the following provisions:

(a) Alcoholic beverages shall be sold only in the original package for consumption off the premises.

(b) Alcoholic beverages offered for sale shall be displayed and available for convenient inspection and purchase by the general public. The licensee shall not refuse to sell, for immediate delivery, to qualified purchasers any item of alcoholic beverages on display for sale.

(c) All alcoholic beverages sold shall be delivered from the licensed premises, and shall not be delivered from a supply of alcoholic beverages stored off the licensed premises.

(d) The licensee may accept telephone orders for the purchase of alcoholic beverages only during the hours in which the retail store is open to the general public.

NOTE

Authority cited: Sections 23025, 23300, 23355, 23393, and 23394, Business and Professions Code.

HISTORY

1. New section filed 8-16-72; designated effective 9-20-72 (Register 72, No. 34). For history of former section, see Register 57, No. 7.

§28. Distilled Spirits Wholesalers: Qualifications.

Note • History

No distilled spirits wholesaler's license shall be held by any person who does not meet the following qualifications in connection with his premises licensed as his principal place of business:

(a) Maintains warehouse space either owned or leased by him or dedicated to his use in a public warehouse and such space is sufficient to store at one time either

(1) A stock of distilled spirits equal to 10 percent or more of his annual case volume of distilled spirits sales to retailers within this State, or,

(2) A stock of distilled spirits whose cost of acquisition is one hundred thousand dollars or more.

(b) Maintains at all times in his warehouse either owned or leased by him or in space dedicated to his use in a public warehouse a stock of distilled spirits consisting of either

(1) Not less than 5 percent of his annual sales to retailers within this State, or,

(2) Whose cost of acquisition is one hundred thousand dollars or more.

The stock of distilled spirits herein required shall be:

(a) owned by him,

(b) not held on consignment,

(1) A wholesaler who sells to 25 percent of the retailers in the county wherein his wholesale licensed premises are located, or a wholesaler whose total volume of sales of distilled spirits to retailers during any 12-month period consists of 50 percent or more of individual sales in quantities of 10 cases or less shall be conclusively presumed to be selling to retailers generally.

A rectifier who purchases any distilled spirits in packages containing one gallon or less and sells such distilled spirits to retail licensees shall comply with the provisions of this rule.

NOTE

Authority cited: Sections 23778, 23779, 25750, Business and Professions Code; Section 22, Article XX, California Constitution.

HISTORY

1. New section filed 10-2-56; designated effective 6-1-57 (Register 56, No. 19).

2. Amendment filed 2-8-72; designated effective 3-10-72 (Register 72, No. 7).

3. Amendment to NOTE filed 6-17-77; effective thirtieth day thereafter (Register 77, No. 25).

§28.1. Distilled Spirits Rectifier--Qualifications. [Repealed]

History

HISTORY

1. Repealer filed 4-13-73; designated effective 5-18-73 (Register 73, No. 15). For prior history, See Register 72, No. 34.

§29. Storage by Retailer on Wholesaler's Premises. [Repealed]

Note • History

NOTE

Authority cited: Section 25750, Business and Professions Code.

HISTORY

1. New section filed 10-2-56; designated effective 12-1-56 (Register 56, No. 19).

2. Amendment to NOTE filed 6-18-77; effective thirtieth day thereafter (Register 77, No. 25).

3. Repealer filed 6-4-84; effective thirtieth day thereafter (Register 84, No. 23).

Article 6. Reports [Repealed]

HISTORY

1. Repealer of article 6 (sections 30-32) filed 11-6-96; operative 12-6-96 (Register 96, No. 45). For prior history, see Register 84, No. 23.

Article 7. Losses and Allowances [Repealed]

HISTORY

1. Repealer of article 7 (sections 35-36) filed 6-4-84; operative 7-5-84 (Register 84, No. 23). For prior history, see Register 73, No. 29.

Article 8. Classification of Particular Beverages [Repealed]

HISTORY

1. Repealer of article 8 (section 49) filed 6-4-84; operative 7-5-84 (Register 84, No. 23). For prior history, see Register 45, No. 2.

Article 9. Samples

§52. Restrictions on Giving.

Note • History

(a) Samples.

(1) Samples of alcoholic beverages may be given only to licensees or employees or agents of licensees who are eligible to purchase alcoholic beverages of the kind given as samples, and samples may be given only to licensees who have not previously purchased the particular product, or to their employees or agents, for the sole purpose of permitting them to determine the grade, type, and quality of the alcoholic beverages.

(2) Such samples shall not exceed in quantity the following: wine, one quart or one liter when bottled; beer, one bottle or can opened on the premises of the licensee; and distilled spirits, 500 milliliters, or in the smallest size regularly marketed where the brand is not bottled in 500 milliliters, containers. The limit herein stated as to wine samples shall not apply to bulk samples submitted for processing purposes.

(3) Only one sample of each grade, type, or quality shall be given at any one time as to wine and distilled spirits.

(4) Each sample of distilled spirits and wine shall have stamped on its brand label the words: “Sample--not for sale,” in letters not less than one-fourth inch in height.

(5) A distilled spirits manufacturer, distilled spirits manufacturer's agent, or rectifier may supply such samples to his own salesmen or to the salesmen of a licensed wholesaler.

(6) Licensees who are authorized to give away samples of any type of alcoholic beverage shall keep a record of all samples so given away. Such record shall be completed within seven calendar days following removal from stock, or from the licensed premises, and the record shall state: the brand, type of alcoholic beverage and size of the sample package; the name of the salesman who removes the sample package and the date of such removal; the name of the licensee to whom any sample is given, together with the brand, type of alcoholic beverage, and quantity thereof, and the date the sample is given. Such records of samples shall be retained for a period of three years.

(b) Gifts. Licensees or officers, agents or employees of licensees may make gifts of alcoholic beverages to nonlicensees provided such gifts are not made in connection with the sale of an alcoholic beverage.

NOTE

Authority cited: Sections 23025, 23386, 25750 and 25752, Business and Professions Code and Section 22 of Article XX, California Constitution. Reference: Sections 23025, 23386 and 25752, Business and Professions Code.

HISTORY

1. Amendment of subsection (a)(6) filed 12-6-68; designated effective 1-8-69 (Register 68, No. 46). For prior history, see Register 55, No. 4.

2. Amendment of subsection (a) (2) filed 6-18-80; effective thirtieth day thereafter (Register 80, No. 25).

§53. Samples Used in Winetastings.

Note • History

A winetasting is a presentation of samples of one or more wines, representing one or more wineries or industry labels, to a group of consumers for the purpose of acquainting the tasters with the characteristics of the wine or wines tasted.

Licensees may engage in winetasting activities only as set forth in statute and this rule. In addition to furnishing wines as provided herein, licensees may supply small amounts of bread, crackers, cheeses or nuts to clear the taste buds of the participants between successive samples of wine during a winetasting.

(a) Winetastings Sponsored by Winegrowers and Wine Blenders.

(1) Winetastings may be conducted without charge or for a fee for the public on a premises licensed with a winegrower's license, duplicate winegrower's license, or California winegrower's agent's license, and on a premises licensed on or before February 2, 1968, with a wine blender's license, provided, however, that no winetasting shall be held on that portion of a winegrower's or duplicate winegrower's premises which is licensed with a retail license.

(2) Wine blenders, licensed on or before February 2, 1968, winegrowers, and California winegrower's agents may conduct winetastings at unlicensed premises, provided, however, that the tasting shall be only by invitation of the wine blender, winegrower, or California winegrower's agent involved; that there shall be no charge or donation made either for the wine served or for admission to the premises; and that the premises shall not be open to the general public during the time that wine is served, consumed, or otherwise disposed of. Only wine which was produced or bottled by such winegrower, or was produced or bottled by the principal of such California winegrower's agent, or was bottled by such wine blender, or was produced and bottled for such winegrower, for the principal of such California winegrower's agent, or for such wine blender may be offered for tastings off a licensed premises. All wine which is not consumed at the tasting shall be retained by the licensee conducting the tasting.

(b) Winetastings Sponsored by Private Organizations. Winegrowers, California winegrower's agents, and wine blenders licensed on or before February 2, 1968, may furnish wine which is produced or bottled by such winegrower or the principal of a California winegrower's agent, or bottled by such wine blender; or is produced and bottled for such winegrower, for the principal of such California winegrower's agent, or for such wine blender; and may conduct winetastings which are sponsored by a bona fide charitable, fraternal, political, religious, trade, service, or similar private organization, where all of the following conditions shall prevail:

(1) The sponsor shall be a nonprofit organization.

(2) Attendance shall be limited to members of the sponsoring organization and their invited guests.

(3) No charge or donation shall be made either for the wine served or for admission to the premises.

(4) There shall be no advertising or public announcements of the event as a winetasting, and the general public shall not be invited.

(5) No wine shall be sold, and no sales or orders solicited, nor shall order blanks be placed in or about the premises. Brochures describing wines and their prices may be distributed, provided that they are not suitable for use as order blanks. No wine may be given as a gift, or as a prize to be removed from the premises.

(6) Winetastings sponsored by private organizations may be held on unlicensed premises. They may also be held on premises regularly licensed with an on-sale general or on-sale beer and wine license, provided that the tastings are held in a banquet room or other portion of the premises which is completely separated from that portion of the premises where the sale of alcoholic beverages is being made; that no consumption of other alcoholic beverages is permitted; and that the retail licensee has surrendered the privileges of his license for the period the winetasting is being conducted on that portion of the retail premises in which the winetasting will take place, on a form provided by the department.

(c) Winetastings Sponsored by Foreign Consulates or Commercial Attachés. A licensed importer of wines may donate wines for the purpose of winetastings to be conducted by the consular service or commercial attaché of the country of origin of the wine donated, but may not otherwise participate in the winetasting, provided:

(1) Admission to the tasting shall be by invitation only.

(2) There shall be no advertising or announcement of the event as a tasting to the general public, and the general public shall not be invited.

(3) No wine shall be sold, and no sales or orders solicited, nor shall order blanks be placed in or about the premises. Brochures describing wines and their prices may be distributed, provided they are not suitable for use as order blanks.

(4) Winetastings conducted by foreign consulates or commercial attachés may be held on unlicensed premises. They may also be held on premises regularly licensed with an on-sale general or on-sale beer and wine license, provided that the tastings are held in a banquet room or other portion of the premises which is completely separated from that portion of the licensed premises to which the public is admitted; that they are held in a portion of the premises where no sale of alcoholic beverages is being made, and no consumption of other alcoholic beverages is permitted; and that they are held in that portion of the retail premises for which the retailer has surrendered the licensed privileges for the period the winetasting is being conducted, on a form provided by the department.

(d) Club Licensees. No licensee shall furnish or donate wines for tastings to be held on a premises licensed by the department with any type of club license.

(e) Retail Licensees. No winetasting shall be given for the benefit of any retail licensee, and no retail licensee shall participate in a winetasting directly or indirectly, except as provided in statute or this rule.

(f) Records. Licensees who are authorized to furnish or donate wines for winetastings shall keep a record of all wine so furnished or donated, as follows:

(1) Records of wine actually used and consumed at winetastings conducted by winegrowers, California winegrower's agents, or wine blenders shall include the date of the tasting, the name and address of the licensee, the address of the tasting if not conducted on the licensee's premises, and the brand, class, and type, and the quantity of each wine used.

(2) Records of wine furnished by licensees to private organizations, foreign consulates, or commercial attachés for winetastings shall include the date of the tasting, the name and address of the licensee, the name of the sponsoring organization, consulate or commercial attaché, the address of the tasting, and the brand, class and type, and quantity of each wine furnished.

(3) Such records of samples of wine used for winetasting purposes shall be retained for a period of three years.

(g) Exceptions.

(1) Nothing in this rule shall prevent the holder of any license which permits the sale and consumption of wine on the premises from holding a winetasting of wines legally acquired, provided the on-sale licensee shall charge for the wines presented in accordance with law.

(2) An organization holding a temporary wine license may accept donations, charge admissions, and otherwise make charges for wine to be served at a winetasting, and may advertise such events, which may be open to the public. A winegrower or California winegrower's agent may give wine to such a temporary licensee only if such temporary licensee is a nonprofit corporation or association exempt from the payment of income taxes under the provisions of the Internal Revenue Code of 1954 of the United States. Any other holder of a temporary wine license shall purchase all wines.

(3) Wine blenders, licensed on or before February 2, 1968, winegrowers and California winegrower's agents may assist the holder of a temporary wine license in conducting a winetasting. A beer and wine wholesaler that also holds an off-sale beer and wine retail license and only sells wine or the holder of a limited off-sale retail wine license may assist a nonprofit organization only as permitted by Business and Professions Code Section 24045.18.

(4) No student organization, college fraternity or sorority shall sponsor a winetasting.

NOTE

Authority cited: Sections 23355, 23356.1, 23356.9, 23373, 23386, 23390.5 and 25750, Business and Professions Code and Section 22, Article XX, California Constitution. Reference: Sections 23355, 23356.1, 23356.9, 23373, 23386, 23390.5 and 24045.18, Business and Professions Code.

HISTORY

1. New section filed 2-23-73; designated effective 3-26-73 (Register 73, No. 8).

2. Amendment filed 5-7-74; designated effective 6-10-74 (Register 74, No. 19).

3. Amendment of subsection (h)(2) filed 6-18-80; effective thirtieth day thereafter (Register 80, No. 25).

4. Amendment of subsections (a)(1) and (b), repealer of subsection (f) and subsection redesignation filed 1-18-94; operative 2-17-94 (Register 94, No. 3).

5. Change without regulatory effect amending first paragraph and subsection (a)(1), repealing subsections (a)(1)(A)-(C), amending subsections (b)(5), (e) and (g)(2), adopting new subsection (g)(3), renumbering subsection and amending Note filed 4-17-2012 pursuant to section 100, title 1, California Code of Regulations (Register 2012, No. 16).

§53.5. Samples Used in Beer Tastings.

Note • History

A beer tasting is a presentation of samples of one or more beers, representing one or more beer manufacturers or industry labels, to a group of consumers for the purpose of acquainting the tasters with the characteristics of the beer or beers tasted.

Licensees may engage in beer tasting activities only as set forth in this rule. In addition to furnishing beers as provided herein, licensees may supply small amounts of bread, crackers, pretzels, cheeses or nuts to clear the taste buds of the participants between successive samples of beer during a beer tasting.

(a) Beer tastings Sponsored by Beer Manufacturer Licensees. Beer tastings may be conducted without charge or for a fee for the public on a premises licensed with a beer manufacturer's license or duplicate beer manufacturer's license, provided, however, that no beer tasting shall be held on that portion of a beer manufacturer's or duplicate beer manufacturer's premises which is licensed with a retail license. Beer may be offered for tastings by such licensees as follows:

(1) Only beer which was produced or bottled by the beer manufacturer or was produced and bottled for such beer manufacturer may be offered for tastings by such beer manufacturer.

(b) Beer tastings Sponsored by Private Organizations. Licensed beer manufacturers or out-of-state beer manufacturer's certificate holders may furnish beer which is produced or bottled by such beer manufacturer or out-of-state beer manufacturer's certificate holder; or is produced and bottled for such beer manufacturer or out-of-state beer manufacturer's certificate holder; may conduct beer tastings which are sponsored by a bona fide charitable, fraternal, political, religious, trade, service, or similar private organization, where all of the following conditions shall prevail:

(1) The sponsor shall be a nonprofit organization.

(2) Attendance shall be limited to persons affiliated with the sponsor. “Persons affiliated with the sponsor” means directors, officers, members, employees and volunteers of the sponsoring organization including up to three invited guests of each such person.

(3) No charge or donation shall be made either for the beer served or for admission to the premises.

(4) There shall be no advertising or public announcements of the event as a beer tasting, and the general public shall not be invited.

(5) No beer shall be sold, and no sales or orders solicited, nor shall order blanks be placed in or about the premises. Brochures describing beers and their prices may be distributed, provided that they are not suitable for use as order blanks. No beer may be given as a gift, nor as a prize to be removed from the premises.

(6) Beer tastings sponsored by private organizations may be held on unlicensed premises. They may also be held on premises regularly licensed with an on-sale general, on-sale beer and wine or on-sale beer license, provided that the tastings are held in a banquet room or other portion of the premises which is completely separated from that portion of the premises where the sale of alcoholic beverages is being made; that no consumption of other alcoholic beverages is permitted; and that the retail licensee has surrendered the privileges of his license for the period the beer tasting is being conducted on that portion of the retail premises in which the beer tasting will take place, on a form provided by the department. All beer which is not consumed at the tasting shall be retained by the licensee or certificate holder conducting the tasting.

(c) Club Licensees. No licensee shall furnish or donate beers for tastings to be held on a premises licensed by the department with any type of club license.

(d) Retail Licensees. No beer tasting shall be given for the benefit of any retail licensee, and no retail licensee shall participate in a beer tasting directly or indirectly, except as provided in this rule.

(e) Records. Licensees who are authorized to furnish or donate beers for beer tastings shall keep a record of all beer so furnished or donated, as follows:

(1) Records of beer actually used and consumed at beer tastings conducted by licensed beer manufacturer or out-of-state beer manufacturer's certificate holder shall include the date of the tasting, the name and address of the licensee or certificate holder, the address of the tasting if not conducted on the licensee's premises, and the brand, class, and type, and the quantity of each beer used.

(2) Records of beer furnished by licensees to private organizations for beer tastings shall include the date of the tasting, the name and address of the licensee, the name of the sponsoring organization, the address of the tasting, and the brand, class and type, and quantity of each beer furnished.

(3) Such records of samples of beer used for beer tasting purposes shall be retained for a period of three years.

(f) Exceptions.

(1) Nothing in this rule shall prevent the holder of any license which permits the sale and consumption of beer on the premises from holding a beer tasting of beers legally acquired, provided the on-sale licensee shall charge for the beers presented in accordance with law.

(2) An organization holding a temporary beer license may accept donations, charge admissions, and otherwise make charges for beer to be served at a beer tasting, and may advertise such events, which may be open to the public. A licensed beer manufacturer or out-of-state beer manufacturer's certificate holder may give beer to such a temporary licensee only if such temporary licensee is a nonprofit corporation or association exempt from the payment of income taxes under the provisions of the Internal Revenue Code of 1954 of the United States. Any other holder of a temporary license shall purchase all beers. Licensed beer manufacturers or out-of-state beer manufacturer's certificate holders may assist the holder of a temporary beer license in conducting a beer tasting.

(3) No student organization, college fraternity or sorority shall sponsor a beer tasting.

NOTE

Authority cited: Section 22, Article XX, California Constitution; and Sections 23357.3 and 25750, Business and Professions Code. Reference: Sections 23357.3 and 25750, Business and Professions Code.

HISTORY

1. New section filed 2-8-94; operative 3-10-94 (Register 94, No. 6).

Article 10. Sales for Export

§54. Export Sales.

Note • History

Manufacturers, winegrowers, rectifiers, wholesalers, manufacturer's agents, and importers may sell alcoholic beverages specified in their licenses to unlicensed persons (including aircraft, fishing vessels and commercial passenger or freight vessels) who take delivery thereof within this State for delivery or use without this State.

Where the sale is made without the payment of California excise tax, export or actual removal from this State must be accomplished within 90 days from the date of the delivery within this State, and may only be accomplished by one of the following methods:

(a) If in bond, then under the continuous supervision of the United States Customs or United States Internal Revenue authorities until removal from this State has been effected.

(b) In private vehicles owned or operated by out-of-state purchasers who hold an export identification permit issued by the State Board of Equalization pursuant to Rule 2563, Subchapter 6, Chapter 2, Title 18, California Administrative Code.

Sales of alcoholic beverages to persons operating commercial fishing vessels, private freight and/or passenger-carrying vessels, or to commercial aircraft, for use as ships or aircraft stores outside this State, or upon the high seas, may be made only pursuant to a written order for the purchase of the alcoholic beverages specified in the order. Such purchase order must be signed by the captain of a commercial fishing boat or private freight and/or passenger-carrying vessel or the pilot of the aircraft, or by a duly authorized agent of the owner of the aircraft authorized in writing to sign such purchase orders. All such purchase orders shall contain an acknowledgment that the alcoholic beverages are for use only as ships or aircraft stores outside this State or upon the high seas.

All alcoholic beverages sold and delivered, California tax free within this State, which are intended for ultimate delivery and use outside this State within 90 days, may, until exported or removed from this State, be stored only in bonded or licensed public warehouses and in private warehouses. Such warehouses shall keep and maintain for a period of three years records showing any change in possession of such alcoholic beverages, and shall upon demand make such records available to the Department of Alcoholic Beverage Control, the State Board of Equalization, and to the licensed California seller of such alcoholic beverages.

NOTE

Authority cited: Sections 23107, 23108, 23387 and 25750, Business and Professions Code; Section 22 of Article XX, California Constitution.

HISTORY

1. New section filed 4-7-58; designated effective 5-15-58 (Register 58, No. 6). For history of former Section 54, see Register 55, No. 4.

2. Amendment filed 10-25-63; effective thirtieth day thereafter (Register 63, No. 19).

3. Amendment filed 11-1-63, as an emergency; designated effective 11-24-63. Certificate of Compliance included (Register 63, No. 19).

4. Amendment filed 8-6-70; designated effective 9-8-70 (Register 70, No. 32).

Article 11. Applications and Licenses

§55. On-Sale General License for Seasonal Business. [Repealed]

Note • History

NOTE

Authority cited: Sections 23820 and 25750, Business and Professions Code; Section 22, Article XX, California Constitution. Reference: Sections 23038, 23320, 23396, 23399, 23826.8, 24040, 24042, 24044, 24045, 24048, 24048.1, 24048.2, 24070, 24070.1, 24071, 24072, 24073-24076 and 24082, Business and Professions Code.

HISTORY

1. New subsection (e) filed 1-12-79 as an emergency; effective upon filing (Register 79, No. 2). For prior history, see Registers 63, No. 19; 73, No. 29; 73, No. 32; 77, No. 25; and 78, No. 14.

2. Certificate of Compliance filed 4-4-79 (Register 79, No. 14).

3. Repealer filed 11-6-96; operative 12-6-96 (Register 96, No. 45).

§55.1. Applicant/Licensee Verification of Eligibility; Limitations on Alcoholic Beverage Licenses for Aliens.

Note • History

(a) All eligibility requirements contained herein shall be applied without regard to the race, creed, color, gender, religion, disability, or national origin of the individual applying for the public benefit. This section shall apply to any natural person renewing or applying for the entire direct interest in a license issued by the Department of Alcoholic Beverage Control.

(b) Pursuant to Section 411 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, (Pub. L. No. 104-193 (PRWORA)), (8 U.S.C. § 1621), and notwithstanding any other provision of this division, aliens who are not qualified aliens, nonimmigrant aliens under the Immigration and Nationality Act (INA) (8 U.S.C. § 1101 et seq.), or aliens paroled into the United States under Section 212(d)(5) of the INA (8 U.S.C. § 1182(d)(5)), for less than one year, are not eligible to receive any license issued pursuant to the ABC Act, BPC § 23000 et seq.

(c) A qualified alien is an alien who, at the time he or she applies for, receives, or attempts to receive a public benefit, is, under Section 431(b) of the PRWORA (8 U.S.C. § 1641(b)), any of the following:

(1) An alien lawfully admitted for permanent residence under the INA (8 U.S.C. § 1101 et seq.).

(2) An alien who is granted asylum under Section 208 if the INA (8 U.S.C. § 1158).

(3) A refugee who is admitted to the United States under Section 207 of the INA (8 U.S.C. § 1157).

(4) An alien who is paroled into the United States under Section 212(d)(5) of the INA (8 U.S.C. § 1182(d)(5)) for a period of at least one year.

(5) An alien whose deportation is being withheld under Section 243(h) of the INA (8 U.S.C. § 1253(h)) (as in effect immediately before the effective date of Section 307 of division C of Public Law 104-208) or Section 241(b)(3) of such Act (8 U.S.C. § 1251(b)(3)) (as amended by Section 305(a) of division C of Public Law 104-208).

(6) An alien who is granted conditional entry pursuant to Section 203(a)(7) of the INA as in effect prior to April 1, 1980. (8 U.S.C. § 1153(a)(7)) See editorial note under 8 U.S.C. § 1101, “Effective Date of 1980 Amendment.”)

(7) An alien who is a Cuban or Haitian entrant (as defined in Section 501(e) of the Refugee Education Assistance Act of 1980 (8 U.S.C. § 1522 note)).

(8) An alien who, under Section 431(c)(1) of the PRWORA (8 U.S.C. § 1641(c)(1)), meets all of the conditions of subparagraphs (A), (B), (C), and (D) below:

(A) The alien has been battered or subjected to extreme cruelty in the United States by a spouse or a parent, or by a member of the spouse's or parent's family residing in the same household as the alien, and the spouse or parent of the alien consented to, or acquiesced in, such battery or cruelty. For purposes of this subsection, the term “battered or subjected to extreme cruelty” includes, but is not limited to being the victim of any act or threatened act of violence including any forceful detection, which results or threatens to result in physical or mental injury. Rape, molestation, incest (if the victim is a minor), or forced prostitution shall be considered as acts of violence.

(B) There is a substantial connection between such battery or cruelty and the need for the benefits to be provided in the opinion of the Director of the Department of Alcoholic Beverage Control. For purposes of this subsection, the following circumstances demonstrate a substantial connection between the battery or cruelty and the need for the benefits to be provided:

1. The benefits are needed to enable the alien to become self-sufficient following separation from the abuser.

2. The benefits are needed to enable the alien to escape the abuser and/or the community in which the abuser lives, or to ensure the safety of the alien from the abuser.

3. The benefits are needed due to a loss of financial support resulting from the alien's separation from the abuser.

4. The benefits are needed because the battery or cruelty, separation from the abuser, or work absences or lower job performance resulting from the battery or extreme cruelty or from legal proceedings relating thereto (including resulting child support, child custody, and divorce actions) cause the alien to lose his or her job or to earn less or to require the alien to leave his or her job for safety reasons.

5. The benefits are needed because the alien requires medical attention or mental health counseling, or has become disabled, as a result of the battery or extreme cruelty.

6. The benefits are needed because the loss of a dwelling or source of income or fear of the abuser following separation from the abuser jeopardizes the alien's ability to care for his or her children (e.g., inability to house, feed, or clothe children or to put children into a day care for fear of being found by the abuser).

7. The benefits are needed to alleviate nutritional risk or need resulting from the abuse or following separation from the abuser.

8. The benefits are needed to provide medical care during a pregnancy resulting from the abuser's sexual assault or abuse of, or relationship with, the alien and/or to care for any resulting children.

9. Where medical coverage and/or health care services are needed to replace medical coverage or health care services the alien had when living with the abuser.

1. status as a spouse or child of a United States citizen pursuant to clause (ii), (iii), or (iv) of Section 204(a)(1)(A) of the INA (8 U.S.C. § 1154(a)(1)(A)(ii), (iii) or (iv)),

2. classification pursuant to clause (ii) or (iii) of Section 204(a)(1)(B) of the INA (8 U.S.C. § 1154(a)(1)(B)(ii) or (iii)),

3. suspension of deportation and adjustment of status pursuant to section 244(a)(3) of the INA (8 U.S.C. sec. 1254) as in effect prior to April 1, 1997 [Pub.L. 104-208, sec. 501 (effective September 30, 1996, pursuant to sec. 591); Pub.L. 104-208, sec. 304 (effective April 1, 1997, pursuant to sec. 309); Pub.L. 105-33, sec. 5581 (effective pursuant to sec. 5582)] (incorrectly codified as “cancellation of removal under section 240A of such Act [8 USCS sec. 1229b] (as in effect prior to April 1, 1997),

4. status as a spouse or child of a United States citizen pursuant to clause (i) of Section 204(a)(1)(A) of the INA (8 U.S.C. § 1154(a)(1)(A)) or classification pursuant to clause (i) of Section 204(a)(1)(B) of the INA (8 U.S.C. § 1154(a)(1)(B)), or

5. cancellation of removal pursuant to section 240A(b)(2) of the INA (8 U.S.C. § 1229b(b)(2)).

(D) For the period for which benefits are sought, the individual responsible for the battery or cruelty does not reside in the same household or family eligibility unit as the individual subjected to the battery or cruelty.

(9) An alien who, under Section 431(c)(2) of the PRWORA (8 U.S.C. § 1641(c)(2)), meets all of the conditions of subparagraphs (A), (B), (C), (D) and (E) below:

(A) The alien has a child who has been battered or subjected to extreme cruelty in the United States by a spouse or a parent of the alien (without the active participation of the alien in the battery or cruelty), or by a member of the spouse's or parent's family residing in the same household as the alien, and the spouse or parent consented or acquiesced to such battery or cruelty. For purposes of this subsection, the term “battered or subjected to extreme cruelty” includes, but is not limited to being the victim of any act or threatened act of violence including any forceful detention, which results or threatens to result in physical or mental injury. Rape, molestation, incest (if the victim is a minor), or forced prostitution shall be considered as acts of violence.

(B) The alien did not actively participate in such battery or cruelty.

(C) There is a substantial connection between such battery or cruelty and the need for the benefits to be provided in the opinion of the Director of the Department of Alcoholic Beverage Control. For purposes of this subsection, the following circumstances demonstrate a substantial connection between the battery or cruelty and the need for the benefits to be provided:

1. The benefits are needed to enable the alien's child to become self-sufficient following separation from the abuser.

2. The benefits are needed to enable the alien's child to escape the abuser and/or the community in which the abuser lives, or to ensure the safety of the alien's child from the abuser.

3. The benefits are needed due to a loss of financial support resulting from the alien's child's separation from the abuser.

4. The benefits are needed because the battery or cruelty, separation from the abuser, or work absences or lower job performance resulting from the battery or extreme cruelty or from legal proceedings relating thereto (including resulting child support, child custody, and divorce actions) cause the alien's child to lose his or her job or to earn less or to require the alien's child to leave his or her job for safety reasons.

5. The benefits are needed because the alien's child requires medical attention or mental health counseling, or has become disabled, as a result of the battery or extreme cruelty.

6. The benefits are needed because the loss of a dwelling or source of income or fear of the abuser following separation from the abuser jeopardizes the alien's child's ability to care for his or her children (e.g., inability to house, feed, or clothe children or to put children into day care for fear of being found by the abuser).

7. The benefits are needed to alleviate nutritional risk or need resulting from the abuse or following separation from the abuser.

8. The benefits are needed to provide medical care during a pregnancy resulting from the abuser's sexual assault or abuse of, or relationship with, the alien's child and/or to care for any resulting children.

9. Where medical coverage and/or health care services are needed to replace medical coverage or health care services the alien's child had when living with the abuser.

(D) The alien meets the requirements of subsection (c)(8)(C) above.

(E) For the period for which benefits are sought, the individual responsible for the battery or cruelty does not reside in the same household or family eligibility unit as the individual subjected to the battery or cruelty.

(10) An alien child who meets all of the conditions of subparagraphs (A), (B) and (C) below:

(A) The alien child resides in the same household as a parent who has been battered or subjected to extreme cruelty in the United States by that parent's spouse or by a member of the spouse's family residing in the same household as the parent and the spouse consented or acquiesced to such battery or cruelty. For purposes of this subsection, the term “battered or subjected to extreme cruelty” includes, but is not limited to being the victim of any act or threatened act of violence including any forceful detection, which results or threatens to result in physical or mental injury. Rape, molestation, incest (if the victim is a minor), or forced prostitution shall be considered as acts of violence.

1. The benefits are needed to enable the alien child's parent to become self-sufficient following separation from the abuser.

2. The benefits are needed to enable the alien child's parent to escape the abuser and/or the community in which the abuser lives, or to ensure the safety of the alien child's parent from the abuser.

3. The benefits are needed due to a loss of financial support resulting from the alien child's parent's separation from the abuser.

4. The benefits are needed because the battery or cruelty, separation from the abuser, or work absences or lower job performance resulting from the battery or extreme cruelty or from legal proceedings relating thereto (including resulting child support, child custody, and divorce actions) cause the alien child's parent to lose his or her job or to earn less or to require the alien child's parent to leave his or her job for safety reasons.

5. The benefits are needed because the alien child's parent requires medical attention or mental health counseling, or has become disabled, as a result of the battery or extreme cruelty.

6. The benefits are needed because the loss of a dwelling or source of income or fear of the abuser following separation from the abuser jeopardizes the alien child's parent's ability to care for his or her children (e.g., inability to house, feed, or clothe children or to put children into day care for fear of being found by the abuser).

7. The benefits are needed to alleviate nutritional risk or need resulting from the abuse or following separation from the abuser.

8. The benefits are needed to provide medical care during a pregnancy resulting from the abuser's sexual assault or abuse of, or relationship with, the alien child's parent and/or to care for any resulting children.

9. Where medical coverage and/or health care services are needed to replace medical coverage or health care services the alien child's parent had when living with the abuser.

(d) For purposes of this section, “nonimmigrant” is defined the same as in Section 101(a)(15) of the INA (8 U.S.C. § 1101(a)(15)).

(e) For purposes of establishing eligibility for a license issued by the Department of Alcoholic Beverage Control pursuant to the ABC Act (B.P.C. § 2300 et seq.), all of the following must be met:

(1) The applicant must declare himself or herself to be a citizen of the United States or a qualified alien under subsection (c), a nonimmigrant alien under subsection (d), or an alien paroled into the United States for less than one year under Section 212(d)(5) of the INA (8 U.S.C. § 1182(d)(5)). The alien shall declare that status through use of the “Statement of Citizenship, Alienage, and Immigration Status for State Public Benefits,” Form ABC-69.

(2) The applicant must present documents of a type acceptable to the Immigration and Naturalization Service (INS) which serve as reasonable evidence of the applicant's declared status. A fee receipt from the INS for replacement of a lost, stolen, or unreadable INS document is reasonable evidence of the alien's declared status.

(3) The applicant must complete and sign Form ABC-69.

(4) Where the documents presented do not on their face appear to be genuine or to relate to the individual presenting them, the government entity that originally issued the documents shall be contacted for verification. With regard to naturalized citizens and derivative citizens presenting certificates of citizenship and aliens, the INS is the appropriate government entity to contact for verification. The Department shall request verification from the INS by filing INS Form G-845 with copies of the pertinent documents provided by the applicant with the local INS office. If the applicant has lost his or her original documents or presents expired documents or is unable to present any documentation evidencing his or her immigration status, the applicant shall be referred to the local INS office to obtain documentation.

(5) The type of documentation referred to the INS for verification pursuant to INS Form G-845 shall include the following:

(A) The document presented indicates immigration status but does not include an alien registration or alien admission number.

(B) The document is suspected to be counterfeit or to have been altered.

(C) The document includes an alien registration number in the A60 000 000 (not yet issued) or A80 000 000 (illegal border crossing) series.

(D) The document is one of the following: an INS Form I-181b notification letter issued in connection with an INS Form I-181 Memorandum of Creation of Record of Permanent Residence, an Arrival-Departure Record (INS Form I-94) or a foreign passport stamped “PROCESSED FOR I-551, TEMPORARY EVIDENCE OF LAWFUL PERMANENT RESIDENCE” that INS issued more than one year before the date of application for the license issued by the Department of Alcoholic Beverage Control pursuant to the ABC Act.

(6) If the INS advises that the applicant has citizenship status or immigration status which makes him or her a qualified alien, a non-immigrant or alien paroled for less than one year under section 212(d)(5) of the INA, the INS verification shall be accepted. If the INS advises that it cannot verify that the applicant has citizenship status or an immigration status that makes him or her a qualified alien, a non-immigrant or alien paroled for less than one year under section 212(d)(5) of the INA, benefits shall be denied and the applicant notified pursuant to the ABC Act regular procedures of his or her rights to appeal the denial of benefits.

(f) Pursuant to Section 434 of the PRWORA (8 U.S.C. § 1644), where the Department of Alcoholic Beverage Control reasonably believes that an alien is unlawfully in the State based on the failure of the alien to provide reasonable evidence of the alien's declared status, after an opportunity to do so, said alien shall be reported to the Immigration and Naturalization Service.

(g) Provided that the alien has completed and signed Form ABC-69, revised 2/98, under penalty of perjury, eligibility for renewal of a license shall not be delayed, denied, reduced or terminated while the status of the alien is verified.

(h) Pursuant to Section 432(d) of the PRWORA (8 U.S.C. § 1642(d)), a nonprofit charitable organization that provides federal, state or local public benefits shall not be required to determine, verify, or otherwise require proof of eligibility of any applicant or beneficiary with respect to his or her immigration status or alienage.

(i) Any applicant who is determined to be ineligible pursuant to subsection (b) and (e) or who was made eligible for an alcoholic beverage license whose license is terminated, suspended, or reduced pursuant to subsections (b) and (e), is entitled to a hearing, pursuant to Business and Professions Code section 24300.

(j) Failure to comply with this section shall be cause for revocation of the license held contrary to these provisions.

NOTE

Authority cited: Section 22, California Constitution, Article XX; and Sections 23950, 23952, 23958 and 25750, Business and Professions Code. Reference: 8 U.S.C. Sections 1621, 1641 and 1642.

HISTORY

1. New section filed 3-2-98 as an emergency; operative 3-2-98 (Register 98, No. 10). A Certificate of Compliance must be transmitted to OAL by 6-30-98 or emergency language will be repealed by operation of law on the following day.

2. Repealed by operation of Government Code section 11346.1(g) (Register 99, No. 4).

3. New section filed 1-19-99; operative 2-18-99 (Register 99, No. 4).

§55.5. On-Sale Licenses for Boats.

Note • History

On-sale beer and wine licenses and on-sale general licenses may be issued to the owner, lessee or operator of a boat carrying passengers for hire, and alcoholic beverages may be served on such vessels when operated or navigated by a person duly licensed by the United States Coast Guard; or on-sale beer and wine licenses and on-sale general licenses may be issued to qualified persons who operate as concessionaires on such publicly or privately owned, leased or operated boats carrying passengers for hire.

(a) Applicants must designate a primary home port for the boat, such primary home port address being the address as shown on the application for the license. The primary home port means the principal place for embarkation or debarkation of passengers, or the loading or unloading for supplies, and is normally used for the overnight berthing of the boat.

(b) Posting of notice of intention and publication as required by Sections 23985 and 23986 of the Business and Professions Code apply to on-sale beer and wine and on-sale general licenses for boats. Notice of intention to engage in the sale of alcoholic beverages shall be posted in a conspicuous place at the entrance of the boat dock or landing at the primary home port, and must also be posted in a conspicuous place on the boat unless application is made pursuant to Section 24044 of said Code, in which case posting of the boat is unnecessary.

(c) On-sale beer and wine and on-sale general licenses for boats shall, at the request of the licensee or applicant, be issued pursuant to the provisions of Section 23800, subject to the following conditions:

(1) There shall be no sales of alcoholic beverages while the boat is at any dock, except sales to passengers one-half hour prior to departing on scheduled trips or charters, and one-half hour after returning from designated commercial docks pursuant to (A) or (B).

(A) In addition to its primary home port dock, a licensee may designate up to ten (10) commercial docks each year at which it intends to embark or debark passengers.

(B) A licensee may designate any public commercial dock within the state. Such designation shall be in writing.

(C) For purposes of these regulations, the term “commercial dock” shall mean a dock generally used by vessels carrying passengers for hire, for the embarkation or debarkation of passengers, or the loading or unloading of supplies.

NOTE

Authority cited: Section 25750, Business and Professions Code. Reference: Section 23397, Business and Professions Code.

HISTORY

1. New section filed 6-18-70; designated effective 7-20-70 (Register 70, No. 25).

2. Amendment of introductory paragraph filed 10-1-70 as an emergency; effective upon filing (Register 70, No. 40).

3. Certificate of Compliance--section 11422.1, Gov. Code, filed 1-21-71 (Register 71, No. 4).

4. Amendment of introductory paragraph filed 1-21-71; designated effective 2-22-71 (Register 71, No. 4).

5. Amendment filed 8-23-83; effective upon filing pursuant to Government Code section 11346.2(d) (Register 83, No. 35).

6. Amendment of subsection (c)(1) and new subsections (c)(1)(A)-(C) filed 1-27-94; operative 2-28-94 (Register 94, No. 4).

§56. On-Sale Beer License for Seasonal Business. [Repealed]

Note • History

NOTE

Authority cited: Sections 23322, 23357, 23378, 23388, 23389, 23396 and 25750, Business and Professions Code; Section 22, Article XX, California Constitution. Reference: Division 9 (Chapters 1-17), Business and Professions Code.

HISTORY

1. New subsection (e) filed 2-2-77; designated effective 3-7-77 (Register 77, No. 6). For prior history, see Register 58, No. 6.

2. Repealer filed 11-6-96; operative 12-6-96 (Register 96, No. 45).

§57. Fingerprinting.

Note • History

Every person who has management responsibilities or who has an ownership or financial interest in a licensed business, or a business to be licensed, shall at the request of the department be fingerprinted if they have not heretofore been so fingerprinted.

This requirement shall apply to all licensees and their spouses, applicants for licenses and their spouses, and in the case of corporations, to any person or persons and their spouses who own or control 10% or more of the corporate stock, the managing officers of the corporation, the chairman of the Board of Directors and a majority of the Board of Directors.

The provisions of this rule shall not apply to any bank or other financial institution whose financial interest constitutes a loan rather than an ownership interest.

NOTE

Authority cited: Sections 23950, 23958 and 25750, Business and Professions Code; Section 22, Article XX, California Constitution. Reference: Division 9 (Chapters 1-17), Business and Professions Code.

HISTORY

1. Amendment filed 2-2-77; designated effective 3-7-77 (Register 77, No. 6). For prior history, see Register 58, No. 6.

§57.5. Manager Defined.

Note • History

A person to whom a licensee has delegated discretionary powers to organize, direct, carry on or control the operations of a licensed business shall be deemed the manager thereof for purposes of applying Section 23788.5 of the Alcoholic Beverage Control Act. Authority to control one or more of the following functions shall be prima facie evidence that such a person is the manager of the licensed business:

(a) To hire or separate employees.

(b) To contract for the purchase of furniture, equipment or supplies other than the occasional replenishment of stock.

(d) To make, or participate in making, policy decisions relative to operations of the licensed business.

NOTE

Authority cited: Sections 23001, 23788.5, 24200, and 25750, Business and Professions Code; Section 22, Article XX, California Constitution.

HISTORY

1. New section filed 10-25-63; effective thirtieth day thereafter (Register 63, No. 19).

2. Editorial correction to NOTE filed 6-17-77; effective thirtieth day thereafter (Register 77, No. 25).

§57.6. Qualifications of Manager.

Note • History

(a) Any on-sale licensee who elects to operate his licensed premises through the employment of a manager may request the department to make a determination of the proposed manager's qualifications. Upon such request, the on-sale licensee shall produce the proposed manager at a District Office of the department for fingerprinting and investigation.

(b) Any on-sale licensee who employs a person in the capacity of manager shall notify the department in writing within fifteen (15) days of the effective date of this rule or within fifteen days of such employment, whichever occurs first. Within such 15-day period the on-sale licensee shall cause his manager to appear at a District Office of the department to have the manager's fingerprints taken, and to file an application for qualification as manager and furnish information necessary to establish whether the manager has the qualifications required of a holder of an on-sale license.

(c) When investigation indicates that any person employed as manager of premises operating under an on-sale license does not possess the qualifications required of the holder of an on-sale license, the department shall serve on the manager Notice of Disqualification of Manager and shall furnish a copy of said Notice to the holder of the on-sale license at the premises.

(d) Upon completion of its investigation pursuant to paragraph (a) or (b) of this rule, the department shall serve either Notice of Qualification of Manager or Notice of Disqualification of Manager on the manager or proposed manager. A copy of such Notice shall be furnished to the on-sale licensee who employs or proposes to employ the manager. Within fifteen (15) days after service of Notice of Disqualification of Manager, the manager or proposed manager upon whom served may petition the department for hearing thereon. The Notice of Disqualification of Manager shall advise the manager or proposed manager of his right to a hearing as provided in Chapter 5 (commencing with Section 11500) of Part 1, Division 3 of Title 2 of the Government Code, and upon petition for hearing the reasons set forth in the Notice of Disqualification of Manager shall become the “statement of issues” as that term is used in Section 11504 of the Government Code, and all provisions of said Section 11504 applicable to “statement of issues” shall be applicable to said Notice. In addition, all other provisions of Chapter 5 (commencing with Section 11500) of Part 1, Division 3 of Title 2 of the Government Code, applicable to “statement of issues” and proceedings initiated thereby, shall be applicable to the Notice of Disqualification of Manager and proceedings initiated by the filing of petition for hearing thereon.

NOTE

Authority cited: Section 25750, Business and Professions Code and Section 22 of Article XX, California Constitution. Reference: Sections 23001 and 23788.5, Business and Professions Code.

HISTORY

1. New section filed 4-14-69; designated effective 5-15-69 (Register 69, No. 16).

§57.7. Qualifications of Bona Fide Public Eating Place Lessee.

Note • History

(a) Any bona fide public eating place licensee who elects to sublet the sale and service of meals, as provided for in Section 23787, shall within fifteen (15) days of such subletting notify the department in writing and request the department to make a determination of the lessee's, or proposed lessee's, qualifications. Within thirty (30) days of such subletting, the licensee shall furnish the department with a copy of the agreement between the licensee and lessee, and shall produce the lessee at a district office of the department to have the lessee's fingerprints taken and to file an application for qualification as lessee. The lessee shall furnish information to the department necessary to establish whether he has the qualifications required of a holder of an alcoholic beverage license.

(b) Upon completion of its investigation pursuant to paragraph (a) of this rule, the department shall serve either Notice of Qualification of Lessee or Notice of Disqualification of Lessee on the lessee, and a copy of such notice shall be mailed to the licensee. Within fifteen (15) days after service of Notice of Disqualification of Lessee, the lessee may petition the department for hearing thereon. The Notice of Disqualification of Lessee shall advise the lessee of his right to a hearing as provided in Chapter 5 (commencing with Section 11500) of Part 1, Division 3 of Title 2 of the Government Code, and upon petition for hearing the reasons set forth in the Notice of Disqualification of Lessee shall become the “Statement of Issues” as that term is used in Section 11504 of the Government Code, and all provisions of said Section 11504 applicable to “Statement of Issues” shall be applicable to said notice. In addition, all other provisions of Chapter 5 (commencing with Section 11500) of Part 1, Division 3 of Title 2 of the Government Code, applicable to “Statement of Issues” and proceedings initiated thereby, shall be applicable to the Notice of Disqualification of Lessee and proceedings initiated by the filing of petition for hearing thereon.

(c) When the department determines that a lessee is disqualified and that determination becomes final as provided for by law, the department shall notify the licensee in writing that he has 60 days in which to rescind or otherwise terminate the agreement and resume, or sublet to a qualified person, the sales and service of meals as required by Section 23038. The department may extend the above period for good cause. Failure to rescind the agreement within the prescribed period may be cause for disciplinary action by the department for the purpose of suspending or revoking the license. In any such disciplinary action, any findings of fact previously adopted by the department in connection with the lessee's qualifications shall be presumptive proof as to the issue of the lessee's qualifications.

(d) A licensee who has sublet the sale and service of meals as provided for in Section 23787 remains responsible for keeping the premises in compliance with Section 23038 and may not exercise the privileges of the license unless the premises are equipped with suitable kitchen facilities, maintained in a sanitary condition, and regularly and in a bona fide manner used and kept open for the serving of meals to guests for compensation.

(e) A licensee who has sublet the sale and service of the meals required by Section 23038 shall not also employ the lessee or his employees or agents to manage or direct the alcoholic beverage licensed business.

(f) Each license is issued to a specific person, and the privileges of such license are to be exercised by said person. A licensee who has sublet the sale and service of the meals required by Section 23038 shall not permit the lessee to participate or share in revenues resulting from the exercise of privileges granted by the license.

NOTE

Authority cited: Sections 23038, 23300, 23787 and 24040, Business and Professions Code.

HISTORY

1. New section filed 7-12-72; designated effective 8-14-72 (Register 72, No. 29).

§57.8. Qualifications of Convention Center, Exhibit Hall or Auditorium Bona Fide Public Eating Place Lessees.

Note • History

(a) A bona fide public eating place licensee operating at a premises licensed pursuant to Section 23824 may from time to time at the request of the State of California, incorporated city, county, city and county or public corporation of the State of California which owns or leases the premises, sublease the sale and service of meals to a lessee or lessees. Within thirty (30) days of such subletting, the licensee shall furnish the department with a copy of the agreement between the licensee and lessee. The lessees or proposed lessees shall be persons who are holders of alcoholic beverage licenses or persons who shall be qualified as provided for in Rule 57.7 of these regulations.

(b) The State of California, incorporated city, county, or city and county or public corporation of the State of California which owns or leases the premises and the licensee may maintain a list of proposed lessees for the sale and service of meals who hold alcoholic beverage licenses or who have been qualified pursuant to Rule 57.7 to sell and serve meals, and the licensee shall furnish the department with such list and any additions or deletions from such list. The department may disqualify any person on the list as provided in Rule 57.7 (b) and (c) of these regulations. The licensee shall notify the department at least 10 days prior to the date on which any lessee on the list, or added to the list, is to first sell and serve meals.

(c) A licensee who has sublet the sale and service of meals as provided for in Section 23787 remains responsible for keeping the premises in compliance with Section 23038.1 and may not exercise the privileges of the license unless the premises are equipped with suitable kitchen facilities, maintained in a sanitary condition, and regularly and in a bona fide manner used and kept open for the serving of meals to groups of guests for compensation.

(d) A licensee who has sublet the sale and service of the meals required by Section 23038.1 shall not also employ the lessee or his employees or agents to manage or direct the alcoholic beverage licensed business.

(e) Each license is issued to a specific person, and the privileges of such license are to be exercised by said person. A licensee who has sublet the sale and service of the meals required by Section 23038.1 shall not permit the lessee to participate or share in revenues resulting from the exercise of privileges granted by the license.

NOTE

Authority cited: Section 25750, Business and Professions Code and Section 22, Article XX, California Constitution. Reference: Sections 23038, 23038.1, 23300, 23787, 24040 and 25750, Business and Professions Code.

HISTORY

1. New section filed as an emergency 10-1-74; designated effective 10-4-74 (Register 74, No. 40).

2. Certificate of Compliance filed 1-22-75 (Register 75, No. 4).

§58. Applications by Married Persons.

Note • History

(a) Where a business is the community property of husband and wife, an alcoholic beverage license may be issued or held either:

(1) In the name of both husband and wife; or

(2) In the name of either spouse, if it can be demonstrated by evidence satisfactory to the department that the unlicensed spouse is qualified and cannot participate in the operation of the business for reasons including, but not limited to, the following:

(A) Physical disability;

(B) Absence from the State for a prolonged period.

(b) Where a business is the separate property of a spouse, established by satisfactory proof to the department, an alcoholic beverage license may be issued in the spouse's name alone.

(c) The unlicensed spouse must have the qualifications required of a holder of a license unless the husband and wife are not living together and have not lived together for at least six months.

(d) The provisions of this rule shall apply to the ownership, by either spouse, of 10 percent or more of the stock of any corporation holding an alcoholic beverage license.

NOTE

Authority cited: Sections 23300, 23355, 23950, 23951, 23952, 23953, 23958, and 24040, Business and Professions Code.

HISTORY

1. New section filed 4-7-58; designated effective 5-15-58 (Register 58, No. 6). For history of former Section 58, see Register 10, No. 7.

2. Amendment filed 7-13-62; designated effective 8-15-62 (Register 62, No. 14).

3. Amendment filed 10-25-63; effective thirtieth day thereafter (Register 63, No. 19).

4. Amendment filed 8-16-72; designated effective 9-20-72 (Register 72, No. 34).

§59. Temporary Beer or Wine Licenses.

Note • History

(a) A temporary beer license and/or a temporary wine license may be issued to a person making application therefor on behalf of an existing nonprofit organization, including a charitable, civic, cultural, fraternal, patriotic, political, religious, social or amateur sports organization, for the following purposes:

(1) sales to members or guests of members of the organization at the site of and during an organized picnic, social gathering, or similar function of the organization; or

(2) sales to the general public from a premises temporarily occupied at the site of and during a county fair, civic celebration or similar event, or at a designated premises and during a fund-raising event sponsored by a nonprofit charitable, civic, cultural, fraternal, patriotic, political, religious, or amateur sports organization.

(b) The alcoholic beverage specified on the license issued pursuant to subsection (a) of this rule may be delivered to the licensee within three days of the effective date of the license except as prohibited by Section 25633 of the Alcoholic Beverage Control Act. Upon a showing of good cause, the department may approve earlier delivery.

(c) The holder of a license issued under subsection (a) of this rule may sell the alcoholic beverage specified on the license from 6 a.m. on the first effective date of the license to 2 a.m. on the day following the last effective date of the license.

(d) A wholesaler may lend, sell or rent to the holder of a license issued pursuant to subsection (a) of this rule draft pumps, ice boxes, and other tapping accessories.

(e) The licenses mentioned in paragraph (a) above do not include off-sale privileges.

(f) A temporary beer license and/or a temporary wine license may be revoked summarily by the department if, in the opinion of the department and/or the local law enforcement agency, it is necessary to protect the safety, welfare, health, peace, and morals of the people of the State.

NOTE

Authority cited: Section 22 of Article XX, California Constitution; and Sections 23001, 24045, 25500, 25504, 25600, 25633 and 25750, Business and Professions Code.

HISTORY

1. Amendment of subsection (a) filed 2-23-73 as an emergency; designated effective 3-26-73 (Register 73, No. 8). For prior history, see Register 58, No. 22.

2. Amendment of subsection (a) filed 7-19-73; designated effective 8-20-73 (Register 73, No. 29).

3. New subsection (f) and amendment of Note filed 1-27-94; operative 2-28-94 (Register 94, No. 4).

§59.1. Temporary Off-Sale Beer and Wine Licenses. [Repealed]

History

HISTORY

1. New section filed 10-19-62 as an emergency; effective upon filing (Register 62, No. 22).

2. Certificate of Compliance--Section 11422.1, Government Code, filed 11-27-62 (Register 62, No. 24).

3. Repealer filed 9-17-65 as an emergency; effective upon filing (Register 65, No. 17).

4. Certificate of Compliance--Section 11422.1, Government Code, filed 11-2-65 (Register 65, No. 21).

§59.5. Daily On-Sale General License.

Note • History

(a) A daily on-sale general license may be issued to an organization qualified under Section 24045.1 of the Business and Professions Code upon application by an authorized representative. Such license authorizes the sale of distilled spirits, wine, and beer for consumption on premises approved by the department. The department may refuse the issuance of a daily on-sale general license to any proposed premises if such issuance could prove detrimental to the immediate neighborhood or could be injurious to the public welfare or morals.

(b) No one organization may be issued a daily on-sale general license for more than two consecutive days nor more than twelve days in one calendar year, unless the restriction is waived by the department for good cause.

(c) A daily on-sale general license may not be issued for use at premises permanently licensed unless the premises holds an on-sale general license and the applicant provides the department with a written notice from the on-sale general licensee which certifies that his license privileges will not be exercised in the separate room or rooms wherein the daily on-sale general license is to be issued; provided, however, that the department may, for good cause, issue a daily on-sale general license at any licensed premises where the permanent license has been temporarily surrendered.

(d) Beer or wine for resale by a daily on-sale general licensee may be purchased at either retail or wholesale within three days of the effective date of the license as provided by Section 25633 of the Business and Professions Code. Distilled spirits for resale by the daily on-sale general licensee must be purchased at retail from the holder of an off-sale general license. Unsold and unopened alcoholic beverages may be returned to the seller from whom purchased.

(e) The holder of a daily on-sale general license may sell alcoholic beverages from 6:00 a.m. on the first effective date of the license to 2:00 a.m. on the day following the last effective date of the license.

(f) A daily on-sale general license may be revoked summarily by the department if, in the opinion of the department and/or the local law enforcement agency, it is necessary to protect the safety, welfare, health, peace and morals of the people of the State.

NOTE

Authority cited: Section 22, Article XX, California Constitution; and Section 25750, Business and Professions Code. Reference: Sections 23001, 23394, 23396, 23399, 23401, 23402, 24045, 24045.1, 24048, 25500, 25501, 25504, 25600 and 25633, Business and Professions Code.

HISTORY

1. New section filed 10-31-69 as an emergency; designated effective 11-10-69.

2. Certificate of Compliance included (Register 69, No. 44).

3. New subsection (f) and amendment of Note filed 1-27-94; operative 2-28-94 (Register 94, No. 4).

§60. Transfer of Licenses.

Note • History

(a) Subject to the provisions of law and of the department's rules limiting the number of licenses which may be issued in any county, licenses may be transferred from person to person and from premises to premises within the same county upon a single transfer application.

(b) The transferee shall make application to the department for a license of the type to be transferred and shall meet all the qualifications required of an original applicant for such license. The transferor shall join in the application.

(c) The transfer fee shall be paid by the transferee and shall accompany the application. The renewal fee shall accompany the transfer fee under circumstances described in Section 24048.2 or Section 24048.4 of the Business and Professions Code.

(d) In the absence of a temporary permit, the transferee shall not exercise any of the privileges of a licensee until the license is transferred by the issuance of a license certificate to the transferee. The transferor shall not permit the transferee to exercise any of the privileges of his license until the license is transferred.

(e) If a temporary permit is issued to the applicant for the transfer of a license on which a caterer's permit has been issued, the temporary permittee shall be entitled to exercise all the privileges of a caterer's permit during the period in which the temporary permit remains in effect without the payment of an additional fee.

(f) The administrator or executor of the estate of a deceased licensee may execute a transfer application and shall accompany such transfer application with a certified copy of letters testamentary or letters of administration.

(g) The guardian of the estate of a licensee may execute a transfer application and shall accompany such transfer application with a certified copy of the order appointing him guardian.

(h) In the event of the death of a limited partner licensee, or a general partner licensee where another general partner survives, the surviving partner or partners may execute a transfer application. In the event of the death of a general partner licensee where the only surviving partner is a limited partner, the executor or administrator of the estate of such general partner, or a person denominated in subsection (j) hereof, must also execute the transfer application. In both events, the transfer application shall be accompanied by a certified copy of the death certificate of the deceased partner, or other documentary proof of death satisfactory to the department.

(i) A trustee of the bankrupt estate of a licensee may execute a transfer application and shall accompany such transfer application with a certified copy of the order appointing him trustee.

(j) In the event that the estate of a deceased licensee may be disposed of without administration pursuant to Chapter 10 of Division 3 of the Probate Code and, if no administrator or executor of the estate is appointed, the surviving spouse or any other person entitled to administer such estate pursuant to such chapter may execute a transfer application and shall accompany such transfer application with a certified copy of the death certificate of the deceased licensee, or other documentary proof of death satisfactory to the department, and with either a certified copy of the order under which he acts or, if no such order is obtained, with an affidavit of his right to the licensed business.

(k) The receiver of the estate of a licensee may execute a transfer application and shall accompany such transfer application with a certified copy of the order appointing him receiver.

(l) If the transferor is a partnership, all members thereof must execute the application unless the department is satisfied by affidavit or otherwise that one or more partner licensees have abandoned their interest in the business and that such abandonment has continued for a period of not less than six consecutive months immediately preceding the application. The department may accept a transfer application executed by the remaining partners or any other person properly authorized by power of attorney.

For purposes of this rule, a partner licensee shall have abandoned his interest in the licensed business if he makes an oral or written declaration to that effect, or if all of the following conditions exist:

(1) He cannot be found or located.

(2) He has taken no active part in the operation or management of the licensed business.

(3) He has not received any income directly or indirectly from the licensed business.

(m) No license may be issued or transferred to any person unless he owns or otherwise has possession and control, or a right to possession and control, of the premises for which he makes application for a license, evidenced by an instrument in writing or by other clear and convincing proof.

NOTE

Authority cited for amendment filed 12-24-58: Sections 23300, 23820, 23950, 23951, 23952, 23953, 24048.2, 24048.4, 24070, 24071, 24072 and 25750, Business and Professions Code and Section 22 of Article XX of the California Constitution. Reference: Section 23399, Business and Professions Code.

HISTORY

1. Amendment filed 11-16-67; effective thirtieth day thereafter (Register 60, No. 46). For prior history, see Register 66, No. 3.

2. Amendment of subsections (d), (e) and (l) filed 12-18-69; designated effective 1-19-70 (Register 69, No. 51).

3. Change without regulatory effect amending subsection (e) and Note filed 3-8-2012 pursuant to section 100, title 1, California Code of Regulations (Register 2012, No. 10).

§60.1. Club Licenses. [Repealed]

Note • History

NOTE

Authority cited: Section 25750, Business and Professions Code.

HISTORY

1. New section filed 4-4-58; designated effective 5-15-58 (Register 58, No. 6).

2. Amendment filed 8-28-61; designated effective 10-1-61 (Register 61, No. 17).

3. Amendment filed 7-13-62; designated effective 8-15-62 (Register 62, No. 14).

4. Repealer filed 6-4-84; effective thirtieth day thereafter (Register 84, No. 23).

§60.2. Exchange of On-Sale General License for Public Premises.

Note • History

No on-sale general license shall be exchanged for a public premises license for a period of two years from the date of the original issuance of the license, or two years from the date of transfer county to county, unless the applicant can show that substantial public demand cannot otherwise be satisfied.

NOTE

Authority cited: Sections 23793 and 25750, Business and Professions Code and Section 22, Article XX, California Constitution.

HISTORY

1. New section filed 12-6-68; designated effective 1-8-69 (Register 68, No. 46). For prior history, see Register 67, No. 46.

2. Amendment filed 9-23-71; designated effective 10-26-71 (Register 71, No. 39).

3. Amendment filed 2-8-72; designated effective 3-10-72 (Register 72, No. 7).

4. Amendment filed 5-7-74; designated effective 6-10-74 (Register 74, No. 19).

§60.3. Applications and Contracts to Transfer. [Repealed]

Note • History

NOTE

Additional authority cited: Section 25750, Business and Professions Code.

HISTORY

1. New section filed 7-13-62; designated effective 8-15-62 (Register 62, No. 14).

2. Amendment filed 10-25-63; effective thirtieth day thereafter (Register 63, No. 19).

3. Amendment filed 11-16-67; effective thirtieth day thereafter (Register 67, No. 46).

4. Repealer filed 6-4-84; effective thirtieth day thereafter (Register 84, No. 23).

§60.4. Off-Sale General License on Off-Sale Beer and Wine Premises.

Note • History

An off-sale general license may be issued for a designated portion of a premises licensed with an off-sale beer and wine license when all the following conditions are met:

(a) The portion of the premises where the privileges of the off-sale general license are to be exercised shall be for the exclusive use of the off-sale general licensee, and shall be specified by metes and bounds and be distinctly separated from that portion of the premises where the privileges of the off-sale beer and wine license are exercised.

(b) The sale and delivery of alcoholic beverages under the off-sale general license shall be completed within the area defined and specified pursuant to paragraph (a) of this rule, and shall be made by the holder of the off-sale general license or his employees. Such employees shall be in the exclusive employ of the holder of the off-sale general licensee and shall not be employees of the off-sale beer and wine licensee. The holder of the off-sale general license shall possess and exercise the exclusive right to hire, supervise, and discharge such employees.

(c) The sale and delivery of alcoholic beverages under the off-sale beer and wine license shall be completed within the area of the premises other than that defined and specified pursuant to paragraph (a) of this rule, and shall be made by the holder of the off-sale beer and wine license or his employees. Such employees shall be in the exclusive employ of the holder of the off-sale beer and wine license and shall not be employees of the off-sale general licensee. The holder of the off-sale beer and wine license shall possess and exercise the exclusive right to hire, supervise, and discharge such employees.

(d) The off-sale beer and wine licensee and the off-sale general licensee shall each obtain and operate under separate appropriate business licenses, sales tax permits, and other such licenses and permits, and shall each keep and maintain separate records of inventory and sales, and records as required by Rule 17.

NOTE

Authority cited: Secs. 23300, 23355, 24040, 24041.5 and 25750, Business and Professions Code; Sec. 22, Art. XX, Calif. Constitution.

HISTORY

1. New section filed 11-16-67; effective thirtieth day thereafter (Register 67, No. 46).

§60.5. Caterer's Permit.

Note • History

The holder of a caterer's permit issued pursuant to paragraph (a) of Section 23399 of the Alcoholic Beverage Control Act may request consent of the department to sell alcoholic beverages for consumption at designated locations and events. Consent of the department shall be in the form of a caterer's authorization issued pursuant to paragraph (c) of Section 23399 under the following conditions:

(1) Unless waived by the department, for good cause shown, a catering authorization shall be obtained at least three days in advance of each catered event. A written application therefor shall be submitted indicating the address and common name of the premises to be catered, the number of occasions upon which the applicant has catered the premises during the current calendar year, the name and address of the person or organization sponsoring the event the type of event to be catered, and the estimated attendance thereat.

(2) A catering authorization shall not be issued for premises which have previously been denied a license by reason of the proximity of consideration points or conflict with a valid zoning ordinance unless a written waiver, executed by the person in charge of each such consideration point, is submitted or, in the case of conflict with a zoning ordinance, executed by the legal representative of the community involved.

(3) No caterer's authorization shall be issued in an area where the department would not authorize a license because of proximity to a university, State college, veterans home or other institution operated by the State or Federal Government, unless the privileges of the caterer's permit are to be exercised in connection with the serving of bona fide meals, and the exercise of the privileges will not otherwise be contrary to public welfare and morals.

(4) A catering authorization shall not be issued for use at any one premises for more than 24 events in one calendar year, except when the department determines additional events may be catered to satisfy substantial public demand.

NOTE

Authority cited: Sections 23300, 23399, 23789, 23790, 23791, 23958 and 25750, Business and Professions Code; Sections 172 through 172.9, Penal Code; Section 22, Article XX, California Constitution. Reference: Section 23399, Business and Professions Code.

HISTORY

1. New section filed 10-25-63; effective thirtieth day thereafter. (Register 63, No. 19).

2. Amendment filed 11-16-67; effective thirtieth day thereafter (Register 67, No. 46).

3. Repealer of subsection (5) filed 5-7-74; designated effective 6-10-74 (Register 74, No. 19).

4. Change without regulatory effect amending first paragraph and Note filed 3-8-2012 pursuant to section 100, title 1, California Code of Regulations (Register 2012, No. 10).

§61. License Limitations. [Repealed]

Note • History

NOTE

Authority cited: Sections 23820 and 25750, Business and Professions Code. Reference: Sections 23815, 23818 and 23958, Business and Professions Code.

HISTORY

1. Amendment of subsection (a) filed 12-6-68; designated effective 1-8-69 (Register 68, No. 46). For prior history, see Register 65, No. 18.

2. Repealer of subsection (b) filed 2-8-72; designated effective 3-10-72 (Register 72, No. 7).

3. Repealer of NOTE and new NOTE filed 6-1-77; effective thirtieth day thereafter (Register 77, No. 25).

4. Amendment filed 4-4-78; effective thirtieth day thereafter (Register 78, No. 14).

5. Repealer filed 6-4-84; effective thirtieth day thereafter (Register 84, No. 23).

§61.1. Priority Drawings. [Repealed]

Note • History

NOTE

Authority cited: Sections 23820 and 25750, Business and Professions Code and Section 22 of Article XX, California Constitution. Reference: Section 23815, Business and Professions Code.

HISTORY

1. New section filed 2-4-69 as an emergency; effective upon filing (Register 69, No. 6). For former section history, see Register 67, No. 46.

2. Certificate of Compliance--Section 11422.1, Gov. Code, filed 4-14-69 (Register 69, No. 16).

3. Amendment filed 4-4-78; effective thirtieth day thereafter (Register 78, No. 14).

4. Repealer filed 6-4-84; effective thirtieth day thereafter (Register 84, No. 23).

§61.2. Restrictions on Government-Owned Premises. [Repealed]

Note • History

NOTE

Authority cited: Sections 23824 and 25750, Business and Professions Code, and Section 22 of Article XX of the California Constitution.

HISTORY

1. New section filed 4-18-62; designated effective 5-21-62 (Register 62, No. 8). For history of former Section 61.2, see Register 61, No. 20.

2. Repealer filed 6-4-84; effective thirtieth day thereafter (Register 84, No. 23).

§61.3. Undue Concentration. [Repealed]

Note • History

NOTE

Authority cited: Section 25750, Business and Professions Code and Section 22 of Article XX, California Constitution. Reference: Section 23958, Business and Professions Code.

HISTORY

1. New section filed 8-1-77; effective thirtieth day thereafter (Register 77, No. 32). For history of former section, see Register 61, No. 20.

2. Amendment filed 4-4-79 as an emergency; effective upon filing (Register 79, No. 14).

3. Certificate of Compliance filed 6-29-79 (Register 79, No. 26).

4. Amendment filed 6-29-79; effective thirtieth day thereafter (Register 79, No. 26).

5. Change without regulatory effect amending section pursuant to section 100, title 1, California Code of Regulations filed 2-28-91 (Register 91, No. 13).

6. Change without regulatory effect repealing section filed 5-15-2012 pursuant to section 100, title 1, California Code of Regulations (Register 2012, No. 20).

§61.4. Proximity to Residences.

Note • History

No original issuance of a retail license or premises-to-premises transfer of a retail license shall be approved for premises at which either of the following conditions exist:

(a) The premises are located within 100 feet of a residence.

(b) The parking lot or parking area which is maintained for the benefit of patrons of the premises, or operated in conjunction with the premises, is located within 100 feet of a residence. Where the parking lot is maintained for the benefit of patrons of multiple businesses in the vicinity of the premises, the parking area considered for the purpose of this rule shall be determined by the area necessary to comply with the off-street parking requirements as mandated by the local ordinance, or if there are no local requirements for off-street parking, then the area which would reasonably be necessary to accommodate the anticipated parking needs of the premises, taking into consideration the type business and operation contemplated.

Distances provided for in this rule shall be measured by airline from the closest edge of any residential structure to the closest edge of the premises or the closest edge of the parking lot or parking area, as defined herein above, whichever distance is shorter.

This rule does not apply where the premises have been licensed and operated with the same type license within 90 days of the application.

Notwithstanding the provisions of this rule, the department may issue an original retail license or transfer a retail license premises-to-premises where the applicant establishes that the operation of the business would not interfere with the quiet enjoyment of the property by residents.

NOTE

Authority cited: Section 25750, Business and Professions Code; Section 22, Article XX, California Constitution. Reference: Section 23958, Business and Professions Code.

HISTORY

1. New section filed 8-1-77; effective thirtieth day thereafter (Register 77, No. 32). For history of former section, see Register 61, No. 20.

2. Amendment filed 6-27-79 as an emergency; effective upon filing (Register 79, No. 26).

3. Certificate of Compliance filed 10-25-79 (Register 79, No. 43).

§61.5. Off-Sale General License Restriction.

Note • History

No original off-sale general license shall be issued to any premises for which an on-sale license is issued, except that the department may issue an off-sale general license to premises licensed under an on-sale general license if it is satisfied that the on-sale business and the off-sale business are to be physically separated and operated independently of each other and the privileges thereby granted are to be fully exercised in a bona fide manner. Subject to the provisions of Section 24044 of the Alcoholic Beverage Control Act, and Rule 65 of these regulations, no off-sale general license shall be held by any person who does not, in good faith, exercise the privileges granted thereby at the licensed premises.

NOTE

Authority cited: Section 25750, Business and Professions Code; Section 22, Article XX, California Constitution. Reference: Sections 23300, 23320, 23355, 23394, 23401 and 24040, Business and Professions Code.

HISTORY

1. Repealer of NOTE and new NOTE filed 6-1-77; effective thirtieth day thereafter (Register 77, No. 25). For prior history, see Register 61, No. 14; 61, No. 20; 63, No. 19.

§62. Law Enforcement Personnel Not to Hold Licenses.

Note • History

No license authorized by the Alcoholic Beverage Control Act shall be held by, or issued or transferred to, any person holding office in, or employed by, any agency of the State of California or any of its political subdivisions when the duties of such person have to do with the enforcement of the Alcoholic Beverage Control Act or any other penal provisions of law of this State prohibiting or regulating the sale, use, possession or manufacture of alcoholic beverages. This rule is deemed to apply specifically, but without limiting its effect, to any persons employed in the Department of Justice of the State of California, in any district attorney's office, in any sheriff's office, in any local police department, or in the Department of Alcoholic Beverage Control. This rule shall not prohibit the ownership of any license interest by any local law enforcement officer or local reserve law enforcement officer where the licensed premises are located in a county other than that in which he is employed as a law enforcement officer.

This rule shall apply to any person mentioned herein who has any ownership interest, directly or indirectly, in any business to be operated or conducted under an alcoholic beverage license.

The provisions of this rule shall not apply to the ownership of any stock of a corporation the stock of which is listed on a stock exchange, or to the ownership of any stock of a bank, trust company, financial institution or title company to which a license is issued in a fiduciary capacity. This rule shall not apply to any person who holds a license in the capacity of executor, administrator or guardian. This rule shall not apply to a peace officers association qualifying for a club license pursuant to Section 23428.10 of the Alcoholic Beverage Control Act.

NOTE

Authority cited: Section 25750, Business and Professions Code; Section 22, Article XX, California Constitution. Reference: Section 23428.10, Business and Professions Code.

HISTORY

1. Amendment filed 2-2-77; designated effective 3-7-77 (Register 77, No. 6). For prior history, see Register 62, No. 21.

2. Amendment filed 4-4-78; effective thirtieth day thereafter (Register 78, No. 14).

§63. License Reinstatement After Automatic Revocation. [Repealed]

Note • History

NOTE

Authority cited: Article XX, Section 22, California Constitution and Sections 25750, 24048.1 and 24048.3, Business and Professions Code.

HISTORY

1. Originally published 3-22-45 (Title 4).

2. Amendment filed 12-19-45 (Register 3).

3. Amendment filed 9-13-57 as an emergency; effective upon filing (Register 57, No. 15).

4. Amendment filed 8-31-65; effective thirtieth day thereafter (Register 65, No. 16).

5. Repealer filed 11-6-96; operative 12-6-96 (Register 96, No. 45).

§64. Premises Under Construction.

Note • History

(a) No new and original license for the retail sale of alcoholic beverages shall be issued to premises which are in the process of construction until said premises are complete and ready for operation.

(b) A license may be transferred to a person who has premises under construction, and the certificate shall be held by the department until the construction of the premises is complete and ready for operation. No license transferred pursuant to this rule shall be retransferred prior to being placed into operation at the premises for which issued, except for undue hardship arising from causes beyond his control.

(c) The approved expected completion date on both pending applications filed pursuant to Section 24044 of the Alcoholic Beverage Control Act and licenses transferred and held under this section shall not be extended for more than six months, unless the department determines that the delay in construction is beyond control of the applicant or licensee. If good cause for delay does not exist, the application will be denied or the license will be cancelled.

NOTE

Authority cited: Sections 23957, 23985, 24044, 24070 and 25750, Business and Professions Code; Section 22 of Article XX of the California Constitution.

HISTORY

1. New section filed 9-22-54; effective thirtieth day thereafter (Register 54, No. 20). For history of former section, see Register 53, No. 4.

2. Amendment filed 7-12-61; effective thirtieth day thereafter (Register 61, No. 14).

3. Amendment filed 7-13-62; designated effective 8-15-62 (Register 62, No. 14).

§64.1. Licenses Within 200 Feet of Licenses of the Same Type. [Repealed]

Note • History

NOTE

Authority cited: Sections 23793, 23950 and 25750, Business and Professions Code and Section 22 of Article XX of the California Constitution.

HISTORY

1. New section filed 9-23-63; effective thirtieth day thereafter (Register 63, No. 17).

2. Repealer filed 9-17-65 as an emergency; effective upon filing (Register 65, No. 17).

3. Certificate of Compliance--Section 11422.1, Government Code, filed 11-2-65 (Register 65, No. 21).

§64.2. Premises Designation.

Note • History

(a) Premises and Activity Diagram.

(1) Prior to the issuance or transfer of a license, the applicant shall file with the department, on forms furnished by the department, a complete detailed diagram of the proposed premises wherein the license privileges will be exercised.

(2) The diagram will show all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways. Each room and/or partitioned area within the premises area shown will include a brief statement or description of the principal activity to be conducted therein, e.g., office, storeroom, toilets, bar, cardroom, billiards, etc. If any described activity shown thereon is not, or will not be, conducted under the direct control, supervision and ownership of the alcoholic beverage licensee, the name and full identification of any person or persons who own, direct, control and/or supervise the activity will be furnished to the department together with a full disclosure of any agreement, written or oral, between the licensee and said person.

(3) If the area proposed to be licensed uses, either as a principal or secondary means of public ingress and/or egress, any common door or common passage with any other occupant of the same or adjacent buildings or rooms, a statement of the general entities conducted and the identification of the persons or entities conducting said activities will be made on the diagram.

(b) Substantial Physical Changes of Premises or Character of Premises.

(1) After issuance or transfer of a license, the licensees shall make no changes or alterations of the interior physical arrangements which materially or substantially alter the premises or the usage of the premises from the plan contained in the diagram on file with his application, unless and until prior written assent of the department has been obtained.

For purposes of this rule, material or substantial physical changes of the premises, or in the usage of the premises, shall include, but are not limited to, the following:

(A) Substantial increase or decrease in the total area of the licensed premises previously diagrammed.

(B) Creation of a common entryway, doorway, passage or other such means of public ingress and/or egress, when such common entryway, doorway, passage or other such means of public ingress and/or egress, when such common entryway, doorway or passage permits access to the licensed premises area from or between adjacent or abutting buildings, rooms, or premises.

(C) Where the proposed change will create in the licensed premises an area, or room, or rooms, whether or not partitioned, or in some other manner delimited and defined wherein activities of any nature not directly related to the sale of alcoholic beverages will be conducted by a person, persons, or entity not under the direct control, supervision and direction of the licensee.

(2) Where the proposed change will create in the licensed premises area, or room, or rooms, or any portion of the premises, whereby the licensee, or the owner of the real property wherein the license privileges are exercised, creates or purports to create in any persons or entity by license, easement, grant sublease, subassignment or similar means an interest in which any person or entity will conduct any activity not directly related to the sale and service of alcoholic beverages not previously conducted on the premises.

(c) Application to Winegrower's and Brandy Manufacturer's Premises. The provisions of this rule shall not apply to the premises of a winegrower or brandy manufacturer, except for those portions of such premises where sales at retail are made or wine tasting activities are conducted.

NOTE

Authority cited: Section 25750, Business and Professions Code and Section 22 of Article XX, California Constitution. Reference: Sections 23958 and 24040, Business and Professions Code.

HISTORY

1. New section filed 9-23-71; designated effective 10-26-71 (Register 71, No. 39).

§65. Surrender of License on Closing of Business.

Note • History

(a) Every licensee who surrenders, abandons or quits his licensed premises, or who closes his licensed business for a period exceeding 15 consecutive calendar days, shall, within 15 days after closing, surrendering, quitting, or abandoning his licensed premises, surrender his license or licenses to the department. The department may seize the license certificate or certificates of any licensee who fails to comply with the surrender provisions of this rule, and may proceed to revoke his license or licenses.

(b) Upon the voluntary request by any licensee, on such form as the department may prescribe, the department may cancel his license or licenses.

(c) A surrendered license may be reinstated upon request made at least 10 days prior to the date of reinstatement upon certification by the licensee that there has been no change of ownership of the licensed business, and that the premises possess the same qualifications required for the original issuance of the license.

(d) Any license voluntarily surrendered under paragraph (a) of this rule shall be revoked if it is not transferred to another person or for use at another premises, or redelivered and the licensed activity resumed, within one year from the date of such surrender. There shall be no extension of such surrender period except when the department finds good cause exists where:

(1) an application is pending for transfer of the surrendered license; or

(2) litigation other than that involving disciplinary action by the department is pending; or

(3) the premises for which the license had been issued and for which the license is sought to be redelivered were destroyed due to circumstances beyond the control of the licensee by fire, flood, or other natural catastrophe, or as part of an urban renewal program, and the licensee makes an affirmative showing of good faith efforts that he is attempting to obtain reconstruction of such destroyed premises; or

(4) the Director in his judgment finds a case of undue hardship exists which would warrant an extension.

NOTE

Authority cited: Section 25750, Business and Professions Code; Section 22 of Article XX, California Constitution.

HISTORY

1. Amendment of subsection (d) filed 12-6-68; designated effective 1-8-69 (Register 68, No. 46). For prior history, see Register 58, No. 6.

2. Amendment filed 12-18-69; designated effective 1-19-70 (Register 69, No. 51).

§66. Premises Where Conditions Imposed.

Note • History

(a) When conditions have been imposed on a license, where otherwise the license would be denied, for reasons relating to the premises, no petition for the removal of the conditions may be filed within one year from the date the license was issued, or from the date a similar petition was denied.

(b) Notwithstanding subdivision (a), the department may at any time in the reasonable exercise of its discretion accept a petition to remove conditions, if the reasons which caused the imposition of conditions no longer exist.

NOTE

Authority cited: Section 25750, Business and Professions Code; Section 22 of Article XX, California Constitution. Reference: Sections 23800, 23801, 23802, 23803, 23804 and 24013.5, Business and Professions Code.

HISTORY

1. Amendment filed 11-16-67; effective thirtieth day thereafter (Register 67, No. 46). For prior history, see Register 62. No. 8.

2. Amendment to NOTE filed 6-17-77; effective thirtieth day thereafter (Register 77, No. 25).

3. Change without regulatory effect amending section heading, section and Note filed 2-8-2012 pursuant to section 100, title 1, California Code of Regulations (Register 2012, No. 6).

§67. On-Sale Beer and On-Sale Beer and Wine Licenses. [Repealed]

Note • History

NOTE

Authority cited: Sections 23958 and 25750, Business and Professions Code.

HISTORY

1. Amendment filed 9-18-47 (Register 9).

2. Amendment filed 5-7-74; designated effective 6-10-74 (Register 74, No. 19).

3. Repealer filed 6-4-84; effective thirtieth day thereafter (Register 84, No. 23).

§67.1. Beer Public Premises.

Note • History

(a) On and after November 8, 1967, any premises for which an on-sale beer license has been or is issued, shall be a public premises as defined in Section 23039(a)(2) of the Alcoholic Beverage Control Act if no food is prepared and sold on the premises for consumption on the premises. As used in the foregoing sentence “food” includes sandwiches, hamburgers, hot dogs, pizza, tacos, salads, desserts (other than pre-packaged individual servings of ice cream, ice milk or imitation ice cream), and similar short orders.

(b) Any on-sale beer license issued or transferred on or after November 8, 1967, for premises on which no food is prepared and sold as provided in (a) of this rule, shall be designated as an “On-Sale Beer License for Public Premises.”

(c) Any person who, on November 8, 1967, holds an on-sale beer license, other than a license designated as “On-Sale Beer License for Public Premises,” for premises on which no food is prepared and sold as provided in (a) of this rule, may at the time such person renews his license for 1968, notify the department that his license is to be designated as “On-Sale Beer License for Public Premises.” No fee shall be charged for such initial designation if made at the time the license is renewed for 1968.

Any person who holds an on-sale beer license, other than a license designated as “On-Sale Beer License for Public Premises,” for premises on which no food is prepared and sold as provided in (a) of this rule, shall prior to March 1, 1968, notify the department that the license is to be designated as “On-Sale Beer License for Public Premises.” If such notification of designation is made other than at the time the license is renewed for 1968, the exchange fee prescribed by Business and Professions Code Section 24072.2 shall accompany said notification.

(d) Each licensee who holds an “On-Sale Beer License for Public Premises” shall comply with the provisions of Rule 107 of the department's rules. The provisions of Section 25665 of the Alcoholic Beverage Control Act shall apply to each licensee who holds an “On-Sale Beer License for Public Premises.”

(e) An on-sale beer license may be exchanged for an “On-Sale Beer License for Public Premises,” and an “On-Sale Beer License for Public Premises” may be exchanged for an on-sale beer license in accordance with the provisions of this rule and with the provisions of Sections 23039 and 24072.2 of the Alcoholic Beverage Control Act.

NOTE

Authority cited: Sections 23039, 24070.1, 24072.1, 24072.2, 25665 and 25750, Business and Professions Code; Section 22, Article XX, California Constitution.

HISTORY

1. New section filed 10-9-67; effective thirtieth day thereafter (Register 67, No. 41).

2. Amendment of subsection (d) filed 2-2-77; designated effective 3-7-77 (Register 77, No. 6).

§68. Transfer of General Licenses. [Repealed]

Note • History

NOTE

Authority cited: Sections 23820 and 25750 of the Business and Professions Code; Section 22, of Article XX, California Constitution. Reference: Sections 14100, 14101, 14102, 14103, 16600, 16601, 16602, 23816, 23817, 23821, 23950, 23953, 23954, 23958, 24079 and 24080, Business and Professions Code.

HISTORY

1. Repealer of NOTE and new NOTE filed 6-17-77; effective thirtieth day thereafter (Register 77, No. 25). For prior history, see Register 64, No. 8; 71, No. 4; 72, No. 29; 75, No. 4.

2. Repealer filed 11-6-96; operative 12-6-96 (Register 96, No. 45).

§68.1. Waiting Period. [Repealed]

Note • History

NOTE

Authority cited: Sections 23793, 23815, 23816, 23820, 23954.5, 23958, 24070, 24079, 24080 and 25750, Business and Professions Code; Section 22, Article XX of the California Constitution.

HISTORY

1. New section filed 2-16-65 as an emergency; effective upon filing (Register 65, No. 3).

2. Repealed by operation of Sec. 11422.1, Gov. Code (Register 67, No. 41).

§68.2. Tax Delinquency When Transfer Pending.

Note • History

The department may refuse to transfer any license limited under Article 2 (commencing with Section 23815) of Chapter 5 of Division 9, Business and Professions Code, or any on-sale general seasonal license if the transferor is delinquent in the payment of any taxes due under the laws specified in Section 24049 of the Alcoholic Beverage Control Act, provided that notice of such delinquency has been filed with the department. Standard forms approved by the department and produced by the agencies which administer the laws specified in Section 24049, or by the department, shall be used by said agencies: (1) to give notice to the department that a delinquency exists as to a licensee; (2) to make demand on the delinquent licensee for the amount of the delinquency, plus interest if applicable; and (3) to give notice to the department that the delinquency has been cleared and the withhold is to be released.

(1) Upon receipt by the department of notice in duplicate that a delinquency exists as to a licensee, the department shall attach the original to the licensee's file, and shall return the duplicate, endorsed with any pertinent information, to the agency at such time as an application is filed to transfer the license of the licensee to another person.

(2) The taxing agency shall, within 30 days after the date the department returns the duplicate, make demand on the delinquent licensee for the amount of the delinquency, plus interest if applicable, and shall give notice of such demand to the escrow holder and the transferee. Copies of the notice of such demand shall be sent to the Headquarters office of the department in Sacramento and the appropriate district office of the department. If the agency fails to make its demand within 30 days after the date the department returns the duplicate of the agency's notice of delinquency, the department may proceed to transfer the license.

(3) A form of notice, in duplicate, that the delinquency has been cleared and the withhold is to be released, shall accompany the demand made by the agency as provided in (2) above. The person who pays the delinquency, plus interest if applicable, shall, upon making such payment to the agency, send the original of the notice provided herein to the Headquarters office of the department in Sacramento.

NOTE

Authority cited: Sections 23820, 24049, 24074 and 25750, Business and Professions Code; Section 22, Article XX, California Constitution.

HISTORY

1. New section filed 10-9-67; effective thirtieth day thereafter (Register 67, No. 41).

§68.5. Issuance or Transfer of Corporate Stock; Change of Corporate Directors or Officers.

Note • History

(a) Each corporate licensee shall, within thirty days of a change of the members of the board of directors, or a change in any of the corporate officers required by Section 312 of the Corporations Code, or the issuance or transfer of shares of its stock which results in a person not previously approved owning 10% or more of its stock, comply with the following conditions:

(1) Make application to the department on such forms as may be prescribed which shall contain such information with respect to the new person as is required to be furnished by an applicant for a license.

(2) Cause the new director, officer, or stockholder to present himself to the department within thirty (30) days of application, as required under (1) above, for completion of such forms as may be prescribed and for fingerprinting when deemed necessary.

(b) The department shall make an investigation to determine whether provisions of the Alcoholic Beverage Control Act and the Rules have been complied with and to determine the qualifications of the persons who present themselves as required in (a) (2) above. Where the department finds that the person does not have the qualifications to hold an alcoholic beverage license under Division 9 of the Business and Professions Code or Chapter 1, Title 4 of the California Administrative Code, the following procedure shall apply:

(1) In the case of an application filed as required under Section 24071.1 of the Business and Professions Code, the department may deny the transfer application.

(2) In all other cases the department shall notify in writing the corporate licensee and the person who was found to be disqualified. Such written notice shall become “The statement of issues,” as the term is used in Section 11504 of the Government Code. Within ten (10) days after such notification is mailed, the person or corporate licensee may petition the department in writing for a hearing on such notice of disqualification. On receipt of the petition, a hearing shall be scheduled thereon. The provisions of Section 24300 of the Business and Professions Code and Chapter 5 (commencing with Section 11500) of Part 1, Division 3 of Title 2 of the Government Code, shall govern such proceedings.

(c) When the department finds an officer, director or stockholder to be disqualified and the department's decision becomes final, as provided for by law, the department shall notify the licensed corporation in writing that it has thirty (30) days in which to take such action as may be necessary to remove the disqualified person from the corporation. Failure to so act within the prescribed period may be cause for disciplinary action by the department for the purpose of suspending or revoking the license. In any such disciplinary action, any findings of fact previously adopted by the department in connection with the person's disqualifications shall be presumptive proof as to the issue of the person's qualifications.

(d) When the final decision of the department is that a new director, officer or stockholder is qualified, written notice to that effect shall be given the person and the corporate licensee.

(e) The above provisions of this rule shall not apply to the following:

(1) A corporate licensee, the stock of which is listed on a stock exchange in this State, or in the City of New York, State of New York:

(2) A bank, trust company, financial institution or title company to which a license is issued in a fiduciary capacity; and

(3) A corporate licensee which is required by law to file periodic reports with the Securities and Exchange Commission.

NOTE

Authority cited: Section 25750, Business and Professions Code; Section 22, Article XX, California Constitution. Reference: Sections 23958, 24070, 24071 and 24071.1, Business and Professions Code.

HISTORY

1. Amendment filed 6-17-77; effective thirtieth day thereafter (Register 77, No. 25). For prior history, see Register 72, No. 7.

§68.6. Retail License Qualifications Where Interest Held by Out-of-Country Winegrower. [Repealed]

Note • History

NOTE

Authority cited: Section 25750, Business and Professions Code; Section 22, Article XX, California Constitution. Reference: Section 25503.13, Business and Professions Code.

HISTORY

1. New section filed 6-29-79; effective thirtieth day thereafter (Register 79, No. 26).

2. Repealer filed 11-6-96; operative 12-6-96 (Register 96, No. 45).

Article 12. Military and Naval Reservations and Camps [Repealed]

HISTORY

1. Repealer of article 12 (sections 69-71) and section filed 6-4-84; operative 7-4-84 (Register 84, No. 23).

Article 13. Private Warehouses

§76. Private Warehouses.

Note • History

Whenever a licensee desires to store alcoholic beverages, other than state tax-paid beer or wine, in a private warehouse, such licensee shall make application for approval of such warehouse to the district office of the department. The application shall specify the location of the warehouse, by whom maintained, the name of the licensee and the types of licenses, together with the numbers thereof, held by him. The district supervisor may approve the application if he is satisfied that the stated facts are correct. The applicant shall be given written notice of such approval, and he shall post it inside and near the entrance to the warehouse.

NOTE

Authority cited for amendment filed 4-7-58: Sections 23035, 23106 and 25750, Business and Professions Code; Section 22 of Article XX, California Constitution.

HISTORY

1. Amendment filed 4-7-58; designated effective 5-15-58 (Register 58, No. 6).

Article 14. Sales Without Licenses

§79. Sales Without Licenses.

Note • History

(a) Temporary Continuation of Retail Business. The administrator, executor or guardian of the estate of a retail licensee or receiver for a retail licensee or trustee of the bankrupt estate of a retail licensee, or assignee for the benefit of creditors of a retail licensee, or the surviving and competent colicensees of a deceased or incompetent retail licensee, may apply to the district supervisor of the department in the district in which the licensed premises are located for permission to operate a licensed business under the provisions of Section 23102 of the Alcoholic Beverage Control Act. Permission to sell and deal in alcoholic beverages under the authority of the license may be granted by district supervisor orally and shall be immediately confirmed in writing. Suspension or revocation of permission under this section may be made by the department in accordance with the provisions of the Alcoholic Beverage Control Act applicable to licenses.

(b) Temporary Continuation of Licensed Business Other Than Retail. The administrator, executor or guardian of the estate, or receiver, or assignee for the benefit or creditors, or trustee of the bankrupt estate of a licensee other than a retail licensee, may apply to the Director of Alcoholic Beverage Control for permission to operate under the provisions of Section 23102 and shall accompany such application with a surety bond as required by Part 14 of Division 2 of the Revenue and Taxation Code. Permission to operate shall be made in writing by the Director of Alcoholic Beverage Control, and suspension or revocation of such permission to operate may be made by the department in accordance with the provisions of the Alcoholic Beverage Control Act applicable to licenses.

(c) Sales by Former Licensees. A former licensee, or licensee whose license has been surrendered under Rule 65, may apply to a district office of the department in writing for permission to sell his stock of alcoholic beverages to a licensee or licensees authorized to resell such alcoholic beverages. The application shall state the date and hour of the proposed sale, which shall be not less than five nor more than 15 days from the date of filing the application, and shall be accompanied by an inventory of all alcoholic beverages to be sold to each licensee. The District Administrator may grant approval if he is satisfied the stated facts are correct. The applicant shall be given written notice of such approval, which notice he shall present upon request to any peace officer at the time of the sale.

The above requirements shall not apply to a licensee whose license is in process of transfer and who, in conjunction with that transfer, sells his stock of alcoholic beverages to the transferee.

(d) Sales to Enforce Warehouseman's Lien. A warehouseman, making a sale of alcoholic beverages to enforce a lien acquired under the Warehouse Receipts Act, shall sell distilled spirits only to distilled spirits manufacturers, manufacturers' agents, rectifiers and wholesalers, and shall sell beer and wine only to beer manufacturers and importers and to wine growers and importers. Written notice of sale shall be given the department at least one week in advance of sale.

(e) Insurers and Common Carriers. Any insurer which has insured the licensee against loss or damage to alcoholic beverages of the licensee, or any common carrier acting as an insurer for losses to persons shipping alcoholic beverages may apply to the Sacramento office of the department for permission to sell alcoholic beverages of such licensee, or other person shipping alcoholic beverages which have been damaged by fire or otherwise. The application shall be in writing in triplicate and shall state the name of the licensee or other person whose alcoholic beverages have been damaged, the quantity of the alcoholic beverages damaged and which are to be sold, the location of the alcoholic beverages, and the name of the licensee to whom the sale is to be made. Applications by common carriers shall also show the name of the shipper of alcoholic beverages, point of origin of the shipment, and the consignee.

Any insurer or common carrier acting as an insurer shall, before completing a sale of damaged malt beverages to any other type of licensee, offer the merchandise back to the manufacturer who produced it if that manufacturer is a California licensee or to the importer of the merchandise involved if the manufacturer is not licensed in California. If such California manufacturer or importer meets the highest price offered for the merchandise by any other type of licensee within ten days of notification by the insurer of the highest offer, the sale of the damaged malt beverages shall be made to said manufacturer or importer rather than to the other licensee.

(f) Sales by Executors or Administrators. An executor or administrator of the estate of a deceased person who was not a licensee at the time of his death may apply to a district office of the department in writing for permission to sell alcoholic beverages under Section 23104.4 of the Business and Professions Code. The application shall be in triplicate and shall state the quantity, brand, and type of alcoholic beverages to be sold. The district supervisor may, in writing, grant permission to make the sale of alcoholic beverages to a licensee authorized to sell such alcoholic beverages, such sale to be made at any time within 10 days from the date of granting approval.

NOTE

Authority cited: Section 25750, Business and Professions Code. Reference: Section 23381, Business and Professions Code.

HISTORY

1. Amendment of subsection (c) filed 12-6-68; designated effective 1-8-69 (Register 68, No. 46). For prior history, see Register 64, No. 8.

2. Amendment of subsection (c) filed 2-8-72; designated effective 3-10-72 (Register 72, No. 7).

3. Amendment of subsection (f) filed 2-2-77; designated effective 3-7-77 (Register 77, No. 6).

4. Repealer of subsection (d) and relettering of former subsections (e)-(g) to subsections (d)-(f) filed 6-4-84; effective thirtieth day thereafter (Register 84, No. 23).

§80. Labeling of Damaged Merchandise.

Note • History

A common carrier acting as an insurer for losses to persons shipping alcoholic beverages or an insurance company, pursuant to authority of Section 23104 of the Alcoholic Beverage Control Act, may take possession of damaged alcoholic beverages insured by it, after permission has been granted by the department. Such alcoholic beverages may be sold only to qualified licensees. Alcoholic beverages so sold because of damage by fire, wreck, or other similar circumstances shall be labeled to identify them as distressed merchandise.

The label for this purpose shall be white paper not less than two inches long and one inch wide. The following statement shall be printed thereon:

“The alcoholic beverage contained herein is distressed merchandise salvaged from fire, flood, wreck, or similar catastrophe. This label is not affixed by the manufacturer.” The letters on the label shall be no smaller than pica type and shall be bold-faced. The label may be larger than the minimum herein, if desired. Such label shall be affixed over the regular label of each bottle or other package by the insurance company or common carrier before it is delivered to the purchasing licensee.

No licensee shall purchase or resell such distressed merchandise without such label being securely affixed over the regular label of each bottle or other package.

NOTE

Authority cited: Section 25750, Business and Professions Code; Section 22, Article XX, California Constitution. Reference: Section 23104, Business and Professions Code.

HISTORY

1. New section filed 9-5-58; designated effective 10-10-58 (Register 58, No. 16).

2. Amendment filed 10-30-59; designated effective 11-30-59 (Register 59, No. 18).

3. Amendment filed 6-18-77; effective thirtieth day thereafter (Register 77, No. 25).

§81. Retailers' Sales to Wholesalers. [Repealed]

Note • History

NOTE

Authority cited: Sections 23104.3, 23104.4 and 25750, Business and Professions Code.

HISTORY

1. New section filed 9-25-53; effective thirtieth day thereafter (Register 53, No. 17).

2. Amendment filed 2-28-58; effective thirtieth day thereafter (Register 58, No. 4).

3. Repealer filed 11-6-96; operative 12-6-96 (Register 96, No. 45).

Article 15. Prices

§90. Posting of Malt Beverage Minimum Retail Prices. [Repealed]

Note • History

NOTE

Authority cited: Sections 24757, 25006 and 25750, Business and Professions Code; Section 22 of Article XX, California Constitution. Reference: Sections 24750, 24751 and 24755, Business and Professions Code.

HISTORY

1. Repealer filed 5-31-79; effective thirtieth day thereafter (Register 79, No. 22). For prior history, see Registers 60, No. 16; 61, No. 18; 71, No. 4, 78, No. 14.

§99. Minimum Retail Price Schedules. [Repealed]

Note • History

NOTE

Authority cited: Sections 24757 and 25750, Business and Professions Code; Section 22, Article XX, California Constitution. Reference: Sections 24749, 24750-24752 and 24755, Business and Professions Code.

HISTORY

1. Repealer filed 5-31-79; effective thirtieth day thereafter (Register 79, No. 22). For prior history, see Registers 70, No. 25; 71, No. 4;73, No. 29; 79, No. 25).

§99.1. Consumer Discounts. [Repealed]

Note • History

NOTE

Authority cited: Sections 24757 and 25750, Business and Professions Code and Section 22 of Article XX of the California Constitution. Reference: Sections 24749, 24750, 24752, 24755 and 25752, Business and Professions Code.

HISTORY

1. Repealer filed 5-31-79; effective thirtieth day thereafter (Register 79, No. 22). For prior history, see Registers 76, No. 50; 73, No. 27; 7, No. 5.

§99.2. Minimum Distilled Spirits Retail Price Information. [Repealed]

Note • History

NOTE

Authority cited: Sections 24757 and 25750, Business and Professions Code; Section 2 of Article XX, California Constitution. Reference: Sections 24749 and 24755, Business and Professions Code.

HISTORY

1. Repealer filed 5-31-79; effective thirtieth day thereafter (Register 79, No. 22). For prior history, see Registers 67, No. 41; 77, No. 6; 78, No. 14.

§100. Distilled Spirits Price Posting. [Repealed]

Note • History

NOTE

Authority cited: Sections 24757 and 25750, Business and Professions Code; Section 22, Article XX, California Constitution. Reference: Sections 24749, 24750, 24751, 24752, 24755, 24756, 25503, 25600 and 25752, Business and Professions Code.

HISTORY

1. Amendment filed 5-31-79; effective thirtieth day thereafter (Register 79, No. 22). For prior history, see Registers 73, No. 13; 77, No. 16; 77, No. 10; 77, No. 15.

2. Amendment of subsections (a) and (b)(1) filed 6-18-80; effective thirtieth day thereafter (Register 80, No. 25).

3. Change without regulatory effect repealing section filed 2-27-91 pursuant to section 100, title 1, California Code of Regulations (Register 91, No. 13).

§100.1. Distilled Spirits Price Posting. [Repealed]

Note • History

NOTE

Authority cited: Sections 24749, 24750, 24751, 24752, 24755, 24756, 24757, 25503, 25600, 25750, 25752, Business and Professions Code, and Section 22 of Article XX of California Constitution.

HISTORY

1. New section filed 9-12-61; designated effective 10-15-61 (Register 61, No. 18).

2. Repealer filed 3-17-67; effective thirtieth day thereafter (Register 67, No. 11).

§101. Wine Price Schedules. [Repealed]

Note • History

NOTE

Authority cited: Sections 24881 and 25750, Business and Professions Code. Reference: Sections 24850-24878, Business and Professions Code.

HISTORY

1. Amendment of subsections (b)(2) and (g) filed 2-2-77; designated effective 3-7-77 (Register 77, No. 6). For prior history, see Register 75, No. 4.

2. Amendment to NOTE filed 6-17-77; effective thirtieth day thereafter (Register 77, No. 25).

3. Amendment of subsection (p) filed 4-4-78; effective thirtieth day thereafter (Register 78, No. 14).

4. Repealer filed 6-4-84; effective thirtieth day thereafter (Register 84, No. 23).

§103. Retail Price Advertising of Distilled Spirits. [Repealed]

Note • History

NOTE

Authority cited: Section 25750, Business and Professions Code.

HISTORY

1. New NOTE filed 6-17-77; effective thirtieth day thereafter (Register 77, No. 25). For prior history, see Register 3, 10, No. 7; 61, No. 14.

2. Repealer filed 6-4-84; effective thirtieth day thereafter (Register 84, No. 23).

§104. Misleading Advertising. [Repealed]

Note • History

NOTE

Authority cited: Sections 24757 and 25750, Business and Professions Code; Section 22, Article XX, California Constitution. Reference: Sections 23001, 23025, 24752, 24755 and 24875, Business and Professions Code.

HISTORY

1. New section filed 6-24-48, designated to become effective 7-26-48 (Register 12, No. 11).

2. New NOTE filed 6-17-77; effective thirtieth day thereafter (Register 77, No. 25).

3. Repealer filed 11-6-96; operative 12-6-96 (Register 96, No. 45).

§105. Beer Price Posting.

Note • History

(a) The schedule of prices for the sale of beer, as required by Section 25000 of the Alcoholic Beverage Control Act, shall be filed with the department on a form prescribed by the department, in accordance with instructions thereon. All prices filed shall be for immediate delivery. Contract prices for future deliveries of beer and quantity discounts shall not be filed with the department.

(b) Each manufacturer, importer or wholesaler of beer shall file a price schedule for each county in which his customers have their premises, whether the price which is posted is f.o.b. or delivered, or both. Trading areas within a county must be based on natural geographical differences justifying different prices, and shall not be established for special customers.

NOTE

Authority cited: Sections 25006 and 25750, Business and Professions Code; Section 22, Article XX of the California Constitution. Reference cited: Section 25000, Business and Professions Code.

HISTORY

1. Amendment filed 6-17-77; effective thirtieth day thereafter (Register 77, No. 25). For prior history, see Registers 23, No. 5; 27, No. 5; 57, No. 15; 61, No. 17.

Article 16. Signs and Notices

§106. Advertising and Merchandising of Alcoholic Beverages.

Note • History

(a) Free Goods. No licensee shall, directly or indirectly, give any premium, gift, free goods, or other thing of value in connection with the sale, distribution, or sale and distribution of alcoholic beverages, and no retailer shall, directly or indirectly, receive any premium, gift, free goods or other thing of value from a supplier of alcoholic beverages, except as authorized by this rule or the Alcoholic Beverage Control Act.

(b) Definitions. Unless the context otherwise requires, the following definitions govern the construction of this rule.

(1) “Supplier” means any manufacturer, winegrower, manufacturer's agent, California winegrower's agent, rectifier, blender, broker, distiller, bottler, importer, wholesaler, or any officer, director, agent or affiliate of any such person.

(2) “Retailer” means any on-sale or off-sale licensee or any holder of a temporary retail permit or interim retail permit.

(3) “Sign” means a flat material or a three dimensional unit (other than the advertised product itself) principally bearing a conspicuous notice of the manufacturer's name, brand name, trade name, slogans, markings, trademarks or other symbols commonly associated with and generally used by the manufacturer in identifying the manufacturer's name or product, with or without other graphic or pictorial advertising representations, whether illuminated or mechanized, including but not limited to posters, placards, stickers, decals, shelf-strips, wall panels, shadow boxes, price boards, mobiles, inflatables, dummy bottles, bottle toppers, case wrappers, neck ringers, brand identifying statuettes, tap markers, table tents, mirrored signs, plaques and other similar items.

A sign advertising distilled spirits or wine shall have no secondary value and be of value to the retailer only as advertising.

(4) “Decorations” means material other than permitted signs, displays, promotional material, and the product itself which are used in the interior of retail premises for the embellishment of said signs, displays and promotional materials. “Decorations” include such items as holiday decorations, paintings, pictures, streamers, bunting, corrobuff, inflatables, foil, trimming or other temporary material which need not contain a conspicuous notice of the manufacturer's name, brand name, trade name, slogans, markings, trademarks or other symbols commonly associated with and generally used by the manufacturer in identifying the manufacturer's name or product. Such decorations shall have no intrinsic or significant utilitarian or secondary value other than as an embellishment. Decorations furnished to a single off-sale retail premises by one supplier in use at one time shall not exceed $50 original cost to the supplier, or if not purchased by or for the supplier, shall not exceed the total fair retail market value of $50.

(5) “Promotional materials” means material of any kind other than permitted signs, displays, decorations, and the product itself furnished by a supplier to a retail licensee for advertising purposes. Promotional materials shall have no intrinsic or significant utilitarian or secondary value other than as permitted by this rule.

(6) “Window display” means the exhibition in windows of any or all of the following: permitted signs, promotional material, decorations and the advertised product itself.

(7) “Temporary floor display” means the exhibition of alcoholic beverages in off-sale premises by means of racks, bins, barrels, casks, shelving and similar devices from which alcoholic beverages are displayed and sold. Such displays shall bear conspicuous advertising required of a sign. “Temporary” shall mean a period of time not exceeding four months.

(8) “Sale”, “Sales”, “Distribution” or “Sales and Distribution” as used in this rule mean the total business of merchandising alcoholic beverages, including the solicitation of customers and the various methods and procedures used in advertising and promoting the sale of alcoholic beverages, as well as the actual transfer of title of alcoholic beverages.

(9) “Furnish” as used in this rule means to supply or make available for use as well as the giving or actual transfer of title of an item.

(c) Signs, Displays and Promotional Materials. A supplier shall not give or furnish signs, displays, or promotional materials advertising alcoholic beverages to a retailer, except as permitted by this rule or the Alcoholic Beverage Control Act.

(1) Interior Signs. A supplier may furnish interior signs advertising alcoholic beverages sold by him to a retailer for use within on-sale or off-sale premises, provided no such sign relating to wine or distilled spirits for use within an on-sale premises shall exceed 630 square inches. A sign shall be deemed to be an interior sign although placed in a window and primarily visible from outside the premises. Interior signs furnished by suppliers which advertise distilled spirits and wine shall have no secondary value and be of value to the retailer only as advertising. Suppliers may not directly or indirectly or through an arrangement with an affiliate or other person pay or credit the retailer for displaying the interior sign or for any expense incidental to its operation.

(2) Exterior Signs.

(A) Except as provided herein, no supplier shall sell, rent or otherwise furnish an exterior sign to any retail licensee.

(B) Any wholesaler may sell or rent an exterior sign advertising wine or distilled spirits to any licensee at a price not less than the current market price for such sign.

(C) Any wholesaler of beer may sell or rent an exterior sign advertising beer at a price not less than the wholesaler's cost for such sign. Any such sign that is customized for a retailer must be sold by the wholesaler. For purposes of this provision, “cost” shall be as defined in Section 17026 of the Business and Professions Code.

(D) No supplier shall place any sign, banner, display, or other device advertising alcoholic beverages on or over any public sidewalk, street or thoroughfare; nor shall any supplier place such signs on or adjacent to any retail premises or parking lot used in conjunction with any premises; provided however, that a supplier may temporarily furnish non-permanent exterior signs, banners and inflatables to organizations in connection with events described in subsections (h) and (i) of this rule.

“Exterior Signs” include but are not limited to billboards, inflatables, panels and any other device used to advertise a supplier's product.

(3) Displays. A supplier may furnish, install, set up and service signs, promotional materials and decorations as window displays or temporary floor displays in off-sale premises. The supplier shall not, directly or indirectly or through an arrangement with an affiliate or other person, pay or credit the retailer or employees or agents of the retailer for the privilege of placing such advertising materials within the retail premises, or for any expenses incidental to their operation.

(4) Promotional Materials. A supplier may furnish, give, lend, rent or sell promotional materials for alcoholic beverages sold by him to a retailer for use within off-sale premises, so long as the promotional material has no intrinsic value other than as advertising, in the same manner and under the same terms and conditions as the supplying of signs or displays pursuant to this rule.

(d) Alcoholic Beverage Lists. A supplier shall not furnish wine and/or spirits lists to a retailer except as permitted by this Rule.

A supplier of alcoholic beverages other than beer who is authorized by its license to sell its product to retailers may furnish to retailers authorized by their license to sell such alcoholic beverages other than beer, lists of alcoholic beverages other than beer sold and/or produced by the licensee and/or other suppliers, provided that the material for such lists and all components thereof shall not cost more than $25 per unit original cost to the supplier. A supplier may not make payment to a retailer for the purchase of wine and/or spirits lists, or reimburse a retailer for payment already made for the purchase of wine and/or spirits lists. Without limitation, the following may appear on said list:

(1) the name (or names) of the producer (or producers) of the wine and/or spirits and address, logo, slogan or other symbols or markings associated with and used by the producer in identifying his name or products;

(2) name of the product (or products), brand name, price, size, vintage date, bin number or other product designation;

(3) product description or identifying information or appellation of origin;

(4) the name of the retail licensee to whom the list is furnished and such retailers address, slogan, logo, etc. associated with and used by the retailer in identifying his name, business or establishment.

(e) Advertising Specialties. No licensee shall give advertising specialties except as permitted by this Rule or upon prior approval of the Department.

(1) Retailer Advertising Specialties. A supplier of wine or distilled spirits may furnish, give, rent, loan or sell advertising specialties to a retailer provided such items bear conspicuous advertising required of a sign and the total value of all retailer advertising specialties furnished by a supplier directly or indirectly, to a retailer shall not exceed $50 per brand in any one calendar year per retail premises. The value of a retailer advertising specialty is the actual cost of that item to the supplier who initially purchased it. Transportation and installation costs are excluded. The furnishing or giving of any retailer advertising specialty shall not be conditioned upon the purchase of the suppliers product. Retail advertising specialties given or furnished free of charge may not be sold by the retail licensee. Retailer advertising specialties include but are not limited to trays, coasters, coin mats, napkins, thermometers, jiggers, clocks, stirring spoons, pouring spouts, sponges, towels, menu cards, meal checks, calendars and similar items approved by the Department and which have inconsequential value.

(2) Consumer Advertising Specialties. Consumer advertising specialties such as ash trays, bottle or can openers, litter or shopping bags, matches, recipe cards, pamphlets, pencils, post cards, hats, posters, bottle or can stoppers, and other items approved by the Department, and which bear conspicuous advertising required of a sign may be furnished, given or sold to a retail licensee for unconditional distribution to the general public.

(A) Consumer advertising specialties furnished by a distilled spirits supplier to a retailer or to the general public shall not exceed $5.00 per unit original cost to the supplier who purchased it.

(B) Consumer advertising specialties furnished by a wine supplier to a retailer or to the general public shall not exceed $1.00 per unit original cost to the supplier who purchased it.

(C)(i) Except as provided in subdivision (e)(2)(C)(ii), consumer advertising specialties furnished by a beer supplier to a retailer or to the general public shall not exceed $0.25 per unit original cost to the supplier who purchased it, or $15.00 in the aggregate for all such items given by a single beer supplier to a single retail premises per calendar year.

(ii) Consumer advertising specialties furnished by a beer manufacturer to the general public shall not exceed $3.00 per unit original cost to the beer manufacturer who purchased it.

(D) A retailer may not be paid or credited in any manner directly or indirectly for distribution service nor shall consumer advertising specialties furnished free of charge by a supplier be sold by a retailer. A retail licensee may give advertising specialties to consumers provided such gifts are not coupled with the purchase of any alcoholic beverage and the original cost per unit to the retailer or the supplier does not exceed $1.

(E) Coin banks, toys, balloons, magic tricks, miniature bottles or cans, confections, dolls, or other items which appeal to minors or immature persons may not be used in connection with the merchandising of alcoholic beverages.

(3) Records. Suppliers shall keep and maintain records for a three year period of all items furnished to retailers under the provisions of this subsection. Commercial records or invoices may be used to satisfy this record keeping requirement if all required information is shown. These records shall show:

(A) The name and address of the retailer receiving the item;

(B) The date furnished;

(D) The supplier's cost of the item furnished (determined by manufacturer's invoice price); and,

(E) Charges to the retailer for any item.

(f) Cooperative advertising. No supplier of alcoholic beverages directly or indirectly, shall participate with a retailer in paying for an advertisement placed by the retailer, nor shall any signs, displays, advertising specialties promotional materials or decorations furnished by a supplier as permitted by this rule refer to the retailers name or business, except for exterior signs advertising beer sold pursuant to subdivision (c)(2)(C).

(g) No licensee, in connection with a licensed business, shall give any alcoholic beverage to any person to whom the licensee is authorized to sell except as provided by in Rule 52 and Section 23386 of the Alcoholic Beverage Control Act.

It is not the intent or purpose of this Rule to prohibit an on-sale licensee or any employee of such licensee from giving an incidental drink to a patron.

(h) Public Service Activities. Without violating this rule suppliers may furnish services to communities and bona fide nonprofit organizations in connection with public service or fund raising activities including picnics, parades, fairs, amateur sporting events, agricultural exhibitions, educational clinics, public concerts, and other similar events when approved by the department provided no such services are conditioned, directly or indirectly, upon the purchase of an alcoholic beverage or the exclusive sale of a suppliers product at such events. No such services shall be furnished for the benefit of any permanent retail licensee. Notwithstanding the prohibitions contained in subsection (f) of this rule, suppliers may furnish or share in the cost of advertisements, signs, promotional materials, etc. used in connection with such public service activities. Such advertising material may refer to the name of the temporary retail licensee sponsoring the event.

(i) Contests.

(1) Contests sponsored by retail licensees. Without violating this rule, retail licensees may furnish prizes other than alcoholic beverages, to participants in competitive events held on the licensed premises, provided participation in such events shall not be conditioned on the purchase, sale or consumption of alcoholic beverages and provided that such contest or competitive event does not involve the consumption of alcoholic beverages.

(2) Contest sponsored by suppliers. Without violating this rule, suppliers may sponsor contests, races, tournaments, and other similar activities on or off licensed premises. Sponsorships shall be only in the form of monetary payments to bona fide amateur or professional organizations established for the encouragement and promotion of the activities involved. Sponsorship shall be subject to the following conditions:

(A) There shall be no requirement for the exclusive sale of the sponsor's products nor shall such products be sold exclusively at any such event.

(B) No money or other thing of value other than approved advertising specialties shall be given by a sponsor to anyone other than the organizations conducting the contest.

(C) Participants may be charged an entry fee, but entry shall not be conditioned upon the purchase of any of the sponsor's products.

(j) Limitations.

Nothing in this Rule shall be construed to authorize the giving of any premium, gift or goods of any sort, whether by way of sweepstakes, drawings, prizes, cross-merchandising promotions with a non-alcoholic beverage product or products or any other method if the value of the premium, gift or goods given to an individual exceeds the limits specified in subdivision (e)(2).

NOTE

Authority cited: Sections 25006, 25600, 25503.1 and 25750, Business and Professions Code; and Section 22, Article XX, California Constitution. Reference: Sections 23025, 23301, 23386, 25500, 25501, 25502, 25503, 25503.1, 25600, 25611.1, 25611.3, 25612, 25616, 25752 and 25753, Business and Professions Code.

HISTORY

1. Amendment filed 2-2-77; designated effective 3-7-77 (Register 77, No. 6). For prior history, see Register 74, No. 19.

2. Amendment filed 6-17-77; effective thirtieth day thereafter (Register 77, No. 25).

3. Amendment of subsection (h)(3) filed 6-18-80; effective thirtieth day thereafter (Register 80, No. 25).

4. Repealer and new section filed 1-22-86; effective thirtieth day thereafter (Register 86, No. 4).

5. Amendment of section and Note filed 11-30-98 as an emergency; operative 11-30-98 (Register 98, No. 49). A Certificate of Compliance must be transmitted to OAL by 3-30-99 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 11-30-98 order, including further amendment of subsection (e)(2)(C), transmitted to OAL 11-25-98 and filed 1-8-99 (Register 99, No. 2).

7. Amendment of section and Note filed 6-4-2009; operative 7-4-2009 (Register 2009, No. 23).

§107. Retailers Required to Post Warning Notice.

Note • History

The licensee of each premises licensed with an on-sale license for public premises shall maintain a clearly legible permanent sign, not less than 7” x 11” in size reading, “No Person Under 21 Allowed” at or near each public entrance thereto in such a manner that such sign shall be visible from the exterior of each public entrance. The lettering of such sign shall be no less than one inch in height. A sign of like size and content shall be maintained at a prominent place in the interior of the premises.

NOTE

Authority cited: Sections 23039, 25665, 25750, Business and Professions Code, and Section 22 of Article XX, California Constitution.

HISTORY

1. New section filed 4-18-62; designated effective 5-21-62 (Register 62, No. 8). For history of former Section 107, see Register 56, No. 19.

2. Amendment filed 10-9-67; effective thirtieth day thereafter (Register 67, No. 41).

§108. Notice of Suspension.

Note • History

Every licensee whose licenses have been suspended by order of the department shall post two notices in conspicuous places, one on the exterior and one on the interior of his premises, for the duration of the suspension. The notices shall be two feet in length and 14 inches in width, and shall be in the following form:

NOTICE OF SUSPENSION

ALCOHOLIC BEVERAGE LICENSES ISSUED

For These Premises Have Been

Suspended by Order of the

DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL

For Violation of the

Alcoholic Beverage Control Act

Advertising or posting signs to the effect that the premises have been closed or business suspended for any reason other than by order of the department suspending alcoholic beverage license, shall be deemed a violation of this rule.

NOTE

Authority cited: Section 25750, Business and Professions Code; Section 22, Article XX, California Constitution.

HISTORY

1. Originally published 3-22-45 (Title 4).

2. Amendment filed 9-27-49 designated to be effective 11-1-49 (Register 18, No. 1).

3. Amendment filed 2-28-58; effective thirtieth day thereafter (Register 58, No. 4).

4. Amendment to NOTE filed 6-17-77; effective thirtieth day thereafter (Register 77, No. 25).

§109. Posting Notice.

Note • History

After filing an application to sell alcoholic beverages at any premises, the applicant shall post on the proposed premises notice of intention to sell alcoholic beverages. The notice shall be at least two feet in length and fourteen inches in width. This notice shall be posted in a conspicuous place which can be readily observed by ordinary passersby at or near the entrance to the premises. In the case of a vacant lot, posting shall be on a post or stake of permanent material, at the midpoint of the largest boundary fronting on a public thoroughfare at a point not more than ten feet from the sidewalk, or roadway in the absence of any sidewalk. This notice must be mounted upon heavy cardboard or wood backing affixed to the post or stake so as to be readily visible from the sidewalk or roadway.

The notice shall remain posted for at least 30 consecutive days.

NOTE

Authority cited: Sections 23985 and 25750, Business and Professions Code; Section 22 of Article XX, Calif. Constitution.

HISTORY

1. New section filed 8-28-61; designated effective 11-1-61 (Register 61, No. 17).

2. Amendment filed 11-1-63, as an emergency; effective upon filing (Register 63, No. 20).

3. Certificate of Compliance section 11422.1, Government Code, filed 2-20-64 (Register 64, No. 6).

4. Amendment filed 6-18-80; effective thirtieth day thereafter (Register 80, No. 25).

5. Editorial correction of printing error in HISTORY 2. (Register 91, No. 31).

§110. Brand Identification for Automatic Dispensers. [Repealed]

Note • History

NOTE

Authority cited: Section 25750, Business and Professions Code. Reference: Section 25609, Business and Professions Code.

HISTORY

1. New section filed 2-8-72; designated effective 3-10-72 (Register 72, No. 7).

2. Repealer filed 6-4-84; effective thirtieth day thereafter (Register 84, No. 23).

§111. On-Sale Publication. [Repealed]

Note • History

NOTE

Additional authority cited: Section 23986, Business and Professions Code.

HISTORY

1. New section filed 3-2-72 as an emergency; designated effective 3-6-72 (Register 72, No. 10).

2. Certificate of Compliance filed 6-29-72 (Register 72, No. 27).

3. Repealer filed 11-6-96; operative 12-6-96 (Register 96, No. 45).

Article 17. Distilled Spirits and Wine Credit Regulations [Repealed]

§115. Distilled Spirits and Wine Credit Regulations. [Repealed]

Note • History

NOTE

Authority cited: Sections 25500 to 25506, 25750 and 25752, Business and Professions Code.

HISTORY

1. New article 17 ( § 115) filed 10-19-53; designated effective on 2-1-54 (Register 53, No. 19).

2. Amendment, postponing effective date to 4-1-54, filed 12-28-53 (Register 54, No. 1).

3. Amendment, postponing effective date to 8-1-54, filed 2-24-54 (Register 54, No. 5).

4. Amendment, postponing effective date to 3-1-55, filed 7-9-54 (Register 54, No. 15).

5. Amendment filed 1-19-55, as an emergency, postponing effective date to September 1, 1955. Issuing agency, Department of Alcoholic Beverage Control. (Register 55, No. 2).

6. Repealer filed 8-31-55 as an emergency; effective upon filing (Register 55, No. 13).

Article 18. Standard Cases for Distilled Spirits [Repealed]

NOTE

Authority cited: Sections 23029, 24749, 24754, 24757, and 25750, Business and Professions Code; Section 22, Article XX, California Constitution. Reference: Division 9 (Chapters 1-17), Business and Professions Code.

HISTORY

1. Amendment filed 11-16-55 as an emergency; effective upon filing (Register 55, No. 17).

2. Amendment filed 10-25-63; effective thirtieth day thereafter (Register 63, No. 19).

3. Amendment filed 2-2-77; designated effective 3-7-77 (Register 77, No. 6).

4. Repealer of Article 18 (Section 123) filed 722-82; effective thirtieth day thereafter (Register 82, No. 30).

Article 19. Malt Beverage Regulations

§128. Certificate of Compliance. [Repealed]

Note • History

HISTORY

1. Originally published 3-22-45 (Title 4).

2. Amendment filed 6-23-47 (Register 8).

3. Repealer filed 4-19-49 (Register 16, No. 2).

§130. Beer Labeling Requirements.

Note • History

(a) The name and address of any manufacturer, bottler or packager appearing upon any label of beer must be the true name and address of such person at the time of packaging of such product. The true name of a manufacturer, bottler or packager shall be deemed to include a fictitious business name for which such manufacturer, bottler or packager has duly filed a Fictitious Business Name Statement pursuant to the provisions of Section 17900 et seq. of the Business and Professions Code. For purposes of this section, “address” means the city and state if domestically produced or city and country if produced outside of the United States. The manufacturer's, bottler's or packager's principal place of business may be shown in lieu of the actual place where manufactured, bottled or packaged if the address shown is a location where bottling or packaging operation takes place.

(b) Any labels or notices affixed to beer must, if such beer is produced in this State, be affixed prior to the first sale, and in the case of beer produced outside the State and imported into this State, be affixed prior to shipment into this State.

(c) A copy of any label or notice affixed to beer shall, if that beer is produced in this State, be filed with the headquarters office of the department by the manufacturer prior to the first sale, and if that beer is produced outside this State and imported into this State, be filed with the headquarters office of the department by the shipper prior to shipment into this State.

(1) No beer may be sold or delivered in this State unless the label or notice submitted to the department has been accepted for filing.

(2) The department may refuse to accept for filing any label or notice that is not in compliance with the provisions of this section or any provision of the Alcoholic Beverage Control Act.

(d) For purposes of this section, “affixed” means the placement, by any means, of a label or notice, or the information required on a label or notice, on a container of beer.

(e) Any variation or change to a label or notice shall be separately filed with the department.

NOTE

Authority cited: Sections 25205 and 25750, Business and Professions Code. Reference: Sections 23030, 25200, 25204 and 25205, Business and Professions Code.

HISTORY

1. Amendment filed 2-2-77; designated effective 3-7-77 (Register 77, No. 6). For prior history, see Register 65, No. 18.

2. Amendment filed 8-23-83; effective upon filing pursuant to Government Code section 11346.2(d) (Register 83, No. 35).

3. Amendment filed 2-25-94 as an emergency; operative 2-25-94 (Register 94, No. 8). A Certificate of Compliance must be transmitted to OAL by 6-27-94 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 2-25-94 order transmitted to OAL 6-3-94 and filed 7-18-94 (Register 94, No. 29).

5. Amendment of section and Note filed 8-20-2010; operative 9-19-2010 (Register 2010, No. 34).

§131. Tapping Equipment, Furnishing and Servicing.

Note • History

Beer manufacturers may furnish to beer wholesalers, and beer wholesalers or beer manufacturers may furnish to on-sale licensees, the following items of equipment in the case of either an initial installation for a new account or a changeover of equipment from a Peerless to a Golden Gate, or other systems, or vice versa. Such equipment shall remain the property of the supplier.

Peerless Golden Gate

(a) Keg (a) Keg

(b) Tap rod (b) Air hose

(d) Beer hose (d) Couplings

(e) Air hose (e) Vent

(f) Washers (f) Taps

(g) Couplings (g) Valves (Golden Gate)

(h) Clamps (h) Clamps or wire

Suppliers may service and repair the above items of equipment from time to time as necessary.

Suppliers may not furnish to retailers and may not repair the following items of equipment:

(a) Regulators

(b) Gauges

(d) Refrigeration

(e) Faucets

NOTE

Authority cited: Sections 25500, 25501, 25504, 25504.5, 25510 and 25750, Business and Professions Code; Section 22, Article XX, California Constitution.

HISTORY

1. New section filed 4-24-64; designated effective 6-1-64 (Register 64, No. 8).

2. Amendment filed 12-6-68; designated effective 1-8-69 (Register 68, No. 46).

§132. Out-of-State Beer Manufacturer's Certificate.

Note • History

(a) Application. A beer manufacturer in the United States, who does not manufacture beer in California and desires to ship beer into this State, may make an application in person or by mail to the headquarters office of the department in Sacramento for an out-of-state beer manufacturer's certificate. Only one such certificate will be issued to any one beer manufacturer. The application shall be accompanied by the annual fee, and shall include a written undertaking and agreement by the applicant:

(1) That it and its agents and all agencies within this State controlled by it will comply with all laws of this State and all rules of the department with respect to the sale of alcoholic beverages.

(2) That it will make available both in California and from outside the State, for inspection and copying by the department, all books, documents, and records located both within and without this State, which are pertinent to the activities of the applicant, its agents and agencies within this State controlled by it, in connection with the sale and distribution of its products within this State.

(b) Investigation. Upon receipt of an application for an out-of-state beer manufacturer's certificate accompanied by the annual fee, the department shall make an investigation to determine whether the applicant qualifies for the certificate applied for, or whether issuance would be in conflict with any law of this State or rule of the department.

(d) Fiscal Year; Renewability. The certificate shall be issued on the basis of a fiscal year, commencing on July 1 and ending on June 30. The certificate may be renewed annually. Renewals must be postmarked on or before June 30 or the certificate will be cancelled effective July 1 of the new fiscal year.

(e) Nontransferable. An out-of-state beer manufacturer's certificate shall be nontransferable. The department shall cancel the certificate of any holder who has ceased doing business as an out-of-state beer manufacturer.

NOTE

Authority cited: Section 25750, Business and Professions Code; Section 22, California Constitution. Reference: Sections 23357.1 and 23357.2, Business and Professions Code.

HISTORY

1. New section filed 5-11-72; designated effective 6-12-72 (Register 72, No. 20).

2. Editorial correction (Register 72, No. 29).

3. New NOTE filed 6-17-77; effective thirtieth day thereafter (Register 77, No. 25).

§134. Delivery to Temporary Licensee. [Repealed]

History

HISTORY

1. Originally published 3-22-45 (Title 4).

2. Amendment filed 9-17-47 (Register 9).

3. Repealer filed 7-23-56 as an emergency; effective upon filing (Register 56, No. 14).

§135. Bock Beer. [Repealed]

Note • History

NOTE

Additional authority cited: Section 22 of Article XX, California Constitution and 38a, Alcoholic Beverage Control Act.

HISTORY

1. Amendment filed 7-2-52; effective thirtieth day thereafter (Register 29, No. 2).

2. Repealer filed 4-2-58; effective thirtieth day thereafter (Register 58, No. 6).

Article 20. Measurement of Time [Repealed]

HISTORY

1. Repealer of article 20 (section 137) filed 10-15-45 designated to be effective 9-30-45 (Register 2).

Article 21. Interior Illumination of Licensed Premises

§139. Interior Illumination.

Note • History

At all times while any licensed retail premises are open for business the interior lighting maintained therein shall be sufficient to make easily discernible the appearance and conduct of all persons and patrons in that portion of the premises where alcoholic beverages are sold, served, delivered, or consumed.

NOTE

Authority cited: Section 25750, Business and Professions Code; Section 22, Article XX, California Constitution. Reference: Division 9 (Chapters 1-17), Business and Professions Code.

HISTORY

1. Amendment filed 4-8-58; designated effective 5-15-58 (Register 58, No. 6).

2. Amendment filed 2-2-77; designated effective 3-7-77 (Register 77, No. 6).

Article 22. Suspension or Revocation of Licenses

§141. Minor Decoy Requirements.

Note • History

(a) A law enforcement agency may only use a person under the age of 21 years to attempt to purchase alcoholic beverages to apprehend licensees, or employees or agents of licensees who sell alcoholic beverages to minors (persons under the age of 21) and to reduce sales of alcoholic beverages to minors in a fashion that promotes fairness.

(b) The following minimum standards shall apply to actions filed pursuant to Business and Professions Code Section 25658 in which it is alleged that a minor decoy has purchased an alcoholic beverage:

(1) At the time of the operation, the decoy shall be less than 20 years of age;

(2) The decoy shall display the appearance which could generally be expected of a person under 21 years of age, under the actual circumstances presented to the seller of alcoholic beverages at the time of the alleged offense;

(3) A decoy shall either carry his or her own identification showing the decoy's correct date of birth or shall carry no identification; a decoy who carries identification shall present it upon request to any seller of alcoholic beverages;

(4) A decoy shall answer truthfully any questions about his or her age;

(5) Following any completed sale, but not later than the time a citation, if any, is issued, the peace officer directing the decoy shall make a reasonable attempt to enter the licensed premises and have the minor decoy who purchased alcoholic beverages make a face to face identification of the alleged seller of the alcoholic beverages.

(c) Failure to comply with this rule shall be a defense to any action brought pursuant to Business and Professions Code Section 25658.

NOTE

Authority cited: California Constitution, article XX, section 22; and section 25750, Business and Professions Code. Reference: Section 25658, Business and Professions Code; and Provigo Corporation v. Alcoholic Beverage Control Appeals Board (1994) 7 Cal.4th 561, 28 Cal.Rptr. 638.

HISTORY

1. New section filed 1-2-96; operative 2-1-96 (Register 96, No. 1).

§142. Receiving Stolen Alcoholic Beverages; Ceiling Price Violations. [Repealed]

History

HISTORY

1. Originally published 3-22-45 (Title 4).

2. Repealer filed 9-11-47 (Register 9).

§143. Employees of On-Sale Licensees Soliciting or Accepting Drinks.

Note • History

No on-sale retail licensee shall permit any employee of such licensee to solicit, in or upon the licensed premises, the purchase or sale of any drink, any part of which is for, or intended for, the consumption or use of such employee, or to permit any employee of such licensee to accept, in or upon the licensed premises, any drink which has been purchased or sold there, any part of which drink is for, or intended for, the consumption or use of any employee.

It is not the intent or purpose of this rule to prohibit the long-established practice of a licensee or a bartender accepting an incidental drink from a patron.

NOTE

Authority cited: Sections 24200.5 and 25657, Business and Professions Code.

HISTORY

1. New section filed 5-25-54; effective thirtieth day thereafter (Register 54, No. 12).

2. Amendment filed 7-12-72; designated effective 8-14-72 (Register 72, No. 29).

§143.1. Employment of Minors in Public Premises. [Repealed]

Note • History

NOTE

Authority cited: Section 25750, Business and Professions Code, and Section 22, Article XX, California Constitution.

HISTORY

1. New section filed 4-18-62; designated effective 5-21-62 (Register 62, No. 8).

2. Repealer filed 7-12-72; designated effective 8-14-72 (Register 72, No. 29).

§143.2. Attire and Conduct.

Note • History

The following acts or conduct on licensed premises are deemed contrary to public welfare and morals, and therefore no on-sale license shall be held at any premises where such conduct or acts are permitted:

(1) To employ or use any person in the sale or service of alcoholic beverages in or upon the licensed premises while such person is unclothed or in such attire, costume or clothing as to expose to view any portion of the female breast below the top of the areola or of any portion of the pubic hair, anus, cleft of the buttocks, vulva or genitals.

(2) To employ or use the services of any hostess or other person to mingle with the patrons while such hostess or other person is unclothed or in such attire, costume or clothing as described in paragraph (1) above.

(3) To encourage or permit any person on the licensed premises to touch, caress or fondle the breasts, buttocks, anus or genitals of any other person.

(4) To permit any employee or person to wear or use any device or covering, exposed to view, which simulates the breast, genitals, anus, pubic hair or any portion thereof.

If any provision of this rule or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or application of the rule which can be given effect without the invalid provision or application, and to this end the provisions of this rule are severable.

NOTE

Authority cited: Section 25750, Business and Professions Code and Section 22 of Art. XX, California Constitution. Reference: Section 23001, Business and Professions Code.

HISTORY

1. New Section 143.2 filed 7-9-70; designated effective 8-10-70 (Register 70, No. 28).

§143.3. Entertainers and Conduct.

Note • History

Acts or conduct on licensed premises in violation of this rule are deemed contrary to public welfare and morals, and therefore no on-sale license shall be held at any premises where such conduct or acts are permitted.

Live entertainment is permitted on any licensed premises, except that:

(1) No licensee shall permit any person to perform acts of or acts which simulate:

(a) Sexual intercourse, masturbation, sodomy, bestiality, oral copulation, flagellation or any sexual acts which are prohibited by law.

(b) The touching, caressing or fondling on the breast, buttocks, anus or genitals.

(2) Subject to the provisions of subdivision (1) hereof, entertainers whose breasts and/or buttocks are exposed to view shall perform only upon a stage at least 18 inches above the immediate floor level and removed at least six feet from the nearest patron.

No licensee shall permit any person to use artificial devices or inanimate objects to depict any of the prohibited activities described above.

No licensee shall permit any person to remain in or upon the licensed premises who exposes to public view any portion of his or her genitals or anus.

NOTE

Authority cited: Section 25750, Business and Professions Code and Section 22 of Art. XX, Calif. Constitution. Reference: Sec. 23001, Bus. & Prof. Code.

HISTORY

1. New section filed 7-9-70; designated effective 8-10-70 (Register 70, No. 28).

§143.4. Visual Displays. [Repealed]

Note • History

NOTE

Authority cited: Section 25750, Business and Professions Code and Section 22 of Art. XX, Calif. Constitution. Reference: Sec. 23001, Bus. & Prof. Code.

HISTORY

1. New section filed 7-9-70; designated effective 8-10-70 (Register 70, No. 28).

2. Repealer filed 12-12-2001; operative 1-11-2002 (Register 2001, No. 50).

§143.5. Ordinances.

Note • History

Notwithstanding any of the provisions of Rules 143.2, 143.3 and 143.4, no on-sale licensee shall employ, use the services of, or permit upon his licensed premises, any entertainment or person so attired as to be in violation of any city or county ordinance.

NOTE

Authority cited: Section 25750, Business and Professions Code and Section 22 of Art. XX, Calif. Constitution. Reference: Sec. 23001, Bus. & Prof. Code.

HISTORY

1. New section filed 7-9-70; designated effective 8-10-70 (Register 70, No. 28).

§144. Penalty Guidelines.

Note • History

In reaching a decision on a disciplinary action under the Alcoholic Beverage Control Act (Bus. and Prof. Code Sections 23000, et seq.), and the Administrative Procedures Act (Govt. Code Sections 11400, et seq.), the Department shall consider the disciplinary guidelines entitled “Penalty Guidelines” (dated 12/17/2003) which are hereby incorporated by reference. Deviation from these guidelines is appropriate where the Department in its sole discretion determines that the facts of the particular case warrant such a deviation -- such as where facts in aggravation or mitigation exist.

NOTE

Authority cited: Section 25750, Business and Professions Code; and Section 22, Article XX, California Constitution. Reference: Section 23001, Business and Professions Code; and Section 11425.50(e), Government Code.

HISTORY

1. New section filed 4-13-2004 as an emergency; operative 4-13-2004 (Register 2004, No. 16). A Certificate of Compliance must be transmitted to OAL by 8-11-2004 or emergency language will be repealed by operation of law on the following day. For prior history, see Register 68, No. 46.

2. Certificate of Compliance as to 4-13-2004 order transmitted to OAL 8-11-2004; disapproved by OAL and order of repeal and deletion filed 9-23-2004 (Register 2004, No. 39).

3. New section filed 9-23-2004 as an emergency; operative 9-23-2004 (Register 2004, No. 39). A Certificate of Compliance must be transmitted to OAL by 1-21-2005 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 9-23-2004 order, including amendment of section, transmitted to OAL 11-18-2004 and filed 12-16-2004 (Register 2004, No. 51).

Article 23. Administrative Procedure

§145. Service of Notices.

Note • History

For the purpose of subdivision (c) of Section 11505 of the Government Code, notices which are required to be served by registered mail may be served by certified mail pursuant to Section 8311 of the Government Code, and shall be mailed to the licensee at the premises for which his license is issued. Any licensee who desires to have such notices mailed to him at an address other than his licensed premises shall file with the department a specific request for that purpose, and in such case notices shall be sent to the licensee at such address. Such licensee shall notify the department of a change in address, and specifically request the department to mail notices to the changed address.

NOTE

Authority cited: Sections 25750 and 25760, Business and Professions Code; Section 22 of Article XX, California Constitution. Reference: Division 9 (Chapters 1-17), Business and Professions Code.

HISTORY

1. New section filed 11-6-45; designated to be effective 11-1-45 (Register 3).

2. Amendment filed 4-8-58; designated effective 5-15-58 (Register 58, No. 6).

3. Amendment filed 2-2-77; designated effective 3-7-77 (Register 77, No. 6).

§146. Verification of Protests. [Repealed]

History

HISTORY

1. New section filed 11-4-46 (Register 6).

2. Repealer filed 9-17-47 (Register 9).

Article 24. Department of Alcoholic Beverage Control--Conflict-of-Interest Code

§150. General Provisions.

Note • History

The Political Reform Act, Government Code Sections 81000, et seq., requires state and local government agencies to adopt and promulgate conflict-of-interest codes. The Fair Political Practices Commission has adopted a regulation (2 California Code of Regulations Section 18730) that contains the terms of a standard conflict-of-interest code which can be incorporated by reference, and which may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act after public notice and hearings. Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission, along with the attached Appendices, designating positions and establishing disclosure categories, are hereby incorporated by reference and constitute the conflict-of-interest code of the Department of Alcoholic Beverage Control (ABC).

Individuals holding designated positions shall file statements of economic interests with ABC which will make the statements available for public inspection and reproduction. (Government Code Section 81008). Upon receipt of the statement of the Director, ABC shall make and retain a copy and forward the original of this statement to the Fair Political Practices Commission. Statements for all other designated positions will be retained by ABC.

NOTE

Authority cited: Sections 81008, 87300, 87304 and 87306, Government Code. Reference: Section 87300, et seq., Government Code.

HISTORY

1. New article 24 (section 150) filed 4-4-78; effective thirtieth day thereafter. Approved by Fair Political Practices Commission 4-20-77 (Register 78, No. 14).

2. Repealer of article 24 (section 150) and new article 24 (section 150 and Appendix) filed 2-26-81; effective thirtieth day thereafter. Approved by Fair Political Practices Commission 12-1-80 (Register 81, No. 9).

3. Amendment of text and Appendix filed 2-1-94; operative 3-3-94. Approved by Fair Political Practices Commission 1-27-94 (Register 94, No. 5).

4. Amendment of Appendix filed 5-5-2006; operative 6-4-2006. Approved by Fair Political Practices Commission 3-3-2006 (Register 2006, No. 18).

5. Amendment of article 24 heading, section and Note and redesignation and amendment of portions of former Appendix to new Appendix A and Appendix B filed 7-20-2011; operative 8-19-2011. Approved by Fair Political Practices Commission 6-21-2011 (Register 2011, No. 29).

Appendix A DESIGNATED POSITIONS

Designated Positions Disclosure Category

Director 1, 2

Chief Deputy Director 1, 2

Assistant Director, Field Division 1, 2

Assistant Director, Administration 1, 2

Chief Administrative Law Judge 1, 2

General Counsel 1, 2

Chief Counsel 1, 2

Deputy Division Chief, Alcoholic Beverage Control 1

District Administrator, Alcoholic

Beverage Control 1

Supervising Investigator, Alcoholic

Beverage Control 1

Investigator Assistant 2

Investigator 2

Licensing Officer, Alcoholic Beverage Control 1

Licensing Representative I and II, Alcoholic

Beverage Control 1

All Attorney Classes 1

All Administrative Law Judge Classes 1

All Information Officer Classes 1

Legal Analyst 1

Legal Assistant 1

All Staff Services Manager Classes 1

Accounting Officer 2

All Information Systems Analyst Classes 2

All Data Processing Manager Classes 2

All System Software Specialist Classes 2

Business Services Assistant 2

Consultants *

Appendix B

DISCLOSURE CATEGORIES

Disclosure Categories:

Category 1.

Designated positions in Category 1 must report:

Investments and business positions in business entities, and income, including gifts, loans, and travel payments, from sources, that either have applications for licensing, have licenses pending, are licensed, or have been licensed by the department within two years prior to any time period covered by a statement of economic interests, and interests in real property upon which a business licensed by the department is maintained.

Category 2. Designated positions in Category 2 must report:

Investments and business positions in business entities, and income, including gifts, loans, and travel payments, from sources, of the type that, within the previous two years, contracted with the State of California to provide services, equipment, leased space, materials, or supplies to ABC.

*Consultants shall disclose pursuant to the broadest disclosure category in the code subject to the following limitation:

The Director may determine in writing that a particular consultant, although a “designated position,” is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements described in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The Director's determination is a public record and shall be retained for public inspection in the same manner and location as this conflict-of-interest code. (Gov. Code Sec. 81008.)

Division 1.1. Alcoholic Beverage Control Appeals Board

Article 1. General

§175. Authority.

Note • History

NOTE

Authority cited for §§ 175 through 200: Section 23077, Business and Professions Code.

HISTORY

1. New Chapter 1.1 ( §§ 175 through 199) filed 2-3-55 as an emergency; effective upon filing (Register 55, No. 3).

2. Repealer of Chapter 1.1 (§§ 175 through 199) and new Chapter 1.1 ( §§ 175 through 200) filed 4-19-66; effective thirtieth day thereafter (Register 66, No. 10.)

3. Repealer filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

§176. Location of Offices.

History

HISTORY

1. Repealer field 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

§177. Tenses, Gender, and Number.

History

HISTORY

1. Repealer filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

§178. Definitions.

Note • History

For the purpose of these rules and regulations:

(a) “Board” means Alcoholic Beverage Control Appeals Board.

(b) “Department” means Department of Alcoholic Beverage Control.

(c) Unless the context otherwise requires, the words “appellant” or “party,” include the attorney or other authorized agent of such person.

(d) “Party” includes the department, the appellant and any person, other than an officer or an employee of the department in his official capacity, who has been allowed to appear in the proceeding before the department.

NOTE

Authority cited: Section 23077, Business and Professions Code; and Article XX, Section 22, California Constitution. Reference: Sections 23077 and 23081, Business and Professions Code; and Article XX, Section 22, California Constitution.

HISTORY

1. Amendment filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

§179. Computation of Time Limitations.

Note • History

The time provided by the regulations contained in this subdivision within which any act must be performed, shall be computed by excluding the first day, but including the last day unless it is a Saturday, Sunday or holiday, in which case such day shall also be excluded.

NOTE

Authority cited: Section 23077, Business and Professions Code; and Article XX, Section 22, California Constitution. Reference: Section 23081, Business and Professions Code; Section 12, Code of Civil Procedure; and Article XX, Section 22, California Constitution.

HISTORY

1. Amendment filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

§180. Notices to Authorized Agents.

Note • History

Whenever the records of the board indicate that a party is represented by an attorney or other authorized agent, such agent shall be entitled to a copy of all notices and decisions to which the principal would be entitled.

NOTE

HISTORY

1. Amendment filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

§181. Administration.

History

HISTORY

1. Repealer filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

Article 2. Filing of Appeal

§183. Form of Appeal.

Note • History

The notice of appeal should be typewritten or printed upon paper 8 1/2 x 11 inches in size and be double spaced.

NOTE

HISTORY

1. Amendment filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

§184. Contents of Notice of Appeal.

Note • History

The notice of appeal shall be signed by the appellant or his authorized agent. It should state the general grounds for appeal (see Business and Professions Code Section 23084) and the specific questions to be considered by the board on review. The original and three copies of the notice of appeal shall be filed with the board and a copy shall also be served upon all parties to the proceeding before the department, including the department at its principal office in Sacramento. Such service shall be made by delivering or mailing a copy of the notice of appeal to each party. Proof of service shall be filed with the original notice of appeal.

NOTE

Authority cited: Section 23077, Business and Professions Code; and Article XX, Section 22, California Constitution. Reference: Sections 23081 and 23084, Business and Professions Code; and Article XX, Section 22, California Constitution.

HISTORY

1. Amendment filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

Article 3. Record on Appeal

§187. Filing Record.

Note • History

When a notice of appeal has been filed with the board, the board shall request the department to furnish appellant an itemized statement of the estimated cost of the record on appeal in accordance with the fee schedule provided in Section 69950 of the Government Code. Cost of the record on appeal shall include the filing of an original and three copies of the reporter's transcript and file transcript, accompanied by the original exhibits, with the board. Such statement of costs shall also include the cost of preparing and delivering to appellant a copy of the reporter's transcript, exhibits and file transcript, should any or all be requested by appellant. In those instances, however, where the department has previously ordered an original copy of the reporter's transcript because of action taken by it pursuant to Government Code Section 11517(c), the appellant need only pay the fee for a first copy of the reporter's transcript, plus the fee for each additional copy, as provided by Section 69950, for the record on appeal furnished to the board and appellant. Upon receipt of payment from appellant, the department shall forthwith arrange for the preparation and delivery of the record on appeal.

NOTE

Authority cited: Section 23077, Business and Professions Code; and Article XX, Section 22, California Constitution.

HISTORY

1. Amendment filed 1-20-78; effective thirtieth day thereafter (Register 78, No. 3).

2. Amendment filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

§188. Contents of Record.

Note • History

The record on appeal filed with the board shall consist of:

(1) The file transcript, which shall include all notices and orders issued by the administrative law judge and the department, including any proposed decision by an administrative law judge and the final decision issued by the department; pleadings and correspondence by a party; notices, orders, pleadings and correspondence pertaining to reconsideration;

(2) the hearing reporter's transcript of all proceedings;

(3) exhibits admitted or rejected.

NOTE

Authority cited: Section 23077, Business and Professions Code; and Article XX, Section 22, California Constitution. Reference: Section 23083, Business and Professions Code; and Article XX, Section 22, California Constitution.

HISTORY

1. Amendment filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

§189. Documents Filed with Board.

Note • History

In addition to the notice of appeal and the record on appeal, other documents which may be legally filed with and received by the board in connection with the appeal, shall also become part of the record.

NOTE

Authority cited: Section 23077, Business and Professions Code; and Article XX, Section 22, California Constitution. Reference: Sections 23083 and 23085, Business and Professions Code; and Article XX, Section 22, California Constitution.

HISTORY

1. Amendment filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

§190. Cost of Record and Payment Therefor.

Note • History

The department shall calculate the cost of the record on appeal as provided by Section 187, shall notify appellant thereof, and demand payment. Payment shall be made by appellant to the department within fifteen days after the date of issuance of such demand.

NOTE

Authority cited: Section 23077, Business and Professions Code; and Article XX, Section 22, California Constitution. Reference: Section 23083, Business and Professions Code; Section 69950, Government Code; and Article XX, Section 22, California Constitution.

HISTORY

1. Amendment filed 1-20-78; effective thirtieth day thereafter (Register 78, No. 3).

2. Amendment filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

Article 4. Filing of Briefs

§193. Filing of Briefs by Parties.

Note • History

Appellant may file an opening brief, respondent may file a reply brief and appellant may thereafter file a closing brief.

(a) Form and Filing of Briefs. Briefs shall be typewritten or printed upon paper 8 1/2 x 11 inches in size. Reproduction thereof may be by any process, provided all copies are clear and permanently legible. Only one side of the paper shall be used, unless printed, and the margins shall not be less than one inch on all sides of the page. The lines shall be double spaced. Headings shall be capitalized. An original and three copies of all briefs shall be filed with the board. The original of each brief shall contain a certification that copies have been served upon or mailed to each party, his attorney or agent, as well as the department, and the attorney general's office.

(b) Time for Service and Filing. The opening brief shall be served and filed within fifteen days after the date on the notice issued by the board stating that the record on appeal has been filed with the board. The reply brief shall be served and filed within fifteen days after the filing date of the opening brief with the board. The closing brief shall be served and filed within five days after the filing date of the reply brief with the board. An extension of time within which to file a brief will be granted only upon a showing of good cause.

NOTE

Authority cited: Section 23077, Business and Professions Code; and Article XX, Section 22, California Constitution. Reference: Sections 23081 and 23083, Business and Professions Code; and Article XX, Section 22, California Constitution.

HISTORY

1. Amendment of subsection (b) filed 1-20-78; effective thirtieth day thereafter (Register 78, No. 3).

2. Amendment filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

§194. Briefs by Other Interested Persons.

History

HISTORY

1. Repealer filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

Article 5. Oral Argument

§197. Oral Argument.

Note • History

(a) Unless otherwise ordered by the board: (1) A party shall be allowed a maximum of 30 minutes for oral argument; (2) not more than one person on a side need be heard; (3) the appellant, or moving party, shall have the right to open and close.

(b) Continuances. Requests for continuances of oral argument will be granted only upon a showing of good cause.

NOTE

HISTORY

1. Amendment of subsection (c) filed 1-20-78; effective thirtieth day thereafter (Register 78, No. 3).

2. Amendment filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

Article 6. Newly Discovered Evidence

§198. Nature of Evidence and Showing.

Note • History

When the board is requested to remand the case to the department for reconsideration upon the ground that there is relevant evidence which, in the exercise of reasonable diligence, could not have been produced at the hearing before the department, the party making such request must, in the form of a declaration or affidavit, set forth:

(a) The substance of the newly-discovered evidence;

(b) Its relevancy and that part of the record to which it pertains;

(d) Nature of any exhibits to be introduced;

(e) A detailed statement of the reasons why such evidence could not, with due diligence, have been discovered and produced at the hearing before the department.

Merely cumulative evidence shall not constitute a valid ground for remand.

NOTE

Authority cited: Section 23077, Business and Professions Code; and Article XX, Section 22, California Constitution. Reference: Sections 23084 and 23085, Business and Professions Code; and Article XX, Section 22, California Constitution.

HISTORY

1. Amendment filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

Article 7. Motions

§198.1. Motions.

Note • History

The provisions of Section 193(a) as to form and filing of briefs shall apply to a motion filed with the board. Any showing in opposition to the motion of a party shall be served and filed within ten days after the date on the notice by the board providing therefor. The board may place any motion on the calendar for hearing or the board may otherwise dispose of the motion.

NOTE

HISTORY

1. Repealer of Section 198.1 and new Article 7 (Section 198.1) filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

Article 8. Dismissal of Appeal

§199. Dismissal of Appeal.

Note • History

The board may issue an order dismissing an appeal:

(a) Upon appellant filing with the board a request to dismiss the appeal;

(b) Upon motion of a party, or the board itself, that appellant has failed to perfect his appeal by failure to timely file same or to pay the amount specified pursuant to Sections 187 and 190 of these rules;

(c) Upon certification by the department that reconsideration has been granted in the case, said dismissal to be without prejudice to the filing of a subsequent appeal; or

(d) Upon a motion by the department or other party, or upon the board's own motion, where sufficient cause exists for dismissal.

NOTE

Authority cited: Section 23077, Business and Professions Code; and Article XX, Section 22, California Constitution. Reference: Sections 23081, 23083 and 23087, Business and Professions Code; Section 11521, Government Code; and Article XX, Section 22, California Constitution.

HISTORY

1. Renumbering of Article 7 to Article 8 and former Article 8 to Article 9 and amendment of Section 199 filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

Article 9. Disqualification of Board Members

§200. Disqualification of Board Members.

Note • History

A board member shall voluntarily disqualify himself/herself and withdraw from any case in which such person cannot accord a fair and impartial hearing. Any party may request the disqualification of any member by filing an affidavit before the submission of the case, stating with particularity the grounds upon which it is claimed that a fair and impartial appeal cannot be accorded by a board member. The issue raised by the request shall be determined by the other members of the board. No member of the board shall withdraw voluntarily, or be subject to disqualification, if this would prevent the board from acting in the particular case. The affidavit shall become a part of the record.

NOTE

Authority cited: Section 23077, Business and Professions Code; and Article XX, Section 22, California Constitution. Reference: Section 23075, Business and Professions Code; Article XX Section 22, California Constitution; and Fed. Construction Co. v. Curd , 179 C.489, 177 P.469.

HISTORY

1. Renumbering of Article 8 to Article 9 and former Article 9 to Article 10 and amendment of Section 200 filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

Article 10. Conflict of Interest Code

§200.1. General Provisions.

Note • History

The Political Reform Act (Government Code Section 81000, et seq.) requires state and local government agencies to adopt and promulgate Conflict of Interest Codes. The Fair Political Practices Commission has adopted a regulation (2 Cal. Code of Regulations Section 18730) which contains the terms of a standard Conflict of Interest Code, which can be incorporated by reference, and which may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act after public notice and hearings. Therefore, the terms of 2 Cal. Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission, along with the attached Appendix in which officials and employees are designated and disclosure categories are set forth, are hereby incorporated by reference and constitute the Conflict of Interest Code of the ALCOHOLIC BEVERAGE CONTROL APPEALS BOARD.

Designated employees shall file statements of economic interests with the ALCOHOLIC BEVERAGE CONTROL APPEALS BOARD which will make the statements available for public inspection and reproduction, (Gov. Code Section 81008). Upon receipt of the statements of the BOARD MEMBERS, the agency shall make and retain a copy and forward the original to the Fair Political Practices Commission. Statements for all other designated employees will be retained by the agency.

NOTE

Authority cited: Sections 87300 and 87304, Government Code. Reference: Section 87300, et seq., Government Code.

HISTORY

1. New article 9 (sections 201-209) filed 6-17-77; effective thirtieth day thereafter. Approved by Fair Political Practices Commission 4-20-77 (Register 77, No. 25).

2. Editorial renumbering of sections 201-209 to sections 200.1-200.9 (Register 78, No. 3).

3. Repealer of article 9 (sections 200.1-200.9) and new article 9 (section 200.1 and Appendix) filed 2-26-81; effective thirtieth day thereafter. Approved by Fair Political Practices Commission 12-1-80 (Register 81, No. 9).

4. Renumbering of article 9 to article 10 filed 2-19-82; effective thirtieth day thereafter (Register 82, No. 8).

5. Change without regulatory effect amending section filed 10-28-91 pursuant to section 100, title 1, California Code of Regulations and submitted to OAL for printing only (Register 92, No. 6).

6. Amendment of section and Appendix filed 3-27-95; operative 4-26-95. Submitted to OAL for printing only pursuant to Government Code section 11346.2 (Register 95, No. 13).

Appendix

Designated Employees.

Persons holding the following positions are designated employees:

Board Members

Chief Counsel/Executive Director

Staff Counsel

*Consultants

Disclosure Category.

Designated employees shall report investments and business positions in any business entity, interests in real property, and sources of income, which are any of the following:

(1) An applicant for, or the current holder of, an alcoholic beverage license,

(2) Any premises proposed to be or currently licensed for the sale of alcoholic beverages,

(3) The holder of an alcoholic beverage license at any time within four years preceding the date the designated employee assumed office, or

(4) A premises licensed for the sale of alcoholic beverages at any time within four years preceding the date the designated employee assumed office.

*The executive officer may determine in writing that a particular consultant, although a “designated position,” is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements described in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The executive officer's determination is a public record and shall be retained for public inspection in the same manner and location as this conflict of interest code.

Division 2. State Athletic Commission

(Originally Printed 3-22-45)

Chapter 1. Professional Boxing Rules

Article 1. General Provisions

§201. Citation.

Note • History

The rules in this subchapter shall be cited as the “Professional Boxing Rules.”

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18611, Business and Professions Code.

HISTORY

1. New section filed 6-11-84; effective thirtieth day thereafter (Register 84, No. 24). For prior history, see Register 82, No. 8.

2. Change without regulatory effect of NOTE (Register 87, No. 5).

3. Editorial renumbering only of former section 201 to section 201.5, and editorial renumbering only of former division 2 (section 200 “Citation”) to division 2 (section 201) to correct duplication of section numbers (Register 90, No. 21).

§201.5. Definitions.

Note • History

As used in this chapter:

(a) “commission” means the State Athletic Commission;

(b) “code” means the Business and Professions Code;

(d) the terms “club” and “promoter” are synonymous and used interchangeably, and include any person, partnership, club, corporation, organization or association conducting, holding or giving boxing contests.

(e) the masculine gender includes the feminine gender.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18621 and 18622, Business and Professions Code.

HISTORY

1. Originally printed 3-22-45.

2. Revision filed 5-23-47 (Register 8).

3. Repealer and new subchapters 1-3 filed 9-23-59; effective thirtieth day thereafter (Register 59, No. 16).

. (ED. NOTE--For changes intervening Register 8 and Register 59, No. 16, as to specific sections, see Registers 13, No. 6; 15, No. 2; 17, No. 1; 18, No. 4; 20, No. 6; 24, No. 3; 25, No. 6; 26, Nos. 4 and 7; 30, No. 1; 53, No. 3; 54, Nos. 1, 3, 5, 23, 25 and 27; 55, Nos. 16 and 17; and 56, Nos. 9, 13 and 17).

4. Repealer and new subchapters 1-3 refiled 12-14-59; effective thirtieth day thereafter (Register 59, No. 21).

5. Repealer and new section filed 1-30-64; effective thirtieth day thereafter (Register 64, No. 3).

6. Repealer of subchapter 1 (articles 1-10, sections 201-366, not consecutive) and new subchapter 1 (articles 1-12, sections 201-416, not consecutive) filed 2-23-84; effective thirtieth day thereafter (Register 84, No. 8). For prior history, see Registers 81, Nos. 49 and 15; 80, Nos. 19 and 15; 79, Nos. 49 and 10; 77, Nos. 48 and 3; 76, Nos. 40, 30 and 3; 75, Nos. 49 and 37; 73, Nos. 45, 35, 25, 9 and 3; 72, No. 16; 71, No. 31; 70, Nos. 50 and 8; 68, No. 37; 67, Nos. 51, 39 and 4; 66, No. 15; and 64, No. 18.

7. New subsection (e) filed 6-11-84; effective thirtieth day thereafter (Register 84, No. 24).

8. Change without regulatory effect of NOTE (Register 87, No. 5).

9. Editorial renumbering only of former section 201 to section 201.5 (Register 90, No. 21).

§202. Filing of Applications and Reports.

Note • History

Any application or report required under law or any rule of the commission to be filed with the commission, unless otherwise specified, shall be filed at the commission's general office at 2005 Evergreen Street, Suite 2010, Sacramento, CA 95827.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18612, 18642 and 18824, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Change without regulatory effect amending section filed 12-16-94 pursuant to section 100, title 1, California Code of Regulations (Register 94, No. 50).

3. Amendment filed 2-29-2000; operative 3-30-2000 (Register 2000, No. 9).

4. Change without regulatory effect amending section filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§204. Forms.

Note • History

Ring officials, licensees and applicants for licenses shall submit to the commission such forms, records and statements at such times and in such manner as directed by the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18612, 18642 and 18824, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§205. Filing of Change of Address.

Note • History

Every person, corporation, association or other organization holding a license issued by the commission, or any such person or entity with an application on file with the commission shall immediately notify the commission in writing at one of its offices of any and all changes of address, giving both the old and new address.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18641 and 18642, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§206. Authority of Employees.

Note • History

The jurisdiction, duties and responsibilities of all commission representatives and employees shall be established by the executive officer subject to the approval of the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18613, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§208. License Fees.

Note • History

Each application for a license to conduct or operate a professional boxer's gymnasium within the meaning of Section 18685 of the code shall be accompanied by the annual license fee of $10.00. Every such license expires at midnight on December 31 of each year.

NOTE

Authority cited: Section 18611 and 18648, Business and Professions Code. Reference: Sections 18640, 18641 and 18653, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

Article 2. Licenses and Applications

§210. Application for License; Contents, Falsification.

Note • History

(a) Applications for licenses shall be in writing on a form supplied by the commission and shall be verified under oath by the applicant. Every license issued shall be subject to the conditions and agreements set forth in the application therefor, the statutes and laws relating to boxing and the rules and regulations of the commission.

(b) Falsification in whole or in part of a material fact or presentation on any application for a license shall result in a license being denied, and if previously granted, revoked unless otherwise ordered by the commission.

NOTE

Authority cited: Section 18611 and 18648, Business and Professions Code. Reference: Sections 18640, 18641, 18642 and 18661, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Change without regulatory effect amending subsection (a) filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§211. Fingerprints and Photographs.

Note • History

(a) An applicant for any license issued by the commission shall submit two classifiable sets of fingerprints at the time the initial application is filed with the commission, or at such other times as deemed necessary by the commission. The applicant shall also furnish two passport-size photographs as required by the commission.

(b) This rule applies to any of the following:

(1) Sole proprietor;

(2) Every partner in a partnership;

(3) All members of a limited liability company;

(4) Every shareholder, officer or director of a nonpublic corporation; and

(5) Every officer and director of a public corporation.

NOTE

Authority cited: Section 144, 18611 and 18648, Business and Professions Code. Reference: Sections 144, 18640, 18660, 18661 and 18840, Business and Professions Code.

HISTORY

1. Amendment filed 12-17-86; effective thirtieth day thereafter (Register 86, No, 51).

2. Amendment of section and Note filed 8-30-2010; operative 9-29-2010 (Register 2010, No. 36).

§212. Use of Ring Names.

Note • History

Boxers and wrestlers may assume and use ring names, but the right to use any certain ring name is subject to the approval of the commission and may be denied either at the time of presenting application for license, or later, should reason for such denial be brought before the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18641 and 18642, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§213. Promoter's License.

Note • History

In order to be issued a boxing promoter's license, an applicant shall meet all the following requirements:

(a) An applicant shall demonstrate financial responsibility. For purposes of section 18665(b) of the code, “financial responsibility” means no less than $50,000 in cash or the equivalent in liquid assets, as demonstrated by the applicant's financial statement. The financial statement shall be prepared by and be on the letterhead of a certified public accountant or public accountant within sixty (60) days of the date the application is filed.

(b) An applicant shall demonstrate either that the applicant possesses the necessary knowledge and experience to act as a promoter or employs a person who possesses those qualifications.

(c) The bond required by section 18680 of the code, which shall be set by the commission in an amount no less than $50,000.

(d) The fee specified in section 18804 of the code.

(e) Evidence that the applicant is in compliance with Rule 290 regarding medical insurance.

(f) The applicant shall meet the requirements for licensure as a matchmaker, or in the alternative submit evidence that the promoter employs a licensed matchmaker.

(g) An application for a promoter's license shall be signed by an owner or officer of the applicant.

NOTE

Authority: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641 and 18648, Business and Professions Code.

HISTORY

1. New section filed 12-17-86; effective thirtieth day thereafter (Register 86, No. 51).

2. Amendment filed 8-30-2010; operative 9-29-2010 (Register 2010, No. 36).

§213.2. Changes in Promoter Personnel.

Note • History

(a) The requirements of section 18666 of the code shall not apply to changes in the shareholders of a publicly traded corporation.

(b) In accordance with section 18666 of the code, a licensed promoter shall provide fingerprints (in accordance with Rule 211) and a financial statement that complies with Rule 213 for persons who become connected with or obtain a proprietary interest in the promoter during the term of an existing promoter's license.

NOTE

Authority: Section 18611, Business and Professions Code. Reference: Sections 18640, 18714 and 18776, Business and Professions Code.

HISTORY

1. New section filed 8-30-2010; operative 9-29-2010 (Register 2010, No. 36).

§214. Professional Boxer's License--HIV/HCV/HBV Testing.

Note • History

(a) As used in Section 18712(a) of the code:

(1) The phrase “within 30 days prior to the date of application” means that the blood test will be accepted for licensure purposes for 30 days from the date of the test report.

(2) The phrase “documentary evidence satisfactory to the commission” means the original or a copy of the test report on letterhead of the the laboratory, accompanied by the applicant's declaration under penalty of perjury that the report represents the applicant's HIV/HCV/HBV test results.

(b) The tests described in Section 18712(a) of the code shall be referred to collectively as the “HIV/HCV/HBV tests.”

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18712, Business and Professions Code.

HISTORY

1. New section filed 6-16-97; operative 6-16-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 25). For prior history, see Register 94, No. 50).

2. Repealer and new subsection (a)(1) filed 3-20-2001; operative 4-19-2001 (Register 2001, No. 12).

3. Change without regulatory effect amending section heading and subsections (a)(2) and (b) filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§215. Manager Acting As Second.

Note • History

A licensed manager may act as a second without the necessity of a second's license.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18642, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§216. License Required.

Note • History

Boxer and managers licensed in other jurisdictions signing a contract with a promoter to box in this state shall have made application for a license with this commission and the boxer shall have been issued a license prior to signing any contract. Failure to comply with this rule may result in denial of any application received from such boxer or manager pending a hearing before the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641 and 18642, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§217. Matchmaker's License.

Note • History

In order to be licensed as a matchmaker, an applicant shall pass a written examination administered by the commission on California laws and regulations relating to boxing. The examination may be waived if the applicant possesses a current and valid license as a matchmaker in another state or country and has not been subject to any disciplinary action.

NOTE

Authority: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641 and 18648, Business and Professions Code.

HISTORY

1. New section filed 12-17-86; effective thirtieth day thereafter (Register 86, No. 51).

§218. Manager's, Second's and Timekeeper's License .

Note • History

(a) Boxing Manager. In order to be issued a boxing manager's license, an applicant shall pass a written examination administered by the commission on the fundamentals of boxing, the management of boxers, and California laws and regulations relating to boxing. The examination may be waived if the applicant possesses a current and valid license as a boxing manager in another state or country and has not been subject to any disciplinary action.

(b) Boxing Second. In order to be issued a boxing second's license, an applicant shall meet all the following requirements:

(1) Pass a written examination administered by the commission on the fundamentals of boxing and California laws and regulations relating to boxing.

(2) Perform a demonstration of competence by demonstrating the duties of a second before a representative of the commission.

(3) The examination and demonstration of competence may be waived if the applicant possesses a current and valid license as a boxing second in another state or country and has not been subject to any disciplinary action.

(1) Pass a written examination administered by the commission on the California laws and regulations relating to boxing.

(2) Perform a demonstration of competence by demonstrating the duties of a timekeeper before a representative of the commission.

(3) The examination and demonstration of competence may be waived if the applicant possesses a current and valid license as a timekeeper in another state or country and has not been subject to any disciplinary action.

NOTE

Authority: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641, 18642 and 18661, Business and Professions Code.

HISTORY

1. Renumbering of former Section 218 to Section 219, and new Section 219 filed 12-17-86; effective thirtieth day thereafter (Register 86, No. 51).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

§219. Temporary Permits.

Note • History

Pending investigation of the qualifications or fitness of an applicant for a license, the commission may grant such applicant a temporary license to act in the capacity for which a license is required. The granting of a temporary license shall, however, carry no presumption of the qualification or fitness of such applicant having a license, and the same may at any time be summarily terminated in the event the application for a license is denied by the commission. No such temporary permit shall be issued to any boxer whose application is not accompanied by satisfactory physical and eye examination reports from duly licensed physicians.

All temporary licenses issued by the commission shall be valid for a period not to exceed 120 days. Under no circumstances shall any temporary license extend from one license year to another.

NOTE

Authority cited: Sections 18611 and 18679, Business and Professions Code. Reference: Section 18679, Business and Professions Code.

HISTORY

1. Renumbering of former Section 218 to Section 219 filed 12-17-86; effective thirtieth day thereafter (Register 86, No. 51).

2. Amendment of section and Note filed 5-14-96; operative 6-13-96 (Register 96, No. 20).

Article 3. Contracts and Financial Arrangements

§220. Form of Contract.

Note • History

Contracts between boxers and managers and between boxers or managers and licensed clubs shall be executed on printed forms approved by the commission. The commission may recognize or enforce a contract not on its printed form if entered into in another jurisdiction. No other contract or agreement may be recognized or enforced by the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641, 18642 and 18854, Business and Professions code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-24-90; operative 11-23-90 (Register 90, No. 47).

§221. Provisions of Contract.

Note • History

(a) The original contract entered into between managers and boxers and promoters and boxers shall be placed on file with the commission at the time it is approved pursuant to Rule 222. Except as provided below, a contract becomes null and void if at any time during its term the manager or promoter, after notice from the commission, is not licensed by the commission. If a manager or promoter is not licensed because the license has been revoked or suspended for 60 calendar days or more by the commission, all contracts with the manager or promoter shall become void on the 30th day after the date of the order of revocation or suspension unless a court of competent jurisdiction, upon notice to the commission, issues an order staying the commission's order within the 30-day period. If a manager or promoter is not licensed because the license has been suspended by the commission for less than 60 calendar days, all contracts with the manager or promoter are voidable by the boxer if written notice is given by the boxer to the manager or promoter and to the commission within the period of license suspension.

(b) No manager or group of managers shall be allowed to participate in more than 33 1/3 percent of the gross ring earnings of the boxer. No assignment of any part or parts of the boxer's or manager's interest in a contract, filed and approved by the commission, shall be permitted without the approval and consent of the commission. The consent to assign shall not be granted unless a copy of the proposed assignment is submitted to the commission for its approval. No manager may negotiate or sign for matches for a boxer not under contract to him. Any boxer not having a contract with a licensed manager shall sign for his own contests and receipt for his full purse. All disputes between the parties to the contract, including the validity of the contract, shall be arbitrated pursuant to the provisions of the contract.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641, 18642, 18643 and 18854, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment of section filed 7-17-96; operative 8-16-96 (Register 96, No. 29).

3. Amendment filed 6-15-2011; operative 7-15-2011 (Register 2011, No. 24).

§222. Execution of Contract.

Note • History

Unless otherwise directed by the commission, a contract between a boxer and a manager or a boxer and a promoter is not valid unless both parties appear at the same time before the commission or a commission representative and it receives written approval. No contract shall be approved between a manager and a boxer or a promoter and a boxer for a period exceeding five years. No option to extend the initial period shall be permitted.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641, 18642, 18643 and 18840, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 6-15-2011; operative 7-15-2011 (Register 2011, No. 24).

§223. Number of Boxers. [Repealed]

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641, 18642 and 18842, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§224. Advances by Manager, Accounting For.

Note • History

Any manager who advances or loans any money to any boxer or incurs indebtedness on behalf of any boxer shall furnish a statement under penalty of perjury to the boxer every ninety days. The statement shall be specific and shall set forth as to each transaction or item at least the following information: the amount of money involved, the date that the indebtedness occurred, the purpose of the indebtedness, and the name of the person to whom the debt is owed.

The manager shall obtain the boxer's signature and date of signature on each accounting and within ten days after furnishing the accounting to the boxer, the manager shall file with the commission a true copy of the accounting.

If the boxer refuses to date and sign the accounting, the manager shall file the accounting with the commission along with a statement that the manager provided the boxer with the accounting but that the boxer refused to date and sign it and the reason given by the boxer if any.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18848, 18852 and 18538, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§225. Manager's Written Report.

Note • History

The manager's written report required to be filed with the commission under Section 18852 of the code shall itemize and specify each expense listed as a training expense and set forth with regard to each training expense itemized at least the date the expense was incurred and the kind of expense involved.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18852, Business and Professions Code.

HISTORY

1. Change without regulatory effect (Register 87, No. 5).

2. Change without regulatory effect amending section heading filed 12-16-94 pursuant to section 100, title 1, California Code of Regulations (Register 94, No. 50).

§226. Expiration of Contract.

Note • History

No manager shall be allowed to contract for the services of a boxer under his management for a match to take place on a date after the expiration of the contract between the boxer and manager.

No promoter shall be allowed to contract for the service of a boxer to take place on a date after the expiration of the contract between the boxer and the promoter.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641 and 18642, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Editorial correction of Reference cite (Register 95, No. 8).

3. New second paragraph filed 6-15-2011; operative 7-15-2011 (Register 2011, No. 24).

§227. Arbitration Procedures.

Note • History

(a) A person who seeks arbitration of a contract dispute pursuant to Rule 221 shall send a written request for arbitration to the commission's headquarters and to the Office of the Attorney General at the address designated on the form. The request shall be on a form prescribed by the commission and shall contain all of the following information:

(1) The person's name, address, telephone number, e-mail address if available.

(2) The date of the request.

(3) Type of license held and license number.

(4) A detailed statement showing the ground for the request.

(5) A copy of each contract over which arbitration is sought.

(6) Whether the services of an interpreter are required and if so, for which language.

(7) Three dates of availability for arbitration within the next 90 days after the date of the request.

(8) Which of the following geographic locations is preferred: Sacramento, Los Angeles, San Francisco or San Diego.

(9) The requester's signature.

The commission shall return to the requester without action any request that is incomplete because it lacks one or more of the items described above.

(b) Within five (5) working days after receipt of a complete request for arbitration, the commission shall serve the request and any accompanying documents on the other party to the contract and provide that party with an opportunity to respond. If the commission does not receive a response from the other party not later than twenty (20) calendar days from the date of service of the request, the matter shall proceed by default.

(d) Not less than ten (10) days prior to the hearing, the parties shall exchange and also serve on the commission's designated representative a detailed list of the evidence expected to be presented during the hearing, which shall include a list of the names of witnesses and a copy of every document that the party intends to present.

(e) An arbitration proceeding shall not exceed four (4) hours unless the arbitrator determines that additional time is needed, based on the detailed statement required in subsection (a)(4), in which case the arbitrator may permit the hearing to proceed a maximum of six (6) hours total. The time shall be divided evenly among the parties. Each party may make either an oral or a written statement of the case. The party requesting arbitration shall proceed first. Every person who will be testifying shall be sworn in.

(f) The party requesting arbitration bears the burden of proving his or her case by a preponderance of the evidence.

(g) The arbitrator shall serve the written decision on the parties not later than forty-five (45) calendar days after the matter has been submitted.

(h) Unless good cause is shown, a request for arbitration shall be deemed abandoned and the request dismissed if the party who requests arbitration fails to appear at a duly noticed hearing two times.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. New section filed 4-6-2009; operative 4-6-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 15).

§230. Contract Provisions.

Note • History

(a) No verbal agreement or written agreement other than a contract on the commission's official form shall be accepted by the commission.

(b) No contract between a promoter and manager or boxer shall be enforced by the commission until all contracts between the promoter and the contestants for a particular match are filed with the commission and meet the requirements of these rules and the provisions of the code applicable to professional boxing. All contracts for an event shall be filed with the commission no later than the time periods specified in Rule 240.

(c) Contracts are prohibited wherein a certain sum other than federal, state or local government taxes is taken by the club from the gate receipts or, where applicable, receipts from the sale, lease, transfer, or other exploitation of broadcasting and television rights, before a boxer is paid a percentage of the balance of said receipts for his or her services. Deductions may be allowed only if the amount to be deducted is clearly specified and itemized in the contract signed by the club with the boxer. If the commission determines that the deductions are not sufficiently itemized and specific, it may disallow such deductions.

(d) “Blanket contracts” or options on a boxer's services shall not be recognized unless written approval is obtained from the commission.

(e) Contracts wherein a boxer agrees to accept a certain percentage for his services with the understanding that at the same time he is to pay his opponent a stipulated amount of this percentage are not acceptable to the commission unless such a contract is submitted to the commission for examination and approval.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641, 18642, 18660, 18661 and 18854, Business and Professions Code.

HISTORY

1. Amendment filed 12-17-86; effective thirtieth day thereafter (Register 86, No. 51).

2. Amendment of subsection (b) filed 6-15-2011; operative 7-15-2011 (Register 2011, No. 24).

§231. Failure to Appear.

Note • History

(a) Any contestant absenting himself from a show in which he has signed or has been signed by his duly licensed manager to appear, without a written valid excuse or a certificate from a commission physician in advance in case of physical disability,is subject to disciplinary action.

(b) Any boxer who files a certificate from a commission physician stating that he is unable to fulfill a contract on account of physical disability shall on being restored to the eligible list, fulfill his contract with the same opponent or a suitable substitute at the club specified in the contract within a reasonable time, such period to be set by the commission, unless the boxer is released from the contract by mutual agreement.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641 and 18861, Business Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§232. Payment of Contestants.

Note • History

All contestants shall be paid in full according to their contracts, and no part or percentage of their remuneration may be withheld except by order of an official of the commission, nor shall any part thereof be returned through arrangement with the boxer or his manager to any matchmaker, assistant matchmaker, or club official. The boxer or manager may not assign his respective share of the purse, or any portion thereof, without the approval of the commission, upon written request filed with the commission at least 72 hours before the contest.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641 and 18854, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§233. Time and Manner of Payment.

Note • History

All payment of purses shall be made immediately after the contest or exhibition, or, in case of a percentage contract, immediately after the percentage is determined by the commission inspectors unless otherwise ordered by the commission.

The club's authorized representative shall, unless otherwise ordered by the commission's representative in the club office, deliver check or checks made out by the club as payor to all parties entitled to payment. The club shall take a receipt for all payments made by checks, and deliver a copy of such receipt to the commission. The form of this payoff sheet shall be furnished by the commission and completed by the inspector.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18854, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§234. No Decision Bout.

Note • History

In the event the referee fails to render a decision at the termination of any bout, the club shall deliver payment checks covering such bout to the commission representative for determination of payment to boxers and their managers.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18854 and 18860, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

Article 4. Conduct of Promotions

§240. Approval of Contestants.

Note • History

(a) All boxing contests shall be approved by the executive officer or his designee. Main event contracts shall be placed on file with the commission for approval at least 72 hours prior to the event unless an exception is made by the executive officer or his designee. Contracts for all other boxers contending on the card shall be filed prior to the scheduled weigh-in time for the event unless an exception is made by the executive officer or his designee. No promoter may release the names of contestants to the media or otherwise publicize a contest unless a contract has been executed between the parties and the contest is approved by the executive officer or his designee.

(b) The grounds for denial of a promoter's request to hold a boxing contest are as follows:

(1) The failure of the promoter or any person connected with the promotion and under the jurisdiction of the commission to comply with any statute or rule regulating boxing in California.

(2) The contest would tend to be a mismatch based on the record, experience, skill and condition of the contestants.

(3) The commission does not have adequate staff to enforce the statutes and rules regulating boxing enacted and adopted to protect the health, safety and welfare of the participants and consumers and guarantee the collection of revenue due to the state from the contest and all ancillary rights incidental thereto.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641, 18642, 18661 and 18665, Business and Professions Code.

HISTORY

1. Amendment filed 4-12-85; effective thirtieth day thereafter (Register 85, No. 15).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

§241. Approval of 12- or 15-Round Contests.

Note • History

No club may schedule or advertise a 12-round contest or a 15-round championship boxing contest without written approval of the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18720, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§242. Number of Rounds Scheduled.

Note • History

Clubs shall not schedule less than 26 rounds of boxing, nor more than 40 rounds, except with the approval of the commission for any one program. A standby bout shall be provided in the event an arranged card breaks down, and if it is necessary to put on another bout in order to meet the minimum requirement.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18725, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§243. Matches by Whom Made.

Note • History

No match shall be made on behalf of any club or promoter except by the promoter, or a licensed matchmaker or assistant matchmaker.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18641, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§246. Postponement.

Note • History

If, through inclement weather (in case of any outdoor show) or other happening not within the control of the club, a postponement becomes necessary, the commission may grant an extension of the contracts and set a new date, and the action of the commission if a show called off shall be binding upon all parties to the contracts. A small advance sale shall not be regarded as legitimate reason for a postponement. Indoor boxing shows shall not be canceled for any reason except with the written approval of the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Change without regulatory effect amending section and Note filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§247. Notice of Change in Program.

Note • History

Notice of any change in announced or advertised programs for any main event boxing contest shall be filed with the commission and the press at least 24 hours before the contest. Notice of such change or substitution shall also be conspicuously posted at the box office, and announced from the ring before the opening contest. If any of the patrons desire to have the price of their tickets refunded, such refund shall be made immediately if the tickets or the ticket stubs are presented at the box office. The box office shall remain open a reasonable length of time to redeem such tickets.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Change without regulatory effect amending Note filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§248. Substitutions.

Note • History

Substitutions shall not be permitted in a main event contest except in cases of emergency where the commission finds such action is justified and then only where the substitute has been approved by the commission in accordance with these rules.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Repealer and new section filed 6-11-84; effective thirtieth day thereafter (Register 84, No. 24).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

3. Change without regulatory effect amending Note filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§249. Substitute Boxers.

Note • History

If a substitute boxer who is requested to appear at any club for any show is not used, he shall be used on the next succeeding show staged by the club or shall be reimbursed by the club for training expenses and transportation.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Change without regulatory effect amending Note filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§252. Solicitation in Arena.

Note • History

No soliciting of any kind by any individual or organization shall be allowed in any boxing arena without the written permission of the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18641, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Change without regulatory effect amending section and Note filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§253. Drinks.

Note • History

Clubs shall be responsible to see that all drinks are dispensed in paper cups.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§254. Introduction from Ring.

Note • History

No person other than a boxer or person officially identified with the sport, shall be introduced from the ring, except with specific authority from the commission representative.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Change without regulatory effect amending section filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

Article 5. Control of Sales; Revenue

§260. Approval of Sale of Tickets.

Note • History

The sale of tickets to an event is prohibited until there is a current seating plan on file with the commission applicable to the event's arena. Any change in the seating plan submitted also shall be filed prior to the sale of any tickets intended for use with the changed arrangement.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641, 18661, 18665 and 18700, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§261. Complimentary Tickets.

Note • History

(a) No club or employee shall sell complimentary tickets.

All clubs shall be held responsible for the actions of their employees in this connection.

(b) A complimentary ticket is a priced flat ticket for which no charge is made. Complimentary tickets shall be overstamped with the wording “Complimentary--Not to be sold” on the printed face of the ticket. The overstamp shall include the stub end of the ticket retained by the ticket holder. The promoter shall retain a clipped end of each complimentary ticket in the box-office.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18824, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§262. Courtesy Passes. [Repealed]

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18824 and 18872, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer filed 6-15-2011; operative 7-15-2011 (Register 2011, No. 24).

§263. Ancillary Rights.

Note • History

Whenever a club, promoter, matchmaker, assistant matchmaker or anyone else acting for or under the management or control of the club is negotiating for the sale, lease, transfer, or other exploitation of broadcasting and television rights of a contest, match, or exhibition, the club shall file with the commission no later than three days before the contest, match or exhibition a copy of any and all contracts which exist at the time for the sale, lease, transfer, or other exploitation of such rights. If no such contract is in existence at that time then the club shall file a statement under penalty of perjury setting forth the gross price or value which the club reasonably anticipates receiving directly or indirectly for such rights.

In addition to suspension, revocation, or fine, if a club violates this rule, the commission or its duly authorized representative may withhold from the club's gross receipts sufficient funds to cover any taxes which may reasonably be anticipated to be due pursuant to Section 18824 of the code.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18824, Business and Professions Code.

HISTORY

1. Change without regulatory effect (Register 87, No. 5).

§264. Admission of Employees, Press, Commission Members.

Note • History

No person other than a representative of a commission shall have the right of admission without a ticket for value or complimentary ticket or pass.

For purposes of computing whether the total number of complimentary tickets exceeds thirty-three percent (33%) of the total number of spectators pursuant to Section 18824, a complimentary ticket issued to any person listed below shall be excluded from the calculation of the thirty-three percent (33%) threshold.

(a) Bona fide employees of the management of the club and municipal or county officers on official business. Bona fide employees are:

(1) Those persons, including directors and officers, regularly employed by, or under contract to, the club or regularly engaged in work in business transacted there, when their duties require admission to the place, and when on duty at the time admitted; and

(2) Other persons whose admission to the place is required for the performance of some duty to, or work for, the management of the club.

(b) Newspaper reporters, photographers, telegraphers, and radio announcers, assigned to work by their recognized employers or superiors, policemen and firemen in uniform and on duty, and persons of similar vocation who are admitted with a complimentary ticket to any club for the performance of special duties in connection with any event and whose special duties are the sole reason for their presence and free admission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641 and 18824, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Editorial correction of NOTE (Register 90, No. 21).

3. New second paragraph, amendment of subsections (a), (a)(1) and (b), and repealer of subsection (c) filed 11-12-96; operative 12-12-96 (Register 96, No. 46).

4. Change without regulatory effect amending first two paragraphs filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§266. Printing of Tickets.

Note • History

All tickets shall have the price, the name of the club and date of show printed or date stamped plainly thereon.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Change without regulatory effect amending Note filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§267. Reduced Price Tickets.

Note • History

Any ticket for a boxing event sold for less than the printed price thereon shall be overstamped with the actual price charged. The overstamp shall be placed on the printed face of the ticket as well as the stub retained by the ticket holder.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Change without regulatory effect amending Note filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§268. Color of Tickets.

Note • History

Tickets of different prices shall be printed on cardboard of different colors. Use of passout tickets is prohibited unless the club receives written permission from the commission to use them.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§269. Ticket Inventories.

Note • History

Promoters shall use only tickets from a printer approved by the commission or its authorized representative. Printers shall send by mail to the district office and to the Sacramento commission office a sworn inventory of all tickets delivered to any club. This inventory shall account for any overprints, changes or extras, and a printer's sample shall be attached. Promoters shall notify printers of this requirement.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18872, Business and Professions Code.

HISTORY

1. Amendment filed 4-12-85; effective thirtieth day thereafter (Register 85, No. 15).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

§271. Exchanges.

Note • History

No exchange of tickets shall be made except at the box office, and no ticket shall be redeemed after the show has taken place. Tickets in the hands of agencies shall be returned to the box office not later than one hour after the show has started.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18824, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§272. Refunds.

Note • History

Every club holding either boxing or martial arts matches shall have printed on the stub of every ticket sold the following statement:

“Retain this coupon in event of postponement or cancellation. Refund $________.”

The price paid for the ticket shall be printed in the foregoing blank space, and the coupon detached and returned to the ticket holder at the entrance gate. This coupon check shall also show the name of the club and date of the contest or exhibition, and shall be redeemed at its face value by the club upon presentation by the purchaser if the advertised main event is postponed or does not take place as advertised. The surety bond shall be conditioned upon the compliance by the club with the provisions of this rule.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18681, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§273. Ticket Stubs.

Note • History

Under no circumstances shall a ticket holder be passed through the gate without having the ticket separated from the stub, or be allowed to occupy a seat unless in possession of the ticket stub. The ticket taker at the door shall separate the ticket from the stub and deposit the ticket in the locked ticket box provided.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18824, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§274. Seats to Correspond to Tickets.

Note • History

Ushers shall see that spectators get the seats corresponding with their ticket stubs, and that anyone occupying such seat unlawfully be asked to vacate, and if necessary be ejected.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§276. Counting Tickets.

Note • History

The commission representative shall check numbers and places of ticket cans at gates and cause them to be sealed and padlocked, and after the show have them opened and tickets counted under his supervision.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18825 and 18872, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§277. Destruction of Tickets.

Note • History

Tickets and stubs of every description sold or unsold, other than unsold reel tickets, used for any boxing contest or wrestling exhibition shall be removed to the commission district office for audit, if necessary, by a representative of the commission after the promoter and representative have completed computation of gate receipts and taxes due thereon. In the event tickets are not taken by a commission representative they shall be retained by the promoters for a period not to exceed six months. Such tickets may be destroyed after they have been held for at least 30 days and written permission has been granted by the commission for the destruction of such tickets. Tickets shall be kept in separate packages for each show in order that an audit can be made at any time by the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18825, 18826 and 18872, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Editorial correction restoring inadvertently omitted Authority and Reference cites and History (Register 95, No. 8).

§278. Show Reports.

Note • History

Every club shall when applicable, submit within 72 hours after the determination of every contest, match or exhibition for which an admission fee is charged and received, the following reports and documents on forms approved by the commission for each promotion it conducts or holds:

(a) Contracts between club and boxers.

(b) Club report of tax.

(d) Itemized and specific statement under penalty of perjury showing the number of tickets issued or sold, the amount of the gross receipts of

value thereof, and the gross price charged directly or indirectly and no matter by whom received for the sale, lease, transfer, or other exploitation of broadcasting and television rights, and the name and business address of the person or entity from whom value has been received for the sale, lease, transfer, or other exploitation of such rights.

(e) A written contract setting forth the gross price charged directly or indirectly, and no matter by whom, received for the sale, lease, transfer, or other exploitation of broadcasting and television rights, and the name and business address of the person or entity from whom value has been received for the sale, lease, transfer, or other exploitation of such rights. No oral contracts shall be accepted by the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18824 and 18832, Business and Professions Code.

HISTORY

1. New subsection (e) filed 6-17-85; effective thirtieth day thereafter (Register 85, No. 25).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

§279. Videotaping.

Note • History

(a) A promoter or his, her or its agent or employee shall obtain the name, address and telephone number of any person who records all or part of a boxing contest on videotape. As a condition to granting permission to videotape a boxing contest, a promoter shall also obtain the consent of such a person to obtain a copy of any videotape made of the contest if necessary to comply with a request made by the commission under subs. (b) for a copy of videotape.

(b) If requested by the commission, a promoter shall be responsible for providing the commission with a copy of any available videotape or other reproduction of a boxing contest which is made with the permission of the promoter. Such a request shall be made by the commission within 30 days after the date of the contest. The promoter shall comply with the request within 30 days of the date on which the commission's request is postmarked.

NOTE

Authority cited: Section 18611 Business and Professions Code. Reference: Sections 18640, 18824 and 18825, Business and Professions Code.

HISTORY

1. New section filed 10-24-90; operative 11-23-90 (Register 90, No. 47).

Article 6. Physical Examinations and Safety

§280. Examination of Boxer Applicants.

Note • History

(a) Any boxer applying for a license or renewal thereof shall be examined by a physician currently licensed by this state to establish both physical and mental fitness for competition. Such examination shall be taken at such time as directed by the commission. Any boxer licensed by the commission who participates in a boxing match or contest outside the State of California may be required, upon his return to California, to again take this examination before being allowed to box in California. The results of such contests shall be reported to the nearest commission office by the licensee within 72 hours of his return to California.

(b) An examination of an applicant or licensee may be accepted by the commission if it is performed by a physician authorized to perform such examinations by the state or nation in which the examination is conducted and if it is conducted in accordance with commission instructions, including the use of applicable forms prescribed by the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18642, 18661 and 18711, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§281. Physical Condition of Boxer.

Note • History

(a) With respect to Section 18642.5 of the code, the commission shall evaluate an applicant's or licensee's fitness for licensure as a boxer based on the totality of the person's physical condition, taking into account the following indicators:

(1) Under the age of 18

(2) Actual age

(3) Number of bouts

(4) Number of rounds fought

(5) Number of hard fights

(6) Number of identified injuries

(7) Number of knockouts suffered within the last 12 months, including particularly those where the contestant lost consciousness

(8) Periods of inactivity in excess of 12 calendar months

(9) Ring record for the past twenty-four months

(10) Weight, including fluctuations in weight

(11) Whether the person is missing all or part of a limb.

(b) No license shall be issued to any applicant for a boxer's license who does not meet the vision requirements of Rule 282.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18642, 18642.5 and 18710, Business and Professions Code.

HISTORY

1. Amendment filed 12-17-86; effective thirtieth day thereafter (Register 86, No. 51).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

3. Amendment of section heading, repealer of subsection (a) and subsection relettering filed 1-19-99; operative 1-19-99 pursuant to Government Code section 11343.4(d) (Register 99, No. 4).

4. New subsections (a)-(a)(11), subsection relettering and amendment of Note filed 4-6-2009; operative 4-6-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 15).

§282. Vision Requirements.

Note • History

The commission shall deny, suspend, revoke, or place restrictions on the license of a professional or amateur boxer if it determines that the applicant or licensee cannot safely engage in boxing activities because of a visual condition, including but not limited to one of the following:

(a) Uncorrected visual acuity of less than 20/200 in either eye or 20/60 with both eyes;

(b) Corrected visual acuity of less than 20/60 in either eye, regardless of its cause;

(d) Presence or history of retinal detachment or retinal tear unless treated by an ophthalmologist and then approved by an ophthalmologist specified by the commission who then assesses that the boxer is at no significant risk of further injury to the retina if boxing is resumed. Such assessment shall occur both within five days before and five days after the contest;

(e) Presence of primary or secondary glaucoma, whether or not such condition has been treated;

(f) Presence of aphakia, pseudophakia or dislocated lens in either eye;

(g) Any other visual condition which the commission determines would prevent the applicant or licensee from safely engaging in boxing activities.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18642, 18643, 18661 and 18714, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-28-91; operative 11-27-91 (Register 93, No. 4).

3. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§283. Ability to Perform.

Note • History

Before a license is issued to any boxer, the boxer shall satisfy the commission that the boxer has the ability to compete. If at any time a boxer's ability to perform is questionable, whether from reasons of health, mental condition or no longer possessing the ability to compete or for any other reason, the commission may, upon being satisfied of the boxer's lack of ability to perform, retire the boxer from further competition.

Any applicant for a boxer's license or a renewal thereof shall furnish a verified record of the applicant's last six boxing contests.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18642, 18643, 18661, 18714 and 18840, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§285. Examination Ordered by Commission.

Note • History

Any boxer who has been signed to a contract to box at any club may be ordered by the commission to appear at any time to be weighed by a commission representative.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18641, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§286. Report of Illness.

Note • History

Whenever a licensed boxer is unable because of injuries or illness to take part in a contest for which he is under contract, he (or his manager) shall immediately report that fact to the commission, and the boxer shall be required to submit to an examination by a physician designated by the commission. The examination fee of the physician shall be paid by the boxer, except if the club has requested an examination, it shall pay the cost thereof.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18642 and 18710, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§287. Physicians; Certification of Physicians.

Note • History

The commission shall certify each year a list of commission-approved physicians who will be appointed by the commission as ringside physicians at each boxing match. The list of certified physicians shall be available in the headquarters and district offices of the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18705 and 18706, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§288. Ringside Physicians.

Note • History

Ringside physicians shall meet all of the following criteria:

(a) The physician shall possess a current and unrestricted license issued by the Medical Board of California or the Board of Osteopathic Examiners.

(b) A physician who has not previously been a ringside physician shall hold staff privileges in medicine, surgery, or emergency medicine in a general acute care facility accredited by the Joint Commission on Accreditation of Health Organizations.

(c) A physician who has not previously been approved as a ringside physician shall attend at least two ringside physician training clinics which are sponsored by the commission.

(d) A physician who has not previously been approved as a ringside physician shall be precepted at six (6) contests by a ringside physician, and receive a satisfactory evaluation on at least five (5) of the precepted contests. The preceptee may act as the second physician in attendance at a contest.

(e) “Ringside physician,” as used in this section, means a physician who is approved by the commission to attend boxing and martial arts contests as required by Section 18705 of the code.

NOTE

Authority cited: Sections 18611 and 18705.5, Business and Professions Code. Reference: Sections 18705 and 18705.5, Business and Professions Code.

HISTORY

1. New section filed 10-28-91; operative 11-27-91 (Register 93, No. 4).

2. Amendment of subsection (e) filed 6-15-2011; operative 7-15-2011 (Register 2011, No. 24).

§289. Medical Insurance. [Repealed]

History

HISTORY

1. Repealer filed 4-12-85; effective thirtieth day thereafter (Register 85, No. 15).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

§290. Medical Insurance for Professional Boxers.

Note • History

(a) A promoter shall maintain a short-term medical assistance insurance program, approved by the commission, for professional boxers with whom it contracts for bouts to be conducted in California or shall qualify such boxers for a program which has been approved by the commission. The cost of such insurance program or coverage shall be set forth in the contract between the boxer/manager and the promoter. The promoter shall be responsible for paying any deductible amounts.

(b) “Short term medical assistance insurance,” as used in this section, refers to direct expenses of medical treatment, including emergency aid, medical treatment, drugs, operations and physical therapy, arising directly from injuries incurred during a boxing contest in California which has been approved by the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641, 18642 and 18643, Business and Professions Code.

HISTORY

1. Amendment filed 4-12-85; effective thirtieth day thereafter (Register 85, No. 15).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

§292. Sanitation.

Note • History

All clubs are held responsible for and shall correct any violation of commission rules or applicable local health department requirements regarding sanitary conditions of dressing rooms, showers, water bottles, towels or other equipment.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18700 and 18714, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§293. Examination Facilities.

Note • History

Ringside physicians shall have dressing rooms and facilities which meet the requirements of Rule 292 in which to make their examinations.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18714 and 18776, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Change without regulatory effect amending section filed 12-16-94 pursuant to section 100, title 1, California Code of Regulations (Register 94, No. 50).

3. Amendment filed 8-30-2010; operative 9-29-2010 (Register 2010, No. 36).

§294. Emergency Equipment and Access Required.

Note • History

The club shall ensure that an ambulance staffed by at least one paramedic is available at the site during a show and after a show until released by a ringside physician. The club shall also ensure that there is adequate access, as determined by a commission representative and a ringside physician on a case-by-case basis, for a medical evacuation should that become necessary.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18705 and 18706, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment of section heading and section filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

3. Amendment of section heading and section filed 6-12-2002; operative 7-12-2002 (Register 2002, No. 24).

§295. Only Authorized Persons in Dressing Rooms.

Note • History

No one shall be allowed in the boxers' dressing rooms except their manager, seconds, news media, and commission or club representatives. The club management shall furnish a doorman in dressing rooms to enforce this rule.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§297. Weighing Time.

Note • History

Contestants shall be weighed within 24 hours of the scheduled match, at a time and place designated by the commission, in the presence of a commission representative on scales approved by the commission. A club may obtain advance written permission of the commission to allow preliminary boxers to weigh in and be examined not later than one hour before the scheduled time of the first match on the card. All weights shall be taken with the contestants stripped.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18728, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§298. Weights and Classes.

Note • History

(a) Strawweight/Mini Flyweight 105 pounds and under

Light Flyweight/Junior Flyweight over 105 pounds to 108 pounds

Flyweight over 108 to 112 pounds

Super Flyweight/Junior Bantamweight over 112 to 115 pounds

Bantamweight over 115 to 118 pounds

Super Bantamweight/Junior Featherweight over 118 to 122 pounds

Featherweight over 122 to 126 pounds

Super Featherweight/Junior Lightweight over 126 to 130 pounds

Lightweight over 130 to 135 pounds

Super Lightweight/Junior Welterweight over 135 to 140 pounds

Welterweight over 140 to 147 pounds

Super Welterweight/Junior Middleweight over 147 to 154 pounds

Middleweight over 154 to 160 pounds

Super Middleweight over 160 to 168 pounds

Light Heavyweight over 168 to 175 pounds

Cruiserweight over 175 to 195 pounds

Heavyweight over 195 pounds

(b) No contest shall be scheduled, and no contestants shall engage in a boxing contest where the weight difference exceeds the allowance as shown in the following schedule, without the written approval of the commission. In the event contestants are in different weight classes the weight difference allowance shall be that for the lower class.

118 lbs. and under not more than 3 pounds

119 lbs.-126 lbs. not more than 5 pounds

127 lbs.-135 lbs. not more than 7 pounds

136 lbs.-147 lbs. not more than 9 pounds

148 lbs.-160 lbs. not more than 11 pounds

161 lbs.-175 lbs. not more than 12 pounds

176 lbs. and over no limit

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18728 and 18733, Business and Professions Code.

HISTORY

1. Amendment filed 12-17-96; effective thirtieth day thereafter (Register 86, No. 51)

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§300. Time for Examinations.

Note • History

A thorough physical and eye examination shall be given each contestant by the commission-appointed physician at least one hour before the contestant enters the ring to compete. Referees also shall be given physical examinations immediately before officiating at any match.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18705 and 18706, Business and Professions Code.

HISTORY

1. Amendment filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

2. Change without regulatory effect of NOTE (Register 87, No. 5)

3. Amendment filed 6-15-2011; operative 7-15-2011 (Register 2011, No. 24).

§301. Rejection and Reports.

Note • History

Should any contestant examined prove unfit for competition or any referee unfit for officiating, the contestant or referee shall be rejected and immediate report of that fact made to the club and the commission representative.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641, 18705, 18706 and 18841, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

§302. Continuous Presence of Physician.

Note • History

A minimum of two (2) commission-appointed physicians shall have seats at the immediate ringside at all boxing matches. No bout shall be allowed to proceed unless one (1) of the physicians is seated at ringside. The physicians shall not leave until after the decision in the final bout. They shall be prepared to assist if any serious emergency shall arise, and shall render temporary or emergency treatments for cuts and minor injuries sustained by the contestants.

No manager or second shall attempt to render aid to a boxer during the course of a round before the ringside physician has had an opportunity to examine the boxer who may have been injured. Time out shall be called for such examination.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641 and 18705, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment of section and Note filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§303. Administration or Use of Drugs.

Note • History

(a) The administration or use of any drugs, alcohol or stimulants, or injections in any part of the body, either before or during a match, to or by any boxer is prohibited.

(b) A person who applies for or holds a license as a professional boxer and who has at any time had a positive drug test confirmed by any commission for any substance described in subsection (c) shall be required as a condition of licensure or renewal to provide a urine specimen. In addition, a licensed boxer shall provide a urine specimen for drug testing either before or after the bout, as directed by the commission representative.

(c) A positive test (which has been confirmed by a laboratory utilized by the commission) for any of the following substances shall be conclusive evidence of a violation of subsection (a):

(1) Stimulants

(2) Narcotics

(3) Cannabinoids (marijuana)

(4) Anabolic agents (exogenous and endogenous)

(5) Peptide hormones

(6) Masking agents

(7) Diuretics

(8) Glucocorticosteroids

(9) Beta-2 agonists (asthma medications)

(10) Anti-estrogenic agents

(11) Alcohol

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

2. Amendment filed 4-6-2009; operative 4-6-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 15).

§304. Monsel's Solution.

Note • History

The use during a boxing match of Monsel's Solution, or any similar drug or compound for the stopping of hemorrhage in the ring, is prohibited. Only preparations approved by the commission may be used to stop hemorrhage in the ring.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

2. Change without regulatory effect amending Note filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§305. Contestants' Appearance.

Note • History

All contestants shall be clean and present a tidy appearance. It shall be at the sole discretion of the commission or its representative to determine whether facial adornments (mustaches, goatees, excessive sideburns) and length of hair presents any potential hazard to the safety of the contestant or his or her opponent, or will interfere with the supervision and conduct of the contest. The excessive use of petroleum jelly or other similar substances shall not be permitted and such substances shall be applied to the face only. Referees or the commission representative in charge shall cause any such excessive substance to be removed.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§306. Boxers' Equipment.

Note • History

(a) The ring costume for each boxer on a program shall be approved by the commission, and shall include two pair of trunks, shoes, and a custom-made individually fitted mouthpiece. The commission staff shall not approve ring costumes that are so similar as to possibly cause confusion as to the identity of the contenders.

(b) In addition to the items described in subsection (a), the costume for each male boxer shall include an abdominal guard that does not extend above the boxer's hipline.

(c) In addition to the items described in subsection (a), the costume for each female boxer shall also include a breast protector and body shirt.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18725, Business and Professions Code.

HISTORY

1. Amendment filed 4-12-85; effective thirtieth day thereafter (Register 85, No. 15).

2. Change without regulatory effect of NOTE (Register 87, No. 5)

3. Amendment filed 2-29-2000; operative 3-30-2000 (Register 2000, No. 9).

§307. Report of Injury.

Note • History

All club physicians shall report on the physician's report all cases where boxers or wrestlers have been injured during a bout, or have applied for medical aid after a contest.

A boxer who has suffered a knockout or any other serious injury, whether or not arising from boxing, and who has been treated for such injury by his personal physician or has been hospitalized, shall, with his manager, promptly submit to the commission a full report from the physician.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641, 18705, 18706 and 18710, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

§308. Suspension for Disability.

Note • History

Any licensee rejected by an examining physician shall be suspended until it is shown that he is fit for further competition or officiating.

Any boxer suspended for 30 days for his medical protection or when he has been suspended for a hard fight, shall take the same examination as required for the annual physical examination except as directed by the commission. The physician may require any other diagnostic procedures including an electroencephalogram or CAT scan if indicated.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641, 18642, 18705, 18706, 18710, 18714, 18841 and 18842, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

§309. Time Between Bouts.

Note • History

Unless written approval is obtained from the commission, a boxer who has competed anywhere in a bout of four rounds or less shall not be allowed to box in this State until two days have elapsed. Four days shall elapse after a six-round bout, five days after an eight-round bout, six days after a 10-round bout, seven days after a 12-round bout and ten days after a 15-round bout.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18714, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

Article 7. Ring and Equipment

§310. Ring.

Note • History

The ring shall be not less than 17 feet square within the ropes. The ring floor shall extend beyond the ropes not less than 18 inches. The ring floor shall be padded in a manner as approved by the commission. Padding must extend beyond the ring ropes and over the edge of the platform.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18724 and 18725, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

2. Change without regulatory effect amending section filed 12-16-94 pursuant to section 100, title 1, California Code of Regulations (Register 94, No. 50).

§311. Height of Ring.

Note • History

The ring platform shall not be more than four feet above the floor of the building, and shall be provided with suitable steps for use of contestants. Ring posts shall be of metal, not more than four inches in diameter, extending from the floor of the building to a height of 58 inches above the ring floor, and shall be properly padded.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18724 and 18725, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

§312. Ring Ropes.

Note • History

Ring ropes shall be at least four in number, not less than one inch in diameter; the lower rope 18 inches above the ring floor, the second rope 30 inches above the floor, the third rope 42 inches above the floor, and the fourth rope 54 inches above the ring floor. The lower rope shall have applied around it a padding of a thickness of not less than one-half inch and of a type and construction to be approved by the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18724 and 18725, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

2. Amendment filed 11-16-92; operative 12-16-92 (Register 92, No. 47).

§313. Ring Equipment. [Repealed]

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18724 and 18725, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

2. Repealer filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§314. Alternate Ring Specifications.

Note • History

Notwithstanding Rules 310 through 312, the commission may, after inspecting a ring, permit a club to hold professional boxing matches in a ring that it determines meets the specifications prescribed in Rule 523, except that subsection (d)(1) permitting a contest to be held in a ring enclosed by a fence shall not apply to boxing contests and the commission shall not permit a boxing contest to be held in a ring enclosed by a fence. A club shall not hold any professional boxing match in a ring described in Rule 523 until it has received written approval by the commission indicating that the ring has been inspected and meets the criteria set forth in that rule.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18724 and 18725, Business and Professions Code.

HISTORY

1. New section filed 4-6-2009; operative 4-6-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 15).

§318. Gloves.

Note • History

(a) Gloves shall be examined by the commission representative and the referee. If padding is found to be misplaced or lumpy, or if gloves are found to be imperfect or clearly ill-fitting, they shall be changed before the contest starts. No breaking, skinning, roughing or twisting of gloves shall be permitted.

(b) Gloves for all main events shall be new, furnished by club management, and so made as to fit the hands of any contestant whose hands may be unusual in size.

(c) If gloves used in preliminary bouts have been used before, they shall be whole, clean, in sanitary condition and subject to inspection by the referee or commission representative as to condition. Any such gloves found to be unfit shall be immediately discarded and replaced with gloves meeting the above requirements.

(d) All clubs shall have on hand an extra set of eight-ounce and an extra set of ten-ounce gloves to be used in case gloves are broken or in any way damaged during the course of a bout. These extra sets of gloves will be placed in the custody of the commission representative at ringside.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18723 and 18725, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

2. New subsection (a) designator, renumbering of former section 319 to new subsection (b), renumbering of former section 320 to new subsection (c), renumbering and amendment of former section 321 to new subsection (d) filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§319. Gloves--Main Event. [Repealed]

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18723 and 18725, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

2. Renumbering of former section 319 to section 318(b) filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§320. Gloves--Preliminaries. [Repealed]

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18723 and 18725, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

2. Renumbering of former section 320 to section 318(c) filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§321. Gloves--Extra Set. [Repealed]

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18723 and 18725, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

2. Renumbering and amendment of former section 321 to section 318(d) filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§322. Gloves--Weight.

Note • History

Contestants in all weights up to and including the welterweight class shall wear no less than eight-ounce gloves. In heavier classes, contestants shall wear no less than ten-ounce gloves.

When two contestants differ in weight classes, the contestants shall wear the gloves required for the higher weight classification.

All gloves must be approved by the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18723 and 18725, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§323. Bandages.

Note • History

Bandages shall not exceed the following restrictions:

One winding of surgeon's adhesive tape, not over one and one-half inches wide, placed directly on the hand to protect that part of the hand near the wrist. Said tape may cross the back of the hand twice but shall not extend within one inch of the knuckles when hand is clenched to make a fist.

Contestants shall use soft surgical bandage not over two inches wide, held in place by not more than ten yards of surgeon's adhesive tape for each hand. Not more than twenty yards of bandage may be used to complete the wrappings for each hand.

Bandages shall be applied in the dressing room in the presence of a commission representative and both contestants. Either contestant may waive his privilege of witnessing the bandaging of his opponent's hands.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18714, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

2. Amendment filed 4-6-2009; operative 4-6-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 15).

§327. Gong or Bell.

Note • History

There shall be a bell or gong at the ring no higher than the floor level of the ring. The bell or gong shall be of a clear tone so that the contestants may easily hear it.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18725, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

§328. Equipment.

Note • History

Timekeepers shall provide themselves with such equipment as prescribed by the commission and shall carry out such duties as directed by the commission representative.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18725, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

Article 8. Conduct of the Bout

§330. Officials.

Note • History

The officials referred to in Section 18735 of the code shall consist of referees, judges, timekeepers, announcers, physicians in attendance at a contest or exhibition at the commission's direction in accordance with Section 18705 of the code, physicians appointed by the commission to perform any examination of boxers for licensure purposes or under Section 18711 of the code, and commission representatives. The referees, judges, physicians described in this section, commission representative and timekeepers shall be assigned by the commission.

The club may, with the approval of the commission, select the announcers at boxing contests or exhibitions held under the auspices of the club.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641, 18705, 18711 and 18735, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

2. Amendment filed 3-2-90; operative 4-1-90 (Register 90, No. 10).

3. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§332. Contestants Must Report.

Note • History

Contestants shall report to the commission representative in charge of dressing rooms at least one hour before the scheduled time of the first match.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5)

2. Change without regulatory effect amending Note filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§334. Persons Allowed in Ring.

Note • History

No persons other than the contestants and the referee may be in the ring during the progress of a round.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Change without regulatory effect amending Note filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§335. Referee--Instruction.

Note • History

The referee shall call contestants together, either in the ring or in another appropriate location before each bout for final instructions, at which time each contestant shall be accompanied by his or her designated chief second only.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

3. Change without regulatory effect amending Note filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§337. Fouls in Boxing.

Note • History

(1) Hitting below the hip line.

(2) Hitting an opponent who is down, is getting up after being down or who is hanging helplessly over the ropes.

(3) Holding an opponent with one hand and hitting with the other.

(4) Excessive holding or deliberately maintaining a clinch.

(5) Wrestling, kicking, or biting.

(6) Grabbing and/or holding the ropes.

(7) Butting with the head or shoulder.

(8) Hitting with the open glove, or with the butt of the hand, the wrist, the forearm, the elbow, the knee, and all backhand blows.

(9) Deliberate use of the rabbit punch (hitting behind the head).

(10) Striking deliberately at that part of the body over the kidneys.

(11) Spinning and hitting.

(12) Excessive taunting, abusive language or gestures.

(13) Any unsportsmanlike act.

(14) Hitting on the break.

(15) Hitting after the bell has sounded ending the round, including the last round.

(16) Hitting an opponent who is entangled in the ropes.

(17) Pushing an opponent.

(18) Continuous dropping of the mouthpiece.

(19) Striking a blow during intervention by the referee under Rule 349.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§338. Intentional Fouling.

Note • History

(a) In the case of an intentional foul, the referee may interrupt the bout for the purpose of allowing the injured boxer time to recover.

(b) Any boxer guilty of an intentional foul shall be penalized one or more points as determined by the referee. If the injured boxer is unable to continue, the offending boxer shall be disqualified, his or her purse may be withheld, and he or she may be subject to suspension. Disposition of the purse and the penalty to be imposed upon the boxer shall be determined by action of the commission or the commission's representative.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18738, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§339. Unintentional Fouling.

Note • History

(a) When a bout is interrupted due to an injury caused by an unintentional foul, the referee in consultation with the ringside physician shall determine whether the boxer who has been fouled can continue or not. If the referee sees, or if after consultation with the judges, determines that a boxer is unintentionally fouled and if the boxer's chance of winning has not been seriously jeopardized as a result of a foul, the referee may order the bout continued after a reasonable interval.

(b) If the referee and/or the ringside physician determine that the bout may not continue because of an injury suffered as the result of an unintentional foul or because of an injury inflicted by an unintentional foul which later becomes aggravated by fair blows, the bout must be declared a draw if the bout is stopped before the bell rings to begin the fourth round. After the bell rings to begin the fourth round, the outcome shall be determined by scoring the completed rounds and the round during which the referee or ringside physician stopped the bout.

(c) When an unintentional foul causes the bout to be interrupted for the purpose of allowing the injured boxer time to recover, the referee shall penalize the boxer guilty of the foul one or more points.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18733, 18855, and 18860, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer and new subsections (a)-(c) filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§340. Method of Scoring When There Is an Injury Not Resulting from a Foul.

Note • History

(a) If the referee determines that the injured fighter was responsible for his own injury, the referee will not penalize his opponent in any manner. In this case, if the referee or ringside physician determines that the injured fighter is unable to continue, he will lose by “technical knockout.”

(b) If the referee determines that no fault was attributable to either fighter, the referee shall allow the injured fighter reasonable recovery time, not to exceed 5 minutes. If, at the end of the recovery period, the referee or the ringside physician determines that the injured fighter cannot continue, the bout will be decided on the score cards if the bell has rung to begin the fourth round or, if the bell has not rung to start the fourth round, the bout will be called a technical draw.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18733, Business and Professions Code.

HISTORY

1. New section filed 6-15-2011; operative 7-15-2011 (Register 2011, No. 24). For prior history, see Register 95, No. 44.

§341. Unfair Practices Likely to Cause Injury.

Note • History

Referees shall not permit unfair practices that may cause injuries to a contestant, and are held strictly responsible for the enforcement of the rules. The only fair blow is a blow delivered with the padded knuckle part of the glove on the front or sides of the head and body above the hip line. After sufficient warning has been given the referee shall punish persistent disregard of the rules.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18730 and 18738, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§342. Penalizing Contestant.

Note • History

The referee may penalize any contestant who fouls his or her opponent during a contest, by charging such contestant with the loss of points, whether such foul or fouls be intentional or unintentional. However, the referee shall use his or her own discretion in determining the number of points, if any, chargeable against the contestant in each instance, depending upon the severity or harmlessness of the foul and its effect upon the opponent. The referee shall, at the time of the infraction, inform each judge and the supervising commission representative of the nature of the foul, the identity of the offending boxer and the number of points deducted. At the conclusion of the round, the referee shall verify with the judges the identity of the boxer causing the foul and the number of points deducted in accordance with the referee's determination.

When necessary to deduct points because of fouls or other infractions of the rules, the referee shall warn the offender and at the end of the round notify both contestants of any penalties which may be assessed against either boxer.

Points deducted for any foul or infraction of the rules shall be deducted in the round in which they occur. No boxer shall be penalized in a later round by virtue of a previous foul or infraction of the rules.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18730, 18733 and 18855, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§345. The Referee Shall Have Power to Stop Contest.

Note • History

The referee shall have the power to stop a contest at any stage if he or she considers it too one-sided, or if either contestant is in such condition that to continue might subject him or her to serious injury, and in either case to render a decision in the manner prescribed by Rule 339.

Regardless of any examination by the ringside physician, if a boxer unequivocally manifests an intent to stop fighting, the referee shall immediately stop the contest. If the referee is unclear whether the boxer intends to stop fighting, then the referee shall ask the boxer if the boxer wishes to stop fighting and if the response is affirmative, then the referee shall immediately stop the contest.

NOTE

Authority cited: Sections 101.1 and 18611, Business and Professions Code. Reference: Sections 18640, 18730 and 18733, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 11-16-92; operative 12-16-92 (Register 92, No. 47).

3. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

4. Repealer and new second paragraph and amendment of Note filed 10-26-2006; operative 11-25-2006 (Register 2006, No. 43).

§346. Procedure Where Failure to Compete.

Note • History

In any case where the referee decides that the contestants are not honestly competing, that the knockdown is a “dive,” or the foul a prearranged termination of the bout, the referee shall not finish the knockdown count or disqualify for fouling or render a decision, but shall stop the bout not later than before the end of the last round and order purses of both boxers held pending investigation and disposition of the funds by the commission. The announcer shall inform the audience that no decision has been rendered.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18730 and 18733, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§347. Failure to Resume Boxing.

Note • History

No contestant shall leave the ring during any one minute rest period between rounds. Should any contestant fail or refuse to resume boxing when the timekeeper indicates the start of the next round, the referee may either disqualify that contestant or award a KO decision to his or her opponent as of the round which has last been finished, unless the circumstances indicate to the referee the requirement for investigation or punitive action, in which event the referee shall not give a decision and shall order withheld the purse or purses of either or both boxers.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18730, 18855 and 18865, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§349. Method of Counting over a Boxer Who Is Down.

Note • History

When the contestant is knocked down or as the result of a punch is knocked through the ropes the referee shall order the opponent to retire to a corner of the ring, pointing to the corner, and immediately pick up the count from the timekeeper. He shall audibly announce the passing of the count. No contestant who is knocked down shall be allowed to resume boxing until the referee has finished counting eight. The contestant may take the count either on the floor or standing. The timekeeper, by effective signalling, shall give the referee the correct one-second interval for his count. The referee's count is the official count.

Should the opponent fail to stay in the designated corner the referee shall cease counting until he has returned to it, and then go on with the count from the point from which it was interrupted. If the boxer who is down arises before the count of ten, the referee shall evaluate his or her ability to continue. If assured that the boxer who has just arisen is fit to continue, the referee shall without loss of time, order both boxers to go on with the contest. Should a contestant who is “down” arise before the count of “10” is reached, and go down immediately without being struck, the referee shall resume the count where it was left off.

If the contestant taking the count is still down when the referee calls the count of 10 or if in the opinion of the referee the fighter who was knocked down is in no condition to continue, the referee shall wave both arms to indicate a knockout.

If both boxers go down at the same time, counting shall be continued as long as one of them is still down. If both boxers remain down until the count of 10 the contest shall be stopped and the decision shall be a technical draw. If at the end of a round a boxer is “down” and the referee is in the course of counting, the gong indicating the end of the round will not be sounded except for the final scheduled round. The gong will be sounded only when the referee gives the command “box” indicating the continuation of the match.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18730, Business and Professions Code.3

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§350. A Boxer Shall Be Deemed “Down” When.

Note • History

A boxer shall be deemed to be “down” when any part of his body but his feet is on the floor, or if he is hanging helplessly over the ropes. A referee may count (see Counting) a contestant out either on the ropes or on the floor.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18730, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§351. When Boxer Falls or Is Knocked from Ring During Round.

Note • History

A contestant who has been wrestled, pushed, or has fallen through the ropes during a contest may be helped back by anyone and the referee shall allow a reasonable time for the return. When on the ring platform outside the ropes, the contestant shall enter the ring immediately.

Should the contestant stall for time outside the ropes, the referee shall start the count without waiting for him to re-enter the ring.

When one boxer has fallen through the ropes, the other boxer shall retire to a designated corner and stay there until ordered to continue the contest by the referee. When a boxer is knocked outside of the ropes by a legal punch, the referee shall begin the count. If at the count of eight the boxer is no longer down, he or she shall be allowed reasonable time to reenter the ring.

A contestant who deliberately wrestles or throws an opponent from the ring, or who hits him when he is partly out of the ring, and prevented by the ropes from assuming a position of defense may be penalized.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18730, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment of section heading and section filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§352. Boxers Knocked Out.

Note • History

A boxer who has been knocked out shall be kept in a prone position until the boxer has recovered. When a boxer is knocked out, no one is to touch him or her, except the referee who will remove his or her mouthpiece, until the ring physician enters the ring and personally attends to the fallen boxer, and issues such instructions as he or she sees fit to the boxer's handlers. If a boxer has been knocked out or if a technical knockout decision has been rendered against him by the referee, such boxer shall be placed on the commission's ill and unavailable list for such a period of time as may be recommended by the ringside physician or any approved commission physician who may examine him or her but such period of time shall not be less than 30 days.

A boxer shall not be permitted to engage in any contact boxing during this period without the approval of the commission physician.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18730, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment of first paragraph filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§353. Wiping Gloves and Rinsing Mouthpieces.

Note • History

(a) Before a boxer resumes boxing after having been knocked or having fallen or slipped to the floor, the referee shall wipe any accumulated debris from the boxer's gloves.

(b) When a mouthpiece is knocked out, the referee may allow the exchange to continue until there is a break in the action. Timeout shall then be called and the mouthpiece rinsed and replaced. No contestant shall be permitted to continue to box without a mouthpiece.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18730, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment of section heading and section filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§354. Warning.

Note • History

Ten seconds before the beginning and ending of each round the timekeeper shall give warning to the seconds of the contestants by suitable signal.

No second shall be in contact with the ring apron prior to the sounding of the bell ending the round.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. New second paragraph filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§356. Scorecard to Referee and Judges.

Note • History

The commission representative in charge at all boxing shows shall, before the start of each bout, give the judges and/or referees, when the latter are used as judges, a regulation scorecard. The judges shall score each round of the bout on the card and sign it. At the discretion of the commission, individual round scorecards may be used in contests and, if so used, shall be picked up at the end of each round by the referee and delivered to the ringside inspector. At the conclusion of the contest, the commission representative may then show the cards to accredited press representatives and immediately thereafter mail or deliver the score cards with the rest of his or her reports to the commission office.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18730 and 18734, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§357. Method of Scoring.

Note • History

Judges shall score all contests and determine the winner through the use of the ten point must system. In this system the winner of each round receives ten points and the opponent a proportionately less number. If the round is even, each boxer receives ten points. No fraction of points may be given.

At the termination of the round or contest, the referee shall pick up the cards of the judges. The referee shall then deliver the cards to the commission representative assigned to check and total them. The majority opinion shall be conclusive and if there is no majority then the decision shall be a draw unless otherwise determined by the referee or commission representative. When the commission representative has completed verifying and totalling the scores, the ring announcer shall be informed of the decision and shall announce the decision.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18734, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment of section heading and section filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§358. Announcing Winner.

Note • History

At the termination of all boxing bouts the winner shall be announced by the announcer and the referee shall raise the winner's hand.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640 and 18730, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§360. Abuse of Officials.

Note • History

No licensee shall verbally or physically abuse an official or commission representative.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18730, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment of section heading and section filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§361. Seconds: Number and Costume.

Note • History

Each contestant may have four seconds of the contestant's choice and each such second while assisting in the boxer's corner shall present a neat and tidy appearance. Only one of the seconds may be inside the ring ropes between rounds with no more than two seconds on the apron. One second must remain on the floor.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§362. Excessive Coaching.

Note • History

A second shall not excessively coach a boxer during a round and shall remain seated and silent when so directed by the commission representative on duty.

Excessive coaching may lead to point deduction by the referee, ejection from the venue, and/or disciplinary action by the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Repealer and new section filed 6-11-84; effective thirtieth day thereafter (Register 84, No. 24).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

3. Amendment of section heading and new second paragraph filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§363. Throwing Water Prohibited.

Note • History

Excessive use of water and/or ice between rounds is prohibited. The designated chief second shall be responsible to assure that the corner is dry at the start of each round.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer and new section filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§364. Determining Defeat.

Note • History

A manager or chief second of a contestant may toss a towel into the ring in token of defeat. However,such manager or chief second shall follow the towel into the ring as soon as it is possible to do so.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Change without regulatory effect amending Note filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§365. Fans and Towels.

Note • History

Fans and swinging of towels are prohibited.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§368. Change of Decision.

Note • History

(a) A decision rendered at the termination of any boxing contest is final and shall not be changed unless following the rendition of a decision the commission determines that any one of the following occurred:

(1) There was collusion affecting the result of any contest;

(2) The compilation of the scorecard of the judges, and the referee when used as a judge, shows an error which would mean that the decision was given to the wrong boxer;

(3) There was a violation of the laws or rules and regulations governing boxing which affected the result of any contest.

(4) The winner of a bout tested positive immediately after the bout for a substance listed in Rule 303(c).

(b) A petition to change a decision shall be in writing and filed by a boxer or the boxer's manager within five (5) calendar days from the date the decision was rendered.

(c) If a petition to change a decision is not filed in writing within five (5) days of the decision, the commission may, upon the vote of at least a majority of the commissioners present, hold a hearing to change the decision at any time.

(d) If the commission determines that any of the above occurred with regards to any contest then the decision rendered shall be changed as the commission may direct.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment of subsections (b)-(c) filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

3. New subsections (d) and (e) filed 5-14-96; operative 6-13-96 (Register 96, No. 20).

4. Amendment filed 4-6-2009; operative 4-6-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 15).

Article 9. Referees and Judges

§370. Commission Shall Select Referee.

Note • History

The commission or its duly authorized representative shall select and assign all referees. A licensee who wishes to protest the assignment of a referee or judge, shall file a written protest with the commission at least five days prior to the scheduled contest and shall state the reason for the protest. The protesting licensee and the referee and/or judge shall be given thereafter a hearing before a commission representative and the representative shall make such disposition of the protest as the facts may justify.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18730, Business and Professions Code.

HISTORY

1. Repealer and new section filed 6-11-84; effective thirtieth day thereafter (Register 84, No. 24).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

3. Amendment filed 2-29-2000; operative 3-30-2000 (Register 2000, No. 9).

§371. Referee's License.

Note • History

(a) In order to be licensed as a referee, an applicant shall meet all the following requirements:

(1) Have demonstrated prior experience in refereeing and judging boxing matches and perform in a series of training sessions as a referee to successfully demonstrate proficiency. Training sessions shall be conducted by a commission representative or commission appointed licensed referee(s) and shall be approved by the commission.

(2) Be found after examination by a licensed physician to be physically and mentally fit to referee a boxing contest and to have uncorrected visual acuity of at least 20/100 in both eyes. Weight shall be proportionate to height in accordance with the standards of the American Medical Association in effect at the time of the effective date of this regulation.

(3) Be in good physical condition with the speed and reflexes in the ring necessary for the protection of the boxers.

(4) Pass a written examination administered by the commission on the fundamentals of boxing, refereeing and judging boxing matches and contests, and California law and regulations relating to boxing.

(5) Perform in a series of training sessions as a judge to successfully demonstrate proficiency. Training sessions shall be conducted by a commission representative or commission-appointed licensed referees or judges.

(6) These requirements may be waived for any applicant who is licensed and in good standing with another state athletic commission or any commission-approved sanctioning body such as the World Boxing Council, World Boxing Association, International Boxing Federation, and World Boxing Organization.

(7) In order to renew a referee's license, a referee shall comply with subsections (b) and (c) in addition to any other requirements for renewal set forth in the law or these regulations.

(b) A person who possesses a valid California license as a referee may judge a boxing contest without the need to obtain a judge's license.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18731 and 18734, Business and Professions Code.

HISTORY

1. Repealer and new section filed 12-17-86; effective thirtieth day thereafter (Register 86, No. 51).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

3. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§372. Referee's Uniform.

Note • History

Referees shall wear such apparel as may be approved by the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§373. Fees for Officials.

Note • History

At all boxing events each timekeeper, referee and judge on duty directed by the commission to be in attendance thereat, shall be paid by the club such fee as the commission shall order, in accordance with the schedule furnished to the club and on file with the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18731 and 18734, Business and Professions Code.

HISTORY

1. Amendment filed 4-12-85; effective thirtieth day thereafter (Register 85, No. 15).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

3. Amendment of section heading and section filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§375. Referee's Physical Examination.

Note • History

(a) In addition to any other qualifications for referees established by the commission, each applicant for a boxing referee's license who has not been previously licensed and examined shall submit to an initial physical examination which shall include all tests necessary to determine an applicant's physical fitness, agility, reflexes, and reaction time as specified by the commission which examination shall be taken at a facility and by a physician or physicians specified by the commission. The cost of the examination shall be the responsibility of the applicant.

(b) All boxing referees, in addition to being examined by a physician prior to officiating, shall submit to an annual regular examination to establish their physical fitness to perform as a referee.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641, 18660 and 18661, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment of subsection (b) and repealer of subsection (c) filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§376. Grading of Referee's Performance.

Note • History

(a) It shall be the duty of the assigned commission representative to evaluate each boxing referee's performance for each contest presided over by the referee. The evaluation shall result in a grade of satisfactory, unsatisfactory, or needs improvement. The grade shall be arrived at by considering, among other things, the referee's reflexes, and overall ability to direct and control the contest in a manner designed to ensure the protection of the participants and to obtain the contestants' compliance with the statutes and rules of the commission applicable to the particular contest. The evaluator may include written comments where a satisfactory grade is rendered but shall make specific written comments where a grade of unsatisfactory or needs improvement is rendered. The grade and any comments pertaining thereto shall be filed with the executive officer in the Sacramento office and may be inspected or copied by the referee or anyone designated in writing by the referee so graded. Any referee wishing to protest an evaluation shall do so in writing within 30 days after the evaluation has been served on the referee.

(b) If a referee files a written protest of any evaluation, the executive officer or that person's designee shall, in consultation with the evaluator, discuss the evaluation with the referee. Where the evaluation was unsatisfactory or needs improvement, the referee shall be given recommendations for improving his or her performance.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641 and 18730, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

3. Redesignation and amendment of former section as subsection (a) and new subsection (b) filed 11-20-2001; operative 12-20-2001 (Register 2001, No. 47).

§377. Hearing to Remove Referee's License.

Note • History

(a) At any time during the course of a boxing contest should it become apparent to any duly authorized representative of the commission that any referee is not discharging his responsibilities in a manner which ensures the safety of the participants, a written report shall be filed with the executive officer. The referee shall be notified that he shall not be assigned to referee another contest until a hearing is held. If the referee requests a hearing, a hearing shall be held within thirty days of the request. The commission itself may conduct the hearing, or it may delegate this responsibility to any duly authorized representative of the commission, who shall then make a recommendation to the commission in the matter. The hearing shall be held to determine whether the referee's license shall be revoked or suspended or other appropriate action taken by the commission. The decision of the commission shall be final.

(b) If the executive officer becomes aware of two or more bouts where a referee has not discharged the referee's responsibilities with the requisite skill to ensure the safety of the participants, the executive officer shall notify the referee of his or her specific deficiencies and each date and bout where the deficiencies were noted. The executive officer may consider all bouts over which the referee presided, regardless of whether the referee received any formal evaluation and regardless of whether that evaluation was satisfactory. The referee may request a hearing within thirty days from the date of the notification. If the referee requests a hearing, a hearing shall be held within thirty days of the request. The commission itself may conduct the hearing, or it may delegate this responsibility to any duly authorized representative of the commission, who shall then make a recommendation to the commission in the matter. The hearing shall be held to determine whether the referee's license shall be revoked or suspended or other appropriate action taken by the commission. The decision of the commission shall be final.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641, 18730 and 18855, Business and Professions Code.

HISTORY

1. Repealer and new section filed 6-11-84; effective thirtieth day thereafter (Register 84, No. 24).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

3. Redesignation and amendment of former section as subsection (a), new subsection (b) and amendment of Note filed 11-20-2001; operative 12-20-2001 (Register 2001, No. 47).

§378. Officials to Be Admitted.

Note • History

Any licensed boxing referee, judge, timekeeper or physician shall be admitted to any boxing show in this State on presentation of his or her license card. A ticket shall be issued to any referee when he or she shows his or her card but the commission shall not collect a tax on any ticket so issued.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18824, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment of section heading and section filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§379. Judge's License .

Note • History

In order to be licensed as a judge for boxing contests, an applicant shall meet all the following:

(a) Shall have been assigned by the California Athletic Commission for at least three years in such a capacity as to have judged, supervised or evaluated professional boxing judges.

(b) Pass a written examination administered by the commission on the fundamentals of boxing, judging boxing contests and knowledge of California law and regulations relating to boxing.

(c) These requirements may be waived for any applicant who possesses a current and valid license as a boxing judge in another state or country and has not been the subject of any disciplinary action.

(d) Must have demonstrated prior experience in judging boxing contests and must demonstrate judging proficiency. Proficiency shall be determined by a commission representative or commission-appointed licensed referees or judges and the method of evaluations shall be approved by the commission.

NOTE

Authority Cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641 and 18648, Business and Professions Code.

HISTORY

1. New section filed 12-17-86, effective thirtieth day thereafter (Register 86, No. 51).

2. Amendment of subsections (a) and (d) filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

Article 10. Champions

§380. Definition.

Note • History

A champion is one formally acknowledged supreme in a branch of athletics or game of skill, and ready to contend with any qualified challenger.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§381. Alternative Provisions.

Note • History

Recognizing the need for uniformity of rules governing world championship contests notwithstanding any Boxing Rule the commission may, in its discretion, authorize alternate provisions from time to time as long as the safety and welfare of the boxers and the public are not jeopardized.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§382. Defense of Title.

Note • History

Rules governing champions shall apply to state champions except that titles shall be defended at least once every six months if a suitable challenger is available and a challenge is made. If a boxer does not defend his title within this period of time or refuses to accept a reasonable offer to defend against a challenger, the title automatically shall be vacated.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§384. Determination of Title.

Note • History

The commission may once a year name state professional boxing champions in each weight class. A championship may be lost by default, forfeit, or inability to make the weight, but a championship can only be won in a contest.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§386. Advertising Appearance of Champion or Contender.

Note • History

No person shall advertise a boxer in California as a champion or contender in any manner which is false or misleading.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Change without regulatory effect amending Note filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

Article 11. Enforcement

§389. Appeal Procedures.

Note • History

(a) A person who wishes to appeal either a fine issued pursuant to Section 18843 of the code or a temporary suspension issued pursuant to Section 18842 of the code, shall send a written request for a hearing on a form prescribed by the commission. The request shall be sent to the commission's headquarters and to the Office of the Attorney General at the address designated on the form. The form shall contain all of the following information:

(1) The person's name, address, telephone number, e-mail address if available.

(2) The date of the request.

(3) Type of license held and license number.

(4) A detailed statement showing grounds for reduction or dismissal of the fine or suspension, as applicable.

(5) A statement whether the requester is represented by an attorney. If the requester is represented by an attorney, the name, address, telephone number and e-mail address of the attorney.

(6) Whether the services of an interpreter are required and if so, for which language.

(7) The requester's signature.

The commission shall return to the requester without action any request that is incomplete because it lacks one or more of the items described above.

(b) Within 30 days after receipt of a complete request, the commission shall set the matter for hearing.

(c) A hearing shall not exceed one (1) hour. The time shall be divided evenly between the requester and the commission representative (“the parties”). Each party may make either an oral or a written statement of the case. The commission representative shall proceed first. If the requester elects to address the commission, the requester shall be placed under oath. The sequence of, and time limitations on, argument before the commission are as follows:

(1) First--the staff representative and/or deputy attorney general, who shall be limited to twenty minutes.

(2) Second--the requester and/or his or her legal counsel, who shall be limited to twenty minutes.

(3) Third--the rebuttal of the staff representative and/or deputy attorney general, which shall be limited to ten minutes.

(4) Fourth--the rebuttal of the requester and/or his or her legal counsel, which shall be limited to ten minutes.

(d) The commission staff bears the burden of proving his or her case by a preponderance of the evidence.

(e) The commission shall serve the written decision on the parties not later than forty-five (45) calendar days after the matter has been submitted. The decision shall contain factual findings, legal conclusions, and an order describing the action taken by the commission at a duly noticed meeting.

(f) A request for hearing shall be deemed abandoned and the request dismissed if the party who appealed and requested a hearing fails to appear at a duly noticed meeting, unless the party demonstrates good cause for that failure to appear.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18842 and 18843, Business and Professions Code.

HISTORY

1. New section filed 4-6-2009; operative 4-6-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 15).

§390. Violations of Laws or Rules.

Note • History

Any licensee who violates the laws of the State of California,with the exception of minor traffic violations, or the rules of the Athletic Commission, or who fails or refuses to comply with a valid order of a commission representative, or who conducts himself or herself at any time or place in a manner which is deemed by the commission to reflect discredit to boxing, may have his or her license revoked, or may be fined, suspended or otherwise disciplined in such manner as the commission may direct.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18870 and 18878, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Change without regulatory effect amending section filed 12-16-94 pursuant to section 100, title 1, California Code of Regulations (Register 94, No. 50).

§391. Dealing with Certain Persons Prohibited.

Note • History

The commission may deny an application, or suspend or revoke any license if it finds that at any time the licensee or any partner, officer, director, stockholder, or employee thereof, in this state or elsewhere,

(a) has engaged in illegal bookmaking or other illegal gambling activities,

(b) has been convicted of a crime substantially related to the regulations of boxing,

(d) who is a reputed underworld character,

(e) who has been convicted of any such offense in any jurisdiction,

(f) who is under suspension or revocation in any other state, or

(g) is engaged in any activity or practices which are detrimental to the best interests of boxing.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18840, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§392. Dealing with Unlicensed or Suspended Persons Prohibited.

Note • History

No licensee shall enter into any agreement under the jurisdiction of the commission with any unlicensed person, nor shall any licensee have any such dealings related to boxing with any person or club whose license is currently under suspension, or revoked, or whose application for a license has been denied.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18843 and 18870, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§394. Records.

Note • History

Every club and manager shall maintain a full, true and accurate set of books and records in connection with all licensed activities. These records and any other records required by statute or commission rule shall be kept for at least five years and shall be open to inspection and audit by representatives of the commission upon reasonable notice.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641 and 18642, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§395. Financial Reports.

Note • History

As a part of any investigation conducted by the commission concerning the regulation of boxing in California and for good cause shown, upon written request by the commission a licensee or applicant for a license shall submit a written financial statement to the commission made under penalty of perjury which shall include an itemization of all assets and liabilities of the licensee or applicant and such other financial information as the commission may request.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18611, 18640, 18641, 18665, 18666, 18667, 18826 and 18849, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§396. Financial Interest.

Note • History

No club or any member, stockholder, director or officer thereof or matchmaker or assistant matchmaker shall act directly or indirectly as manager of a boxer.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641, 18848 and 18849, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§397. Advances to Boxer or Manager.

Note • History

Without prior written permission of the commission, no club shall, directly or indirectly, incur any indebtedness on behalf of a boxer or manager whereby such person is obligated to repay such indebtedness.

No club at any time shall, directly or indirectly, make any loan or advance to any manager.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18849, 18853 and 18854, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Change without regulatory effect amending section filed 12-16-94 pursuant to section 100, title 1, California Code of Regulations (Register 94, No. 50).

§398. Licensees Must Report Sham Contests.

Note • History

Any person, licensed by the commission who is approached with a request or suggestion that a sham or collusive contest be entered into or that the contest shall not be conducted honestly and fairly shall immediately report the matter to the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18865, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

§399. Procedure When License Denied or Revoked.

Note • History

(a) Any applicant who has been denied an application for a license may not file a similar application until one year from the date of the last previous denial by the commission. Any application filed within the one year period may be denied without the necessity of a hearing.

(b) Any person who has had his or her license revoked may not petition for reinstatement or apply for a new license until one year after the date of such revocation. Any petition for reinstatement filed within the one year period may be denied without the necessity of a hearing.

(c) When considering the denial or reinstatement of a license, the commission, on a case by case basis, shall consider the following criteria in evaluating the rehabilitation of the applicant or petitioner and his or her present eligibility for a license:

(1) The nature and severity of the act(s) or crime(s) that led to license revocation or that are under consideration as grounds for denial.

(2) Evidence of any act(s) or crime(s) committed subsequent to the act(s) or crime(s) that led to revocation or that are under consideration as grounds for denial.

(3) The time that has elapsed since commission of the act(s) or crime(s) referred to in subsections (1) or (2).

(4) The extent to which the applicant or petitioner has complied with any terms of parole, probation, restitution or any other sanctions lawfully imposed against the applicant or petitioner.

(5) Evidence, if any, of rehabilitation submitted by the applicant or petitioner.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 482, 18640, 18641, 18642, 18840 and 18841, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment of section and Note filed 4-30-2012; operative 5-30-2012 (Register 2012, No. 18).

Article 12. Pension Plan

§400. Professional Boxer's Pension Plan.

Note • History

The commission hereby restates the professional boxer's pension plan previously established by the commission. The commission may, in its discretion, contract with a private or public entity for the administration of such plan.

NOTE

Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Section 18881, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

§401. Definitions.

Note • History

(a) Account.

“Account” means either the participating boxer's regular account or refund account.

(1) Regular Account.

“Regular Account” means the account maintained by the commission on the records of the Plan for each participating boxer representing allocations of contributions and forfeitures, adjusted for withdrawals, income, expenses and realized and unrealized gains and losses attributable thereto.

Each boxer's regular account shall be created as of the effective date of this restated Plan on May 1, 1996. An amount equal to the actuarial equivalent, or the present value of accrued benefit (“PVAB”) of a participating boxer's benefit under the Boxer's Retirement Plan as of April 30, 1996 shall be allocated to the boxer's regular account on that date. This amount in the boxer's regular account shall be referred to as the participating boxer's “grandfathered PVAB balance”.

(2) Refund Account.

“Refund Account” means an account maintained by the commission on the records of the Plan for each boxer who has incurred a break in service and who has made contributions to the Plan under the terms of this Article. Such account shall be created as a sub-account within the Pension Fund and shall exist until January 1, 2002 in accordance with the vesting provisions of this Plan.

(b) Accrued Benefit.

“Accrued benefit” means the aggregate amount in all of a participating boxer's accounts and shall include the actuarial equivalent of any participating benefit under the Plan as of April 30, 1996.

“Actuarial equivalent” means the equivalent in value of the accrued benefit expected to be received based upon actuarial assumptions adopted from time to time by an enrolled actuary appointed by the commission.

(d) Beneficiary.

“Beneficiary” means all persons entitled under the provisions of this Plan to receive benefits after the death of a participating boxer.

(e) Boxer.

“Boxer” means a licensed professional boxer.

(f) Boxers' Pension Account.

“Boxers' pension account” means the fund held by the commission in the boxers' pension account established pursuant to section 18882 of the Code for the exclusive purpose of paying benefits under this Plan.

(g) Break In Service.

“Break in service” occurs when a participating boxer fails to fight at least ten (10) scheduled rounds in California during any thirty-six (36) consecutive calendar months, after July 1, 1981, and prior to age 55. A participating boxer who suffers a break in service forfeits all credit earned for rounds fought up to that date unless such participating boxer is a covered boxer at the end of the plan year in which the break in service occurs. For purposes of this Article, a boxer's service in the armed forces of the United States in a time of war or national emergency shall not be counted in determining when a break in service occurs.

(h) Covered boxer.

“Covered boxer” means a participating boxer who has satisfied the vesting requirements of section 405(a).

(j) Forfeiture.

“Forfeiture” means the reallocation within the Plan of that portion of a participating boxer's regular account that is not vested prior to the date on which the boxer incurs a break in service.

(k) Participating Boxer.

“Participating Boxer” means a licensed professional boxer who participates in a contest after July 1, 1981, and who is or may become eligible to receive a benefit under the Plan, or whose beneficiary may be eligible to receive any such benefit, and who has not incurred a break in service. A boxer who has incurred a break in service shall nonetheless be deemed a “participating boxer” for any year after that break in service in which the boxer participates in a contest.

(l) Plan Year.

“Plan year” means the calendar year. The first plan year for this restated Plan shall be the period between May 1 and December 31, 1996.

(m) Suspense Account.

“Suspense account” means the account provided for in the funding and allocation provisions of this Plan.

(n) Vested.

“Vested” means that the participating boxer or the participating boxer's beneficiary has an unconditional, nonforfeitable right in the participating boxer's accrued benefit.

NOTE

Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Section 18881, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Amendment of subsections (a)(1)-(a)(3) and (c) filed 7-11-94; operative 7-11-94 (Register 94, No. 28).

3. Repealer and new section heading, section and Note filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

4. Amendment of subsection (a), repealer of subsection (a)(2), subsection renumbering, and repealer of subsection (i) filed 6-17-97; operative 6-17-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 25).

5. Amendment of subsection (a)(2) filed 12-4-98 as an emergency; operative 12-4-98 (Register 98, No. 49). A Certificate of Compliance must be transmitted to OAL by 4-5-99 or emergency language will be repealed by operation of law on the following day.

6. Amendment of subsection (a)(2) and amendment of Note refiled 4-2-99 as an emergency; operative 4-2-99 (Register 99, No. 14). A Certificate of Compliance must be transmitted to OAL by 8-2-99 or emergency language will be repealed by operation of law on the following day.

7. Reinstatement of section as it existed prior to 4-2-99 emergency amendment by operation of Government Code section 11346.1(f) (Register 99, No. 42).

8. Amendment of subsection (a)(2) and amendment of Note filed 10-13-99; operative 10-13-99 pursuant to Government Code section 11343.4(d) (Register 99, No. 42).

9. Amendment of subsection (k) filed 11-1-2001; operative 12-1-2001 (Register 2001, No. 44).

§402. Eligibility for Participation.

Note • History

Any professional boxer who fights in a commission-approved contest shall be required to have contributions made to the Plan and shall participate in allocations of contributions and forfeitures in the Plan beginning with the first fight in which such requirements are met. The boxer shall sign a waiver of privacy rights to the extent necessary to enable the commission to locate the boxer in order to assure the boxer's receipt of benefits under the Plan. Any boxer who was participating in the Plan prior to May 1, 1996 shall continue to participate in the Plan and share in allocations to the boxer's accounts under the terms of this article.

(a) Effect Of Break In Service On Current Participation.

Any boxer who incurs a break in service prior to becoming a covered boxer shall cease to be a participating boxer in the Plan. If the participating boxer is a covered boxer pursuant to this Plan at the time he incurs a break in service, then such participating boxer's accounts shall be placed on inactive status, and the participating boxer shall not continue to share in the allocation of contributions but shall continue to receive allocations of the Plan's forfeitures and investment results.

(b) Determination of Eligibility.

The commission shall determine the eligibility of each boxer for participation in the Plan based upon information gathered for the commission by the commission staff. Each such determination shall be conclusive and binding on all persons. Any misrepresentation by a boxer, manager, promoter, or beneficiary shall be grounds for the denial, suspension or discontinuance of benefits, in whole or in part, or for the cancellation or recovery of benefit payments made in reliance thereon by the commission. Each participating boxer shall participate in the Plan until such time as the boxer incurs a break in service or begins receiving all or a portion of his accrued benefit from the Plan.

NOTE

Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Section 18881, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer and new section heading, section and Note filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

§403. Funding and Contributions.

Note • History

(a) Contributions.

Contributions shall be assessed as follows:

The shall contribute 88 cents ($.88) on every ticket, excluding a working complimentary ticket as described in section 264, up to a maximum contribution of $4,600 per show.

(b) Formula for Allocation of Contributions.

Contributions shall be allocated to each participating boxer's account on the last day of the plan year in the following proportions:

(1) One half (1/2) of the contributions for the plan year shall be allocated among the regular accounts of participating boxers who have not incurred a break in service as of the last day of the plan year in the proportion that each such boxer's scheduled rounds fought for the plan year bears to the total scheduled rounds fought in the plan year; and

(2) One half (1/2) of the contributions for the plan year shall be allocated among the regular accounts of participating boxers who have not incurred a break in service as of the last day of the plan year in the proportion that each such boxer's total purses for the plan year bears to the total purses paid for all fights fought by participating boxers in the plan year.

Forfeitures which become available in a plan year for allocation shall be allocated to each participating boxer's account on the last day of the plan year in the following proportions:

(1) One half (1/2) of the forfeitures shall be allocated among all regular accounts as of the last day of the plan year in the proportion that each such regular account bears to the total regular accounts in the Plan; and

(2) One half (1/2) of the forfeitures shall be added to the boxer, promoter and manager contributions for the plan year and shall be allocated among the regular accounts of participating boxers who have fought in the current plan year according to the formula set forth in subsection (b) above.

(d) Forfeiture and Reallocation of Unvested Amounts.

If any participating boxer incurs a break in service prior to becoming a covered boxer, then such participating boxer's regular account shall be held in a suspense account on the records of the Plan after incurring such break in service until such time as it shall be forfeited and reallocated.

Suspense account balances shall be forfeited and reallocated under the Formula set forth in subsection (c) above, as of the last day of the plan year following the plan year in which the participating boxer completes a break in service.

NOTE

Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Sections 18881 and 18882, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer and new section heading, section and Note filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

3. Amendment of subsection (a) and repealer of subsections (a)(1)-(a)(3) and (e)-(e)(4) filed 6-17-97; operative 6-17-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 25).

4. Amendment of subsection (a) and amendment of Note filed 7-23-99 as an emergency; operative 7-23-99 (Register 99, No. 30). A Certificate of Compliance must be transmitted to OAL by 11-22-99 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 7-23-99 order, including further amendment of subsection (a), transmitted to OAL 8-30-99 and filed 10-13-99 (Register 99, No. 42).

6. Amendment of subsection (c)(2) filed 11-1-2001; operative 12-1-2001 (Register 2001, No. 44).

§404. Valuation and Earnings.

Note • History

(a) Valuation Of The Pension Fund.

The assets of the pension fund shall be valued annually at fair market value on the last day of the plan year. The commission shall determine the net worth of the assets of the pension fund at their fair market value on the last day of the plan year.

(b) Order of Adjustment.

Subject to the provisions governing allocations of contributions and valuation, the commission shall adjust the accounts as of the last day of the plan year as follows, in the order stated:

(1) First, the accounts shall reflect proportionately any adjustment of fair market value of assets in the manner provided in subsection (c) below;

(2) Second, the commission shall allocate proportionately any income or loss in the manner provided in subsection (c) below;

(3) Third, the commission shall deduct all fees and expenses for the administration of the Plan;

(4) Fourth, the commission shall allocate contributions in the manner provided in section 403(b);

(5) Fifth, the commission shall allocate forfeitures in the manner provided in section 403(b).

As of the last day of each plan year, the income or loss attributable to the assets of the pension fund, reduced by expenses incurred since the last day of the prior plan year, shall be allocated to the accounts of the participating boxers who had unpaid balances in their accounts as of such date in proportion to the balances in such accounts as of the last day of the prior plan year, after reducing such prior plan year balances by amounts withdrawn or distributed since last day of the the prior plan year, if any.

NOTE

Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Sections 18881 and 18882, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer and new section heading, section and Note filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

3. Amendment of subsection (b)(5) and repealer of subsection (b)(6) filed 6-17-97; operative 6-17-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 25).

§405. Vesting.

Note • History

(a) Vesting.

A participating boxer shall become vested in the amount credited to the participating boxer's regular account when the participating boxer has:

(1) Fought in at least ten (10) scheduled rounds per calendar year during each of four (4) calendar years without an intervening break in service; and

(2) Has fought in at least seventy-five (75) scheduled rounds without a break in service.

(b) Scheduled Rounds for Vesting.

A participating boxer shall be credited for fighting in one (1) round for each scheduled round of professional boxing fought in California in a commission-approved bout as part of a contest in which at least one (1) round was commenced after June 30, 1978; provided however, that the boxer must fight in at least twenty (20) scheduled rounds in the thirty-six (36) calendar month period following July 1, 1981, in order to receive any credit for scheduled rounds fought beginning after June 30, 1978 but prior to July 1, 1981.

A separate refund account shall be created on the records of the Plan as of May 1, 1996, which shall contain all unvested boxer contributions made prior to May 1, 1996, for all boxers who have incurred a break in service as of April 30, 1996 under the terms of the Plan as it existed prior to such date. The commission will continue to invest and safeguard those assets within the investment vehicle in which it is investing the participating boxers and covered boxers accounts.

On or after May 1, 1996 a participating boxer who has not vested but who has contributed a portion of his purse (under the provisions of this Plan in this article in effect prior to May 1, 1996), and who has incurred a break in service may request a refund from the commission of the pre-1996 amounts contributed by him, plus 6% interest up to May 1, 1996 and plus his share of applicable earnings allocated to his account since that date. No boxer who has vested and become a covered boxer is eligible for such a refund. All amounts not claimed by these boxers before January 1, 2000, shall constitute forfeitures and shall be allocated in accordance with section 403(c), in three (3) equal installments for the plan years ending December 31, 1999, December 31, 2000, and December 31, 2001.

(d) Lost Beneficiary.

If, according to the records of the commission, a participating boxer has reached age 50 and the participating boxer or his or her beneficiary has not made a claim for benefits, the participating boxer's accrued benefit shall be held until the last day of the third plan year after the participating boxer reached age 50, at which time it shall be reallocated pursuant to section 403(c); provided, however, that if a claim is later made by the participating boxer or beneficiary for the forfeited benefit, the commission shall reinstate the amount of the vested account balance that had been forfeited, unadjusted by any gains or losses attributable to such amount. Such reinstatement shall be made from the contributions for such year of reinstatement, prior to the allocation of contributions to accounts for the year of reinstatement.

(e) Vesting of Pre-1996 Regular Account Balance.

Each participating boxer who is not a covered boxer as of May 1, 1996 shall continue to accrue credit towards vesting in his regular account balance under the terms of this Plan. In the event a participating boxer with a regular account balance attributable to pre-1996 contributions incurs a break in service before becoming a covered boxer, the portion of such boxer's regular account balance attributable to amounts other than boxer contributions, if any, shall be placed in the suspense account and shall be reallocated with other forfeitures under the terms of this restated Plan.

NOTE

Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Sections 18881 and 18882, Business and Professions Code.

HISTORY

1. New section filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

2. Amendment of subsection (c) filed 12-4-98 as an emergency; operative 12-4-98 (Register 98, No. 49). A Certificate of Compliance must be transmitted to OAL by 4-5-99 or emergency language will be repealed by operation of law on the following day.

3. Amendment of subsection (c) refiled 4-2-99 as an emergency; operative 4-2-99 (Register 99, No. 14). A Certificate of Compliance must be transmitted to OAL by 8-2-99 or emergency language will be repealed by operation of law on the following day.

4. Reinstatement of section as it existed prior to 4-2-99 emergency amendment by operation of Government Code section 11346.1(f) (Register 99, No. 42).

5. Amendment of subsection (c) filed 10-13-99; operative 10-13-99 pursuant to Government Code section 11343.4(d) (Register 99, No. 42).

6. Amendment of subsection (d) filed 8-30-2010; operative 9-29-2010 (Register 2010, No. 36).

§406. Determination of Benefits.

Note • History

(a) Measure Of Benefits.

The benefit distributable to a covered boxer upon retirement or to the covered boxer's beneficiary in the event of the covered boxer's death, shall be the value of the participating boxer's accrued benefit as of the last day of the plan year coinciding with or next following the date of death or attainment of age 50.

(b) Nonliability.

The commission does not guarantee the pension fund, the participating boxers or their beneficiaries against loss of or depreciation in value of any right or benefit that any of them may acquire under the terms o this Plan. All of the benefits payable hereunder shall be paid or provided for solely from the pension fund.

The commission, with respect to any benefit, is authorized:

(1) To pay benefits directly from the pension fund in a lump sum or installments;

(2) To invest the amount of the accrued benefit in an installment contract or annuity for the benefit of the covered boxer or the participating boxer's beneficiary by conversion of existing contracts or otherwise. Such installment contract, endorsed as nontransferable, may be distributed to the covered boxer or the covered boxer's beneficiary;

(3) To distribute to the covered boxer the contracts on the covered boxer's life; in such event, if the vested interest of the covered boxer is less than the value of contracts to be distributed, then the commission may reduce their net value to the amount of the vested interest by making a policy loan or allowing the participating boxer to purchase the excess contract value; or

(4) Any combination of the preceding methods.

(d) Payment Of Benefits.

(1) When a covered boxer either reaches age 50 or dies, the commission shall determine the boxer's accrued benefit on the last day of the plan year (or a valuation date as of the date the participating boxer became entitled to benefits hereunder, if the commission orders a special valuation to be made or if the accounts are segregated individual accounts). The covered boxer shall be provided with a nontransferable, fixed or variable installment contract of such type and from such insurer as the trustee shall select, payable over a period of years not to exceed the greater of thirty (30) years, the covered boxer's life expectancy, or the joint life expectancy of the covered boxer and the covered boxer's designated beneficiary. The payments shall be substantially equal in amount and shall occur at least annually.

(2) A covered boxer may, for good cause shown, petition the commission in writing to receive one of the following alternative methods of payment:

(A) Lump Sum.

A single lump sum distribution of the covered boxer's accrued benefit in cash or in-kind.

(B) Installments.

Cash payments in quarterly installments of substantially equal designated amounts or of a designated percentage of the value of the covered boxer's accrued benefit payable over a five year term, which shall not exceed the covered boxer's remaining life expectancy or over the joint life expectancy of the covered boxer and the covered boxer's designated beneficiary.

(3) For purposes of subsection (d), “good cause” means the covered boxer's terminal illness or disability retirement, or the situation where it is objectively imprudent to purchase an annuity contract.

(e) Commencement Of Payment Of Benefits.

Distribution of the funds due to a covered boxer shall be made to such covered boxer as soon as is administratively feasible after the last day of the plan year in which the covered boxer reaches age 50 or dies or meets other applicable early retirement distribution criteria and without unreasonable delay unless due to causes beyond the control of the commission, its trustee or other appointed fiduciary.

(f) Vocational Early Retirement Benefit.

A covered boxer may ask the commission to convert all or a portion of the covered boxer's accrued benefit to a vocational education benefit. This request shall be made by the covered boxer on or after the covered boxer has reached the age of 36 and has retired from boxing, as evidenced by unconditional surrender or cancellation of the boxer's license. The commission may, in its discretion, grant such petition in whole or in part.

If the commission grants the petition, it may pay all or a portion of the covered boxer's accrued benefit for education or vocational training. The commission shall make such payments directly to an institution approved by the Bureau for Private Postsecondary and Vocational Education, or its equivalent in another state or jurisdiction, on a periodic basis as billed by the institution and where the institution submits evidence satisfactory to the commission that the boxer is maintaining satisfactory attendance at the institution.

(g) Amount of Death Benefits.

Upon the death of a covered boxer prior to age 50, the covered boxer's accounts shall become payable to the covered boxer's beneficiary.

(h) Designation Of Beneficiary.

Each participating boxer shall have the right to designate, on forms provided by the commission, a beneficiary or beneficiaries to receive the participating boxer's death benefits, and shall have the right, at any time, to revoke such designation or to substitute another such beneficiary or beneficiaries without the consent of any beneficiary; provided, however, that a married participating boxer and spouse must both designate any non-spouse beneficiary or beneficiaries. The commission shall file all beneficiary designations with the trustee and with the insurer insofar as they affect any insurance contracts on the participating boxer's life.

(i) Absence Of Valid Designation Of Beneficiaries.

If, upon the death of a covered boxer or beneficiary, there is no valid designation of beneficiary on file, the commission shall designate the covered boxer's survivors and issue as the beneficiary, in order of priority according the the California Probate Code.

The determination of the commission as to which persons, if any, qualify within the aforementioned categories shall be final and conclusive upon all persons. The commission may seek a declaratory judgment of a court of local jurisdiction to determine the identity of beneficiaries and their respective shares at the expense of the beneficiary's accounts.

(j) Distributions To Incapacitated Covered Boxers.

If a covered boxer or beneficiary who is entitled to a payment under the Plan is deemed incapable of personally receiving the payment, the commission or its trustee may make all benefit distributions to the persons or institutions which are providing for the care and maintenance of the covered boxer or beneficiary and continue to make distributions to them until a duly appointed legal representative of the covered boxer or beneficiary makes a claim for the payment. Payments made pursuant to the terms of this subsection shall constitute a distribution to the covered boxer or beneficiary entitled thereto, and shall immediately discharge the commission, the Plan and the pension fund of any further liability therefor.

NOTE

Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Sections 18881 and 18882, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer and new section heading, section and Note filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

3. Change without regulatory effect amending subsection (f) filed 7-21-98 pursuant to section 100, title 1, California Code of Regulations (Register 98, No. 30).

4. Amendment of subsections (a), (d)(1), (e) and (g) filed 5-12-2009; operative 5-12-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 20).

§407. Benefit Claims and Appeals.

Note • History

(a) Request for Information.

Any participating boxer or beneficiary may request information from the commission concerning rights or benefits under this article. The executive officer or his designee shall respond, in writing, not to exceed thirty (30) days, unless the failure to respond results from matters reasonably beyond the Administrator's control.

(b) Claim For Benefits.

The commission shall inform a claimant in writing within 30 days after receiving a claim whether the claim is complete and includes all information and documents necessary to establish the claim. The commission shall provide a written decision within 60 days after receipt of a complete claim. A written decision on each claim for benefits shall be provided to the person making the claim. If the claim is denied in any respect, the decision shall set forth the specific reasons for such denial, written in plain English, including:

(1) Specific references to pertinent Plan provisions on which the denial is based;

(2) An explanation of the Plan's review procedure for denied claims.

Within ninety (90) days after receipt of decision denying a claim for benefits, the covered boxer or beneficiary making the claim or his/her authorized representative may file a written request for review. The commission shall notify the claimant that it has received the request for review and that the claimant may submit, within thirty (30) days from the date of the notification, a written statement and documents to give whatever facts or evidence the claimant feels bears upon the claim, review pertinent documents and records and submit issues and comments in writing. The commission shall make a full review of the record, including the written and oral information submitted by the claimant. Within thirty (30) days of the claimant's deadline to provide information, the commission shall render a decision and if the claim is again denied, the commission shall set forth the specific reasons for such denial written in plain English. Such decision shall contain the same information required by subsection (b), above.

(d) Time.

The filing of a claim or receipt of a notice of decision and any event starting a time period shall be deemed to commence with personal delivery signed for by the claimant or by affidavit of personal service, or the date of actual receipt for certified or registered mail (or date returned if delivery is refused or a claimant has moved without giving the commission, or its agents a forwarding address).

NOTE

Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Sections 18881 and 18882, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer and new section heading, section and Note filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

§408. Plan Administration.

Note • History

(a) Expenses.

The members of the commission shall receive no compensation from the boxer's pension account for administering the pension plan, but the boxers' pension account shall reimburse the commission for all necessary direct expenses incurred in carrying out its maintenance of the Plan. The commission shall pay any necessary direct expenses, including reasonable pension consulting fees incurred by it in administering the Plan out of the Plan's funds. All direct administrative expenses, including actuarial certification fees, trust accounting fees, and commissions and expenses related to the investment of the boxer's Pension Account shall be directly assessable and shall be paid out of the boxer's pension accounts.

Expenses related to the restatement and implementation of this Article, including any extraordinary actuarial, design and consulting fees, costs of locating lost boxers' beneficiaries and costs of preparing summary plan descriptions in English and Spanish shall be reimbursed to the commission from the Plan, but only out of and limited to the funds that the commission's enrolled actuary certifies exceeds the cumulative grandfathered PVAB balances (actuarial equivalent of the Plan's benefit and refund obligations) as April 30, 1996.

(b) Powers and Duties.

The primary responsibility of the commission under this article is to administer the Plan for the exclusive benefit of the boxers and their beneficiaries, subject to the specific terms of this article. The commission shall administer the Plan in accordance with its terms and shall have the power and discretion to construe the terms of this article and to determine all questions arising in connection with the administration, interpretation, and application of the Plan. Any such determination by the commission shall be conclusive and binding upon all persons. The commission shall have all powers necessary or appropriate to accomplish the duties under this Plan.

The commission shall be charged with the duties of the general administration of the Plan, including, but not limited to, the following:

(1) The discretion to determine questions relating to the eligibility of boxers to participate or remain a participating boxer or a covered boxer hereunder and to receive benefits under the Plan;

(2) To compute, certify, and direct the amount and the kind of benefits to which any covered boxer shall be entitled hereunder;

(3) To maintain all necessary records for the administration of the Plan;

(4) To interpret the provisions of the Plan consistent with the law and these rules;

(5) To determine the size and type of any contract to be purchased from any insurer, if any, and to designate the insurer from which such contract shall be purchased;

(6) To prepare and distribute to participating boxers information concerning their rights and obligations, including a summary plan description stating the requirements and benefits of the Plan in English and Spanish, using commonly spoken language to the extent possible, which shall be sent to each manager and to each boxer at appropriate times by the Pension Plan Committee or the commission staff, including at the time of initial licensure and renewal.

(7) To place the funds in the pension plan in trust and to select a trustee to invest and administer the funds.

The executive officer shall present an annual pension report draft to the commission, which shall review it and issue a final annual pension report. The final annual pension report shall be a public document and shall include:

(1) The financial condition of the pension fund, including present value, net income or losses by source over the previous twelve (12) months, gains or losses realized by sales of assets or disposition;

(2) Number of currently covered boxers;

(3) The number of covered boxers drawing benefits and the total amount expended by category of benefits (i.e., normal retirement, death, annuity conversion, or vocational early retirement);

(4) The number of applicants denied requested benefits and the numbers and dispositions of requests for reconsideration and commission appeals;

(5) Itemized administrative or other deductions from the pension fund; and

(6) Other information that the commission deems appropriate.

NOTE

Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Sections 18881 and 18882, Business and Professions Code.

HISTORY

1. New section filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

§409. Transfer Or Assignment of Benefits.

Note • History

Subject to the exceptions provided below and as otherwise specifically permitted by law, neither the assets or benefits under this Plan nor the pension fund shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge. Any attempt to so anticipate, alienate, sell, transfer, assign, pledge, encumber or charge the same shall be void. Nor shall any such benefits in any manner be liable for or subject to the debts, contracts, liabilities or torts of the person entitled to such benefits.

NOTE

Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Sections 18881 and 18882, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer and new section heading, section and Note filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

§410. Time for Filing Claim. [Repealed]

Note • History

NOTE

Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Section 18881, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

§412. Amendment of Plan. [Repealed]

Note • History

NOTE

Authority cited: Sections 18611 and 18882, Business and Professions Code. Reference: Sections 18881 and 18882, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

§413. Actuarial Reevaluation. [Repealed]

Note • History

NOTE

Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Section 18881, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

§415. Limitation of Liability. [Repealed]

Note • History

NOTE

Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Section 18881, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

§416. Termination of Plan. [Repealed]

Note • History

NOTE

Authority cited: Sections 18611 and 18881, Business and Professions Code. Reference: Section 18881, Business and Professions Code.

HISTORY

1. Change without regulatory effect of NOTE (Register 87, No. 5).

2. Repealer filed 4-26-96; operative 5-1-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 17).

Article 13. Training Gymnasiums

§495. Gymnasium License.

Note • History

All professional boxers' training gymnasiums licensed by the commission shall post the license in a conspicuous place.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18653, Business and Professions Code.

HISTORY

1. New article 13 and section filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

§496. Monthly Sparring Report.

Note • History

To assure accuracy and accountability, owners of licensed professional boxing gymnasiums shall submit to the commission, on a monthly basis, the following information on licensed boxers or holders of sparring permits who have been knocked-out or injured at the gymnasium: the name and license number of each boxer, trainer and sparring partner, the nature of any injuries to the boxer or sparring partner, and whether headgear was used.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18643 and 18654, Business and Professions Code.

HISTORY

1. New section filed 10-30-95; operative 10-30-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

Chapter 2. Full Contact Martial Arts and Kickboxing

Article 1. General Provisions

§500. Citation.

Note • History

The rules in this subchapter shall be cited and referred to as the “Professional Full-Contact Martial Arts and Kickboxing Rules.”

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18763 and 18765, Business and Professions Code.

HISTORY

1. New subchapter 1.5 (sections 500-532, not consecutive) filed 8-23-77; effective thirtieth day thereafter (Register 77, No. 35).

2. Repealer and new section filed 10-2-84; effective upon filing pursuant to Government Code section 11346.2(d) (Register 84, No. 40).

3. Change without regulatory effect of NOTE (Register 87, No. 5).

4. Amendment filed 9-14-94; operative 10-14-94 (Register 94, No. 37).

5. Amendment of Note filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48).

§501. Applicability of Rules; Definitions.

Note • History

The rules in this subchapter shall apply to all professional full contact martial arts and kickboxing contests or matches. For purposes of this chapter, the term “kickboxing” has the meaning given in Section 18627(b) of the code and the term “martial arts” means unarmed full-contact martial arts, other than kickboxing, which permit the use of a mix of techniques from different disciplines, including but not limited to the use of chokeholds, joint manipulation and grappling techniques.

NOTE

Authority Cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18627, 18761 and 18768, Business and Professions Code.

HISTORY

1. Repealer and new section filed 10-2-84; effective upon filing pursuant to Government Code section 11346.2(d) (Register 84, No. 40).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

3. Amendment filed 9-14-94; operative 10-14-94 (Register 94, No. 37).

4. Amendment of section heading and section filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48).

§502. Certain Boxing Rules Not Applicable.

Note • History

(a) Unless otherwise specified in this chapter, all of the professional boxing rules apply to martial arts contests or matches except the following: Sections 242, 298, 306, 309 through 313, 322, 337, 338, 339, 349 through 351, 357, and 400 through 416.

(b) Unless otherwise specified in this chapter, all of the professional boxing rules apply to kickboxing contests or matches except the following: Sections 242, 298, 306, 309 through 313, 322, 337, 338, 339, 357, and 400 through 416.

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18627, 18761, 18763, 18765, 18766, 18767 and 18768, Business and Professions Code.

HISTORY

1. New section filed 1-2-84; effective upon filing pursuant to Government Code section 11346.2(d) (Register 84, No. 40).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

3. Amendment of section and NOTE filed 9-14-94; operative 10-14-94 (Register 94, No. 37).

4. Amendment filed 2-29-2000; operative 3-30-2000 (Register 2000, No. 9).

5. Amendment filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48).

§503. Tournament or Elimination Format Contests -- Selection of Opponents.

Note • History

In any tournament or elimination format contest, the commission shall determine the initial opponents in the first round of the tournament by drawing names at the weigh-in.

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18640, 18763 and 18765, Business and Professions Code.

HISTORY

1. New section filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48).

Article 2. Safety Standards

§510. Weights and Classes.

Note • History

MALES

Flyweight through 125 lbs.

Bantamweight 125.1-135 lbs.

Featherweight 135.1-145 lbs.

Lightweight 145.1-155 lbs.

Welterweight 155.1-170 lbs.

Middleweight 170.1-185 lbs.

Light Heavyweight 185.1-205 lbs.

Heavyweight 205.1-265 lbs.

Super Heavyweight 265.1 lbs. and over

FEMALES

Lightweight through 125 lbs.

Middleweight 125.1-135 lbs.

Light-Heavyweight 135.1-150 lbs.

Heavyweight 150.1-175 lbs.

Super Heavyweight. 175.1 lbs. and over

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18640 and 18765, Business and Professions Code.

HISTORY

1. Renumbering of former article 2 (sections 520-532, not consecutive) to article 3 (sections 520-531, not consecutive), renumbering of former section 505 to section 510 and redesignation of former sections 505-507 to new article 2 (sections 510-513, not consecutive) filed 10-2-84; effective upon filing pursuant to Government Code section 11346.2(d) (Register 84, No. 40).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

3. Amendment filed 9-14-94; operative 10-14-94 (Register 94, No. 37).

4. Amendment filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48).

5. Change without regulatory effect amending section filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§511. Number of Rounds Scheduled.

Note • History

Clubs shall not schedule less than 21 rounds, nor more than 36 rounds, except with the approval of the commission for any one program. A standby bout shall be provided in the event an arranged card breaks down, and if it is necessary to put on another bout in order to meet the minimum requirement.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18725, Business and Professions Code.

HISTORY

1. New section filed 4-30-2012; operative 5-30-2012 (Register 2012, No. 18).

§512. Rounds; Number; Length; Rest Period.

Note • History

(a) Non-title kickboxing bouts shall not exceed 10 rounds, each round not to exceed 3 minutes, with a rest period of not less than one minute nor more than 2 minutes, as specified by the sanctioning body. Except with the approval of the commission, pursuant to Section 18748 of the code, title bouts shall not exceed the maximum length or number of rounds specified in this subsection and in no event shall the rest period between rounds be less than one minute.

(b) Non-title martial arts bouts other than kickboxing shall not exceed 5 rounds, each round not to exceed 5 minutes, with a rest period of not less than one minute nor more than 2 minutes, as specified by the sanctioning body. Except with the approval of the commission, pursuant to Section 18748 of the code, title bouts shall not exceed the maximum length or number of rounds specified in this subsection and in no event shall the rest period between rounds be less than one minute.

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18640 and 18765, Business and Professions Code.

HISTORY

1. Renumbering of former section 506 to section 512 and new NOTE filed 10-2-84; effective upon filing pursuant to Government Code section 11346.2(d) (Register 84, No. 40).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

3. Amendment filed 9-14-94; operative 10-14-94 (Register 94, No. 37).

4. Repealer and new section filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48).

§513. Fighter's Equipment.

Note • History

(a) The ring costume for each fighter on a program shall be approved by the commission and shall include two pairs of trunks and a custom-made individually fitted mouthpiece. Commission staff shall not approve ring costumes that are so similar as to possibly cause confusion as to the identity of the contenders.

(b) A fighter who is participating in a kickboxing contest may, at his or her option, use padded footgear and/or shin protectors. Shoes may not be worn either in martial arts contests or in kickboxing contests.

(c) In addition to the items described in subsection (a), the costume for each male fighter shall include a foul-proof groin protector.

(d) In addition to the items described in subsection (a), the costume for each female fighter shall include a body shirt.

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18640 and 18765, Business and Professions Code.

HISTORY

1. Renumbering and amendment of former section 507 to section 513 filed 10-2-84; effective upon filing pursuant to Government Code section 11346.2(d) (Register 84, No. 40).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

3. Amendment of newly designated subsection (a) and new subsection (b) filed 9-14-94; operative 10-14-94 (Register 94, No. 37).

4. Amendment of section heading and repealer and new section filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48).

§514. Gloves.

Note • History

(a) Fighters in kickboxing contests in all weights up to and including heavyweight class shall wear no less than eight-ounce gloves. In heavier classes, fighters shall wear no less than ten-ounce gloves. When two contestants differ in weight classes, the contestants shall wear the gloves required for the higher weight classification.

(b) A fighter in a martial arts contest shall wear gloves that have no padding in the palm or fingertip area and that are appropriate in weight for the fighter's hand size.

(d) No gloves shall be required for those martial arts disciplines that prohibit striking or punching.

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18640 and 18765, Business and Professions Code.

HISTORY

1. New section filed 9-14-94; operative 10-14-94 (Register 94, No. 37).

2. Amendment filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48).

Article 3. Conduct of Matches, Contests and Exhibitions

§515. Time Between Bouts.

Note • History

Unless written approval is obtained from the commission, a fighter who has competed in a bout or tournament format event anywhere in the world shall not be allowed to compete in this state until seven days have elapsed from the date of that bout or event. This limitation shall not be construed to prohibit a fighter from competing in a tournament format event that requires the fighter to rest a minimum of 30 minutes between bouts. In a tournament format event, a fighter shall be examined by a physician before each bout.

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Section 18765, Business and Professions Code.

HISTORY

1. New section filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48).

§516. Method of Scoring When There Is an Injury Not Resulting from a Foul.

Note • History

If the referee determines that the injured fighter was responsible for his own injury, the referee will not penalize his opponent in any manner. In this case, if the referee or ring physician determines that the injured fighter is unable to continue, he will lose by “technical knockout”.

If the referee determines that no fault was attributable to either fighter, the referee shall allow the injured fighter 5 minutes to recover. If, at the end of the recovery period, the referee or the ringside physician determines that the injured fighter cannot continue, the bout will be decided on the score cards if a majority of the rounds have been completed (including the round in which the injury occurred) or, if a majority of the rounds have not been completed , the bout will be called a technical draw.

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18640 and 18765, Business and Professions Code.

HISTORY

1. New section filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48).

§517. Intentional Fouling.

Note • History

(a) In the case of an intentional foul, the referee may interrupt the bout for the purpose of allowing the injured fighter time to recover. A maximum of five (5) minutes of recovery time will be permitted.

(b) If the injured fighter is thereafter unable to continue, the offending fighter shall be disqualified, his or her purse may be withheld, and he or she may be subject to suspension. Disposition of the purse and the penalty to be imposed upon the fighter shall be determined by action of the commission or the commission's representative.

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18640, 18707 and 18765, Business and Professions Code.

HISTORY

1. New section filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48).

§518. Unintentional Fouling.

Note • History

(a) When a bout is interrupted due to an injury caused by an unintentional foul, the referee, in consultation with the ringside physician, shall determine whether the fighter who has been fouled can continue or not. If the referee sees, or if after consultation with the judges, determines that a fighter is unintentionally fouled and if the fighter's chance of winning has not been seriously jeopardized as a result of a foul, the referee may order the bout continued after a reasonable interval, not to exceed 5 minutes.

(b) If the referee and/or the ringside physician determines that the bout may not continue because of an injury suffered as the result of an unintentional foul or because of an injury inflicted by an unintentional foul which later becomes aggravated by fair blows, the bout shall be declared a draw, if according to the score cards, the bout was determined to be a draw at the time the foul occurred. If, according to the score cards, the fighter committing the foul was winning prior to the foul, the bout shall be declared a technical draw. If, according to the score cards, the fighter being fouled was winning prior to the foul, then that fighter shall be declared the winner.

(c) When an unintentional foul causes the bout to be interrupted for the purpose of allowing the injured fighter time to recover, the referee shall penalize the fighter guilty of the foul one or more points.

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18640 and 18765, Business and Professions Code.

HISTORY

1. New section filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48).

§519. Suspected Fouls.

Note • History

If an injury occurs due to a suspected foul that the referee was unable to see, the referee may, in his sole discretion, confer with the judges to determine where the foul may be placed. He may consider any, all or none of the opinions expressed in making his determination. The referee may, in his sole discretion, ask for a replay, if television equipment is available, of the technique in question before rendering his decision.

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18640 and 18765, Business and Professions Code.

HISTORY

1. New section filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48).

§520. Method of Judging.

Note • History

Referees and judges shall score all contests and determine the winner through the use of the ten-point must system. In this system, the winner of each round receives ten points and the opponent a proportionately less number. If the round is even, each fighter receives ten points. No fraction of points may be given.

At the termination of the contest or the termination of each round, as determined by the commission's representative present at the event, the cards of the judges shall be picked up by the referee and delivered to the commission representative assigned to check the totals. The majority opinion shall be conclusive and if there is no majority then the decision shall be a draw. When the commission representative has completed verifying the score, the ring announcer shall be informed of the decision and shall announce the decision.

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18640, 18761 and 18763, Business and Professions Code.

HISTORY

1. Amendment filed 4-11-80; effective thirtieth day thereafter (Register 80, No. 15).

2. Renumbering and amendment of former article 2 heading to article 3 and amendment of section 520 filed 10-2-84; effective upon filing pursuant to Government Code section 11346.2(d) (Register 84, No. 40).

3. Change without regulatory effect of Note (Register 87, No. 5).

4. Repealer of section text, adoption of new section text and amendment of NOTE filed 9-14-94; operative 10-14-94 (Register 94, No. 37).

5. Repealer of first paragraph filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48).

§521. Minimum Kicking Requirement. [Repealed]

Note • History

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18627 and 18640, Business and Professions Code.

HISTORY

1. Amendment filed 4-11-80; effective thirtieth day thereafter (Register 80, No. 15).

2. Amendment filed 10-2-84; effective upon filing pursuant to Government Code section 11346.2(d) (Register 84, No. 40).

3. Change without regulatory effect of NOTE (Register 87, No. 5).

4. Repealer and new section filed 9-14-94; operative 10-14-94 (Register 94, No. 37).

5. Repealer filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48).

§522. Fouls.

Note • History

(a) Fouls in kickboxing and martial arts. The following tactics are fouls in both kickboxing and martial arts and are forbidden. Use of these tactics shall result in a warning and loss of points as determined by the referee.

(1) Headbutts.

(2) Striking downward using point of the elbow.

(3) Openhand attacks to the eyes or throat or eye gouging.

(4) Striking at that part of the body over the kidney or spine or chopping or striking the back of the neck or head.

(5) Spitting, or, in the referee's discretion, slapping.

(6) The use of abusive language in the ring.

(7) Any unsportsmanlike trick or action that causes any injury to an opponent or referee.

(8) Attacking on the break.

(9) Attacking after the bell or gong has sounded ending the round, or when the opponent is out of the ring.

(10) Intentionally pushing, shoving or wrestling an opponent out of the ring with any part of the body.

(11) Linear kicks to the front or side of the knees.

(12) Continuous dropping of mouthpiece.

(13) Intentional evasion of contact.

(14) Hair pulling.

(15) Attacking or obstructing the trachea.

(16) Clawing, pinching or twisting the flesh or grabbing the clavicle.

(17) Pulling or holding uniform below hipline.

(18) Holding ropes or fence.

(19) Small joint manipulation (e.g. twisting of fingers or toes).

(20) Groin attacks.

(21) Fish hooks.

(22) Biting.

(b) Fouls in kickboxing. The following tactics are fouls in kickboxing and are forbidden. Use of these tactics shall result in a warning and loss of points as determined by the referee.

(1) Arm bars.

(2) Grabbing or holding onto an opponent's leg or foot, and grabbing or holding onto any other part of the body.

(3) Punching or kicking a contestant when he or she is down. A contestant is down when any part of his or her body, other than his or her feet, touch the floor. His or her opponent may continue to attack until the contestant has touched the floor with any part of the body other than the feet.

(4) Leg Checking. (Extending the leg to check an opponent's leg or to prevent him from kicking.).

(5) Purposely going down without being hit.

(6) Any use of throws or any takedowns.

(7) Holding and hitting.

(8) Hitting or slapping with an open glove.

(9) Palm heel strikes to the front of the face (using the heel of the palm of the hand to deliver a blow to the face).

(c) Fouls in martial arts (non-kickboxing). In any martial arts contest other than kickboxing, the following tactics are fouls and are forbidden. Use of these tactics shall result in a warning and loss of points as determined by the referee.

(1) Kicking the head of a contestant when he or she is down.

(2) Spiking (purposely driving an opponent straight to the ring floor on his head or neck from an upright and vertical position).

(3) Using knees to the head of an opponent who is not standing.

(4) Putting a finger into any orifice or into any cut or laceration of an opponent.

(5) Stomping an opponent when the opponent is down.

(d) In addition to or in lieu of losing points, any contestant guilty of any of the foul tactics listed in this section that are applicable to the contestant's sport may be disqualified, his or her purse may be with held from payment, and the contestant may be suspended. Disposition of the purse and the penalty to be imposed upon the contestant shall be determined by action of the commission.

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18640, 18765 and 18768, Business and Professions Code.

HISTORY

1. Amendment filed 4-11-80; effective thirtieth day thereafter (Register 80, No. 15).

2. Amendment filed 10-2-84; effective upon filing pursuant to Government Code section 11346.2(d) (Register 84, No. 40).

3. Change without regulatory effect of NOTE (Register 87, No. 5).

4. Amendment of subsections (a)(4), (a)(6) and (a)(10), repealer of subsection (a)(14) and subsection renumbering, amendment of newly designated subsections (a)(14), (a)(16) and (a)(20), new subsections (a)(15), (a)(21), (a)(22) and (b)(1)-(b)(5) and subsection relettering, and amendment of newly designated subsection (c) filed 9-14-94; operative 10-14-94 (Register 94, No. 37).

5. Amendment filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48).

§523. Ring.

Note • History

(a) For kickboxing contests, the ring or fighting area shall either meet the requirements of Rules 310 through 312, inclusive, or shall meet the requirements of this section; except that subsection (d)(1) permitting a contest to be held in a ring enclosed by a fence shall not apply to kickboxing contests and the commission shall not permit a kickboxing contest to be held in a ring enclosed by a fence. For all other types of martial arts bouts, the ring or fighting area shall either meet the requirements set forth below in this section or shall be held in a ring that meets the requirements set forth in Rules 310 through 312, inclusive.

(b) The ring or fighting area shall be no smaller than 20' by 20' and no larger than 32' by 32'. A ring enclosed by ropes shall be square. The ring floor or floor of the fighting area enclosed by ropes shall extend at least 20 inches beyond the ropes. The ring floor or floor of the fighting area shall be padded in a manner approved by the commission, consistent with the requirements of section 18724 of the code. Padding shall extend beyond the ring or fighting area and over the edge of the platform. The ring or fighting area shall have a canvas covering or similar material, tightly stretched and laced to the ring platform. Vinyl or other plastic rubberized covering will not be permitted. There shall not be any obstruction or object, including but not limited to a triangular border, on any part of the ring floor.

(c) The ring platform shall not be more than four feet above the floor of the building. A ring enclosed by ropes shall have three sets of suitable steps or ramps, one for use by each of the fighters and one for use by the officials. A ring enclosed by a fence shall have two sets of suitable steps or ramps for use by the fighters and the officials. Ringside tables shall be no higher than ring platform level. Ring posts for a ring enclosed by ropes shall be of metal, not less than 3” nor more than 6” in diameter, extending from the floor of the building to a maximum height of 6” above the highest horizontal rope above the ring floor. Ring posts for a ring enclosed by ropes shall be separated from the ring ropes by at least 18 inches. The posts for a ring enclosed by a fence shall extend from the floor to the top of the fighting area and shall be no less than 66” and no more than 78” above the floor of the fighting area. All posts shall be properly padded in a manner approved by the commission.

(d) The ring shall be enclosed by either of the following:

(1) A fence made of such material as will not allow a fighter to fall out or break through it on to the floor or spectators, including but not limited to vinyl-coated chain link. However, the enclosure shall not obstruct or limit the supervision and regulation of the bout by the officials or commission representatives. All metal parts shall be covered and padded in a manner approved by the commission and shall not be abrasive to the fighters.

(2) Five horizontal ropes not less than 1 inch in diameter and wrapped in soft material. The lowest rope to be not less than 5 inches nor more than 8 inches above the floor. The second rope to be not less than 8 inches nor more than 12 inches above the lowest rope. The top three ropes to be spaced equal distance apart and not less than 12 inches nor more than 14 inches from each other. The lowest rope shall have applied around it a padding of a thickness of not less than 1/2 inch. The horizontal ropes shall be tied together by vertical ropes not less than 1/4 inch in diameter. If a ring is less than 24' by 24', there shall be two (2) vertical ropes, spaced equal distance apart, on each side of the ring. If a ring is 24' by 24' or greater, there shall be three (3) vertical ropes, spaced equal distance apart, on each side of the ring. The lowest portion of each vertical rope, between the lowest horizontal rope and second rope, shall have applied around them a padding of a thickness of not less than 1/4 inch.

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18724 and 18765, Business and Professions Code.

HISTORY

1. New section filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48). For prior history, see Register 80, No. 15.

2. Amendment filed 1-17-2007; operative 1-17-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 3).

3. Amendment of subsection (a) filed 4-6-2009; operative 4-6-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 15).

§524. Sanitation.

Note • History

The promoter of the event is responsible for ensuring that acceptable sanitary standards are met with respect to dressing rooms, water bottles, towels or other equipment. Physicians and commission representatives shall specifically check at every event for violations of these rules. The ring shall be swept, dry-mopped, or otherwise adequately cleaned before the event and prior to each fight.

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18724 and 18765, Business and Professions Code.

HISTORY

1. New section filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48). For prior history, see Register 84, No. 40.

§525. Procedure Where Failure to Compete. [Repealed]

History

HISTORY

1. Repealer filed 10-2-84; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 84, No. 40).

§526. Failure to Resume Contest. [Repealed]

History

HISTORY

1. Repealer filed 10-2-84; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 84, No. 40).

§527. Wiping Gloves. [Repealed]

History

HISTORY

1. Repealer filed 10-2-84; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 84, No. 40).

§528. Method of Counting over a Contestant Who Is Down. [Repealed]

History

HISTORY

1. Repealer filed 10-2-84; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 84, No. 40).

§529. Resuming Count. [Repealed]

History

HISTORY

1. Repealer filed 10-2-84; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 84, No. 40).

§530. Communication of Counting for Knockdowns -- Kickboxing.

Note • History

As soon as a fighter in a kickboxing contest has been knocked down, the official timekeeper shall begin calling the count (from 1 to 10) while the referee directs the opponent to a neutral corner. After the referee has directed the opponent to a neutral corner, he shall return to the fallen fighter and shall count over him, picking up the count from the timekeeper.

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18640 and 18765, Business and Professions Code.

HISTORY

1. Amendment filed 10-2-84; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 84, No. 40).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

3. Amendment of section heading and section filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48).

§531. Standing Eight-Count -- Kickboxing.

Note • History

The referee may, at his discretion, administer an eight-count to a contestant in a kickboxing contest who is in trouble but who is still standing. He shall direct the opponent to a neutral corner, then begin counting from 1 to 8, examining the contestant in trouble as he counts. If, after completing the standing eight-count, the referee determines that the contestant is not able to continue, he shall stop the contest and declare the opponent the winner by technical knockout.

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18640 and 18765, Business and Professions Code.

HISTORY

1. Amendment filed 10-2-84; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 84, No. 40).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

3. Amendment of section heading and section filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48).

§532. Change of Decision. [Repealed]

History

HISTORY

1. Repealer filed 10-2-84; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 84, No. 40).

§533. Championship Matches and Exhibitions.

Note • History

Recognizing that different forms of martial arts exist, notwithstanding any rule in this division to the contrary, the commission may, in its discretion, authorize alternate rules or provisions from time to time for full contact martial arts championships and exhibitions so long as the safety and welfare of the contestants and the public are not jeopardized.

NOTE

Authority cited: Sections 18611 and 18763, Business and Professions Code. Reference: Sections 18640 and 18765, Business and Professions Code.

HISTORY

1. New section filed 9-14-94; operative 10-14-94 (Register 94, No. 37).

2. Amendment filed 11-28-2005; operative 12-28-2005 (Register 2005, No. 48).

3. Change without regulatory effect repealing subsection (a) designator filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

Article 4. License Requirements

§541. Promoter's License.

Note • History

In order to be issued a promoter's license, an applicant shall meet all the following requirements:

(a) The applicant, or at least one principal of the applicant if the applicant is a corporation or partnership, shall meet the requirements for licensure as a matchmaker, or in the alternative submit evidence that the promoter employs a licensed matchmaker.

(b) Provide evidence that the promoter will have complete control over the sale of tickets, collection of tickets, counting of tickets, and preparation of revenue reports, and supervision over the box office employees, ticket takers and ushers and security for each event promoted. In the alternative, a promoter may submit for review by the commission an agreement between the promoter and the facility in which events will be conducted relating to the sale and accounting of tickets and revenues, preparation of required reports, the supervision of box office employees, ticket takers and ushers, and security of each event.

(c) Provide evidence that the facility or facilities in which events will be held meet state and local fire and safety requirements and have dressing rooms and facilities which meet the requirements of Rules 292, 293 and 294.

(d) Pass a written examination administered by the commission on the fundamentals of martial arts and kickboxing and California law and regulations relating to martial arts and kickboxing.

NOTE

Authority cited: Sections 18611, 18763 and 18765, Business and Professions Code. Reference: Sections 18640, 18648, 18763 and 18765, Business and Professions Code.

HISTORY

1. New section filed 12-17-86, effective thirtieth day thereafter (Register 86, No. 51).

2. Change without regulatory effect amending subsection (b) filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§542. Matchmaker's License.

Note • History

In order to be licensed as a matchmaker, an applicant shall pass a written examination administered by the commission on California law and regulations relating to martial arts and kickboxing, and shall have been involved in matchmaking in at least five (5) amateur events. The examination may be waived if the applicant possesses a current and valid license as a matchmaker in another state or country and has not been subject to any disciplinary action.

NOTE

Authority cited: Sections 18611, 18763 and 18765, Business and Professions Code. Reference: Sections 18640, 18648, 18763 and 18765, Business and Professions Code.

HISTORY

1. New section filed 12-17-86, effective thirtieth day thereafter (Register 86, No. 51).

2. Amendment filed 9-14-94; operative 10-14-94 (Register 94, No. 37).

§543. Referee's License.

Note • History

In order to be licensed as a referee, an applicant shall meet all the following requirements:

(a) Have two years of documented experience refereeing martial arts or kickboxing matches with a minimum of 100 matches with a minimum of 100 matches refereed. It is not necessary that this experience be obtained by refereeing professional contests.

(b) Be found after examination by a licensed physician to be physically and mentally fit to referee a martial arts contest and to have uncorrected visual acuity of at least 20/100 in both eyes. Weight shall be proportionate to height in accordance with the standards of the American Medical Association in effect at the time of the effective date of this regulation.

(d) Pass a written examination administered by the commission on the fundamentals of martial arts and kickboxing, refereeing and judging martial arts matches and contests, and California law and regulations relating to martial arts and kickboxing.

(e) Perform a demonstration of competency by performing as a referee in a martial arts match before a representative of the commission and two licensed referees. The applicant shall demonstrate knowledge of refereeing techniques and the ability to manage and control a martial arts match.

(f) Perform a demonstration of competence in judging by judging at least 50 martial arts or kickboxing contests as verified by a representative of the commission.

(g) These requirements may be waived for any applicant who is licensed or approved as a referee by the Professional Kickboxing Association or the World Kickboxing Association.

(h) In order to renew a referee's license, a referee shall comply with subsections (b) and (c) in addition to any other requirements for renewal set forth in the law or these regulations.

NOTE

Authority cited: Sections 18611, 18763 and 18765, Business and Professions Code. Reference: Sections 18640, 18648, 18763 and 18765, Business and Professions Code.

HISTORY

1. New section filed 12-17-86, effective thirtieth day thereafter (Register 86, No. 51).

§544. Manager's Application.

Note • History

In order to be issued a manager's license, an applicant shall pass a written examination administered by the commission on the fundamentals of martial arts and kickboxing and California law and regulations relating to martial arts and kickboxing. The examination may be waived if the applicant possesses a current and valid license as a martial arts and kickboxing manager in another state or country and has not been subject to any disciplinary action.

NOTE

Authority cited: Sections 18611, 18763 and 18765, Business and Professions Code. Reference: Sections 18640, 18648, 18763 and 18765, Business and Professions Code.

HISTORY

1. New section filed 12-17-86, effective thirtieth day thereafter (Register 86, No. 51).

§545. Second's License.

Note • History

In order to be issued a second's license, an applicant shall meet all the following requirements:

(a) Pass a written examination administered by the commission on the fundamentals of martial arts and kickboxing and California laws and regulations relating to martial arts and kickboxing.

(b) Perform a demonstration of competency by demonstrating the duties of a second before a representative of the commission.

(c) The examination and demonstration of competency may be waived if the applicant possesses a current and valid license as a martial arts and kickboxing second in another state or country and has not been subject to any disciplinary action.

NOTE

Authority cited: Sections 18611, 18763 and 18765, Business and Professions Code. Reference: Sections 18640, 18648, 18763 and 18765, Business and Professions Code.

HISTORY

1. New section filed 12-17-86, effective thirtieth day thereafter (Register 86, No. 51).

2. Change without regulatory effect redesignating former subsections (a)(2) and (a)(3) as subsections (b) and (c) filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§546. Professional Martial Arts Fighter's License--HIV/HBV Testing.

Note • History

(a) As used in Section 18712(a) of the code:

(1) The phrase “within 30 days prior to the date of application” means that the blood test will be accepted for licensure purposes for 30 days from the date of the test report.

(b) The tests described in Section 18712 of the code shall be referred to collectively as the “HIV/HBV tests.”

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18712, Business and Professions Code.

HISTORY

1. New section filed 6-16-97; operative 6-16-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 25).

2. Repealer and new subsection (a)(1) filed 3-20-2001; operative 4-19-2001 (Register 2001, No. 12).

Chapter 3. Amateur Boxing Rules

§600. Citation.

Note • History

The rules in this subchapter shall be cited as the “Amateur Boxing Rules.”

NOTE

Authority and reference cited: Section 18611, Business and Professions Code.

HISTORY

1. New section filed 2-24-89; operative 3-26-89 (Register 89, No. 10). For prior history, see Register 87, No. 5.

§601. Professional Boxing Rules Apply.

Note • History

The rules of the commission pertaining to professional boxing shall apply to amateur boxing unless the club or organization obtains a law and rule waiver under Section 18646 of the code or the professional boxing rules are inconsistent with these Amateur Boxing Regulations or the provisions of the Boxing Act pertaining to amateur boxing.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Amendment filed 2-24-89; operative 3-26-89 (Register 89, No. 10).

§602. Certification. [Repealed]

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code.

HISTORY

1. Repealer filed 2-24-89; operative 3-26-89 (Register 89, No. 10).

§603. Examination, Ring Names.

Note • History

No amateur shall be permitted to take part in a boxing contest unless the following conditions are met:

(a) All amateurs shall enter and compete in all boxing contests or tournaments under their own names. The use of a ring name is prohibited.

(b) No person who has attained the age of 36 years shall be issued an amateur license except by special permission of the commission. The commission may, in its discretion, require (1) an extensive physical examination including possible EKG, neurological examination and heart stress test; (2) a demonstration of proficiency in the ring by a gym exhibition witnessed by a qualified commission employee; and (3) a personal appearance before the commission and such other examinations as the commission may deem appropriate. The applicant shall bear the expense of any medical examination required by the commission in connection with his or her application for licensure.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18642, 18646, 18661 and 18710, Business and Professions Code.

HISTORY

1. Amendment filed 10-3-68; effective thirtieth day thereafter (Register 68, No. 37).

2. Amendment filed 4-14-72; effective thirtieth day thereafter (Register 72, No. 16).

3. Repealer and new subsection (f) filed 3-9-79; effective thirtieth day thereafter (Register 79, No. 10).

4. Change without regulatory effect of NOTE (Register 87, No. 5).

5. Amendment filed 2-24-89; operative 3-26-89 (Register 89, No. 10).

§604. Annual Physical Examination. [Repealed]

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code.

HISTORY

1. Repealer filed 2-24-89; operative 3-26-89 (Register 89, No. 10).

§605. Records. [Repealed]

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code.

HISTORY

1. Repealer filed 2-24-89; operative 3-26-89 (Register 89, No. 10).

§606. Registration Fee. [Repealed]

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code.

HISTORY

1. Repealer filed 2-24-89; operative 3-26-89 (Register 89, No. 10).

§607. Bonds. [Repealed]

History

HISTORY

1. Repealer filed 12-4-81; effective thirtieth day thereafter (Register 81, No. 49).

2. Change without regulatory effect of NOTE (Register 87, No. 5).

§608. Gymnasiums. [Repealed]

History

HISTORY

1. Repealer filed 10-3-68; effective thirtieth day thereafter (Register 68, No. 37).

§609. Medical Insurance.

Note • History

(a) Any amateur club or promoter licensed by the commission shall maintain a short term medical assistance insurance policy approved by the commission for all amateur boxers participating in a match conducted by the amateur club or promoter.

(b) “Short term medical assistance insurance” as used in this section, refers to coverage or payment of direct expenses of medical treatment, including emergency aid, diagnostic procedures, drugs, surgical procedures and physical therapy, arising directly from injuries incurred during an amateur boxing match in California which has been approved by the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18641, Business and Professions Code.

HISTORY

1. Amendment filed 2-24-89; operative 3-26-89 (Register 89, No. 10).

2. Change without regulatory effect designating first paragraph as subsection (a) filed 3-17-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 11).

§610. Equipment. [Repealed]

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code.

HISTORY

1. Repealer filed 2-24-89; operative 3-26-89 (Register 89, No. 10).

§611. Gloves. [Repealed]

History

HISTORY

1. Repealer filed 9-28-76; effective thirtieth day thereafter (Register 76, No. 40).

§612. Officials. [Repealed]

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code.

HISTORY

1. Repealer filed 2-24-89; operative 3-26-89 (Register 89, No. 10).

§613. Professional Boxing Promoters.

Note • History

No professional boxing promoter shall be allowed to promote or conduct any amateur boxing contest unless the promoter is licensed to promote amateur contests.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641 and 18646, Business and Professions Code.

HISTORY

1. Amendment filed 2-24-89; operative 3-26-89 (Register 89, No. 10).

§614. Matchmaker. [Repealed]

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code.

HISTORY

1. Amendment filed 10-3-68; effective thirtieth day thereafter (Register 68, No. 37).

2. Repealer filed 2-24-89; operative 3-26-89 (Register 89, No. 10).

§615. Boxer Down. [Repealed]

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code.

HISTORY

1. Repealer filed 2-24-89; operative 3-26-89 (Register 89, No. 10).

§616. Resuming Boxing. [Repealed]

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code.

HISTORY

1. Repealer filed 2-24-89; operative 3-26-89 (Register 89, No. 10).

§617. Drawing for Tournaments. [Repealed]

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code.

HISTORY

1. Repealer filed 224-89; operative 3-26-89 (Register 89, No. 10).

§618. Seconds.

Note • History

Each competitor who has no coach shall have one licensed second who may be furnished by the club. A coach or handler of amateur boxers shall be a licensed second or manager.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18642 and 18646, Business and Professions Code.

HISTORY

1. Amendment filed 4-14-72; effective thirtieth day thereafter (Register 72, No. 16).

2. Amendment filed 2-24-89; operative 3-26-89 (Register 89, No. 10).

§619. Referee. [Repealed]

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code.

HISTORY

1. Repealer filed 2-24-89; operative 3-26-89 (Register 89, No. 10).

§620. Winner.

A winner shall be declared in tournaments, but in matched contests where both boxers have an equal number of points a draw decision may be given. Referee and/or judges shall score.

§621. Tampering with Amateur. [Repealed]

History

HISTORY

1. Repealer filed 9-10-75; effective thirtieth day thereafter (Register No. 75, No. 37).

§622. Transportation Expenses. [Repealed]

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code.

HISTORY

1. Repealer filed 2-24-89; operative 3-26-89 (Register 89, No. 10).

§623. Advance Notice.

Note • History

Advance notices for all amateur shows shall be filed in the office of the commission at least five days before the date of each show.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18641, Business and Professions Code.

HISTORY

1. Amendment filed 10-3-68; effective thirtieth day thereafter (Register 68, No. 37).

2. Amendment filed 2-24-89; operative 3-26-89 (Register 89, No. 10).

Chapter 4. Amateur Full-Contact Martial Arts

Article 1. General Provisions

§700. Citation.

Note • History

The rules in this chapter shall be cited and referred to as the “Amateur Full-Contact Martial Arts and Kickboxing Rules.”

NOTE

Authority cited: Section 18763, Business and Professions Code. Reference: Section 18763, Business and Professions Code.

HISTORY

1. Renumbering of former chapter 4 to new chapter 5, new chapter 4, article 1 and section filed 8-2-94; operative 9-1-94 (Register 94, No. 31).

§702. Professional Full-Contact Martial Arts and Kickboxing Rules Apply.

Note • History

The Professional Full-Contact Martial Arts and Kickboxing Rules (Chapter 2 of this division.) shall apply to amateur full-contact martial arts and kickboxing, unless a club or organization obtains a waiver of the applicable laws and rules under Section 18646 of the code or unless they are clearly inconsistent with the rules contained in this chapter.

NOTE

Authority cited: Section 18763, Business and Professions Code. Reference: Section 18763, Business and Professions Code.

HISTORY

1. New section filed 8-2-94; operative 9-1-94 (Register 94, No. 31).

§705. Classes of Amateur Contestants.

Note • History

(a) Novice Class. Any contestant who has participated in three or less full-contact martial arts or kickboxing contests approved by the commission may be in the Novice Class.

(b) Open Class. Any contestant who has participated in more than three full contact martial arts or kickboxing contests approved by the commission shall be in the Open Class.

NOTE

Authority cited: Section 18763, Business and Professions Code. Reference: Sections 18640 and 18765, Business and Professions Code.

HISTORY

1. New section filed 8-2-94; operative 9-1-94 (Register 94, No. 31).

Article 2. Safety Standards

§710. Contestants' Equipment.

Note • History

In addition to that equipment required in Section 513 of these regulations, every contestant shall wear all of the following during a contest or match:

(a) At least ten (10) ounce gloves;

(b) If the contestant is in the Novice class, headgear that is approved by the Amateur Boxing Federation or an equivalent organization.

(c) Padded shin guards that extend from the ankle or instep to the top of the shin, and a safety boot that covers the toes.

NOTE

Authority cited: Section 18763, Business and Professions Code. Reference: Sections 18640 and 18765, Business and Professions Code.

HISTORY

1. New article 2 and section filed 8-2-94; operative 9-1-94 (Register 94, No. 31).

§711. Headgear; Under 18.

Note • History

In addition to that equipment required in Section 513 and 710 of these regulations, every contestant in the Open Class who is under 18 years of age may wear a headgear that is approved by the Amateur Boxing Federation or an equivalent organization during a contest or match.

NOTE

Authority cited: Section 18763, Business and Professions Code. Reference: Sections 18640 and 18766, Business and Professions Code.

HISTORY

1. New section filed 8-2-94; operative 9-1-94 (Register 94, No. 31).

Article 3. Conduct of Matches and Contests

§720. Number of Rounds.

Note • History

(a) The maximum number of rounds allowed for any contestant in the Novice Class shall not exceed three two-minute rounds with a one-minute rest period between rounds.

(b) The maximum number of rounds allowed for any contestant in the Open Class shall not exceed five two-minute rounds with a one-minute rest period between rounds.

NOTE

Authority cited: Section 18763, Business and Professions Code. Reference: Sections 18640 and 18765, Business and Professions Code.

HISTORY

1. New article 3 and section filed 8-2-94; operative 9-1-94 (Register 94, No. 31).

§723. Kicks; Novice Class.

Note • History

Between contestants in the Novice Class, the only kicks allowed are to the outside of the legs or boot and kicks to the upper body. All other kicks shall be considered a foul.

NOTE

Authority cited: Section 18763, Business and Professions Code. Reference: Sections 18640 and 18765, Business and Professions Code.

HISTORY

1. New section filed 8-2-94; operative 9-1-94 (Register 94, No. 31).

Chapter 5. Wrestling Rules

Article 1. General Provisions

§800. Citation of Wrestling Rules.

Note • History

The rules in this subchapter shall be cited as the “Wrestling Rules.”

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18611, Business and Professions Code.

HISTORY

1. Repealer of subchapter 3 (§§ 800 through 838 and new subchapter 3 (§§ 800 through 827) filed 6-30-64; effective thirtieth day thereafter (Register 64, No. 14). For prior history, see note to section 201 and Register 62, No. 1.

2. Renumbering of former subchapter 3 to subchapter 4 filed 10-2-84; effective upon filing pursuant to Government Code section 11346.2(d) (Register 84, No. 40).

3. Renumbering of former section 800 to section 815 and new section 800 filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

4. Renumbering of chapter 4 to chapter 5 filed 8-2-94; operative 9-1-94 (Register 94, No. 31).

§801. Definitions.

Note • History

As used in this subchapter,

(a) “commission” means the State Athletic Commission.

(b) “code” means the Business and Professions Code.

(d) The terms “promoter” and “club” are synonymous and mean and include any person, partnership, club, corporation, organization, or association conducting, holding or giving wrestling exhibitions.

(e) the masculine gender includes the feminine gender.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18611, 18620, 18621 and 18622, Business and Professions Code.

HISTORY

1. Amendment filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

§802. Professional Boxing Rules Applicable.

Note • History

The following professional boxing rules when otherwise appropriate shall apply to wrestling: 202, 204, 205, 206, 210, 211, 212, 214, 218, 252, 253, 254, 260, 261, 262, 263, 264, 266, 267, 268, 269, 271, 272, 273, 274, 276, 277, 292, 293, 294, 390, 391, 392, 395 and 399.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Amendment filed 10-3-68; effective thirtieth day thereafter (Register 68, No. 37).

2. Amendment filed 12-4-81; effective thirtieth day thereafter (Register 81, No. 49).

3. Amendment filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

Article 2. Wrestler's License

§803. Age Limitations and Requirements.

Note • History

(a) No wrestler's license shall be issued to any person under 18 years of age.

(b) All applications for a wrestler's license shall be in writing on a form furnished by the commission. Any person who gives incorrect information in an application for a wrestler's license may have his license revoked by the commission, and any purse to which he might otherwise be entitled may be confiscated.

(c) All applicants for a wrestler's license shall be found after examination by a licensed physician to be physically and mentally fit to wrestle in a match or event and to have an uncorrected visual acuity of at least 20/100 in both eyes.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18642, 18648, 18660 and 18702, Business and Professions Code.

HISTORY

1. Amendment filed 7-27-71; effective thirtieth day thereafter (Register 71, No. 30).

2. Amendment filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

3. Amendment filed 12-17-86; effective thirtieth day thereafter (Register 86, No. 51).

Article 3. Ring

§804. Ring Construction and Equipment.

The size, construction, and equipment of wrestling rings shall be as approved by the commission.

The ring floor shall be padded to a thickness as approved by the commission. A one-piece wrestling mat or soft padding may be used with a top covering of clean canvas tightly stretched and laced to the ring platform.

Any mat or padding and canvas covering which has been used for boxing matches shall not be used for wrestling exhibitions until the mat or the canvas covering has been washed and is free from resin.

The promoter shall keep the mat or padding and covering in a clean and sanitary condition.

Article 4. Referee

§805. Referee's Physical.

History

All referees shall be examined annually to establish their physical fitness. No referee's license shall be issued to a person who has attained the age of 60 years except by special action of the commission.

HISTORY

1. Amendment filed 3-26-71; effective thirtieth day thereafter (Register 71, No. 13).

2. Amendment filed 7-27-71; effective thirtieth day thereafter (Register 71, No. 31).

§805.1. License Requirement.

Note • History

In order to be licensed as a wrestling referee, an applicant shall be found after examination by a licensed physician to be physically and mentally fit to referee a wrestling match or event and to have an uncorrected visual acuity of at lease 20/100 in both eyes.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18642 and 18648, Business and Professions Code.

HISTORY

1. New Section filed 12-17-86; effective thirtieth day thereafter (Register 86, No. 51).

§806. Selection of Referee by Club.

Note • History

At any wrestling club where the promoter appoints the referee licensed by the commission, the announcer shall announce, prior to the commencement of the wrestling exhibition, that the wrestling promoter has appointed the referee by using the following language: “The referee of this wrestling event was appointed by (insert the name of the wrestling club).”

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18877, Business and Professions Code.

HISTORY

1. Repealer of former Section 806 and renumbering and amendment of former Section 828 to Section 806 filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43). For history of former section, see Register 64, No. 14.

§807. Dangerous Conduct; Punishment.

Note • History

The referee shall not permit physically dangerous conduct or tactics by any wrestler. Any wrestler who fails to discontinue such tactics, after being warned by the referee, shall be disqualified and subject to disciplinary action.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18777 and 18841, Business and Professions Code.

HISTORY

1. Amendment filed 10-3-68; effective thirtieth day thereafter (Register 68, No. 37).

2. Amendment filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

Article 5. Timekeeper

§808. Timekeeper.

Note • History

There shall be a timekeeper appointed by the promoter present at all exhibitions. He shall officially keep time and follow the instructions of the referee.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Amendment filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

§809. Timekeeper's Duties.

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code.

HISTORY

1. Repealer filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

§810. Periods.

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code.

HISTORY

1. Repealer filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43)

§811. Time Limit Exhibitions.

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code.

HISTORY

1. Repealer filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

Article 6. Club Physician

§812. Club Physician's Duties.

Note • History

A club physician approved by the commission shall examine all wrestlers and referees before they enter the ring for an exhibition and shall be present during the exhibition. No wrestler shall be permitted to wrestle who is suffering from any illness. The physician shall report to the commission any wrestler or referee examined proven unfit for participating in a wrestling exhibition. Such wrestler or referee shall be suspended until it is shown that he is fit for further participation in a wrestling exhibition.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18646, 18705 and 18706, Business and Professions Code.

HISTORY

1. Amendment filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

§813. Physical Examination of Wrestlers.

Note • History

Any wrestler applying for a license, or annual renewal thereof, shall be examined by a physician who is licensed in California or any other state and who is approved by the commission to establish physical fitness.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18642 and 18648, Business and Professions Code.

HISTORY

1. Amendment filed 10-3-68; effective thirtieth day thereafter (Register 68, No. 37).

2. Amendment filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

Article 7. Promoters and Exhibitions

§814. Advance Notice.

Note • History

At least seven days before wrestling exhibitions, the promoter shall furnish the commission an advance notice giving the names of the wrestlers to be used in the exhibitions.

The commission shall be promptly notified of any changes or additions to this notice. The forms for this notice shall be furnished by the commission. Notice of any change in announced or advertised wrestling programs or wrestling exhibitions shall be given to the press if there is sufficient time and an announcement shall be made prior to the program indicating the change and advising patrons desiring refunds to present their tickets to the box office at once. The box office shall remain open a reasonable length of time to redeem such tickets.

NOTE

Authority cited: Sections 18624, 18682 and 18751, Business and Professions Code. Reference: Sections 18670 and 18748.5, Business and Professions Code.

HISTORY

1. Repealer and new section filed 7-19-66; effective thirtieth day thereafter (Register 66, No. 23).

2. Amendment filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

§815. Wrestling Exhibitions.

Note • History

Unless a special license is obtained, all professional wrestling programs under the supervision and authority of the commission are exhibitions only, and not contests, and any such exhibitions cannot be advertised or announced as contests.

NOTE

Authority cited: Sections 18624, 18682 and 18751, Business and Professions Code.

HISTORY

1. Renumbering of former Section 800 to Section 815 filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43). For history of former section, see Register 81, No. 49.

§816. Duties of Licensees.

Note • History

It shall be the duty of the referee, promoter, and his agents, attaches and employees, and the participants in any wrestling exhibition to maintain peace and order in the conduct of any exhibition. There shall be no abuse of a commission official at any time.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18777, Business and Professions Code.

HISTORY

1. Repealer of former Section 816 and renumbering and amendment of former Section 825 to Section 816 filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43). For history of former section, see Registers 84, No. 40 and No. 64.

§817. Promoter's License.

Note • History

In order to be issued a wrestling promoter's license, an applicant shall meet all the following requirements:

(a) Provide evidence that the promoter will have complete control over the sale of tickets, collection of tickets, counting of tickets, and preparation of revenue reports, and supervision over the box office employees, ticket takers and ushers and security for each event promoted. In the alternative a promoter may submit for review by the commission an agreement between the promoter and the facility in which events will be conducted relating to the sale and accounting of tickets and revenues, preparation of required reports, the supervision of box office employees, ticket takers, ushers, and security of each event.

(b) Provide evidence that the facility or facilities in which events will be held meet state and local fire and safety requirements and have dressing rooms and facilities which meet the requirements of Rules 292, 293 and 294.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18641 and 18648, Business and Professions Code.

HISTORY

1. New section filed 12-17-86; effective thirtieth day thereafter (Register 86, No. 51).

Article 8. Costumes for Wrestlers

§818. Wrestlers' Appearance.

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code.

HISTORY

1. Repealer filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

Article 9. Contracts

§819. Contracts.

Note • History

Any contract or agreement between a wrestler and a promoter and/or booking agent shall be in writing, signed by all parties and made available to the commission on demand.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640 and 18641, Business and Professions Code.

HISTORY

1. Amendment filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

Article 10. Accounts

§820. Records.

Note • History

Promoters, booking agents, managers and others licensed in connection with the promotion of wrestling exhibitions, shall maintain a full, true and accurate set of books of account and other records of receipts and disbursements in connection with all exhibitions, and the records shall at all times be open to the inspection and audit by representatives of the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Sections 18640, 18824, 18825 and 18826, Business and Professions Code.

HISTORY

1. Amendment filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

§821. Payment of Wrestlers.

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code.

HISTORY

1. Repealer filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

Article 11. Booking Agents

§822. Booking Agent.

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code.

HISTORY

1. Repealer filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

§823. Wrestler Must Indicate Authorized Booking Agent.

Note • History

NOTE

Authority cited: Section 18611, Business and Professions Code.

HISTORY

1. Repealer filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

Article 12. Miscellaneous Provisions

§824. Responsibility of Club.

Note • History

(a) Each club shall be directly responsible to the commission for the conduct of its employees, and any violation of the act or of the rules and regulations of the commission by any employee of a club shall be deemed to be a violation by the club.

(b) Clubs and booking agents, if any, are responsible for any violations of the act or commission rules by their wrestlers.

NOTE

Authority cited: Sections 18624, 18670, and 18682, Business and Professions Code. Reference: Sections 18670 and 18682, Business and Professions Code.

HISTORY

1. Amendment filed 12-4-81; effective thirtieth day thereafter (Register 81, No. 49).

§825. Duties of Licensees.

History

HISTORY

1. Renumbering and amendment of former Section 825 to Section 816 filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43). For history of former Section, see Registers 84, No. 40 and 64, No. 14.

§826. Discrimination.

Note • History

There shall be no discrimination against any participant on account of sex, race, color or creed.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. Amendment filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

§827. Women Wrestlers Prohibited.

History

HISTORY

1. Repealer filed 10-3-68; effective thirtieth day thereafter (Register 68, No. 37).

§828. Selection of Referee by Club.

Note • History

NOTE

Authority cited: Section 18624, Business and Professions Code. Reference: Section 18743.3, Business and Professions Code.

HISTORY

1. New section filed 5-23-66; effective thirtieth day thereafter (Register 66, No. 15).

2. Renumbering and amendment of former Section 828 to Section 806 filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

§829. Postponement or Cancellation.

Note • History

A small advance sale shall not be regarded as legitimate reason for a postponement. Indoor wrestling shows shall not be cancelled for any reason except with the written approval of the commission.

NOTE

Authority cited: Section 18611, Business and Professions Code. Reference: Section 18640, Business and Professions Code.

HISTORY

1. New section filed 10-17-86; effective thirtieth day thereafter (Register 86, No. 43).

Division 3. Bureau of Home Furnishings

(Originally Printed 3-22-45)

Article 1. General Provisions

§1100. Location of Offices.

Note • History

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Section 19034, Business and Professions Code.

HISTORY

1. Amendment filed 8-17-66; effective thirtieth day thereafter (Register 66, No. 27). For prior history, see Register 56, No. 15.

2. Amendment filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

3. Amendment of NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

4. * Repealer of Article 1 (Sections 1100-1119.2, not consecutive) and new Article 1 (Sections 1100-1121) filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42). For prior history, see Registers 81, Nos. 50 and 11; 74, No. 19; 66, No. 27; and 63, No. 25.

5. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1101. Definitions of Bureau and Act.

Note

For the purposes of these rules and regulations, the term “Bureau” means the Bureau of Home Furnishings, and the term “act” means Chapter 3 of Division 8 of the Business and Professions Code, which chapter is also cited as the Home Furnishings Act.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19000 and 19004, Business and Professions Code.

§1102. Scope.

Note

It is hereby declared to be the purpose of these regulations and the policy, intent and direction of the Bureau to employ the terms, definitions and nomenclature as are commonly used, and as recognized in the manufacture, sale and distribution of furniture and bedding products. Classifications of materials in these regulations are intended to have understandable meaning to the ultimate consumer.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Section 19034, Business and Professions Code.

§1103. “Separate Service to the Trade.”

Note • History

As used in Section 19014 of the act, includes any of the following services by the parent house, when rendered by a subsidiary establishment:

(a) Sale of Goods. Except for the display and sale of goods in an established furniture mart or exchange when the subsidiary establishment is the principal place of business of the wholesaler maintaining the display and service.

(b) Delivery of goods sold in the subsidiary establishment with local stock and independent of the parent house.

(d) Entire or partial billing and collection for goods sold and delivered.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Section 19014, Business and Professions Code.

HISTORY

1. Amendment filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1104. The Term “On His or Her Own Account.”

Note • History

As used in Sections 19060.5 and 19060.6 of the act, the term “on his or her own account” is intended to limit the requirement for a license to the person who is obligated as a principal in contracts to sell or contracts to render services. The requirement for a license does not extend to salesmen, factors, agents, solicitors, factory representatives or those who act only in a representative capacity for others.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19060.5 and 19060.6, Business and Professions Code.

HISTORY

1. Amendment of section heading and section filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

§1105. Exemptions.

Note

Articles which are not clearly upholstered furniture or bedding, as described in the act, may be declared exempt from the provisions of the act and these regulations, except that when exempted articles are labeled they become subject to the act and the regulations and must be labeled in conformity therewith. No questionable articles shall be considered as exempt, however, until the articles or photographs thereof, have been submitted to the Bureau for inspection and final authority for exemption has been granted.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19006, 19007 and 19034, Business and Professions Code.

§1106. Applications for License and Renewal Applications.

Note • History

NOTE

Authority cited: Sections 19034 and 19050, Business and Professions Code. Reference: Section 19050, Business and Professions Code.

HISTORY

1. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1107. License Fees.

Note • History

(a) Except as provided in subsection (b) herein, the fees for the issuance and biennial renewal of the following licensing categories shall be fixed as follows:

(1) Importer's license $650

(2) Furniture and bedding manufacturer's license 650

(3) Wholesale furniture and bedding dealer's license 540

(4) Supply dealer's license 540

(5) Custom upholsterer's license 360

(6) Sanitizer's license 360

(7) Retail furniture dealer's license 120

(8) Retail bedding dealer's license 120

(9) Retail furniture and bedding dealer's license 240

(b) The reduction or waiver of any license fee shall be made only in accordance with subsections (b) and (c) of section 19170 of the Business and Professions Code.

(c) The delinquency fee and additional penalty fees are those specified in section 19170.5 of the Business and Professions Code.

NOTE

Authority cited: Sections 19034 and 19170, Business and Professions Code. Reference: Sections 19170 and 19170.5, Business and Professions Code.

HISTORY

1. Amendment filed 3-20-85; effective upon filing pursuant to Government Code section 11346.2(d) (Register 85, No. 12).

2. Amendment of subsections (a) and (c) filed 6-6-91; operataive 7-6-91 (Register 91, No. 31).

3. Amendment filed 2-8-94; operative 2-8-94 pursuant to Government Code section 11346.2(d) (Register 94, No. 6).

4. Amendment filed 6-19-97; operative 7-19-97 (Register 97, No. 25).

5. Amendment of subsection (a) filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

6. Amendment of subsections (a)(1)-(2) filed 9-3-2002; operative 9-3-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 36).

§1108. Procedure Re License.

Note • History

(a) A new license must be secured when there is change of ownership.

(b) Licensees must notify the Bureau within thirty (30) days of a change of name and/or address when the ownership remains the same.

(c) All furniture and bedding manufacturers whose products are offered for sale in California, regardless of the point of manufacture, must hold a valid license with the Bureau.

(d) Importer as defined in Business & Professions Code Section 19011.1 includes, but is not limited to, “brokers” and “traders”.

(e) Manufacturers located outside of the United States who do not hold an Importer's license, must obtain a Furniture and Bedding Manufacturer's license if their products are imported into California.

(f) A licensed importer in the United States may co-hold a license with a manufacturer located outside the United States. A co-holder license can only be held by one importer in the United States on behalf of one manufacturer outside the United States.

(g) If an importer chooses to hold a co-holder license with more than one manufacturer outside the United States, he/she shall obtain a separate co-holder license with each manufacturer. There is no limit on the number of co-holder licenses an importer may hold, but only one manufacturer may appear on each co-holder license; licenses may not be pooled.

NOTE

Authority cited: Sections 19034 and 19061.5, Business and Professions Code. Reference: Sections 19053.1, 19054, 19060, 19061 and 19061.5, Business and Professions Code.

HISTORY

1. Repealer of subsections (a), (b), (d) and (e), subsection relettering, new subsections (b)-(g) and amendment of Note filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

§1109. Registry Numbers.

Note • History

(a) The location of every manufacturer, custom upholsterer, sanitizer, supply dealer or importer who manufactures shall bear a separate registry number. The registry number uniquely identifies each location (branch) of a licensed manufacturer, custom upholsterer, sanitizer, supply dealer, or importer.

(b) No registry number shall be issued or recognized without the required license fee.

(c) The registry number must appear on the law label that is attached to all upholstered furniture, bedding or filling materials.

(d) Every registry number issued by the Bureau shall be exclusively for the person to whom it is issued and the number shall not hereafter be reissued to, or used by, any other person.

NOTE

Authority cited: Sections 19034 and 19061.5, Business and Professions Code. Reference: Sections 19060, 19061 and 19061.5, Business and Professions Code.

HISTORY

1. Renumbering of former section 1109 to section 1110 and new section 1109 filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

§1110. “Withhold from Sale” Tag.

Note • History

A “Withhold from Sale” tag attached by the Bureau to the material or article of upholstered furniture and bedding withheld from sale shall not be concealed or obstructed from view in any manner. The licensee shall not remove or allow the removal of the withhold from sale tag without the express approval of the Bureau.

NOTE

Authority cited: Sections 19034 and 19081, Business and Professions Code. Reference: Sections 19081, 19202, 19203 and 19204, Business and Professions Code.

HISTORY

1. Renumbering of former section 1110 to section 1111 and renumbering and amendment of former section 1109 to section 1110 filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

§1111. Names of Filling Materials.

Note • History

The kinds and types of filling materials shall be stated on the law label. Any kinds and types of filling materials that are not named or defined in these regulations will be assigned names for labeling purposes when samples are submitted to the Bureau.

NOTE

Authority cited: Sections 19034, and 19089, Business and Professions Code. Reference: Sections 19080, 19081 and 19089, Business and Professions Code.

HISTORY

1. Renumbering of former section 1110 to section 1111 filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34). For prior history, see Register 96, No. 30.

§1112. Additional Terms Not Prohibited.

Note

These regulations shall not be construed as prohibiting the use in conjunction with the prescribed names or descriptive terms, of additional words or phrases that correctly designate and more fully describe any filling material, when such additional words or phrases are required or approved by the Bureau.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19080, 19081 and 19089, Business and Professions Code.

§1113. Deviations from Percentages Stated.

Note

Any deviation from percentages stated of a blend of types or kinds of filling materials shall not exceed 10% of the smaller component, i.e., a product labeled as 50% polyester fiber/50% polyurethane must contain no less than 45% polyester fiber.

NOTE

Authority cited: Sections 19034 and 19081, Business and Professions Code. Reference: Sections 19081, 19088, 19089 and 19150, Business and Professions Code.

§1114. Water Repellent, Water Resistant.

Note

Articles and materials labeled as “water repellent,” “water resistant” and words of similar import shall conform to a minimum rating of 90 when tested in accordance with the American Association of Textile Chemists and Colorists' Designation 22-1980 “Water Repellence: Spray Test.”

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19088, 19089 and 19150, Business and Professions Code.

§1115. Rot Proof, Rot Resistant.

Note • History

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19088, 19089 and 19150, Business and Professions Code.

HISTORY

1. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1116. Mildew Proof, Mildew Resistant.

Note

Articles and materials labeled as mildew proof, mildew resistant and words of similar import shall show no visual growth when examined by the unaided eye when tested by the American Association of Textile Chemists and Colorists' Designation 30-1979, Section 9, Aspergillus Niger-glucose Mineral Salts Agar Test.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19088, 19089 and 19150, Business and Professions Code.

§1117. Wind Resistant, Wind Proof.

Note • History

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19088, 19089 and 19150, Business and Professions Code.

HISTORY

1. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1118. Moth Proof, Moth Resistant.

Note

Articles and materials labeled as moth proof, moth resistant and words of similar import shall show no damage when tested in accordance with the American Association of Textile Chemists and Colorists' Designation 24-1980 “Resistance of Textiles to Insects,” using the fabric weight loss method.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19088, 19089 and 19150, Business and Professions Code.

§1119. Bacteria Resistant, Odor Resistant.

Note

Articles and materials labeled as bacteria resistant, odor resistant or words of similar import shall demonstrate clear areas of no growth adjacent to the fabric when tested in accordance with the American Association of Textile Chemists and Colorists' Designation 147-1977 “Detection of Antibacterial Activity of Fabrics: Parallel Streak Method.”

NOTE

Authority Cited: Section 19034, Business and Professions Code. Reference: Sections 19088, 19089 and 19150, Business and Professions Code.

§1120. Stain Resistant, Stain Repellent.

Note

Articles labeled as “stain resistant,” “stain repellent” and words of similar import shall not allow an oil or water based staining material to penetrate or wick into the textile product when tested in accordance with Bureau of Home Furnishings Technical Bulletin No. 107 dated July, 1973.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19088, 19089 and 19150, Business and Professions Code.

§1121. Soil Resistant, Soil Repellent.

Note

Articles labeled as “soil resistant,” “soil repellent” and words of similar import shall permit the textile product to release household type dirt or dry soil when tested in accordance with Bureau of Home Furnishings Technical Bulletin No. 108 dated July, 1973.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19088, 19089 and 19150, Business and Professions Code.

Article 2. Official Law Labels for Upholstered Furniture and Bedding and for Bulk Filling Material

§1125. Labeling Requirements.

Note • History

The kinds, types and percentage of filling materials used in articles of upholstered furniture and bedding and in bulk form concealed or not concealed shall be stated on the law label. Percentages shall be computed on the basis of avoirdupois weight of the filling material present and shall be designated on the law label in order of predominance, the largest component first.

NOTE

Authority cited: Sections 19034 and 19081, Business and Professions Code. Reference: Sections 19080, 19081 and 19089, Business and Professions Code.

HISTORY

1. * Repealer of Article 2 (Sections 1120-1122) and new Article 2 (Sections 1125 and 1126) filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42). For prior history, see Registers 81, No. 50; 75, No. 39; 74, No. 19; 68, No. 25; and 66, No. 27.

2. Editorial correction relocating Article 2 heading to precede Section 1125 (Register 83, No. 8).

. * The reorganization of Article 2 is printed as a repealer and adoption for clarity.

§1126. Official Law Label Requirements.

Note • History

(a) Attachment of Law Labels. Labels shall be securely fastened onto completed articles and bulk materials in a manner approved by the Bureau in such an area as to be openly and easily visible to view. Labels are not to be concealed or obstructed from view in any manner.

(b) Label Material. Law labels shall be constructed of material approved by the Bureau and shall not be easily torn or defaced.

(1) A white law label printed in black ink shall be used for new materials.

(2) A red law label printed in black ink shall be used for materials which are in whole or in part secondhand (used).

(3) A green label printed in black ink shall be used for “Owner's Material.”

(d) Statements and Headings to be Shown on Law Labels:

(1) “UNDER PENALTY OF LAW THIS TAG NOT TO BE REMOVED EXCEPT BY THE CONSUMER” shall appear at the top of the label.

(2) Headings shall read “All New Material” when the material is wholly new; “Secondhand (Used) Material” when the material is in whole or in part secondhand.

(3) Description of filling material as provided in the applicable regulations.

(4) For owner's own materials the heading shall state: “THIS ARTICLE NOT FOR SALE”--“OWNER'S MATERIAL.”

(5) The registry number assigned or approved by the Bureau.

(6) “Certification is made by the manufacturer that the materials in this article are described in accordance with law.”

(7) For owner's own materials the certification portion of the label shall state: “CERTIFICATION IS MADE THAT THIS ARTICLE CONTAINS THE SAME MATERIAL IT DID WHEN RECEIVED FROM THE OWNER AND THAT ADDED MATERIALS ARE DESCRIBED IN ACCORDANCE WITH LAW AND CONSIST OF THE FOLLOWING.”

(8) For owner's own materials the name and address of the owner.

(9) The finished size of articles of bedding such as sleeping bags, mattresses, comforters, mattress pads, pads, box springs, pillows, and similar articles, showing the width and length expressed in inches. Decorator pillows need not show size.

(10) The net weight of filling materials in articles of bedding such as sleeping bags, mattresses, box springs, pads and similar items, stated in pounds and ounces.

(11) All bulk filling materials which meet the requirements of Bureau of Home Furnishings Technical Bulletin No. 117, dated March 2000 shall have imprinted on the law label immediately following the requirements as set forth in subsection (c) of this section the statement: “THIS PRODUCT MEETS THE REQUIREMENTS OF BUREAU OF HOME FURNISHINGS TECHNICAL BULLETIN NO. 117.”

(12) In addition to the requirements set forth in subsection (11) of this section all invoices for products meeting the requirements of Bureau of Home Furnishings Technical Bulletin No. 117, dated March 2000 shall have stated on such invoices the identification of the product meeting the requirement and the statement that such identified products meet the requirements of Bureau of Home Furnishings Technical Bulletin No. 117.

(e) Size of Law Labels and Type of Printing:

(1) The minimum size of labels shall be 2 x 3 inches. Labels shall be larger when the required size of type and statements make it necessary.

(2) The minimum size of type shall be one-eighth inch in height, in capital letters.

(3) All printing shall be in English.

(f) Forms of Law Labels.

Type No. 1

For articles of upholstered furniture without loose cushions, also for decorator pillows, chair cushions, quilted bedspreads, headboards, hassocks, and similar items.

Type No. 2

For articles of furniture with loose cushions.

Type No. 3

For owner's own materials.

Type No. 4

For bulk filling materials such as batting and pads.

Type No. 5

For packaged filling materials ready for use by the ultimate customer.

Type No. 6

For articles of bedding, such as bed pillows, comforters, mattress pads and similar items.

Type No. 7

For sleeping bags, pads, mattresses, including a hybrid flotation sleep system containing a quilted fabric cover over a traditional water filled bladder, box springs and similar items.

Type No. 8

For bulk material such as batting and any filling material in loose or pre-fabricated form used or which can be used in articles of upholstered furniture.

Type No. 9

For bedding articles that contain whole or in part any secondhand (used) filling materials.

NOTE

Authority cited: Sections 19034 and 19081, Business and Professions Code. Reference: Sections 19080, 19081, 19086, 19087, 19088, 19089.3, 19089.5, 19092 and 19093, Business and Professions Code.

HISTORY

1. Amendment of subsections (c)(2), (d)(2), (d)(4), (d)(7) and (d)(8), amendment of subsection (f) Law Label Types 3, 6 and 7 and new Law Label Type 9 filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

2. Amendment of subsections (d)(11) and (d)(12) filed 8-16-2000; operative 8-16-2000 pursuant to Government Code section 11343.4(d) (Register 2000, No. 33).

Article 2.5. Universal Filling Material Requirements

§1130. Cleanliness.

Note • History

All filling materials shall be reasonable clean and free from trash, pith, pulp, extraneous materials, sludge, oil, grease, fat, filth, excreta, skin, epidermis, disagreeable odors and contamination.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19089, 19121, 19160 and 19202, Business and Professions Code.

HISTORY

1. New Article 2.4 (Sections 1130-1134) filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

2. Amendment of NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

§1131. Oil and Grease Limitations.

Note • History

When any filling material contains more than 5.0% of oil, grease or fat or a combination thereof the material is not permissible for sale in California.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19089, 19121, 19160 and 19202, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

§1132. Trash Limitation-Vegetable Fibers.

Note • History

When any filling material of vegetable origin contains more than 15% of trash or pulp and undecorticated fiber the material is not permissible for sale in California.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19089, 19121, 19160 and 19202, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

2. Editorial correction amending section (Register 2008, No. 2).

§1133. Sludge Limitation.

Note • History

When any filling material contains more than 0.3 milliliters of sludge the material is not permissible for sale in California. Sludge shall mean any material from a 20 gram sample of filling material which will settle out of a solution which has passed through a 40 mesh sieve.

NOTE

Authority cited: Sections 19034, Business and Professions Code. Reference: Section 19089, 19121, 19160 and 19202, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

§1134. Residue Limitation.

Note • History

When any filling material contains more than 5.0% of residue the material is not permissible for sale in California.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19089, 19121, 19160 and 19202, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

Article 3. Universal Definitions and Labeling

§1135. Terms of Definitions and Label Requirements.

Note • History

The following terms shall be stated on the law label when applicable in addition to other labeling nomenclature required by these regulations.

(a) “Batting” shall mean fibers which have been carded or garnetted into layer form.

(b) “Bleached” shall mean any product whose intrinsic color had been removed and whiteness improved by treating with a chemical compound.

(d) “Damaged” shall mean any filling material or article, which has been adversely affected by machine processing or by exposure to fire, water or other elements or source.

(e) “Fibers of Unknown Kind” shall mean miscellaneous new textile materials of unknown origin, and for practical purposes, unknown fiber content.

(f) “Gel” is any filing material of a semi-solid form, typically encased in a leak proof fabric cover and consisting of a mixture of water or other liquid base, dissolved chemicals and/or a suspension of other chemicals, which provides special ergonomic and resiliency properties.

(g) “Pad” shall mean any filling material which is interwoven, punched, pressed, shaped, or otherwise fabricated into pad form.

(h) “Resinated” or “Resin Treated” shall mean any filling material treated with a combination of synthetic resin or a combination of synthetic resin and latex.

(i) “Rubberized” shall mean any filling material which had been treated with a latex compound.

(j) “Shredded” shall mean any filling material which has been cut or torn into pieces.

(k) “Trash” shall mean shell, shale, stick, stem, leaf, boll, seed and foreign matter.

(l) “Waste” shall mean filling material with any of the following characteristics:

(1) Trash content in excess of 7.0%.

(2) Grease and oil content in excess of 2.0%.

(3) Bits or scraps of cellulose wadding, paper, or other foreign matter.

(4) Variable diameter fiber.

(5) Pulp and undecorticated fiber in excess of 10.0%.

(6) Bits or scraps of fabric.

(m) “Recycled Fibers” shall mean new fibers which are the by-product resulting from a textile processing method. Such recycled fibers shall not have a thread content in excess of 5.0%.

NOTE

Authority cited: Sections 19034, 19088 and 19150, Business and Professions Code. Reference: Sections 19080, 19081, 19088 and 19089, Business and Professions Code.

HISTORY

1. Repealer of Article 3 (Section 1140 and 1141) and new Article 3 (Section 1135) filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19). For history of former Article 3, see Registers 66, No. 27 and 68, No. 25.

2. Amendment of subsection (l) and new subsection (m) filed 9-23-75; effective thirtieth day thereafter (Register 75, No. 39).

3. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

4. Amendment filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

§1136. Definitions of Types of Bedding.

Note • History

(a) Box Springs shall mean an article designated to support a mattress, consisting of coiled springs on a wood, metal, plastic, or any such combination thereof, frame upholstered on top with filling material and covered on top and sides with fabric.

(b) Matching Box Springs shall mean an article designated to support a mattress, consisting of coiled springs on a wood, metal, plastic, or any such combination thereof, frame, upholstered on top with filling material and covered on top and sides with the same fabric as the mattress.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Section 19007, Business and Professions Code.

HISTORY

1. New section added 6-17-77; effective thirtieth day thereafter (Register 77, No. 25).

2. Amendment of NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Editorial correction of subsections (b) and (c) (Register 96, No. 49).

4. Amendment of subsection (b) filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

§1137. Care Instructions.

Note • History

Effective October 1, 1977, all sleeping bags, mattress pads, comforters, bedspreads, coverlets, quilts and similar articles shall have a label sewn onto the article stating instructions for laundering and cleaning.

NOTE

Authority cited: Section 19034 and 19081, Business and Professions Code. Reference: Section 19080 and 19081, Business and Professions Code.

HISTORY

1. New section added 6-17-77; effective thirtieth day thereafter (Register 77, No. 25).

2. Amendment of NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

Article 4. Cotton Regulations

§1180. Labeling Requirements. [Repealed]

Note • History

NOTE

Authority cited for Article 5: Section 19034, Business and Professions Code. Reference: Sections 19060, 19061, 19080, 19081, 19089, 19123.6, 19124, 19127, 19158, 19170, 19170.5, 19201. 19203, Business and Professions Code.

HISTORY

1. Amendment of Article 5 (Sections 1180 through 1197) filed 5-19-66; effective thirtieth day thereafter (Register 66, No. 4). For history of former section see Registers 54, No. 9 and 56, No. 15.

2. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No.19).

3. Repealer of Articles 4 and 4.1 (Sections 1149-1156) and renumbering of Article 5 (Section 1180-1185) to Article 4 (Sections 1181 and 1182) filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19). For history of former Articles 4, 1.4 and 5, see Registers 66, No. 4, No. 27 and 68, No. 25.

§1181. Optional Labeling.

Note • History

In lieu of the requirement set forth in Section 1125 of these regulations, any cotton filling material may be designated on the law label as “Blended Cotton” without stating the types of cotton present.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Section 19080. 19081, 19088, 19089 and 19150, Business and Professions Code.

HISTORY

1. Amendment filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

2. Amendment of NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Editorial correction (Register 83, No, 8).

§1182. Definitions of Types of Cotton.

Note • History

(a) “Cotton” shall mean a vegetable seed fiber consisting of unicellular hairs attached to the seed of several species of the genus Gossypium of the family Malvaceae.

(b) “Staple” shall mean the staple fibrous growth as removed from cottonseed in the usual process of ginning (first cut from seed).

(d) “Fly” shall mean the cotton waste resulting when cotton is introduced to the carding machine.

(e) “Gin Flues” shall mean the cotton waste resulting from staple cotton in the ginning mill.

(f) “Picker” shall mean the cotton waste remaining after cotton has been run through the picker in the cotton mill.

(g) “Strips” shall mean the cotton waste produced by or removed from the carding cloth following the carding process.

(h) “Linters” shall mean the fibrous growth resulting from the first cut of the cottonseed (subsequent to the usual first process of ginning) in the cotton oil mill.

(i) “Second Cut Linters” shall mean the fibrous growth resulting from the second cut of cottonseed in the cotton oil mill.

NOTE

Authority cited: Section 19034 and 19089, Business and Professions Code. Reference: Section 19080, 19081, 19088, 19089 and 19150, Business and Professions Code.

HISTORY

1. Amendment filed 5-19-74; effective thirtieth day thereafter (Register 74, No. 19).

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

§1183. Maximum Deviations. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

§1184. Additional Terms Not Prohibited. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

§1185. Application of This Article. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

Article 5. Plumage Regulations

§1190. Labeling Requirements. [Repealed]

Note • History

NOTE

HISTORY

1. Amendment of Article 6 (Sections 1190 through 1197) filed 5-19-66; effective thirtieth day thereafter (Register 66, No. 4). For history of former section see Registers 61, No. 2 and 62, No. 6.

2. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No.19).

3. Repealer of Article 6 (Sections 1190-1197) to Article 5 (Section 1192-1197) to Article 5 (Sections 1192-1195) filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

4. Editorial correction of NOTE (Register 79, No. 29).

§1191. Official Law Label Requirements. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 73, No. 19).

§1192. Definitions of Types and Kinds of Plumage.

Note • History

(a) “Crushed Feathers” shall mean feathers which have been processed by a curling, crushing or chopping machine and includes the fiber resulting from such processing and which has changed the original form of the feather without removing the quill.

(b) “Damaged Feathers” shall mean feathers which have been broken, injured by insects or depreciated from the original value in any manner.

(c) “Down” shall mean the undercoating of waterfowl, consisting of the light fluffy filaments “barb” growing from one quill point but without any quill shaft.

(d) “Down Fiber” shall mean the detached barbs from down and plumules and detached barbs from the basal end of the waterfowl quill shaft which are indistinguishable from the barbs of down.

(e) “Feathers” shall mean the plumage or out-growth forming the contour and external covering of fowl which are whole in structure and which have not been processed in any manner other than dusting and washing.

(f) “Feather Fiber” shall mean the detached barbs of feathers which are not joined or attached to each other.

(g) “Landfowl” shall mean plumage derived from chickens and turkeys.

(h) “Plumage” shall mean the outercovering of fowl.

(i) “Plumules” shall mean waterfowl plumage with underdeveloped soft and flaccid quill with barbs indistinguishable from those of down.

(j) “Quill Feathers” shall mean feathers exceeding four inches in length or having a quill point exceeding 6/16ths of an inch in length.

(k) “Residue” shall mean quill pith, quill fragments, trash or foreign matter.

(l) “Waterfowl” shall mean plumage derived from ducks or geese.

(m) “Duck” shall mean plumage derived from ducks.

(n) “Goose” shall mean plumage derived from geese.

(o) “Turkey” shall mean plumage derived from turkeys.

(p) “Chicken” shall mean plumage derived from chickens.

NOTE

Authority cited: Sections 19034 and 19089, Business and Professions Code. Reference: Sections 19080, 19081, 19088 and 19150, Business and Professions Code.

HISTORY

1. Amendment filed 5-19-74; effective thirtieth day thereafter (Register 74, No. 19).

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

4. New section filed 3-16-2000; operative 4-12-2000 (Register 2000, No. 11).

§1192.1. Plumage Products -- Comply with Federal Standards. [Repealed]

History

HISTORY

1. New section filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

2. Repealer filed 3-16-2000; operative 4-12-2000 (Register 2000, No. 11).

§1193. Compositional Requirements.

Note • History

(a) Down Products. Any industry product labeled as “down,” “duck down,” or “goose down” shall contain a minimum of 75% down and plumules. The “DOWN” label is a qualified general label and shall include in parentheses the minimum percentage of down in the product. The minimum percentage stated on the label must be at least 75%.

The remainder normally consists of waterfowl feathers and small amounts of other components. If these other components exceed the following maximums, the percentage of such components must be labeled.

Down Fiber maximum 10%

Feather Fiber maximum 10%

Chopped, Damaged & Crushed Feathers maximum 2%

Landfowl Feathers maximum 2%

Residue maximum 2%

Quill Feathers are not permitted.

(b) Down and Feather Blended Products. These products require qualified general labels that shall include in parentheses the actual percentage of components.

(1) The term “DOWN AND FEATHERS” may be used to designate any plumage product containing between 50% and 74% down and plumules. The actual percentages must be stated on the label.

(2) The term “FEATHERS AND DOWN” may be used to designate any plumage product containing between 5% and 49% down and plumules. The actual percentages must be stated on the label.

(3) The remainder of components in down and feather blended products normally consists of waterfowl feathers or down and small amounts of other components. If these other components exceed the following maximums, the percentage of such components must be labeled.

Down Fiber maximum 10%

Feather Fiber maximum 10%

Chopped, Damaged & Crushed Feathers maximum 2%

Landfowl Feathers maximum 2%

Residue maximum 2%

Quill Feathers are not permitted

(c) Waterfowl Feather Products. Any industry product labeled as “waterfowl feathers, “duck feathers,” “goose feathers” shall contain a minimum of 80% waterfowl feathers.

Down maximum 20%

Down Fiber maximum 10%

Chopped, Damaged & Crushed Feathers maximum 7%

Feather Fiber maximum 5%

Landfowl Feathers maximum 5%

Residue maximum 2%

Quill Feathers are not permitted

(d) Other Plumage Products. Plumage products which do not meet requirements for any of the above categories must be labeled accurately with each component listed separately.

(e) Percentage Claims. A plumage product should not be designated as “100% Down,” “All Down,” “Pure Down” or by other similar terms unless, it in fact, contains 100% down.

(f) Tolerances. No tolerance is allowed for the minimum percentage of down as stated in the above listed categories.

(g) Species. The specie of waterfowl plumage need not be designated, but when designated, the product shall contain a minimum of 90% of such plumage.

(h) Cleanliness. All plumage products must have an oxygen number not exceeding 20 grams of oxygen per 100,000 grams of sample.

(i) Adulteration. The maximum content for certain components listed above are not to be construed to permit intentional adulteration of plumage products.

(j) Labels. Every plumage filled product must contain a law label in accordance with Article 2, Section 1125 & 1126 of the California Code of Regulations.

NOTE

Authority cited: Sections 19034 and 19089, Business and Professions Code. Reference: Sections 19080, 19081, 19088 and 19150, Business and Professions Code.

HISTORY

1. Amendments filed 12-6-66; effective thirtieth day thereafter (Register 66, No. 43).

2. Amendment filed 1-10-69; effective thirtieth day thereafter (Register 69, No. 2).

3. Amendment filed 5-19-74; effective thirtieth day thereafter (Register 74, No. 19).

4. Amendment of NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

5. Amendment filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

6. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

7. New section filed 3-16-2000; operative 4-12-2000 (Register 2000, No. 11).

§1194. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Section 19034 and 19089, Business and Professions Code. Reference: Section 19080, 19081, 19088, 19089 and 19150, Business and Professions Code.

HISTORY

1. Amendment filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1195. Cleanliness. [Repealed]

Note • History

NOTE

Authority cited: Section 19034 and 19089, Business and Professions Code. Reference: Section 19080, 19081, 19088, 19089 and 19150, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No.50).

2. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1196. Additional Terms Not Prohibited. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

§1197. Application of This Article. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

Article 6. Wool and Hair Regulations

§1209. “Wool.”

Note • History

Shall mean the fleece of sheep which has been scoured and carbonized. It shall be free of kemp and vegetable matter.

NOTE

Authority cited: Section 19034 and 19089, Business and Professions Code. Reference: Section 19080, 19081, 19088, 19089 and 19150, Business and Professions Code.

HISTORY

1. New section filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

2. Renumbering of Article 7 (Sections 1210, 11, 1215-1218) to Article 6 (section 1209-1211) filed 5-10-74 (Register 74, No. 19).

3. Amendment of Article heading and NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

§1210. “Hair.”

Note • History

Shall mean the coarse filamentous epidermal outgrowth of such mammals as horses, cattle, hogs and goats.

NOTE

Authority cited: Section 19034 and 19089, Business and Professions Code. Reference: Section 19080, 19081, 19088, 19089 and 19150, Business and Professions Code.

HISTORY

1. Amendment filed 5-10-74; effective thirtieth day thereafter (Register 74, No, 19).

2. Amendment of NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No.50).

§1211. Classification of Hair.

Note • History

Hair shall be classified and labeled as follows:

“Horse Tail Hair”

“Horse Mane Hair”

“Hog Hair”

“Cattle Tail Hair”

“Cattle Hide Hair”

“Goat Hair”

NOTE

Authority cited: Section 19034 and 19089, Business and Professions Code. Reference: Section 19080, 19081, 19088, 19089 and 19150, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No.50).

§1212. Single Grades of Hair. [Repealed]

History

HISTORY

1. Repealer filed 4-20-54; effective thirtieth day thereafter (Register 54, No. 9).

§1213. Hair Percentages. [Repealed]

History

HISTORY

1. Repealer filed 4-20-54; effective thirtieth day thereafter (Register 54, No. 9).

§1214. Hair and Fiber Mixtures. [Repealed]

History

HISTORY

1. Repealer filed 4-20-54; effective thirtieth day thereafter (Register 54, No. 9).

§1215. Color of Hair. [Repealed]

History

HISTORY

1. Repealer filed 4-20-54; effective thirtieth day thereafter (Register 54, No. 9).

§1216. Curled Hair. [Repealed]

History

HISTORY

1. Repealer filed 4-20-54; effective thirtieth day thereafter (Register 54, No. 9).

§1217. Uncurled Hair. [Repealed]

History

HISTORY

1. Repealer filed 4-20-54; effective thirtieth day thereafter (Register 54, No. 9).

§1218. Labeling Examples. [Repealed]

History

HISTORY

1. Repealer filed 4-20-54; effective thirtieth day thereafter (Register 54, No. 9).

Article 7. Man-Made Fiber Regulations

§1236. Labeling Requirements. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

2. Repealer of Article 8 (Sections 1230 and 1231) and renumbering of Article 8.5 (Sections 1236-1239.3, not consecutive) to Article 7 (Section 1238) filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

§1237. Definitions. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

§1237.1. Optional Labeling. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

§1238. Kinds of Man-Made Fibers.

Note • History

The following terms shall be stated on the law label when applicable in addition to other labeling nomenclature required by these regulations for defining the chemical composition of manufactured fibers.

(a) “Acetate”: a manufactured fiber in which the fiber-forming substance is cellulose acetate. Where not less than 92% of the hydroxyl groups are acetylated, the term triacetate may be used as a generic description of the fiber.

(b) “Acrylic”: a manufactured fiber in which the fiber-forming substance is any long chain synthetic polymer composed of at least 85% by weight of acrylonitrile units (-CH2-CH-).

(c) “Azlon”: a manufactured fiber in which the fiber-forming substance is composed of any regenerated naturally occurring proteins.

(d) “Glass”: a manufactured fiber in which the fiber-forming substance is glass.

(e) “Metallic”: a manufactured fiber composed of metal, plastic-coated metal, metal coated plastic or a core completely covered by metal.

(f) “Modacrylic”: a manufactured fiber in which the fiber-forming substance is any long chain synthetic polymer composed of less than 85% but at least 35% by weight of acrylonitrile units (-CH-2-CH-)

(g) “Nylon”: a manufactured fiber in which the fiber-forming substance is any long chain synthetic polyamide having recurring amide groups (-C-NH-) as any integral part of the polymer chain.

(h) “Nitrile”: a manufactured fiber containing at least 85% of a long chain polymer of vinylidene dinitrile (CH2-C(CN)2-) where the vinylidene dinitrile content is no less than every other unit in the polymer chain.

(i) “Olefin”: a manufactured fiber in which the fiber-forming substance in any long chain synthetic polymer composed of at least 85% by weight of ethylene, propylene or other olefin units.

(j) “Polyester”: a manufactured fiber in which the fiber-forming substance is any long chain synthetic polymer composed of at least 85% by weight of any ester of a dihydric alcohol and terephathalic acid (p-HOOC-C6H4-COOH-).

(k) “Rayon”: a manufactured fiber composed of regenerated cellulose, as well as manufactured fibers composed of regenerated cellulose in which substituents have replaced not more than 15% of the hydrogen of the hydroxyl groups.

(l) “Saran”: a manufactured fiber in which the fiber-forming substance is any long chain synthetic polymer comprised of at least 80% by weight of vinylidene chloride units (-CH2CCL2-).

(m) “Spandex”: a manufactured fiber in which the fiber-forming substance is a long chain synthetic polymer composed of at least 85% of segmented polyurethane.

(n) “Vinyl”: a manufactured finer in which the fiber-forming substance is any long chain synthetic polymer composed of at least 50% by weight of vinyl alcohol units (-CH2-CHOH-), and in which the total of the vinyl alcohol units and any one or more of the various acetal units is at least 85% by weight of the fiber.

(o) “Vinyon”: a manufactured fiber in which the fiber-forming substance is any long chain synthetic polymer composed of at least 85% by weight of vinyl chloride units (-CH2-CHCL-).

(p) “Rubber”: a manufactured fiber in which the fiber-forming substance is comprised of natural or synthetic rubber, including the following categories:

(1) A manufactured fiber in which the fiber-forming substance is a hydrocarbon such as natural rubber, polyisoprene, polybutadiene, copolymers of dienes and hydrocarbons, or amorphous (non-crystalline) polyolefins.

(2) A manufactured fiber in which the fiber-forming substance is a copolymer of acrylonitrile and diene (such as butadiene) composed of not more than 50% but at least 10% by weight of acrylonitrile units (-CH2-CH-). The term “laetrile” may be used as a generic description

for fibers falling within this category.

(3) A manufactured fiber in which the fiber-forming substance is a polychloroprene or a copolymer of chlorophene in which at least 35% by weight of the fiber-forming substance in composed of chloroprene units (-CH2-C-CH-CH2-)

NOTE

Authority cited: Section 19034 and 19089, Business and Professions Code. Reference: Section 19080, 19081, 19088, 19089 and 19150, Business and Professions Code.

HISTORY

1. New subsection (p) filed 5-10-74; effective thirtieth day thereafter (Register 74, No, 19).

2. Amendment of NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Amendment filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

§1239. Names of Man-Made Fibers. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

§1239.1. Additional Terms Not Prohibited. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

§1239.2. Application of This Article. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

§1239.3. Deviation from Percentages Stated. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

Article 8. Miscellaneous Vegetable Fiber Regulations

§1240. Labeling Requirements. [Renumbered]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

2. Renumbering of Article 9 (Sections 1240-1246) to Article 8 (section 1267) filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

§1241. Optional Labeling. Blends. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

§1242. Terms and Definitions. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

§1243. Maximum Deviations. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

§1244. Additional Terms Not Prohibited. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

§1245. Application of This Article. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

§1246. Names of Vegetable Fibers. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

§1247. Terms and Definitions.

Note • History

The following terms shall be stated on the law label when applicable in addition to other labeling nomenclature required by these regulations for defining the chemical composition of natural fibers.

(a) “Buckwheat hulls” shall mean the outer shell covering of the buckwheat seed (fagopyrum).

(b) “Cellulose Fiber” shall mean wood or other vegetable growth reduced to a fibrous state.

(d) “Corrugated Fiber Board” shall mean the thick coarse paper, corrugated to give it elasticity.

(e) “Excelsior” shall mean shredded threadlike wood fibers, but shall not include waste products such as shavings, sawdust, or similar waste.

(f) “Flax Fiber” shall mean the fiber derived from the plant of the genus Lignum Usitatissimum raised primarily for fiber.

(g) “Jute Fiber” shall mean the fiber derived from several species of the Corchorus plant.

(h) “Kapok” shall mean the mass of fibers investing the seed of the kapok tree (Ceiba Pentandra).

(i) “Milkweed Fiber” shall mean the surface fiber from the inside of the seed pods of milkweed plants (Asclepias).

(j) “Moss” shall mean the processed fibers of epephytic plants forming pendant tufts from trees.

(k) “Palm Fiber” shall mean the fibrous material obtained from the leaf of a palm, palmetto, or palmyra tree.

(l) “Sisal Fiber” shall mean the leaf fiber derived from the Agave Sisalana and similar species of Agaves.

(m) “Tula Fiber” shall mean the fiber derived from the Tula Istle and similar species of Agaves.

NOTE

Authority cited: Section 19034 and 19089, Business and Professions Code. Reference: Section 19080, 19081, 19088, 19089 and 19150, Business and Professions Code.

HISTORY

1. New section filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Amendment filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

Article 9. Sanitization Regulations

§1250. Removal of Red Tags After Sterilization. [Repealed]

Note • History

NOTE

Authority cited: Section 19034 and 19204, Business and Professions Code. Reference: Section 19121, 19202, 19203, and 19204, Business and Professions Code.

HISTORY

1. Amendment filed 6-13-75; effective thirtieth day thereafter (Register 75, No, 19). For prior history, Register 74, No. 19.

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Repealer filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

4. Amendment of article 9 heading filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

5. Amendment of article 9 heading filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

§1251. Methods of Sanitization.

Note • History

(a) Any method of sanitization not provided for herein shall be submitted to the Bureau for testing and consultation with the State Department of Health Services before adoption or use.

(b) Unless otherwise specifically provided for, the chief of the bureau shall determine the method to be employed in the sanitization of any article or material subject to the provisions of the act and these regulations.

(c) Secondhand (used) fabrics shall not contain any of the following adulterants: visible soiling or stains, extraneous materials, sludge, oil, grease, fat, filth, excreta, skin, epidermis, blood, urine, feces, disagreeable odors or other contamination.

(d) Secondhand (used) materials which are contaminated shall be sanitized as set forth in Sections 1252 or 1253 of these regulations.

(e) Mattresses containing a porous material or fabric may be sanitized by using the dry heat method in Section 1252 or the chemical disinfectant, Steri-fab, as set forth in Section 1253.

(f) Baled filling materials shall not be sanitized while still in the bale.

(g) Detachable mattresses and pads within hide-a-beds shall be removed from such articles and sanitized.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19120, 19121, 19123.6 and 19124, Business and Professions Code.

HISTORY

1. New subsection (b) filed 7-1-68; effective thirtieth day thereafter (Register 68, No. 25).

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Amendment of subsection (a) filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

4. Amendment filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

5. Repealer and new section filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

§1252. Dry Heat Method.

Note • History

(a) The dry heat method may be used to sanitize mattresses, box springs, or similar items covered in whole by a porous material or fabric.

(b) In sanitizing by the dry heat method a temperature of 230 degrees F. shall be maintained in all parts of an approved chamber for such a period of time as may be necessary for sanitization, which shall in no case be less than one hour and 15 minutes. All chambers shall be equipped with racks or devices and the articles to be sanitized shall be so placed therein so that complete circulation of heat and gases around every article being sanitized shall be attained. All chambers shall be insulated sufficiently to insure maintenance of temperature and shall be tightly sealed to prevent any leakage of gases. A thermostat shall be connected with the heating device to provide and maintain a reasonably uniform temperature at 230 degrees F. + (plus or minus) 5 degrees.

(c) The sanitization conditions of 230 degrees F. for not less than 1 hour and 15 minutes may be changed to conditions of 205 degrees F. for not less than 1 hour and 30 minutes for foam products which suffer physical degradation at the 230 degrees F. temperature.

(d) A suitable recording device approved by the bureau shall be installed and maintained to record the time and temperature prevailing during the entire operation.

(e) Each chamber in which the dry heat method of sanitization is performed shall be equipped with a fresh air inlet and an exhaust fan and duct discharging to the outside air. To clear the chamber of gases and fumes upon completion of the sanitization cycle, the fresh air inlet to the chamber shall be opened and the exhaust fan operated for 30 minutes or until all fumes have been exhausted through the discharge duct. The sanitized articles may then be removed from the chamber.

(f) When more than one sanitization chamber is operated on any premises by the same person, each chamber shall be permanently identified by a letter, beginning with “A” and proceeding in alphabetical order.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19122, 19124 and 19127.6, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

2. Repealer filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

3. Repealer and new section filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

§1253. Chemical Disinfection Method.

Note • History

(a) In sanitizing by the chemical method only those products registered with the State of California, Environmental Protection Agency, Department of Pesticide Regulation, which are specified for use as disinfectants of articles of bedding shall be used. The product shall clearly state, on the label or on printed matter included in each container or package, detailed instructions for its use in disinfecting articles of bedding.

(b) Mattresses, box springs or similar articles covered in whole by an impervious material, such as plastic, may be sanitized by damp cleaning with a chemical disinfectant registered with the State of California, Environmental Protection Agency, Department of Pesticide Regulation, which is specified for use as a disinfectant of articles of bedding.

(c) Mattresses, box springs or similar articles covered by a porous material or fabric may be sanitized with the chemical disinfectant, Steri-fab registered with the State of California, Environmental Protection Agency, Department of Pesticide Regulation for use as a disinfectant.

(1) Application of Steri-fab shall be in accordance with the chemical disinfectant manufacturer's specification in order to provide adequate coverage by thoroughly spraying over all surfaces so that complete disinfection is achieved.

(2) The Steri-fab disinfectant shall be well mixed throughout the application to ensure adequate dispersion of the tracer chemical which can be detected on the mattress cover in the dry state by use of a hand held ultraviolet (black) light under magnification.

(3) A continuous action pressure sprayer shall be used to apply the disinfectant.

(4) Appropriate and effective safety precautions shall be followed in the use, storage, application and disposal of the disinfectant.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Section 19124, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

2. Editorial correction renumbering former History 2 to History 1 (Register 96, No. 30).

3. Amendment filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

4. Repealer and new section filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

§1254. Lot.

Note • History

A “lot” consists of all of the articles sanitized in (1) one chamber during one operation, or (2) by the chemical disinfection method during one (1) calendar day. Lots shall be numbered consecutively.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Section 19124 and 19127.6, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

2. Amendment filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

3. Repealer and new section filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

§1255. Records.

Note • History

(a) Records shall be kept in a bound log book and shall include:

(1) the date of sanitization;

(2) the chamber letter, if any;

(3) the lot numbers in consecutive order;

(4) the name of the person and or company for whom sanitized.

(b) The numbers and types of items sanitized must be recorded.

(d) Records kept in the bound log book must be retained on the business premises for not less than 5 years.

(d) The following is a sample format for recording required information.

Dry Heat Sanitation Record Log (example)

Date Oven No. Lot No. Label Nos. Articles Company Name

1/7/98 A 1 1000-1011 5 mattresses Salvation Army

5 boxsprings

1/7/98 A 2 1012-1022 5 mattresses ABC Thrift

5 boxsprings

1/7/98 A 1 1010 VOID VOID

Chemical Sanitation Record Log (example)

Date Chemical Lot No. Label Nos. Articles Company Name

1/7/98 Steri-Fab 2 1023-1034 5 mattresses Salvation Army

5 boxsprings

1/7/98 Steri-Fab 3 1034-1040 3 mattresses Salvation Army

3 boxsprings

1/7/98 1033 VOID VOID

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19124 and 19127.6, Business and Professions Code.

HISTORY

1. New section filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34). For prior history, see Register 96, No. 30.

§1256. Official Sanitization Label Requirements.

Note • History

(a) All articles of bedding or bulk filling materials which have undergone an approved method of sanitization shall have a sanitization label firmly attached to the item in such an area so as to be easily and readily discernable. Sanitization labels shall be affixed to the item sanitized with silicate of soda or any type of adhesive approved by the Bureau.

(b) Sanitization labels shall be constructed of erasure-proof paper and shall be of a grade that will not change color on application of adhesive.

(d) Statements and headings on a sanitization label shall be as follows:

(1) “Under penalty of law this tag shall not be removed except by the consumer.”

(2) “Certification is made that this secondhand article has been sanitized by a process approved pursuant to Division 8, Chapter 3, Article 6, of the Business and Professions Code” (The Home Furnishings and Thermal Insulation Act).

(3) Lot number in which the article was sanitized.

(4) Sanitization label number. (Every label shall be numbered, the numbers shall run consecutively, and no duplicate numbers shall be used).

(5) Name of the article or filling material sanitized.

(6) Method must be printed or stamped: dry heat or chemical disinfectant.

(7) Date sanitized.

(8) Name and address of sanitizing plant.

(9) Registry number assigned to the sanitizing plant by the Bureau.

(e) Size of sanitization label and type of printing.

(1) The minimum size of labels shall be 3 x 3 inches.

(2) The words “Secondhand Article” and “Sanitized” shall be a minimum of 3/8” in height in capital letters.

(3) All printing shall be in English.

(f) Form of Label.

NOTE

Authority cited: Sections 19034 and 19127, Business and Professions Code. Reference: Sections 19124.5 and 19127, Business and Professions Code.

HISTORY

1. Amendment filed 8-17-66; effective thirtieth day thereafter (Register 66, No. 27).

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Amendment of section and form filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

4. Repealer and new section filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

§1257. Storage of Formaldehyde. [Repealed]

Note • History

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Section 19124, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

2. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1258. Method of Sanitization. [Repealed]

Note • History

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19120, 19123.6 and 19124, Business and Professions Code.

HISTORY

1. Amendment filed 8-17-66; effective thirtieth day thereafter (Register 74, No. 19).

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Amendment filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

4. Amendment of section heading, section and Note filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

5. Repealer filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

§1259. Vacuum Chemical Method. [Repealed]

Note • History

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Section 19124, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

2. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1260. Dry Heat Method. [Repealed]

Note • History

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Section 19124, Business and Professions Code.

HISTORY

1. Amendment filed 7-31-56; effective thirtieth day thereafter (Register 74, No. 19).

2. Amendment filed 5-1-59; designated as effective June 1, 1959 (Register 59, No. 7).

3. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

4. New subsection (d) filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

5. Amendment filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

6. Repealer filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

§1261. Feather and Down Method. [Repealed]

Note • History

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Section 19124, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

2. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1262. Wet Method. [Repealed]

Note • History

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Section 19124, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

2. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1263. Steam Under Pressure Method. [Repealed]

Note • History

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Section 19124, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

2. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1264. Chemical Method. [Repealed]

Note • History

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Section 19124, Business and Professions Code.

HISTORY

1. Repealer of former Section 1264 and renumbering and amendment of former Section 1266 to Section 1264 filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42). For prior history, see Register 81, No. 50; 68, No. 25; and 66, No. 27.

2. Amendment filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

3. Repealer filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

§1265. Disinfecting. [Repealed]

Note • History

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Section 19124, Business and Professions Code.

HISTORY

1. Repealer of Section 1265 and renumbering and amendment of former Section 1266.1 to Section 1265 filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42). For prior history, see Registers 81, No. 50 and 68, No. 25).

2. Amendment filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

3. Repealer filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

§1266. Official Sanitization Label Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 19034 and 19127, Business and Professions Code. Reference: Sections 19124.5 and 19127, Business and Professions Code.

HISTORY

1. Renumbering of former Section 1266 to Section 1264, and renumbering and amendment of former Section 1267 to Section 1266 filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42). For prior history, see Registers 81, No. 50; 68, No. 25; and 66, No. 27.

2. Amendment of section heading, section and form filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

3. Repealer filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

§1266.1. Disinfecting. [Repealed]

Note • History

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Section 19124, Business and Professions Code.

HISTORY

1. New section filed 7-1-68; effective thirtieth day thereafter (Register 68, No. 25).

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Renumbering and amendment to Section 1265 filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

§1267. Removal of Red Tags After Sterilization. [Repealed]

Note • History

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19121, 19202, 19203, and 19204, Business and Professions Code.

HISTORY

1. Renumbering and amendment of former Section 1267 to Section 1266, and new Section 1267 filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42). For prior history, see Registers 81, No. 50; 68, No. 25; and 66, No. 27.

2. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

Article 10. False or Misleading Advertising

§1300. Application of Article.

Note • History

For the purposes of Sections 19150 and 19210 of the act, false or misleading advertising includes but is not limited to advertising, within the meaning of Section 17500 et seq. of the Business and Professions Code, which violates any provision of this article.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19088 and 19150, Business and Professions Code.

HISTORY

1. New section filed 12-8-52; effective thirtieth day thereafter (Register 30, No. 5).

2. Repealer of Article 11 and new Article 11 (Sections 1300 through 1318) filed 5-1-59; designated effective June 1, 1959 (Register 59, No. 7).

3. Renumbering of Article 11 (Sections 1300-1318) to Article 10 (Sections 1300-1318) filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

4. Editorial correction of NOTE (Register 79, No. 29).

5. Amendment of NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

6. Editorial correction filed 1-6-83 (Register 83, No. 2).

§1300.1. Misleading, Defined.

Note • History

In determining whether advertising is false or misleading it shall be considered in its entirety and as it would be read by the persons to whom it is designed to appeal. It shall be considered to be misleading if it tends to deceive the public or impose upon credulous or ignorant persons.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19150 and 19210, Business and Professions Code.

HISTORY

1. New section filed 10-15-82; effective thirtieth day thereafter (Register 82, No 42).

§1301. Former Price, Defined.

Note • History

The term “former price” as used in Section 17501 of the Business and Professions Code and in this article includes but is not limited to the following words and phrases when used in connection with advertised prices; “formerly--,” “regularly--,” “usually--,” “originally--,” “reduced from ________,” “was ________ now ________,” “____% off.”

NOTE

Authority cited: Sections 19034 and 19088, Business and Professions Code. Reference: Sections 17500, 17501, 19150 and 19210, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

§1302. Former Price of Same Article.

Note • History

(a) No price, whether expressed in words, phrases, price figures, symbols, fractions, percentages, or otherwise, shall be advertised as the former price of an article unless such advertised former price applies to the article advertised.

(b) Except as provided in subdivision (c) of this section, the advertised former price must be the prevailing market price of the article in the locality wherein the advertisement is published, within three months immediately preceding the publication of the advertisement.

(c) If the advertised former price exceeds the three months' period as set forth in subdivision (b) above, the date when such former price did prevail must be clearly, exactly and conspicuously stated in the advertisement.

NOTE

Authority cited: Sections 19034 and 19088, Business and Professions Code. Reference: Sections 17500, 17501, 19150 and 19210, Business and Professions Code.

HISTORY

1. Amendment filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

§1303. Fictitious Markup. [Repealed]

Note • History

NOTE

Authority cited: Sections 19034 and 19088, Business and Professions Code. Reference: Sections 17500, 17508, 19150 and 19210, Business and Professions Code.

HISTORY

1. Amendment filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Repealer filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

§1304. Comparison with Prices of Other Merchandise. [Repealed]

Note • History

NOTE

Authority cited: Sections 19034 and 19088, Business and Professions Code. Reference: Sections 17500, 17508, 19150 and 19210, Business and Professions Code.

HISTORY

1. Amendment filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Repealer filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

§1304.1. Bait and Switch Advertising.

Note • History

The term “Bait and Switch Advertising” means an alluring but insincere offer to sell a product or service which the advertiser in truth does not intend or want to sell. The purpose thereof is to switch consumers from buying the advertised merchandise, in order to sell something else, usually at a higher price or on a basis more advantageous to the advertiser. Bait and switch advertising of any article subject to the provisions of the Home Furnishings Act shall be deemed to be false and misleading. Practices which shall be considered as evidence of unlawful bait and switch advertising include but are not limited to the following:

(a) Refusal to show the product advertised;

(b) Disparagement in any respect of the advertised product or the terms of sale;

(c) Failure to have available at all outlets listed in the advertisement sufficient quantities of the product to meet reasonable anticipated demands;

(d) Refusal to take orders for the advertised merchandise for delivery within a reasonable period;

(e) Showing or demonstrating a defective product unusable or impractical for the purposes implied in the advertisement;

(f) Accepting a deposit for the product and then switching the purchaser to a higher priced item;

(g) Failure to make deliveries within a reasonable time or to make a refund.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 17500, 19088, 19150 and 19210, Business and Professions Code.

HISTORY

1. New section filed 8-5-70; effective thirtieth day thereafter (Register 70, No. 32).

2. Amendment of NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Amendment filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

§1305. Special Sale.

Note • History

No advertisement shall represent that because of an unusual business event in the course of business or unusual manner of doing business or for any other reason an article is offered for sale at a savings in price unless such advertisement is in all respects true and not misleading. If an advertisement represents that the sale is being held for reasons relating to transactions which have already occurred or orders which have already been placed, the articles offered at sale prices are restricted to those articles on the premises, in the warehouse or in process from previous orders the date the sale is announced. Sales of this type include, but are not limited to, liquidation sales, inventory sales and overstock sales.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 17500, 17501, 19088, 19150 and 19210, Business and Professions Code.

HISTORY

1. Amendment filed 8-5-70; effective thirtieth day thereafter (Register 70, No. 32).

2. Amendment filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

3. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

4. Amendment filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

§1306. Purchase of Additional Merchandise.

Note • History

No advertisement shall represent that an article is offered for sale at a saving when the offer is conditioned upon the purchase of additional merchandise unless: (1) the terms and conditions imposed are clearly and correctly disclosed in immediate conjunction with the offer, and (2) the price charged for the additional merchandise required to be purchased is not more than the prevailing market price for the merchandise.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 17500, 17501, 19088, 19150 and 19210, Business and Professions Code.

HISTORY

1. Amendment filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Amendment filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

§1307. Pre-Ticketing.

Note • History

No article shall be advertised by means of a “pre-ticketed” price, whether such price is used alone or in conjunction with descriptive terminology and whether such price appears on tags or labels affixed to the article, or in material such as display cards which are used with the article at the point of sale, or otherwise. A “pre-ticketed price,” as used in this section, is a price which is in excess of the prevailing market price of the article to which it refers.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 17500, 17501, 19088, 19150 and 19210, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

2. Amendment filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

§1308. Imperfects, Irregulars, Seconds or Damaged.

Note • History

No article which is imperfect, irregular, a second or damaged shall be advertised in any manner which represents, or implies that the article is free from defects or is of the same grade or quality of the article as usually and customarily offered for sale in the regular course of business.

NOTE

Authority cited: Sections 19034 and 19088, Business and Professions Code. Reference: Sections 17500, 17531, 19150 and 19210, Business and Professions Code.

HISTORY

1. Amendment filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

§1309. Factory Outlet.

Note • History

“Factory Outlet,” “Factory Store,” “Factory Showroom,” or terms of similar import mean an establishment other than the factory where articles manufactured by the factory are sold; such terms shall not be used in any advertisement, sign, or by any other device or printed material unless the establishment is owned in its entirety by the factory and the factory is responsible for its operation, function, and pay of the employees and unless a minimum of 51 percent in dollar volume of the articles of furniture and bedding sold or offered for sale are manufactured by the factory.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 17500, 17501, 17505, 19088, 19150 and 19210, Business and Professions Code.

HISTORY

1. Amendment filed 8-5-70; effective thirtieth day thereafter (Register 70, No. 32).

2. Amendment filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

3. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

4. Amendment filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

§1309.1. Factory Sales.

Note • History

The term “Factory Sale” or terms of similar import shall not be used in any advertisement unless such advertisement is in connection with a sale of articles held in an establishment appropriated to the manufacture of those articles, or in connection with a sale conducted by an establishment as defined in Section 1309 of these regulations.

NOTE

Authority cited: Sections 19034 and 19088, Business and Professions Code. Reference: Sections 17500, 17501, 17505, 19150 and 19210, Business and Professions Code.

HISTORY

1. New section filed 8-5-70; effective thirtieth day thereafter (Register 70, No. 32).

2. Amendment of NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

§1309.2. Factory Direct.

Note • History

“Factory Direct,” “Factory to You,” “Manufacturer to You,” “Direct to You” and terms of similar import mean the sale of articles direct from the factory to the consumer; such terms shall not be used in any advertisement unless the transaction is between the two parties, billing of the articles is made by the factory direct to the consumer, and payment is made by the consumer direct to the factory.

NOTE

Authority cited: Sections 19034 and 19088, Business and Professions Code. Reference: Sections 17500, 17505, 19150 and 19210, Business and Professions Code.

HISTORY

1. New section filed 8-5-70; effective thirtieth day thereafter (Register 70, No. 32).

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

§1310. Custom Made.

Note • History

No article shall be advertised by means of the terms “custom made,” “custom-built,” “custom-grade,” “made-to-order,” or any term of similar import, unless the article has been or will be made to the order and specifications of a particular ultimate user. An article does not meet the requirements of this section merely because the customer has a choice of coverings.

NOTE

Authority cited: Sections 19034 and 19088, Business and Professions Code. Reference: Sections 17500, 19010.1, 19150 and 19210, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

§1311. Labor Free.

Note • History

No advertisement shall represent or imply by means of the term “Labor Free” or any term of similar import that services with respect to an article will be performed without charge when a charge is made for such services in any manner whatever, including but not limited to an increase in the usual charge for the article or any of the material used.

NOTE

Authority cited: Sections 19034 and 19088, Business and Professions Code. Reference: Sections 17500, 19150 and 19210, Business and Professions Code.

HISTORY

1. Amendment filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

§1312. Liquidation.

Note • History

No advertisement shall represent or imply, by means of the term “Going Out of Business,” “Selling Out,” “Closing Out,” “Liquidating,” or any term of similar import, that the advertiser is going out of business, or is disposing of all or a portion of a stock of merchandise, unless such representation is true and is not in any respect misleading as to the advertiser's discontinuing business or as to the types and quantity of merchandise intended to be included, and unless the articles offered for sale, and to be sold, during the sale are restricted to those articles on the premises or in transit from previous orders the date the sale is announced. A mere change of business location, business name or type of business entity does not constitute going out of business within the meaning of this section.

NOTE

Authority cited: Sections 19034 and 19088, Business and Professions Code. Reference: Sections 17500, 19150 and 19210, Business and Professions Code.

HISTORY

1. Amendment filed 8-5-70; effective thirtieth day thereafter (Register 70, No. 32).

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

§1313. Guarantees and Warranties.

Note • History

For the purpose of the Home Furnishings Act and of these regulations, the terms “guarantee” and “warranty” have like meanings. No advertisement shall contain any false or misleading representation concerning the nature, extent, duration, terms or cost of a guarantee of an article subject to the provisions of the Home Furnishings Act.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 17500, 19088, 19150, 19152 and 19210, Business and Professions Code.

HISTORY

1. Repealer of former Section 1313 and renumbering and amendment of former Section 1315 to Section 1313 filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42). For prior history, see Registers 81, No. 50 and 70, No. 32.

§1314. Disclosure of Guarantee.

Note • History

All guarantees shall be in writing and shall be displayed or a copy thereof delivered to the customer prior to the sale of any article of furniture or bedding represented to be covered by a guarantee. A guarantee shall be deemed false and misleading unless it conspicuously and clearly discloses in writing the following:

(a) The nature and extent of the guarantee including a description of all parts, characteristics or properties covered by or excluded from the guarantee, the duration of the guarantee, and what must be done by a claimant before the guarantor will fulfill his obligation (such as returning the product and paying service or labor charges).

(b) The manner in which the guarantor will perform. The guarantee shall state all conditions and limitations, and exactly what the guarantor will do under the guarantee, such as repair, replacement or refund. If the guarantor or recipient of the guarantee has an option as to what may satisfy the guarantee, this must be clearly stated.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 17500, 19150, 19152 and 19210, Business and Professions Code.

HISTORY

1. Repealer of former Section 1314 and renumbering of former Section 1315.1 to Section 1314 filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42). For prior history, see Registers 81, No. 50 and 70, No. 32.

§1315. Pro-Rata Guarantee.

Note • History

Any guarantee or any advertisement of a guarantee which provides for adjustment on a pro-rata basis shall be deemed false and misleading unless the guarantee and/or the advertisement conspicuously and clearly discloses this fact and the basis on which the guarantee will be prorated, e.g., the time the product has been used and in what manner the guarantor will perform. If adjustments are based on a price other than that paid by the purchaser, clear disclosure must be made of the amount.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 17500, 19150, 19152 and 19210, Business and Professions Code.

HISTORY

1. Renumbering and amendment of former Section 1315 to Section 1313, and renumbering and amendment of former Section 1315.2 to Section 1315 filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42). For prior history, see Registers 81, No. 50 and 70, No. 32.

§1315.1. Disclosure of Guarantee. [Renumbered]

Note • History

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 17500, 19150, 19152 and 19210, Business and Professions Cod.

HISTORY

1. New section filed 8-5-70; effective thirtieth day thereafter (Register 70, No. 32).

2. Amendment of NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Renumbering to Section 1314 filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

§1315.2. Pro-Rata Guarantee. [Renumbered]

Note • History

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 17500, 19150, 19152 and 19210, Business and Professions Code.

HISTORY

1. New section filed 8-5-70; effective thirtieth day thereafter (Register 70, No. 32).

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Renumbering and amendment to Section 1315 filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

§1316. Secondhand Merchandise.

Note • History

No article which is secondhand, as defined in the act, shall be advertised in any manner which represents or implies that the article is new.

NOTE

Authority cited: Sections 19034 and 19088, Business and Professions Code. Reference: Sections 19008, 19008.5, 19008.6 and 19150, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

§1317. Misleading, Defined. [Repealed]

Note • History

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Section 19150 and 19210, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

2. Repealer filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

§1318. Knowledge. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

Article 11. Latex Foam Rubber and Filling Regulations

§1327. Labeling Requirements. [Repealed]

History

HISTORY

1. New Article 14 (Sections 1327 through 1332) filed 8-17-66; effective thirtieth day thereafter (Register 66, No. 27).

2. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

3. Article 14 (Sections 1327-1332) renumbered to Article 11 (Sections 1329-1332) filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

4. Amendment of article 11 heading filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1328. Official Law Label Requirements. [Repealed]

History

HISTORY

1. Repealer filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19). For prior history, see Register 68, No. 25.

§1329. Definitions and Grades of Latex Foam.

Note • History

(a) Latex foam is used as a filling material in various bedding products including mattresses, futons, and bed pillows. The term “Latex Foam” or “Latex Foam Rubber” may be used interchangeably and shall mean filling material made from synthetic latex foam (polychloroprene), natural latex foam, reclaimed rubber or rubber-like materials or a mixture of the above. The cured foam shall consist of a network of open or inter-connecting cells uniform in size and character. Latex foam may be used as a molded fill containing an outer skin or as slabstock fill (sheets, strips or other specific shapes) cut to specific sizes and containing no skin. Latex foam rubbers may be either cored or solid.

(b) The term “first quality” may be used in conjunction with the terms latex foam or latex foam rubber provided the foam does not exceed a minor level of physical defects such as a surface or internal voids of up to one inch, loose skin up to 16 square inches, foreign materials up to 1/8 inch in diameter, shinkage marks up to 1/8 inch in depth, pock marks or pour patterns up to 1/8 inch in depth.

(c) Irregular Latex Foam or Irregular Latex Foam Rubber shall mean any foam which has a moderate level of physical defects, such as surface or internal voids 1 to 3 inches deep, 16 to 32 square inches of loose skin, foreign materials 1/8 to 1/4 inch in diameter, shinkage marks between 1/8 and 1/4 inch in depth, pock marks or pour patterns 1/8 to 1/4 inch in depth.

Labeling example: Irregular Latex Foam Rubber

(d) Scrap Latex Foam or Scrap Latex Foam Rubber shall mean any foam which contains an excessive amount of physical defects such as surface or internal voids exceeding 3 inches, loose skin over 32 square inches, foreign materials over 1/4 inch in diameter, shinkage marks over 1/4 inch in depth, pock marks or pour patterns over 1/4 inch in depth, and also means any latex foam product consisting of loose pieces of latex foam or assembled loose pieces of latex foam (excluding assembly of the molded half sections).

NOTE

Authority cited: Sections 19034, 19089 and 19150, Business and Professions Code. Reference: Sections 19081, 19085, 19088, 19089 and 19150, Business and Professions Code.

HISTORY

1. Amendment of subsections (b), (d) and (f) filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Amendment filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1330. Physical Requirements of Latex Foam.

Note • History

Any latex foam which does not meet any one of the following minimum physical requirements shall be designated on the law label as “Scrap Latex Foam” or “Scrap Latex Foam Rubber.”

(a) Adhesive Bond. The bond shall be stronger than the adjoining foam when separated by hand. The seam shall not be noticeably hard when felt with the palm of the hand.

(b) The latex foam shall be constructed of a single piece or, if used to construct a pillow insert, two molded half sections. Modifications which are designed to enhance a special feature of the product are acceptable when such modifications have been approved by the Bureau.

NOTE

Authority cited: Sections 19034, 19089 and 19150, Business and Professions Code. Reference: Sections 19081, 19085, 19088, 19089 and 19150, Business and Professions Code.

HISTORY

1. Amendment filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

2. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Amendment filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1331. Material. [Repealed]

Note • History

NOTE

Authority cited: Sections 19034, 19089 and 19150, Business and Professions Code. Reference: Sections 19081, 19088, 19089 and 19150, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

2. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1332. Construction and Workmanship. [Repealed]

Note • History

NOTE

Authority cited: Sections 19034, 19089 and 19150, Business and Professions Code. Reference: Sections 19081, 19088, 19089 and 19150, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

2. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

Article 12. Liquid--Filled Bedding Regulations [Repealed]

HISTORY

1. Change without regulatory effect repealing article 12 (sections 1350-1360) filed 10-23-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 43). For prior history of sections 1350.1, 1359.1 and 1359.2, see Register 82, No. 42.

Article 13. Flammability Regulations

§1370. Flame Resistant, Flame Retardant.

Note • History

(a) Filling materials labeled as “flame resistant,” “flame retardant” and words of similar import shall be tested in accordance with, and shall meet the requirements of, the State of California, Bureau of Home Furnishings Technical Bulletin No. 117, entitled “Requirements, Test Procedures and Apparatus for Testing the Flame Retardance of Filling Materials Used in Upholstered Furniture,” dated March 2000.

(b) Fabrics labeled as “flame resistant,” “flame retardant,” and words of similar import shall be tested in accordance with, and shall meet the requirements of, the Sate of California, Bureau of Home Furnishings Technical Bulletin No. 105, entitled, “Requirements, Test Procedures and Apparatus for Testing the Flame Retardance of Fabrics,” dated January 1980.

NOTE

Authority cited: Sections 19034 and 19161, Business and Professions Code. Reference: Section 19161, Business and Professions Code.

HISTORY

1. New Article 19 (§§ 1370, 1371, 1372) filed 2-15-73; effective thirtieth day thereafter (Register 73, No. 7).

2. Article 19 (Sections 1370-1373) renumbered to Article 13 (Sections 1370-1373) 5-10-74; effective thirtieth day thereafter (Register 74, No. 19).

3. Amendment of NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

4. Amendment filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

5. Amendment of subsection (a) filed 8-16-2000; operative 8-16-2000 pursuant to Government Code section 11343.4(d) (Register 2000, No. 33).

§1371. Mattresses--Open-Flame Resistance.

Note • History

(a) All mattresses and mattress sets manufactured for sale in California shall meet the open-flame resistance and flammability labeling requirements of all regulations set forth in Part 1633 of Title 16 of the Code of Federal Regulations, titled “Standard for the Flammability (Open Flame) of Mattress Sets”, effective July 1, 2007.

(b) In addition to the standards set forth in subdivision (a), every manufacturer or importer that is subject to the standards set forth in Part 1633 of Title 16 of the Code of Federal Regulations, shall meet all other applicable requirements of that part, including 16 CFR 1633.11.

One-of-a-kind (custom made) mattress sets are exempt pursuant to 16 CFR Sections 1633.1 and 1633.13(c), if the criteria for exemption can be met.

(d) For the purpose of interpreting the requirements of this section, the terms “mattress” and “mattress set” shall have the meanings set forth in section 1633.2 of Title 16 of the Code of Federal Regulations, effective July 1, 2007.

(e) Failure to comply with subdivisions (a) and (b) shall constitute grounds for discipline per Section 19210 of the Business and Professions Code.

NOTE

Authority cited: Sections 19034 and 19161, Business and Professions Code. Reference: Sections 19161, 19081, 19089.5 and 19210, Business and Professions Code; and Code of Federal Regulations, Title 16, Part 1633.

HISTORY

1. Amendment filed 11-10-76 as an emergency; effective upon filing (Register 76, No. 46).

2. Certificate of Compliance filed 1-12-77 (Register 77, No. 3).

3. Amendment filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

4. Amendment of section heading, section and Note filed 1-22-2004; operative 1-1-2005 (Register 2004, No. 4).

5. Change without regulatory effect amending subsection (b) filed 10-13-2004 pursuant to section 100, title 1, California Code of Regulations (Register 2004, No. 42).

6. Change without regulatory effect amending subsection (i) (including new label) filed 2-4-2005 pursuant to section 100, title 1, California Code of Regulations (Register 2005, No. 5).

7. Amendment of section heading, section and Note filed 11-9-2007; operative 12-9-2007 (Register 2007, No. 45).

§1372. Mattress Labeling and Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 19034 and 19161, Business and Professions Code. Reference: Section 19161, Business and Professions Code.

HISTORY

1. Repealer filed 11-10-76 as an emergency; effective upon filing (Register 76, No. 46).

2. Certificate of Compliance filed 1-12-77 (Register 77, No. 3).

§1373. Voluntary Notice. [Repealed]

Note • History

NOTE

Authority cited: Sections 19034 and 19161, Business and Professions Code. Reference: Section 19161, Business and Professions Code.

HISTORY

1. New section filed 4-25-73 as an emergency; effective upon filing (Register 73, No. 17).

2. Certificate of Compliance filed 8-3-73 (Register 73, No. 31).

3. Amendment filed 11-10-76 as an emergency; effective upon filing (Register 76, No. 46).

4. Certificate of Compliance filed 1-12-77 (Register 77. No. 3).

5. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1373.1. Non-Flame Retardant Polyurethane Foam. [Repealed]

Note • History

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19081 and 19089.5, Business and Professions Code.

HISTORY

1. New section filed 6-9-78 as an emergency; effective upon filing (Register 78, No. 23).

2. Certificate of Compliance filed 10-6-78 (Register 78, No. 40).

3. Repealer filed 1-22-2004; operative 1-1-2005 (Register 2004, No. 4).

§1373.2. Flammability; Flexible Polyurethane Foam.

Note • History

All flexible polyurethane foam in the form of slabs, blocks, or sheets, or which is shredded (loose or packaged), except polyurethane foam which cannot reasonably be expected to be used in or as an article of furniture or in or as a mattress, that is offered for sale to the general public at retail outlets in this state for non-commercial or non-manufacturing purposes shall meet the test requirements set forth in Section A, Part I; Section A, Part II and Section D, Part II of the State of California, Bureau of Home Furnishings Technical Bulletin No. 117, entitled “Requirements, Test Procedures and Apparatus for Testing the Flame Retardance of Filling Materials Used in Upholstered Furniture,” dated March 2000.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Section 19161.3, Business and Professions Code.

HISTORY

1. New section filed 3-20-85; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 85, No. 12).

2. Amendment filed 8-16-2000; operative 8-16-2000 pursuant to Government Code section 11343.4(d) (Register 2000, No. 33).

§1374. Flammability; Upholstered and Reupholstered Furniture.

Note • History

(a) All filling materials contained in any article of upholstered furniture, and all filling materials added to reupholstered furniture, shall meet the test requirements as set forth in the State of California, Bureau of Home Furnishings Technical Bulletin Number 117, entitled “Requirements, Test Procedures and Apparatus for Testing the Flame Retardance of Filling Materials Used in Upholstered Furniture,” dated March 2000.

(b) In addition to the requirements of subsection (a) above, finished articles of upholstered furniture may also be tested in accordance with the State of California, Bureau of Home Furnishings Technical Bulletin Number 116 entitled “Test Procedures and Apparatus for Testing the Flame Retardance of Upholstered Furniture,” dated January 1980.

(c) On and after March 1, 1992, all upholstered seating furniture sold for use in public occupancies, as defined in subsection (d) below, shall meet the test requirements set forth in the State of California, Bureau of Home Furnishings and Thermal Insulation Technical Bulletin Number 133, entitled “Flammability Test Procedure For Seating Furniture For Use in Public Occupancies,” dated January 1991.

(d) For purposes of this section, the term “public occupancies” shall mean:

(1) Jails, prisons, and penal institutions, as defined in Chapter 3 of the California State Building Standards Code.

(2) Hospitals, mental health facilities, and similar health care facilities, as defined in Chapter 3 of the California State Building Standards Code.

(3) Nursing homes, board and care facilities, and convalescent homes, as defined in Chapter 3 of the California State Building Standards Code.

(4) Child day care centers, as defined in Chapter 3 of the California State Building Standards Code.

(5) Public auditoriums and stadiums, as defined in Chapter 3 of the California State Building Standards Code.

(6) Public assembly areas, as defined in Chapter 3 of the California State Building Standards Code, containing ten (10) or more articles of seating furniture and located in hotels, motels and lodging houses.

(e) Public occupancies and public assembly areas, as defined in section 1374(d), which are fully sprinklered in accordance with either National Fire Protection Association (NFPA) Standard NFPA 13-1996 or Uniform Building Code Standard No. 38-1, dated 1988 shall comply with the requirements of section 1374(a) and may comply with the requirements of section 1374(c).

(f) The flammability requirements contained in this section are considered to be flammability performance standards. Testing under these standards shall be at the discretion of the licensee; however, products and materials offered for sale in this state shall meet all applicable flammability requirements established in these regulations.

NOTE

Authority cited: Sections 19034 and 19161, Business and Professions Code. Reference: Section 19161, Business and Professions Code.

HISTORY

1. New section filed 5-9-74; effective thirtieth day thereafter (Register 74, No. 19).

2. Repealer and new section filed 6-13-75; effective thirtieth day thereafter (Register 75, No. 24).

3. Repealer and new section filed 6-17-77; effective thirtieth day thereafter (Register 77, No. 25).

4. Amendment filed 10-4-77; effective thirtieth day thereafter (Register 77, No. 41).

5. Amendment filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

6. Amendment filed 3-20-85; effective upon filing pursuant to Government Code section 11346.2(d) (Register 85, No. 12).

7. New subsections (c)-(f) and amendment of NOTE filed 11-26-91; operative 3-1-92 (Register 92, No. 9).

8. Amendment of subsection (b) filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

9. Amendment of subsections (d)(1)-(6) and (e) filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

10. Amendment of subsection (a) filed 8-16-2000; operative 8-16-2000 pursuant to Government Code section 11343.4(d) (Register 2000, No. 33).

§1374.1. Exemptions.

Note • History

(a) Articles exempted from the provisions of Section 1374 of these regulations shall have a label attached to the surface area of the article, in plain view stating the following:

NOTICE

THIS ARTICLE DOES NOT MEET CALIFORNIA BUREAU OF HOME FURNISHING'S FLAMMABILITY REQUIREMENTS-- TECHNICAL BULLETIN 117. CARE SHOULD BE EXERCISED NEAR OPEN FLAME OR WITH BURNING CIGARETTES.

(b) The minimum size of the label shall be 2 x 3 inches and the minimum size of type shall be one-eighth inch in height. All type shall be in capital letters.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19081 and 19161.5, Business and Professions Code.

HISTORY

1. New section filed 6-17-77; effective thirtieth day thereafter (Register 77, No. 25).

§1374.2. Criteria for Exemption.

Note • History

Articles of upholstered furniture, other than furniture used for and in facilities designed for the care or treatment of humans, which meet any of the following criteria shall be exempt from compliance with the provisions of Section 19161 of the Home Furnishings Act:

(a) Cushions and pads intended solely for outdoor use.

(b) Any article which is smooth surfaced and contains no more than one-half (1/2) inch of filling material,provided that such article does not have a horizontal surface meeting a vertical surface.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Section 19161.5, Business and Professions Code.

HISTORY

1. New section filed 6-17-77; effective thirtieth day thereafter (Register 77, No. 25).

2. New subsection (c) filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

3. Amendment of first paragraph and repealer and new subsection (c) filed 11-29-2010; operative 12-29-2010 (Register 2010, No. 49).

§1374.3. Labeling.

Note • History

(a) Upholstered furniture conforming to the requirements of Section 1374(a) and 1374(b) of these regulations shall have a label permanently attached to the article, in plain view, stating the following:

NOTICE

THIS ARTICLE MEETS ALL FLAMMABILITY REQUIREMENTS OF CALIFORNIA BUREAU OF HOME FURNISHINGS TECHNICAL BULLETINS 116 AND 117. CARE SHOULD BE EXERCISED NEAR OPEN FLAME OR WITH BURNING CIGARETTES.

(b) Upholstered articles conforming to Section 1374(a) but which may not conform to Section 1374(b) shall have a label permanently attached to the article, in plain view, stating the following:

NOTICE

THIS ARTICLE MEETS THE FLAMMABILITY REQUIREMENTS OF CALIFORNIA BUREAU OF HOME FURNISHINGS TECHNICAL BULLETIN 117. CARE SHOULD BE EXERCISED NEAR OPEN FLAME OR WITH BURNING CIGARETTES.

(c) Articles of furniture conforming to the requirements of section 1374(c) shall have a label permanently attached to the article, in plain view, stating the following:

NOTICE

THIS ARTICLE IS MANUFACTURED FOR USE IN PUBLIC OCCUPANCIES AND MEETS THE FLAMMABILITY REQUIREMENTS OF CALIFORNIA BUREAU OF HOME FURNISHINGS TECHNICAL BULLETIN 133. CARE SHOULD BE EXERCISED NEAR OPEN FLAME OR WITH BURNING CIGARETTES.

(d) Minimum size of the label for subsections (a), (b) and (c) shall be 2 x 3 inches and the minimum size of the type shall be one-eighth inch in height. All type shall be in capital letters.

(e) All flammability labels described in sections 1373.1, 1374.1, and 1374.3 shall also comply with the labeling requirements of sections 1126(a) and (b).

NOTE

Authority cited: Sections 19034 and 19161, Business and Professions Code. Reference: Sections 19080, 19081 and 19161, Business and Professions Code.

HISTORY

1. New section filed 10-4-77; effective thirtieth day thereafter (Register 77, No. 41).

2. Amendment of subsection (a) and NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

3. Amendment filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

4. New subsections (c) and (e) and amendment of newly designated (d) and NOTE filed 11-26-91; operative 3-1-92 (Register 92, No. 9).

5. Amendment of subsections (a) and (b) filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

Article 14. Custom Upholsterers

§1375. Oral Consent to Revision of Estimate and/or Work Order.

Note • History

(a) Where a customer orally consents to work performed or materials supplied which exceed the estimated price, the date, time and name of the person receiving such consent and the conditions of such consent, if any, shall be set forth on the estimate and on the work order.

(b) Where a customer orally consents to work performed or materials supplied which differ from those specified in the work order, the date, time and name of the person receiving such consent, and the conditions of such consent, if any, shall be set forth on the work order.

NOTE

Authority cited: Section 19034, Business and Professions Code. Reference: Sections 19162 and 19163 Business and Professions Code.

HISTORY

1. New Article 14 (Sections 1375, 1375.1 through 1375.4) filed 8-15-74; effective thirtieth day thereafter (Register 74, No. 33).

2. Amendment filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

§1375.1. Work Order, Oral Consent, Written Record. [Repealed]

History

HISTORY

1. Repealer filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

§1375.2. Work Order--Copy to Customer. [Repealed]

History

HISTORY

1. Repealer filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

§1375.3. Work Order--Keeping of Records. [Repealed]

History

HISTORY

1. Repealer filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

§1375.4. Estimate and Work Order Form Requirements. [Renumbered]

Note • History

NOTE

Authority cited: Sections 19034, 19152 and 19163, Business and Professions Code. Reference: Sections 19162 and 19163, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

2. Renumbering and amendment to Section 1377 filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

§1376. Work Order--Copy to Customer: Records. [Repealed]

Note • History

NOTE

Authority cited: Sections 19034 and 19163, Business and Professions Code. Reference: Sections 19162 and 19163, Business and Professions Code.

HISTORY

1. New section filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

2. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1377. Estimate and Work Order Form Requirements.

Note • History

(a) Minimum Requirements. The items of information required by this article are minimum requirements which must be included on estimates and work orders. Other information may be included if it does not detract from or obscure the information required in these regulations.

(b) Heading on Estimate and Work Order Forms. The following statement shall appear at the top of each estimate or work order form:

NOTICE

This form required by Sections 19162 and 19163 of the

California Business and Professions Code.

(c) Designation of Forms. The form shall provide a means by which the custom upholsterer can indicate whether the form constitutes an estimate, work order, or both. This shall appear immediately below the statement required in (b) above.

(d) Specific Information Required. The custom upholsterer shall include on each estimate or work order form:

(1) The name, registry number, address and telephone number of the firm.

(2) The customer's name, address and telephone number.

(3) A reasonably detailed description of the article to be upholstered.

(4) Description of work to be done as follows:

(A) Whether new cushions are to be provided and if so, specify type of cushion.

(B) Whether existing fabric(s) are to be completely removed.

(D) If new filling material is to be used and if so, the form must state that a green law label specifying the contents of the article is to be attached.

(E) If frame is to be re-glued.

(F) Sufficient space to specify work to be done other than that shown above.

(5) Fabric information as follows:

(A) Kind of fiber fabric is composed of (generic name).

(B) Amount of yards required.

(D) Price of fabric per yard.

(E) If the fabric is stain repellant.

(6) Estimated date of completion.

(7) Total cost delivered to the customer.

(8) Dated signature of the customer.

(9) Dated signature of the firm representative.

(10) A space for any additional information or conditions pertaining to the estimate or work order.

(11) The time period within which the estimate is valid.

(e) Additional Charges. The following statement shall appear at the bottom of each estimate or work order: “Sections 19162 and 19163 of the Business and Professions Code provide that no charge shall be made in excess of the estimated price without the oral or written consent of the customer.”

NOTE

Authority cited: Sections 19034 and 19163, Business and Professions Code. Reference: Sections 19162 and 19163, Business and Professions Code.

HISTORY

1. Renumbering and amendment of former Section 1375.4 to Section 1377 filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42). For prior history, see Register 81, No. 50.

§1379. Disciplinary Guidelines.

Note • History

In reaching a decision on a disciplinary action under the Administrative Procedure Act (Government Code Section 11400 et seq.), the bureau shall consider the disciplinary guidelines entitled “Bureau of Home Furnishings and Thermal Insulation's Disciplinary Guidelines (August 1997)” which are hereby incorporated by reference. Deviation from these guidelines and orders, including the standard terms of probation, is appropriate where the bureau in its sole discretion determines that the facts of the particular case warrant such a deviation--for example: the presence of mitigating factors; the age of the case; evidentiary problems.

NOTE

Authority cited: Section 19034, Business and Professions Code; and Sections 11400.20 and 11400.21, Government Code. Reference: Sections 11400.20, 11400.21 and 11425.50(e), Government Code.

HISTORY

1. New section filed 11-5-97; operative 11-5-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 45).

Article 15. Denial, Suspension and Revocation of Licenses

§1380. Substantial Relation Criteria.

Note • History

For the purposes of denial, suspension or revocation of a license pursuant to Division 1.5 (commencing with Section 475) of the Business and Professions Code, a crime shall be considered to be substantially related to the qualifications, functions or duties of a licensee under Division 8, Chapter 3 (commencing with Section 19000) of the Business and Professions Code, if to a substantial degree it evidences present or potential unfitness of such licensee to perform the functions authorized by his licence in a manner consistent with the public health, safety, or welfare. Such crimes shall include but not be limited to:

(a) Those violations specifically enumerated in Articles 3 through 7, inclusive, and Article 9 of Chapter 3 of Division 8 of the Business and Professions Code. (Chapter 3 of Division 8 of the Business and Professions Code is commonly called the Home Furnishings Act.)

(b) Those violations specifically enumerated in Article 1 of Chapter 1 of Part 3 of Division 7 of the Business and Professions Code. (Article 1 of Chapter 1 of Part 3 of Division 7 of the Business and Professions Code is that portion of the Code which concerns general false and misleading advertising practices.)

NOTE

Authority cited: Sections 481 and 19034, Business and Professions Code. Reference: Sections 480 and 481, Business and Professions Code.

HISTORY

1. New Article 15 (§§ 1380-1382) filed 4-15-75; effective thirtieth day thereafter (Register 75, No. 16). For prior history of Article 15, see Registers 74, No. 19; 68, No. 25; and 66, No. 27.

2. Amendment filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

§1381. Criteria for Rehabilitation.

Note • History

When considering the denial, suspension or revocation of a license on the ground of conviction of a crime the Bureau will consider the following criteria:

(a) The nature and severity of the offense(s).

(b) Total criminal record.

(d) Whether the licensee has complied with any or all terms of parole, probation, restitution or any other sanctions lawfully imposed against the licensee.

(e) Evidence, if any, of rehabilitation submitted by the licensee.

(1) Include (if applicable) evidence of expungement proceedings pursuant to Section 1203.4 of the Penal Code.

NOTE

Authority cited: Sections 482 and 19034, Business and Professions Code. Reference: Sections 480 and 482, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

2. Amendment filed 10-15-82; effective thirtieth day thereafter (Register 82, No. 42).

§1382. Petition for Reinstatement.

Note • History

When considering a petition for reinstatement of a license under the provisions of Section 11522 of the Government Code, the Bureau will evaluate evidence of rehabilitation submitted by the licensee, considering those criteria specified in Section 1381 of this article.

NOTE

Authority cited: Sections 475 and 19034, Business and Professions Code. Reference: Sections 475, 480 and 482, Business and Professions Code.

HISTORY

1. New NOTE filed 12-10-81 as procedural and organizational; effective upon filing (Register 81, No. 50).

Article 15.5. Citation Regulations

§1383. Citations.

Note • History

The chief of the bureau is authorized to determine when and against whom a citation will be issued and to issue citations containing orders of abatement and/or fines for violations by any person as defined by Section 19002 of the Business and Professions Code who holds a license for a violation of provisions of law referred to in Section 1383.2 of this article.

NOTE

Authority cited: Sections 125.9, 148 and 19034, Business and Professions Code. Reference: Sections 125.9 and 148, Business and Professions Code.

HISTORY

1. New article 15.5 (sections 1383-1383.6) filed 9-8-93; operative 10-8-93 (Register 93, No. 37).

§1383.1. Citation Format.

Note • History

Each citation shall:

(a) be in writing;

(b) describe with particularity the nature of the violation, including specific reference to the provision of law determined to have been violated;

(c) contain assessment of an administrative fine and/or an order of abatement fixing a reasonable period of time for abatement;

(d) inform the cited person that if he or she desires a hearing to contest the finding of the violation, that hearing shall be requested by written notice to the bureau within 30 days of the issuance of the citation;

(e) be served upon the licensee personally or by certified mail.

NOTE

Authority cited: Sections 125.9, 148 and 19034, Business and Professions Code. Reference: Sections 125.9 and 148, Business and Professions Code.

HISTORY

1. New section filed 9-8-93; operative 10-8-93 (Register 93, No. 37).

§1383.2. Fines.

Note • History

(a) The chief shall assess fines in accordance with the following schedule: provided, however, in no case shall the total exceed $2,500 for each inspection made with respect to the violation.

Rule* Description Range of Fines

Article 1. General Provisions

1108 Procedure Re License $150 to 1,500

1109 “Withhold from Sale” Tag 100 to 1,000

1110 Names of Filling Materials 100 to 1,000

1113 Deviation from Percentages Stated 100 to 1,000

1114 Water Repellent, Water Resistant 100 to 1,000

1116 Mildew Proof, Mildew Resistant 100 to 1,000

1118 Moth Proof, Moth Resistant 100 to 1,000

1119 Bacteria Proof, Odor Resistant 100 to 1,000

1120 Stain Proof, Stain Resistant 100 to 1,000

1121 Soil Resistant, Soil Repellent 100 to 1,000

Article 2. Official Law Labels for Upholstered Furniture and Bedding and Bulk Filling Materials

1125 Labelling Requirements 100 to 1,000

1126 Official Law Label Requirements 100 to 1,000

Article 2.5. Universal Filling Requirements

1130 Cleanliness 100 to 1,000

1131 Oil and Grease Limitations 100 to 1,000

1132 Trash Limitation - Vegetable Fibers 100 to 1,000

1133 Sludge Limitations 100 to 1,000

1134 Residue Limitations 100 to 1,000

Article 3. Universal Definitions and Labeling

1135 Terms of Definition and Label 100 to 1,000

Requirements

1137 Care Instructions 100 to 1,000

Article 5. Plumage Regulations

1192.1 Plumage Products - Comply with 100 to 1,000

Federal Standards

Article 9. Sanitization Regulations

1253 Chamber Identification 100 to 1,000

1254 Lot (sanitization) 100 to 1,000

1256 Records (sanitization) 100 to 1,000

1258 Method of Sanitization 100 to 1,000

1265 Disinfecting (sanitization) 100 to 1,000

1266 Official Sanitization Label 100 to 1,000

(sanitization) Requirements

Article 10. False or Misleading Advertising

1301 Former Price 200 to 2,000

1302 Former Price of Same Article 200 to 2,000

1304.1 Bait and Switch Advertising 200 to 2,000

1305 Special Sale 200 to 2,000

1306 Purchase of Additional Merchandise 200 to 2,000

1307 Pre-Ticketing 200 to 2,000

1308 Imperfects, Irregulars, Second or 200 to 2,000

Damaged

1309 Factory Outlet 200 to 2,000

1309.1 Factory Sales 200 to 2,000

1309.2 Factory Direct 200 to 2,000

1310 Custom Made 200 to 2,000

1311 Labor Free 200 to 2,000

1312 Liquidation 200 to 2,000

1313 Guarantee and Warranty 200 to 2,000

1314 Disclosure of Guarantee 200 to 2,000

1315 Pro-rata Guarantee 200 to 2,000

1316 Secondhand Merchandise 200 to 2,000

Article 12. Liquid-Filled Bedding Regulations

1351 Official Law Labels (waterbeds) 100 to 1,000

1353 Information Label (waterbeds) 100 to 1,000

1354 Water Mattress (waterbeds) 100 to 1,000

1355 Waterbed Lines (waterbeds) 100 to 1,000

1356 Waterbed Frames (waterbeds) 100 to 1,000

1356.1 Waterbed Frame Addition (waterbeds) 100 to 1,000

1356.2 Waterbed Deck (waterbeds) 100 to 1,000

1356.3 Waterbed Riser (waterbeds) 100 to 1,000

1357 Waterbed Heaters (waterbeds) 100 to 1,000

1358 Quality Control (waterbeds) 100 to 1,000

1359 Manufacturing Facilities 100 to 1,000

(waterbeds)

1360 Required Consumer Information 100 to 1,000

(waterbeds)

Article 13. Flammability Regulations

1370 Flame Resistant, Flame Retardant 250 to 2,500

1371 Mattresses 250 to 2,500

1373.1 Non-Flame Retardant Polyurethane 250 to 2,500

Foam

1373.2 Flammability; Flexible Polyurethane 250 to 2,500

Foam

1374 Flammability; Upholstered and 250 to 2,500

Reupholstered Furniture

Rule* Description Range of Fines

1374.1 Exemptions 250 to 2,500

1374.3 Labeling 100 to 1,000

Article 14. Custom Upholsters

1375 Oral Consent to Revision of Estimate 150 to 1,500

and/or Work Order

1377 Estimate and Work Order Form 150 to 1,500

Requirements

Business and Professions Code Section

Article 3. Licensing

19060 Separate license for each branch 150 to 1,500

house

19060.5 On his own account 150 to 1,500

19060.6 Contracts for repair of furniture 150 to 1,500

and bedding

19061 One address, multiple names 150 to 1,500

19062 Posting of license 100 to 1,000

Article 4. Application of Chapter

19071 Sanitization 100 to 1,000

19072 Compliance with chapter defined 150 to 1,500

19072.5 Responsibility for labeling 100 to 1,000

19072.6 Labeling of slip seats 100 to 1,000

Article 5. Labeling

19080 Law label 100 to 1,000

19083 Attaching labels 100 to 1,000

19084 Printing on one side 100 to 1,000

19085 Advertising on label 100 to 1,000

19086 Covering label 100 to 1,000

19087 Removal of labels 250 to 2,500

19088 Misleading information on labels 200 to 2,000

19089.3 Waterbed labels 100 to 1,000

19089.5 Non fire retardant material label 250 to 2,500

19092 Secondhand material label 100 to 1,000

19093 Custom Upholster label 100 to 1,000

Article 6. Sanitization

19121 Resale of soiled bedding 100 to 1,000

19122 Testing of sanitization equipment 100 to 1,000

19123.4 Sanitization of secondhand filling 100 to 1,000

19123.5 Sanitization for resale 100 to 1,000

19123.6 Sanitization of secondhand bedding 100 to 1,000

19124 Sanitization in accordance with 100 to 1,000

regulations

19124.5 Affixing sanitization label 100 to 1,000

19127.5 Illegal possession of sanitization 100 to 1,000

label

19127.6 Sanitizer label records 100 to 1,000

19129 Sanitization of secondhand bedding 100 to 1,000

19131 Sanitization of bedding 250 to 2,500

-contagious disease

19132 Separation of sanitized items from 100 to 1,000

unsanitized items

Article 7. Regulations

19150 False advertising 200 to 2,000

19151 Misleading illustrations 200 to 2,000

19152 Unconditional warranties 200 to 2,000

19158 Custom upholsterer ID label 100 to 1,000

19160 Cleanliness of premises 100 to 1,000

19161 Fire retardant requirements 250 to 2,500

19161.3 Fire retardant polyurethane foam 250 to 2,500

19162 Custom upholsterer estimate 150 to 1,500

19163 Custom upholsterer work order 150 to 1,500

19165 Insulation product testing 250 to 2,500

Article 9. Enforcement

19204 Removal of Withhold tag 250 to 2,500

19205 Failure to produce withheld products 250 to 2,500

19206 Interference with an inspector's 250 to 2,500

duties

*References for Rules are to sections of Title 4 of the California Code of Regulations.

NOTE

Authority cited: Sections 125.9, 148 and 19034, Business and Professions Code. Reference: Sections 125.9 and 148, Business and Professions Code.

HISTORY

1. New section filed 9-8-93; operative 10-8-93 (Register 93, No. 37).

2. Amendment of subsection (a) and table filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

3. Amendment filed 8-19-98; operative 8-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 34).

§1383.3. Citation Factors.

Note • History

In assessing an administrative fine and issuing an order of abatement, the chief shall give due consideration to the following factors:

(a) The nature and severity of the violation.

(b) The good or bad faith of the cited person.

(d) Evidence that the violation was willful.

(e) The extent to which the cited person or entity has cooperated with the bureau

(f) The extent in which the cited person has mitigated or attempted to mitigate any loss caused by the violation.

(g) The extent of the consumer injury which is a direct and proximate result of the violation.

(h) Such other matters as justice may require.

NOTE

Authority cited: Sections 125.9, 148 and 19034, Business and Professions Code. Reference: Sections 125.9 and 148, Business and Professions Code.

HISTORY

1. New section filed 9-8-93; operative 10-8-93 (Register 93, No. 37).

§1383.4. Failure to Comply with Order.

Note • History

(a) The time allowed for the abatement of a violation shall begin the first day after the order of abatement has been served or received. If a cited person who has been issued an order of abatement is unable to complete the correction within the time set forth in the citation because of conditions beyond his or her control after the exercise of reasonable diligence, the person cited may request an extension of time from the chief in which to complete the correction. Such a request shall be in writing and shall be made within the time set forth for abatement.

(b) An order of abatement shall either be personally served or mailed by certified mail, return receipt requested.

(c) When an order of abatement is not contested or if the order is appealed and the person or entity cited does not prevail, failure to abate the violation charged within the time specified in the citation shall constitute a violation and failure to comply with the order of abatement. Failure to timely comply with an order of abatement may result in disciplinary action being taken by the bureau or other appropriate judicial relief being taken against the person cited.

NOTE

Authority cited: Sections 125.9, 148 and 19034, Business and Professions Code. Reference: Sections 125.9 and 148, Business and Professions Code.

HISTORY

1. New section filed 9-8-93; operative 10-8-93 (Register 93, No. 37).

§1383.5. Contest of Citations.

Note • History

(a) In addition to requesting a hearing provided for in subdivision (b)(4) of Section 125.9 of the Business and Professions Code, the person cited may, within ten (10) days after service of the citation, notify the chief in writing of his or her request for a citation review conference with the chief regarding the acts charged in the citation.

(b) The chief shall hold, within 30 days from the receipt of the request, a citation review conference with the person cited or his or her legal counsel or authorized representative. At the conclusion of the citation review conference the chief may affirm, modify or dismiss the citation, including any fine levied or order of abatement issued. The chief shall state in writing the reasons for his or her action and transmit a copy of his or her findings and decision to the person cited. This decision shall be deemed to be a final order with regard to the citation issued, including the fine levied and the order of abatement.

(c) The person cited does not waive his or her right to request a hearing to contest the citation by requesting a citation review conference after which the citation is affirmed by the chief. If the citation, including any fine levied or order of abatement, is modified, the citation originally issued shall be considered withdrawn and the new citation issued. If a hearing is requested for the subsequent citation, it shall be requested within 30 days in accordance with the subdivision (b)(4) of Section 125.9 of the Business and Professions Code.

NOTE

Authority cited: Sections 125.9, 148 and 19034, Business and Professions Code. Reference: Sections 125.9 and 148, Business and Professions Code.

HISTORY

1. New section filed 9-8-93; operative 10-8-93 (Register 93, No. 37).

§1383.6. Unlicensed Practice.

Note • History

The chief may issue citations, in accordance with Section 125.9 of the code, against any unlicensed person who is acting in the capacity of a licensee under the jurisdiction of the bureau and who is not otherwise exempt from licensure. Each citation shall contain an order of abatement fixing a reasonable period of time for abatement of a violation and may contain assessment of an administrative fine. Administrative fines shall be in a range from $100 to $2,500 for each investigation. Any sanction authorized for the activity under this section shall be separate from and in addition to any other civil or criminal remedies.

NOTE

Authority cited: Sections 148 and 19034, Business and Professions Code. Reference: Sections 125.9 and 148, Business and Professions Code.

HISTORY

1. New section filed 9-8-93; operative 10-8-93 (Register 93, No. 37).

Article 16. Complaint Disclosure

§1385. Public Access to Information.

Note • History

NOTE

Authority and reference cited: Section 19034, Business and Professions Code.

HISTORY

1. New Article 16 (Sections 1385-1385.4) filed 3-9-81; effective thirtieth day thereafter (Register 81, No. 11). For prior history, see Registers 68, No. 25; and 66, No. 27.

2. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1385.1. Information to Be Provided Regarding Complaints.

Note • History

NOTE

Authority and reference cited: Section 19034, Business and Professions Code.

HISTORY

1. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1385.2. Information to Be Provided Regarding Disciplinary Actions.

Note • History

NOTE

Authority and reference cited: Section 19034, Business and Professions Code.

HISTORY

1. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1385.3. Information to Be Provided Regarding License Status.

Note • History

NOTE

Authority and reference cited: Section 19034, Business and Professions Code.

HISTORY

1. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

§1385.4. Quantity of Information to Be Provided per Week.

Note • History

NOTE

Authority and reference cited: Section 19034, Business and Professions Code.

HISTORY

1. Repealer filed 7-24-96; operative 8-23-96 (Register 96, No. 30).

Article 17.

HISTORY

1. Repealer of Article 17 (Sections 1343-1349) filed 5-10-74; effective thirtieth day thereafter (Register 74, No. 19). For prior history of Article 17, see Register 66, No. 27.

Division 4. California Horse Racing Board

(Originally Printed 3-22-45)

Article 1. Racing Board Powers and Jurisdiction

§1400. Powers Reserved.

Note • History

All powers of the Board not specifically defined in these rules and regulations are reserved to the Board.

NOTE

Authority cited: Article IV of Section 19b, California Constitution and Sections 19420, 19440, 19460 and 19562, Business and Professions Code.

HISTORY

1. Repealer of Chapter 4 (§§ 1400 through 2011, not consecutive) and new Chapter 4 (§§ 1400 through 1990, not consecutive) filed 8-1-73; designated effective 9-1-73 (Register 73, No. 31). For prior history, see Registers 60, Nos. 5, 8, 20, 24, 25; 61, No. 16; 63, Nos. 4, 20; 64, Nos. 12, 23; 65, Nos. 2, 6, 9, 15, 18; 66, Nos. 5, 10, 23, 40; 67, Nos. 18, 38, 43; 68, No. 27; 69, Nos. 22, 29, 38; 70, Nos. 6, 14, 27, 40, 47, 48; 71, Nos. 6, 19, 27, 28, 35, 40; 72, No. 38.

§1401. Jurisdiction.

The jurisdiction of the Board over matters covered by law or the rules is continuous throughout the year.

§1402. Controlling Authority.

Note • History

The law, rules, and orders of the Board supersede the conditions of a race or race meeting and govern thoroughbred, harness, quarter horse, appaloosa, arabian, paint and mule racing. The stewards may enforce rules or conditions set forth by breed registry organizations if such rules or conditions are not inconsistent with the rules of the Board. The breed registry organizations are the Jockey Club for thoroughbred racing, the United States Trotting Association for harness racing, the American Quarter Horse Association for quarter horse racing, the Appaloosa Horse Club for appaloosa racing, the Arabian Horse Registry of America for arabian racing, the American Paint Horse Association for paint racing, and the American Mule Association for mule racing.

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Sections 19562, 19563, 19564 and 19703, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

2. Amendment filed 3-24-92; operative 4-23-92 (Register 92, No. 13).

3. Change without regulatory effect amending section and Note filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

4. Editorial correction of Note (Register 97, No. 26).

5. Change without regulatory effect amending section and Note filed 10-14-2004 pursuant to section 100, title 1, California Code of Regulations (Register 2004, No. 42).

§1403. Rules Applicable. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1404. Punishment for Violation. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1405. Punishment by the Board.

Note • History

Violation of any provision of this Division, whether or not a penalty is fixed therein, is punishable in the discretion of the Board by revocation or suspension of any license, by fine, or by exclusion from all racing inclosures under the jurisdiction of the Board, or by any combination of these penalties. The Board may independently punish any misconduct of any person connected with racing.

NOTE

Authority cited: Sections 19420, 19440, 19562, 19572 and 19703, Business and Professions Code. Reference: Sections 19460, 19461, 19517, 19661 and 19702, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

2. Change without regulatory effect amending section filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

3. Change without regulatory effect amending section filed 4-16-2002 pursuant to section 100, title 1, California Code of Regulations (Register 2002, No. 16).

§1406. Suspension of Rule.

For good cause, with or without a hearing, the Board may temporarily suspend the application of any of its rules upon any conditions it may impose. Every application for such action and any such action by the Board shall, insofar as possible, be in writing. If not in writing, it shall be confirmed in writing as soon thereafter as possible.

§1407. Extensions for Compliance.

If a licensee fails to perform an act, or obtain required action from the Board, within the time prescribed therefor by these rules, the Board, at some subsequent time, may allow the performance of such act or may take the necessary action with the same effect as if the same were performed within the prescribed time.

§1408. Order to Appear. [Repealed]

History

HISTORY

1. Repealer filed 9-15-82; effective thirtieth day thereafter (Register 82, No. 38).

§1409. Meetings of the Board. [Repealed]

History

HISTORY

1. Repealer filed 9-15-82; effective thirtieth day thereafter (Register 82, No. 38).

§1410. Notice of Meeting. [Repealed]

History

HISTORY

1. Repealer filed 9-15-82; effective thirtieth day thereafter (Register 82, No. 38).

§1411. Delegation of Authority. [Repealed]

History

HISTORY

1. Repealer filed 9-15-82; effective thirtieth day thereafter (Register 82, No. 38).

§1412. Interference with Board Investigation. [Repealed]

History

HISTORY

1. Repealer filed 9-15-82; effective thirtieth day thereafter (Register 82, No. 38).

§1413. Notice to Licensee.

Whenever notice is required to be given by the Board or the stewards, such notice shall be given in writing either by personal delivery to the person to be notified or by mailing such notice addressed to such person at his address as on file with the Board.

§1414. Appointment of Referee.

Note • History

When directed by the Board, any one commissioner, the Executive Director, any hearing officer assigned by the Office of Administrative Hearings or any other qualified person may sit as referee for the taking of evidence in any matter pending before the Board; any such referee shall report to the Board outlining all findings and the Board shall determine the matter as if such evidence had been presented to the full Board.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19420 and 19440, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adopting Note filed 6-7-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 23).

Article 2. Definitions

§1420. Definitions.

Note • History

As used in these rules:

(a) “Chairman” means the member elected by the Board to be Chairman of the Board and its presiding member.

(b) “Commissioner” means a member of the Board.

(c) “Age of Horse” means the age as reckoned beginning on the first day of January of the year in which the horse was foaled.

(d) “Authorized Agent” means an agent appointed by a written document which is signed by the owner and filed with the Board.

(e) “Breeder” means the owner of the dam at the time of foaling.

(f) “Conviction” includes a plea of guilty, forfeiture of bail, a judgment or verdict of guilty, or a conviction following a plea of nolo contendere, whether or not the conviction is later set aside pursuant to the provisions of Section 1203.4 of the Penal Code.

(g) “Driver” means one who drives and controls the horse from a seated position on a two-wheel vehicle.

(h) “Horse” means an equine and includes a stallion, gelding, mare, colt, filly or ridgling and includes mule, jack, jenny, ginnet, and hinney.

(i) “Jockey” means a race rider.

(j) “Licensee” means a licensee of the California Horse Racing Board.

(k) “Maiden” means a horse that has never won a race on the flat in a state or country where the races are covered by the Daily Racing Form or other similar authorized publication. A maiden that has been disqualified after finishing first is still a maiden. Conditions referring to maidens apply to the status at the time of starting.

(l) “Nominator” means a person in whose name a horse is entered to race.

(m) “Objection” means a formal complaint filed before a race with the stewards or the Board objecting to the eligibility of any horse to compete in the race or the right of any person to participate in the race.

(n) “Owner” includes the owner, part owner and lessee of any horse. An interest only in the earnings of a horse does not constitute ownership. If husband and wife, it is presumed that joint ownership exists.

(o) “Post” means the place on the race course from which a start is made.

(p) “Post Time” means the definite time for the start of a race, and is indicated by a clock device set up as directed by the Board.

(q) “Premises” means the inclosure and all other areas collectively utilized by an association in connection with its conduct of a licensed race meeting, including parking lots, auxiliary stabling areas, public inclosure and restricted areas, whether or not the areas are adjacent to the inclosure.

(r) “Protest” means a formal complaint filed after a race with the stewards or the Board protesting the right of any horse to a place, purse or award in the race, or protesting any decision of the stewards relating to the eligibility, participation or placing of any horse in a race.

(s) “Race” means a contest among horses for a purse, stake or reward, contested at an authorized race meeting. “Race” includes but is not limited to:

(1) Purse Race. A race for money or any other prize to which the owners of the horses engaged do not contribute.

(2) Stake Race. A race for which owners of horses entered or engaged for the race contribute to a purse for which money or any other prize may be added, nominations to which close 72 hours or more before starting.

(3) Claiming Race. A race in which any horse entered therein may be claimed in conformity with the rules established by the Board, except for horses declared ineligible for claiming under Rule 1634 of this division.

(4) Handicap Race. A race in which the weights to be carried by the entered horses are adjusted by a handicapper, board of handicappers or the racing secretary, to equalize their respective chances of winning.

(5) Overnight Race. A race in which entries close 72 hours or less, excluding Sundays, in advance of the first race of the day on which the race is to be run.

(6) Walkover. A stake race in which only one horse starts or in which all the starters are owned by the same interest.

(7) Invitational Stake Race. An invitational stake race or an invitational handicap race for which owners do not contribute to the purse, but which is advertised in the regular stakes program, shall also be considered a stake race.

(8) Non-wagering Race. A race contested without pari-mutuel wagering on its results including a race upon which pari-mutuel wagering is canceled.

(9) Match Race. A race contested between two horses under conditions of the contest agreed to by their owners.

(10) “Special Racing Event.” A race of unique interest, magnitude or fame. “Special racing event” shall also mean an exhibition race when approved by the Board.

(11) “Exhibition Race.” A race contested under conditions established by the association as a promotional event or to provide a special racing opportunity to a particular horse or class of horse or class of participants and to which the association contributes the purse or awards for the contest. No pari-mutuel wagering may be conducted on the results of an exhibition race.

(t) “Race on the Flat” means a race run over a course on which no jumps or other obstacles are placed.

(u) “Recognized Meeting,” “Race Meeting,” or “Authorized Meeting” means the entire period under the conduct of an association within the inclosure of the designated grounds, and for which the Board has granted a license. When the context in the rules applies, it may include a meeting conducted by an association in some other jurisdiction recognized by the Board.

(v) “Restricted Area” means those areas within the inclosure where admission can be obtained only upon presentation of authorized credentials, proper license or visitor's pass, including those areas designated as the stable area, receiving or detention barn, jockey room, saddling paddock, race course and pari-mutuel department.

(w) “Rules” means the Rules and Regulations of the California Horse Racing Board and the orders of the Board.

(x) “Starter” means a horse when it is in the starting gate stall, and, when the starter dispatches the field, the stall gate in front of the horse is opened.

(y) “Sulky” means a dual wheel racing vehicle with dual shafts not exceeding the height of the horses withers. Shafts must be hooked separately on each side.

(z) “Time of Race Meeting” means that period of time commencing at 12:01 A.M. on the first day of racing at a recognized meeting and concluding at 12:00 midnight after the final race of the last day of racing as allocated and licensed by the Board.

(aa) “Weight for Age” means the standard weight to be carried by a horse according to the scale established by the rules, and remains such though there be penalties or allowances.

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Sections 19401(e) and 19420, Business and Professions Code.

HISTORY

1. Amendment filed 8-3-79; effective thirtieth day thereafter (Register 79, No. 31).

2. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

3. New subsection (y) and subsection redesignation filed 6-23-94; operative 7-25-94 (Register 94, No. 25).

4. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

5. Amendment of subsections (k), (s)(3), (u) and (x) and amendment of Note filed 8-21-2008; operative 9-20-2008 (Register 2008, No. 34).

§1421. Included Terms. [Repealed]

History

HISTORY

1. Repealer filed 9-15-82; effective thirtieth day thereafter (Register 82, No. 38).

§1423. Gender and Number. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

Article 3. Racing Association

§1430. Allocation of Racing Weeks and Dates.

Note • History

The Board shall allocate racing weeks and dates for the conduct of horse racing in this State for such time periods and at such racing facilities as the Board determines will best subserve the purposes of the Horse Racing Law and which will be in the best interests of the people of California in accord with the intent of the Horse Racing Law. Upon a finding by the Board that the allocation of racing weeks and dates for any racing year is completed, the racing weeks and dates so allocated shall be subject to reconsideration or amendment only for conditions unforeseen at the time of the allocations. The allocation of racing weeks and dates does not commit the Board to the granting of a license to conduct a horseracing meeting to any specific racing association nor for the allotted time period nor at the racing facility scheduled for such racing weeks and dates.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Section 19530, Business and Professions Code.

HISTORY

1. Amendment filed 8-28-80; effective thirtieth day thereafter (Register 80, No. 35).

§1431. Notice of Intention to File for License.

Note • History

Every person who has not held a license to conduct a horseracing meeting in the preceding year who intends to file an application to conduct an authorized race meeting and/or an application for license to conduct a horseracing meeting shall file with the Board a Notice of Intention to file such applications. The required notice of intention shall be filed no later

than one hundred twenty (120) days in advance of the proposed or scheduled date for the commencement of the meeting intended to be specified in the application for license. Any prospective applicant for license to conduct a horseracing meeting failing to file timely the notice of intention may be disqualified and its application for license refused summarily by the Board. In the absence of any timely notice of intention filed by a prospective applicant intending to file an application for a license for a race meeting conducted in the preceding year by any other person the presumption shall be that the person having held the license to conduct the horseracing meeting in the preceding year is deemed to have been allocated the racing weeks and dates for a like horseracing meeting as scheduled by the Board for the current annual racing calendar.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Section 19530, Business and Professions Code.

HISTORY

1. Amendment filed 8-28-80; effective thirtieth day thereafter (Register 80, No. 35).

§1432. Board May Demand Information.

Note • History

The Board may require any racing association, prospective racing association or other person intending to make application for license to conduct a horseracing meeting to furnish the Board with a detailed proposal and disclosure as to its proposed racing program, purse program, officials, principals or shareholders, plant, premises, facility, finances, lease arrangements, agreements, contracts and such other information as the Board may require to determine the eligibility and qualifications of the association or person to conduct a race meeting.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Section 19480, Business and Professions Code.

HISTORY

1. Amendment filed 8-28-80; effective thirtieth day thereafter (Register 80, No. 35).

§1433. Application for License to Conduct a Horse Racing Meeting.

Note • History

(a) Unless the Board requires an earlier filing, at least 90 days before the time allocated by the Board for a race meeting to start, the association shall file with the Board an Application for License to Conduct a Horse Racing Meeting, CHRB-17 (Rev. 7/11), which is hereby incorporated by reference. Note: CHRB-17 incorporates by reference, the Personal History Record, CHRB-25A (Rev. 11/08). A California fair shall file with the Board an Application for License to Conduct a Horse Racing Meeting of a California Fair, CHRB-18 (Rev. 7/11), which is hereby incorporated by reference. Copies of CHRB-17 and CHRB-18 may be obtained at the California Horse Racing Board headquarters office.

(b) No racing association that operates four weeks or more of continuous Thoroughbred racing in a calendar year shall be licensed to conduct a horse racing meeting at a facility that has not installed a polymer synthetic type racing surface.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19480, 19481, 19481.3 and 19562, Business and Professions Code.

HISTORY

1. Amendment filed 8-28-80; effective thirtieth day thereafter (Register 80, No. 35).

2. Amendment filed 1-13-94; operative 2-14-94 (Register 94, No. 2).

3. Change without regulatory effect amending first paragraph filed 7-7-95 pursuant to section 100, title 1, California Code of Regulations (Register 95, No. 27).

4. Amendment of first paragraph filed 6-3-96; operative 7-3-96 (Register 96, No. 23).

5. Change without regulatory effect amending first paragraph filed 6-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 25).

6. Amendment of first paragraph and Note filed 4-14-98; operative 5-14-98 (Register 98, No. 16).

7. Amendment of section heading and first paragraph and repealer of subsections (a)-(u) filed 10-11-2001; operative 11-10-2001 (Register 2001, No. 41).

8. Amendment of section and Note filed 10-12-2005; operative 11-11-2005 (Register 2005, No. 41).

9. Amendment designating first paragraph as subsection (a), new subsection (b) and amendment of Note filed 1-26-2007; operative 2-25-2007 (Register 2007, No. 4).

10. Amendment of subsection (a) and Note filed 5-8-2007; operative 6-7-2007 (Register 2007, No. 19).

11. Amendment filed 12-7-2011; operative 1-6-2012 (Register 2011, No. 49).

§1434. Denial of License.

Note • History

Notwithstanding the allocation of racing weeks and dates and Rule 1431 of this division the Board may deny a license to conduct a horse racing meeting when it determines the proposed horse racing meeting is not in the public interest or fails to serve the purposes of the Horse Racing Law or fails to meet any requirement of the law or the Board's regulations. In addition to any other reason, the Board may refuse to issue or deny a license to any applicant who fails to provide the Board with evidence that it has a binding commitment for the use of an approved racing facility or who fails to provide the Board with evidence of its ability to meet its estimated financial obligations for the conduct of the horse racing meeting.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Section 19480, Business and Professions Code.

HISTORY

1. Amendment filed 8-28-80; effective thirtieth day thereafter (Register 80, No. 35).

2. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1435. Transfer or Assignment of License. [Repealed]

History

HISTORY

1. Repealer filed 9-15-82; effective thirtieth day thereafter (Register 82, No. 38).

§1436. Duty of Licensed Association.

Each association shall observe and enforce the rules. The license is granted on the condition that the association, its officials, its employees and its concessionaires shall obey all decisions and orders of the Board.

§1437. Conditions of a Race Meeting.

The association may impose conditions for its race meeting as it may deem necessary, provided, however, that such conditions may not conflict with the rules, regulations or orders of the Board, that such conditions are published in the condition book or otherwise made available to all licensees participating in its race meeting, that such conditions are posted on the association bulletin board, and a copy of the conditions filed with the Board. The association may also impose requirements, qualifications or requisites for its race meeting as it may deem appropriate.

§1439. List of Shareholders.

Each association shall, if a corporation, maintain a current list of stockholders and the number of shares held by each and such list shall be available for inspection by the Board. The association shall immediately inform the Board of any change of corporate officers or directors, or any change in stockholders when such change of the holdings of any individual stockholder exceeds 5% of the outstanding shares of the corporation. The real owner of the stock shall be listed if known. The Board may require the disclosure of the real name of any individual or person who holds over 5% of the outstanding shares of any racing association and may refuse to issue a license to, or suspend the license of, any association which fails to disclose the real name of such shareholders if such information is known to or ascertainable by the association.

§1440. Approval of Concessionaires.

Note • History

(a) No guest association, as defined in Article 24, Rule 2056(h) in this Division, or racing association or person licensed by the Board to conduct a horseracing meeting shall engage, contract with or permit any person or entity to act as a concessionaire for the purpose of providing service to the association in the form of food and beverage service, janitorial service, or racing selection service unless such person or entity providing such service has been approved by the Board.

(b) In order to be approved, a person or entity who contracts to act as a concessionaire shall submit to the Board CHRB-87 (Rev. 5/97) Application for License /Contractor or Sub-contractor, Application for Approval/Concessionaire, which is hereby incorporated by reference. The completed CHRB-87 shall accompany CHRB-17 Application for License to Conduct a Horseracing Meeting or CHRB-18 Application For License to Conduct a Horseracing Meeting of a California Fair.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Section 19420, 19440 and 19510, Business and Professions Code.

HISTORY

1. Amendment filed 8-28-80; designated effective 10-25-80 (Register 80, No. 35).

2. Amendment of section and Note filed 9-19-94; operative 10-19-94 (Register 94, No. 38).

3. Change without regulatory effect amending section filed 6-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 25).

§1440.5. Licensing of Contractors and Sub-contractors.

Note • History

(a) An entity acting in any of the following capacities shall procure the appropriate license by completing and submitting to the Board, CHRB-87 (Rev. 5/97), Application for License/Contractor or Sub-contractor, Application for Approval/Concessionaire which is hereby incorporated by reference, at least ninety (90) calendar days before the date the entity intends to commence business at live race meetings and/or simulcast wagering facilities and pay the required fee as follows:

(1) Totalizator Company $1,000

(2) Simulcast Service Supplier $1,000

(3) Video Production Company $250

(4) Timing Company $250

(5) Photo Finish Company $250

(b) Every license granted by the Board under this rule shall expire on the last day of the issuance month and is renewable annually.

(c) The Board shall notify an applicant in writing within fourteen (14) calendar days from the receipt date by the Board's Administrative office if its application is complete or deficient. If the application is deficient, the notice shall include:

(1) Instructions as to what is required of the applicant to complete the application.

(2) Instructions for requesting additional time to satisfy the requirements listed in the notification, if needed.

(d) The Board shall approve or deny an application within ninety (90) calendar days from the receipt date by the Board unless the applicant requests and is granted additional time to supply information.

(e) If the Board denies an application, the applicant has thirty (30) calendar days, from the receipt date of the Board's denial notification, to request a reconsideration of the Board's decision. This request must be in writing and sent to the Board's Administrative office. The Board shall respond in writing to the reconsideration request within thirty (30) working days from the receipt date of the request. If reconsideration is denied, the applicant may file for judicial review in accordance with Section 11523 of the Government Code.

(f) The Board may deny, suspend or revoke the license on grounds or reasons which include, but are not limited to, the following determinations:

(1) The contractor/sub-contractor is ineligible to conduct business in this state pursuant to any federal or state statute.

(2) The contractor/sub-contractor or any of its officers, directors, partners or principal management employees have engaged in any activity which is a grounds for denial, suspension or revocation of a license pursuant to this Division, or has failed, refused or neglected to comply with any Board order, rule, regulation, or order by the Board's Stewards reasonably related to its operations as a contractor/sub-contractor. The license shall remain denied, suspended or revoked until all parties of the licensee comply with Board conditions. The remaining parties of the licensee shall not be prohibited from applying for a new license if compliance cannot be obtained from the offending party.

(g) If the Board fails to comply with the time frames outlined in this rule, the entity applicant may appeal, in writing, directly to the Board's Executive Director. Upon receipt of an appeal, the Executive Director shall render a decision, in writing to the applicant, within thirty (30) working days. If the appeal is decided in the applicant's favor, the license fee shall be refunded within fourteen (14) working days.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19510 and 19521, Business and Professions Code.

HISTORY

1. New section filed 9-12-95; operative 10-12-95 (Register 95, No. 37).

2. Change without regulatory effect amending subsections (a), (b), (f)(2) and (g) filed 6-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 25).

§1441. Photographic Device.

All associations shall install and maintain in good service a photographic device for photographing the finishes of all races to assist the placing judges and the stewards in determining the finishing positions of the horses. A photograph of each finish shall be promptly posted for public view in at least one conspicuous place in the public inclosure.

§1442. Photographic or Videotape Recording of Races.

All associations shall install and operate a system to provide a photographic or videotape recording of each race so that such recording clearly shows the position and action of the horses and jockeys at close enough range to be easily discernible. If a foul is claimed, or observed by the officials, no decision shall be rendered by the stewards until they have viewed the recording of the race. Except with prior approval of the Board, every race other than a race run solely on a straight course shall be recorded by use of at least three cameras to provide both panoramic and head-on views of the race.

§1443. Identification of Photographs.

All photographs or photographic or videotape recordings required by these rules shall be identified by indicating thereon the day, number of the race and the name of the association at which the race is held.

§1444. Altering Official Recordings.

No person shall cut, mutilate, alter or change any photofinish photograph, film patrol photo, photographic or videotape recording for the purpose of deceit or fraud of any type.

§1445. Preservation of Official Recordings.

All associations shall preserve all photographic or videotape recordings of all races for at least 90 days after the close of their meeting. Upon request of the Board the association shall furnish the Board with a clear positive print of the photographic recording of any race or a kinescope print of the videotape recording of any race.

§1446. Viewing Room Required.

The association shall maintain a viewing room for the purpose of projecting the photographic recording of races, or the videotape screening of the races, for viewing by jockeys, trainers, owners, and other interested persons authorized by the stewards.

§1447. Communication System Required.

Note • History

The association shall install and maintain in good service a communication system between the stewards' stand, pari-mutuel department, patrol judges, starter, ambulance locations, and other designated places.

NOTE

Authority cited: Section 19440, Business and Professions Code. Reference: Sections 19440 and 19460, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1448. Bulletin Board Required.

The association shall erect and maintain a bulletin board close to the racing secretary's office or in places where access is granted to all licensees, upon which all official notices of the Board shall be posted.

§1449. Distance Poles.

The distance poles shall be the following colors:

1/4 poles red and white horizontal stripes

1/8 poles green and white horizontal stripes

1/16 poles black and white horizontal stripes

§1450. Complaint Desk.

The association shall maintain a place where written complaints or claims of violations of the rules or laws may be filed. A copy of any written complaint or claim filed with the association shall be furnished the Board within 48 hours of its receipt.

§1451. Lottery Tickets Prohibited. [Repealed]

History

HISTORY

1. Repealer filed 9-15-82; effective thirtieth day thereafter (Register 82, No. 38).

§1452. Feed and Supplies.

No association shall grant an exclusive concession to any vendor of feed, racing supplies or racing services.

§1453. Racing Selection Services.

The association shall prohibit the sale, offering for sale, or giving away of any racing selection sheet, or other racing prediction which is required to be filed with the Board pursuant to the provisions of Section 19664 of the Business and Professions Code, upon the premises of the association, except with prior approval of the Board.

§1454. Board May Direct Notices on Program.

The Board may direct the association to publish in the program any information and notices to the public as it deems necessary.

§1456. Honoring Official Credentials.

Note • History

Credentials issued by the Board shall be honored for admission at all gates and entrances and to all places within the inclosure. Automobiles with vehicle decals issued by the Board shall be permitted ingress and egress at any point. Credentials issued by the Association of Racing Commissioners International, Inc. to its members, past members and staff shall be honored by the association for admission into the public inclosure when presented by such persons.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19420 and 19440, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 3-17-94; operative 4-18-94 (Register 94, No. 11).

§1457. Office Space for Board.

The association shall provide within its grounds adequate office space for use by the Board and its employees and shall provide such necessary office furniture and utilities as may be required for the conduct of the Board's business at such association's meeting.

§1458. Right of Board to Information.

Note • History

The association shall furnish the Board with a daily report of its attendance, pari-mutuel handle, license fee, commissions, and the names of all Cal-bred winners, all horses claimed and the claimants thereof, and any other information the Board may require.

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Sections 19440, 19560 and 19562, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1459. Telephone and Communication Systems. [Repealed]

History

HISTORY

1. Repealer filed 9-1-94; operative 10-3-94 (Register 94, No. 35).

§1460. Equipment and Apparatus Subject to Approval.

Note • History

All equipment, devices or apparatus used to officially record, time, photograph, film or videotape the racing program, or used within the pari-mutuel department for the sale, calculation, display of odds, or encasement of tickets, is subject to Board approval.

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Sections 19440, 19560, 19562 and 19592, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1461. Duty to Compile Official Program.

The association shall compile an official program for each racing day which shall contain the names of the horses which are to run in each race together with their respective post positions, age, color, sex, breeding, jockey, trainer, nominator, owners or stable name, racing colors, weight carried, conditions of the race, the order in which each race shall be run, the distance to be run, the value of each race, and the probable odds of each horse.

§1462. Duty to Maintain Record of Races.

The association shall maintain a complete record of all races of all authorized race meetings of the same type of racing being conducted by the association, and such records shall be maintained and retained for a period of ten years. This requirement may be met by chart books of Triangle Publications, the U.S.T.A., or the American Quarter Horse Association.

§1463. Power to Demand Inspection of Licenses and Documents. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1464. Association to Prohibit Unlicensed Participant. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1467. Paymaster of Purses.

Note • History

(a) The association shall appoint a paymaster of purses who shall maintain records as the association and the Board direct. All records shall be separate from those of the Board and are subject to inspection by the Board at any time. The duties of the paymaster of purses or their assistants shall consist of the following:

(1) Maintain records which shall include the name, address, state or country of residence, social security number or federal identification number of each horse owner, trainer, driver, jockey or apprentice jockey participating at the race meeting who has funds due or on deposit in their horsemen's account.

(2) Keep jockey and driver accounts, receive their fees and disburse said fees to the proper claimants.

(3) Verify that the correct claiming price is on deposit with the association before any claim in a claiming race is accepted as official.

(4) Receive and disburse the purses and other awards of each race.

(5) Receive all stakes, entrance money, fines, purchase money in claiming races and other monies that properly come into the paymaster's possession.

(6) Accept money belonging to another association, provided the money is returned within five working days to that association.

(7) Disclose the Cal-bred awards to the respective breed agencies.

(8) Accept and file all required statements of partnerships, assignments of interest, lease agreements, and registrations of authorized agents.

(9) Disburse all monies to the entitled individuals, unless otherwise provided in this section, within 30 calendar days after the meet ends.

(10) Estimate escrow accounts and receive, maintain and disburse funds as directed by the Board.

(11) Deduct from the horse owner's account and deposit into the account of the horse owner's trainer, 10 percent of the purse earned on any horse that finishes first, second or third at thoroughbred race meetings. Such payments shall be disbursed to the trainer and will be available at the office of the paymaster of purses no later than seven days after the race was conducted. Any amounts so paid shall be repaid to the paymaster forthwith by the trainer upon any order requiring redistribution.

(12) Deduct from the horse owner's account, and deposit into the account of the horse owner's trainer, 10 percent of the net purse earned on any horse that finishes first, second or third at quarter horse meetings. Such payments shall be disbursed to the trainer and will be available at the office of the paymaster of purses no later than seven days after the race was conducted. Any amounts so paid shall be repaid to the paymaster forthwith by the trainer upon any order requiring redistribution.

(b) For purposes of this regulation, “purse earned” or “net purse earned” means all amounts earned except in stakes races in which case “purse earned” or “net purse earned” means all amounts earned less any nomination, entry or starter fees paid by the owner.

(c) For purposes of subsections (a)(11) and (a)(12) above, horse owners may elect not to have 10 percent of the purse earned deducted from their account by filing with the paymaster of purses at each racing association at which the owner wishes it to be in effect, a form CHRB-134 (New 1/02), Notification of Exclusion To Trainer 10% Program, which is hereby incorporated by reference. The form CHRB-134 (New 1/02) is available at the office of the paymaster of purses at any race meeting.

(d) A form CHRB-134 (New 1/02) may be filed with the paymaster of purses at any time during a race meeting, and

(1) Shall apply to all horses owned in whole or in part by the owner,

(2) Shall be binding on all licensed owners with an interest in the horse or horses,

(3) Shall apply to all trainers employed by the owner, and

(4) Shall remain in force until written revocation is submitted to the paymaster at the race meeting at which the form CHRB-134 (New 1/02) was submitted.

(e) In addition to the duties in subsection (a), the paymaster of purses shall deduct from the horse owner's account 0.3 percent of the net purse earned by any thoroughbred horse at a thoroughbred racing association or Fair meeting, and deposit into the California Retirement Management Account (CARMA), a charitable trust fund maintained by the horsemen's organization representing thoroughbred horse owners (horsemen's organization), for distribution to California thoroughbred retirement/rehabilitation facilities, which provide livestock care and services to retired thoroughbred horses that competed in thoroughbred races in California.

(1) Thoroughbred horse owners may elect not to have the 0.3 percent deducted from the net purse by filing with the paymaster of purses at each racing association for each race meeting at which the owners wish it to be in effect, a form CHRB-206 (New 09/07), Notification of Exclusion of CARMA Contribution, which is hereby incorporated by reference. The form CHRB-206 (New 09/07) is available at the office of the paymaster of purses at any race meeting.

(2) The horsemen's organization shall distribute CARMA funds at least on an annual basis to retirement/rehabilitation facilities, as determined by the organization. Each such retirement/rehabilitation facility shall be:

(A) A nonprofit corporation or organization.

(B) Exempt or entitled to an exemption from federal or state income taxes.

(3) The horsemen's organization shall file with the Board within 90 days of the close of its fiscal year an audited financial statement of the CARMA.

NOTE

Authority cited: Sections 19420, 19440 and 19562, Business and Professions Code. Reference: Sections 19420, 19433, 19434, 19440 and 19562, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 1-31-2002; operative 3-2-2002 (Register 2002, No. 5).

2. Amendment filed 4-9-2003; operative 4-9-2003 (Register 2003, No. 15).

3. Amendment of section and Note filed 4-8-2008; operative 5-8-2008 (Register 2008, No. 15).

§1468. Ambulance Service.

Note • History

(a) The association shall provide the services of an ambulance and its properly qualified attendants at all times during the running of races at its meeting, or during the hours the association acts under an agreement as an auxiliary training and stabling facility for a host association.

(b) The association shall also provide the services of a horse ambulance at all times during the running of races at its meeting or during the hours the association permits the use of its race course for training purposes.

(c) A means of communication shall be provided by the association between a place of observation of the race course and the place where the required ambulances and their attendants are posted for prompt response in the event of accident to any person or horse.

(d) If the training facility is not subject to the provisions of subsection (a) it shall either meet the requirements of (a) or, in the alternative, submit for approval by the Executive Director or a designated representative, a written plan specifying emergency procedures for accidents at the facility, which shall include but not be limited to:

(1) A list, which includes response times, of at least two emergency medical services to be used by the facility, and at least two alternative emergency medical services to be used in the event the primary service is not available. The list may utilize a combination of ambulance services, fire departments or police services.

(2) The names of one or more facility employees with access to emergency first aid equipment and the location and nature of such equipment.

(3) The names of one or more facility employees who are trained in basic first aid and who hold a current CardioPulmonary Resuscitation (CPR) certification.

(4) The type and location of communication equipment, such as telephone or hand held radios, to be provided as a means for facility staff to contact emergency medical services.

(5) The locations on the facility where emergency medical service information is posted for public access. Such information shall include but not be limited to emergency telephone numbers of ambulance, fire and police services.

(e) The Executive Director or a designated representative shall, within 30 calendar days from the date the plan is received at Board headquarters, approve or disapprove, stating the reasons for disapproval, in writing the emergency plan submitted by the facility.

(1) An emergency procedure plan shall be disapproved if it fails to meet any of the requirements of subsections (d)(1) through (d)(5).

(2) Upon disapproval of an emergency procedure plan by the Executive Director or a designated representative, a revised emergency plan may be submitted to Board headquarters within 10 working days of the date the facility is notified of the disapproval.

(3) The Executive Director or a designated representative shall, within 10 working days from the date the revised plan is received at Board headquarters, disapprove or approve in writing the revised emergency plan submitted by the facility.

NOTE

Authority: Sections 19440 and 19460, Business and Professions Code. Reference: Sections 19440 and 19460, Business and Professions Code.

HISTORY

1. Amendment of section filed 10-8-91; operative 10-8-91 pursuant to Government Code section 11346.2(d) (Register 91, No. 52).

2. New subsections (e)(2) and (e)(3) filed 3-24-92; operative 4-23-92 (Register 92, No. 13).

3. Editorial correction of printing error in subsection (e)(1) (Register 92, No. 24).

4. Change without regulatory effect amending subsections (d), (e) and (e)(2)-(3) filed 6-7-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 23).

§1469. Safety of Race Course.

The association shall take cognizance of any complaint regarding the safety of its race course or premises, and shall maintain in safe condition the race course and all rails and other equipment required for the conduct of its races.

§1470. Accounting Practices and Responsibility.

Note • History

(a) Every association shall maintain in an approved depository those amounts deducted from the pari-mutuel handle which are retained by the association for distribution for purposes specified in the law, rules or agreements including, but not limited to purses, breeder's awards, and unclaimed pari-mutuel distribution. Each association and its managing officers are jointly and separately responsible to assure the amounts retained from the pari-mutuel handle are distributed under the law, rules or agreements (other than collective bargaining).

(b) Racing associations which have not previously operated, new operators of established associations, or associations which have not demonstrated financial stability, are required to make advanced payments, or posting a security instrument as a condition preceding the issuance of the racing license.

(c) The Board may, at its discretion, require periodic audits to determine that associations have funds available to meet those distributions for the purposes specified above.

NOTE

Authority cited: Section 19440, Business and Professions Code. Reference: Section 19434, Business and Professions Code.

HISTORY

1. New section filed 7-24-81; effective thirtieth day thereafter (Register 81, No. 30).

2. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

Article 3.5. Track Safety Standards

§1471. General Provisions and Conditions.

Note • History

(a) Pursuant to Section 19481 of the Business and Professions (B&P) Code, all horse racing associations, fairs, and training facilities used for timed and reported workouts must comply with the provisions of this article.

(b) Notwithstanding the above, these regulations shall not apply to training tracks not used for timed and reported workouts or to any track maintained by a licensed racing association or fair that is not used for conducting licensed races.

(c) The provisions of this article shall not require the removal or replacement of, or substantial modification to, any rail or other object installed prior to May 24, 1994, if in the judgment of the Board there is a showing that compliance with the safety standards can be attained by alternate methods, technologies, programs, practices, means, devices or processes proposed and implemented that will provide equal or superior safety for racing participants.

(d) A request for an approval, pursuant to subsection (c), may be submitted in writing, not less than 90 calendar days prior to the start of the race meeting.

(1) The Board will act upon a request not less than 60 days prior to the start of the race meeting. The Board shall prescribe in writing, the terms under which the approval is granted and said approval shall remain in effect only as long as there is compliance with the terms.

(2) Any approval shall be conditional unless a signed and completed Hold Harmless Agreement, CHRB-120 (new 2/96), which is hereby incorporated by reference, is submitted within five days after the approval is granted.

(3) No approval shall be granted unless a policy for liability insurance is obtained in an amount not less than $3 million dollars that names the Board as an additional insured; such policy shall remain in effect for the duration of the race meeting. A copy of the certificate of liability insurance shall be submitted with the CHRB-17, Application for License to Conduct a Race Meeting or CHRB-18, Application for License to Conduct a Fair Race Meeting.

(4) The Board may revoke an approval at any time if, in their judgment, there is failure to comply with the terms of the approval.

(5) If the Board disapproves a request for an approval the requestor must comply with the provisions of this article.

(e) Unless the Board determines an emergency situation exists, upon receipt of written notification of revocation of an approval the racing association, fair, or training facility shall have not more than 30 calendar days to achieve compliance with the provisions of this article.

(f) Any association or fair that does not comply with the provisions of this article will not be granted a racing license pursuant to Section 19481.5 of the B&P Code.

(g) Forty-five calendar days prior to the start of a racing association meet, or 30 days prior to the start of a fair meet or annually in the case of a training facility, the track shall be inspected for compliance with the provisions of this article. The Board shall designate a steward to be responsible for enforcing compliance with safety standards as required by this article and the Board-designated steward or other official shall perform the compliance inspection and report the findings to the Board.

NOTE

Authority cited: Sections 19480, 19481 and 19481.5, Business and Professions Code. Reference: Sections 19480, 19481 and 19481.5, Business and Professions Code.

HISTORY

1. New article 3.5 and section filed 5-24-94; operative 5-24-94 (Register 94, No. 21).

2. Amendment of subsections (c)-(d)(1), new subsections (d)(2)-(d)(4) and subsection renumbering, and amendment of newly designated subsections (d)(5)-(d)(6) and subsections (e) and (f) filed 6-20-96; operative 7-3-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 25).

3. Change without regulatory effect amending subsections (d)(4), (f) and (g) filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

4. Change without regulatory effect amending subsection (d)(4) filed 6-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 25).

5. Change without regulatory effect amending section filed 10-14-2004 pursuant to section 100, title 1, California Code of Regulations (Register 2004, No. 42).

§1472. Rail Construction and Track Specifications.

Note • History

(a) All racing surfaces, including turf courses, shall have an inner rail, and an outer rail or shadow fence designed to meet the same impact standards as a permanent rail.

(1) Racing surfaces used for standardbred racing shall have an inner rail or pylons, and an outer rail or shadow fence designed to meet the same impact standards as a permanent rail.

(2) If pylons are used, no obstacle shall be placed within an area extending 25 feet from the inner boundary of the racing surface.

(b) All rail posts, except portable, auxiliary, or chute rail posts, must be set in concrete at least 6 inches below the racetrack surface and shall be at least 24 inches deep. Permanent rails shall be designed not to collapse or break away when a horse that is running parallel to the rail bumps, lugs or falls into the rail or posts during normal training or racing. Notwithstanding the above, no permanent or portable turf post or rail shall be constructed of fiberglass, poly vinyl chloride (P.V.C.), or wood, and hedges shall not be used as a post or rail.

(c) The height of all outside and inside rails shall be between 38 and 42 inches from the top of the racing surface to the top of the rail.

(d) All rails, and rail post covers shall be maintained with a smooth surface, and without jagged, sharp or irregular edges. All permanent rails and rail post covers shall be firmly secured by means of bolting, welding or other equivalent method.

(e) All permanent inside rail posts shall be of a gooseneck-type design utilizing at least a 24-inch overhang with a continuous smooth elevated cover extending over the posts. Portable rails and posts shall be designed not to collapse or break away when a horse that is running parallel to the rail bumps, lugs or falls into the rail or posts during normal training or racing conditions. This subsection shall not apply to chute extension rails.

(f) All turf course paths, leading from the inside rail of the main course to the turf course, shall be consistent in appearance with surrounding area. No rails shall be installed on turf course paths that lead from the main course to the turf course.

(g) No objects shall be placed within 10 feet from the face of the inside rail. Marker poles that are placed within 10 feet from the face of the inner rail shall be flexible enough to collapse upon impact of a horse and/or rider or driver.

(h) Any concrete drainage ditch within 10 feet of the face of the inside rail must be covered with a material that will support the weight of the horse and rider or driver and at the same time (if needed), and have padding to cushion the impact of the horse and rider or driver.

(i) All rail gate openings shall be designed not to collapse or break away when a horse that is running parallel to the rail bumps, lugs or falls into the rail or post during normal training or racing. Gates shall have a uniform appearance with the contiguous rail, and all gates on inner rails shall be closed and secured during racing and training.

(j) Separate ingress and egress gates or gaps shall be provided for horses to enter and leave the main racetrack. Each ingress and egress gate or gap shall be a minimum of 20 feet wide. Ingress and egress gates and gaps shall be separated by at least 20 feet. All gaps may be available for ingress for two minutes immediately following renovation breaks. The starting gates used for breaking horses during morning training hours shall be placed in a location that will not result in interference or distraction of gate horses from other horses entering or leaving the track during training hours.

(k) All racetrack lighting systems utilized for night racing shall have an emergency back-up system or a preferred electrical current provided by a public utility and incandescent lighting. Any such lighting systems must provide horses, riders, and drivers sufficient lighting to safely leave the track in case of a main power failure.

(l) All licensed racing associations or racing fairs conducting live racing and/or training and other training facilities used for timed and reported workouts shall have:

(1) Permanent track surface elevation grade marks installed at least at every 1/32 mile intervals to provide for a means of maintaining a continuous uniform grade of the track cushion and base (if granite). If the track is designed with the front stretch or backstretch at a different elevation than the other, a continuous grade from one elevation to the other shall be maintained.

(2) A minimum of 2 percent cross slope in the straight-aways and a minimum of 4 percent cross slope in the center of the turns.

(3) Synthetic and polymer or wax-coated sand track surfaces shall be exempt from the requirements of Subparagraph (l)(1)(2) of this rule.

NOTE

Authority cited: Sections 19420, 19440 and 19481, Business and Professions Code. Reference: Section 19481, Business and Professions Code.

HISTORY

1. New section filed 5-24-94; operative 5-24-94 except as shown in text (Register 94, No. 21).

2. New subsections (a)(1)-(2) filed 1-11-95; operative 2-10-95 (Register 95, No. 2).

3. Amendment of subsections (b), (d)-(f), (h)-(i) and new subsections (l)-(l)(2) filed 5-2-95; operative 6-1-95, except subsections 1472(h)-(i) which are operative 7-1-95 (Register 95, No. 18).

4. Change without regulatory effect amending subsections (c), (d), (f), (g), (h), (i), (j) and (k) filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

5. Amendment of section and Note filed 6-20-2006; operative 7-20-2006 (Register 2006, No. 25).

§1473. Renovation of Dirt Racetrack.

Note • History

(a) Subject to limitations created by periods of inclement weather, all licensed racing facilities and training facilities used for timed and reported workouts which stable between 300 and 1100 racehorses in training shall provide at least one morning break for racetrack surface renovation. Racing facilities which stable more than 1100 racehorses in training shall provide at least two morning breaks to renovate the racetrack surface. For those racing facilities and training facilities with less than 300 racehorses, surface renovation shall be determined by the track maintenance supervisor and designated horsemen's representative stabled at the location.

(b) For all licensed racing facilities and training facilities used for timed and reported workouts where standardbred horses are stabled, racetrack surface renovation shall be determined by the track maintenance supervisor and designated horsemen's representative stabled at the location.

(c) Morning break renovation shall include, but is not limited to, watering, harrowing and/or floating, the racetrack surface at least two-thirds (2/3) of the width of the track from the inside rail to the outside rail of the main track.

(d) Renovation between races shall include, but is not limited to, watering, harrowing and/or floating the racetrack surface at least the length of the starting gate from the inside rail to the outside of the main track for at least the distance of the next race.

NOTE

Authority cited: Sections 19420, 19440 and 19481, Business and Professions Code. Reference: Sections 19420, 19440 and 19481, Business and Professions Code.

HISTORY

1. New section filed 5-24-94; operative 7-23-94 (Register 94, No. 21).

2. Amendment of section heading and subsections (a)-(c) and new subsection (d) filed 5-2-95; operative 6-1-95 (Register 95, No. 18).

3. Change without regulatory effect amending subsection (c) filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

§1474. Maintenance of Dirt Racetrack.

Note • History

(a) All licensed racing associations or fairs conducting live racing and/or training, and other training facilities used for timed and reported workouts, shall develop and implement a written policy regarding their track safety maintenance program to be submitted with their license application for Board review 90 days prior to the commencement of the race meeting. The written policy shall provide for:

(1) regular and continuous maintenance of the racing surface under Rule 1473 of this division;

(2) a schedule for maintenance of equipment, track grade, elevations, racetrack renovation, and watering;

(3) analysis of the composition of the racetrack soil sampled every twenty 20 feet and every sixteenth of a mile, and

(4) the name of the person responsible for supervision of the maintenance of the racetrack safety standards.

NOTE

Authority cited: Sections 19420, 19440 and 19481, Business and Professions Code. Reference: Sections 19481, 19481.5 and 19488, Business and Professions Code.

HISTORY

1. New section filed 5-24-94; operative 7-23-94 (Register 94, No. 21).

2. Amendment of section heading and subsection (a)(2) and repealer of subsection (a)(5) filed 5-2-95; operative 6-1-95 (Register 95, No. 18).

3. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1475. Golf Course In The Infield of The Racetrack.

Note • History

If golfing activities are conducted in the infield of the racetrack operated by a licensed racing association, fair or training facility used for timed and reported workouts, all racing surfaces must be inspected prior to racing or training and the licensed racing association, fair, or training facility used for timed and reported workouts shall ensure that all golf balls are removed from all racing surfaces. No licensed racing association, fair, or training facility used for timed and reported workouts shall permit any golfing activity in the infield of the racetrack during the hours of training or racing unless the golf course meets the following criteria:

(a) Access to the course is by way of a tunnel or other means where golfers do not physically cross the track.

(b) There is a minimum of 135 feet between the inside track rail and the golf course.

NOTE

Authority cited: Sections 19420, 19440 and 19481, Business and Professions Code. Reference: Sections 19420, 19440 and 19481, Business and Professions Code.

HISTORY

1. New section filed 5-24-94; operative 5-24-94 (Register 94, No. 21).

Article 4. Occupational Licenses

§1480. License Required. [Repealed]

History

HISTORY

1. Repealer filed 9-15-82; effective thirtieth day thereafter (Register 82, No. 38).

§1481. Occupational Licenses and Fees.

Note • History

No person required to be licensed shall participate or attempt to participate in a race meeting without holding a valid license authorizing that participation.

(a) A person acting in any capacity within the restricted area of an inclosure, simulcast facility or auxiliary stabling area shall procure the appropriate license(s) and pay the fee required.

(b) A person acting in any of the following capacities shall procure the appropriate license(s) and pay the fee required:

(1) Horse Owner by Open Claim $250

(2) Officer, Director, Partner, or any individual or person

who holds 5% or more of the outstanding shares of a

racing association, simulcast service supplier or

totalizator company $200

(3) Horse Owner $150

(4) Trainer, Assistant Trainer, Driver, Jockey,

Apprentice Jockey, Jockey Agent $150

(5) Veterinarian $150

(6) Steward, Associate Steward, Steward (Veterinary Service),

Simulcast Facility Supervisor, Assistant Simulcast

Facility Supervisor, Racing Official, Administrative

or Managerial personnel including General Manager

of a racing association, simulcast organization or an

intrastate guest association, who exercise control over

other licensees, horse racing, pari-mutuel wagering or

simulcast operations, or whose duties routinely require

access to restricted areas of the inclosure $150

(7) Bloodstock Agent $150

(8) Valet, Jockey Room or Drivers' Room Attendant or

Custodian or Service Person, Colors Attendant,

Paddock Attendant $75

(9) Assistant to a Racing Official or Official, Assistant General

Manager of a racing association, simulcast organization

or an intrastate guest association, Assistant Starter,

Assistant to the Veterinarian, Assistant Manager,

Announcer, Paymaster of Purses, Superintendent,

Starting Gate Driver, Flagman, Marshal, Stewards' Aide $75

(10) Exercise Rider, Pony Rider, Outrider $75

(11) Horseshoer, Stable Agent, Vendor or Vendor's

Employee when duties require access to the restricted

area, Stable Foreman $75

(12) Pari-mutuel Employee, Totalizator Technician, Video

Operator, Photofinish Operator $75

(13) Security Officer, Security Guard, Stable Gateman,

Fire Guard, Security Investigator $75

(14) Clerical Employee or Uncategorized Employee of a

racing association, intrastate guest association, simulcast

organization, simulcast service supplier, totalizator

company, horsemen's organization or concessionaire

when employed in a restricted area $75

(c) A person acting in the capacity of Backstretch Event Personnel, Groom, Provisional Exercise Rider, Stable Employee or Stable Assistant shall procure the appropriate annual license. The fee for an original license is $35, and the annual renewal of license is $20.

(d) A person acting in the capacity of Authorized Agent shall register an authorized agent agreement and registration of authorized agent and pay a fee of $25 for each registration.

(e) A person or persons electing to conduct racing operations by use of a Stable Name, or stable name group, shall register the Stable Name, or stable name group, and pay a fee of $300.

(f) A person or persons conducting racing operations as a syndicate, an entity running under a stable name group or as a partnership having more than ten general partners or having one or more limited partners shall register the syndicate, entity running under a stable name group or partnership as a multiple ownership and pay a fee of $300.

(g) A person participating in any capacity required to be licensed under this rule who participates or attempts to participate at a mule racing meeting shall procure an annual Mule Racing Participant license and pay an annual fee of $25. A license for participating in a mule racing meeting is valid only at mule racing meetings and any license otherwise valid for horse racing meetings is not valid for mule racing meetings.

(h) A person whose license-identification card is lost, destroyed or mutilated shall procure a replacement license-identification card and pay a fee of $15.

(i) A person who elects to participate in the Association of Racing Commissioners International (ARCI) Licensing Reciprocity Program shall pay the associated costs charged by the ARCI and the Federal Bureau of Investigation.

(j) The date the payment of the required fee is received and recorded by the Board is the effective date of issuance of a continuous occupational license for the capacity in which licensed. The fees required herein are for the entire period for which the issued license is to be valid.

NOTE

Authority cited: Sections 19440, 19510, 19520 and 19704, Business and Professions Code. Reference: Sections 19510, 19520 and 19704, Business and Professions Code.

HISTORY

1. Repealer and new section filed 12-31-82; designated effective 1-1-83 pursuant to Government Code section 11346.2(d) (Register 83, No. 1).

2. Editorial correction of subsection (g) (Register 83, No. 8).

3. Amendment increasing fees filed 12-30-88; operative 1-1-89 (Register 89, No. 2).

4. Amendment of subsection (f) changing “three” to “five” and adding “as a multiple ownership” filed 2-14-89; operative 2-14-89 (Register 89, No. 8).

5. Amendment of subsection (f) changing “five” to “ten” filed 7-6-89; operative 8-5-89 (Register 89, No. 27).

6. Amendment of subsection (i) filed 12-13-90; operative 1-12-91 (Register 91, No. 4).

7. Amendment of subsections (b)(6), (b)(9) and Note, new subsection (i) and subsection relettering filed 8-5-93; operative 9-7-93 (Register 93, No. 32).

8. Amendment of first paragraph and subsections (a), (b)(2), (b)(6), (b)(9), (b)(11), (b)(12), (b)(14) and (j) filed 1-5-94; operative 2-4-94 (Register 94, No. 1).

9. Amendment of subsections (b)(6), (b)(9) and (b)(14) filed 9-12-94; operative 10-12-94 (Register 94, No. 37).

10. Amendment of subsections (b)(9) and (i) filed 5-31-95; operative 6-30-95 (Register 95, No. 22).

11. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

12. Amendment of subsection (c) filed 5-30-2007; operative 6-29-2007 (Register 2007, No. 22).

13. Amendment of subsections (e)-(f) and amendment of Note filed 7-10-2008; operative 8-9-2008 (Register 2008, No. 28).

14. Amendment of subsection (c) filed 3-5-2009; operative 4-4-2009 (Register 2009, No. 10).

§1482. Employment of Unlicensed Person.

Note • History

No association, owner, trainer or any other licensee acting as an employer within the inclosure at an authorized meeting, shall employ within the inclosure or within any auxiliary stable area, any person required to be licensed by the Board, until such association, owner, trainer or other employer determines that such person required to be licensed has been issued a valid license by the Board or has made application for such license. No association shall permit any owner, trainer, jockey or driver to own, train, ride or drive on its premises during a recognized meeting unless such owner, trainer, jockey or driver has received a license to do so from the Board. The association or prospective employer may demand for inspection the license of any person participating or attempting to participate at its meeting and the association may demand for inspection the documents relating to any horse on its grounds.

NOTE

Authority cited: Sections 19440 and 19460, Business and Professions Code. Reference: Section 19510, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1483. Application for License.

Note • History

(a) An applicant for a license shall apply in writing on the application forms furnished by the Board. Every applicant for an original license shall provide two (2) or more complete sets of fingerprints on regulation forms. Every license identification card issued by the Board shall include a current Board photograph of the licensed person.

(b) The fingerprint requirement will be waived for an owner's license, if the applicant holds an owner's license in good standing from a racing jurisdiction that requires fingerprints as part of their license application, provided a Fingerprint Affidavit, CHRB-118 (New 1/97), hereby incorporated by reference, is completed. CHRB-118 is available at all CHRB offices.

NOTE

Authority cited: Sections 19460 and 19510, Business and Professions Code. Reference: Sections 19460, 19510, and 19520, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

2. Amendment filed 3-26-91; operative 4-25-91 (Register 91, No. 16).

3. Amendment of section and Note filed 1-5-93; operative 2-4-93 (Register 93, No. 2).

4. Amendment filed 5-1-97; operative 5-31-97 (Register 97, No. 18).

§1484. Evidence of Unfitness for License.

Note • History

If any applicant for a license or any licensee is under suspension, set down, ruled off, excluded from the inclosure, or otherwise barred from any racing occupation or activity requiring a license, it is prima facie evidence that he or she is unfit to be granted a license or unfit to hold a license or participate in racing in this State as a licensee during the term of any suspension or exclusion from racing imposed by any competent racing jurisdiction.

NOTE

Authority cited: Section 19440, Business and Professions Code. Reference: Sections 19460, 19461 and 19510, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1485. License Subject to Conditions and Agreements.

Note • History

(a) Every license is subject to the conditions and agreements contained in the application and to the Board rules in this Division.

(b) Every license issued by the Board remains the property of the Board.

(c) Possession of a license does not confer any right upon the holder thereof to employment at or participation in a race meeting or to be within the inclosure.

(d) The Board may place conditions on any license it issues. All licensees shall strictly comply with any condition imposed by the Board.

NOTE

Authority cited: Sections 19420, 19440 and 19460, Business and Professions Code. Reference: Sections 19460, 19510 and 19520, Business and Professions Code.

HISTORY

1. New subsection (d) filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

2. Amendment of section and Note filed 1-6-94; operative 2-7-94 (Register 94, No. 1).

§1486. Term of License.

Note • History

(a) Every occupational license, original or renewal, granted by the Board under this Article, other than a license as a groom, provisional exercise rider, stable employee, stable assistant, backstretch event personnel and mule racing participant shall expire in its third year on the last day of the birth month of the license.

(b) Every original occupational license as groom, provisional exercise rider, stable employee, stable assistant, backstretch event personnel and mule racing participant shall expire on the last day of the calendar year in which it is issued. Such original license shall be automatically extended to expire on the last day of the birth month of the licensee. Renewal licenses shall expire on the last day of the birth month of the licensee on an annual basis.

NOTE

Authority cited: Sections 19440 and 19704, Business and Professions Code. Reference: Sections 19510, 19520, 19521 and 19704, Business and Professions Code.

HISTORY

1. Amendment of section filed 8-7-91; operative 9-6-91 (Register 91, No. 50).

2. Change without regulatory effect repealing subsection (a) designator and subsections (b) and (c) and amending remaining text filed 4-1-96 pursuant to section 100, title 1, California Code of Regulations; operative 5-1-96 (Register 96, No. 14).

3. Amendment of section and Note filed 10-24-2006; operative 10-24-2006 pursuant to Government Code section 11343.4 (Register 2006, No. 43).

4. Amendment filed 10-24-2007; operative 11-23-2007 (Register 2007, No. 43).

5. Amendment filed 3-5-2009; operative 4-4-2009 (Register 2009, No. 10).

§1486.5. Term of Registration.

Note • History

Every Registration, such as a Stable name, Syndication, Partnership, Multiple Ownership, Authorized Agent or Trust granted by the Board under this article shall be valid for three years and shall expire on the 31st day of December of the expiration year.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Section 19440, Business and Professions Code.

HISTORY

1. New section filed 12-10-90; operative 1-9-91 (Register 91, No. 4).

§1487. Address of Licensees.

Each licensee, applicant for license, or registrant of the Board shall file with the Board his permanent and his current mailing address and shall report in writing to the Board any and all changes to addresses, giving both his old and his new address.

§1488. Temporary Occupational License.

Note • History

(a) Pending completion of an investigation of the qualifications and fitness of an applicant for license, any initial occupational license granted by the Board is temporary, shall carry no presumption of the qualifications or fitness of the applicant, and may be summarily terminated by the Board. Unless terminated earlier, a temporary license shall be made permanent upon completion of an investigation by the Board of all facts relative to the applicant's qualifications, and a determination that the applicant is fit to hold a license.

(b) A temporary license shall be terminated if the applicant's fingerprints, completed application(s), and such other documentation as may be required for license are not submitted to the Board within 45 calendar days following the date of issuance of the license. In the event of termination of a temporary license, the occupational license fee shall be forfeited. Termination of temporary license is without prejudice to the applicant unless the Board finds that the applicant has made a material misrepresentation or false statement to the Board to obtain a license privilege.

(c) No more than one temporary license shall be issued to an applicant without that applicant first submitting to the Board such fingerprints and completed applications as required under this article.

NOTE

Authority cited: Sections 19440, 19460, 19461, and 19520, Business and Professions Code. Reference: Sections 19460 and 19510, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

2. Amendment filed 1-8-93; operative 2-8-93 (Register 93, No. 2).

§1489. Grounds for Denial or Refusal of License.

Note • History

The Board, in addition to any other valid reason, may refuse to issue a license or deny a license to any person:

(a) Who has been convicted of a crime punishable by imprisonment in a California state prison or a federal prison, or who has been convicted of a crime involving moral turpitude.

(b) Who has been convicted of a crime in another jurisdiction which if committed in this state would be a felony.

(c) Who has made any material misrepresentation or false statement to the Board or its agents in his or her application for license or otherwise, or who fails to answer any material question on an application for a license.

(d) Who is unqualified to engage in the activities for which a license is required.

(e) Who fails to disclose the true ownership or interest in any or all horses as required by any application.

(f) Who is subject to exclusion or ejection from the racing inclosure or is within the classes of persons prohibited from participating in pari-mutuel wagering.

(g) Who has committed an act involving moral turpitude, or intemperate acts which have exposed others to danger, or acts in connection with horse racing and/or a legalized gaming business which were fraudulent or in violation of a trust or duty.

(h) Who has unlawfully engaged in or who has been convicted of possession, use or sale of any narcotic, dangerous drug, or marijuana.

(i) Who is not permitted by any law to engage in the occupation for which the license is sought.

(j) Who has violated, or who aids, abets or conspires with any person to violate any provision of the rules or the Horse Racing Law.

NOTE

Authority cited: Section 19440, Business and Professions Code. Reference: Sections 19460, 19510 and 19572, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

2. Amendment of subsection (a), new subsection (b) and relettering, and amendment of newly designated subsection (g) filed 1-6-93; operative 2-5-93 (Register 93, No. 2).

3. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1489.1. Suspension of License Due to Delinquent Tax Debt.

Note • History

(a) No licensee, applicant for license, renewal of license or registration, or any person required to obtain an occupational license from the Board may be issued a permanent license, or reactivate, reinstate or renew a permanent license if his or her name appears on the certified list provided by the California State Board of Equalization (BOE) or the Franchise Tax Board (FTB).

(b) If the name of a licensee or applicant for license appears on the BOE or FTB certified list the Board shall immediately provide the licensee or applicant for license with preliminary notification that:

(1) The license shall be suspended, or

(2) The issuance or renewal of the license shall be withheld.

The preliminary notification shall be made by certified mail to the licensee's or applicant's last given place of residence as provided under Business and Professions Code section 494.5(e)(2).

(c) In accordance with the provisions of Business and Professions Code section 494.5(f)(1), a licensee or applicant for license whose name appears on the certified list shall, 90 days after the Board issues a preliminary notice of intent to suspend or withhold issuance or renewal of license, be subject to suspension of license, or denial of a permanent license, unless and until the BOE or the FTB provides the Board with notice of the licensee's or applicant's compliance.

(1) A license suspended due to delinquent tax debt shall be reinstated within five business days following receipt by the Board of a notice of compliance from the BOE or the FTB.

(2) A temporary license issued to an applicant whose name appears on the certified list shall be valid for a period of 90 days and thereafter shall be terminated unless the Board has received a notice of compliance from the BOE or the FTB. In the event of termination of a temporary license, the occupational license fee shall be forfeited.

(d) For the purposes of this regulation “certified list” means the list provided by the BOE or the FTB of persons whose names are on the lists of the 500 largest tax delinquencies as provided under section 7063 or 19195 of the Revenue and Taxation Code.

NOTE

Authority cited: Sections 494.5, 19440, 19510, 19520 and 19704, Business and Professions Code. Reference: Sections 494.5, 19510, 19520 and 19704, Business and Professions Code.

HISTORY

1. New section filed 8-30-2012; operative 9-29-2012 (Register 2012, No. 35).

§1490. Restrictions, Conditions or Endorsements. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1491. Examinations.

The Board may require the applicant for any license to demonstrate his knowledge, qualifications and proficiency for the license applied for by such examination as the Board may direct.

§1492. Recommendation of Stewards. [Repealed]

History

HISTORY

1. Repealer filed 9-15-82; effective thirtieth day thereafter (Register 82, No. 38).

§1493. Refusal Without Prejudice.

Note • History

A refusal to issue a license (as distinguished from a denial of a license) to an applicant by the Board at any race meeting is without prejudice, and the applicant who has been refused for reasons other than license certification testing may reapply for a license at any subsequent or other race meeting. In all cases an applicant may appeal such refusal to the Board for hearing upon his or her qualifications and fitness for the license.

NOTE

Authority cited: Sections 19440, 19460 and 19520, Business and Professions Code. Reference: Sections 19440, 19460 and 19520, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 11-17-93; operative 12-17-93 (Register 93, No. 47).

§1494. Effect of Denial or Revocation of License. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1495. Re-Hearing After Denial of License.

Note • History

Any person who has had his license denied may petition the Board to reopen the case and reconsider its decision upon a sufficient showing that there is now available evidence which could not, with the exercise of reasonable diligence, be produced at the hearing. Any such petition must be filed with the Board no later than 30 days after the effective date of the Board's decision in the matter. Any person who has been denied a license by the Board may not file a similar application for license until one year from the effective date of the decision to deny the license.

NOTE

Authority cited: Sections 19440 and 19460, Business and Professions Code. Reference: Section 19510, Business and Professions Code; and Sections 11521 and 11522, Government Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1496. Financial Responsibility of Applicants.

Applicants for license as horse owner or trainer must submit satisfactory evidence of their financial stability and their ability to care for and maintain the horses owned and/or trained by them when such evidence is requested by the Board.

§1497. Confidentiality of Applications.

Note • History

(a) Except as set forth in Subsection (b) of this rule, all information contained on an application for license filed with the Board and all subsidiary information required by the Board in conjunction with such application, may be disclosed to the public.

(b) The following information when contained on an application for license, or when required by the Board as subsidiary information in conjunction with such application, is confidential and shall not be disclosed to the public except in compliance with an order of the Board or any legal order of any court or other agency having jurisdiction of the enforcement of any state or federal laws.

(1) Personal addresses, personal residences and personal telephone numbers.

(2) Personal identification numbers such as social security numbers, federal identification numbers, driver's license numbers, and bank account numbers.

(3) Statements of personal worth and personal financial data used to establish the applicant's personal qualifications for license.

(4) Information regarding minor children.

NOTE

Authority cited: Sections 19440 and 19460, Business and Professions Code. Reference: Sections 19435, 19440, 19460 and 19466, Business and Professions Code.

HISTORY

1. Amendment of section heading and section and new Note filed 8-5-93; operative 9-7-93 (Register 93, No. 32).

§1498. Physical Examination.

Note • History

(a) All jockeys, apprentice jockeys, and drivers must pass a physical examination at least once a year before the commencement of the first race meeting of the year in which such jockey, apprentice jockey or driver intends to participate, or at such other time as the Board may direct. Such examination will be given by a doctor designated or approved by the Board, and the examination shall include a visual acuity examination and a hearing examination.

(b) In addition to subsection (a) above, the examination shall include a drug test to screen for such substances as described in subsections (b)(2)(A) through (b)(2)(E) of Rule 1500.1 of this article.

(1) A positive finding for any of the drugs or classes of drugs described in subsections (b)(2)(A) through (b)(2)(E) of Rule 1500.1 of this article shall result in the jockey/driver not being cleared to ride/drive until he or she has successfully passed such examination.

(c) The Board or the stewards may require that any jockey, apprentice jockey or driver be re-examined at any time, and the Board or the stewards may refuse to allow any jockey, apprentice jockey or driver to ride or drive until he or she has successfully passed such examination.

NOTE

Authority cited: Sections 19420, 19440 and 19520, Business and Professions Code. Reference: Sections 19440, 19520 and 19521, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 9-7-2011; operative 10-7-2011 (Register 2011, No. 36).

§1499. Qualifications for Jockey.

No person under 16 years of age shall be granted a jockey's license nor a license as apprentice jockey. No person whose riding weight at the time of application exceeds 125 pounds shall be licensed as a jockey or apprentice jockey. No person who has never ridden in a race at a recognized meeting shall be granted a license as jockey or apprentice jockey; provided, however, that upon the recommendation of the stewards the Board may issue a temporary license to or otherwise grant permission to such person for the purpose of riding in not more than four races to establish the qualifications and ability of such person for the license.

§1500. Apprentice Jockey.

Note • History

(a) An apprentice jockey is a race rider who has ridden less than 40 winners or less than two years since first having been licensed in any racing jurisdiction, and who otherwise meets the license qualifications of a jockey.

(b) The apprenticeship of an apprentice jockey shall automatically terminate one year from the date of his or her fifth winning ride, or on the date of his or her (40th) winning ride, whichever comes later. No apprenticeship shall extend for more than two years from the date of the fifth winning mount, except for good cause the Board may extend the termination date of an apprenticeship or amend the conditions under which the apprenticeship is granted.

(c) Any combination of Thoroughbred, Appaloosa, Arabian or Paint races at authorized race meetings in the United States, Canada or Mexico which are reported in the Daily Racing Form or other recognized racing publications shall be considered in determining eligibility for license as an apprentice jockey; provided, however, that any person who has ridden as a licensed jockey in any racing jurisdiction shall have the burden to establish that the granting of an apprentice jockey license to him or her is in the best interests of the rider and of Thoroughbred, Appaloosa, Arabian or Paint racing in this State. Nothing herein shall prohibit an apprentice jockey contract between the apprentice and a qualified employer.

NOTE

Authority cited: Sections 19440 and 19460, Business and Professions Code. Reference: Sections 19440 and 19460, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 3-18-97; operative 4-17-97 (Register 97, No. 12).

§1500.1. Random Drug Testing.

Note • History

(a) To ensure the safety and integrity of horse racing, jockeys, apprentice jockeys and drivers are subject to random drug testing, as well as testing based upon reasonable suspicion, as provided in this Division. Failure to submit to or to complete a drug test at the time, location, and manner directed by the Board or its representatives shall constitute a refusal to be tested. A jockey, apprentice jockey or driver who fails to submit to or to complete a drug test shall immediately be prohibited from riding or driving in any race at a facility under the jurisdiction of the Board until a negative test result is achieved.

(1) Random drug testing shall be conducted at the direction of the Executive Director on an unannounced basis before or after the jockey's or driver's performance of duties. The names of all jockeys, apprentice jockeys or drivers who appear on the official program the day random drug testing is conducted shall be placed in a secured container which shall be in the custody of the supervising investigator. Prior to the first race of the program, the supervising investigator shall draw nine names. If a name is selected more than once during a race meeting, it shall be eliminated and another selection made.

(2) Representatives of the Jockey's Guild or the California Harness Horsemen's Association may attend and witness the random selection of names.

(3) For race meetings with duration of up to five months, random drug testing shall occur at least once during the course of the meeting. For the purposes of this regulation, the Northern California fair circuit shall be considered as one race meeting.

(4) For race meetings with duration of six or more months, random drug testing shall occur at least twice during the course of the meeting.

(b) Each urine specimen received from a jockey, apprentice jockey or driver shall be divided into two separate parts. One portion shall be designated as the official jockey/driver test sample and shall be tested by a Board approved official laboratory. The remaining portion of the specimen shall be known as the jockey/driver split sample and shall be available for testing at a Board approved independent laboratory upon the request of the individual who provided the specimen. The Board makes no guarantees as to the amount of the specimen that will be available for the jockey/driver split sample. All specimens taken by representatives of the Board are under the jurisdiction of and shall remain the property of the Board at all times.

(1) For the purposes of this regulation “Board approved official laboratory” and “Board approved independent laboratory” means a California laboratory certified by the United States Department of Health and Human Services under the National Laboratory Certification Program as meeting the minimum standards to engage in urine drug testing for federal agencies. A list of certified laboratories shall be available at the CHRB headquarters office.

(2) Each urine specimen shall be tested for the following prohibited drugs or classes of drugs:

(A) Marijuana metabolites.

(B) Cocaine metabolites.

(D) Opiate metabolites.

(E) Phencyclidine (PCP).

(c) The Board approved official laboratory shall immediately and confidentially report to the Executive Director or his designee any positive finding for any of the drugs or classes of drugs described in subsection (b)(2)(A) through (b)(2)(E) of this regulation. The Board approved official laboratory shall also transmit a confidential written report of the finding to the Executive Director within five working days after the notification is made.

(d) When the Executive Director or his designee is notified of a positive finding by the Board approved official laboratory, the Executive Director or his designee shall notify a supervising investigator. The supervising investigator shall confidentially notify the jockey, apprentice jockey or driver who shall:

(1) Immediately be prohibited from riding or driving in any race at a facility under the jurisdiction of the Board, and

(2) Shall have 72 hours from the date he or she is notified to request that the jockey/driver split sample of the official jockey/driver test sample that was found to contain a prohibited drug or class of drug, be tested by an Board approved independent laboratory.

(e) If the jockey, apprentice jockey or driver wishes to have the jockey/driver split sample tested, he or she shall comply with the following procedures:

(1) The request shall be made on the form CHRB-217 (New 3/11) Request to Release Jockey/Driver Split Sample, which is hereby incorporated by reference. Form CHRB-217 shall be made available at all CHRB offices, and at the CHRB website.

(2) The jockey, apprentice jockey or driver requesting to have the jockey/driver split sample tested shall be responsible for all charges and costs incurred in transporting and testing the jockey/driver split sample. By signing CHRB-217 the jockey, apprentice jockey or driver certifies he or she has made arrangements for payment to the designated independent Board approved laboratory for laboratory testing services.

(3) Verification of payment for costs incurred in transporting and testing the jockey/driver split sample must be received by the CHRB within five working days from the CHRB receipt of CHRB-217. If such verification of payment is not received, the jockey/driver split sample will not be released or shipped to the designated Board approved independent laboratory and the jockey, apprentice jockey or driver will have relinquished his/her right to have the split sample tested. If a complaint issues, the only test results that will be considered will be the results from the Board approved official laboratory.

(f) Upon receipt of a valid request on CHRB-217, CHRB-217A (New 3/11) Authorization to Release Jockey/driver Split Sample Evidence, which is hereby incorporated by reference, shall be completed and the Board shall ensure that the jockey/driver split sample is sent to the designated Board approved independent laboratory for testing.

(1) If the findings by the Board approved independent laboratory fail to confirm the findings of a prohibited drug or class of drug as reported by the Board approved official laboratory, it shall be presumed that a prohibited drug or class of drug was not present in the official jockey/driver test sample.

(g) A jockey, apprentice jockey or driver who fails to request the testing of the jockey/driver split sample in accordance with the procedures specified in this rule shall be deemed to have waived his or her right to have the split sample tested.

(h) Unless or until the Board files an official complaint or accusation, results of the official jockey/driver test sample and the jockey/driver split sample shall be, and shall remain confidential. No test results may be released to any person or organization unless such release is explicitly required under this regulation. Only the Executive Director or the Executive Director's designee, the Board, and the jockey, apprentice jockey or driver shall receive the results.

(i) The Board may take into consideration the possession of a valid and current Medical Marijuana Program Identification Card issued in accordance with the Medical Marijuana Program of the California Department of Public Health in determining whether or not to file an official complaint or accusation against a jockey, apprentice jockey or driver who tests positive for marijuana metabolites.

(j) For the purposes of this regulation, random drug testing shall be accomplished by the taking of urine specimens; however, the Board retains the right to direct a jockey, apprentice jockey or driver to submit to a drug test by methods including, but not limited to, blood, hair follicle or skin.

NOTE

Authority cited: Sections 19420, 19440 and 19520, Business and Professions Code. Reference: Sections 19440, 19520 and 19521, Business and Professions Code.

HISTORY

1. New section filed 9-7-2011; operative 10-7-2011 (Register 2011, No. 36).

§1501. Worker's Compensation Insurance Required.

History

No person may be licensed as a trainer, owner, trainer-driver, or in any other capacity in which such person acts as the employer of any other licensee at any authorized race meeting, unless his liability for worker's compensation has been secured in accordance with the Labor Code of the State of California and until evidence of such security for liability is provided the Board. Should any such required security for liability for worker's compensation be cancelled or terminated, any license held by such person shall be automatically suspended and shall be grounds for revocation of the license. The trainer of a public stable shall provide evidence that the policy of insurance securing his liability for worker's compensation has been endorsed or amended to include, as an additional insured, each person for whom he trains horses to the extent that such person is exposed to liability as the employer of a jockey, unless such person has procured coverage for such exposure and has furnished evidence of such coverage to the Board.

HISTORY

1. Amendment filed 10-6-78; effective thirtieth day thereafter (Register 78, No. 40).

§1502. Program Trainer Prohibited.

No licensed trainer, for the purpose of avoiding the requirements for workmen's compensation insurance as set forth in this article, shall place any horse in the care of or attendance of any other person.

§1503. Qualifications for License as Trainer or Assistant Trainer.

Note • History

(a) Except as otherwise provided under this article, an applicant for an original license as trainer or assistant trainer shall pass a trainers examination before issuance of a license. An applicant shall:

(1) Pass the written, oral and practical portions of the examination as prescribed by the Board and administered by its agents.

(b) A score of 80% for each portion constitutes a passing grade for the examination.

(c) An applicant who fails the written, practical or oral portion of the examination may apply for reexamination and take the failed portion after a period of at least one month, but not more than six months, from the date of the failed examination.

(1) An applicant who fails to apply for reexamination under subsection (c) must reapply for license as trainer or assistant trainer, and reexamine under subsections (a) and (b).

(2) The examination for license as trainer or assistant trainer shall be scheduled not less than once a month at a time and location designated by the Board.

(d) Notwithstanding the above, an applicant who is currently licensed by another racing jurisdiction as a trainer or assistant trainer, and has held the license for a minimum of one year in good standing, shall make an application for license as trainer or assistant trainer under Rules 1481 and 1483 of this division. The applicant shall appear before the Board of Stewards and they may subject him/her to any portion of the examination.

(1) An applicant who fails either the written, practical or oral portion of the examination administered under subsection (d) may reapply for reexamination and take the failed portion after a period of at least one month, but not more than six months, from the date of the failed examination.

(2) An applicant who fails to apply for reexamination under subsection (d)(1) must reapply for license as trainer or assistant trainer, and reexamine under subsections (a) and (b).

(e) An individual who is currently licensed as a trainer or assistant trainer who wishes to change his or her license from harness to other types of flat racing, or other types of flat racing to harness, is subject to the examination under subsections (a) and (b).

(1) An applicant who fails either the written, practical, or oral portion of the examination administered under subsection (e) may reapply for reexamination and take the failed portion after a period of at least one month, but not more than six months, from the date of the failed examination.

(2) An applicant who fails to reapply for reexamination under subsection (e)(1) must reapply for change of license and reexamine under subsections (a) and (b).

NOTE

Authority cited: Sections 19420, 19440 and 19460, Business and Professions Code. Reference: Sections 19420, 19440, 19460 and 19510, Business and Professions Code.

HISTORY

1. New section filed 4-5-94; operative 5-5-94 (Register 94, No. 14).

2. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1504. Qualifications For License As Farrier.

Note • History

Except as otherwise provided under this article, an applicant for an original license as a farrier shall take and pass a Farriers Examination prior to issuance of a license. An applicant shall:

(a) Complete and pass the written and the practical portions of the examination as prescribed by the Board and administered by its agents.

(b) A score of 80% shall constitute a passing grade on the written portion of the Farriers Examination.

(c) A passing score in all areas of the practical examination, which is weighted pass/fail, shall constitute a passing grade on the practical portion of the Farriers Examination.

(d) An applicant who fails one or both portions of the Farriers Examination may apply to retake the failed portion at the next regularly scheduled Farriers Examination.

NOTE

Authority cited: Sections 19440, 19460 and 19520, Business and Professions Code. Reference: Sections 19420, 19440, 19460, 19510 and 19520, Business and Professions Code.

HISTORY

1. New section filed 7-21-94; operative 8-22-94 (Register 94, No. 29).

§1504.5. Provisional Exercise Rider and Exercise Rider.

Note • History

No person may be licensed as an exercise rider who is not currently licensed in good standing as a provisional exercise rider, unless such person was or is currently licensed as a jockey, apprentice jockey or an exercise rider in good standing in California, or in another racing jurisdiction.

(a) Except as otherwise provided under this article, an applicant for a provisional exercise rider license shall provide evidence that a California licensed trainer employs him or her by submitting a notarized Provisional Exercise Rider Agreement CHRB-213 (New 10/08), which is hereby incorporated by reference. The notary acknowledgement is not necessary if the CHRB-213 is signed before a Board employee. The CHRB-213 shall be available at Board licensing offices at live race meetings, and at Board headquarters offices.

(b) A licensed provisional exercise rider shall:

(1) Not enter the track without the permission of the outrider and, unless the outrider states otherwise, shall be accompanied by the mounted trainer/employer or the trainer's assistant trainer while on the track.

(2) While on the track wear a helmet cover and vest cover of a distinctive color as determined by the outrider.

(c) A provisional exercise rider may apply for license as exercise rider 60 calendar days after the date of issue of his or her provisional exercise rider license.

(1) At the time of application for license as exercise rider, the provisional exercise rider shall submit a recommendation card form California Horse Racing Board CHRB-59 that has been signed by the outrider, the starter and a steward. The recommendation card is available at Board licensing offices at live race meetings, and Board headquarter offices. By signing the recommendation card the outrider, the starter and the steward certify that the applicant has:

(A) Been observed riding one or more horses on the racetrack to the extent necessary for the outrider and starter to determine if the applicant has demonstrated an ability to safely navigate and respond to track conditions and knowledge of starting gate procedures.

(B) Complete and pass a written examination prescribed by the Board and administered by its agents. A score of 80 percent shall constitute a passing grade on the written examination.

(d) An applicant who fails to adequately demonstrate horsemanship or who fails the written examination may reapply for a license as exercise rider after a period of at least one month, but not more than six months, and retake the failed portion. After a six-month period the applicant must demonstrate horsemanship, and pass the written examination, as required under subsections (c)(1)(A) and (c)(1)(B) of this regulation.

(e) Persons working at harness meetings may not sign a CHRB-59 for flat racing.

NOTE

Authority cited: Sections 19420, 19440 and 19520, Business and Professions Code. Reference: Sections 19420, 19440 and 19520, Business and Professions Code.

HISTORY

1. New section filed 3-5-2009; operative 4-4-2009 (Register 2009, No. 10).

§1505. Qualifications for License as Horse Owner.

Note • History

(a) No person may be licensed as a horse owner who is not the owner of record of a properly registered race horse which is in the care of a licensed trainer, or

(1) who does not have an interest in such race horse as a co-owner, part owner, or lessee, or

(2) who is not the responsible managing employee of a corporation or a limited liability company (Corporations Code section 17000 et seq.) which is the legal owner of such horse.

(b) No person licensed by the Board as a jockey, apprentice jockey, racing official, assistant starter or veterinarian's assistant shall be licensed also as a horse owner.

(d) An applicant for renewal of a horse owner license whose license is in good standing with the Board, but who is not the owner of record of a properly registered race horse which is in the care of a licensed trainer, or who does not have an interest in such race horse as a co-owner, part owner, or lessee, may renew such license as horse owner.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19460 and 19520, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 8-14-98; operative 9-13-98 (Register 98, No. 33).

2. New subsection (d) filed 11-17-2008; operative 12-17-2008 (Register 2008, No. 47).

§1506. Horse Ownership by Corporation or Limited Liability Company.

Note • History

If the legal owner of any race horse is a corporation or a limited liability company (Corporations Code section 17000 et seq.), the corporation or limited liability company shall appoint one or more responsible managing employee(s) who, if qualified, may be granted a license as Horse Owner. Such employee accepts and assumes all responsibilities of an owner.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19460 and 19520, Business and Professions Code.

HISTORY

1. Amendment of section heading and section and new Note filed 8-14-98; operative 9-13-98 (Register 98, No. 33).

§1507. Partnerships.

All general partners in the partnership owning a race horse assume equal responsibilities of ownership, and all such general partners are required to be licensed, irrespective of the percentage of partnership held. No limited partner may be granted a license as horse owner.

§1508. Statements of Partnerships.

Note • History

(a) All statements of partnerships and the relative proportion of ownership interest, the terms of sales with contingencies, arrangements, or leases, shall be filed with the paymaster of purses of the association and with the Board, and shall declare:

(1) to whom winnings are payable,

(2) in whose names the horse is run if more than three persons comprise the partnership, and

(3) with whom rests the power of entry.

(b) The part owner of any horse may not assign his share or any part of it without the written consent of the other partners. The consent shall be filed with the paymaster of purses.

(c) No part owner or lessee of a racehorse is qualified for a license as horse owner until he has complied with this rule.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19420, 19440, 19460 and 19461, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1509. Use of License Required.

Every licensee, in order to maintain his qualifications for any license held by him, must have been regularly engaged in the occupation for which the license was issued for no less than 21 working or racing days during the term of the license. Should a licensee not be so engaged for the period required, the Board may require that such licensee or applicant for renewal of a license re-establish his qualifications for such license.

§1510. Knowledge of Rules.

Every licensee, in order to maintain his qualifications for any license held by him, shall be familiar with and knowledgeable of the rules including all amendments thereto. Every licensee is presumed to know the rules.

Article 5. Racing Officials

§1520. Racing Officials.

Note • History

The racing officials of a race meeting, unless otherwise ordered by the Board, are: the stewards, the associate judges, the placing judges, the paddock judge, the patrol judges, the starter, the clerk of scales, the official veterinarian, the racing veterinarian, the horse identifier, the horseshoe inspector, the timers, and the clerk of the course.

NOTE

Authority cited: Sections 19440, 19562, Business and Professions Code. Reference: Sections 19401(a), (e), Business and Professions Code.

HISTORY

1. Amendment filed 6-25-76; effective thirtieth day thereafter (Register 76, No. 26).

2. Amendment filed 4-12-79; effective thirtieth day thereafter (Register 79, No. 15).

§1521. Responsibility to the Board.

The racing officials are strictly responsible to the Board for the performance of their respective duties, and they shall promptly report to the Board or its stewards, any violation of the rules and regulations of the Board coming to their attention or of which they have knowledge. Any racing official who fails to exercise due diligence in the performance of his duties shall be relieved of his duties by the stewards and the matter referred to the Board.

§1522. Employment of Racing Officials. [Repealed]

History

HISTORY

1. Repealer filed 9-15-82; effective thirtieth day thereafter (Register 82, No. 38).

§1523. Racing Officials Subject to Approval.

Note • History

Every racing official is subject to prior approval by the Board before being eligible to act as a racing official at a race meeting. At the time of making application for a racing license the association shall nominate the racing officials other than the racing officials appointed by the Board and after issuance of license to the association there shall be no substitution of any racing official except with approval of the stewards or the Board.

NOTE

Authority cited: Section 19440 and 19460, Business and Professions Code. Reference: Section 19510, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1524. Nomination of Racing Officials. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1525. Racing Officials Appointed by the Board.

History

The Board shall appoint the following racing officials for a race meeting: The stewards, the official veterinarian, and the official horse identifier.

HISTORY

1. Amendment filed 4-11-78 as procedural and organizational; designated effective thirtieth day thereafter (Register 78, No. 15).

§1526. Selection of Stewards. [Repealed]

History

HISTORY

1. Repealer filed 4-11-78 as procedural and organizational; designated effective thirtieth day thereafter (Register 78, No. 15).

§1527. General Authority of Stewards.

Note • History

The stewards have general authority and supervision over all licensees and other persons attendant on horses, and also over the inclosures of any recognized meeting. The stewards are strictly responsible to the Board for the conduct of the race meeting in every particular.

NOTE

Authority cited: Section 19440, Business and Professions Code. Reference: Section 19440, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding Note filed 4-16-2002 pursuant to section 100, title 1, California Code of Regulations (Register 2002, No. 16).

§1528. Jurisdiction of Stewards to Suspend or Fine.

Note • History

The stewards' jurisdiction in any matter commences at such time as entries are taken for the first day of racing at the meeting and extends until thirty (30) days after the close of such meeting. However, the Executive Director or the Board may delegate the authority to adjudicate any matter occurring at any racing meeting to another Board of Stewards at any time. The stewards may suspend the license of anyone whom they have the authority to supervise or they may impose a fine or they may exclude from all inclosures in this State or they may suspend, exclude and fine. All such suspensions, fines or exclusions shall be reported immediately to the Board.

NOTE

Authority cited: Section 19440, Business and Professions Code. Reference: Section 19440, Business and Professions Code.

HISTORY

1. Amendment filed 10-20-81; effective thirtieth day thereafter (Register 81, No. 43).

2. Amendment filed 11-29-94; operative 12-29-94 (Register 94, No. 48).

§1529. Referral to the Board.

Note • History

The stewards may refer any matter within their jurisdiction to the Board when the penalty the stewards have jurisdiction to impose is insufficient when a hearing cannot be held under the conditions or in the manner prescribed, when a hearing is impractical due to conclusion of the meeting, or for other good and sufficient cause, and they may order the suspension of the licensee pending further Order of the Board. In such event, the Board shall accept the matter for hearing and adjudication or such other action as the Board deems to be in the best interests of justice.

NOTE

Authority cited: Sections 19440 and 19460, Business and Professions Code. Reference: Sections 19460 and 19461, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1530. Cases Not Covered by Rules and Regulations.

Should any case occur which may not be covered by the Rules and Regulations of the Board or by other accepted rules of racing, it shall be determined by the stewards in conformity with justice and in the interest of racing.

§1531. Vacancy Among Racing Officials.

Where a vacancy occurs among the racing officials the stewards shall fill the vacancy immediately. Such appointment is effective until the vacancy is filled in accordance with the rules.

§1532. Payment of Fines.

Note • History

(a) All fines imposed by the stewards shall be paid by the person upon whom such fine has been imposed to the paymaster of purses within seven calendar days after imposition and no person shall fail to pay a fine within the time limit it is due except when the imposition of such fine is ordered stayed by the stewards, the Board or a court having jurisdiction.

(1) Official ruling shall state that fines shall be paid within seven calendar days from the date of the ruling, or the license of the person upon whom the fine has been imposed shall be suspended.

(b) On the first working day of each week of the meeting, the paymaster of purses shall provide the Board with a record of the full name of any person at the meeting upon whom a fine was imposed, the steward's ruling number, the date upon which the fine was imposed, and the date upon which the fine was paid. Within ten calendar days after the conclusion of the meeting the paymaster shall forward the collected fines and the record of such fines to the Executive Director of the Board.

(1) A paymaster of purses who receives payment for a fine imposed at a meeting other than the one at which the fine is paid shall record the full name and occupational license number of the person upon whom the fine was imposed, the racetrack at which the fine was imposed, the date and number of the steward's ruling, and the date upon which the fine was paid. The paymaster of purses shall forward the collected fines and the record of such fines in accordance with subparagraph (b) of this rule.

(c) Any fine imposed by the Board shall be paid within seven calendar days to the Executive Director of the Board or as may be otherwise ordered by the Board.

NOTE

Authority cited: Sections 19440 and 19460, Business and Professions Code. Reference: Sections 19461 and 19640, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

2. Amendment filed 1-4-94; operative 2-3-94 (Register 94, No. 1).

3. Change without regulatory effect amending subsections (b)-(c) filed 6-7-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 23).

§1533. Record of Payment of Fine. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1534. Fines Imposed by the Board. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1535. Majority Votes Required. [Repealed]

History

HISTORY

1. Amendment filed 4-11-78 as procedural and organizational; designated effective thirtieth day thereafter (Register 78, No. 15).

2. Repealer filed 4-21-83; effective thirtieth day thereafter Register 83, No. 17).

§1536. Stewards' Minutes.

Note • History

(a) The stewards shall maintain minutes and records of all proceedings before the stewards that shall contain:

(1) the record of votes,

(2) a record of all actions taken, and

(3) the penalties imposed along with the reasons for the actions.

A majority vote of the stewards shall govern and in the event of a split vote, each steward shall file a separate report on the matter. The stewards shall submit their original minutes to the Executive Director weekly, and shall deliver a copy of their minutes to each member of the Board.

(b) A report of all on-track accidents involving jockeys or drivers on form Jockey/Driver Accident Report CHRB-201 (New 07/06), which is hereby incorporated by reference, shall be attached to the stewards' minutes.

NOTE

Authority cited: Sections 19420, 19440 and 19481.3(e), Business and Professions Code. Reference: Sections 19432, 19440 and 19481.3(e), Business and Professions Code.

HISTORY

1. Amendment filed 4-11-78 as procedural and organizational; designated effective thirtieth day thereafter (Register 78, No. 15).

2. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

3. Change without regulatory effect amending section heading and text filed 6-7-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 23).

4. Amendment of section and Note filed 1-11-2007; operative 2-10-2007 (Register 2007, No. 2).

§1537. Record and Transcript of Hearing.

Note • History

(a) A verbatim record shall be made of all hearings before the stewards in any matter other than those relating solely to riding infractions where the penalty imposed by the stewards is ten (10) days or less suspension, or those relating to license application recommendations.

(b) Notwithstanding subsection (a), and at the stewards' discretion, the racing association shall provide either a certified court reporter or electronic recording equipment to record all hearings. Such recording equipment shall include, but not be limited to, tape recorder(s), at least three (3) microphones and a sufficient supply of recording tapes.

(c) The cost of such reporter and recording equipment shall be assumed by the racing association conducting the racing meeting. The taped recording(s) shall be stored and maintained by the Board for a minimum of sixty (60) days after the initial hearing or a minimum of sixty (60) days after an appeal is heard and decided by the Board.

(d) Upon the request of the Executive Director or his/her designee, the racing association shall furnish an original and two copies of the hearing transcript to the Executive Director.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19432 and 19440, Business and Professions Code.

HISTORY

1. Amendment of section heading, text and new Note filed 11-29-93; operative 12-29-93 (Register 93, No. 49).

2. Change without regulatory effect amending subsection (d) filed 6-7-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 23).

3. Amendment of subsections (a) and (c) filed 10-15-96; operative 11-14-96 (Register 96, No. 42).

§1538. Duty of Disclosure.

It is the duty and obligation of every licensee to make full disclosure to the Board at a hearing before the Board or to the stewards at a hearing before the stewards of any knowledge he possesses of a violation of any racing law or of the rules and regulations of the Board, and no person may refuse to testify before the stewards at any hearing on any relevant matter within the authority of the stewards, except in the proper exercise of a legal privilege, nor shall any person testify falsely before the stewards.

§1539. Representation at Hearing.

Every person who is called to testify before the stewards is entitled to have counsel or an observer of his choosing present at the hearing; provided, however, that such counsel or observer shall only participate under such conditions or in such manner as the stewards may direct.

§1540. Referral to the Board Without Hearing. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1541. Power to Order Examination of Horse.

At any time the stewards may order an examination of any horse within the inclosure, by such persons as they see fit, and may order the examination of any ownership papers, certificates, documents or eligibility, contracts or leases pertaining to such horse, and they may require an affidavit of ownership or interest in any horse.

§1542. Power to Refuse Entry and Deny Eligibility.

For good cause, the stewards may refuse the entry to any race, or declare ineligible to race and order removed from the premises, any horse.

§1543. Stewards to Determine Fouls and Extent of Disqualification.

The stewards shall determine the extent of disqualification in cases of fouls or riding or driving infractions. They may place the offending horse behind such other horses as in their judgment it interfered with, or they may place it last.

§1544. Calling off Race.

Note • History

(a) If the stewards determine a race cannot start before midnight or cannot be conducted in accordance with the Board's rules and regulations, they shall cancel and call off such race.

(b) The stewards may declare a race no contest if mechanical failure or interference during the running of the race affects the majority of horses in such race.

(c) Any wagers on races called off, canceled, or declared no contest shall be refunded, and no purse, prize or stakes shall be awarded.

(d) If a race is called off, canceled, or declared no contest, any submitted claims shall be void.

(e) A race shall be canceled if no horse covers the course.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Section 19562, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 11-22-2006; operative 12-22-2006 (Register 2006, No. 47).

§1545. Substitution of Jockey or Trainer.

(a) In the event a jockey who is named to ride on a mount in a race is unable to fulfill his engagement and is excused by the stewards, the trainer of the horse may select a substitute jockey or, if no satisfactory substitute jockey is available, may elect that the stewards declare the horse from the race.

(b) In the absence of the trainer of the horse, the stewards may place the horse in the temporary charge of a substitute trainer of their selection.

§1546. Complaints Against Officials.

Note • History

Any complaint against a racing official other than a steward shall be made to the stewards in writing and signed by the complainant. All such complaints shall be reported to the Board by the stewards together with a report of the action taken or the recommendation of the stewards. Complaints against any steward shall be made in writing to the Executive Director of the Board and signed by the complainant.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19420, 19440 and 19510(c), Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adopting Note filed 6-7-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 23).

§1547. Failure to Appear.

Note • History

Any licensee who fails or refuses to comply with written or verbal notification to appear before the Board of Stewards shall have their license privileges suspended pending their appearance before the Board of Stewards. Failure to appear shall be a separate cause for disciplinary action.

NOTE

Authority cited: Sections 19440 and 19460, Business and Professions Code. Reference: Sections 19460 and 19461, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 2-4-97; operative 3-6-97 (Register 97, No. 6).

§1548. Rulings by the Stewards.

Note • History

(a) Any ruling or order issued by the stewards shall specify:

(1) the full name of the licensee or person subject to the ruling or order;

(2) his date of birth and social security number, if known;

(3) a statement of the offense charged including any rule number, and

(4) the penalty imposed.

(b) Any person affected by any ruling or order shall be notified.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19420 and 19440, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1549. Recommendation of Discipline.

A racing official may recommend to the stewards that disciplinary action be imposed upon any licensee for a violation of any rule or regulation or for any other misconduct by such licensee.

§1550. Steward's List.

The stewards shall maintain a Steward's List of those horses which are ineligible to start or be entered in any race because of poor or inconsistent performance. The stewards may place on such list any horse which, in their opinion, has run an unsatisfactory race and its entry to any race shall be thereafter refused until it is demonstrated to the stewards that it should be removed from the list.

§1551. Starter's List.

The starter shall maintain the Starter's List and all horses shall be schooled to the starting gate, if and when required, under the personal supervision of the starter and/or his assistants. The entry of any horse on the Starter's List shall be refused.

§1552. Duties of the Starter.

The starter shall give all orders and take all measures not in conflict with the rules as may be required to insure a fair start. The starter shall appoint his assistants. The starter shall not permit his assistants to handle or take charge of a horse in the starting gate without his express instructions.

§1553. Duties of the Paddock Judge.

The paddock judge shall supervise the assembling of the horses scheduled to race and shall have general supervision over the saddling equipment and changes thereof. The paddock judge shall supervise the saddling of horses in the paddock and shall supervise their departure for the post. The paddock judge shall maintain a record of all equipment of a horse saddled for a race and he shall report to the stewards any change therefrom at a subsequent saddling. No change of equipment shall be made without the consent of the stewards.

§1554. Duties of Horse Identifier.

The horse identifier shall make an inspection of each horse prior to its departure for the post. He shall immediately report to the stewards and the paddock judge any horse which is not properly identified or has any irregularities from the official identification record of the Board. The horse identifier shall inspect, identify, and prepare identification records and photographs of all horses within the inclosure not previously identified in California. He shall inspect documents of ownership, eligibility, registration, or breeding, as may be necessary to insure proper identification of each horse eligible to compete at the race meeting. He shall supervise the tattooing or branding for identification of any horse within the inclosure.

§1555. Duties of Horseshoe Inspector.

The horseshoe inspector shall make an inspection of the horseshoes of each horse prior to its departure for the post. He shall report immediately to the stewards any horse which is improperly shod, and he shall maintain a record of the type of shoes worn by each horse. He has the authority to make adjustments and corrections in shoes of any horse as he may deem necessary, subject to the approval of the stewards.

§1556. Duties of Patrol Judges.

The patrol judges shall be subject to the orders of the stewards and shall report to the stewards all facts occurring under their observation during the running of a race.

§1557. Duties of Timer.

The timer shall record for posting the time of each race.

§1558. Duties of Placing Judges.

The placing judges shall occupy the placing judges' stand at the time the horses pass the winning post, and their duty shall be to place the horses in the order of finish and display results. If the photograph of the finish of the race indicates a close finish, or the placing judges are not unanimous as to the correct order of finish, the photograph shall be submitted to the stewards for examination and for concurrence on the result before the order of finish of the race is displayed or announced. In the case of a dead heat, or disagreement as to the correct order of finish, the decision of the stewards shall be final. In placing the horses at the finish, the position of the horses noses only shall be considered and not any other part of the body.

§1559. Duties of Clerk of Scales.

The clerk of scales shall verify the correct weight of each jockey at the time of weighing out and when weighing in, and he shall report any discrepancies to the stewards immediately. The clerk of scales shall notify the stewards of any change of jockeys, or of any extra or special weight declared for any horse, or any overweight, or any alteration of colors. At the close of each day's racing the clerk of scales shall provide the association with a report of the weight carried in every race and the names of the jockeys specifying overweight, if any. He shall provide the paymaster of purses an accounting of the riding fees due each jockey at the end of each racing day. The Clerk of Scales shall be responsible to the stewards for the conduct of the jockeys and their attendants in the jockey room.

§1560. Duties of the Official Veterinarian.

The official veterinarian shall be responsible to the stewards for the conduct of horses and their attendants in the receiving and detention barn. He shall have authority and jurisdiction to supervise the practicing licensed veterinarians and shall enforce the Board's rules and regulations relating to veterinary practices. The official veterinarian shall recommend discipline for the licensed veterinarians who fail to comply with the rules and regulations and accepted veterinary practices. He shall report

to the Board the names of all horses humanely destroyed or which otherwise expire at the meeting and the reasons therefor. He shall maintain a list of all infirm horses on the grounds. No official veterinarian, during his term of appointment, shall directly treat or prescribe for any horse registered to race at any recognized meeting except in emergency, the details of which shall be immediately reported to the stewards.

§1561. Duties of the Racing Veterinarian.

The Racing Veterinarian shall examine each horse when it is first entered to race at the race meeting and he shall report to the stewards any horse which in his opinion is not of the age or condition which is satisfactory for the type of racing to be conducted at the meeting. The stewards may declare any such horse so reported as ineligible to be entered or started at the meeting until such time as the Racing Veterinarian certifies such horse to be raceably sound. The Racing Veterinarian shall be present in the paddock, on the race course, and at the starting gate during the saddling, the parade, and until the horses are dispatched from the gate for the race, and he shall examine any horse when there is a question as to the physical condition of such horse. He shall report any horse which in his opinion is incapable of physically exerting its best effort to win to the stewards who may declare such horse from the race. The Racing Veterinarian shall examine any horse which appears in physical distress during the race, at the finish of the race and he shall report such horse together with his opinion as to the cause of the distress to the stewards and to the official veterinarian. The Racing Veterinarian has the authority to treat any horse in event of an emergency, accident or injury, and he is authorized to humanely destroy any horse which in his opinion is so seriously injured that it is in the best interests of racing to so act, and every horse owner and trainer in participating in a race in this State does consent thereto. The Racing Veterinarian shall recommend to the official veterinarian those horses which by reason of physical disability should be placed on the Veterinarian's List and he may recommend removal from the list of those horses which in his opinion can satisfactorily compete in a race.

§1562. Duties of Associate Judges.

Note • History

An associate judge may perform any of the duties which are performed by any racing official at a meeting, provided such duties are assigned or delegated to him by the Board or by the stewards presiding at that meeting.

NOTE

Authority cited: Article IV of Section 19b, California Constitution, and Sections 19420, 19440, 19460 and 19562, Business and Professions Code. Reference: Article IV of Section 19b, California Constitution, and Sections 19420, 19440, 19460 and 19562, Business and Professions Code.

HISTORY

1. New section filed 6-25-76; effective thirtieth day thereafter (Register 76, No. 26).

§1563. Duties of the Clerk of the Course.

Note • History

The clerk of the course shall keep a record of all registration certificates or certificates of eligibility deposited with or released by the racing association, shall verify that the said certificates correctly reflect the ownership of the horse for which the certificate applies, shall record when directed appropriate identifying information on the said certificates in the custody of the said clerk of the course, is authorized to make transfers of certificates on horses claimed at the meeting and shall perform such other duties as directed by the stewards.

NOTE

Authority cited: Sections 19440, 19562, Business and Professions Code. Reference: Sections 19401(a), (e), Business and Professions Code.

HISTORY

1. New section filed 4-12-79; effective thirtieth day thereafter (Register 79, No. 15).

Article 6. Entries and Declarations

§1580. Control over Entries and Declarations.

All entries and declarations are under the supervision of the stewards, and they may, without notice, refuse the entries of any person or the transfer of any entries, and they may also, in their discretion, limit entries by providing that no horse shall be listed for more than one race in any one day.

§1581. Racing Secretary to Establish Conditions.

The racing secretary may establish the conditions for any race, the allowances or handicaps to be established for specific races, the procedures for the acceptance of entries and declarations, and such other conditions as are necessary to provide and conduct the association's race meeting.

§1581.1. Entries.

Note • History

No person shall enter or attempt to enter a horse for a race unless such entry is a bonafide entry made with the intention that such horse is to compete in the race for which entry is made.

(a) No horse having been drawn for a post position for any race to be run shall be entered for any subsequent race, other than for a stakes race, until or unless excused by the stewards from the race in which drawn for valid reason or until the race in which it has drawn has been run.

(b) No person shall attempt to enter or enter any horse for a race unless such person is authorized to do so in accordance with the rules.

(c) Every horse drawn in for a post-position in a race shall have a jockey or driver named to ride or to drive such horse before the draw is finalized and no jockey or driver shall be named to ride or to drive more than one such drawn horse in each race.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Sections 19440 and 19562, Business and Professions Code.

HISTORY

1. New section filed 6-6-80; effective thirtieth day thereafter (Register 80, No. 23).

2. Amendment of subsection (a) filed 1-18-84; effective thirtieth day thereafter (Register 84, No. 3).

§1581.2. Prohibition on Entering of Pregnant Mares Beyond 120 Days Gestation.

Note • History

Notwithstanding Rule 1664 of this division, a pregnant mare may not be entered in a race if she is beyond 120 days of gestation.

NOTE

Authority cited: Sections 19420, 19440 and 19562, Business and Professions Code. Reference: Section 19562, Business and Professions Code.

HISTORY

1. New section filed 10-16-2012; operative 11-15-2012 (Register 2012, No. 42).

§1582. Form of Entries and Declarations.

Note • History

(a) Entries and declarations shall be in writing on the forms provided by the association and signed by the owner of the horse, his authorized agent, the trainer of the horse or a representative delegated by the trainer.

(b) As a condition of the race meeting under Rule 1437 of this division, entries may be made by telephone, facsimile, or any other electronic method deemed appropriate by the association. The association may require a written confirmation of such entries.

NOTE

Authority cited: Section 19440, Business and Professions Code. Reference: Section 19562, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

2. Amendment of section and Note filed 12-5-2006; operative 1-4-2007 (Register 2006, No. 49).

3. Editorial correction of History 2 (Register 2007, No. 51).

§1583. Receipt of Entries and Declarations.

The racing secretary is the person authorized to receive entries and declarations for all races. The racing secretary, employees of his department, or racing officials shall not disclose any pertinent information concerning entries which have been submitted until after all entries are closed.

§1584. Entries by Telephone or Telegraph. [Repealed]

History

HISTORY

1. Repealer filed 9-15-82; effective thirtieth day thereafter (Register 82, No. 38).

§1585. Miscarriage of Entry, Declaration or Payment.

Note • History

Any entry, declaration, nomination, sustaining payment or other required payment, fee or eligibility documents submitted by mail but not received by the specified time shall not be accepted unless the person mailing the same submits satisfactory evidence of proper mailing in the form of a timely postmark or declaration from a postal representative.

NOTE

Authority cited: Section 19562, Business and Professions Code. Reference: Section 19562, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1586. Joint Subscriptions and Entries.

Joint subscriptions, nominations and entries may be made by two or more partners, and each partner is jointly and severally liable for all stakes and forfeits.

§1587. Entries Survive with Transfer.

All entries and rights of entry are valid and survive when a horse is sold with his engagements duly transferred. If a partnership agreement is properly filed with the paymaster of purses, subscriptions, entries and rights of entry survive in the remaining partners. Unless written notice to the contrary is filed with the stewards, the entries, rights of entry, and engagements remain with the horse and are transferred therewith to the new owner. No entry or right of entry shall become void on the death of the nominator unless the conditions of the race state otherwise.

§1588. Horse Ineligible to Start in a Race.

Note • History

In addition to any other valid ground or reason, a horse is ineligible to start in any race if:

(a) Such horse is not registered by the Jockey Club if a thoroughbred, the United States Trotting Association if a standardbred, the American Quarter Horse Association if a quarter horse, the Appaloosa Horse Club if an appaloosa horse, the Arabian Horse Registry of America if an arabian horse, or the American Paint Horse Association if a paint horse.

(b) The parentage verification to both the sire and the dam of all horses foaled in 1992 and thereafter has not been certified by the Jockey Club if a thoroughbred, the United States Trotting Association if a standardbred, the American Quarter Horse Association if a quarter horse, the Appaloosa Horse Club if an appaloosa horse, the Arabian Horse Registry of America if an arabian horse, or the American Paint Horse Association if a paint horse.

(c) Unless the stewards permit otherwise, the certificate of foal registration, eligibility papers, or other registration issued by the official registry for such horse is not on file with the racing secretary at the time of entry;

(d) Such horse has been entered or raced at any recognized race meeting under any name or designation other than the name or designation duly assigned by and registered with the official registry;

(e) The certificate of foal registration, eligibility papers or other registration issued by the official registry has been altered, erased, or forged;

(f) The identification markings of the horse do not agree with the identification markings as set forth in the registration of such horse.

(g) Unless he is eligible to enter said race and is duly entered for such race.

(h) When such horse is owned in whole or in part by an unlicensed person or is in the care of an unlicensed trainer.

(i) When such horse is on the Steward's List, the Starter's List or the Veterinarian's List.

(j) When, except with prior approval of the stewards, such horse has not been on the grounds of the association or its approved auxiliary stable area for at least 24 hours prior to the time the race is to be run.

NOTE

Authority: Sections 19440 and 19562, Business and Professions Code. Reference: Sections 19440 and 19562, Business and Professions Code.

HISTORY

1. Amendment of subsections (a) and (b) and relettering and new Note filed 7-9-92; operative 8-10-92 (Register 92, No. 28).

§1591. Horses Ineligible to Be Entered for Claiming Race.

In addition to any other valid ground or reason, a horse is ineligible to be entered for any claiming race when there is a lien on such horse which has been filed with the stewards and the racing secretary, and when such lien is declared as valid for racing purposes by the stewards.

§1592. Ineligible Horse to Be Disqualified.

Any horse ineligible to be entered for a race, or ineligible to start in any race, who competes in such race may be disqualified and the stewards may discipline anyone responsible therefor.

§1593. Change of Name of Horse.

In the event a horse's name is changed, both his old and his new name must be given in every entry list until he has run three races, and both names must be printed on the official program for those three races.

§1594. Registration Certificates to Reflect Correct Ownership.

Every certificate of registration or eligibility certificate filed with the association and its racing secretary to establish the eligibility of a horse to be entered for any race shall accurately reflect the correct and true ownership of such horse, and the name of the owner which is printed on the official program for such horse shall conform to the ownership as declared on the certificate of registration or eligibility certificate unless a stable name has been registered for such owner or ownership with the Board.

§1595. Alteration or Forgery of Certificate of Registration.

No person shall alter or forge any certificate of registration, registration paper, certificate of eligibility or any other document of ownership or registration, nor willfully forge or alter the signature of any person required on any such document.

§1596. Transfer After Sale of Horse on the Grounds.

History

Any Board licensee acting as either seller or purchaser, or their agents or representatives, of a racehorse, prospective racehorse, stallion, or brood mare, which is sold while within the inclosure of a racing association or fair licensed to conduct a live racing meeting, shall immediately notify the stewards of such sale and transfer. The stewards shall require a completed Bill of Sale CHRB Form-101 (3/97), which is hereby incorporated by reference, for any such sale or transfer. If a sale or transfer occurs at an auxiliary stabling facility, a Board-approved training facility, an authorized horse sale or any other location and is sold or purchased by a Board licensee, a completed CHRB Form-101 shall be submitted to the stewards at the nearest racing facility within three (3) calendar days of the sale or transfer.

If the buyer and/or seller do not appear in person before the stewards and/or the stewards cannot independently verify the person's signature, a notarized Bill of Sale, CHRB Form-101, shall be required. CHRB Form-101 shall be available to the public at all Board offices.

Note: Sections 19420, 19440 and 19525, Business and Professions Code. Reference: Sections 19420, 19440 and 19525, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 6-20-96; operative 7-20-96 (Register 96, No. 25).

2. Change without regulatory effect amending first paragraph filed 11-26-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 48).

§1597. Association to Maintain Records of Horses on Its Grounds.

The association shall maintain a list or record of all horses admitted to its grounds for racing by name, and such list or record shall also contain the name of the owner or owners of such horses, and the name of the trainers having care of such horses. Such list or record shall be available for inspection by the stewards or the Board. Additions and deletions of horses entering or leaving the grounds shall be made to such list or records within 48 hours of the entering or leaving of a horse.

§1598. Selecting Positions of Entered Horses.

The manner of selecting positions of horses at the post shall be determined by the stewards. The selection shall be by lot and shall be made by one of the stewards or someone designated by them, in public, at the close of the entries. The horses so drawn shall be entitled to a position at the post corresponding to the number drawn, which number shall be exhibited on the saddlecloth and printed in the program with the name of the jockey or driver.

§1599. Excessive Number of Entries.

If the number of entries to any race is in excess of the number of horses which may, because of track limitations, be permitted to start in any one race, the race may be split and the starters shall be determined by lot in the presence of those having made entries, and the post positions shall be in the order in which they are drawn.

§1600. Horses Listed As Also Eligible.

If the entries to any purse race exceed the number which may, because of track limitations, be permitted to start in any one race, a list of four or more horses entered shall be drawn from the surplus entries and listed as “also eligible” to be drawn in to the race by lot if any of the first number are declared.

§1601. Preferred List of Horses.

The racing secretary shall maintain a list of entered horses eliminated from starting by a surplus of entries, and these horses shall constitute a preferred list and have precedence in starting in any race of a similar distance and similar conditions in which they are afterward entered. If a horse is eliminated two or more times consecutively it shall have precedence over all other entries which have been eliminated fewer times. For the purpose of this rule, races of a mile or over shall be considered races of similar distances and races of less than a mile shall be considered similar distances.

§1602. Time for Declarations.

Any owner, his authorized agent, or trainer of a horse which has been entered for a purse race and has been drawn in to the race and entitled to a post position or is also eligible, who does not wish such horse to start in the race, shall file a request for a declaration not later than the “scratch time” designated for such race by the stewards. Any horse so declared pursuant to such request shall lose all preferences it has accumulated.

§1603. Insufficient Entries.

Note • History

The racing secretary with the agreement of the organization representing the horsemen at the meeting shall establish as a condition of the meeting the minimum number of valid entries required for an overnight race to be considered filled and a race considered filled with a sufficient num-- ber of valid entries in accordance with such agreement shall be run. If there are insufficient entries for a race to be considered filled, such race may be declared off with approval of the stewards and a substitute race used.

NOTE

Authority cited: Sections 19420, 19440 and 19590, Business and Professions Code. Reference: Section 19401, Business and Professions Code.

HISTORY

1. Amendment filed 6-6-80; effective thirtieth day thereafter (Register 80, No. 23).

§1604. Splitting of Overnight Race.

If a race is declared off because of insufficient entries, the association may split an overnight race which may have closed and may cause a new drawing for post positions.

§1605. Change in Conditions After Entry Prohibited.

After any entry to a race whose conditions have been published has been accepted by the racing secretary or his delegate, no condition of such race shall be changed, amended or altered, nor shall any new condition for such race be imposed.

§1606. Association to Disclose Ownership.

Note • History

(a) If two or more horses that are entered in the same race are owned in whole or in part by the same person or persons, or are trained by the same trainer, the racing association shall take such actions as are necessary to adequately inform the public, including publishing the name of the owners and trainer in the official program as required under Rule 1461 of this division, and announcing the circumstances over the public address system.

NOTE

Authority cited: Sections 19420, 19440 and 19590, Business and Professions Code. Reference: Section 19401, Business and Professions Code.

HISTORY

1. Amendment filed 10-22-74; effective thirtieth day thereafter (Register 74, No. 43).

2. Amendment filed 12-12-80; effective thirtieth day thereafter (Register 80, No. 50).

3. Amendment filed 8-12-81 as an emergency; effective upon filing (Register 81, No. 33).

4. Order of Repeal of 8-12-81 emergency order filed 8-12-81 by OAL pursuant to Government Code Section 11349.6 (Register 81, No. 33).

5. Amendment filed 1-4-82; effective thirtieth day thereafter (Register 82, No. 2).

6. Amendment adding subsection (a) designator and new subsection (b) filed 5-7-2007; operative 6-6-2007 (Register 2007, No. 19).

7. Repealer of subsection (b) and new subsections (b)-(c) filed 10-30-2008; operative 11-29-2008 (Register 2008, No. 44).

9. Repealer and new section heading and section filed 7-12-2011; operative 8-11-2011 (Register 2011, No. 28).

8. Amendment of subsection (b)(1) and repealer of subsection (b)(2) filed 10-20-2009; operative 11-19-2009 (Register 2009, No. 43).

9. Repealer and new section heading and section filed 7-12-2011; operative 8-11-2011 (Register 2011, No. 28).

§1607. Classification of Horses.

The handicapper shall classify all horses he is requested to classify so that they may be eligible for handicaps or graded handicaps, and he may change the class of any horse. The name and class of all horses so classified shall be posted in the office of the racing secretary.

§1608. Posting Weight in Handicaps.

The handicapper must post the weight in all handicaps not later than 6 P.M. on the date set for publication.

§1609. Liability to Penalty.

For every handicap for which there is a penalty clause, the handicapper shall append to the weight the day and hour in which winners will be liable to a penalty, and no alterations shall be made in any handicap after publication except in case of omission through error of the name or weight of a horse duly entered, in which case, by permission of the stewards, the omission may be rectified by the handicapper.

§1610. Official Records for Eligibility.

Note • History

In determining the eligibility, penalty or penalties, and the right to allowance or allowances, the records of the racing secretary and the paymaster of purses shall be considered as official records, which records may be substantiated by the charts and records of the Daily Racing Form or any other service recognized by the Board.

NOTE

Authority cited: Sections 19420, 19440 and 19590, Business and Professions Code. Reference: Section 19401, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 11-1-95; operative 12-1-95 (Register 95, No. 44).

§1611. Claim for Allowance.

Any allowance must be claimed at the time of entry. Failure to claim an allowance or the fact that an allowance was not given a horse shall not be grounds for disqualification of such horse.

§1612. Claim of Preference.

No claim for preference in entry to any race shall be considered unless marked on the entry blank by the person authorized to make entry.

§1614. Allowance for Fillies and Mares.

Except in races where the conditions of the race expressly state to the contrary, fillies two years old are allowed three pounds and fillies and mares three years old and older are allowed five pounds between January 1st and August 31st, and are allowed three pounds between September 1st and December 31st.

§1615. Scale of Weights for Age.

The following scale of weights for age shall be carried if the conditions for a race do not specify otherwise:

§1616. Minimum Weights to Be Carried.

Note • History

Notwithstanding any other provision of this Division, the minimum weight to be carried in all overnight races for two-year-olds only, for three-year-olds only, and for four-year-olds and upward shall be 112 pounds subject to further sex and apprentice allowances. The minimum weight to be carried in all races except handicap and stakes races, shall be 103 pounds.

NOTE

Authority cited: Sections 19562 and 19590, Business and Professions Code. Reference: Sections 19562 and 19590, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

§1617. Improper Claim for Allowance.

No person shall claim at the time of entry a weight allowance for a horse for which such horse is not entitled. A claim to allowance for which a horse is not entitled is not a cause for disqualification unless carried out at scale.

§1618. When Penalties or Allowances Prohibited.

No horse shall be required to carry extra weight nor be allowed extra weight reduction nor be barred from entering any race due in whole to having been beaten in one or more races; provided that this shall not prohibit maiden allowances or allowances to horses that have not won within a specified time races of a specific value.

§1619. Apprentice Allowance.

Note • History

An apprentice jockey shall be allowed the following weight allowances in all Thoroughbred, Appaloosa, Arabian and Paint races:

(a) Ten pound allowance beginning with the first mount and continuing until the apprentice has ridden five winners.

(b) A seven pound allowance until the apprentice has ridden an additional 35 winners; and

(c) If an apprentice has ridden a total of 40 winners prior to the end of a period of one year from the date of riding their fifth winner, they shall have an allowance of five pounds until the end of that year.

(d) If after one year from the date of his or her fifth winning mount the apprentice has not ridden 40 winners, the applicable weight allowance shall continue for one more year or until the date of the 40th winner, whichever comes first.

An apprentice allowance may be waived with consent of the stewards.

NOTE

Authority cited: Section 19562, Business and Professions Code. Reference: Section 19562, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

2. Amendment of first paragraph and new subsections (a)-(d) filed 3-18-97; operative 4-17-97 (Register 97, No. 12).

§1620. No Penalty for Winning Certain Races at Fairs.

Note • History

A horse which wins a race at a fair race meeting in this State shall not be penalized for such winning in races run thereafter at any race meeting other than a fair race meeting if the net purse to such winning horse at such fair race is $2,750 or less. This rule shall not apply to a maiden allowance which maiden allowance shall be lost by the winning of any race.

NOTE

Authority cited: Sections 19440, 19562, Business and Professions Code. Reference: Sections 19401(a), (e), Business and Professions Code.

HISTORY

1. Amendment filed 4-12-79; effective thirtieth day thereafter (Register 79, No. 15).

§1621. Winnings.

Note • History

The winnings of a horse consist of its gross winnings. Winnings during the year shall include all prizes from the first of January preceding the time appointed for the start and include races in any country, and include walkover purses. Winning of a fixed sum means winning it in any one race unless otherwise specified in the conditions of the race. Foreign winnings shall be estimated on the basis of the normal rate of exchange on the day of winning. Winnings in Canada when such winnings are expressed in dollars shall not be considered as foreign winnings.

NOTE

Authority cited: Section 19562, Business and Professions Code. Reference: Section 19562, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1622. Winning of Fixed Sum. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1623. Foreign Winnings. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1624. Records of Foreign and Imported Horses.

The owner of any horse which has not previously raced at a recognized meeting in the United States or which has raced elsewhere, must furnish to the racing secretary prior to the entry of such horse to any race in this State, performance records of said horse's races during the past year showing where and when said horse did race, the distance, weight carried and said horse's finishing position and time. If such records are incomplete or unavailable, the owner or his representatives must submit an affidavit to such effect to the racing secretary. If such records or affidavit are not submitted, such horse shall be ineligible to start unless approval is first obtained from the Board.

§1625. Penalties and Allowances Not Cumulative.

Penalties and allowances are not cumulative unless so declared by the conditions of the race.

§1626. Refund of Fees.

If a stakes race is not run or declared or cancelled, stakes money and entrance money or fees shall be returned to the person contributing such stakes or entrance money. No refund of entrance or stakes money shall be refunded due solely to the death of a horse or his failure to start, or upon a finding by the stewards that the horse entered was ineligible to enter such stakes race or was ineligible to start in such race.

§1627. Declarations from Race Irrevocable.

The declaration of a horse from a race is irrevocable.

§1628. Declaration for Physical Disability.

The stewards may declare a horse out of a race when in the opinion of the Official Veterinarian or the Racing Veterinarian such horse cannot give his best efforts to win such race due to physical disability or other physical cause. The further entry to any race in this State of such horse shall not be accepted until the expiration of at least 48 hours from the time of declaration and until the said horse has been examined, and his physical condition approved for racing by the Official Veterinarian.

§1629. Penalty for Late Declaration.

No person other than the stewards may declare a horse out of any overnight race after the “scratch time” designated for such race by the stewards, and the starting of such horse is obligatory. Any person responsible for the failure of any horse to start in a race when the starting of such horse is obligatory may be disciplined by the stewards.

§1630. Declaration in Stakes Races.

Note • History

A declaration of a horse from a stakes race may be made until one hour before post time for that race after which time the starting of such horse is obligatory. Notwithstanding the foregoing, a request for the declaration of a horse from an overnight stakes race shall be made no later than the scratch time for overnight races and may only be granted with the approval of the Stewards.

NOTE

Authority cited: Sections 19420, 19440 and 19590, Business and Professions Code. Reference: Sections 19440, 19562, Business and Professions Code.

HISTORY

1. Amendment filed 10-11-90; operative 11-10-90 (Register 90, No. 45).

§1631. Walkover Races.

When a walkover is a result of arrangements by owners or trainers of horses engaged to race, no prize or stake need be given. If a walkover occurs any entrance money or stakes money shall go to the winner, but any added money of the association for such race need not be given.

§1632. Jockey's Riding Fee.

Note • History

(a) Winning jockey riding fees in the absence of a contract or special agreement are:

Gross Purse Winning Mount

$100,000 and up: 10% of Win Purse

50,000-99,999: 10% of Win Purse

25,000-49,999: 10% of Win Purse

15,000-24,999: 10% of Win Purse

10,000-14,999: 10% of Win Purse

5,000-9,999: 10% of Win Purse

3,500-4,999: 10% of Win Purse

2,000-3,499: 10% of Win Purse

1,500-1,999: 10% of Win Purse

(1) The purpose of subsection (a) is not to set a minimum or maximum fee. It provides a fee if the parties have not made a written agreement to the contrary.

(2) All fees pursuant to subsection (a) are payable in the lower purse range until the next higher purse range is reached, unless there is a written agreement to the contrary.

(b) Non-winning jockey riding fees are:

2nd 3rd Losing

Gross Purse Mount Mount Mount

$100,000 and up: 5% of Place Purse, 5% of Show Purse, $135.00

plus $10.00 plus $10.00

50,000-99,999: 5% of Place Purse, 5% of Show Purse, 110.00

plus $10.00 plus $10.00

25,000-49,999: 5% of Place Purse, 5% of Show Purse, 95.00

plus $10.00 plus $10.00

15,000-24,999: 5% of Place Purse, 5% of Show Purse, 85.00

plus $10.00 plus $10.00

10,000-14,999: 5% of Place Purse, 5% of Show Purse, 80.00

plus $10.00 plus $10.00

5,000-9,999: $90.00 $77.00 75.00

3,500-4,999: 80.00 70.00 65.00

2,000-3,499: 70.00 65.00 63.00

1,500-1,999: 60.00 58.00 58.00

(1) The purpose of subsection (b) is to set a minimum, but not a maximum riding fee. No non-winning jockey shall be paid less than the riding fee set forth in subsection (b).

(2) All fees pursuant to subsection (b) are payable in the lower purse range until the next higher purse range is reached unless there is a written agreement to the contrary. However, no such written agreement shall reduce the minimum required by subsection (b).

(c) A jockey's fee is considered earned when the jockey is weighed out by the clerk of scales. The fee shall not be considered earned if the jockey elects to take himself off of his mount. If there is a substitution of jockeys, no additional jockey fee or double jockey fee need be paid except when ordered by the stewards.

(d) In this rule “Win Purse” means the amount paid the winning horse less the fees paid by the owner to enter the horse in the race.

(e) If the parties agree on the fee to be paid the jockey, a contract or agreement in writing signed by the jockey or his agent and the owner or his authorized agent specifying the agreed upon fee if a winning mount, second place mount, third place mount and losing mount shall be delivered to the paymaster of purses before the running of the race in question. The paymaster of purses shall debit the owner's purse account under the contract or written agreement. If no contract or written agreement is submitted before the running of the race in question, the paymaster of purses shall debit the owner's purse account under the fee scale set forth in this rule.

(f) A jockey may not share in the fees of another jockey.

NOTE

Authority cited: Sections 19440, 19501 and 19562, Business and Professions Code. Reference: Sections 19401(a), 19401(e), 19420, 19440 and 19501, Business and Professions Code.

HISTORY

1. Amendment filed 8-15-74; effective thirtieth day thereafter (Register 74, No. 33).

2. Amendment filed 10-6-78; effective thirtieth day thereafter (Register 78, No. 40).

3. Amendment filed 6-8-79; effective thirtieth day thereafter (Register 79, No. 23).

4. Amendment filed 11-25-86; effective upon filing pursuant to Government Code Section 11346.2 (d) (Register 86, No. 48).

5. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

6. Amendment of subsections (a) and (d) and amendment of Note filed 2-28-2001; operative 2-28-2001 pursuant to Government Code section 11343.4 (Register 2001, No. 9).

7. Change without regulatory effect amending section and Note filed 1-10-2008 pursuant to section 100, title 1, California Code of Regulations (Register 2008, No. 2).

8. Amendment of subsections (a)-(b)(2) and Note filed 3-29-2010; operative 3-29-2010 pursuant to Government Code section 11343.4 (Register 2010, No. 14).

9. Change without regulatory effect amending subsection (b) filed 11-28-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 48).

§1633. Release of Certificates of Registration.

Note • History

(a) Any certificate of registration filed with the racing secretary to establish eligibility to enter a race shall be released only to:

(1) the trainer of record or;

(2) the owner(s) named in the certificate or;

(3) at the request of the owner, a person designated by the owner(s) in writing or;

(4) if unclaimed at the end of the meeting, to the Board.

(b) Under no circumstances shall any person remove and hold a certificate of registration:

(1) to prevent a horse from racing or;

(2) to remove a legal owner's name without authorization.

NOTE

Authority cited: Sections 19420, 19440 and 19562, Business and Professions Code. Reference: Sections 19460 and 19562, Business and Professions Code.

HISTORY

1. Amendment of section heading, text and new Note filed 4-5-94; operative 5-5-94 (Register 94, No. 14).

§1634. Claiming Option Entry.

Note • History

(a) At the time of entry into a claiming race, the owner may opt to declare a horse ineligible to be claimed provided:

(1) The horse has been laid off and has not started for a minimum of 180 days since its last race, and

(2) The horse is entered for a claiming price equal to or greater than the price at which it last started.

(b) Failure to declare the horse ineligible at the time of entry may not be remedied.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19408.2 and 19562, Business and Professions Code.

HISTORY

1. New section filed 8-21-2008; operative 9-20-2008 (Register 2008, No. 34).

Article 7. Claiming Races

§1650. Racing Interest Defined.

For the purposes of this article a racing interest is defined as any individual owner, or any partnership of owners, or any registered stable, but not including a lessee, which participates as an owning entity or nominator of a race horse. A licensed owner may participate in more than one racing interest.

§1651. Eligibility to Claim.

History

In claiming races any horse is subject to being claimed for its entered price by any racing interest, by any licensed horse owner, or by any person who has established his qualifications to claim by filing an application for license as horse owner and having been granted a certificate authorizing the claim. Such claim certificate shall not be issued until all conditions and qualifications for a horse owner's license have been met or completed.

HISTORY

1. Amendment filed 11-16-73; designated effective 1-1-74 (Register 73, No. 46).

§1652. Prohibited Actions with Respect to Claims.

History

No person shall:

(a) Enter into or offer to enter into any agreement to claim any horse unless all parties to the agreement are eligible to claim.

(b) Claim his own horse or cause his own horse to be claimed directly or indirectly for his own account.

(c) Attempt to prevent or prevent any racing interest from running a horse in any race for which it is entered or from claiming any horse in any claiming race.

(d) Make any agreement with any other person or racing interest for the protection of each other's horses in any claiming race.

(e) Make any loan agreement for the purpose of obtaining funds for the claim of any horse when a condition of such agreement is a lien on the horse to be claimed.

(f) Except with permission of the stewards, remove any horse which has been entered in a claiming race from the grounds of the association where it is entered to race, or fail or refuse to comply with any rule or any condition of the meeting for the purpose of avoiding or preventing a claim for such horse.

(g) Claim more than one horse for the account of any one racing interest from any one claiming race, nor, if an authorized agent representing more than one racing interest, file more than two separate claims on behalf of any of the racing interests he may represent.

(h) Offer any monetary or other reward to any pony boy, exercise boy, groom, stable employee or other licensee for information relative to the physical condition or merit of a horse, or provide information relative to the physical condition or merit of a horse, from the time such horse is entered in a claiming race until the expiration of time to make a claim on such horse in that claiming race.

HISTORY

1. Amendment filed 6-14-74 as an emergency; effective upon filing (Register 74, No. 24).

2. Certificate of Compliance filed 8-12-74 (Register 74, No. 33).

3. New subsection (h) filed 6-25-76; effective thirtieth day thereafter (Register 76, No. 26).

§1653. Responsibility for Prohibited Actions.

If a racing interest is comprised of more than one licensed owner, all owners comprising such racing interest are jointly and severally liable for any action of the racing interest.

§1654. Affidavit May Be Required.

The stewards may require any person or any racing interest, its members or authorized agent, making a claim for a horse in any claiming race to make an affidavit in writing that he is claiming said horse for his own account if an individual owner, for the account of the racing interest if comprised of more than one licensed owner, or for the claiming racing interest if an authorized agent, and that the claim is not being made for any other person.

§1655. Form and Deposit of Claim.

Note • History

(a) All claims shall be in writing on a form approved by the Board, and shall be sealed and deposited in the claim box at least 15 minutes before the post time of the race in which the horse to be claimed is entered.

(b) No money shall accompany a claim form. Any person or racing interest making a claim shall first have the amount of the claim on deposit with the association or the paymaster of purses at the meeting. The paymaster or other authorized official shall verify the amount required is on deposit and that the person submitting the claim is eligible to claim under Rule 1651 of this division by initialling or otherwise marking the claim envelope.

(c) The filing of a claim by depositing the claim form in the claim box constitutes a contract of purchase at the established price and under the rules for claiming.

NOTE

Authority cited: Section 19562, Business and Professions Code. Reference: Sections 19408.2 and 19562, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

2. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1656. Errors Which Invalidate Claim.

Note • History

A claim is invalid if the name of the horse to be claimed is erroneously spelled or not specified on the claim form, CHRB-11 (REV. 8/00) Agreement to Claim, which is hereby incorporated by reference; or if the claim form is not signed by an owner authorized to claim or a member of a racing interest authorized to claim or their properly registered authorized agent; or is not accompanied by a certification from the paymaster of purses that the amount of the claim and all applicable taxes is on deposit with the association or such paymaster of purses; or is deposited at a place other than that provided by the association; or is not deposited within the correct time; or does not specify the racing interest making the claim; or does not correctly specify the name of the new trainer, the claiming race number, or the date of the claiming race; or is otherwise so defective in any particular that the stewards cannot approve its validity; or fails to specify the designated claiming price.

NOTE

Authority cited: Sections 19420, 19440 and 19562, Business and Professions Code. Reference: Sections 19408.2 and 19562, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 10-16-2012; operative 11-15-2012 (Register 2012, No. 42).

§1657. Opening of Claim.

Note • History

After the horses in a claiming race have reached the post, the stewards or their delegate shall open and examine the claims but no information concerning such claims shall be divulged to anyone other than the authorized racing officials until the race has been run. Should more than one claim be filed for the same horse, the successful claimant shall be determined by lot in a manner specified by the stewards.

NOTE

Authority cited: Section 19562, Business and Professions Code. Reference: Sections 19408.2 and 19562, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1658. Vesting of Title to Claimed Horse.

Note • History

(a) Title to a horse which is claimed shall be vested in the successful claimant from the time the field has been dispatched from the starting gate and the horse becomes a starter; and said successful claimant be-- comes the owner of the horse whether it is sound or unsound, or injured during the race or after it. Only a horse which is officially a starter in the race may be claimed. A subsequent disqualification of the horse by order of the stewards or the Board shall have no effect upon the claim.

(b) The stewards shall void the claim if the horse suffers a fatality during the running of the race or before the horse is returned to be unsaddled.

(c) The claim shall be void if the race is called off, canceled, or declared no contest in accordance with Rule 1544 of this division.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Section 19562, Business and Professions Code.

HISTORY

1. New subsection (b) and new Note filed 11-22-2006; operative 12-22-2006 (Register 2006, No. 47).

2. Amendment of subsection (a), new subsection (b) and subsection relettering filed 10-4-2011; operative 11-3-2011 (Register 2011, No. 40).

§1659. Delivery of Claimed Horse.

A horse which has been claimed shall not be delivered by the original owner to the successful claimant until authorization is given by the stewards, and every horse so claimed shall run for the account of the racing interest in whose name it is entered for such race. No horse claimed out of a claiming race shall remain in the same stable under the management of its former owner or trainer.

§1660. Delivery of Certificates or Documents.

A proper transfer of certificate of registration or eligibility certificate shall be made by the stewards or the delegated racing official indicating transfer of ownership to the successful claimant. No person shall willfully refuse to surrender any document of ownership or other document required by the stewards for the purpose of avoiding or hindering the transfer of a successfully claimed horse to a successful claimant.

§1661. Warranty of Clear Title.

Every racing interest entering a horse in a claiming race does warrant that the title to said horse is free and clear of any existing claim or lien, either as mortgage, bill of sale, or lien of any kind, unless before entering such horse the written consent of the holder of the claim or lien has been filed with the stewards and the racing secretary and its entry approved by the stewards.

§1662. Sale or Transfer of Claimed Horse.

History

No horse claimed out of a claiming race shall be sold or transferred to any person for racing purposes within 30 days exclusive of the day such horse was claimed.

HISTORY

1. Amendment filed 6-14-74 as emergency; effective upon filing (Register 74, No. 24).

2. Certificate of Compliance filed 8-12-74 (Register 74, No. 33).

§1663. Entry of Claimed Horse.

Note • History

(a) A horse claimed out of a claiming race is eligible to race at any racing association in California immediately after being claimed. The horse is not eligible to start in a claiming race for 25 days after the date of the claim for less than 25% more than the amount for which it was claimed.

(b) If a claimed horse is entered in a claiming race within 25 days of being claimed:

(1) The horse that won the claiming race from which it was claimed shall start for at least 25 percent more than the amount for which it was claimed.

(2) A horse that did not win the claiming race from which it was claimed shall start for at least the same amount for which it was claimed.

(d) The provisions of subsection (a) of this rule do not apply to standardbred horses.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Section 19562, Business and Professions Code.

HISTORY

1. Amendment filed 6-14-74 as emergency; effective upon filing (Register 74, No. 24).

2. Certificate of Compliance filed 8-12-74 (Register 74, No. 33).

3. Amendment filed 9-13-90; operative 10-13-90 (Register 90, No. 43).

4. Editorial correction of printing error (Register 92, No. 24).

5. Editorial correction (Register 98, No. 21).

6. Amendment filed 5-19-98; operative 5-19-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 21).

7. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

8. Amendment of section and Note filed 8-24-2005; operative 8-24-2005 pursuant to Government Code section 11343.4 (Register 2005, No. 34).

9. Amendment of subsection (a), repealer and new subsections (b)-(b)(1) and new subsection (b)(2) filed 6-25-2012; operative 7-25-2012 (Register 2012, No. 26).

§1664. Entry of Mare in Foal in a Claiming Race.

Note • History

(a) A mare may not be entered in a claiming race when it is pregnant, unless before the time of entry the owner deposits with the racing secretary a signed agreement whereby the owner at the time of entry provides the successful claimant without cost, protest or fee of any kind, a valid stallion service certificate covering the breeding of the mare.

(b) A successful claimant of a mare may file with the Board a petition to rescind the claim within 30 days after the date of claim if the successful claimant finds the claimed mare is pregnant and the agreement to provide a stallion service certificate has not been deposited as required by this rule.

NOTE

HISTORY

1. New section filed 6-25-76; effective thirtieth day thereafter (Register 76, No. 26). For history of former section, see Register 73, No. 46.

2. Change without regulatory effect amending section and Note filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1665. Rescission of Claim.

Note • History

The Board may set aside and order rescission of a claim for any horse from a claiming race run in this State upon a showing that any party to the claim committed any prohibited action with respect to the claim or that the owner of the horse at the time of entry in the claiming race failed to comply with any requirement of this article regarding entry of a horse into a claiming race. Should the Board order a rescission of a claim it may also, in its discretion, make a further order for the costs of maintenance and care of the horse as it may deem appropriate. Any petition or action taken to rescind a claim shall be commenced no later than 30 days from the date the claim was made.

NOTE

HISTORY

1. New section filed 6-25-76; effective thirtieth day thereafter (Register 76, No. 26). For history of former section, see Register 73, No. 46.

§1666. Claim Certificate Forfeited. [Repealed]

History

HISTORY

1. Repealer filed 11-16-73; designated effective 1-1-74 (Register 73, No. 46).

§1667. Claims at California Fair Circuit.

Note • History

The Alameda County Fair, the Solano County Fair, the Sonoma County Fair, the San Joaquin County Fair, the Humboldt County Fair, the California State Fair, the San Mateo County Fair and the Fresno District Fair together are deemed to comprise the Northern California Fair Circuit. For the purposes of claiming the Northern California Fair Circuit shall be considered as one race meeting.

NOTE

Authority cited: Section 19562, Business and Professions Code. Reference: Sections 19408.2 and 19562, Business and Professions Code.

HISTORY

1. New section filed 6-14-74 as an emergency; effective upon filing (Register 74, No. 24). For history of former section, see Register 73, No. 46).

2. Certificate of Compliance filed 8-12-74 (Register 74, No. 33).

3. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1668. Claiming Races at Harness Meetings. [Repealed]

History

HISTORY

1. Repealer filed 11-16-73; designated effective 1-1-74 (Register 73, No. 46).

§1669. Sale, Transfer or Entry of Claimed Harness Horse. [Repealed]

History

HISTORY

1. Amendment filed 2-15-74; effective thirtieth day thereafter (Register 74, No. 7).

2. Repealer filed 6-14-74 as an emergency; effective upon filing (Register 74, No. 24).

3. Certificate of Compliance filed 8-12-74 (Register 74, No. 33).

Article 8. Running the Race

§1680. Jockeys and Drivers to Report.

Note • History

(a) Every jockey engaged to ride in a race shall report to the Jockey Room at least one hour before post time of the first race unless excused by the stewards. Every jockey shall weigh out at the appointed time. After reporting, a jockey shall not leave the Jockey Room except to ride in a race until all his or her engagements for the day have been fulfilled unless excused earlier by the stewards.

(b) Every driver engaged to drive in a race shall report to the Driver Room at least one hour before post time of their first race. After reporting, a driver shall not leave the Driver Room except to drive in a race until all his or her engagements for the day have been fulfilled unless excused earlier by the stewards.

NOTE

Authority cited: Section 19562, Business and Professions Code. Reference: Section 19562, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

2. Amendment of section heading, designation and amendment of subsection (a) and new subsection (b) filed 10-13-94; operative 11-14-94 (Register 94, No. 41).

§1681. Jockeys to Remain in Jockey Room. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1682. Weighing Out.

All jockeys taking part in a race must be weighed out by the clerk of scales no more than one hour preceding the time fixed for the race. Any overweight in excess of one pound shall be declared by the jockey to the clerk of scales, who shall have such overweight and any change to jockeys posted immediately for public information and announced over the public address system.

§1683. Maximum Overweight.

No horse shall carry more than two pounds overweight without consent of its owner, his agent, or his representative, but shall not carry more than seven pounds overweight in any race.

§1684. Items Included in Weight.

Note • History

A jockey's weight includes his riding clothing, saddle and pad. It shall not include the jockey's safety helmet, safety vest, whip or the horse's bridle.

NOTE

Authority cited: Sections 19481 and 19562, Business and Professions Code. Reference: Section 19481, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 10-26-93; operative 1-1-94 (Register 93, No. 44).

2. Change without regulatory effect amending section and Note filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

§1685. Equipment Requirement.

Note • History

(a) No bridle shall weigh more than two (2) pounds.

(b) Whips allowed for use in flat racing shall be unaltered from the original manufacturer; shall have shaft and flap (popper); shall weigh no more than 8 ounces and shall not be more than 30 inches in length.

(1) The minimum diameter of the shaft shall be 0.5 inches, with a smooth, padded contact area that has no protrusions or raised surface.

(c) The only allowed attachment to the shaft is the flap (popper), which shall not extend more than 1 inch beyond the end of the shaft.

(1) The flap (popper) shall have a width of not less than 1 inch, or more than 1.5 inches; shall have a minimum length of 7 inches; and a minimum circumference of 3 inches measured around the width. The flap (popper) shall have no reinforcements or additions beyond the end of the shaft, and no binding within 7 inches of the end of the shaft.

(2) The flap (popper) shall be folded over and sewn down each side. It shall have an inner layer consisting of memory foam, closed cell foam, or a similar shock-absorbing material, and an outer layer that is dark in color and made of a material that does not harden over time.

(d) All whips are subject to inspection and approval by the stewards.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19441.2 and 19481, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 4-15-93; operative 5-17-93 (Register 93, No. 16).

2. Amendment of section and Note filed 1-9-96; operative 2-8-96 (Register 96, No. 2).

3. Amendment filed 3-29-2010; operative 4-28-2010 (Register 2010, No. 14).

§1686. Responsibility for Weight.

The trainer and owner shall be responsible for the weight carried by the horse after the jockey has been weighed out for the race by the clerk of scales. The trainer or owner may substitute a jockey when the engaged jockey reports an overweight in excess of two pounds.

§1687. Deposit of Jockey Fee.

The minimum jockey mount fee for a losing mount in the race must be on deposit with the paymaster of purses, except for a jockey riding for his contract employer, prior to the time for weighing out, and failure to have such minimum fee on deposit is cause for disciplinary action and cause for the stewards to declare the horse for which such fee is to be deposited. The association assumes the obligation to advance the minimum jockey fee to the engaged jockey in the absence of a declaration of the horse from the race, and any such advanced fee is a lien upon the horse.

§1688. Use of Whips.

Note • History

(a) In all races where a jockey will not ride with a whip, an announcement shall be made over the public address system of such fact.

(b) Although the use of a whip is not required, any jockey who uses a whip during a race is prohibited from whipping a horse:

(1) on the head, flanks, or on any part of its body other than the shoulders or hind quarters;

(2) during the post parade except when necessary to control the horse;

(3) excessively or brutally causing welts or breaks in the skin;

(4) when the horse is clearly out of the race or has obtained its maximum placing; or

(5) persistently even though the horse is showing no response under the whip.

(1) showing horses the whip before hitting them;

(2) using the whip in rhythm with the horse's stride; and

(3) using the whip as an aid to maintain a horse running straight.

NOTE

Authority cited: Sections 19420, 19440 and 19562, Business and Professions Code. Reference: Sections 19440, 19481 and 19562, Business and Professions Code.

HISTORY

1. Amendment and new Note filed 6-4-93; operative 7-5-93 (Register 93, No. 23).

2. Change without regulatory effect amending Note filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

§1689. Safety Helmets Required.

Note • History

(a) A racing association, fair, or authorized training facility may not permit any person to be mounted on a horse on the racetrack, or be mounted in or riding on a sulky, or work as a member of the gate crew unless the person is wearing a properly fastened safety helmet.

(1) For purposes of this regulation, a member of the gate crew means any person licensed as an assistant starter or any person who handles a horse at the starting gate.

(2) For purposes of this regulation, “racetrack” means the surface of the racing or training track.

(b) Safety helmets required under subsection (a) of this rule shall comply with one of the following product standards:

(1) American Society for Testing Materials (ASTM) standard F-1163-04a, or

(2) European Standard (EN) 1384:1996, or

(3) Australian and New Zealand Racing Boards (AS/NZS) standard 3838:2006, or

(4) Snell Memorial Foundation (Snell) Standard for Protective Headgear H2000.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19481 and 19460, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 7-26-94; operative 8-25-94 (Register 94, No. 30).

2. Change without regulatory effect amending Note filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

3. Amendment filed 8-16-2010; operative 9-15-2010 (Register 2010, No. 34).

§1689.1. Safety Vest Required.

Note • History

(a) No jockey or apprentice jockey shall ride in a race unless wearing a safety vest, nor shall a jockey, apprentice jockey, or exercise rider, train or exercise any horse on the grounds of a racing association, racing fair, or authorized training facility unless wearing a safety vest.

(b) No driver shall be mounted in or riding on a sulky, nor shall an assistant starter handle any horse on the grounds of a racing association, racing fair, or authorized training facility unless wearing a safety vest.

(1) Provide a minimum of shock absorbing protection to the upper body, as evidenced by a label indicating that the safety vest meets one of the following standards:

(A) “Level 1” under the British Equestrian Trade Association (BETA) 2009 Standard for Horse Riders' Body and Shoulder Protectors, or

(B) American Society for Testing Materials (ASTM) standard F2681-08, or

(C) Shoe and Allied Trades Research Association (SATRA) (1999) Jockey Vest Standard, Document M6 Issue 3, Australian Racing Board (ARB) 3.

(2) Cover the entire torso from the collarbone to a line level with the hip bone allowing a vee opening in the front neckline;

(3) Weigh no more than 2 pounds.

(4) No vest shall be altered from its original manufactured design. This includes, but is not limited to:

(A) Cutting the vest to customize fit.

(B) Removal of manufacturer's labels.

(d) The weight of a safety vest shall not be included in the weight of a jockey or apprentice jockey when weighing out or weighing in or when adding weight to make up a weight assignment.

NOTE

Authority cited: Sections 19420, 19481 and 19562, Business and Professions Code. Reference: Section 19481, Business and Professions Code.

HISTORY

1. New section filed 10-26-93; operative 1-1-94 (Register 93, No. 44).

2. Change without regulatory effect amending subsections (a) and (b), repealer of subsections (c) and (d) and amendment of Note filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

3. Amendment of subsections (a) and (a)(3) and amendment of Note filed 2-15-2001; operative 2-15-2001 pursuant to Government Code section 11343.4 (Register 2001, No. 7).

4. Amendment filed 6-9-2010; operative 7-9-2010 (Register 2010, No. 24).

§1690. Prohibited Equipment.

No spurs or steels, twitches, war bridles, or any other appliances other than regular approved racing equipment shall be used on any horse except with express permission of the stewards, who shall report any such permitted use to the Board with the reasons therefor.

§1690.1. Toe Grabs Prohibited.

Note • History

(a) Toe grabs with a height greater than four millimeters, worn on the front shoes of thoroughbred horses while racing, are prohibited.

NOTE

Authority cited: Sections 19420 and 19562, Business and Professions Code. Reference: Section 19481, Business and Professions Code.

HISTORY

1. New section filed 1-9-2006; operative 2-8-2006 (Register 2006, No. 2).

§1691. Colors, Number, and Advertising.

Note • History

(a) A jockey shall be properly attired for riding in a race, wearing the colors of the owner of the horse he or she is riding, and exhibiting a number on the saddlecloth that corresponds to the number of the horse on the official program.

(b) Advertising, including logos, labels, or product endorsements shall be permitted on jockey attire, owner silks, and track saddlecloths from the point of weighing out for a race to weighing in after its conclusion.

(c) A copy of the advertisement signage must be submitted for review, for compliance with the provisions of this rule, to the stewards at the track where the advertisement will be worn before the horse is entered to race.

(d) Advertisement on jockey clothing is limited to:

(1) A maximum of 32 square inches on each thigh of the pants on the outer sides between the hip and knee and 10 square inches on the rear at the base of the spine.

(2) A maximum of 24 square inches on boots and leggings on the outside of each nearest the top of the boot.

(3) A maximum of 6 square inches on the front center in the neck area.

(e) Advertisement on owner silks is limited to:

(1) A maximum of 32 square inches on the chest area.

(2) A maximum of 1.5 inches by 4 inches on each collar.

(f) Advertisement on track saddlecloths is not limited to size or placement.

NOTE

Authority: Sections 19420 and 19562, Business and Professions Code. Reference: Sections 19420 and 19562, Business and Professions Code.

HISTORY

1. Amendment of newly designated subsection (a) and adoption of subsection (b) and Note filed 7-9-92; operative 8-10-92 (Register 92, No. 28).

2. Amendment of section heading and subsections (a) and (b) and new subsections (c)-(f) filed 2-13-2002; operative 2-13-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 7).

§1692. Requirements for Horse, Trainer and Jockey.

Note • History

Each horse starting in a race must be qualified for that race, ready to run, in physical condition to exert its best effort, and entered with the intention to win. Each trainer having the care or custody of such horse warrants it is fit to participate when brought to the paddock. Such trainers shall be present at the paddock to supervise the saddling of the horse and shall give instructions to assure the best performance of the horse.

Jockeys going to the post in any race shall race their mount to win, shall give their best efforts in the race to their mount and the public, and shall ride their mount out until the finish line is passed.

No person shall, or attempt to, instruct, induce or otherwise solicit any jockey or trainer to ride or perform in a manner contrary to this rule.

NOTE

Authority cited: Section 19440, Business and Professions Code. Reference: Section 19440, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 7-23-97; operative 8-22-97 (Register 97, No. 30).

§1693. Control of Horses and Jockeys on Entering the Track.

The horses are under the control of the starter from the time they enter the track until dispatched at the start of the race. After entry on the track or race course, the horses are not entitled to further care from their attendants, except in case of accident the starter may permit the jockeys to dismount and the horses to be cared for during the delay; otherwise, no jockey shall dismount until after the finish of the race. The horse must be started by the jockey, but with the sanction of the starter it may be led to its position in the gate by an assistant starter. With the sanction of the starter an assistant starter may enter the gate to handle a fractious horse. No assistant starter shall in any way impede, whether intentionally or otherwise, a fair start.

§1694. Parade of Horses.

All horses shall parade, carrying their weight and wearing their equipment, from the paddock to the starting post. Any horse failing to do so may be declared by the stewards. No lead pony leading a horse in the parade shall be ridden so as to obstruct the public's view of any horse which is to race, except with the permission of the stewards or their delegate who shall report the granting of such permission and the reasons therefor to the Board.

§1695. To the Post.

After entering the race course track, not more than twelve minutes shall be consumed in the parade of horses to the post except in cases of unavoidable delay. After passing the stands once, the horses may break formation and canter, warm up or go as they please to the post. When the horses have reached the post they shall promptly be placed in their starting gate stalls in the order of their post positions, unless otherwise ordered by the starter. The starter shall see that the horses are placed in their proper positions without unnecessary delay. Causes for any delay in the start shall immediately be reported to the stewards.

§1696. The Start.

History

Except in cases of emergency, every horse shall be started from an approved starting gate by the starter. If the doors at the front of the starting gate stall should not open due to a mechanical failure or a malfunction of the starting gate, when the starter dispatches the field, or should a horse not be in the starting gate stall when the field is dispatched, thereby causing such horse to be left, the starter shall immediately report such fact to the stewards, and the stewards may declare such left horse to be a non-starter.

HISTORY

1. Amendment filed 4-10-75; effective thirtieth day thereafter (Register 75, No. 15).

§1697. Declaration of Horse by Stewards.

After entering the race course track for the post, a horse shall only be declared by the stewards when they consider such horse unfit to run in the race. No horse determined to be a starter shall be excused or declared from the race. Any horse which breaks through the gate or runs off without effective control shall be examined by the racing veterinarian and determined to be fit to compete before being permitted to start.

§1698. Failure to Start and Run.

No person shall willfully or negligently cause any horse whose starting is obligatory to fail to start and run its race.

§1699. Riding Rules.

Note • History

During the running of the race:

(a) A leading horse is entitled to any part of the course but when another horse is attempting to pass in a clear opening the leading horse shall not cross over so as to compel the passing horse to shorten its stride.

(b) A horse shall not interfere with or cause any other horse to lose stride, ground or position in a part of the race where the horse loses the opportunity to place where it might be reasonably expected to finish.

(c) A horse which interferes with another and thereby causes any other horse to lose stride, ground or position, when such other horse is not at fault and when such interference occurs in a part of the race where the horse interfered with loses the opportunity to place where it might, in the opinion of the Stewards, be reasonably expected to finish, may be disqualified and placed behind the horse so interfered with.

(d) Jockeys shall not ride carelessly or willfully so as to permit their mount to interfere with or impede any other horse.

(e) Jockeys shall not willfully strike or strike at another horse or jockey so as to impede, interfere with, intimidate, or injure.

(f) If a jockey rides in a manner contrary to this rule, the mount may be disqualified and the jockey may be suspended or otherwise disciplined by the Stewards.

NOTE

Authority cited: Section 19562, Business and Professions Code. Reference: Sections 19461 and 19562, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

2. Amendment filed 8-13-97; operative 9-12-97 (Register 97, No. 33).

§1700. Returning to Finish After the Race.

A jockey, after the race, shall return his horse to the finish and upon returning he shall salute the stewards, and receive the permission of the stewards or their delegate to dismount. The jockey shall present himself with his equipment for weighing in immediately after so dismounting. The stewards may authorize any jockey and horse to participate in a ceremony or other approved special activity provided that such ceremony or special activity is under the observation of the stewards or other racing officials.

§1701. Weighing In.

A jockey shall weigh in after the finish of the race and he shall not weigh less than one pound of his proper weight nor two pounds over his proper weight except that the stewards may take into account any excess weight caused by rain or mud. The stewards may disqualify any horse whose jockey weighs in at less than one pound of his proper weight, and shall discipline the persons responsible therefor.

§1702. Claim of Interference or Other Foul.

A jockey, trainer or owner of a horse, who has reasonable grounds to believe that his horse was interfered with or impeded or otherwise hindered during the running of the race, or that any riding rule was violated by any other jockey or horse during the running of the race, may immediately make a claim of interference or foul with the clerk of scales, the stewards or their delegate before the race has been declared official. The stewards may thereupon hold an inquiry into the running of the race. No person shall make any claim of interference or foul knowing the same to be inaccurate, false or untruthfull.

§1703. Jockey Excused from Weighing In.

Should any jockey be unable to present himself for weighing in due to accident, injury, or other good cause, the stewards may excuse such jockey.

§1704. Official Order of Finish.

Note • History

When satisfied the order of finish is correct, all timely objections have been addressed, and the race has been properly run under the rules of the Board, the stewards shall order the official order of finish confirmed and the official sign posted for the race. The decision of the stewards as to the official order of finish for pari-mutuel wagering purposes is final, and no subsequent action may set aside or alter the official order of finish for the purposes of pari-mutuel wagering.

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Sections 19420 and 19440, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 9-1-94; operative 10-3-94 (Register 94, No. 35).

2. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

Article 9. Harness Racing Rules

§1720. Harness Racing Rules.

Note • History

The harness racing rules in this article shall apply to harness races in addition to other rules of this division.

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Section 19440, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

2. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1721. Driving Rules.

No driver during a race shall:

(a) Change either to the right or left during any part of the race when another horse is so near that in altering the position of his horse he compels the horse behind him to shorten his stride, or causes the driver of such other horse to pull such horse out of his stride.

(b) Jostle, strike, hook wheels, or interfere with another horse or driver.

(c) Cross sharply in front of a horse or cross over in front of a field of horses in a reckless manner, endangering other drivers or horses.

(d) Swerve in or out or pull up quickly.

(e) Crowd a horse or driver by putting a wheel under him.

(f) Carry a horse out or sit down in front of him, take up abruptly in front of other horses so as to cause confusion or interference among the trailing horses, or do any other act which constitutes what is popularly known as “helping.”

(g) Let a horse pass inside needlessly.

(h) Lay off a normal pace and leave a hole when it is well within the horse's capacity to keep the hole closed.

(i) Commit any act which shall impede the progress of another horse or cause him to break.

(j) Change course after selecting a position in the home stretch, or bear in or out, in such manner as to interfere with another horse or cause him to change stride or break.

(k) Drive in a careless or reckless manner.

(l) Drive or cause to be driven any unreasonably slow quarters or fractions.

(m) Fail to use his best efforts to win.

(n) Whip his horse under the arch of the sulky.

(o) Drive in such manner as to obtain for himself an unfair advantage.

§1722. Breaking.

Should any horse break from its gait in either trotting or pacing, the driver shall:

(a) Where clearance exists, take such horse to the outside.

(b) Attempt to pull the horse to its gait.

§1723. Lapped-on Break.

The driver of a horse which has broken from its gait who has complied with the breaking rule shall not be set back unless a contending horse on his gait is lapped on the hind quarter of the breaking horse at the finish.

§1724. Driver Must Be Mounted.

A driver must be mounted in his sulky during the race, and if not so mounted at the finish he shall be disqualified.

§1725. Equipment.

All equipment, hobbles, head-poles, whips and other tack and equipment used in any race is subject to the approval of the stewards who may refuse a change in such equipment or require the use of such equipment as may be deemed proper.

§1726. Wheel Discs.

Unless the stewards permit otherwise, every sulky used in a race shall be equipped with plastic wheel discs on the inside and outside of each wheel; such discs shall be either clear or solid pastel color.

§1727. Starting Gate to Be Used.

A mobile starting gate shall be used to start all harness races. The starting gate so used shall be equipped with a communication system permitting communication between the starter and the stewards, and shall be otherwise maintained and equipped as may be required by the Board or the stewards.

§1728. Starter's Control.

The starter shall have control over the horses from the formation of the parade until he gives the word “go.” The starter shall report to the stewards any misconduct or violation on the part of a driver and may order any unmanageable or disabled horse declared from the race with concurrence of the stewards.

§1729. Starting the Race.

History

The starter shall bring the horses to the starting gate as near one-quarter of a mile from the starting point as the track may permit, and shall endeavor to get all horses away in position and on gait. If a horse refuses to come to the gate, is unmanageable or liable to cause an accident or injury to any other horse or to a driver it may be declared and all monies wagered on that horse shall be refunded.

HISTORY

1. Amendment filed 6-25-76; effective thirtieth day thereafter (Register 76, No. 26).

§1730. Recalls.

History

The starter may sound a recall only for the following reasons:

(a) A horse scores ahead of the gate.

(b) There is interference prior to the word “Go” being given.

(d) A horse falls before the word “Go” is given.

There shall be no recall after the word “Go” has been given and any horse, regardless of his position or an accident, shall be deemed a starter from the time he entered into the starter's control unless dismissed by the starter.

HISTORY

1. Amendment filed 6-25-76; effective thirtieth day thereafter (Register 76, No. 26).

§1731. Driver Infractions.

No driver shall:

(a) Delay the start.

(b) Fail to obey the instructions of the starter.

(d) Come to the starting gate out of position.

(e) Cross over before reaching the starting point.

(f) Interfere with another driver or horse during the start.

(g) Fail to come up into position.

§1732. Racing Costume Required.

Note • History

(a) A driver shall be attired in his or her own driving colors or the colors of the owners of the horse, white driving trousers with leg clips and a safety helmet, when driving in any race.

(b) No form of advertising including logos, labels, or product endorsements shall be permitted on a driver's attire during the running of a race.

NOTE

Authority cited: Sections 19420 and 19562, Business and Professions Code. Reference: Sections 19420 and 19562, Business and Professions Code.

HISTORY

1. Amendment and designation of subsection (a), new subsection (b) and Note filed 6-9-92; operative 7-9-92 (Register 92, No. 24).

§1733. Whips.

Note • History

Whips shall not exceed four feet plus a snapper not longer than six inches. Whips shall be in good condition and are subject to inspection by the officials at any time.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Section 19563, Business and Professions Code.

HISTORY

1. Amendment filed 2-8-93; operative 3-10-93 (Register 93, No. 7).

2. Amendment filed 10-16-2006; operative 11-15-2006 (Register 2006, No. 42).

§1734. Whipping.

Note • History

No driver shall use unreasonable or unnecessary force in the whipping of a horse, nor whip any horse causing visible injury, nor whip any horse about the head, nor whip any horse after the finish line has been crossed except when necessary to control the horse.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Section 19563, Business and Professions Code.

HISTORY

1. Amendment filed 2-8-93; operative 3-10-93 (Register 93, No. 7).

§1735. Driver's Minimum Fee.

Note • History

(a) Driver's fees in the absence of a contract or special agreement are $20.00 or 5% of the purse earned, whichever is greater.

(b) The purpose of this rule is not to set a minimum or maximum fee. It provides a fee if the parties have not made a written agreement to the contrary.

(c) A driver's fee is considered earned when the horse he has been engaged to drive leaves the paddock for the post. If there is a substitution of drivers after the fee is earned, no additional driver fee or double driver fee need be paid except when ordered by the stewards.

(d) In this rule “Purse Earned” means the amount paid the winning horse less the fees paid by the owner to enter the horse in the race.

(e) If the parties agree on the fee to be paid the driver, a contract or agreement in writing signed by the driver or his agent and the owner or his authorized agent specifying the agreed upon fee shall be delivered to the paymaster of purses before the running of the race in question. The paymaster of purses shall debit the owner's purse account under the contract or written agreement. If no contract or written agreement is submitted before the running of the race in question, the paymaster of purses shall debit the owner's purse account under the fee scale set forth in this rule.

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Sections 19440 and 19562, Business and Professions Code.

HISTORY

1. Amendment filed 8-15-74; effective thirtieth day thereafter (Register 74, No. 33).

2. Change without regulatory effect amending section and adding new Note filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1736. Selecting Positions of Entered Horses for Harness Races.

Note • History

Notwithstanding Rule 1598 of this division, post positions of entered horses in a harness race are determined by lot unless assigned under the conditions of the race.

NOTE

HISTORY

1. New section filed 6-25-76; effective thirtieth day thereafter (Register 76, No. 26).

2. Change without regulatory effect amending section filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

3. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

Article 10. Quarter Horse Racing Rules

§1740. Quarter Horse Rules.

Note • History

The quarter horse racing rules in this article shall apply to quarter horse races in addition to other rules in this division.

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Section 19562, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

2. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1741. Timing of Race.

Quarter horse races shall be started from a gate and shall be timed from the post at which the starting gate is placed from the time at which the starting gate stall doors are opened.

§1742. Apprentice Allowance.

No quarter horse racing association is required to grant an apprentice allowance for any race.

§1743. Thoroughbred and Appaloosa Horses Competing in Quarter Horse Races.

Note • History

a) Thoroughbred and Appaloosa horses may be entered in Quarter Horse races under the following conditions:

1) Such races are held at Quarter Horse meets, mixed breed meets, and fair meets.

2) Such races do not exceed a distance of five (5) furlongs.

3) A Quarter Horse race in which Thoroughbreds and Appaloosas compete shall be designated as a Quarter Horse race.

4) Thoroughbreds shall constitute less than half the number of horses in such races.

5) A maiden Thoroughbred or a maiden Appaloosa competing in and winning a Quarter Horse race loses its maiden status for all future races regardless of the value of the purse to the winner.

6) A Thoroughbred or an Appaloosa competing in and winning a Quarter Horse race at a Quarter Horse race meeting, fair or mixed race meeting shall not be penalized for winning in races run thereafter at any Thoroughbred or mixed race meeting if the net winning purse to such horse is $2,750 or less.

7) No claim for an apprentice allowance may be made for a Thoroughbred or an Appaloosa competing in a Quarter Horse race unless the conditions for the race provide for such an allowance for all competing horses in the race.

8) No Thoroughbred or Appaloosa will run in a Quarter Horse race unless the past performance of the Thoroughbred or Appaloosa is published in a recognized racing publication or in the official program.

9) The Racing Secretary shall provide information to recognized racing publications or the official program about the past performance of Thoroughbred and Appaloosa horses who have competed in previous Quarter Horse races.

b) The association which conducts the meeting shall, as provided in subdivision (b) of Business and Professions Code Section 19613, pay to the horsemen's organization representing Thoroughbred horsemen an amount for administrative expense and services rendered to horsemen equivalent to 1.5 percent of the amount available to Thoroughbred horses for purses, and an amount for a pension plan for backstretch personnel to be administered by the horsemen's organization equivalent to an additional 1 percent of the amount available to the Thoroughbred horses for purses. The remainder of the portion shall be distributed as purses.

c) Any redistributable money paid to the Board pursuant to Business and Professions Code Section 19641 which is paid to a welfare fund established by a horsemen's organization from races with both Thoroughbred and Quarter Horses shall be divided pro rata between the two welfare funds based on the number of Thoroughbreds and Quarter Horses in the race.

d) Notwithstanding the composition of the qualifying field, payments made to horsemen's associations as specified in Business and Professions Code Section 19533(b) shall be made on the proportional basis of the horses officially starting the race.

NOTE

Authority: Sections 19420, 19440 and 19533, Business and Professions Code. Reference: Sections 19420, 19440 and 19533, Business and Professions Code.

HISTORY

1. New section filed 10-23-91; operative 11-22-91 (Register 92, No. 5).

2. Repealer and new section filed 3-30-93; operative 3-30-93 (Register 93, No. 14).

Article 10.5. Mule Racing

§1747. Mule Racing Rules.

Note • History

The mule racing rules in this article shall apply to mule racing in addition to other rules in this division.

NOTE

Authority cited: Sections 19440 and 19703, Business and Professions Code. Reference: Sections 19440 and 19703, Business and Professions Code.

HISTORY

1. New article 10.5 (sections 1747-1748) and section filed 10-25-2007; operative 11-24-2007 (Register 2007, No. 43).

§1748. Shoeing Mules.

Note • History

A mule that is not shod is eligible to start in a race.

NOTE

Authority cited: Sections 19420 and 19703, Business and Professions Code. Reference: Section 19703, Business and Professions Code.

HISTORY

1. New section filed 10-25-2007; operative 11-24-2007 (Register 2007, No. 43).

Article 11. Objections and Protests; Appeals

§1750. Stewards to Make Inquiry.

Note • History

The stewards shall make diligent inquiry into any objection or protest made either upon their own motion, by any racing official, or by any other person empowered by this division to make such protest or objection.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Section 19562, Business and Professions Code.

HISTORY

1. Amendment of section heading and section and new Note filed 1-6-94; operative 2-7-94 (Register 94, No. 1).

§1751. Objections.

Objections to the participation of a horse entered in any race shall be made to the stewards and confirmed in writing by the objector. An objection to a horse entered in a race shall be made not later than one hour before the scheduled post time of the race in which such horse is entered, except that the stewards upon their own motion may consider an objection until such time as the horse becomes a starter.

§1752. Grounds for Objection.

Note • History

An objection to a horse which is entered to race shall be made on the following grounds or reasons:

(a) A misstatement, error or omission in the entry under which a horse is to run.

(b) That the horse which is entered to run is not the horse it is represented to be at the time of entry, or that the age is erroneously given.

(c) That the horse is not qualified to enter under the conditions specified for the race, or that the allowances are improperly claimed or not entitled the horse, or that the weight to be carried is incorrect under the conditions of the race.

(d) That the horse is owned in whole or in part by a person ineligible to participate in racing or otherwise ineligible to own a race horse as provided in this Division.

(e) That the horse was entered without regard to an existing lien as otherwise prohibited in this Division.

NOTE

Authority cited: Sections 19420, 19440 and 19562, Business and Professions Code. Reference: Sections 19420, 19440 and 19562, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending subsections (d) and (e) and adding new Note filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

§1753. Horse Subject to Objection Ineligible to Start.

The stewards may declare from the race any horse which is the subject of an objection if they have reasonable cause to believe that the objection is valid.

§1754. Protests.

Note • History

A protest against any horse which has started in a race, shall be made to the stewards in writing, signed by the protestor, no later than seventy-two (72) hours after the race is declared official excluding non-racing days of the meeting. If the incident the protest is based upon occurs within the last two (2) days of the race meeting, the protest may be filed with the Executive Director of the Board no later than seventy-two (72) hours after the race is declared official excluding Saturdays, Sundays or official holidays. Upon receipt of the protest the Executive Director will assign the protest to an active board of stewards. Protests shall state the specific reason or reasons in such detail to establish probable cause for the protest.

NOTE

Authority cited: Sections 19420, 19440 and 19562, Business and Professions Code. Reference: Sections 19420, 19440 and 19562, Business and Professions Code.

HISTORY

1. Amendment filed 9-18-95; operative 10-18-95 (Register 95, No. 38).

§1755. Grounds for Protest.

Note • History

A protest to the stewards may be made on any of the following grounds:

(a) Any ground for objection as set forth in this Article.

(b) The official order of finish, as determined by the stewards, was incorrectly posted.

(c) A jockey, driver, trainer or owner of a horse which started in the race was ineligible to participate in racing as provided in this Division.

(d) The weight carried by a horse was improper, by reason of fraud or willful misconduct.

(e) An unfair advantage was gained in violation of the rules.

NOTE

Authority cited: Sections 19420, 19440 and 19562, Business and Professions Code. Reference: Sections 19420, 19440 and 19562, Business and Professions Code.

HISTORY

1. Amendment filed 9-18-95; operative 10-18-95 (Register 95, No. 38).

§1756. Persons Empowered to File Objection or Protest.

A jockey, driver, trainer or owner of a horse which is entered for or is a starter in a race is empowered to file an objection or protest against any other horse in such race upon the grounds set forth in this article for objections and protests.

§1757. No Limitation on Time to File When Fraud Alleged.

Notwithstanding any other provision in this article, the time limitation on the filing of protests shall not apply in any case in which fraud or willful misconduct is alleged provided that the stewards are satisfied that the allegations are bonafide and susceptible of verification.

§1758. Inaccurate Protest.

No person shall file any objection or protest knowing the same to be inaccurate, false, or untruthful.

§1759. Horse to Be Disqualified on Valid Protest.

If a protest against a horse which has won or which has placed in any race is declared valid, that horse may be disqualified and the other horses in the race are entitled to places in the order in which they finished. A horse so disqualified is a starter in the said race and may be placed last in the order of finish, or behind a horse interfered with.

§1760. Purse Award or Prize to Be Withheld.

The stewards or the Board may order any purse, award or prize for any race withheld from distribution pending the determination of any protest; and in the event any purse, award or prize has been distributed to an owner or for a horse which by reason of a protest or other reason is disqualified or determined to be not entitled to such purse, award or prize, the stewards or the Board may order such purse, award or prize returned and redistributed to the rightful owner or horse. Any person who fails to comply with an order to return any purse, award or prize erroneously distributed shall be suspended until its return.

§1761. Appeal from Decision of Stewards.

Note • History

(a) From every decision of the stewards, except a decision concerning the disqualification of a horse due to a foul or a riding or driving infraction, an appeal may be made to the Board.

(b) Appeals shall be made in writing, stating the reason or reasons for the appeal, and shall be signed by the appellant, appellant's attorney, or appellant's representative. Appeals shall be received by a Board employee at any of its offices, not later than seventy-two (72) hours from the date of the decision of the stewards unless the Board for good cause extends the time for filing.

(c) An appeal shall not affect a decision of the stewards until the appeal has been sustained or dismissed or a stay order issued by the Chairman.

NOTE

Authority cited: Sections 19420, 19440 and 19562, Business and Professions Code. Reference: Section 19517, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 3-3-94; operative 4-4-94 (Register 94, No. 9).

2. Amendment of section and Note filed 12-13-95; operative 1-12-96 (Register 95, No. 50).

§1762. Temporary Stay Order.

Note • History

(a) The Executive Director upon the direction of the Chairman, or in the absence of the Chairman any Commissioner, may issue a temporary stay order to stay execution of any ruling, order or decision of the stewards, other than a stay of a decision pertaining to the finish of a race for pari-mutuel pool distribution.

(b) An application for a temporary stay pending a hearing shall include facts and reasons to justify the issuance of the stay. Applications for a temporary stay order shall be filed with any office of the Board.

(c) The granting of a temporary stay order carries no presumption that the stayed decision of the stewards is or may be invalid.

(d) A temporary stay order may be dissolved at any time by order of the Chairman or his designee.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19420 and 19440, Business and Professions Code.

HISTORY

1. Amendment filed 10-6-78; effective thirtieth day thereafter (Register 78, No. 40).

2. Change without regulatory effect amending section and adopting Note filed 6-7-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 23).

3. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1763. Decision upon Appeal.

The Board shall issue its decision upon any appeal in writing and such decision is subject to review by the court having jurisdiction.

§1764. Appearance at Hearing upon Appeal.

The Board shall notify the appellant, the stewards and all licensees or other persons affected by decision under appeal of the date, time and location of its hearing in the matter. The burden shall be on the appellant to prove the facts necessary to sustain the appeal.

§1765. Complaints.

Note • History

Complaints filed with the stewards, in writing by any person, which allege misconduct or a violation of this division or the Horse Racing Law by any licensee or which allege or indicate improper activities or detrimental conduct on the part of any licensee, shall be referred to the Board and investigated by the Board or its investigators when there is sufficient reason to believe that such complaints are bonafide and subject to verification.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Section 19562, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 1-6-94; operative 2-7-94 (Register 94, No. 1).

§1766. Designated Races.

Note • History

(a) The Board of Stewards appointed for a race meeting shall, immediately prior to the commencement of that meeting, designate the stakes, futurities or futurity trials or other races in which a jockey or a driver who is under suspension for ten days or less for a riding or driving infraction will be permitted to compete, notwithstanding the fact that such jockey or driver is technically under suspension at the time the designated race is to be run.

(b) Official rulings for riding or driving infractions of ten days or less shall state: “The term of this suspension shall not prohibit participation in designated races in California.” However, the Board of Stewards may prohibit a jockey or a driver from participating in designated races if such jockey or driver has previously been suspended at least twice during the race meeting specified in subsection (a) of this rule.

(c) Prior to the commencement of a meeting, a listing of the races designated in accordance with subsection (a) of this rule shall be submitted in writing to the Board. A copy of the list of designated races shall be posted in the Jockey or Driver's Room, and any other such place deemed appropriate by the stewards.

(d) A suspended jockey or driver must be named at time of entry to participate in any designated race.

(e) A day in which a suspended jockey or driver participates in one designated race in California shall count as a suspension day.

(f) A day in which a suspended jockey or driver participates in more than one designated race in California shall not count as a suspension day.

(g) Notwithstanding the above, a day in which a jockey or a driver participates in one or more designated races in another jurisdiction while under suspension in California shall not count as a suspension day.

(h) A suspended jockey or driver who participates in more than one designated race under subsection (f) of this regulation, or in one or more designated race(s) under subsection (g) of this regulation, shall complete his or her term of suspension on an equivalent day of the week following the day on which the jockey or driver participated in the designated race(s).

NOTE

Authority cited: Section 19460, Business and Professions Code. Reference:Sections 19460, 19461 and 19520, Business and Professions Code.

HISTORY

1. New section filed 3-8-93; operative 4-7-93 (Register 93, No. 11).

2. Amendment of subsections (a)-(b) and new subsection (h) filed 9-9-2010; operative 10-9-2010 (Register 2010, No. 37).

Article 12. Colors, Stable Names, Agents

§1780. Registration of Colors.

Note • History

Racing colors shall be registered with the clerk of the course when registering a horse within an inclosure, and authority for the use of such colors must be sanctioned by the Board. No colors may bear any symbols or markings which could be interpreted as for advertising purposes. Any difference between claimants to the right of particular colors shall be decided by the stewards. The registered colors of an owner may not be registered by another, except after five years of non-use or abandonment by the registering owner. Any temporary change from the registered colors of the owner must be approved by the stewards.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19420 and 19440, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 1-6-94; operative 2-7-94 (Register 94, No. 1).

§1781. Responsibility for Colors.

The owner is responsible for the registration of colors and for their availability to and use by the jockey engaged to ride his horse. The stewards may make a temporary substitution of colors when necessary.

§1782. Program to Note Owner's Colors.

The colors to be worn by each jockey in a race shall be described in the official racing program and any change in such colors from those described in the program shall be announced to the public prior to the commencement of the race.

§1783. Registration of Stable Names and Stable Name Groups.

Note • History

(a) A licensed owner may register a stable name with the Board by filing an application and paying the fee for such stable name.

(1) A stable name is subject to the approval of the Board.

(2) No person may register more than one stable name at the same time.

(3) No person may use the real name of any owner of racehorses as his stable name.

(4) No stable name registration may be used for advertising purposes.

(5) A stable name that has already been registered may not be registered by another owner.

(b) A licensed owner may register a stable name group with the Board by filing an application and paying the fee for the stable name group. The stable name group shall be subject to Subparagraphs (a)(1) through (a)(5) above. The stable name group may establish multiple entities that shall run under the name of the registered stable name group.

(1) Each entity shall be registered, as applicable, in accordance with Rule 1481; Rule 1506; Rule 1507 and Rule 1784 of this division.

(2) The entity shall name the horse(s) it owns, and such horse(s) shall be owned separately from the other entities within the stable name group.

(3) Each entity shall possess a unique roster of owners. The roster shall name each owner and state if the owner is a general or a limited partner as well as the percentage of ownership of each. The roster shall be filed with the racing office and with the Board's occupational licensing office.

(4) A licensed owner may participate in the horse ownership of one or more entities that run under a stable name group.

(A) A partner whose ownership interest in an entity that runs under a stable name group is 10 percent or less of such entity may elect not to obtain a license as horse owner. For the purposes of this regulation, such partner shall be considered a limited partner. However, the partner may elect at any time to obtain a license as horse owner, and for the purposes of this regulation, shall then be considered a general partner.

(5) A partner who owns 10 percent or less of an entity that runs under a stable name group is not subject to the provisions of Rule 1606 of this division when a horse owned by the entity in which the partner participates is entered to race in the same race in which the partner has ownership interest in another horse that is entered to race.

(c) The granting of a stable name or stable name group registration by the Board shall not relieve any person from his obligation to file or register a fictitious name as provided by the laws of the State of California.

NOTE

Authority cited: Sections 19440 and 19460, Business and Professions Code. Reference: Sections 19460 and 19520, Business and Professions Code.

HISTORY

1. Amendment of section heading and section and new Note filed 7-10-2008; operative 8-9-2008 (Register 2008, No. 28).

§1784. Registration to Disclose All Partners.

Note • History

(a) An application to register a stable name shall disclose the real names of all partnership or ownership interests participating in the stable and the percentage of ownership interest of each, including the interest owned by any corporation, limited liability company (Corporations Code section 17000 et seq.), general partnership, limited partnership, trust, estate, person or individual.

(b) A registered stable name group shall comply with the provisions of subparagraph (a) of this regulation for each entity that runs under the stable name group.

NOTE

Authority cited: Sections 19440 and 19460, Business and Professions Code. Reference: Sections 19460 and 19520, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 8-14-98; operative 9-13-98 (Register 98, No. 33).

2. New subsection (b) filed 7-10-2008; operative 8-9-2008 (Register 2008, No. 28).

§1785. Reciprocity of Stable Name Registration. [Repealed]

History

HISTORY

1. Repealer filed 11-4-82; designated effective 12-15-82 (Register 82, No. 45).

§1786. Change of Stable Name Registration or Ownership of Stable.

Note • History

(a) A stable name may be changed at any time by registering a new stable name and by paying the fee as set by the Board.

(b) A stable name registration may be abandoned, or an expired stable name registration may be transferred to a new owner by giving written notice to the Board and to the stewards. A stable name registration that has expired, and has remained unregistered for at least three consecutive years, shall be considered abandoned.

(c) Any change in ownership, in whole or in part, of a currently registered stable name shall be immediately reported in writing to the Board and to the stewards. If the stable consists of multiple owners, the notification must be signed by at least the designated person responsible for the stable's conduct as listed on the stable name registration form and the person whose name is being removed, or added. A signature must be notarized if the person who signs is not present when the notification is presented to the Board.

NOTE

Authority cited: Sections 19440 and 19520, Business and Professions Code. Reference: Sections 19440, 19520 and 19521, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 8-10-93; operative 9-9-93 (Register 93, No. 33).

2. Amendment of subsection (c) filed 10-21-96; operative 11-20-96 (Register 96, No. 43).

§1787. Limitation of Use of Stable Name.

No owner may use his real name for racing purposes if he has a registered stable name, except with approval of the stewards or the Board.

§1788. Authorized Agent Registration.

A licensed owner may register his authorized agent by filing a registration of authorized agent with the Board and by paying the fee set by the Board. No person shall be registered as an authorized agent who is ineligible for a license. An authorized agent may act for the registering owner as set forth in the registration form.

§1789. Prohibited Acts of Agent.

No authorized agent may sign on behalf of any owner the certificate of registration for any horse in the absence of a valid power of attorney authorizing such signature.

§1790. Jockey Agent.

Note • History

A jockey agent is the authorized representative of a jockey if he is registered with the stewards as his representative by the employing jockey. No jockey agent shall represent more than two jockeys at the same time except with permission of the stewards who may also limit a jockey agent to the representation of one jockey if circumstances so warrant. Jockeys are bound by agreements made on their behalf by their agents.

NOTE

Authority cited: Sections 19440, 19562, Business and Professions Code. Reference: Sections 19401(a), (e), Business and Professions Code.

HISTORY

1. Amendment filed 4-12-79; effective thirtieth day thereafter (Register 79, No. 15).

§1791. Records Required of Jockey Agents.

Every jockey agent shall maintain a record of all engagements made for the jockeys he represents, and such record shall specify first, second or third calls in each race. The officials may require that the jockey agent file his first, second or third calls with the Racing Secretary and may require the jockey agent to display his record of engagements. A trainer or owner may demand a written confirmation of an engagement from a jockey or his agent. Conflicting claims for the services of a jockey shall be decided by the stewards.

§1792. Acting As Jockey Agent.

No person other than a licensed jockey agent shall make engagements for a jockey, except that the holder of a contract of any jockey or apprentice jockey, or his authorized agent, may make engagements for the jockey under contract. A jockey may make his own engagements.

§1793. Stable Agent.

A stable agent is the authorized representative of a stable or an owner, who is licensed as a stable agent by the Board. A stable agent may act on behalf of a stable or owner in the entry of horses, the deposit of funds with the Paymaster of Purses on behalf of the stable, in the engagement of a jockey, and in such other matters as authorized by the owner or stable.

§1794. Prohibited Acts of Stable Agent.

Note • History

No stable agent shall be eligible to withdraw any funds of the owner or stable from the association, or file any claim in any claiming race, or sign on behalf of the owner or stable any certificate of registration of any horse in the absence of a valid power of attorney authorizing such signature.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19420 and 19440, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adopting Note filed 5-6-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 18).

Article 13. Bloodstock Agents

§1800. Bloodstock Agents.

For the purpose of this article, a bloodstock agent is defined as any person who for gain, gratuity, commission or reward, in either money or goods, acts as an agent for the sale or purchase of any race horse not his own which is eligible to race at an authorized race meeting in this State.

§1801. Bloodstock Agents to Register.

Every bloodstock agent who offers for sale, offers to purchase for a client, or his own account for resale within 60 days, or offers his service as an agent in the purchase or sale of any race horse not his own which is eligible to race in this State, shall register with the Board on registration forms provided by the Board.

§1802. Sales with Warranties.

Every bloodstock agent who participates as an agent in the purchase or sale of any race horse where any warranty of soundness, condition or racing ability is expressed or implied shall file with the Board within five days of the date of sale a memorandum report of warranty which shall set forth the warranties expressed or implied. In the absence of any such filing it shall be presumed that no warranties were expressed or implied by the seller. A memorandum report of warranty shall be signed by both seller and purchaser or by the bloodstock agents acting in their behalf.

§1803. Sales with Conditions.

Every bloodstock agent who participates as an agent in the purchase or sale of any race horse eligible to race in this State where any condition of such purchase or sale includes any lien upon such horse by the seller or other person shall file a memorandum report of conditional sale with the Board within five days of the date of sale.

§1804. Misrepresentations.

No bloodstock agent shall misrepresent any material fact, nor shall he withhold any material fact which he knows, from any person connected with the sale of a horse; nor shall any bloodstock agent misrepresent his personal interest in any horse.

§1805. Failure to Comply with Regulations.

Any bloodstock agent or licensee who violates any provision of this article shall be refused admission to all private areas or restricted areas of the inclosure.

§1806. Auction Sales.

The provisions of this article shall not apply to auction sales which are authorized and/or approved by the Board; provided, however, that any warranty or condition of sale set forth in any sale catalog, printed offer of sale or sales agreement shall be considered as a memorandum report of warranty or condition of sale, whether or not filed with the Board.

Article 13.5. Authorized Horse Sales

§1807. Authorized Horse Sales.

Note • History

Upon application by a recognized breeder's association, sales organization, or any other person, the Board may authorize a horse sale or horse auction sale for the sale of race horses or breeding stock that is used in the production of race horses, to be held on the premises of a racing association, and the authorization and approval of such horse sale or horse auction sale shall be upon such conditions as may be imposed by the Board.

NOTE

Authority cited: Section 19(b) of Article IV, California Constitution and Sections 19420, 19440, 19460 and 19562, Business and Professions Code.

HISTORY

1. New Article 13.5 (Sections 1807, 1808, and 1809) filed 1-9-74, as an emergency; effective upon filing (Register 74, No. 2).

2. Certificate of Compliance filed 2-15-74 (Register 74, No. 7).

3. Amendment filed 2-15-74 as an emergency; effective upon filing. Certificate of Compliance included (Register 74, No. 7)

§1808. Medications Prior to Sale.

Note • History

(a) Persons owning or having care, custody or control over a horse offered for sale at an authorized horse sale or horse auction sale under the jurisdiction of the Board shall not administer to the horse any substance which is recognized as an injectable, oral or topical medication or drug within 72 hours of the time the horse is offered for sale unless the administration of the medication or drug is reported to the official veterinarian appointed by the Board to act at the authorized horse sale or horse auction sale before the sale of the horse in a manner as the official veterinarian may direct.

(b) Upon request of a prospective purchaser of a horse offered for sale at an authorized horse sale or horse auction sale, the official veterinarian shall make available to the prospective purchaser the report of medication administered to the horse.

(c) Compliance with this rule is the responsibility of the consignor of the horse and/or the person(s) having the care, custody or control of the horse. Violation of this rule is punishable by the Board by fine or in a manner determined by the Board.

NOTE

Authority cited: Sections 19420, 19440 and 19580, Business and Professions Code. Reference: Sections 19420, 19440 and 19580, Business and Professions Code; and Section 24011, Food and Agricultural Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1809. Post-Sale Tests.

The official veterinarian at any authorized horse sale or horse auction sale may administer a blood test to any horse sold at such sale and shall make such test at the request of the purchaser of the horse, and the blood sample shall be delivered to the official laboratory approved by the Board for analysis.

Article 14. California--Bred Awards

§1810. California-Bred Horse. [Repealed]

History

HISTORY

1. Repealer filed 9-15-82; effective thirtieth day thereafter (Register 82, No. 38).

§1811. Registration of Cal-Bred.

Note • History

The breeder or owner of a California-bred horse shall register such horse with the Board recognized agencies for such registration: the California Thoroughbred Breeders Association if a Thoroughbred, the California Harness Horse Breeders Association if a Standardbred, the Pacific Coast Quarter Horse Racing Association if a Quarter Horse, the Cal-Western Appaloosa Racing, Inc., if an Appaloosa, or the Arabian Racing Association of California if an Arabian.

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Sections 19440, 19565, 19566.5 and 19617.7, Business and Professions Code.

HISTORY

1. Amendment filed 10-7-77; effective thirtieth day thereafter (Register 77, No. 41).

2. Amendment filed 1-18-84; effective thirtieth day thereafter (Register 84, No. 3).

3. Amendment of section and Note filed 8-2-93; operative 9-1-93 (Register 93, No. 32).

§1812. Registration Required for Cal-Bred Eligibility.

Unless the breeder or owner of a California-bred horse has registered the same with the official registering agency for the California-bred horses and attested that the horse is a California-bred, such horse is ineligible for entry in races for California-bred horses. The breeder of such horse is not entitled to a California-bred breeder's award for such horse.

§1813. Associations to Program California-Bred Race.

The association shall provide one race on each racing day which is limited to California-bred horses. If, however, sufficient competition cannot be had among horses of that class on any day, it may be canceled with the approval of the stewards. The stewards shall report to the Board the cancellation of such race and the reasons therefore.

§1814. California-Bred Breeder's Award.

Note • History

(a) The association shall pay a California-bred Breeder's Award which shall amount to 10% of the winning purse of any race won by a California-bred standardbred horse, to the registered breeder of such winning horse. Such award shall be paid within 30 days of the close of the meeting from funds generated pursuant to Section 19617.5 of the Business and Professions Code. A horse not properly registered as a California-bred at the time of his winning shall not be entitled to a California-bred award for such race. Standard-bred Sires Stakes Races are exempt from the provisions of this subsection.

(b) The association shall pay a California-bred Breeder's Award which shall amount to 10% of the first and second place money of every purse won by a California-bred arabian horse pursuant to Section 19567 of the Business and Professions Code. Such funds shall be deposited by the association with the arabian official registering agency and distributed as specified in Section 19617.8(c)-(g) of the Business and Professions Code.

(c) The association shall pay a California-bred Breeder's Award which shall amount to 10% of the winning purse of any race won by a California-bred quarter horse pursuant to Section 19567 of the Business and Professions Code. Such funds shall be deposited by the association with the quarter horse official registering agency and distributed as specified in Section 19617.7 of the Business and Professions Code.

(d) The association shall deposit with the thoroughbred official registering agency, a portion of its handle pursuant to the provisions of Section 19617.2 of the Business and Professions Code, which shall be distributed as California-bred Breeder's Awards to the registered breeder of California-bred thoroughbred horses finishing first, second or third in any race run in this state, and to the registered breeder of California-bred thoroughbred horses finishing first, second or third in all graded stakes races run in the United States.

(e) The thoroughbred official registering agency shall distribute annually, California-bred Breeder's Awards to the registered breeders of California-bred thoroughbred horses pursuant to the provisions of Section 19617 of the Business and Professions Code.

(f) The association shall deposit with the appaloosa official registering agency, a portion of its handle pursuant to the provisions of Section 19617.9(b) of the Business and Professions Code, which shall be distributed as California-bred Breeder's Awards to the registered breeder of California-bred appaloosa horses. The Breeder's Award shall be a prorated share of the first and second earnings in any race run in this state as provided in Section 19617.9(c) and (d) of the Business and Professions Code.

NOTE

Authority cited: Sections 19567, 19617, 19617.2, 19617.5, 19617.7 and 19617.8, Business and Professions Code. Reference: Sections 19567, 19617, 19617.2, 19617.5, 19617.7, 19617.8 and 19617.9, Business and Professions Code.

HISTORY

1. Amendment filed 10-4-93; operative 11-3-93 (Register 93, No. 41).

2. Amendment of subsection (b), new subsection (f) and amendment of Note filed 6-21-96; operative 7-21-96 (Register 96, No. 25).

3. Change without regulatory effect amending subsection (b) and Note filed 6-23-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 26).

§1815. Decision As to Eligibility of Cal-Bred.

Note • History

Questions as to the registration, eligibility for registration, or breeding of a California-bred horse shall be decided by the official registering agency designated by the Board. The official registering agency may demand and inspect any registration certificate or record of a California breeder and may require affidavits in support of any claim for California-bred registration. Questions as to the eligibility for, nomination or entry to a race restricted to California-bred horses which is sponsored by the official registering agency shall be decided by the official registering agency. A decision of the official registering agency shall be subject to review by the Board which retains the right to make the final decision as to any right or liability under this article.

NOTE

Authority cited: Sections 19562 and 19565, Business and Professions Code. Reference: Sections 19562 and 19565, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1816. List of California-Breeds Admitted to Grounds. [Repealed]

History

HISTORY

1. Repealer filed 1-9-96; operative 2-8-96 (Register 96, No. 2).

§1817. California Stallion Award. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1818. Definitions. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1819. Thoroughbred Breeders and Stallion Awards. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1820. Sire Owned by More Than One Individual or Entity. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1821. Preparation and Distribution of Stallion Award Claims. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1822. Filing of Verified Claim for Stallion Awards. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1823. Failure to Comply. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1824. Filing of Stallion Report. [Repealed]

History

HISTORY

1. Repealer filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1825. Disputes with Respect to Stallion Awards.

Any dispute with respect to stallion awards must be submitted in writing to the Board in such manner and at such time as to permit the Board, in the exercise of reasonable diligence, to determine the same prior to the time at which distribution of such award would be made pursuant to this article. The Board's decision in such matter shall be final and binding upon the parties.

Article 15. Veterinary Practices

§1840. Veterinary Practices and Treatments Restricted.

No person other than California-licensed veterinarians who have obtained a license from the Board shall administer to any horse within the inclosure any veterinary treatment or any medicine, medication, or other substance recognized as a medication, except for recognized feed supplements or oral tonics or substances approved by the official veterinarian, or except under the direction or prescription of a veterinarian licensed by the Board.

§1841. Veterinarians Under Supervision of Official Veterinarian.

Veterinarians licensed by the Board and practicing at an authorized meeting are under the supervision of the official veterinarian and the stewards. The official veterinarian shall recommend to the stewards or the Board the discipline to be imposed upon a veterinarian who violates the rules and he may sit with the stewards in any hearing before the stewards concerning such discipline or violation.

§1842. Veterinarian Report.

Every veterinarian who treats a horse within the inclosure shall, in writing on a form prescribed by the Board, report to the official veterinarian in a manner prescribed by him, the name of the horse treated, the name of the trainer of the horse, the time of treatment, and any other information requested by the official veterinarian. Any such report is confidential and its content shall not be disclosed except in a proceeding before the stewards or the Board, or in exercise of the Board's jurisdiction.

§1843. Medication, Drugs and other Substances.

Note • History

It shall be the intent of these rules to protect the integrity of horse racing, to guard the health of the horse, and to safeguard the interests of the public and the racing participants through the prohibition or control of all drugs, medications and drug substances foreign to the horse. In this context:

(a) No horse participating in a race shall carry in its body any drug substance or its metabolites or analogues, foreign to the horse except as hereinafter expressly provided.

(b) No drug substance shall be administered to a horse which is entered to compete in a race to be run in this State except for approved and authorized drug substances as provided in these rules.

(c) No person other than a licensed veterinarian or animal health technician shall have in his/her possession any drug substance which can be administered to a horse, except such drug substance prescribed by a licensed veterinarian for a specific existing condition of a horse and which is properly labelled.

(d) A finding by an official chemist that a test sample taken from a horse contains a drug substance or its metabolites or analogues which has not been approved by the Board, or a finding of more than one approved non-steroidal, anti-inflammatory drug substance, or a finding of a drug substance in excess of the limit established by the Board for its use shall be prima facie evidence that the trainer and his/her agents responsible for the care of the horse has/have been negligent in the care of the horse and is prima facie evidence that the drug substance has been administered to the horse.

NOTE

Authority cited: Sections 19440, 19580, 19581 and 19582, Business and Professions Code. Reference: Sections 337(f), (g), and (h), Penal Code; and Sections 19401, 19440, 19580, 19581 and 19582, Business and Professions Code.

HISTORY

1. Repealer and new section filed 10-29-81; effective thirtieth day thereafter (Register 81, No. 44).

2. Amendment of section heading, text and Note filed 8-19-92; operative 9-18-92 (Register 92, No. 34).

§1843.1. Prohibited Drug Substances.

Note • History

For purposes of this division, prohibited drug substance means:

(a) any drug, substance, medication or chemical foreign to the horse, whether natural or synthetic, or a metabolite or analog thereof, whose use is not expressly authorized in this article.

(b) any drug, substance, medication or chemical authorized by this article in excess of the authorized level or other restrictions as set forth in this article.

NOTE

Authority cited: Sections 19440, 19562, 19580 and 19581, Business and Professions Code. Reference: Sections 19440, 19562, 19580 and 19581, Business and Professions Code.

HISTORY

1. New section filed 10-7-94; operative 11-7-94 (Register 94, No. 40).

§1843.2. Classification of Drug Substances.

Note • History

The Board, the board of stewards, the hearing officer, or the administrative law judge, when adjudicating a hearing for a violation of Business and Professions Code section 19581, shall consider the classification of the substance as referenced in the California Horse Racing Board (CHRB) Penalty Categories Listing by Classification (Revised 08/08), hereby incorporated by reference, which is based on the Association of Racing Commissioners International (ARCI) Uniform Classification Guidelines for Foreign Substances (4/05), as modified by the Board.

NOTE

Authority cited: Sections 19580, 19581 and 19582, Business and Professions Code. Reference: Sections 19580, 19581 and 19582, Business and Professions Code.

HISTORY

1. New section filed 8-7-95; operative 9-6-95 (Register 95, No. 32).

2. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

3. Amendment filed 5-23-2008; operative 5-23-2008 pursuant to Government Code section 11343.4 (Register 2008, No. 21).

4. Amendment filed 8-4-2008; operative 8-4-2008 pursuant to Government Code section 11343.4 (Register 2008, No. 32).

5. Change without regulatory effect amending section and incorporated document “California Horse Racing Board Penalty Categories Listing by Classification” filed 9-29-2008 pursuant to section 100, title 1, California Code of Regulations (Register 2008, No. 40).

§1843.3. Penalties for Medication Violations.

Note • History

(a) In reaching a decision on a penalty for a violation of Business and Professions Code section 19581, the Board, the board of stewards, the hearing officer or the administrative law judge shall consider the penalties set forth in subsections (d) and (e) of this Rule and any aggravating and mitigating circumstances. Deviation from these penalties is appropriate where the facts of the particular case warrant such a deviation, for example: there may be mitigating circumstances for which a lesser or no penalty is appropriate, and aggravating factors may increase the penalties beyond the minimum.

(b) Mitigating circumstances and aggravating factors, which must be considered, include but are not limited to:

(1) The past record of the licensee regarding violations of Business and Professions Code section 19581;

(2) The potential of the drug(s) to influence a horse's racing performance;

(3) The legal availability of the drug;

(4) Whether there is reason to believe the responsible party knew of the administration of the drug or intentionally administered the drug;

(5) The steps taken by the trainer to safeguard the horse;

(6) The steps taken by an owner to safeguard against subsequent medication violations including, but not limited to, the transfer of the horse(s) to an unaffiliated trainer;

(A) For the purpose of this regulation “unaffiliated trainer” means a trainer or an assistant trainer who is not related by blood, marriage or domestic partnership, or who is not or was never employed by the trainer from whose care such horse(s) were transferred.

(7) The probability of environmental contamination or inadvertent exposure due to human drug use or other factors;

(8) The purse of the race;

(9) Whether the drug found to be present in the official test sample was one for which the horse was receiving treatment as determined through the process described in Rule 1842 of this division;

(10) Whether there was any suspicious wagering pattern on the race;

(11) Whether the licensed trainer was acting under the advice of a licensed veterinarian.

(c) For the purpose of this regulation, the Board shall consider the classification of a drug substance as referred to in Rule 1843.2 of this division and the California Horse Racing Board (CHRB) Penalty Categories Listing By Classification, (1/08), which is hereby incorporated by reference, if a determination is made that an official test sample from a horse contained:

(1) Any drug substance, medication, metabolites or analogues thereof foreign to the horse, whose use is not expressly authorized in this division, or

(2) Any drug substance, medication or chemical authorized by this article in excess of the authorized level or other restrictions as set forth in the article.

(d) Penalties for violation of each classification level are as follows:

CATEGORY “A” PENALTIES

Penalties for violations due to the presence of a drug substance in an official test sample, which CHRB drug classification is categorized as warranting a Category A penalty are as follows:

CATEGORY “B” PENALTIES

Penalties for violations due to the presence of a drug substance in an official test sample, which CHRB drug classification is categorized as warranting a Category B penalty are as follows:

CATEGORY “B” PENALTIES FOR RULE 1843.6 TOTAL CARBON DIOXIDE (TCO2) TESTING

Penalties for violations due to exceeding permitted levels of TCO2 as defined in Rule 1843.6 are as set forth below. All concentrations are for measurements in serum or plasma.

CATEGORY “C” PENALTIES

Penalties for violations due to the presence of a drug substance in an official test sample, which CHRB drug classification is categorized as warranting a Category C penalty and for the presence of more than one non-steroidal anti-inflammatory (NSAID) in a plasma/serum sample, as defined in Rule 1844 of this division, and furosemide as defined in Rule 1845 of this division in an official test sample are as set forth below. All concentrations are for measurements in serum or plasma.

CATEGORY “C” PENALTIES FOR RULE 1844, AUTHORIZED MEDICATION (C) (1), (2), (3)

Penalties for violations due to overages for permitted non-steroidal anti-inflammatory drug substances (NSAIDs) as defined in Rule 1844 (c) (1), (2) and (3) of this division. All concentrations are for measurements in serum or plasma.

The official veterinarian shall consult with the treating veterinarian in all violations of 1844 (c). With permission of the official veterinarian the trainer may elect to pay the minimum fine in lieu of a stewards' hearing. If the trainer has not had an 1844 (c) violation within the previous three years, the official veterinarian or the board of stewards may issue a warning in lieu of a fine for violations of 1844 (c)(1), phenylbutazone, provided the reported level is below 5.1 mcg/ml.

(e) Violations due to the presence of a drug substance in an official test sample, which CHRB drug classification is categorized as warranting a Category “D” penalty, may result in a written warning to the licensed trainer and owner. A Category “D” penalty may result in a written warning or fine that will remain on the licensee's record for a period of two years. After the two year period, if the licensee has had no further violations of CHRB Rule 1843, the Category “D” penalty will be expunged from the licensee's record for penalty purposes.

CATEGORY “D” PENALTIES

CATEGORY “D” PENALTIES FOR RULE 1844(c)(1) VIOLATIONS

(f) Any drug or its metabolite or analogue thereof found to be present in an official test sample that is not classified in Rule 1843.2 of this division shall be classified as a Class 1 substance and a Category “A” penalty until classified by the Board.

(g) The administration of a drug substance to a race horse must be documented by the treating veterinarian through the process described in Rule 1842 of this division.

(h) Any licensee found to be responsible for the administration of any drug substance resulting in a positive test may be subject to the same penalties set forth for the licensed trainer and his presence may be required at any and all hearings relative to the case.

(1) Any veterinarian found to be involved in the administration of any drug substance resulting in a positive test in Penalty Category “A” shall be referred to the California Veterinary Medical Board (CVMB) for consideration of further disciplinary action.

(2) Any veterinarian found to be involved in the administration of any drug substance resulting in a positive test in Penalty Category “B” or “C” may be referred to the CVMB for consideration of further disciplinary action upon the recommendation of the Equine Medical Director, the board of stewards or hearing officers.

(i) A licensee who is suspended, or whose license is revoked, because of a medication violation is not able to benefit financially during the period of suspension or revocation. This includes, but is not limited to, ensuring that horses are not transferred to licensed family members.

(j) For the purpose of this regulation “licensed family members” means any person who holds an occupational license issued by the CHRB and who is related to the suspended licensee, or the licensee whose license is revoked, by blood, or by marriage or domestic partnership, or who is related by blood to the spouse or domestic partner of such licensee.

(1) For the purpose of this regulation, licensed trainers suspended 60 days or more, or whose license is revoked, shall be banned from all inclosures under the jurisdiction of the CHRB. In addition, during the period of suspension, or revocation, such trainer shall forfeit all assigned stall space and shall remove from the inclosures all signage, advertisements, training-related equipment, tack, office equipment, and any other property.

NOTE

Authority cited: Sections 19440, 19461 and 19580, Business and Professions Code. Reference: Sections 19461, 19580, 19581 and 19582, Business and Professions Code; and Section 11425.50, Government Code.

HISTORY

1. New section filed 5-23-2008; operative 5-23-2008 pursuant to Government Code section 11343.4 (Register 2008, No. 21).

2. Amendment of subsection (d) (table for Category “C” penalties) and subsection (e) (including new tables for Category “D” penalties) filed 2-14-2012; operative 3-15-2012 (Register 2012, No. 7).

3. Amendment of subsection (d) (table for Category “B” Penalties) filed 6-6-2012; operative 7-6-2012 (Register 2012, No. 23).

§1843.5. Medication, Drugs and Other Substances Permitted After Entry in a Race.

Note • History

(a) In this rule a horse is deemed “entered” in a race 48 hours before post time of the running of the race.

(b) Water and feed, including hay, grain, and feed supplements that do not contain prohibited drugs may be provided to the horse up until post time.

(c) Drugs, medications or any other substances shall not be administered by any means to a horse within 48 hours of the post time of the race in which the horse is entered except:

(1) Topical medications, (such as antiseptics, ointments, salves, leg rubs, leg paints, hoof dressings, liniments and antiphlogistics) which do not contain anesthetics or other prohibited drugs.

(d) Any drug, medication or any other substance found in a test sample taken from a horse which is not authorized under this rule shall be deemed a prohibited drug substance.

(e) Any of the following substances may be administered by injection until 24 hours before the post time of the race in which the horse is entered:

(1) Injectable Vitamins;

(2) Electrolyte Solutions;

(3) Amino Acid Solutions;

(4) Tetanus Antitoxin or Tetanus Toxoid, if the horse has sustained a wound.

(f) Approved anti-ulcer medications may be administered until 24 hours before the post time of the race in which the horse is entered. A list of approved anti-ulcer medications, and route of administration, shall be posted at each racetrack in the office of the official veterinarian.

(g) One of the following non-steroidal anti-inflammatory medications may be administered until 24 hours before the post time of the race in which the horse is entered under Rule 1844 of this division:

(1) Phenylbutazone;

(2) Flunixin;

(3) Ketoprofen.

(h) In addition to the substances named in subsection (c)(1), any of the following substances may be administered under Rule 1845 of this division within 24 hours of the post time of the race in which the horse is entered:

(1) Furosemide;

(2) Other Authorized Bleeder Medication.

(i) Drugs, medications or any other substances may not be administered to a horse by injection, via nasogastric tube (stomach tubing) or any other means after the horse is entered to race, except under these regulations.

NOTE

Authority cited: Sections 19580, 19581 and 19582, Business and Professions Code. Reference: Sections 19580, 19581 and 19582, Business and Professions Code; and Section 337(f), (g) and (h), Penal Code.

HISTORY

1. New section filed 8-27-92; operative 9-28-92 (Register 92, No. 35).

2. Amendment of subsections (d) and (e), new subsection (f), subsection relettering, and amendment of newly designated subsections (g) and (h) filed 10-6-98; operative 11-5-98 (Register 98, No. 41).

3. Amendment of section and Note filed 4-28-99; operative 5-28-99 (Register 99, No. 18).

§1843.6. Total Carbon Dioxide Testing.

Note • History

(a) At the direction of the Equine Medical Director, the stewards or the official veterinarian, a veterinarian licensed by the Board or a registered veterinary technician licensed by the Board may collect blood sample(s) from a horse for the purpose of testing for total carbon dioxide (TCO2) concentrations. Such blood sample(s) shall be collected under the provisions of Rule 1859 of this article, and may be collected pre-race or post-race.

(1) The owner or trainer of a horse selected for testing may request that a duplicate sample be taken. Such request shall be made prior to the collection of the official sample. The costs related to obtaining, handling, shipping and analyzing the duplicate sample shall be the responsibility of the owner or trainer who requested such sample.

(2) If the Board in its discretion determines the duplicate sample cannot be analyzed within five days after the sample is collected, the findings of the official sample shall be final.

(b) Any horse on a facility under the jurisdiction of the Board may be selected by the Equine Medical Director, the stewards or the official veterinarian for TCO2 testing.

(c) Any owner, trainer, or other person responsible for a horse, who refuses or fails to permit the taking of test sample(s) from such horse shall be deemed in violation of Rule 1930 of this division and shall have the horse declared ineligible to race by the stewards.

(d) TCO2 levels in the blood serum or plasma shall not exceed:

(1) 37.0 millimoles per liter of serum or plasma.

(2) TCO2 levels in excess of 37.0 millimoles shall be considered a Class three-medication violation for administrative purposes.

(e) The provisions of Rule 1859.25 of this article shall not apply to blood sample(s) collected for TCO2 testings.

NOTE

Authority cited: Sections 19420, 19440, 19580 and 19582.5, Business and Professions Code. Reference: Sections 19581 and 19582, Business and Professions Code.

HISTORY

1. New section filed 9-13-2005 as an emergency pursuant to Business and Professions Code section 19577(a); operative 9-13-2005 (Register 2005, No. 37). A Certificate of Compliance must be transmitted to OAL by 1-11-2006 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 9-13-2005 order transmitted to OAL 1-10-2006 and filed 1-20-2006 (Register 2006, No. 3).

3. Amendment of subsections (a) and (b)-(c) filed 1-27-2010; operative 2-26-2010 (Register 2010, No. 5).

§1844. Authorized Medication.

Note • History

Consistent with the intent of these rules, drug substances and medications authorized by the Board for use may be administered to safeguard the health of the horse entered to race provided that:

(a) No person shall administer a drug substance to any horse entered to race except upon authorization of the official veterinarian in conformance with these rules.

(b) No drug substance, other than authorized bleeder medication, shall be administered to a horse entered to race within 24 hours of the race in which entered.

(c) Not more than one approved non-steroidal anti-inflammatory drug substance (NSAID) may be administered to a horse that is entered to race and shall be only one of the following authorized drug substances:

(1) Phenylbutazone in a dosage amount that the test sample shall contain not more than 2 micrograms of the drug substance per milliliter of blood plasma or serum.

(2) Flunixin in a dosage amount that the test sample shall contain not more than 20 nanograms of the drug substance per milliliter of blood plasma or serum.

(3) Ketoprofen in a dosage amount that the test sample shall contain not more than 10 nanograms of the drug substance per milliliter of blood plasma or serum.

(4) Metabolites or analogues of approved NSAIDs may be present in post race test samples.

(d) If the official chemist reports that a blood test sample contains an authorized NSAID in excess of the limit for that drug substance under this rule, the official veterinarian shall, in conjunction with the veterinarian who administered or prescribed the authorized drug substance, establish a dosage amount or time of administration of the drug substance that will comply with the limits under this rule; or the official veterinarian may, if in his/her judgment no such reduced dosage amount or amendment to time of administration will result in a test sample level within the limits of this rule, withdraw authorization for the use of any one NSAID.

(e) Official urine test samples may contain one of the following drug substances, their metabolites or analogs, in an amount that does not exceed the specified levels:

(1) Acepromazine; 25 nanograms per milliliter

(2) Mepivacaine; 10 nanograms per milliliter

(3) Promazine; 25 nanograms per milliliter

(4) Albuterol; 1 nanograms per milliliter

(5) Atropine; 10 nanograms per milliliter

(6) Benzocaine; 50 nanograms per milliliter

(7) Procaine; 50 nanograms per milliliter

(8) Salicylates; 750 micrograms per milliliter

(9) Clenbuterol; 5 nanograms per milliliter

(10) Stanazolol; 1 nanograms per milliliter

(11) Nandrolone; 1 nanograms per milliliter for geldings, fillies and mares; 45 nanograms for males other than geldings.

(12) Boldenone; 15 nanograms per milliliter in males other than geldings.

(13) Testosterone; 20 nanograms per milliliter in geldings.

(A) Testosterone at any level in males other than geldings is not a violation of this regulation.

(14) Testosterone; 55 nanograms per milliliter in fillies or mares

(f) Official blood test samples may contain clenbuterol in an amount not to exceed 25 picograms per milliliter of serum or plasma.

(g) Official blood test samples shall not contain any of the drug substances, or their metabolites or analogs listed in subsection (e)(1)-(8), and (e)(10)-(14).

(h) Procaine, following administration of procaine penicillin, is an authorized medication provided:

(1) Official blood test samples shall not contain any procaine, or its metabolites or analogs in excess of 25 nanograms per milliliter.

(2) all procaine penicillin administrations have been reported pursuant to Rule 1842 of this division,

(3) procaine penicillin was not administered after entry to race,

(4) the horse was under surveillance for a minimum of six hours prior to racing.

(i) All expenses related to surveillance and testing for procaine under subsection (h) of this regulation shall be paid by the owner of the horse.

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Sections 19580 and 19581, Business and Professions Code.

HISTORY

1. Repealer and new section filed 10-29-81; effective thirtieth day thereafter (Register 81, No. 44).

2. Amendment filed 2-9-84; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 84, No. 6).

3. New subsections (d)-(e) and subsection relettering filed 8-3-95; operative 9-2-95 (Register 95, No. 31).

4. Change without regulatory effect adding new subsection (d), amending newly designated subsections (e) and (f), and repealing former subsection (f) filed 6-16-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 25).

5. Amendment of section and Note filed 4-28-99; operative 5-28-99 (Register 99, No. 18).

6. New subsection (e)(9), amendment of subsection (f) and amendment of Note filed 1-28-2002; operative 1-28-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 5).

7. Amendment of subsections (c), (c)(2)-(3) and (d)-(e) and amendment of Note filed 4-27-2005; operative 5-27-2005 (Register 2005, No. 17).

8. Amendment of subsection (c)(2), new subsection (f), subsection relettering and amendment of newly designated subsection (g) filed 9-20-2007; operative 10-20-2007 (Register 2007, No. 38).

9. New subsections (e)(10)-(e)(14) and amendment of subsection (g) filed 5-1-2008; operative 5-31-2008 (Register 2008, No. 18).

10. Amendment of subsections (e)(4) and (e)(7) and new subsections (h)-(i) filed 10-26-2010; operative 11-25-2010 (Register 2010, No. 44).

11. Amendment of subsections (c)(1)-(2) filed 2-14-2012; operative 2-14-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 7).

§1844.1. Suspension of Authorized Medication.

Note • History

(a) After a public meeting that has been noticed in accordance with Government Code section 11125(a), the Board may for any cause temporarily suspend the authorized administration to a horse entered to race of any drug, substance or medication that is otherwise permitted under Rule 1844, Authorized Medication.

(b) The temporary suspension of the authorized administration of a drug, substance or medication may be for a race, breed, or race meeting, provided all horses in the same race compete under the same conditions.

(c) The Board shall notify in writing the racing association and the trainer's organization of any temporary suspension of authorization to administer a drug, substance or medication to a horse entered to race. The written notification shall at minimum:

(1) State the authorized medication whose use is temporarily suspended,

(2) The period of time for which the use of the authorized medication is temporarily suspended, and

(3) Whether the temporary suspension is for a specific breed or a race meeting.

(d) A suspension of authorization to administer a drug, substance or medication to a horse entered to race shall not exceed 12 months.

NOTE

Authority cited: Sections 19440, 19562, 19580 and 19581, Business and Professions Code. Reference: Sections 19440, 19580 and 19581, Business and Professions Code.

HISTORY

1. New section filed 7-21-2011; operative 7-21-2011 pursuant to Governement Code section 11343.4 (Register 2011, No. 29).

§1845. Authorized Bleeder Medication.

Note • History

Authorized bleeder medication for the control of exercised induced pulmonary hemorrhage (EIPH) may be administered to a horse on the authorized bleeder medication list.

(a) A horse is eligible to race with authorized bleeder medication if the licensed trainer and/or veterinarian determines it is in the horse's best interest. If a horse will race with authorized bleeder medication, form CHRB 194 (New 08/04), Authorized Bleeder Medication Request, which is hereby incorporated by reference, shall be used to notify the official veterinarian prior to entry.

(b) The official laboratory shall measure the specific gravity of post-race urine samples to ensure samples are sufficiently concentrated for proper chemical analysis. The specific gravity of such samples shall not be below 1.010.

(c) If the specific gravity of the post-race urine sample is determined to be below 1.010, or if a urine sample is not available for testing, quantitation of furosemide in serum or plasma shall then be performed. Concentrations may not exceed 100 nanograms of furosemide per milliliter of serum or plasma.

(d) A horse qualified to race with authorized bleeder medication shall be assigned to a pre-race security stall prior to the scheduled post time for the race in which it is entered, and shall remain there until it is taken to the receiving barn or the paddock to be saddled or harnessed for the race. While in the security stall, the horse shall be in the care, custody, control and constant view of the trainer, or a licensed person assigned by the trainer. The trainer shall be responsible for the condition, care and handling of the horse while it remains in the security stall. The official veterinarian may permit a horse to leave the security stall to engage in track warm-up heats prior to a race.

(e) A horse qualified for administration of authorized bleeder medication must be treated on the grounds of the racetrack where the horse will race no later than four hours prior to post time of the race for which the horse is entered. The authorized bleeder medication, furosemide, shall be administered by a single intravenous injection only, in a dosage of not less than 150 mg. or not more than 500 mg. A horse racing with furosemide must show a detectable concentration of the drug in the post-race serum, plasma or urine sample. The veterinarian administering the bleeder medication shall notify the official veterinarian of the treatment of the horse. Such Notification shall be made using CHRB form-36 (New 08/04), Bleeder Treatment Report, which is hereby incorporated by reference, not later than two hours prior to post time of the race for which the horse is entered. Upon the request of a Board representative, the veterinarian administering the authorized bleeder medication shall surrender the syringe used to administer such medication, which may then be submitted for testing.

(f) A horse placed on the official authorized bleeder medication list must remain on the list unless the licensed trainer and/or veterinarian requests that the horse be removed. The request must be made using CHRB form 194 (New 08/04), and must be submitted to the official veterinarian prior to the time of entry. A horse removed from the authorized bleeder medication list may not be placed back on the list for a period of 60 calendar days unless the official veterinarian determines it is detrimental to the welfare of the horse. If a horse is removed from the authorized bleeder medication list a second time in a 365-day period, the horse may not be placed back on the list for a period of 90 calendar days.

(g) If the official veterinarian observes a horse bleeding externally from one or both nostrils during or after a race or workout, and determines such bleeding is a direct result of EIPH, the horse shall be ineligible to race for the following periods:

S First incident--14 days;

S Second incident within 365-day period--30 days;

S Third incident within 365-day period--180 days;

S Fourth incident within 365-day period--barred for racing lifetime.

For the purposes of counting the number of days a horse is ineligible to run, the day after the horse bled externally is the first day of such period. The voluntary administration of authorized bleeder medication without an external bleeding incident shall not subject a horse to the initial period of ineligibility as defined under this subsection.

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Sections 19580 and 19581, Business and Professions Code.

HISTORY

1. Amendment filed 7-11-75; effective thirtieth day thereafter (Register 75, No. 28).

2. Repealer and new section filed 10-29-81; effective thirtieth day thereafter (Register 81, No. 44).

3. Amendment filed 2-9-84; effective upon filing pursuant to Government Code section 11346.2(d) (Register 84, No. 6).

4. Amendment of subsections (e) and (f) filed 8-13-91; operative 9-12-91 (Register 91, No. 50).

5. Amendment of section heading, section and Note filed 4-27-2005; operative 5-27-2005 (Register 2005, No. 17).

§1846. Racing Soundness Examination.

Note • History

Each and every horse entered to race shall be subjected to a veterinary examination for racing soundness and health on race day not later than two hours prior to official post time for the race in which the horse is to compete. Such an examination shall be referred to as the “Racing Soundness Exam.”

(a) The examination shall include but not be limited to close inspection of the eyes, examination of the legs, recording of the temperature of the horse and observation of the horse at rest and while in motion.

(b) All such examinations shall be conducted in or near the stall to which the animal is assigned and shall be conducted by the Official Veterinarian or the Racing Veterinarian.

(c) The Official Veterinarian shall keep or cause to be kept a continuing health and racing soundness record of each horse so examined.

NOTE

Authority cited: Section 19440, Business and Professions Code. Reference: Sections 337 (f), (g), and (h), Penal Code. Sections 19401 and 19440, Business and Professions Code.

HISTORY

1. Repealer and new section filed 10-29-81; effective thirtieth day thereafter (Register 81, No. 44).

§1846.5. Postmortem Examination.

Note • History

(a) Every horse which suffers a fatal injury on the racetrack in training or in competition, or which dies or is euthanized within an area under the jurisdiction of the Board, shall undergo a postmortem examination at a diagnostic laboratory which is under contract with the Board to determine the injury or sickness which resulted in euthanasia or natural death.

(b) Test samples may be obtained from the carcass upon which the postmortem examination is to be conducted and sent to the diagnostic laboratory for testing for foreign substances or their metabolites, and natural substances at abnormal levels. When practical, test samples shall be procured prior to euthanasia.

(c) The costs associated with transportation to the diagnostic laboratory of any horse which has died under the provisions of subparagraph (a) shall be the responsibility of the racing association conducting the meeting where the death occurred or the training center or racetrack where death occurred when no meeting is in progress. The services of the official veterinarian and the laboratory testing of postmortem samples for standard necropsy and special equine necropsy examinations shall be made available by the Board without charge to the owner. The cost of any additional necropsy examination(s) requested by the owner or trainer are the responsibility of the requesting individual.

(d) Requests for each postmortem shall be filed with the official veterinarian by the owner's or trainer's veterinarian within one hour of the death and shall be submitted on a Necropsy Submission Form, CHRB-72, (Rev. 6/04), hereby incorporated by reference, and which is available at all official veterinarian offices. The trainer is co-responsible to supply all information to complete CHRB-72.

(e) If the official veterinarian is not available, the owner's or trainer's veterinarian must phone the diagnostic laboratory within one hour of the death and fax CHRB-72 to the laboratory as notification that the horse is due for necropsy. On the official veterinarian's next scheduled work day, the owner's or trainer's veterinarian shall give the original CHRB-72 to the official veterinarian.

(f) The racing association, racetrack or training center will notify the transporter within one hour of death to have the horse conveyed to the designated laboratory for necropsy.

(g) Upon completion of the postmortem examination the diagnostic laboratory shall file a written report with the Executive Director, the Equine Medical Director and the official veterinarian.

(h) Each owner and trainer accepts responsibility for the postmortem examination provided herein as a requisite for maintaining an occupational license.

NOTE

Authority cited: Section 19440, Business and Professions Code. Reference: Section 19444(c), Business and Professions Code.

HISTORY

1. New section filed 10-29-81; effective thirtieth day thereafter (Register 81, No. 44).

2. Amendment filed 11-10-92; operative 12-10-92 (Register 92, No. 46).

3. Change without regulatory effect amending subsections (a) and (g) filed 6-7-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 23).

4. Amendment of subsections (a)-(f) filed 8-11-95; operative 9-10-95 (Register 95, No. 32).

5. Change without regulatory effect amending subsection (d) filed 7-6-98 pursuant to section 100, title 1, California Code of Regulations (Register 98, No. 28).

6. Change without regulatory effect amending subsections (d)-(e) filed 4-25-2000 pursuant to section 100, title 1, California Code of Regulations (Register 2000, No. 17).

7. Amendment filed 11-29-2004; operative 12-29-2004 (Register 2004, No. 49).

§1847. Blocking of Legs.

Note • History

Blocking may be defined as the administration of any local anesthetic, or other agent, to desensitize a portion of a leg either locally by infiltration of the tissues, regionally by administration directly over a nerve, or by injection directly into a joint space, tendon sheath, or bursa for the purpose of desensitization of a painful condition. These practices are prohibited after a horse is entered to race. The use of ice is not prohibited.

NOTE

Authority cited: Sections 19420, 19440 and 19562, Business and Professions Code. Reference: Sections 19420, 19440 and 19562, Business and Professions Code; Section 337h, Penal Code of California.

HISTORY

1. Amendment filed 1-24-91; operative 2-23-91 (Register 91, No. 7).

§1848. Bandages.

Note • History

Only bandages approved by the official veterinarian shall be used on a horse during a race and all other leg coverings shall be removed before the horse leaves the saddling paddock to enter the race course.

NOTE

Authority cited: Section 19562, Business and Professions Code. Reference: Section 19562, Business and Professions Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

§1849. Nerving.

No person shall bring onto the grounds of a racing association, or enter or cause to be entered in any race, or sell, offer for sale, or act as a bloodstock agent in the sale of, any horse which has been “nerved” or has had any nerve removed from the leg of such horse, except as provided in this article.

§1850. Posterior Digital Neurectomy.

Note • History

(a) Notwithstanding the prohibition against “nerving,” a horse upon which a posterior digital neurectomy has been performed, commonly known as “heel nerving” is not ineligible to race, and is not subject to the prohibitions in this article pertaining to nerving, provided:

(1) the official veterinarian is satisfied that the loss of sensation to such horse due to the posterior digital neurectomy will not endanger the safety of any horse or rider,

(2) the prior approval of the official veterinarian has been obtained if the horse is on the grounds of a racing association,

(3) the racing secretary is notified of such nerving at the time such horse is admitted to the grounds of a racing association,

(4) the posterior digital neurectomy was performed prior to October 1, 2008, and

(5) the horse's registration or eligibility certificate is marked to indicate such nerving.

NOTE

Authority cited: Sections 19420, 19440 and 19562, Business and Professions Code. Reference: Sections 19420, 19440 and 19562, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 9-2-2008; operative 10-1-2008 pursuant to Government Code section 11343.4 (Register 2008, No. 36).

§1851. List of Nerved Horses.

The racing secretary shall maintain a list of nerved horses which are on the grounds and shall make such list available for inspection by other licensees participating in the meeting.

§1852. Reporting to Receiving Barn.

A horse shall not be qualified to start in a race unless his presence at the receiving barn at the time designated by the stewards is reported to the official veterinarian, and no trainer shall fail to cause a horse in his care to report to the receiving barn at the designated time.

§1853. Examination Required.

Note • History

(a) The official veterinarian shall examine each horse that is scheduled to race to determine its fitness to start. The horse identifier shall examine each horse to identify such horse from the Board's identification record and the photographs, record of pedigree, tattoo or brand number and such other points of identification as may be available. The horseshoe inspector shall inspect the horseshoes of each horse. No horse shall be eligible to start in a race, and shall be declared by the stewards, if it is found to be unfit to race, not properly identified, or improperly shod.

(b) A thoroughbred horse that is not shod is eligible to start in a race if the trainer declares at the time of entry that the horse will race unshod.

(1) At the time of entry a trainer shall declare if a thoroughbred horse that raced unshod in its previous start will race shod.

(2) Any declaration made under subsections (b) or (b)(1) above shall be noted in the official program, and shall state if the horse will race without horseshoes in the front or back or all around.

(3) For the purposes of this regulation “unshod” means running without horseshoes in the front or back or all around.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19420 and 19440, Business and Professions Code.

HISTORY

1. Redesignation and amendment of existing section as new subsection (a), new subsections (b)-(b)(3) and new Note filed 8-4-2009; operative 9-3-2009 (Register 2009, No. 32).

§1854. Exclusion from Receiving and Detention Barn.

The official veterinarian shall exclude from the receiving and detention barn all horses not participating in a race or being schooled to race and all persons who are not required for attendance on such horses. No person shall enter the stall in the receiving barn of a horse scheduled to race except with permission of the custodian of the barn or the official veterinarian. No person shall inspect any horse in the receiving barn which is not owned, trained or cared for by him, nor refuse to leave when ordered to do so by the custodian or the official veterinarian.

§1855. Medication Procedures and Related Instructions.

The Board may issue orders governing medication procedures and related instructions, which orders amplify the provision of this article.

§1856. Clean and Sterile Equipment Required.

Note • History

Veterinarians shall use new, single-use disposable hypodermic needles for parenteral administrations. All other instruments used for injections or skin penetration, must be cleaned and sterilized. The official veterinarian shall provide a secure place for the disposal of needles, syringes, injectable medications and their containers, and veterinarians on the grounds shall not dispose of such materials on the grounds other than in such secure place.

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Section 19580, Business and Professions Code.

HISTORY

1. Amendment of section heading, text, and new Note filed 8-16-93; operative 9-15-93 (Register 93, No. 34).

§1857. Equipment for Official Testing.

Associations shall provide the equipment, necessary supplies and services prescribed by the Board or the official veterinarian for the taking of or administration of urine, saliva or other tests.

§1858. Test Sample Required.

Note • History

Blood and urine test samples shall be taken daily from the winner of ever race, from horses finishing second and third in any stakes race with a gross purse of $75,000 or more, and from not less than six or more than nine other horses designated for testing by the Equine Medical Director, the stewards or the official veterinarian. Every horse within the inclosure or entered in any race is subject to testing and no owner, trainer or other person having the care of a horse shall refuse to submit it for testing when directed by the Equine Medical Director, the stewards or the official veterinarian.

NOTE

Authority cited: Sections 19440, 19562 and 19580, Business and Professions Code. Reference: Section 19580(b), Business and Professions Code; and Sections 337f, 337g and 337h, Penal Code.

HISTORY

1. Amendment filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

2. Amendment filed 2-9-84; effective upon filing pursuant to Government Code section 11346.2(d) (Register 84, No. 6).

3. Amendment filed 8-23-90; operative 9-22-90 (Register 90, No. 41).

4. Amendment of section and Note filed 1-9-96; operative 2-8-96 (Register 96, No. 2).

5. Amendment of section and Note filed 2-6-2002; operative 3-8-2002 (Register 2002, No. 6).

6. Amendment filed 1-27-2010; operative 2-26-2010 (Register 2010, No. 5).

§1859. Taking, Testing and Reporting of Samples.

Note • History

(a) Urine, blood or other official test samples shall be taken under the direction of the official veterinarian, the Equine Medical Director or a person designated by the official veterinarian. All samples shall be taken in a detention area approved by the Board, unless the official veterinarian or the Equine Medical Director approves otherwise. The taking of any test sample shall be witnessed, confirmed or acknowledged by the trainer of the horse being tested or his or her agent or employee, and may be witnessed by the owner, trainer or other person designated by them. All official test samples shall be sent to the official laboratory approved and designated by the Board, in such manner as the Board may direct. All required samples shall be in the custody of the official veterinarian, his or her assistants or other persons approved by the official veterinarian, from the time they are taken until they are delivered to the custody of the official laboratory.

(b) The Executive Director and the Equine Medical Director shall immediately be notified by the official laboratory of each finding that an official test sample contains a prohibited drug substance, as defined in this article. The official laboratory shall further provide all information and data on which the finding is based to the Equine Medical Director, and shall transmit its official report of the finding to the Executive Director within five working days after the initial notification is made.

(c) The Board has the authority to direct the official laboratory to retain and preserve by freezing samples for future analysis.

(d) The fact that purse money has been distributed prior to the issuance of a laboratory report shall not be deemed a finding that no drug substance prohibited by this article has been administered, in violation of these rules, to the horse earning such purse money.

NOTE

Authority cited: Sections 19420, 19440, 19562 and 19577, Business and Professions Code. Reference: Sections 19401, 19440 and 19577, Business and Professions Code.

HISTORY

1. Amendment filed 12-15-80; effective thirtieth day thereafter (Register 80, No. 51).

2. Amendment adding subsection designations and new subsections (b) and (c) filed 8-23-90; operative 9-22-90 (Register 90, No. 41).

3. Change without regulatory effect amending subsection (c) filed 6-7-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 23).

4. Amendment of section heading and subsections (a)-(c) and (e) filed 10-25-94; operative 11-6-94 pursuant to Government Code Section 11346.2(d) (Register 94, No. 43).

5. Amendment of subsection (a), repealer of subsection (b), subsection relettering and amendment of newly designated subsection (b) filed 1-27-2010; operative 2-26-2010 (Register 2010, No. 5).

§1859.5. Disqualification upon Positive Test Finding.

Note • History

A finding by the stewards that an official test sample from a horse participating in any race contained a prohibited drug substance as defined in this article, which is determined to be in class levels 1-3 under Rule 1843.2 of this division, unless a split sample tested by the owner or trainer under Rule 1859.25 of this division fails to confirm the presence of the prohibited drug substance determined to be in class levels 1-3 shall require disqualification of the horse from the race in which it participated and forfeiture of any purse, award, prize or record for the race, and the horse shall be deemed unplaced in that race. Disqualification shall occur regardless of culpability for the condition of the horse.

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Sections 19401, 19440, 19577 and 19582.5, Business and Professions Code; and Sections 337f, 337g and 337h, Penal Code.

HISTORY

1. New section filed 4-21-83; effective thirtieth day thereafter (Register 83, No. 17).

2. Editorial correction inserting history note in appropriate section (Register 92, No. 19).

3. Amendment of section heading, section and Note filed 8-10-95; operative 9-9-95 (Register 95, No. 32).

4. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1859.25. Split Sample Testing.

Note • History

(a) In addition to the blood and urine official test samples transmitted to the official laboratory for testing as provided in Rule 1859 of this Article, the Board shall maintain a portion of the official test sample for each horse tested if sufficient sample is available after the official test samples are taken. That portion shall be designated the split sample. The Board makes no guarantee as to the amount of sample which will be available for the split sample. All samples taken by representatives of the Board are under the jurisdiction of and shall remain the property of the Board at all times. The Board shall ensure the security and storage of the split sample.

(b) When the Executive Director or the Executive Director's designee is notified of a finding by the official laboratory that a test sample from a horse participating in any race contained a prohibited drug substance as defined in this Article, the Executive Director, after consulting with the Equine Medical Director or the Equine Medical Director's designee as to the presence of the prohibited drug substance shall notify a Supervising Investigator. The owner and the trainer shall be confidentially notified of the finding by a Supervising Investigator or his/her designee and the owner and trainer shall each have 72 hours from the date he or she is notified to request that the split sample of the official test sample that was found to contain the prohibited drug substance(s) be tested by an independent Board approved laboratory.

(c) If the owner or trainer wishes to have the split sample tested, he or she shall comply with the following procedures:

(1) The request shall be made on CHRB-56, (Rev. 5/97), Request to Release Evidence, which is hereby incorporated by reference. CHRB-56 shall be made available at all CHRB offices.

(2) The owner or trainer requesting to have the split sample tested shall be responsible for all charges and costs incurred in transporting and testing the split sample. By signing CHRB-56, the owner or trainer certifies he or she has made arrangements for payment to the designated Board-approved laboratory for laboratory testing services.

(3) Verification of payment for costs incurred in transporting and testing the split sample must be received by the CHRB within five (5) working days from the CHRB receipt of CHRB-56. If such verification of payment is not received, the split sample will not be released or shipped to the Board-approved laboratory designated by the owner or trainer to test the split sample and the owner and trainer will have relinquished his/her right to have the split sample tested. If a complaint issues, the only test results that will be considered will be the results from the Board's official laboratory.

(d) Upon approval by the Executive Director or the Executive Director's designated representative of a valid request on CHRB-56, CHRB-29 (Rev. 5/97), Authorization to Release Split Sample Urine Evidence, or CHRB-29A (Rev. 5/97), Authorization to Release Split Sample Blood Evidence, which are hereby incorporated by reference, shall be completed and the Board shall ensure that the split sample is sent to the designated laboratory for testing.

(1) If the findings by the independent Board-approved laboratory fail to confirm the findings of the prohibited drug substance as reported by the official laboratory, it shall be presumed that the prohibited drug substance was not present in the official sample.

(2) If the findings by the independent Board-approved laboratory confirm the findings of the prohibited drug substance as reported by the official laboratory, the Executive Director shall report these findings to the Board within 24 hours after receiving confirmation of the prohibited drug substance in the split sample.

(e) If the owner or trainer fails to request the testing of the split sample in accordance with the procedures specified in this rule, they shall be deemed to have waived their rights to have the split sample tested.

(f) Results of the official test sample and the split sample shall be, and shall remain, confidential and shall be provided only to the Executive Director or the Executive Director's designee, the Board, the Equine Medical Director or the Equine Medical Director's designee, and to the owner and trainer, unless or until the Board files an official complaint or accusation.

NOTE

Authority cited: Sections 19420, 19440 and 19577, Business and Professions Code. Reference: Sections 19420, 19440 and 19577, Business and Professions Code; Section 603, Evidence Code.

HISTORY

1. New section filed 4-15-91; operative 5-15-91 (Register 91, No. 19).

2. Change without regulatory effect amending subsections (c)(1) and (d) filed 5-1-92 pursuant to section 100, title 1, California Code of Regulations (Register 92, No. 19).

3. Change without regulatory effect amending subsections (b), (d) and (e) filed 6-7-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 23).

4. Amendment filed 10-11-94; operative 11-10-94 (Register 94, No. 41).

5. Change without regulatory effect amending subsection (d) filed 10-22-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 43).

6. Change without regulatory effect amending section filed 6-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 25).

7. Change without regulatory effect amending section filed 11-17-98 pursuant to section 100, title 1, California Code of Regulations (Register 98, No. 47).

§1860. Adulteration of Sample.

No person shall tamper with, adulterate, add to, break the seal of, remove, or otherwise attempt to do so, any sample required to be taken by this article, except for the addition of preservatives or substances necessarily added by the official laboratory for presentation of the sample or in the process of analysis.

§1861. Vendors.

No vendor permitted on the grounds of an association shall sell or deliver any horse feed, feed supplement, tonic, veterinary preparation, medication, veterinary equipment or supplies, or any substance containing any prohibited drug, unless he shall have filed with the official veterinarian a list of such items he intends to sell or deliver and has received the approval of the official veterinarian. Any vendor permitted regular access to the stable area shall obtain a license from the Board. The official veterinarian may restrict the sale of, prohibit the sale or delivery of, or place conditions on the sale or delivery of any item subject to approval.

§1862. Dealers in Hay.

All dealers in hay or feed who are permitted access to the stable area are required to provide at the time of delivery of any hay or feed to a consignee in the stable area a bill specifying the weight and cost of such feed or hay. Any hay dealer who delivers hay or feed which does not weigh at least the amount specified on the bills provided therefore shall be denied access to all stable areas of associations in this State.

§1863. Pre-Race Testing.

The Board may require any horse entered to race to submit to any blood or other pre-race test, and no horse is eligible to start in a race until the owner or trainer complies with any required testing procedure.

§1864. Labelling of Medications.

No veterinarian or vendor shall dispense, sell or furnish any feed supplement, tonic, veterinary preparation, medication, or any substance containing a prohibited drug to any person within the inclosure unless there is a label specifying the name of the dispensing veterinarian, the name of the horse or the purpose for which the said preparation or medication is dispensed, and the name of the person to which dispensed, or is otherwise labelled as required by law. Any substance containing a prohibited drug shall be labelled, “Caution. Contains Prohibited Drug. Not to be used on race day.”

§1865. Altering of Sex of Horse.

Note • History

Any alteration to the sex of a horse from the sex as recorded on the certificate of foal registration or the eligibility certificate or other official registration certificate of the horse shall be reported to the racing secretary and the official horse identifier if the horse is entered to race at any race meeting.

(a) If a racehorse is gelded or castrated on the premises of a licensed racing association, or other facility under the jurisdiction of the Board, the trainer shall report the alteration within 72 hours.

(b) If a racehorse is gelded or castrated off the premises of a licensed racing association, or other facility under the jurisdiction of the Board, and the horse has been previously entered to race at any race meeting in this State, the owner and/or trainer shall report the alteration at the time the horse is next entered to race.

(c) A report of gelding or castration will include the name of the veterinarian performing the alteration and the date of the alteration, and shall be recorded on the official registration certificate and the official horse identification record of the horse.

(d) A trainer who enters a horse, or who causes a horse to be entered on his behalf, is responsible for ensuring that the true sex of the entered horse is listed on its certificate of registration on file in the racing office.

(1) If the true sex of a horse is not correctly identified in the official program for the race in which the horse is entered, the trainer of the horse shall be subject to a minimum fine of $1,000.

(2) Deviation from the minimum fine in subsection (d)(1) of this regulation is appropriate if the trainer can demonstrate mitigating circumstances. Mitigating circumstances may include, but are not limited to:

(A) Errors made by other parties in recording information correctly provided by the trainer.

NOTE

Authority cited: Sections 19420, 19440, 19460 and 19562, Business and Professions Code. Reference: Sections 19420, 19562 and 19661, Business and Professions Code.

HISTORY

1. New section filed 7-11-75; effective thirtieth day thereafter (Register 75, No. 28).

2. Amendment of section and Note filed 3-11-2009; operative 4-10-2009 (Register 2009, No. 11).

§1866. Veterinarian's List.

Note • History

(a) The official veterinarian shall maintain a Veterinarian's List of those horses determined to be unfit to compete in a race due to veterinary treatment, physical distress, injury, lameness, unsoundness or infirmity.

(1) When a horse is placed on the Veterinarian's List, the trainer of such horse shall be notified within 72 hours.

(b) A horse placed on the Veterinarian's List as injured, unsound or lame may not workout for 72 hours after being placed on the list without the permission of the official veterinarian.

(1) The official veterinarian may require any horse placed on the Veterinarian's List to undergo a veterinary examination prior to resuming training at any facility under the jurisdiction of the Board.

(c) A horse placed on the Veterinarian's List shall be removed from the list only after having established or demonstrated to the satisfaction of the official veterinarian or the racing veterinarian that the horse is then raceably sound and in fit physical condition to exert its best effort in a race.

(d) A horse may be required to perform satisfactorily in a workout or qualifying race to demonstrate its physical fitness, and if so a blood and/or urine post-work test sample shall be taken from the horse and the provisions of this article shall apply to such official workout in the same manner as to a scheduled race.

(e) For the purpose of this regulation, “workout” means an exercise session near full speed, or close to full speed.

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Sections 19440 and 19562, Business and Professions Code.

HISTORY

1. New section filed 2-9-84; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 84, No. 6).

2. Amendment filed 12-16-85; effective thirtieth day thereafter (Register 85, No. 51).

3. Amendment filed 1-29-2010; operative 2-28-2010 (Register 2010, No. 5).

4. Editorial correction of History 3 (Register 2010, No. 6).

§1867. Prohibited Veterinary Practices.

Note • History

For purposes of this division, prohibited veterinary practices means:

(a) The possession and/or use on the premises of a facility under the jurisdiction of the Board of any drug, substance or medication specified below, for which a recognized analytical method has not been developed to detect and confirm its administration; or the use of which may endanger the health and welfare of the horse, or the safety of the rider or driver, or alter equine performance.

(1) Erythropoietin (EPO) and analogs

(2) Darbepoietin and analogs

(3) Snake venom

(4) Snail venom

(5) Growth hormone and analogs

(6) Ractopamine and ractopamine metabolites or analogs,

(7) Zilpaterol and zilpaterol metabolites or analogs

(b) The possession and/or use on the premises of a facility under the jurisdiction of the Board of any drug, substance or medication that has not been approved by the United States Food and Drug Administration (FDA) for use in the United States.

(c) The presence of any drug, substance or medication described in subsections (a)(1) through (a)(5), and subsection (b) of this regulation in any test sample obtained consistent with Rules 1858, 1859 and 1859.25 of this article, and the provisions of this article, shall apply to such sample in the same manner as if the horse were entered to race (See Title 4, California Code of Regulations, section 1843.3). The Board may grant an exception to this subsection if the person or persons seeking the exemption submits written documentation that demonstrates an FDA exemption has been obtained pursuant to Guide 1240.3025 of the FDA Center for Veterinary Medicine (CVM) Program Policy and Procedures Manual, which is hereby incorporated by reference. Guide 1240.3025 of the FDA CVM Program Policy and Procedures Manual may be obtained at the California Horse Racing Board's headquarters office.

NOTE

Authority cited: Sections 19440, 19562, 19580 and 19582, Business and Professions Code. Reference: Sections 19580, 19581 and 19582, Business and Professions Code.

HISTORY

1. New section filed 10-15-2002; operative 11-14-2002 (Register 2002, No. 42).

2. New subsections (a)(3)-(4) and amendment of Note filed 9-16-2003; operative 10-16-2003 (Register 2003, No. 38).

3. Amendment of section and Note filed 2-1-2010; operative 3-3-2010 (Register 2010, No. 6).

4. New subsections (a)(6)-(7) filed 10-10-2012; operative 11-9-2012 (Register 2012, No. 41).

Article 16. General Conduct

§1870. Conditions of Meeting Binding upon Licensees.

The Board, recognizing the necessity of an association to comply with the requirements of its license and to fulfill its obligation to the public and the State of California with the best possible uninterrupted services, in the comparatively short licensed period, herein provides that all associations, officials, horsemen, owners, trainers, jockeys, grooms, platers, association employees, and all licensees, who have accepted directly or indirectly, with reasonable advance notice, the conditions under which said association engages and plans to conduct such race meeting, shall be bound thereby.

§1871. Notice of Intention to Terminate.

Any association, officials, horsemen, owners, trainers, jockeys, grooms, platers, association employees, and all licensees, who so accept such conditions pursuant to Section 1870 shall, before they terminate or discontinue their employment, engagements or activities, give the Board and the association with whom they are engaged, at least 15 days notice in writing of their intentions to terminate or discontinue their employment, engagements or activities under such conditions. The Board may upon notice to all parties of interest, conduct a hearing with respect to any termination or discontinuance of employment.

§1872. Failure to Fulfill Jockey Agreement.

No jockey engaged for a certain race or for a specified time may fail or refuse to abide by his agreement unless excused by the stewards.

§1873. Furnishing Racing Selection.

No licensee, employee of the racing association, or employee of any concessionaire of the racing association shall furnish a handicap or selection or racing prediction to any racing prediction or selection service or to any tipster sheet required to file with the Board pursuant to Section 19664 of the Business and Professions Code.

§1874. Disorderly Conduct.

Note • History

No licensee shall be under the influence of any alcoholic beverage, and/or any illegal substance while performing their respective duties while within the inclosure of any racing association or fair, simulcast wagering facility, auxiliary stabling facility or Board-approved training facility. Nor shall any licensee conduct themselves in a disorderly or boisterous manner at any time while within the inclosure of any racing association or fair, simulcast wagering facility, auxiliary stabling facility or Board-approved training facility including but not limited to:

1. Fighting;

2. Threatening, abusive or aggressive behavior toward another person;

3. Any behavior that impedes others from performing their duties; and/or

4. Any other behavior that is detrimental to the public and racing.

NOTE

Authority cited: Sections 19440 and 19460, Business and Professions Code. Reference: Sections 19440 and 19460, Business and Professions Code.

HISTORY

1. Amendment of section heading, section and new Note filed 3-28-96; operative 4-27-96 (Register 96, No. 13).

§1875. Firearms.

Note • History

No licensee, employee of the association or its concessionaires, shall possess a firearm while on the grounds of a facility within the purview or control of the Board unless such possession has been authorized by state or federal law, and unless the documentation of such authorization is on his or her person.

NOTE

Authority cited: Sections 19420, 19440 and 19460, Business and Professions Code. Reference: Sections 19420, 19440 and 19460, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 1-6-94; operative 2-7-94 (Register 94, No. 1).

§1876. Financial Responsibility.

Note • History

(a) No licensee shall willfully and deliberately fail or refuse to pay any moneys when due for any service, supplies or fees directly related to his or her California horse racing operations, nor shall he or she falsely deny any such amount due or the validity of the complaint thereof with the purpose of hindering or delaying or defrauding the person to whom such indebtedness is due.

(b) Any financial responsibility complaint against a licensee shall be in writing, signed by the complainant, and accompanied by documentation of the services, supplies or fees alleged to be due, or by a judgment from a civil court which has been issued within one year of the date of the complaint.

(c) The Board will not consider a financial responsibility complaint made by the complainant against the same accused within twenty-four months of the filing of the instant complaint.

(d) The Board will consider only those financial responsibility complaints which meet the following criteria:

(1) The complaint involves services, supplies or fees that are directly related to the licensee's California racetrack operations; and

(2) the debt or cause for action originated, or the civil court judgement was issued, in this State within one year of the filing of the complaint.

(e) Financial responsibility complaints submitted by equine medical hospitals, and horse auction sales authorized by the Board in accordance with Rule 1807 of this Division, will be considered provided such complaints comply with subsections (b), (c) and (d)(1) through (d)(2) of this regulation, and are directly related to the California horse racing operations of a person licensed by the Board.

(1) Financial responsibility complaints submitted by horse farms will be considered provided the complaint is for not less than one thousand dollars and is related to the horse operations of a person licensed by the Board.

(f) Financial responsibility complaints that are horse racing related wage disputes originating between persons licensed by the Board will be considered.

NOTE

Authority cited: Sections 19440 and 19460, Business and Professions Code. Reference: Sections 19440, 19460 and 19461, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 10-4-93; operative 11-3-93 (Register 93, No. 41).

2. Amendment of subsections (a) and (c) and new subsections (e)-(f) filed 6-21-2011; operative 7-21-2011 (Register 2011, No. 25).

§1877. Checks.

No licensee shall write, issue, make or present any check in payment for any license fee, fine, nomination or entry fee or other fees, or for any service or supplies when such licensee knows or should reasonably know that the said check will be refused for payment by the bank upon which it is written, or that the account upon which the check is written does not contain sufficient funds for payment of the said check, or that the check is written on a closed account or a non-existent account. The fact that such a check is returned to the payee by the bank as refused is a ground for suspension pending satisfactory redemption of the returned check.

§1878. Workouts.

No trainer shall permit a horse in his charge to be taken onto the track for training or a workout except during hours designated by the association, and a trainer desiring to engage a horse in a workout shall prior to such workout identify the horse by name when requested to do so by the stewards or their authorized representative.

§1879. Interest in Earnings of Jockey.

No owner or trainer shall have an interest in the earnings of a jockey.

§1880. Gratuity to Starter or Assistant Starter.

No person shall give to any starter or assistant starter, nor shall any starter or assistant starter receive, money, or other compensation, gratuity or reward, in connection with the running of any race or races; except such compensation as salaries received from associations.

§1881. Exclusion of Persons from Race Course.

No person shall enter upon or remain upon the race course the race is to be run over from the time the horses enter the race course from the paddock until the race has been run. This section shall not apply to racing officials, licensees on duty which requires their presence on the course, and such persons who for good cause have been granted permission by the stewards or the Board.

§1883. Jockey Guilty of Foul. [Repealed]

History

HISTORY

1. Repealer filed 8-13-97; operative 9-12-97 (Register 97, No. 33).

§1884. Unsatisfactory Rides.

No jockey shall take his horse back without reasonable cause, or intentionally ride wide on the turns, or otherwise cause his mount to lose ground when there is not reasonable cause for such loss, or otherwise ride in a manner which is inconsistent with using the best efforts of the horse he is riding.

§1885. Rough Riding.

Rough riding is defined as a deliberate act in violation of any riding rule, or any willful or wanton act which is the proximate cause of any racing accident or injury to any jockey or his mount during the running of a race. The stewards shall report to the Board any rough riding.

§1886. Suspended Jockey May Exercise Horses.

During the term of a suspension, a jockey may exercise horses unless denied such privileges by the stewards or the Board.

§1887. Trainer to Insure Condition of Horse.

Note • History

(a) The trainer is the absolute insurer of and responsible for the condition of the horses entered in a race, regardless of the acts of third parties, except as otherwise provided in this article. If the chemical or other analysis of urine or blood test samples or other tests, prove positive showing the presence of any prohibited drug substance defined in Rule 1843.1 of this division, the trainer of the horse may be fined, his/her license suspended or revoked, or be ruled off. In addition, the owner of the horse, foreman in charge of the horse, groom, and any other person shown to have had the care or attendance of the horse, may be fined, his/her license suspended, revoked, or be ruled off.

(b) Notwithstanding the above, if the Board or its agents fail to notify a trainer of a potential positive test within 21 calendar days from the date the sample was taken, the trainer shall not be deemed responsible under this section unless it is shown by the preponderance of the evidence that the trainer administered the drug or other prohibited substance defined in Rule 1843.1 of this division, caused the administration or had knowledge of the administration.

NOTE

Authority cited: Sections 19440, 19580 and 19581, Business and Professions Code. Reference: Sections 19440, 19577, 19580 and 19581, Business and Professions Code.

HISTORY

1. Amendment filed 7-9-92; operative 8-10-92 (Register 92, No. 28).

2. Amendment filed 10-25-94; operative 11-25-94 (Register 94, No. 43).

3. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

4. Amendment of subsection (b) filed 8-8-2005; operative 9-7-2005 (Register 2005, No. 32).

§1888. Defense to Trainer Insurer Rule.

Note • History

A trainer or other person charged with a violation of Rule 1887 of this division may defend, mitigate or appeal the charge if:

(a) He was not, before the commencement of any proceeding against him, informed of the charges being brought against him;

(b) He was not permitted counsel, representation or an advisor of his choosing in any hearing before the stewards concerning the charges;

(c) He shows, by a preponderance of evidence, that he made every reasonable effort to protect the horses in his care from tampering by unauthorized persons; and

(d) He was not permitted to introduce evidence in his own behalf before any finding or ruling was made against him. Nothing herein shall require that the stewards permit cross-examination of any witness appearing before them, or issue subpoenas for the attendance of witnesses.

NOTE

Authority cited: Sections 19440 and 19580, Business and Professions Code. Reference: Sections 19440 and 19580, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1889. Entry to Area Assigned to Trainer.

Note • History

No person shall enter the stalls, shed row, tack rooms, feed sheds and the immediate adjacent area of the locations, unless the person has prior approval of the trainer to whom the locations are assigned by the association. This rule does not apply to racing officials, investigators of the Board, security officers, employees or agents of the association who are on duty, law enforcement or fire protection officers, and employees, agents or representatives of the trainer to whom the locations are assigned.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19420 and 19440, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1890. Possession of Contraband.

Note • History

(a) No person other than a veterinarian licensed by the Board, shall have in his possession at a facility under the jurisdiction of the Board any drug which is a narcotic, stimulant, or depressant, or any other substance or medication that has been prepared or packaged for injection by a hypodermic syringe or hypodermic needle, or any hypodermic syringe or hypodermic needle or similar instrument which may be used for injection.

(b) No person other than a veterinarian licensed by the Board, shall have in his possession at a facility under the jurisdiction of the Board any veterinary treatment or any medicine, medication, or other substance recognized as a medication, which has not been prescribed in accordance with Rule 1840 of this division and labeled in accordance with Rule 1864 of this division.

(c) No person shall have in his possession on the premises during any recognized meeting any electrical stimulating or shocking device commonly known as a battery, or any mechanical stimulating device, or any other appliance, which might affect the speed or actions of a horse.

(d) The stewards may permit the possession of drugs or appliances by a licensee for personal medical needs under such conditions as the stewards may impose.

NOTE

Authority cited: Sections 19420, 19440 and 19580, Business and Professions Code. Reference: Sections 19460, 19580 and 19581, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 1-27-2010; operative 2-26-2010 (Register 2010, No. 5).

§1891. Seizure of Contraband.

Note • History

Investigators of the Board, track security officers, or officials shall confiscate any contraband named in Rule 1890 of this division, and any other drug or device prohibited by federal or state law, from any person within the inclosure who is not in legal possession of the drug or device.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19420, 19440 and 19581, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1892. Bribes.

No person shall give, or offer or promise to give, or attempt to give or offer, any money, bribe or thing of value to any owner, trainer, jockey, agent, or any other person participating in the conduct of a race meeting in any capacity, with the intention, understanding or agreement that such owner, trainer, jockey, agent or other person shall not use his best efforts to win a race or so conduct himself in such race that any other participant in such race shall be assisted or enabled to win such race; nor shall any trainer, jockey, owner, agent or other person participating at any race meeting accept, offer to accept, or agree to accept any money, bribe or thing of value with the intention, understanding or agreement that he will not use his best efforts to win a race or to so conduct himself that any other horse or horses entered in such race shall thereby be assisted or enabled to win such race.

§1893. Best Effort Required. [Repealed]

History

HISTORY

1. Repealer filed 7-23-97; operative 8-22-97 (Register 97, No. 30).

§1894. Duties of Trainer.

Trainers are responsible for the condition of horses in their care and are presumed to know the rules. A trainer represents the owner relative to horses which he is training in the matter of entries, declarations, and the naming of jockeys or drivers, unless the owner notifies the stewards in writing to the contrary. A trainer is responsible for the timely attendance of his horse at the receiving barn and paddock and he shall attend his horse in the paddock and be present to supervise the saddling except when relieved of such duty by the stewards. No trainer shall delegate or sublet his duties as a trainer except as provided in this article, nor shall a trainer have any interest in the earnings, winnings, or bonuses of any other trainer.

§1895. Trainer's Duty to Insure Licensed Participation.

No trainer shall have in his custody within the inclosure of any race meeting any horse owned in whole or in part by any person who is not licensed as a Horse Owner by the Board unless such owner has filed an Application for License as a Horse Owner with the Board and the same is pending before the Board; nor shall any trainer have in his employ within the inclosure any groom, stable employee, stable foreman, agent, or other person required to be licensed, unless such person has a valid license. All changes of employee personnel shall be reported immediately to the Board.

§1896. Assistant or Substitute Trainer.

A trainer who has in his care a substantial number of horses, or who is actively participating in more than one race meeting at one time, may employ an assistant trainer, who shall be equally responsible with the employing trainer for the condition of the horses in their care. The name of the assistant trainer shall be shown on the official program along with that of the employing trainer. If any licensed trainer is prevented from performing his duties by illness or other good cause, and is absent from the track where he is participating, the stewards shall be immediately notified, and at the same time, a substitute trainer, acceptable to the stewards, shall be appointed and such substitute trainer's name shall be shown on the official program if possible. The stewards shall be advised immediately when the regular trainer resumes his duties. A substitute trainer shall be responsible with the regular trainer for the condition of the horses in his care. Assistant and substitute trainers must be licensed trainers.

§1897. Interference with Horses, Racing Participants or Racing Operations.

No person shall directly or indirectly interfere with the leading of horses from the stable area or to the receiving barn or to the paddock or in the parade by throwing any article at such horses, by waving hats or arms, or in any other manner frighten such horses; nor shall any person interfere with, block or impede any racing participant who is then performing his proper duties, nor fight, threaten to fight, or strike at any racing participant who is then performing his duties nor interfere with, block, impede or disrupt any racing operation in any manner.

§1898. Offering False Information for Wagering.

No licensee or employee of a racing association or its concessionaires shall knowingly or designedly by false representation attempt to, or persuade, procure, or cause another person to wager on a horse in a race to be run in this State or elsewhere; nor shall any licensee or employee of a racing association or its concessionaires ask or demand compensation as a reward for any racing selection or purported racing prediction provided to any person for wagering purposes. This shall not apply to the vending of newspapers or to other publications approved by the Board.

§1899. Offenses Requiring Suspension.

Note • History

The stewards shall suspend and refer to the Board any licensee who is within the classes of persons prohibited from participating in pari-mutuel wagering and prohibited from being present within the racing inclosure.

NOTE

Authority cited: Section 19440, Business and Professions Code. Reference: Sections 19440, 19460 and 19461, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1900. Grounds for Suspension or Revocation.

Any provision of any rule which is a ground for denial of a license is also a ground for suspension or revocation of a license.

§1901. Conflicts of Interest.

The stewards shall determine matters involving conflicts of interest among competing participants.

§1902. Conduct Detrimental to Horse Racing.

Note • History

No licensee shall engage in any conduct prohibited by this division nor shall any licensee engage in any conduct which by its nature is detrimental to the best interests of horse racing including, but not limited to:

(a) knowing association with any known bookmaker, known tout, or known felon,

(b) indictment or arrest for a crime involving moral turpitude or which is punishable by imprisonment in the state or federal prison, when such indictment or arrest is the subject of notorious or widespread publicity in the news media, and when there is probable cause to believe the licensee committed the offenses charged,

(c) solicitation of or aiding and abetting any other person to participate in any act or conduct prohibited by this division.

NOTE

Authority cited: Sections 19440, 19460, Business and Professions Code. Reference: Sections 19440, 19460, and 19572, Business and Professions Code.

HISTORY

1. Amendment of section and adoption of Note filed 2-22-93; operative 3-24-93 (Register 93, No. 9).

§1902.5. Animal Welfare.

Note • History

No person under the jurisdiction of the Board shall alone, or in concert with another person, permit or cause an animal under his control or care to suffer any form of cruelty, mistreatment, neglect or abuse. Nor shall such person abandon; injure; maim; kill; administer a noxious or harmful substance to; or deprive an animal of necessary care, sustenance, shelter or veterinary care.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19460 and 19580, Business and Professions Code.

HISTORY

1. New section filed 1-9-2006; operative 2-8-2006 (Register 2006, No. 2).

§1903. Illegal or Improper Use of Communications Equipment or Devices.

Note • History

No person shall use any telephonic, radio, semaphore or other signalling or communication equipment or device to transmit wagering information and/or the results of a race within any racing association, fair or simulcast wagering facility inclosure unless its use has been authorized by the Board. Any communication equipment or device used contrary to this rule is subject to confiscation by an investigator of the Board.

This rule does not prohibit the personal use of the devices for purposes other than the transmission of racing information by any person within the inclosure when permitted by the racing association, fair or simulcast wagering facility.

NOTE

Authority cited: Sections 19440, 19590 and 19595, Business and Professions Code. Reference: Sections 19440, 19590 and 19595, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 9-19-94; operative 10-19-94 (Register 94, No. 38).

2. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1904. Communicating Results of Races. [Repealed]

Note • History

NOTE

Authority: Sections 19440, 19590 and 19595, Business and Professions Code. Reference: Sections 19440, 19590 and 19595, Business and Professions Code.

HISTORY

1. Repealer filed 3-16-92; operative 4-15-92 (Register 92, No. 13).

Article 17. Fire Prevention and Security

§1920. Security Control.

Every association conducting a race meeting shall maintain security controls over its premises and such security controls are subject to the approval of the Board.

§1921. Stable Records Required.

Unless granted exemption by the Board, every association shall maintain stable area records which shall show the entry and departure of non-licensed visitors to the stable area. Such records will specify the name of the visitor and the authorizing licensee for such visit, and will be made available to the Board, its investigators, or the stewards upon demand. Such records will be retained for at least six months.

§1922. Identification Required.

Note • History

Unless the Board permits otherwise, a license, visitor's pass, or other identification issued by the Board or the association shall be visibly displayed by any person within any restricted area. Persons in the stable area of fairs are exempt from this requirement when the stable area of the fair is a part of the general exhibition area for livestock and is exempted by the Board. No person shall use the license or credential issued to another, nor shall any person give or loan his license or credential to any other person.

NOTE

Authority cited: Sections 19440, 19460 and 19510, Business and Professions Code. Reference: Sections 19440, 19460 and 19510, Business and Professions Code.

HISTORY

1. Amendment and new Note filed 4-24-92; operative 5-25-92 (Register 92, No. 18).

§1923. Association Credentials.

Note • History

The racing association may establish a system or method of issuing credentials or passes to restrict access to its restricted areas or to insure that all participants at its meeting are licensed as required by this Division; provided, however, that no such system or methods may exclude any investigator or employee of the Board or any peace officer then on duty, nor shall any person be excluded on the basis of sex, color, creed, or national origin or ancestry.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19420 and 19440, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

§1924. Association to Prevent Unauthorized Access to Restricted Areas.

Unless granted exemption by the Board, every association shall prevent access to and shall remove or cause to be removed from its restricted areas any person who is unlicensed, or who has not been issued a visitor's pass or other identifying credential, or whose presence in such restricted area is unauthorized.

§1925. Exemption for Tour Groups and Fairs.

Note • History

Rules 1921, 1922 and 1924 of this division do not apply to groups of persons who are under the supervision of an authorized guide or official to tour a racing facility, and do not apply to the stable area of any fair when the fair stable area is a part of the general exhibition area for livestock and is exempted by the Board.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19420 and 19440, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1926. Entrance to Jockey Room Prohibited.

Except with permission of the stewards or the Board, no person shall be permitted entrance into the jockey room or driver's room from one hour before post time for the first race until after the last race other than jockeys, drivers, their attendants and valets, racing officials and security officers on duty, and association employees performing required duties.

§1927. Fire Prevention.

Associations shall make adequate provision for fire prevention, protection against fire, and fire suppression within the inclosure. Before any license is granted to any association, each applicant therefor must inform the Board, in detail, of the fire prevention facilities at or available to its inclosure, and particularly its stable area.

When a licensee is unable to stable all the horses participating at its meeting on its grounds, such licensee must advise the Board of the facilities for fire prevention at the additional location where such excess number of horses will be stabled.

A written clearance from the fire authority having jurisdiction, stating that an inspection has been made of the inclosure and any additional location where any excess number of horses will be stalled and that the facilities conform with a reasonable standard of fire safety, shall be filed with the Board prior to the commencement of a race meeting. Such inspection shall have been made within 45 days prior to the commencement of the meeting.

For the purposes of this regulation, a reasonable standard of fire safety shall require that each building, barn or structure which is used by an association for the stabling of horses or human habitation, be equipped with an automatic sprinkler system and an automatic fire alarm system, and that the stable area grounds, including any additional location where any excess number of horses will be stabled, be patrolled by a watchman during the hours of darkness. The type and installation of automatic sprinkler and automatic fire alarm systems shall be of such quality as to afford the protection required by this regulation as determined and approved by the fire authority having jurisdiction. Portable structures or sheds fully open on at least one side, with the approval of the fire authority having jurisdiction, and trailer coaches, campers and unroofed stalls are exempted from the automatic sprinkler and fire alarm requirement, so long as they are located within the effective operating distance of exterior wet standpipe fire hose streams and within 150 feet of a manual fire alarm box.

Any association whose stable area, including any additional location where any excess number of horses will be stabled, does not conform with a reasonable standard of fire safety as defined in this regulation may petition the Board for an extension of time within which to comply with this regulation or exemption from such requirements. In reviewing any such petition, the Board shall take into consideration any written recommendations from the fire authority having jurisdiction as well as all other matters pertinent to the petition, including the fact that the Board recognizes that the physical structure of each racing inclosure is unique and, as such, inherent with its own particular problems. Any extension of time or exemption granted by the Board shall be in writing and may be on such conditions as the Board may deem appropriate.

§1928. Fire Regulations.

Note • History

(a) Every association shall post in its stable and backstretch worker housing areas the fire regulations applicable on its grounds. The association shall also post:

(1) its emergency evacuation plan, which shall state the nearest exit in case of fire or other emergency,

(2) the location of the nearest fire alarm box, and

(3) the telephone number of the fire department or other pertinent instructions as to the method for reporting a fire in the area.

(b) The notices shall be in English and Spanish, and posted no more than 100 feet apart or as approved by the local fire authority.

NOTE

Authority cited: Section 19440, Business and Professions Code. Reference: Sections 19481(a) and 19481.5(b)(1), Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 5-7-2002 as an emergency; operative 5-7-2002 (Register 2002, No. 19). Pursuant to Business and Professions Code section 19481.5(b)(3), a Certificate of Compliance must be transmitted to OAL by 11-7-2003 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 5-7-2002 order transmitted to OAL 8-19-2003 and filed 9-23-2003 (Register 2003, No. 39).

§1929. Examination of Personal Effects.

The Board, its investigators, or racing officials may enter the stables, rooms, or other places within the premises of a recognized meeting to inspect and examine the personal effects and property of any licensee or other person in or about or permitted access to any restricted area; and each licensee in accepting his license, and each person entering such restricted area does thereby consent thereto.

§1930. Obedience to Security Officers and Public Safety Officers.

Note • History

No licensee shall willfully ignore or refuse to obey any lawful order issued by the stewards, the Board, or any security officer of the association, or any public safety officer of any police, fire or law enforcement agency, when such order is issued or given in the performance of duty.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Sections 19420 and 19440, Business and Professions Code; and Sections 337.9 and 830.3(d), Penal Code of California.

HISTORY

1. Amendment of section and new Note filed 1-11-94; operative 2-10-94 (Register 94, No. 2).

Article 18. Pari-mutuel Wagering

§1950. Pari-mutuel Wagering.

Note • History

All forms of wagering, including the daily double, quinella, special quinella or exacta, and similar or other pool systems may only be used with permission of the Board and under the provisions of the Horse Racing Law.

NOTE

Authority cited: Sections 19420, 19440 and 19590, Business and Professions Code. Reference: Sections 19420, 19440 and 19590, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending article heading, section heading and section and adding new Note filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1950.1. Rebates on Wagers. [Repealed]

Note • History

NOTE

Authority: Sections 19420, 19440 and 19602, Business and Professions Code. Reference: Sections 19420, 19440 and 19602, Business and Professions Code.

HISTORY

1. New section filed 5-21-96; operative 6-20-96 (Register 96, No. 21).

2. Repealer filed 7-21-2009; operative 8-20-2009 (Register 2009, No. 30).

§1951. Pari-mutuel Tickets.

Note • History

A pari-mutuel ticket is evidence of a contribution to the pari-mutuel pool operated by the licensee association and of the obligation of the association to pay to the holder thereof the portion of the distributable amount of the pari-mutuel pool represented by the valid pari-mutuel ticket. The association shall cash all valid unmutilated winning tickets when the tickets are presented for payment during the course of the meeting where sold, and until May 15 of the year following the year in which the meeting ends.

(a) To be deemed valid, a pari-mutuel ticket shall have been issued by a pari-mutuel ticket machine operated by the association, recorded as a ticket entitled to a share of the pari-mutuel pool, and contain imprinted information as to:

(1) The name of the association operating the meeting.

(2) The date of the wagering transaction.

(3) A unique identifying number or code word.

(4) The race number for which the pool is conducted.

(5) The type(s) of wagers represented.

(6) The number(s) representing the wagering interests for which the wager is recorded.

(7) The amount(s) of the contributions to the pari-mutuel pool for which the ticket is evidence.

(b) Pari-mutuel tickets recorded or reported as previously paid, canceled, or non-existent shall not be deemed valid by the association.

(c) The association may withhold payment and refuse to cash any pari-mutuel ticket deemed not valid or which is presented for payment by a person believed to be other than the person who contributed to the pari-mutuel pool as represented by the pari-mutuel ticket.

NOTE

Authority cited: Section 19590, Business and Professions Code. Reference: Sections 19592 and 19598, Business and Professions Code.

HISTORY

1. Repealer and new section filed 5-12-82; effective thirtieth day thereafter (Register 82, No. 20).

2. Amendment of first paragraph, subsection (a)(5) and subsection (c) filed 1-27-93; operative 2-26-93 (Register 93, No. 5).

3. Amendment of first paragraph filed 11-14-95; operative 12-14-95 (Register 95, No. 46).

4. Change without regulatory effect amending section heading and section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1951.1. Totalizator Systems.

Note • History

For the purposes of compatibility for totalizator systems operating in California, totalizator companies shall provide:

(a) Systems that electronically transfer wagering information to all other totalizator systems merging parimutuel pools with California racing associations, both intrastate and interstate.

(b) Systems that include a daily electronic download of parimutuel data directly to the horse racing data base, as designated by the Board.

(c) A daily history of individual totalizator transactions in a computer readable medium for each race meeting for a minimum of one year after the conclusion of the meet.

NOTE

Authority cited: Sections 19590, 19592.5 and 19642, Business and Professions Code. Reference: Sections 19592.5 and 19593, Business and Professions Code.

HISTORY

1. New section filed 6-22-95; operative 7-22-95 (Register 95, No. 25).

§1952. Claim for Payment from Parimutuel Pool.

Note • History

A written, verified claim for payment from a parimutuel pool shall be accepted by the licensee association in any case where the association has withheld payment or has refused to cash a parimutuel ticket presented for payment. The claim shall be made on such form as approved by the Board and the claimant shall make such claim under penalty of perjury. The original of such claim shall be promptly forwarded to the Board.

(a) In the case of a claim made for payment of a mutilated parimutuel ticket which does not contain the total imprinted elements required in Section 1951, the association shall make a recommendation to accompany the claim forwarded to the Board as to whether or not the mutilated ticket has sufficient elements to be positively identified as a winning ticket.

(b) In the case of a claim made for payment of a parimutuel ticket, the Board shall adjudicate the claim and may order payment thereon from the parimutuel pool or by the association or may deny the claim or may make such other Order as it may deem proper.

NOTE

Authority cited: Section 19590, Business and Professions Code. Reference: Sections 19592 and 19598, Business and Professions Code.

HISTORY

1. Repealer and new section filed 5-12-82; effective thirtieth day thereafter (Register 82, No. 20).

§1953. Lost or Destroyed Tickets.

No claim for a lost or destroyed parimutuel ticket shall be accepted by the association or the Board.

§1954. Parimutuel Pools.

The association shall provide, win, place and show pools in any race in which there are five or more separate wagering interests which are obligated to start. The association shall provide win and place pools where there are four separate wagering interests which are obligated to start. The association shall provide a win pool only in any race where less than four separate wagering interests are obligated to start. Upon a showing of good cause, the Board may waive the requirement for a place or show pool in any race.

§1954.1. Parlay Wagering on Win, Place or Show.

Note • History

(a) The parlay is not a separate pari-mutuel pool, it is a series of wagers (consisting of legs) combining wagering entries in Win, Place or Show pools. The initial amount wagered constitutes the wager on the first leg, and if successful, the payout from the first leg constitutes the wager on the second leg, etc.

(b) A parlay wager is limited to Win, Place or Show which have a corresponding pool conducted on the race selected. The wager must combine at least two races but not more than six races. The races in a parlay must be in chronological order but do not need to be consecutive races or combine the same type pool.

(c) A parlay wager may only be on one pool and one wagering interest per leg and can not combine wagers on races on other days.

(d) Payouts included as wagers in subsequent races and the final payout to the parlay wagerer shall be broken to the nearest dime. Parlay breakage shall be reported separately and added to regular breakage at the end of the day for the purpose of taxation and distribution.

(e) Parlay payouts will be included as wagers in subsequent pools by the track operator so the amount of such wagers, including their impact on the wagering odds, will be displayed. Wager totals in such pools shall be displayed in truncated fashion, to the lowest dollar.

(f) Parlay wagers may be cancelled by the ticket holder, in accordance with track policy, only before the start of the first parlay leg in which a parlay selection starts. Parlay wagers not cancelled must be completed or terminated by operation of these rules in order to be entitled to a payout.

(g) If a wagering interest in a parlay is scratched, which includes being declared a non-starter for wagering purposes, or if a wagering interest is designated to run for purse only in accordance with Rule 1974 of this article, or a race or pool is scratched or cancelled, the parlay shall consist of the remaining legs. The parlay terminates if there are no remaining legs.

NOTE

Authority cited: Section 19590, Business and Professions Code. Reference: Sections 19594, 19597 and 19598, Business and Professions Code.

HISTORY

1. New section filed 2-8-95; operative 2-8-95 (Register 95, No. 6).

2. Change without regulatory effect amending subsections (a), (d), (e) and (f) filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

3. Amendment of subsections (a) and (g) and repealer of subsection (h) filed 7-12-2011; operative 8-11-2011 (Register 2011, No. 28).

§1955. Distribution of Pools.

Note • History

After the results of the race have been declared official by the Stewards, the parimutuel pools are subject to distribution to the holders of parimutuel tickets entitled to share in the respective pools in accordance with the provisions of the Horse Racing Law and this Division. When only two horses finish in a race, the show pool, if any, shall be distributed the same as in a place pool. When only one horse finishes in a race the place pool and show pool, if any, shall be distributed the same as in a win pool. In any race in which no horse finishes, or which is declared as no contest by the Stewards, all money wagered on the race shall be refunded to the respective ticket holders.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Section 19590, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

§1956. Race Declared Official.

Note • History

The decision of the Stewards regarding the order of finish is final at the time the Stewards order the official sign displayed on the totalizator board. No rulings of the Stewards or the Board regarding the order of finish or any award of purse money made after the result of the race has been declared official shall affect the parimutuel payout or the distribution of any parimutuel pool.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Section 19590, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

§1957. Daily Double.

Note • History

(a) The Daily Double is a separate pari-mutuel pool established on two (2) races. The pool consists of amounts wagered on the selection of the winning horse of both races. It is not a parlay and has no connection with or relation to other pools conducted by the association or to rules governing the distribution of other pools.

(b) A valid Daily Double ticket shall be evidence of a binding contract between the holder of the ticket and the association and shall constitute an acceptance of Daily Double provisions and rules contained in this Article.

(c) The association shall distribute the net pool to holders of valid tickets that correctly selected the winner of both races. If no ticket selected the winner of both races, the net pool shall be distributed as a place pool among tickets that included the winner of the first race and tickets that included the winner of the second race.

(d) If no ticket included the winner of the first race the net pool shall be distributed equally among tickets that included the winner of the second race; and, if no ticket included the winner of the second race the net pool shall be distributed equally among tickets that included the winner of the first race.

(e) If no ticket included the winner of either race, the net pool shall be distributed equally among tickets selecting the second place finishers of both races.

(f) The association shall refund the entire pool if no ticket requires a payout or if the first race is cancelled.

(g) If the second race is cancelled after the first race has been completed, the net pool shall be distributed as a single price pool among tickets selecting the winner of the first race.

(h) Before the first race is run, any money wagered on a horse in either race that is scratched, excused by the stewards, prevented from racing or is designated to run for purse only in accordance with Rule 1974 of this article shall be deducted from the pool and refunded.

(i) If, after the first rare is completed, any horse is scratched, excused by the stewards or prevented from racing because of the failure of the stall doors of the starting gate to open in the second race, or designated to run in the second race for purse only in accordance with Rule 1974 of this article, all tickets including such horse(s) shall be deducted from the pool, and the pool(s), thus formed shall be distributed as a straight pool(s) among tickets combining the winner of the first race with such horse(s).

(j) If a dead heat occurs in either race the net pool is figured as a place pool. Example: Number eight (8) and five (5) dead heat in the first race, and number three (3) wins the second race, the pool would be divided and apportioned to tickets bearing eight (8) and (3), and five (5) and three (3).

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Sections 19590, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 5-30-96; operative 6-29-96 (Register 96, No. 22).

2. Editorial correction of subsection (i) (Register 2011, No. 27).

3. Amendment of subsections (a) and (h)-(i), repealer of subsection (j) and subsection relettering filed 7-12-2011; operative 8-11-2011 (Register 2011, No. 28).

§1958. Quinella.

Note • History

(a) The Quinella is not a parlay and has no connection with or relation to the win, place and show pools shown on the totalizator board. All tickets on the Quinella will be calculated in a separate pool.

(b) All Quinella tickets will be for the win and place combination only. When purchasing a Quinella ticket two horses are selected, which must finish 1-2, or 2-1. For example, if numbers 3 and 6 are selected they must come in 3, first and 6, second, or 6, first and 3, second.

(c) Entries or field horses in a race comprising the Quinella shall race as single wagering interests for the purposes of mutuel pool calculations and payouts to the public. If, in the event that any part of the entry or the field is a starter, there shall be no refund to persons wagering on such entry or field. In the event any part of an entry or the field finishes first, the order of finish of all other horses making up such entry or field will be disregarded in determining which horse finished second for the purpose of this rule.

(d) Should any horse or horses entered in a Quinella race be scratched or excused by the Stewards after wagering has commenced or should any horse or horses be prevented from racing because of the failure to stall doors of the starting gate to open, all tickets including such horse or horses shall be deducted from the Quinella Pool and money refunded to the purchasers of tickets on the horse or horses so excused or prevented from racing.

(e) Should there be no tickets sold on the winning combination in a Quinella race, any and all Quinella tickets bearing the number of the individual win horse and any and all Quinella tickets bearing the number of the individual place horse shall be deemed winning tickets and the payout shall be calculated as a place pool.

(f) Should there be no tickets sold on the winning combination in a Quinella race and should there be no Quinella tickets sold bearing the number of the individual win horse, any and all Quinella tickets bearing the number of the individual place horse shall be deemed winning tickets and the payout shall be calculated as a win pool.

(g) Should there be no tickets on the winning combination in a Quinella race, and should there be no Quinella tickets sold bearing the number of the individual place horse, any and all Quinella tickets bearing the number of the individual win horse shall be deemed winning tickets and the payout shall be calculated as a win pool.

(h) Should there be no tickets on the winning combination in a Quinella race, and should there be no Quinella tickets sold bearing the number of the individual win horse, and should there be no Quinella tickets sold bearing the number of the individual place horse, the Quinella shall be deemed “No Contest” and all money in the Quinella shall be promptly refunded.

(i) Should, after an official start is effected, only one horse finish the Quinella race, the total money is figured as a win pool, with those who have picked that one horse in the race participating in the pool.

(j) Should a two horse dead-heat for win result in a Quinella race, the two horses involved in the dead-heat shall be winners of the Quinella race.

(k) Should a multiple dead-heat for win result in a Quinella race, all horses involved in the dead-heat shall be winners of the Quinella race and payouts figured accordingly.

Example: Should numbers 1, 3 and 5 dead-heat for win, the winning Quinella combinations would be 1-3, 1-5, 3-1, 3-5, 5-1 and 5-3. The net pool after deducting the amounts wagered on the winning combinations will be equally distributed in payout calculations on the winning combinations.

(l) Should a two-horse dead-heat for place result in a Quinella race, the total pool is calculated as a place pool.

(m) Should a multiple dead-heat for place result in a Quinella race, all combinations coupling the winning horse with the individual place horses shall be winners of the Quinella race and payouts calculated accordingly.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Section 19590, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending subsections (a), (e), (f), (g), (k) and (m) and adding new Note filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

§1959. Special Quinella (Exacta).

Note • History

(a) The Special Quinella is not a parlay and has no connection with or relation to the win, place and show pools shown on the totalizator board. All tickets on the Special Quinella will be calculated in a separate pari-mutuel pool.

(b) A Special Quinella race shall be given a distinctive name to be selected by the association conducting such race, such as “Perfecta” or “Exacta,” subject to the approval of the Board.

(c) All Special Quinella tickets will be for the win and place combination only. Each person purchasing a Special Quinella ticket shall designate the exact order in which the first two horses will finish in a Special Quinella race. For example, if number 3 is selected to finish first and number 6 is selected to finish second, they must come in number 3, first and number 6 second in order to win.

(d) Should any horse or horses entered in a Special Quinella race be scratched or excused by the stewards after wagering has commenced or should any horse or horses be prevented from racing because of the failure of the stall doors of the starting gate to open, or if a horse is designated to run for purse only in accordance with Rule 1974 of this article, all tickets including such horse or horses shall be deducted from the Special Quinella Pool and money refunded to the purchasers of tickets on the horse or horses so designated, excused or prevented from racing.

(e) In the event that no ticket is sold on the winning combination of a Special Quinella Pool, the net pool shall be distributed equally among holders of tickets selecting the winning horse to finish first and holders of tickets selecting the second place horse to finish second.

(f) In the event of a dead-heat between two horses for first place, the net pool shall be calculated and distributed as a place pool to holders of the winning combinations.

(g) In the event of a dead-heat for second place, if no ticket is sold on one of the two winning combinations, the entire net pool shall be calculated as a win pool and distributed to those holding tickets on the other winning combinations. If no tickets combine the winning horse with either of the place horses in the dead-heat the Special Quinella Pool shall be calculated and distributed to holders of tickets designating the winning horse or either of the place horses according to their respective interest in the net pool.

(h) In the event of a dead-heat among three or more horses for first place, the net pool shall be calculated and distributed to holders of tickets designating any two of the horses participating in the dead-heat according to their respective interest in the net pool.

(i) In the event that no ticket is sold that would require distribution to any winner as above defined the Special Quinella shall be deemed “No Contest” and all money in the Special Quinella shall be promptly refunded.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Section 19590, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending subsections (a) and (h) and adding new Note filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

2. Amendment of subsection (a), repealer of subsections (d) and (h), subsection relettering and amendment of newly designated subsection (d) filed 7-12-2011; operative 8-11-2011 (Register 2011, No. 28).

§1959.5. Special Sweepstakes. [Repealed]

Note • History

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Section 19594, Business and Professions Code.

HISTORY

1. New section filed 4-29-80 as an emergency; effective upon filing (Register 80, No. 18). A Certificate of Compliance must be transmitted to OAH within 120 days or emergency language will be repealed on 8-28-80.

2. Certificate of Compliance filed 8-22-80 (Register 80, No. 34).

3. Editorial correction of subsections (h) and (o) (Register 80, No. 40).

4. Amendment filed 10-31-86; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 86, No. 44).

5. Amendment of subsection (f) filed 5-16-88; operative 6-15-88 (Register 88, No. 21).

6. Change without regulatory effect amending subsections (a), (b), (f)(1), (f)(2) and (h) filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

7. Repealer filed 12-5-2005; operative 1-4-2006 (Register 2005, No. 49).

§1959.6. Limited Sweepstakes. [Repealed]

Note • History

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Sections 19590, 19593 and 19594, Business and Professions Code.

HISTORY

1. New section filed 3-30-83 as an emergency; effective upon filing (Register 83, No. 15).

2. Order of Repeal of 3-30-83 emergency order filed 4-8-83 by OAL pursuant to Government Code Section 11349.6 (Register 83, No. 15).

3. New section filed 6-23-83; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 83, No. 26).

4. Amendment filed 12-2-85; effective thirtieth day thereafter (Register 85, No. 49.)

5. Change without regulatory effect amending subsections (b) and (g) filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

6. Repealer filed 12-5-2005; operative 1-4-2006 (Register 2005, No. 49).

§1959.7. Pick Seven. [Repealed]

Note • History

NOTE

Authority: Sections 19440 and 19590, Business and Professions Code. Reference: Sections 19590, 19593 and 19594, Business and Professions Code.

HISTORY

1. New section filed 10-10-91; operative 10-10-91 pursuant to Government Code section 11346.2(d) (Register 92, No. 2).

2. Change without regulatory effect amending subsection (g) filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

3. Repealer filed 12-5-2005; operative 1-4-2006 (Register 2005, No. 49).

§1959.8. Pick 6 One Pool. [Repealed]

Note • History

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Sections 19440, 19590 and 19593, Business and Professions Code.

HISTORY

1. New section filed 11-20-97; operative 12-20-97 (Register 97, No. 47).

2. Repealer filed 12-5-2005; operative 1-4-2006 (Register 2005, No. 49).

§1960. Payout on Minus Pools.

Note • History

The association must pay to the holder of any ticket or tickets entitling him to participate in the distribution of a parimutuel pool the amount wagered by such holder plus a minimum of 5% thereof. This requirement is unaffected by the existence of a parimutuel pool which does not contain sufficient money to distribute said 5% to all persons holding such tickets.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Section 19590, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section heading and adding new Note filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

§1961. Errors in Posted Payout.

Note • History

If an error is discovered in the payout amounts posted on the public board it shall be corrected promptly and an announcement thereof shall be made over the public address system. After the error is discovered the correct amounts shall be used in the payout.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Section 19590, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section heading and section and adding new Note filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

§1962. Payment for Errors.

If an error occurs in the payment amounts for parimutuel tickets which are cashed or entitled to be cashed and as a result of such error the parimutuel pool involved in the error is not correctly distributed among winning ticket holders, the following shall apply:

(a) In the event the error results in an over-payment to ticket holders the association shall be responsible for such payment.

(b) In the event the error results in an under-payment to ticket holders:

(1) The association shall accept timely claims for such under-payment, shall investigate such claims and shall pay each claim, or a part thereof, which it determines to be valid, and shall notify the claimant if his claim is rejected as invalid.

(2) Any person whose claim is rejected by the association may, within 15 days from the date he received the notice of rejection, request the Board to determine the validity of the claim. The failure to file such request with the Board within the said time shall constitute a waiver of the claim.

(3) A hearing shall be held on each such rejected claim timely filed with the Board. The Board shall give notice of such hearing to the claimant and the association. The Board may determine a claim to be valid, in whole or in part, and thereafter order the association to pay to the claimant the amount of the claim determined to be valid, or may deny the claim in whole or in part. Any such determination shall be final and binding on all parties.

(4) If no valid claims are presented for the amount of the under-payment or any part thereof, the amount of the under-payment shall be paid to the Board.

(c) Any claim not filed with the association within 30 days inclusive of the date on which the under-payment was discovered shall be deemed waived and the association shall have no further liability therefor.

§1963. Emergency in Parimutuel Department.

Note • History

Should any emergency arise in connection with the operation of the parimutuel department of the association, not covered by this Division, and an immediate decision is necessary, the manager of the parimutuel department shall make the decision and shall make an explanation in detail in a written report to the Board.

NOTE

Authority cited: Section 19440, Business and Professions Code. Reference: Section 19440, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

§1964. Cooperation of Parimutuel Department.

The parimutuel manager and the representatives of any totalisator company or service providing parimutuel equipment or service at any race meeting, shall cooperate fully in any investigation of the Board or in any proceedings before the Board relating to any parimutuel operation.

§1965. Acceptance of Wagers from Outside Inclosure.

No association shall accept mailed or telephoned wagers nor knowingly accept any wager made by or for a person who is prohibited from participating in parimutuel wagering.

§1966. Probable Odds or Morning Line.

The association shall calculate and print on the official program the probable win odds for each wagering interest in each race. Probable odds are subject to the approval of the stewards.

§1967. Closing of Wagering in a Race.

History

Coincident with the start of a race, the stewards shall lock the parimutuel machines and shall close the wagering in the race, after which time no parimutuel tickets shall be sold for the race. The association shall maintain in good order an electrical or other system approved by the Board for locking the parimutuel machines.

HISTORY

1. Amendment filed 4-11-78 as procedural and organizational; designated effective thirtieth day thereafter (Register 78, No. 15).

§1968. Wagering by Minors Prohibited.

No minor shall purchase or cash any parimutuel ticket. No employee of the association shall knowingly sell to or cash for a minor any parimutuel ticket.

§1969. Wagering Prohibited.

Note • History

No racing official or assistant racing official, pari-mutuel employee, totalizator employee, simulcast facility supervisor or assistant simulcast facility supervisor, official camera operator, assistant starter, receiving or detention barn staff member, or employee of the Board, while on duty at a race meeting or simulcast wagering facility, shall wager on the result of a race.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Section 19562, Business and Professions Code.

HISTORY

1. Amendment filed 10-4-90; operative 11-3-90 (Register 90, No. 45).

2. Editorial correction of printing error (Register 92, No. 24).

3. Amendment filed 4-6-94; operative 5-6-94 (Register 94, No. 14).

4. Amendment of section and Note filed 12-10-2001; operative 1-9-2002 (Register 2001, No. 50).

§1970. Wagering on Competing Horse.

Note • History

No owner, authorized agent or trainer having a horse entered in a race shall wager on, or include in any wager, any other horse competing in such races to finish first regardless of whether such wager is “exotic” or “conventional.” No employee or representative of an owner, authorized agent or trainer having a horse entered in a race shall wager on, or include in any wager, any other horse competing in such races to finish first regardless of whether such wager is “exotic” or “conventional.”

(a) When an owner, authorized agent, trainer, jockey, or driver submits a winning parimutuel ticket for cash redemption it shall be prima facie evidence that the person submitting the ticket made the wager shown on the winning ticket.

NOTE

Authority cited: Section 19590, Business and Professions Code. Reference: Sections 19590 and 19593, Business and Professions Code.

HISTORY

1. Amendment filed 1-27-92; operative 2-26-92 (Register 92, No. 12).

2. Amendment of first paragraph and new subsection (a) filed 11-21-94; operative 12-21-94 (Register 94, No. 47).

§1971. Wagering by Jockey or Driver.

Note • History

No Jockeys or drivers shall make any wagers, or have any wagers made in their behalf, in any race in which they participate, except through the owners or trainers on the horses which they ride or drive. Any owners or trainers wagering for such jockeys or drivers shall maintain records of all such wagers and all other presents or other gratuities given any jockeys or drivers. Such records will be furnished to the stewards or the Board or its investigators upon demand.

NOTE

Authority cited: Section 19590, Business and Professions Code. Reference: Sections 19590 and 19593, Business and Professions Code.

HISTORY

1. Amendment of section heading and text and new Note filed 10-26-94; operative 11-25-94 (Register 94, No. 43).

2. Change without regulatory effect amending section filed 11-26-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 48).

§1972. Dead Heat.

When a race results in a dead heat, the dead heat shall not be run off. When two horses run a dead heat for first place, both win and place pools shall be distributed as place pools; when two horses run a dead heat for second, one-half the place pool shall be distributed among the holders of place tickets on the winning horse, and one-quarter of the place pool shall be distributed among the holders of place tickets on each of the two horses finishing second. In each such case, the show pool shall be distributed among the holders of tickets for show on the first three horses which finish. In the event of a dead heat for show, one-third of the show pool will be distributed among holders of tickets on the horses which dead heat for third.

§1973. Purses for Dead Heats.

Purses, prizes or awards for a race in which a dead heat has occurred shall be divided equitably by determination of the stewards.

§1974. Wagering Interest.

Note • History

(a) A wagering interest is any one horse in a race.

(b) If a horse is removed from the wagering pool due to a totalizator error, or due to any other error, and neither the trainer nor the owner is at fault, the horse shall start in the race as a non-wagering interest for the purse only and shall be disregarded for pari-mutuel purposes.

(c) If a horse is removed from the wagering pool to start in a race as a non-wagering interest for purse only and is disregarded for pari-mutuel purposes, the circumstances shall be announced over the public address system at the time the action is taken and thereafter to adequately inform the public. The racing association shall also inform off-track wagering outlets at the time such action is taken.

NOTE

Authority cited: Sections 19420 and 19440, Business and Professions Code. Reference: Section 19562, Business and Professions Code.

HISTORY

1. Redesignation and amendment of section as subsection (a) and new subsections (b)-(c) and Note filed 7-12-2011; operative 8-11-2011 (Register 2011, No. 28).

§1975. Evidence of Pool Distribution.

In the event of loss by the association, its agent or employees, of any evidence of proper distribution of parimutuel pools, including, but not limited to, parimutuel tickets which have been cashed, outs ledgers, parimutuel machine recording registers, or cashier out-slips, the association shall file with the Board within 72 hours of the discovery of the loss a report and supporting affidavits. The Board may approve the report of loss without hearing or may hear the matter in its discretion.

§1976. Unlimited Sweepstakes.

Note • History

(a) The Unlimited Sweepstakes pari-mutuel pool is not a parlay and has no connection with or relation to any other pari-mutuel pool conducted by the association, nor to any win, place and show pool shown on the totalizator, nor to the rules governing the distribution of such other pools.

(b) An Unlimited Sweepstakes pari-mutuel ticket shall be evidence of a binding contract between the holder of the ticket and the association and the said ticket shall constitute an acceptance of the Unlimited Sweepstakes provisions and rules contained in article 18.

(c) An Unlimited Sweepstakes may be given a distinctive name by the association conducting the meeting, subject to approval of the Board.

(d) The Unlimited Sweepstakes pari-mutuel pool consists of amounts contributed for a selection for win only in each of nine races designated by the association with the approval of the Board. Each person purchasing an Unlimited Sweepstakes ticket shall designate the winning horse in each of the nine races comprising the Unlimited Sweepstakes.

(e) The Unlimited Sweepstakes pari-mutuel pool shall be calculated as follows:

(1) One hundred percent (100%) of the net amount in the pari-mutuel pool subject to distribution among winning ticket holders shall be distributed among the holders of pari-mutuel tickets which correctly designate the official winner in each of the nine races comprising the Unlimited Sweepstakes.

(2) In the event there is no pari-mutuel ticket properly issued which correctly designates the official winner in each of the nine races comprising the Unlimited Sweepstakes, twenty-five percent (25%) of the net amount in the pari-mutuel pool shall be distributed among the holders of pari-mutuel tickets which correctly designate the most official winners, but less than nine, in each of the nine races comprising the Unlimited Sweepstakes, and the remaining seventy-five percent (75%) of the net amount in the pari-mutuel pool shall not be distributed as provided above but shall be retained by the association as distributable amounts and shall be carried over and included in the Unlimited Sweepstakes pari-mutuel pool for the next succeeding racing date as an additional net amount to be distributed as provided in subsection (e)(1).

(f)(1) Except as provided in subsection (j) and subsection (l), should no distribution be made pursuant to subsections (e)(1), then the distributable pool and all monies accumulated therein shall be carried over until that amount equals or exceeds five million dollars ($5,000,000) or such lesser amount as the racing association designates to the Board at the time it files its license application with the Board.

(2) Once the pool and all monies accumulated therein equals or exceeds five million dollars, or such lesser amount designated by the racing association pursuant to subsection (f)(1), that amount shall be distributed on the next racing day as provided in subsection (e)(1); but if no holder of pari-mutuel tickets correctly designates the official winner in each of the nine races comprising the Unlimited Sweepstakes, then seventy-five percent (75%) of the pool shall be distributed among the holders of pari-mutuel tickets which correctly designate the most official winners, but less than nine, in each of the nine races comprising the Unlimited Sweepstakes. The remaining twenty-five percent (25%) of the pool shall be distributed to those holders of pari-mutuel tickets which correctly designate the next greatest number of official winners.

(g) In the event an Unlimited Sweepstakes ticket includes a selection in any one or more of the races comprising the Unlimited Sweepstakes that is scratched, excused or determined by the stewards to be a nonstarter in the race, or if in a race comprising the Unlimited Sweepstakes any selection is designated to run for purse only in accordance with Rule 1974 of this article, the actual favorite, as evidenced by the amounts wagered in the win pool at the time of the start of the race, will be substituted for the nonstarting or the designated selection for all purposes, including pool calculations and payouts.

(h) In the event of a dead heat for win between two or more horses in any Unlimited Sweepstakes race, all such horses in the dead heat for win shall be considered as winning horses in the race for the purpose of calculating the pool.

(i)(1) In the event that all nine races comprising the Unlimited Sweepstakes are cancelled or declared as no contest, all pari-mutuel tickets held on the Unlimited Sweepstakes for that day or night shall be refunded and the Unlimited Sweepstakes shall be cancelled in its entirety for that day or night and any retained distributable amounts carried over from any prior Unlimited Sweepstakes pool pursuant to subsection (e)(2) shall be carried over to the next succeeding racing date of that meeting.

(2) In the event that fewer than nine, but no more than three, races comprising the Unlimited Sweepstakes are completed due to the cancellation of one or more races or the stewards declaring one or more races as no contest, the pool for that racing day shall be refunded and the Unlimited Sweepstakes shall be cancelled in its entirety as provided in subsection (i)(1).

(3) In the event that fewer than nine, but no fewer than four, races comprising the Unlimited Sweepstakes are completed due to the cancellation of one or more races or the stewards declaring one or more races as no contest, one hundred percent (100%) of the net amount in the pari-mutuel pool for that day or night, exclusive of any retained distributable amounts carried over from any prior Unlimited Sweepstakes pool pursuant to subsection (e)(2), shall be subject to distribution among holders of pari-mutuel tickets which correctly designate the most winners in the completed races of the Unlimited Sweepstakes. The retained distributable amounts carried over from any prior Unlimited Sweepstakes pool pursuant to subsection (e)(2) shall be carried over to the next succeeding racing date of that meeting.

(j)(1) Should no distribution be made pursuant to subsection (e)(1) on the last day of the association's race meeting, then the distributable pool and all monies accumulated therein shall be distributed on that day. Seventy-five percent (75%) of the pool shall be distributed among holders of pari-mutuel tickets which correctly designate the most official winners, but less than nine, in each of the nine races comprising the Unlimited Sweepstakes. The remaining twenty-five percent (25%) of the pool shall be distributed to those holders of pari-mutuel tickets which correctly designate the next greatest number of official winners.

(2) In the event that an association is unable to distribute the retained distributable amount carried over from any prior Unlimited Sweepstakes pool established pursuant to subsection (e)(2) by the end of its race meeting due to cancellation of the final day(s) or night(s) of racing or any other reason, the retained distributable amount shall be carried forward to the next race meeting having an Unlimited Sweepstakes at the same location and of the same breed of horse as the racing association that generated the retained distributable amount. The retained distributable amount shall be included in the Unlimited Sweepstakes pool for the first day or night of racing at the subsequent race meeting.

(k) No pari-mutuel ticket for the Unlimited Sweepstakes pool shall be sold, exchanged or cancelled after the time of the closing of wagering in the first of the nine races comprising the Unlimited Sweepstakes, except for such refunds on Unlimited Sweepstakes tickets as required by this regulation, and no person shall disclose the number of tickets sold in the Unlimited Sweepstakes pool or the number or amount of tickets selecting winners of Unlimited Sweepstakes races until such time as the stewards have determined the last race comprising the Unlimited Sweepstakes each day to be official.

(l) The racing association may, at its election, designate to the Board, at the time it files its license application with the Board, one or more racing days (nights) during its racing meeting on which the retained distributable amount carried over from any prior Unlimited Sweepstakes pool established pursuant to subsection (e)(2), shall be distributed as provided in subsection (f)(2), even though the retained amount is less than the amount specified in or designated by the racing association pursuant to subsection (f)(1).

NOTE

Authority cited: Sections 19420, 19440 and 19590, Business and Professions Code. Reference: Section 19590, Business and Professions Code.

HISTORY

1. New section filed 10-2-85; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 85, No. 40).

2. Amendment filed 5-16-88; operative 6-15-88 (Register 88, No. 21).

3. Change without regulatory effect amending subsections (a) and (h) filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

4. Amendment filed 7-12-2011; operative 8-11-2011 (Register 2011, No. 28).

§1976.5. Special Unlimited Sweepstakes. [Repealed]

Note • History

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Section 19590, Business and Professions Code.

HISTORY

1. New section filed 11-4-86; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 86, No. 48).

2. New subsection (m) filed 11-28-88; operative 12-28-88 (Register 88, No. 51).

3. Change without regulatory effect amending subsections (a), (b) and (h) filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

4. Repealer filed 12-5-2005; operative 1-4-2006 (Register 2005, No. 49).

§1976.7. Special Reserved Unlimited Sweepstakes. [Repealed]

Note • History

NOTE

Authority cited: Sections 19420, 19440 and 19590, Business and Professions Code. Reference: Section 19590, Business and Professions Code.

HISTORY

1. New section filed 11-23-88; operative 12-23-88 Register 88, No. 51).

2. Change without regulatory effect amending subsections (a) and (h) filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

3. Repealer filed 12-5-2005; operative 1-4-2006 (Register 2005, No. 49).

§1976.8. Place Pick (n).

Note • History

(a) The Place Pick (n) is a separate pari-mutuel pool established by the association on a designated number of races. The pool consists of amounts wagered on a horse to finish first or second in each of the races. It is not a parlay and has no connection with or relation to other pools conducted by the association, except for the provisions in subsection (e), or to rules governing the distribution of other pools.

(b) A valid Place Pick (n) ticket shall be evidence of a binding contract between the holder of the ticket and the association and shall constitute an acceptance of Place Pick (n) provisions and rules contained in this Article.

(c) A Place Pick (n) may be given a distinctive name by the association conducting the meeting, subject to Board approval.

(d) If a ticket in any Place Pick (n) race designates a selection that is scratched, excused or determined by the stewards to be a nonstarter in the race, or designates a selection that runs for purse only in accordance with Rule 1974 of this article, the association may substitute the actual favorite, which is determined by the amounts wagered in the win pool at the time of the start of the race, or may allow patrons the option of selecting an alternate wagering interest. The actual favorite or the alternate wagering interest will be substituted for the non-starting selection or the selection designated to run for purse only for all purposes.

(e) In a dead heat for win between two or more horses, only the horses in such dead heat shall be considered winning horses.

(2) Except as provided in subsection (e), a dead heat for second between two or more horses, all such horses together with the horse which finished first shall be considered winning horses.

(f) The association shall distribute the net pool to holders of valid tickets that correctly selected the most first or second place finishers.

(g) All tickets shall be refunded if all races comprising the Place Pick (n) are cancelled or declared as no contest. The entire pool shall be refunded if less than four races are completed and if four or more races are completed the net pool shall be distributed pursuant to subsection (f).

(h) After wagering closes on the first race comprising the Place Pick (n) no ticket shall be sold, exchanged or cancelled. No person shall disclose the number of tickets sold in the Place Pick (n) or the number or amount of tickets that selected winners of Place Pick (n) races until the stewards declare the last race official.

(i) If the racing surface changes from turf to dirt or dirt to turf in any race of a Place Pick (n), and such change is not announced to the public before the close of wagering on the Place Pick (n) pool, all wagers on such race shall be considered winning wagers for the purposes of the Place Pick (n).

NOTE

Authority: Sections 19440 and 19590, Business and Professions Code. Reference: Sections 19593 and 19594, Business and Professions Code.

HISTORY

1. New section filed 6-4-92; operative 7-6-92 (Register 92, No. 23).

2. Editorial correction of subsection (h)(2) (Register 94, No. 38).

3. Amendment of subsections (g), (i)(3) and (j) and Note filed 9-19-94; operative 10-19-94 (Register 94, No. 38).

4. Amendment of section heading and section filed 7-19-96; operative 8-18-96 (Register 96, No. 29).

5. Amendment of section and Note filed 9-26-2006; operative 10-26-2006 (Register 2006, No. 39).

6. Editorial correction of subsection (e) (Register 2011, No. 27).

7. Repealer of subsection (d), subsection relettering, amendment of newly designated subsections (d)-(e), repealer of newly designated subsection (e)(1) and amendment of newly designated subsections (e)(2) and (h) filed 7-12-2011; operative 8-11-2011 (Register 2011, No. 28).

§1976.9. Pick (n) Pool.

Note • History

(a) The Pick (n) requires selection of the first-place finisher in each of a number of races designated by the association. The association shall designate the percentage of the net pool considered the major share, and the percentage of the net pool considered the minor share, if any. The number of races comprising a Pick (n) must be at least four but no more than ten. Subsequent changes to the Pick (n) shall be requested in writing by the association. The Board or its designated representative shall respond in writing to such requests within five working days of their receipt at Board headquarters.

(b) The major share of the net Pick (n) pool, along with the Pick (n) carryover, shall be distributed to ticket holders that selected the first-place finisher in each of the Pick (n) races, based upon the official order of finish, and the minor share of the net Pick (n) pool shall be distributed as a win pool to ticket holders whose selection finished first in the second greatest number of Pick (n) races; if there are no wagers selecting the first place finisher in each of the Pick (n) races, then:

(1) The minor share of the net pool shall be distributed as a win pool to ticket holders whose selection finished first in the greatest number of Pick (n) races, and

(2) The major share of the net Pick (n) pool shall be retained by the association and added to the corresponding Pick (n) pool of the next performance. The additional Pick (n) pool resulting from such a carryover shall be termed the “Pick (n) carryover.”

(c) In a dead heat for first in any of the Pick (n) races, all horses in the dead heat for win shall be considered winning horses to calculate the pool.

(d) If a wagering interest in any of the Pick (n) races is scratched, or is designated to run for purse only in accordance with Rule 1974 of this article, the association may substitute the favorite for the scratched or designated wagering interest, determined by total amounts wagered in the win pool at the close of wagering on that race, or allow patrons the option of selecting an alternate wagering interest. The favorite or alternate wagering interest shall be substituted for the scratched wagering interest, or horse designated to run for purse only, for all purposes. If the association elects to substitute the favorite and the win pool total is identical for two or more horses, the horse with the lowest program number is used. The totalizator shall produce written reports showing each of the wagering combinations with substituted wagering interests that became winners as a result of the substitution, in addition to the normal winning combination, at the end of each race where substitutions occur.

(e) The Pick (n) pool shall be canceled and all Pick (n) wagers for the individual performance shall be refunded if:

(1) Three or more races included as part of a Pick 4, Pick 5 or Pick 6 are canceled or declared no contest; or

(2) Four or more races included as part of a Pick 7, Pick 8 or Pick 9 are canceled or declared no contest; or

(3) Five or more races included as part of a Pick 10 are canceled or declared no contest.

(f) If at least one race included as part of a Pick (n) is canceled or declared no contest, but fewer than the number specified in subsection (e), the net pool shall be distributed as a win pool to ticket holders whose selection finished first in the greatest number of Pick (n) races for that performance. Such distribution shall include the portion ordinarily retained for the Pick (n) carryover but not the carryover from previous performances.

(g) The Pick (n) carryover may be capped at an amount designated by the association, with Board approval. If, at the close of any performance, the carryover equals or exceeds the designated cap, it will be frozen until it is won or distributed under other provisions of this rule. After the carryover is frozen, 100% of the net pool shall be distributed to ticket holders whose selection finished first in the greatest number of Pick (n) races for that performance.

(h) Permission to distribute the Pick (n) carryover on a specific date and performance shall be obtained from the Board. The mandatory payout request must contain the intended date and performance for the distribution.

(i) If the Pick (n) carryover is designated for distribution on a specified date and performance in which no wager selects the first-place finisher in each of the Pick (n) races, the entire pool including the carryover shall be distributed as a win pool to ticket holders whose selection finished first in the greatest number of Pick (n) races. The Pick (n) carryover shall be designated for distribution on a specified date and performance only under the following circumstances:

(1) With written approval from the Board as provided in subsection (h); or

(2) With written approval from the Board when there is a change in the carryover cap, a change from one type of Pick (n) wagering to another, or when the Pick (n) is discontinued; or

(3) On the closing performance of the meet or split meet.

(j) If the Pick (n) carryover must be carried over to the corresponding Pick (n) pool of a subsequent meet, it shall be deposited in an interest-bearing account approved by the Board. The Pick (n) carryover plus accrued interest shall then be added to the net Pick (n) pool of the following meet on a date and performance designated by the association, with Board approval.

(k) With Board approval, the association may contribute to the Pick (n) carryover a sum of money up to the amount of any designated cap.

(l) No ticket for the Pick (n) pool shall be sold, exchanged or canceled after the close of wagering in the first race comprising the Pick (n), except for refunds required by this rule.

(m) Providing information to any person regarding covered combinations, amounts wagered on specific combinations, number of tickets sold, or number of live tickets remaining is prohibited. The totalizator will be programmed to suppress all information related to Pick (n) wagering activity until the conclusion of the final race except for the following:

(1) Total amount of the net pool at the close of Pick (n) wagering.

(2) Information regarding possible Pick (n) payouts for each of the runners when the last race of the Pick (n) pool is the only race remaining to be run.

(n) If the racing surface changes from turf to dirt or dirt to turf in any race of a Pick (n) pool, and such change was not announced to the public before the close of wagering on the Pick (n) pool, all wagers on such race shall be considered winning wagers for the purposes of the Pick (n) pool.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Sections 19440, 19590 and 19593, Business and Professions Code.

HISTORY

1. New section filed 10-10-91; operative 10-10-91 pursuant to Government Code section 11346.2(d) (Register 92, No. 2).

2. Amendment of subsection designations and text filed 9-21-94; operative 10-21-94 (Register 94, No. 38).

3. Amendment filed 10-18-99; operative 11-17-99 (Register 99, No. 43).

4. Amendment filed 8-17-2005; operative 8-17-2005 pursuant to Government Code section 11343.4 (Register 2005, No. 33).

5. Editorial correction of subsection (e)(2) (Register 2011, No. 27).

6. Amendment of subsection (c), repealer of subsections (c)(1)-(2) and amendment of subsection (d) filed 7-12-2011; operative 8-11-2011 (Register 2011, No. 28).

§1977. Pick Three.

Note • History

(a) The Pick Three is a separate pari-mutuel pool established on three consecutive races. The pool consists of amounts wagered on the winning horse in each of the races. It is not a parlay and has no connection with or relation to other pools conducted by the association, or to rules governing the distribution of other pools.

(b) A valid Pick Three ticket shall be evidence of a binding contract between the holder of the ticket and the association and shall constitute an acceptance of Pick Three provisions and rules contained in this article.

(c) The association shall distribute the net pool to holders of valid tickets that correctly selected the winners in all three races.

(d) In a dead heat for win between two or more horses in any Pick Three races, all such horses shall be considered winning horses in that race for calculating the pool. The payout shall reflect the proportionate amount of money wagered on each winning combination.

(e) If no ticket selected the winner in all three races, the net pool shall be paid for tickets that selected the winner in any two races; and if no ticket selected two winners the net pool shall be paid for tickets that selected the winner of any one race. The association shall refund the entire pool if no ticket selected the winner of any one race.

(f) If one of the races is cancelled, the net pool shall be distributed as provided in subsections (e). If more than one race is cancelled the association shall refund the entire pool.

(g) If a wagering interest is scratched (which hereinafter includes being declared a non-starter) from any leg of the Pick Three prior to the running of the first leg, or if a wagering interest is designated to run for purse only in accordance with Rule 1974 of this article, all wagers containing such scratched or designated wagering interests shall be refunded.

(h) If a wagering interest is scratched or designated to run for purse only from the second leg after the start of the first leg, a consolation payout shall be computed for those wagers combining the winners of the first and third legs with such scratched or designated horse(s) as follows: The amount represented by wagers on combinations involving horse(s) scratched or designated to run for purse only from the second leg shall be deducted from the gross pool. The resulting pool, net of takeout, shall be distributed as a win pool among tickets combining the winners of the first and third legs with horse(s) designated to run for purse only or scratched from the second leg.

(i) If a wagering interest is designated to run for purse only or scratched from the third leg after the start of the second leg, a consolation payout shall be computed for those wagers combining the winners of the first and second legs with such designated or scratched horse(s) as follows: The amount represented by wagers on combinations involving horse(s) designated to run for purse only or scratched from the third leg shall be deducted from the gross pool. The resulting pool, net of takeout, shall be distributed as a win pool among tickets combining the winners of the first and second legs with horse(s) designated to run for purse only or scratched from the third leg.

(j) If wagering interests are designated to run for purse only or scratched from both the second and third legs after the start of the first leg, a consolation payout shall be computed for those wagers combining the winner of the first leg with horse(s) designated to run for purse only or scratched from both the second and third legs as follows: The amount wagered on the winner of the first leg combined with all other horse(s) designated or scratched from the second and third legs shall be deducted from the gross pool. The resulting pool, net of takeout, shall be distributed as a win pool among tickets combining the winner of the first leg with horse(s) designated to run for purse only or scratched from both the second and third legs.

(k) After wagering closes on the first race of the Pick Three no ticket shall be sold, exchanged or cancelled. No person shall disclose the number of tickets sold in the Pick Three races or the number or amount of tickets that selected winners of Pick Three races until the stewards declare the last race official. After the second of three races, the association may display potential distributions dependent upon the outcome of the third race.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Section 19590, Business and Professions Code.

HISTORY

1. New section filed 10-29-86; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 86, No. 44).

2. Amendment of subsections (a)-(b), (l)-(m) and Note filed 11-1-95; operative 11-1-95 pursuant to Government Code section 11343.4(d) (Register 95, No. 44).

3. Amendment of section heading and section filed 6-3-96; operative 7-3-96 (Register 96, No. 23).

4. Amendment filed 12-5-2005; operative 1-4-2006 (Register 2005, No. 49).

5. Editorial correction of subsection (f) (Register 2011, No. 27).

6. Repealer of subsection (c), subsection relettering and amendment of newly designated subsections (f)-(j) filed 7-12-2011; operative 8-11-2011 (Register 2011, No. 28).

§1978. Select Four.

Note • History

(a) The Select Four pari-mutuel pool is not a parlay and has no connection with or relation to any other pari-mutuel pool conducted by the association, nor to any win, place and show pool shown on the totalizator board, nor to the rules governing the distribution of such other pools.

(b) A valid Select Four ticket shall be evidence of a binding contract between the holder of the ticket and the racing association, and the said ticket shall constitute an acceptance of Select Four provisions and rules contained in article 18.

(c) A Select Four may be given a distinctive name to be selected by the association conducting such races, such as “PICK 4,” subject to the approval of the Board.

(d) The Select Four pari-mutuel pool consists of amounts contributed for a selection for win only in each of four races designated by the association with the approval of the Board. Each person purchasing a Select Four ticket shall designate the winning horse in each of the four races comprising the Select Four.

(e) The net amount in the pari-mutuel pool subject to distribution among winning ticket holders shall be distributed among the holders of tickets which correctly designate the winners in all four races comprising the Select Four.

(f) If no ticket is sold combining the four winners of the Select Four, the net amount in the pari-mutuel pool shall be distributed among the holders of tickets which include the winners of any three of the four races comprising the Select Four.

(g) If no ticket is sold combining at least three winners of the Select Four, the net amount in the pari-mutuel pool shall be distributed among holders of tickets which include the winner of any two races comprising the Select Four.

(h) If no ticket is sold combining at least two winners of the Select Four, the net amount in the pari-mutuel pool shall be distributed among holders of tickets which include the winner of any one race comprising the Select Four.

(i) If no ticket is sold that would require distribution of the Select Four pool to a winner under this rule, the association shall make a complete and full refund of the Select Four pool.

(j) If for any reason one of the races comprising the Select Four is cancelled, the net amount of the pari-mutuel pool shall be distributed as provided above in subsections (f),(g), (h) and (i).

(k) If for any reason two or more of the races comprising the Select Four are cancelled, a full and complete refund will be made of the Select Four pool.

(l) In the event a Select Four ticket includes a selection in any one or more of the races comprising the Select Four that is scratched, excused or determined by the stewards to be a non-starter in the race, or if the Select Four ticket includes a selection that is designated to run for purse only in accordance with Rule 1974 of this article, the actual favorite, as evidenced by the amounts wagered in the win pool at the time of the start of the race, will be substituted for the non-starting or designated selection for all purposes, including pool calculations and payouts.

(m) In the event of a dead heat for win between two or more horses in any Select Four race, all such horses in the dead heat for win shall be considered as winning horses in the race for the purpose of calculating the pool.

(n) No pari-mutuel ticket for the Select Four pool shall be sold, exchanged or cancelled after the time of the closing of wagering in the first of the four races comprising the Select Four, except for such refunds on Select Four tickets as required by this regulation, and no person shall disclose the number of tickets sold in the Select Four pool or the number or amount of tickets selecting winners of Select Four races until such time as the stewards have determined the last race comprising the Select Four to be official. Notwithstanding the above, at the conclusion of the third of the four races comprising the Select Four, an association may with the approval of the Board display potential distribution to ticket holders depending upon the outcome of the fourth race of the Select Four.

NOTE

Authority cited: Sections 19420, 19440 and 19590, Business and Professions Code. Reference: Section 19590, Business and Professions Code.

HISTORY

1. New section filed 9-7-88; operative 9-12-88 pursuant to Government Code Section 11346.2(d) (Register 88, No. 37).

2. Change without regulatory effect amending subsections (a) and (m) filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

3. Editorial correction of subsection (o) (Register 2011, No. 27).

4. Amendment filed 7-12-2011; operative 8-11-2011 (Register 2011, No. 28).

§1979. Trifecta.

Note • History

(a) The Trifecta is a separate pari-mutuel pool established on a single race. The pool consists of amounts wagered on horses to finish first, second and third in that exact order. It is not a parlay and has no connection with or relation to other pools conducted by the association or to rules governing the distribution of other pools.

(b) A valid Trifecta ticket is evidence of a binding contract between the holder of the ticket and the association and constitutes acceptance of Trifecta provisions and rules contained in this article.

(c) No Trifecta pool shall be established for a race with less than four wagering interests scheduled to start when the Trifecta pool opens for wagering in California.

(d) After the stewards' official order of finish is posted, the association shall distribute the net pool to holders of valid tickets that correctly selected the first, second and third finishers.

(e) In a dead heat for first or second position, only tickets selecting the correct order of finish for the first three finishers shall be winning tickets; that is, two horses in a dead heat for first shall be first and second, in either position; and two horses in a dead heat for second shall be second and third, in either position. In a triple dead heat for first, the three horses shall be the winning combination regardless of the order of selection. In a triple dead heat for second, tickets with the correct first selection and two of the three horses shall be winning tickets. In a triple dead heat for third, tickets with the correct first and second selection and one of the three horses shall be winning tickets.

(f) If no ticket correctly selected the first, second and third position, the net pool shall be paid for tickets that selected first and second. If no ticket selected first and second the net pool shall be paid for tickets that selected first. The association shall refund the entire pool if no ticket selected first.

(g) If the stewards scratch a horse or designate a horse to run for purse only in accordance with Rule 1974 of this article before wagering is closed, the association may exchange any ticket that includes the scratched or designated horse. After wagering is closed, tickets selecting a scratched or designated horse, or a horse the stewards declared a nonstarter, shall be eliminated from the pool and the purchase price refunded.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Section 19590, Business and Professions Code.

HISTORY

1. New section filed 3-15-91; operative 3-15-91 pursuant to Government Code section 11346.2(d) (Register 91, No. 15).

2. Repealer of subsections (l) and (m) filed 1-27-92; operative 1-27-92 pursuant to Government Code section 11346.2(d) (Register 92, No. 12).

3. Editorial correction of printing error in subsections (g) and (h) (Register 92, No. 24).

4. Amendment of subsection (e) and repealer of subsection (k) filed 6-9-92; operative 7-9-92 (Register 92, No. 24).

5. Amendment of subsections (a)-(b), repealer and new subsections (c)-(g) and repealer of subsections (h)-(j) filed 6-5-96; operative 6-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 23).

6. Amendment filed 9-30-99; operative 9-30-99 pursuant to Government Code section 11343.4(d) (Register 99, No. 40).

7. Amendment of subsection (f) filed 12-11-2001; operative 1-10-2002 (Register 2001, No. 50).

8. Amendment of subsection (c) filed 7-21-2009; operative 8-20-2009 (Register 2009, No. 30).

9. Amendment of subsections (c) and (g) filed 7-12-2011; operative 8-11-2011 (Register 2011, No. 28).

§1979.1. Superfecta.

Note • History

(a) The Superfecta is a separate pari-mutuel pool established on a single race. The pool consists of amounts wagered on horses to finish first, second, third, and fourth in that exact order. It is not a parlay and has no connection with other pools conducted by the association or to rules governing the distribution of other pools.

(b) A valid Superfecta ticket is evidence of a binding contract between the holder of the ticket and the association and constitutes acceptance of Superfecta provisions and rules contained in this article.

(c) No Superfecta pool shall be established for a race with less than six wagering interests scheduled to start when the Superfecta pool opens for wagering in California.

(d) After the stewards' official order of finish is posted, the association shall distribute the net pool to holders of valid tickets that select the first, second, third, and fourth finishers.

(e) In a dead heat for first, second, or third position, only tickets selecting the correct order of finish for the first four finishers shall be winning tickets; that is, two horses in a dead heat for first shall be first and second, in either position; two horses in a dead heat for second shall be second and third, in either position; and two horses in a dead heat for third shall be third and fourth, in either position. In a dead heat for fourth, tickets with the correct first, second, and third selection and one of the two horses in the dead heat for fourth shall be winning tickets. In a triple dead heat for first, tickets selecting the three horses in the dead heat, regardless of the order of selection, and the horse finishing fourth shall be winning tickets. In a triple dead heat for second, tickets with the correct first selection and all three horses in the dead heat shall be winning tickets. In a triple dead heat for third, tickets with the correct first and second selection and two of the three horses in the dead heat shall be winning tickets. In a triple dead heat for fourth, tickets with the correct first, second, and third selection and one of the horses in the dead heat shall be winning tickets.

(f) If no ticket selects the first, second, third, and fourth position, the net pool shall be paid for tickets that select first, second, and third. If no ticket selects first, second, and third position, the net pool shall be paid for tickets that select first and second. If no ticket selects first and second, the net pool shall be paid for tickets that select first. The association shall refund the entire pool if no ticket selects first.

(g) If the stewards scratch a horse or designate a horse to run for purse only in accordance with Rule 1974 of this article before wagering is closed, the association may exchange any ticket that includes the scratched or designated horse. After wagering is closed, tickets selecting a scratched or designated horse, or a horse the stewards declared a nonstarter shall be eliminated from the pool and the purchase price refunded.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Section 19590, Business and Professions Code.

HISTORY

1. New section filed 9-16-99; operative 10-16-99 (Register 99, No. 38).

2. Amendment of subsection (f) filed 9-18-2003; operative 10-18-2003 (Register 2003, No. 38).

3. Amendment of subsection (c) filed 7-21-2009; operative 8-20-2009 (Register 2009, No. 30).

4. Amendment of subsections (c) and (g) filed 7-12-2011; operative 8-11-2011 (Register 2011, No. 28).

Article 19. Policing the Public Inclosure

§1980. Persons Prohibited from Wagering.

Note • History

(a) The following classes of persons are prohibited from participating in pari-mutuel wagering and from being present within any inclosure during a recognized race meeting:

(1) Persons who have engaged in any act of or who have been convicted of bookmaking or illegal wagering.

(2) Persons who have engaged in any act of or who have been convicted of touting.

(3) Persons who have engaged in or who have been convicted of an illegal, corrupt or fraudulent act in connection with horseracing or pari-mutuel wagering.

(4) Persons who have engaged in any act of or who have been convicted of theft from the person (pickpockets).

(5) Persons who have submitted to be cashed any altered, raised, forged or counterfeit pari-mutuel ticket.

(6) Persons whose license has been revoked by the Board or by any State Horse Racing Commission.

(b) For the purposes of this section:

(1) Bookmaking includes, but is not limited to, any act prohibited by Section 337a of the Penal Code or by Section 19595 of the Business and Professions Code.

(2) Illegal wagering includes, but is not limited to, any act prohibited by Sections 319 through 336, inclusive, of the Penal Code.

(3) Touting includes any act prohibited by Section 337.1 of the Penal Code; and further includes offering to furnish information concerning a selection of a horse for wagering purposes, or predicting the outcome of a race for wagering purposes, in exchange for a pari-mutuel ticket or other consideration which is contingent on the outcome of the race; or soliciting compensation or a gratuity either before or after a race for any racing information, racing selection or racing prediction for wagering purposes, except in the manner permitted by law.

(4) Corrupt or fraudulent acts include, but are not limited to, any act prohibited by Sections 337b through 337i, inclusive, 337.3, 337.6, 337.7 or 337.8 of the Penal Code.

NOTE

Authority cited: Section 19572, Business and Professions Code. Reference: Sections 19410, 19572, 19574 and 19595, Business and Professions Code; and Sections 319-336, 337a, 337.1, 337.3, 337.6, 337.7 and 337.8, Penal Code.

HISTORY

1. Amendment of section and new Note filed 4-11-94; operative 5-11-94 (Register 94, No. 15).

2. Repealer and new subsection (a)(6) and repealer of subsections (a)(7) and (a)(8) filed 1-24-97; operative 2-23-97 (Register 97, No. 4).

3. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1981. Duty to Exclude Prohibited Persons.

Note • History

Racing associations, fairs and simulcast wagering facilities shall exclude and eject from their inclosures persons who are prohibited from participating in pari-mutuel wagering and from being present within any inclosure. No racing association, fair or simulcast wagering facility shall knowingly issue any credential to or admit such persons and any admission ticket or credential is void if held by such persons.

NOTE

Authority cited: Sections 19572 and 19574, Business and Professions Code. Reference: Sections 19410, 19572 and 19574, Business and Professions Code.

HISTORY

1. New Note and amendment of section heading and text filed 3-29-94; operative 4-28-94 (Register 94, No. 13).

2. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1982. Notice of Exclusion or Ejection.

The Association shall inform any person excluded or ejected from its inclosure of the reason for the ejection or exclusion, and shall notify such person of the provisions of this article. Notification may be made by the delivery to the person excluded or ejected of a copy of this article. The Association shall immediately notify the Board on the form prescribed by the Board, the name of any person ejected or excluded, the reason for the ejection or exclusion, and such other information as the Board may require.

§1983. Application for Hearing.

Note • History

Any person ejected or excluded from any racing inclosure may file a written application with the Board for a hearing on the question of whether he is within any of the classes of persons who are prohibited from participating in pari-mutuel wagering and from being present within any racing inclosure. Applications must be on the form prescribed by the Board, briefly state the circumstances of the ejection or exclusion, and clearly identify and be signed by the applicant.

NOTE

Authority cited: Section 19440, Business and Professions Code. Reference: Sections 19440 and 19573, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1984. Place and Notice of Hearing.

The application for hearing on exclusion or ejection shall be set for hearing before the Board, a referee designated by the Board, or before a Hearing Officer of the Office of Administrative Hearings. The Board shall mail to the applicant and any other interested party notice of the time and place of the hearing.

§1985. Waiver of Hearing.

If an applicant fails to appear at the time and place set for hearing, the Board may take whatever action it deems appropriate.

§1986. Determination of Rehabilitation.

Note • History

(a) If the Board finds that the applicant is within one of the classes of persons who are prohibited from participating in pari-mutuel wagering and from being present within any racing inclosure, the Board may, in its discretion, make a further finding that the applicant's presence within the public inclosure would not be against the best interests of horse racing, and an exception should be made authorizing him to participate in pari-mutuel wagering in the future.

(b) If the applicant holds a current CHRB occupational license, the Board shall make a separate determination regarding the applicant's fitness for continued licensing. The determination shall be made at the same time as any findings made under subsection (a) of this rule.

NOTE

Authority cited: Sections 19440, 19572 and 19573, Business and Professions Code. Reference: Sections 19420, 19440, 19461, 19572, 19573 and 19574, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 8-10-93; operative 8-10-93 (Register 93, No. 33).

2. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§1987. Notice of Findings and Determinations After Hearing.

Upon the conclusion of the hearing, the referee or Hearing Officer shall make findings and determinations on the issues and submit recommendations to the Board. The Board shall consider such findings, determinations and recommendations and shall render its decision. The Board shall notify the applicant in writing of each determination and the decision made by it, and shall enter its decision in its minutes.

§1988. Appearance and Evidence at Hearing.

At the hearing before the Board, its referee or Hearing Officer, the applicant is entitled to appear in person and/or by counsel, and such evidence as is necessary and proper to resolve the issues presented shall be received. The applicant may file a written answer or statement in which he may controvert any point at issue, and may present any argument or evidence for consideration. Any association may appear as a party of interest in the matter and at the hearing if it so desires.

§1989. Removal or Denial of Access.

Note • History

(a) An association, fair or simulcast facility may remove from its premises any person who:

(1) Is disorderly as defined in Section 647 of the Penal Code.

(2) Interferes with any racing operation.

(3) Solicits or engages in any act of prostitution.

(4) Begs, is boisterous, or is otherwise offensive to other persons.

(5) Commits any public offense.

(6) Is intoxicated.

(b) Any person may be removed or denied access for any reason deemed appropriate by the association, fair or simulcast facility notwithstanding the fact that such reason is not specified in the rules.

NOTE

Authority cited: Section 19440, Business and Professions Code. Reference: Section 19440, Business and Professions Code; and Section 647, Penal Code.

HISTORY

1. Amendment of section heading and section and new Note filed 1-24-97; operative 2-23-97 (Register 97, No. 4).

§1990. Denial of Access to Private Property. [Repealed]

History

HISTORY

1. Repealer filed 1-24-97; operative 2-23-97 (Register 97, No. 4).

Article 20. Conflict of Interest

§2000. General Provisions.

Note • History

The Political Reform Act, Government Code Sections 81000, et seq., requires state and local government agencies to adopt and promulgate Conflict of Interest Codes. The Fair Political Practices Commission (FPPC) has adopted a regulation, 2 California Code of Regulations Section 18730, which contains the terms of a standard Conflict of Interest Code, which can be incorporated by reference, and which may be amended by the FPPC to conform to amendments in the Political Reform Act after public notice and hearings. Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the FPPC along with the attached Appendix in which officials and employees are designated and disclosure categories are set forth, are hereby incorporated by reference and constitute the Conflict of Interest Code of the California Horse Racing Board.

Designated employees shall file statements of economic interests with the agency. Upon receipt of the statements of the Commissioners, the agency shall make and retain a copy and forward the original of these statements to the FPPC. Statements for all other designated employees will be retained by the agency.

NOTE

Authority cited: Section 87306, Government Code. Reference: Sections 87300-87302 and 87306, Government Code.

HISTORY

1. New article 20 (sections 2000-2012, consecutive) filed 5-26-77; effective thirtieth day thereafter. Approved by Fair Political Practices Commission 4-20-77 (Register 77, No. 22).

2. Repealer of article 20 (sections 2000-2012) and new article 20 (section 2000 and Appendix) filed 2-26-81; effective thirtieth day thereafter. Approved by Fair Political Practices Commission 12-1-80 (Register 81, No. 9).

3. Amendment of section and Appendix filed 6-23-93; operative 6-23-93. Submitted to OAL for printing only. Approved by Fair Political Practices Commission 5-12-93 (Register 93, No. 26).

4. Amendment of Appendix filed 8-19-94; operative 9-19-94. Submitted to OAL for printing only. Approved by Fair Political Practices Commission 7-8-94 (Register 94, No. 33).

5. Amendment of Appendix filed 6-2-97; operative 7-2-97. Approved by Fair Political Practices Commission 4-10-97 (Register 97, No. 23).

6. Amendment of section and Appendix filed 5-17-99; operative 6-16-99. Approved by Fair Political Practices Commission 3-29-99 (Register 99, No. 21).

7. Amendment of Appendix filed 5-22-2001; operative 6-21-2001. Approved by Fair Political Practices Commission 4-6-2001 (Register 2001, No. 21).

8. Amendment of Appendix filed 9-2-2003; operative 10-2-2003. Approved by Fair Political Practices Commission 7-7-2003 (Register 2003, No. 36).

Appendix

Assigned

Designated Positions Disclosure

Categories

Commissioners (members) 1, 2

Executive Director 1, 2

Career Executive Assignment 2 (Assistant Executive Director) 1, 2

Chief Investigator 1, 2

Staff Services Manager I/II 1, 2

Senior Management Auditor 1, 2

Senior Programmer Analyst (Chief Information Officer) 1, 2

Staff Services Analyst/Associate Governmental Program Analyst

(Contracts Analyst) 1d

Business Services Assistant/Business Services Officer 1d

Stewards 1, 2

Supervising Special Investigator I, Senior Special

Investigator and Special Investigator I 1, 2

Associate Governmental Program Analyst

(Public Relations Officer) 1, 2

Consultants 1, 2, 3

Racing Officials--Official Veterinarian 1a, b, 2

Disclosure Categories

Category 1

All designated employees shall report:

Any investments, business positions and sources of income, including gifts, loans and travel payments in a source which:

(a) Is a racing association or entity, which has a financial interest in a racing association or racetrack or any management company which participates in or earns any income from pari-mutuel wagering.

(b) Is a business or person “attendant upon horses” and is subject to licensing and/or regulation by the California Horse Racing Board (Board);

(d) Is a business that has, within the previous two years, leased space, or provided goods, services, equipment, materials or supplies of the type used by the Board;

(e) The designated employee knows, or has reason to know, has contracted with, or plans to contract with, any concessionaire of a racing association to provide products for use by that concessionaire in connection with the concession;

(f) Is any person against whom the Board is contemplating legal or administrative action or has intervened in such action;

(g) Is a manufacturer, wholesaler, or distributor of products required or approved by the Board for use at racing association meetings.

Category 2

All designated employees shall report:

Any investments in or sources of income, including gifts, loans and travel payments derived from racehorses or from persons or entities that own or breed racehorses.

Category 3

Consultants shall disclose all economic interests as outlined in Categories 1 and 2 with the following exception:

The Executive Director may determine, in writing, that a particular consultant, hired to perform a range of duties limited in scope, is not required to fully comply with the disclosure requirements in this rule. The written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The Executive Director's determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code.

Article 21. The Standardbred Sires Stakes Program

§2020. The Standardbred Sires Stakes Committee. [Repealed]

Note • History

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Sections 19401 and 19440, Business and Professions Code.

HISTORY

1. New Article 21 (Sections 2020-2035) filed 3-16-77; effective thirtieth day thereafter (Register 77, No. 12).

2. Repealer filed 1-9-81; effective thirtieth day thereafter (Register 81, No. 2).

§2021. Committee Reports. [Repealed]

Note • History

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Sections 19401 and 19440, Business and Professions Code.

HISTORY

1. Repealer filed 1-9-81; effective thirtieth day thereafter (Register 81, No. 2).

§2022. Delegation of Authority and Administration.

Note • History

The organization recognized by the Board as the registry of California-bred standardbred horses and the organization recognized by the Board as representing standardbred horse owners and trainers are delegated jointly the authority to administer the California Standardbred Sires Stakes Program and the recognized organizations are mutually responsible to the Board for administration of the program. The recognized organizations shall elect or appoint jointly a person who shall administer the Sires Stakes Program. The administrator shall be authorized to file claims for administrative expenses from funds appropriated for such purposes, shall file with the Board the official results of Sires Stakes races for payment of purses and awards, shall file on December 31 of each year an annual report of operations of the California Standardbred Sires Stakes Program, and is authorized to accept nomination and other fees for deposit in the State Treasury.

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Sections 19401 and 19440, Business and Professions Code.

HISTORY

1. Repealer and new section filed 1-9-81; effective thirtieth day thereafter (Register 81, No. 2).

§2023. Appropriations and Support. [Repealed]

Note • History

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Sections 19401 and 19440, Business and Professions Code.

HISTORY

1. Repealer filed 1-9-81; effective thirtieth day thereafter (Register 81, No. 1).

§2024. Standardbred Stallion Registry.

A standardbred Stallion Registry shall be maintained by the Board or its designee and no standardbred stallion nor the offspring of such stallion shall be eligible for participation in the California Standardbred Sires Stakes Program unless registered with the said official Stallion Registry.

§2025. Nomination of Stallions.

Standardbred stallions shall be nominated annually to the official registry by application in such form prescribed by the Board accompanied by a nomination fee determined by the Board and by a true and correct copy of the Registration Certificate issued to the nominated stallion by the United States Trotting Association.

(a) The eligibility and nomination of a previously registered stallion may be renewed upon the submission of a nomination application form and the nomination fee determined by the Board.

(b) No person shall be authorized to nominate a standardbred stallion unless the nominator is duly licensed by the Board as a horse owner.

(c) A stallion shall be nominated to the official registry prior to the time he is first used for breeding purposes in California.

(d) On or after November 30, 1977, the closing date each year for nominations of stallions for the succeeding breeding season shall be November 30th of each calendar year.

§2026. Grounds for Refusal of Nomination.

In addition to any other valid ground or reason, the Board or its designee may refuse to accept a nomination of a standardbred stallion for the California Sires Stakes Program when:

(a) The stallion is used for breeding purposes outside the State of California at any time during the season for which he is to be or has been nominated.

(b) The stallion does not meet the requirements for nomination or is nominated after the published closing date for such nominations.

(d) The nominator of a stallion is not the owner in fact of the said stallion and is not authorized by power of attorney to act on behalf of the true owner or owners of the said stallion.

(e) The nominator of a stallion has broken or violated any rule or condition regarding participation in the California Standardbred Sires Stakes Program as provided in this article.

§2027. Grounds for Termination of Eligibility.

In addition to any other valid ground or reason, the Board or its designee may terminate the eligibility of a nominated standardbred stallion after having given notice of such termination to the nominator of the stallion and after giving such nominator the opportunity to be heard, when:

(a) The stallion is used for breeding purposes at any place outside the State of California during the breeding season for which he is nominated and registered.

(b) The nominator or true owner or owners of the stallion fail to comply with any rule or condition of the nomination or registry requirements.

(c) The nominator, true owner or owners, engage in any acts in connection with the breeding of horses which are of themselves fraudulent or grossly negligent or misrepresentative, or otherwise inimical to the conduct of the California Standardbred Sires Stakes Program.

§2028. Publication of Registered Stallions.

The Board or its designee shall publish a complete list of standardbred stallions as registered with the Board or its designee on or before the 15th of December of the calendar year preceding each breeding season in such form as the Board shall determine. The fact that the name or identity of a standardbred stallion is not published shall not affect the nomination or eligibility of such stallion nor shall it impose any liability on the Board or its designee in the absence of malice or intent to deprive a nominated stallion its eligibility.

§2029. Ownership of Stallion for Award Purposes.

An award made to any stallion pursuant to the California Standardbred Sires Stakes Program shall be paid to the person designated on the application for nomination filed with the Board or its designee and payment to such designated person shall relieve the Board or its designee of any further liability for payment. Any required notice or any service of process shall be made to such designated person and shall be considered as service or notice to all partners, shareholders in interest, or others holding any financial interest in such stallion. The Board or its designee may withhold any award pending a determination of eligibility and shall give notice of the withholding of award and the reasons therefor.

§2030. Breeding Contracts.

All breeding contracts with registered standardbred stallions shall contain therein a statement as a condition of the contract that the stallion has not left and will not leave the State of California for breeding purposes during the breeding season of the contract. The Board or its designee may demand a true and correct copy of any breeding contract to as--sure that any such contract complies with the conditions and rules of this article.

§2031. California-Owned Filly Races. [Repealed]

History

HISTORY

1. Repealer filed 9-15-82; effective thirtieth day thereafter (Register 82, No. 38).

§2032. California Residency Requirement.

For the purpose of this article, the term California resident shall mean a person who meets one or more of the following requirements:

(a) A person registered to vote in California.

(b) A person whose principal place of residence has been within the State of California for the preceding six consecutive months.

(c) A person who has been physically present in California for ninety days or more and who intends to remain in California and to establish a principal place of residence in this State.

§2033. California-Owned Horse.

Note • History

A “California-Owned” horse shall mean a horse which is owned by a California resident as defined in this article, or is owned by a partnership, corporation, limited liability company (Corporations Code section 17000 et seq.) or syndicate when all persons having any financial interest in such partnership, corporation, limited liability company or syndicate are California residents, on the first day of January of the year the horse is two-years old and remains in such ownership up to and including the day such horse competes in a California-Owned race.

NOTE

Authority cited: Sections 19420 and 19619, Business and Professions Code. Reference: Sections 19440 and 19619, Business and Professions Code.

HISTORY

1. Amendment of section and new Note filed 8-14-98; operative 9-13-98 (Register 98, No. 33).

§2034. Official Registry.

Note • History

The California Harness Horse Breeders Association is recognized as the Official Stallion Registry under Rule 2024 of this division. All funds coming into the control of the official registry for nominating, sustaining or entry fees shall be transmitted to the Board on the first day of each month for deposit into the “California Standardbred Sires Stakes Fund” of the General Fund.

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Sections 19440, 19562 and 19566.6, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and adding new Note filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§2035. California Standardbred Sires Stakes Guide.

The Board shall cause to be published an Annual Stakes Guide summarizing the conditions for the California Standardbred Sires Stakes races. Any such race under the conditions thereof as published shall be conducted by the specified harness racing association.

Article 22. Horsemen's Organizations and Agreements

§2040. Horsemen's Organizations for Owners or Trainers.

Note • History

The Board recognizes the need for horse owners and trainers to negotiate and to covenant with racing associations regarding the conditions for each race meeting, the distribution of commissions and purses not governed by statutory distribution formulas, and other matters relating to welfare, benefits and prerogatives of the parties to the agreement. To fulfill its duties to the public in authorizing the conduct of an uninterrupted, orderly race meeting during the licensed term of such meetings, the Board shall acknowledge one respective horsemen's organization that represents horse owners and trainers of each separate breed of racehorse that competes in such meetings except Thoroughbreds. The Board shall acknowledge separate horsemen's organizations for owners and trainers of Thoroughbred racehorses as defined in Section 19613 of the Business and Professions Code.

(a) The Board shall acknowledge only one horsemen's organization for each breed of racehorse, except Thoroughbreds, as the organization empowered exclusively to contract with racing association for the conduct of a race meeting. No person shall serve as an officer or director of an acknowledged horsemen's organization, other than in an honorary capacity, at the same time such person serves as an officer or director of a licensed racing association or as an officer or director of any entity which is a principal shareholder of any licensed racing association.

(b) Upon the filing with the Board of a notice of intent by an alternate horsemen's organization whose membership is 1500 members or more, the alternate horsemen's organization, shall have not more than six (6) months from the date of filing to acquire, on a petition, signatures of ten percent (10%) of the existing organization's licensed members. The alternate horsemen's organization petitioning to decertify an existing horsemen's organization whose membership is fewer than 1500 shall have not more than six (6) months from the date of filing to acquire, on a petition, signatures of thirty percent (30%) of the existing organization's licensed members.

(1) The notice of intent shall contain the name of the horsemen's organization, the names of the principals of the horsemen's organization, the date of filing, the articles of incorporation and a copy of the petition as it will be circulated.

(2) No more than one (1) petition by any alternate horsemen's organization to decertify an existing horsemen's organization shall be circulated at any given time.

(c) Upon receipt of a petition that meets the criteria in subsection (b) of this Rule, the Board shall consider the petition, and shall validate the signatures found on said petition. Validation includes, but is not limited to, verification of current CHRB license numbers and signature verification.

(1) If the validated signatures are found to meet the requirements of subsection (b) in this Rule, the Board shall thereupon establish a date and conduct an election among the existing organization's licensed members.

(2) If the validated signatures do not meet the requirements of subsection (b) in this Rule, the Board shall notify the alternate and the existing horsemen's organization that no further action shall be taken on the petition.

(d) A deciding vote of fifty percent (50%) plus one (1) of the ballots returned shall be used to determine the one organization to be acknowledged as representing the organization's licensed members.

(e) Except for good cause, the Board shall not conduct an election within eighteen (18) months of a prior election among the organization's licensed members.

NOTE

Authority cited: Sections 19440 and 19562, Business and Professions Code. Reference: Sections 19401(a) and (e), 19613, 19613.1, 19613.2 and 19613.3, Business and Professions Code.

HISTORY

1. New article 22 (sections 2040-2045) filed 4-12-79; designated effective 7-1-79 (Register 79, No. 15).

2. Amendment of section and Note filed 6-2-94; operative 7-2-94 (Register 94, No. 22).

3. Amendment of section heading, section and Note filed 9-22-95; operative 10-22-95 (Register 95, No. 38).

§2041. Agreements to Be Binding on Members.

Note

Any agreement, covenant, or contract entered into by the acknowledged horsemen's organization with any licensed racing association is binding upon each horse owner or trainer or participant who accepts the conditions of the meeting by accepting stall space at such meeting. No such owner or trainer or participant nor any member, employee, agent, director, or representative of a horsemen's organization shall counsel, urge, advocate, aid or abet the violation of any provision of any horsemen's agreement, covenant or contract during its term.

NOTE

Authority cited: Sections 19440, 19562, Business and Professions Code. Reference: Sections 19401(a), (e), Business and Professions Code.

§2042. Agreements to Be Binding on Associations.

Note

Any agreement, covenant, or contract entered into by the acknowledged horsemen's organization with any licensed racing association is binding upon the racing association and its employees, agents, representatives and officials. No employee, agents, representative or official of the association shall counsel, urge, advocate, aid or abet the violation of

any provision of any horsemen's agreement, covenant or contract during its term.

NOTE

Authority cited: Sections 19440, 19562, Business and Professions Code. Reference: Sections 19401(a), (e), Business and Professions Code.

§2043. Adjudication of Controversies Relating to Agreements.

Note • History

A complaint alleging a violation of any provision of an agreement between a horsemen's organization and a racing association may be filed with the Board by either of the contracting entities. The Board shall immediately investigate the allegations and may refer the complaint to the Board of Stewards appointed for the meeting where the violation is alleged to have occurred, or refer the matter for hearing under the provisions of Rule 1414 of this division. The stewards or a referee may, after hearing the matters alleged, order compliance with the terms of the contract if within their authority to do so, or propose to the Board a decision or other course of action including therein their recommendations to the Board.

NOTE

Authority cited: Sections 19440, 19562, Business and Professions Code. Reference: Sections 19401(a), (e), Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§2044. Agreements to Be Filed.

Note

Each racing association shall file a copy of its agreement with the horsemen's organization, or in the case of fairs the horsemen's organizations, representing the horse owners and trainers at its meeting at the same time the association files its application for license. In the event the association is unable to obtain and file such agreement with its application, the Board may upon notice to the prospective parties to the agreement conduct a hearing with regard to the conditions for the meeting and take such action as it may deem appropriate to insure continuity of the racing program. The horsemen's organization shall provide a copy of the agreement for the conduct of the meeting to any person requesting the same and shall cause to be posted on the bulletin board of the association a notice of the location where a copy of the agreement may be obtained.

NOTE

Authority cited: Sections 19440, 19562, Business and Professions Code. Reference: Sections 19401(a), (e), Business and Professions Code.

§2045. Prohibited Provisions of Horsemen's Agreements.

Note • History

No agreement between the association and the horsemen shall include provisions which are in conflict with the Horse Racing Law, the rules of the Board, or usurp the authority of the Board, including but not limited to:

(1) Provisions which limit or specify the number of races to be programmed on any day or night of the meeting;

(2) Provisions which specify the number of days per week during which racing will be conducted at the meeting;

(3) Provisions which specify the type of pari-mutuel wagering to be conducted by the association or the number of multiple-wager (exotic) pari-mutuel pools to be conducted; or

(4) Provisions which may serve to exclude participation at the meeting by any individual holding a valid license issued by the Board. Nothing herein is deemed an abridgment of Rules 1485 and 1989 of this division.

NOTE

Authority cited: Sections 19440, 19562, Business and Professions Code. Reference: Sections 19401(a), (e), Business and Professions Code.

HISTORY

1. Change without regulatory effect amending subsection (4) filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

2. Change without regulatory effect amending subsection (4) filed 1-24-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 4).

3. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

Article 23. Charity Foundations and Welfare Funds

§2046. Filing of Annual Financial Report.

Note • History

Every distributing agent selected and qualified pursuant to Sections 19553 and 19554 of the Business and Professions Code shall file with the Board within 135 days after the close of its fiscal year a financial report prepared by a certified public accountant. The required annual report shall be prepared in accordance with generally accepted auditing standards including verification of the eligibility of charitable organizations to which distributions were made.

NOTE

Authority cited: Section 19440, Business and Professions Code. Reference: Sections 19554, 19555, 19556 and 19557, Business and Professions Code.

HISTORY

1. New Article 23 (Sections 2046-2048) filed 12-10-82; effective thirtieth day thereafter (Register 82, No. 50).

§2047. Requests for Approval of Charity Fund Distribution.

Note

A request by a distributing agent filed with the Board for approval of a distribution of charity days' net proceeds to one or more beneficiaries shall include therein the total amount of charity days' net proceeds held by the distributing agent, the name of each beneficiary selected for a distribution, a brief statement as to the purpose of each beneficiary, the amount to be distributed to each beneficiary, a representation by the distributing agent as to the eligibility of all beneficiaries, the total amount of the net proceeds to be approved by the Board for the requested distributions, and the amount of net proceeds to be held by the distributing agent after the approved distributions are made.

NOTE

Authority cited: Section 19440, Business and Professions Code. Reference: Sections 19555, 19556 and 19557, Business and Professions Code.

§2048. Horsemen's Organization Welfare Fund.

Note • History

Every horsemen's organization which maintains a welfare fund entitled to any moneys or payment from unclaimed pari-mutuel pool distributions under provisions of Section 19641 of the Business and Professions Code shall file with the Board within 90 days after the close of its fiscal year a financial report prepared by a certified public accountant. The annual report shall be prepared under generally accepted auditing standards and include a description of each activity or program funded by unclaimed pari-mutuel pool distributions. The administrator of the welfare fund or the horsemen's organization shall file an accompanying report concerning the programs or activities implemented or proposed at the time the report is submitted, a five-year estimate of the annual total cost of the programs or activities, and the statutory basis for the programs or activities.

NOTE

Authority cited: Section 19440, Business and Professions Code; and the Supplemental Report of the 1981 Budget Act. Reference: Section 19641, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§2049. Designation and Approval of Horsemen's Welfare Fund.

Note • History

The horsemen's organization acknowledged by the Board under Rule 2040 of this division shall establish a charitable corporation to administer its welfare fund for the benefit of horsemen. The charitable corporation shall register with the Registry of Charitable Trusts and be in compliance with the provisions of the Uniform Supervision of Trustees for Charitable Purposes Act (Government Code Sections 12580 et seq.). The Board shall designate the charitable corporation as the “welfare fund” for the purposes intended under Section 19641(b) of the Business and Professions Code (B&P Code); if:

(a) The charitable corporation shall have a minimum of five and a maximum of nine directors or trustees who are subject to Board approval. The charitable corporation may not be a subsidiary or division of the horsemen's organization. The directors or trustees of the charitable corporation may be common directors of the horsemen's organization if at least forty percent of the directors or trustees of the charitable corporation have no financial interest in horse racing as a licensed horse owner, trainer, or assistant trainer and are not a current member of the horsemen's organization. The charitiable corporation shall select at least one director or trustee without financial interest in horse racing pursuant to B&P Code Section 19641.2(c). The term of a director or trustee is two years. A director or trustee may serve succeeding terms.

(b) The charitable corporation shall establish its fiscal year to be July 1 through June 30 and shall establish a principal office for the conduct of its activities and as the repository for its records. Its records shall be open to inspection by the Board during normal business hours. The corporation shall publish a report of its activities biennially.

(c) The directors or trustees shall appoint an administrator of the welfare fund who shall procure a license from the Board and perform the duties directed by the directors or trustees.

(d) The directors or trustees shall establish a constitution or bylaws setting forth criteria for eligibility of the beneficiaries of the various programs and activities to be funded under Section 19641(b) of the B&P Code and submit to the Board on or before October 31 of each year a proposed schedule of expenditures from the fund for the next fiscal year specifying therein the categories, programs or activities for which funds will be expended.

NOTE

Authority cited: Section 19440, Business and Professions Code. Reference: Sections 19641 and 19641.2, Business and Professions Code; and Section 9.00, Chapter 324, Statutes of 1983 (Budget Act of 1983).

HISTORY

1. New section filed 1-30-85; effective thirtieth day thereafter (Register 85, No. 5).

2. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

3. Amendment of first paragraph and subsections (a) and (d) filed 7-8-2002; operative 8-7-2002 (Register 2002, No. 28).

§2050. Beneficiaries, Welfare Programs and Activities.

Note • History

These regulations establish the appropriate uses for funds paid to the designated charitable corporations under the provisions of Section 19641(b) of the Business and Professions Code. The directors or trustees of the welfare fund shall limit the eligibility for benefits to natural persons who engage in occupations directly relating to the physical care of horses at California racetracks or approved auxiliary stable areas and to the spouse or dependent children of such persons. Natural persons who have engaged in occupations directly relating to the physical care of horses at California racetracks or approved auxiliary stable areas, and their spouse or dependent children, may be eligible for benefits for not more than one year after the termination of such employment. Welfare funds may be expended for:

(1) Health care services including costs associated with the contracting for physicians' or dentists' professional services, hospitalization of an eligible beneficiary or dependent, outpatient, rehabilitative or preventative medical programs, restorative dental services, alcohol and drug abuse treatments, and capital outlay for medical or dental clinics and necessary equipment.

(2) Extended medical and health assurance including supplemental medical and hospitalization insurance coverage premiums, support or residential board and care facilities including capital outlay expenditures and reimbursements for beneficiaries confined to convalescent facilities or to facilities or institutions providing geriatric care.

(3) Emergency financial assistance including temporary family assistance financial aid, food or subsidized meal tickets or food vouchers, temporary housing expenses, emergency transportation expenses, burial expenses for an eligible beneficiary or immediate family member, and legal expenses of an eligible beneficiary.

(4) Educational and recreational activities including counseling and chaplaincy programs, Alcoholics Anonymous or similar programs, intra-mural sports activities and sports equipment, tickets and transportation to sports events, health and hygiene education classes, legal/immigration clinics, classes in spoken English, and expenditures for counselors, chaplains, and instructors for such activities.

(5) Administration costs necessary to administer, supervise and audit the operations of the charitable corporation provided that the expenditures for such administration purposes not exceed 15% of the total expenditures for any fiscal year.

NOTE

Authority cited: Section 19440, Business and Professions Code. Reference: Section 19641, Business and Professions Code; and Section 9.00, Chapter 324, Statutes of 1983 (Budget Act of 1983).

HISTORY

1. New section filed 1-30-85; effective thirtieth day thereafter (Register 85, No. 5).

2. Amendment filed 7-30-2002; operative 8-29-2002 (Register 2002, No. 31).

Article 24. Intrastate Simulcast Wagering

§2056. Definitions.

Note • History

As used in this article:

(a) “Assistance simulcast facility supervisor” means a person licensed by the Board to perform the duties described in Rule 2061 of this article.

(b) “Authorized user” means an entity which includes any individual, partnership, corporation or other association or organization authorized by the Board as defined in Rule 2057 of this article to receive, decode and use for legal purposes the encrypted simulcast signal of California horse racing events.

(c) “Common pools”, “common pooling” means the pari-mutuel wagers at one or more guest associations contributed into the pari-mutuel pools of a host association; the act of contributing pari-mutuel wagers into the parimutuel pools of a host association.

(d) “Decoder” means a device and/or means to convert encrypted audio-visual signals and/or data into a form recognizable as the original content of the signals.

(e) “Distributable amounts” means the amount withheld from the wagering dollar that is not returned to the public, and is distributed under Articles 9.2 and 9.5, Chapter 4, Division 8 of the Business and Professions (B&P) Code.

(f) “Downlink” means a receiving antenna coupled with an audio-visual signal receiver compatible with and capable of receiving simultaneous audio-visual signals and/or pari-mutuel data emanating from a host association, and includes the electronic transfer of received signals from the receiving antenna to TV monitors or pari-mutuel equipment within the simulcast facility.

(g) “Encryption,” “encrypted,” “encoded” means the scrambling or other manipulation of the audio-visual signals to mask the original video content of the signal causing the signals to be indecipherable and unrecognizable to entities receiving the signals who are not authorized users.

(h) “Guest,” “guest association” means an entity licensed by the Board as defined in Rule 2057(a) of this article to receive a host association's simulcast or signal to operate a facility where simulcast wagering is offered on the host association's racing card.

(i) “Host,” “host association” means the racing association or fair conducting a licensed horse racing meeting under Sections 19608 and 19608.1 of the B&P Code which simulcasts its racing program.

(j) “Inclosure,” “inclosure-public” includes areas of the simulcast facility as defined by Sections 19410 and 19410.5 of the B&P Code.

(k) “Intrastate simulcast wagering” means pari-mutuel wagering at a California guest association on California horse racing events being run at a California racing meeting.

(l) “Satellite transponder,” “transponder” means a specific channel on a communication satellite.

(m) “Simulcast,” “simulcasting” means live audio-visual electronic signals emanating from a licensed horse racing meeting and transmitted via satellite or other medium simultaneously with the running of the horse racing events at that meeting, and includes the transmission of pari-mutuel wagering odds, amounts wagered and payout on the events, and other horse racing programming relating to the racehorses or participants.

(n) “Simulcast facility supervisor” means a person licensed by the Board to perform the duties described in Rule 2061 of this article.

(o) “Simulcast organization,” “organization” means an entity formed under Section 19608.2 of the B&P Code.

(p) “Simulcast service supplier” means a person engaged in providing service, supplies or equipment necessary to the operation of intrastate simulcast wagering for use by a host association, guest association, simulcast organization or authorized user, including pari-mutuel wagering terminals, uplink, downlink, television receivers and related equipment; but does not include persons authorized by the Federal Communications Commission to provide telephone service or space segment time on satellite transponders.

(q) “Simulcast wagering facility,” “intrastate wagering facility” means the physical premises, structure and equipment utilized by a guest association for the conduct of pari-mutuel wagering on horse racing events being run elsewhere.

(r) “Totalizator equipment” means computerized pari-mutuel wagering system.

(s) “Uplink” means an earth station broadcasting facility, whether mobile or fixed, which is used to transmit audio-visual signals and/or data.

NOTE

Authority cited: Sections 19420, 19440 and 19590, Business and Professions Code. Reference: Sections 19410.5, 19601, 19605, 19605.1, 19605.2, 19605.3, 19605.6, 19608, 19608.1, 19608.2 and 19619.6, Business and Professions Code.

HISTORY

1. New section filed 3-23-88 pursuant to a decision by the Governor overruling OAL's disapproval of this section on the basis that the Board's Notice of Proposed Rulemaking was invalidated by intervening statutory amendments (Government Code section 11349.5); operative 4-22-88 (Register 88, No. 17). The Horse Racing Board agreed to resolve all other legal issues identified in OAL's disapproval of these sections in a subsequent rulemaking.

2. Amendment of article heading, section and Note filed 10-4-93; operative 11-3-93 (Register 93, No. 41).

3. Change without regulatory effect amending subsection (m) filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

4. Editorial correction of subsection (q) (Register 99, No. 50).

5. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

6. Change without regulatory effect amending section and Note filed 10-14-2004 pursuant to section 100, title 1, California Code of Regulations (Register 2004, No. 42).

§2057. Initial Application and Approval of a Simulcast Facility.

Note • History

No person, which includes any individual, partnership, corporation, or other association or organization, shall conduct or attempt to conduct wagering on the results of races simulcast from a race meeting held in this State unless authorized and permitted to do so by the Board as follows:

(a) A racing association, fair or other entity proposing to act as a guest association shall complete an Application for Authorization to Operate a Simulcast Wagering Facility (Form CHRB-25, Rev. 4/92) which is hereby incorporated by reference. Form CHRB-25 shall be available at the Board's administrative office. The application shall be filed with the Board at least ninety (90) days prior to the first day of racing for review, investigation and approval based on the following conditions:

(1) In order to allow an evaluation of the competence, integrity, and character of the applicant to operate a simulcast wagering facility, any person, corporation, trust association, partnership or joint venture shall submit with the application, a Personal History Record (Form CHRB-25A, Rev 7/93), which is hereby incorporated by reference, for the following:

(A) If the applicant is a corporation, the officers, directors, and each owner, directly or indirectly, of any equity, security or other ownership interest in the corporation. However, in the case of owners of publicly held equity securities of a publicly traded corporation, only the names and addresses of those known to the corporation to beneficially own five (5) percent or more of the publicly held securities need be disclosed.

(B) If the applicant is a trust, the trustee and all persons entitled to receive income or benefit from the trust.

(D) If the applicant is a subsidiary, the officers, directors, and stockholders of the parent company thereof. However, in the case of owners of a publicly held equity securities of a publicly traded corporation, only the names and addresses of those known to the corporation to beneficially own five (5) percent or more of the publicly held securities need be disclosed.

(E) If the applicant is a partnership or joint venture, all of the general partners, limited partners or joint venturers.

(F) If the parent company, general partner, limited partner, or joint venturer of any applicant is itself a corporation, trust, association, subsidiary, partnership, or joint venture, then the disclosure of such information, shall be made, as necessary, to determine ultimate ownership. However, in the case of owners of publicly held equity securities of a publicly traded corporation only the names and addresses of those known to the corporation to beneficially own five (5) percent or more of the publicly held securities need be disclosed.

(G) If the applicant employs a management company, disclosure shall apply to the management as set forth in subsections A through F as appropriate.

(2) The applicant has executed an agreement with a simulcast organization for the conduct of simulcast wagering at its facility; or may act on its own behalf by contracting with simulcast service suppliers and each individual racing association or fair to act as a guest association. A copy of each signed contract must accompany the application (Form CHRB-25, Rev. 4/92).

(3) Every licensed simulcast facility shall be inspected by the fire authority having jurisdiction as dictated by that authority's inspection schedule. After each inspection, a fire clearance by the fire authority must be obtained by the simulcast facility and filed with the Board within ten (10) calendar days of its receipt. This clearance must indicate that the facility meets the standard of fire safety set by the fire authority and that said facility is in compliance with fire safety codes as are applicable in that jurisdiction.

(4) Every simulcast facility shall be equipped with a downlink system consisting of a network broadcast quality satellite receiving antenna coupled with a broadcast specification Ku and/or C band receiver compatible with the encryption system used, with motorized directional control, electrical service, coaxial cabling, or equivalent or industry-accepted cabling, closed-circuit TV monitors and audio system, and a public address system.

(5) The guest association shall provide a patron area for parimutuel wagering and the observation of the satellite signal as received from the host association. The patron area shall be designated on the application by the applicant. Such area shall be the inclosure-public, as defined in Section 2056(j) in this Article, of the simulcast facility. No form of horse racing wagering, either in person, or by the use of runners, messengers, or otherwise shall be permitted outside the inclosure. All odds data made available to the guest association by the host association shall be displayed at all times. Effective January 1, 1994 for new facilities, the only offices permitted in restricted parimutuel access areas will be those required for operation of the parimutuel system.

(6) The guest association shall appoint and have on duty while racing is being conducted, a simulcast facility supervisor or an assistant simulcast facility supervisor as defined in Section 2056 (a) and (n) in this Article.

(7) Every person employed by a guest association within the restricted area of the inclosure, as defined in Section 1420(v) in this Division and Section 2056(j) in this Article, of the simulcast facility is required to be licensed pursuant to Sections 1440 and 1481 in this Division.

(8) Every guest association shall provide security personnel to protect the public and maintain the peace within the simulcast wagering facility. Additionally, the guest association shall maintain such security controls over its inclosure and premises, as defined in Section 1420(g) in this Division, the areas where uplink and downlink equipment is located, fencing, access gates, cables, wires and power lines and warning notifications where uplink and exterior equipment is located and the equipment room where inside downlink receiving components are located as the Board's Executive Director or his/her designee shall direct. Guest associations shall also remove, deny access to, eject or exclude persons as provided by Sections 1980 and 1989 in this Division.

Guest associations shall have the right to request, in writing, that the Chairman of the Board grant a stay from such security controls directed by the Executive Director within seventy-two (72) hours of the directive. If granted, such a stay shall remain in force until an appeal can be considered at the next regularly scheduled public meeting of the Board. An appeal must be submitted, in writing, at least two (2) weeks prior to the meeting date. The directive will be in force until a stay is issued or the Board renders its decision on the appeal. Decisions by the Board shall be final.

(9) No guest association shall conduct wagering on any race or races other than those approved by the Board or simulcast by its host association.

(10) No guest association, except as provided for in Business and Professions Code Section 19605.3, may discontinue its operation nor conduct any activity which would cause interruption of the signal without giving the Board and the host association prior written notice within fifteen (15) calendar days of such discontinuance or other change.

(11) Plans for new, proposed simulcast facility sites or for the remodeling or alteration of existing sites shall be submitted to the Board for review prior to the preparation of construction drawings. The Board shall review and approve said plans relative to security for the parimutuel operations, placement of data lines and overall compatibility with Board policy and regulation within thirty (30) working days from the date the plans were received. If applicable, the simulcast organization named in the agreement described in (a)(2) of this Section shall be notified by the guest association of the availability of the plans and shall have the right to review them relative to security for the parimutuel operations and placement of data lines and comment to the Board prior to Board approval or denial of the plans.

(12) In the case of a fair, the Department of Food and Agriculture must approve the application pursuant to the provisions of Sections 19605.1, 19605.2 and 19605.6 of the Business and Professions Code. Such approval is not required for the California Exposition and State Fair and the Los Angeles County Fair.

(b) The Board will notify an applicant in writing within fourteen (14) calendar days from the receipt date by the Board's Administrative office if its application is incomplete. This notice will include:

(1) Instructions as to what is required of the applicant to complete the application.

(2) Instructions for requesting additional time to satisfy the requirements listed in the notification, if needed.

(c) The Board shall approve or deny a completed application within sixty (60) calendar days from the receipt date by the Board unless the applicant requests and is granted additional time to supply information.

(d) If the Board denies approval of the application, the applicant has thirty (30) calendar days, from the receipt date of the Board's denial notification, to request a reconsideration of the Board's decision. This request must be in writing and sent to the Board's Administrative office. If reconsideration is denied, the applicant has thirty (30) days to file for Superior Court review in accordance with Section 19463 of the Business and Professions Code.

(e) The approval of the application by the Board shall constitute a license to operate as a simulcast wagering facility subject to the compliance provisions of Section 19433 of the Business and Professions Code.

NOTE

Authority cited: Sections 19420, 19440 and 19590, Business and Professions Code. Reference: Sections 19410, 19410.5, 19460, 19433, 19463, 19601, 19605, 19605.1, 19605.2, 19605.6, 19608, 19608.1 and 19608.2, Business and Professions Code; and Sections 15376 and 15378, Government Code.

HISTORY

1. New section filed 3-23-88 pursuant to a decision by the Governor overruling OAL's disapproval of this section on the basis that the Board's Notice of Proposed Rulemaking was invalidated by intervening statutory amendments (Government Code section 11349.5); operative 4-22-88 (Register 88, 17). The Horse Racing Board agreed to resolve all other legal issues identified in OAL's disapproval of these sections in a subsequent rulemaking.

2. Amendment of section heading, text and Note filed 10-4-93; operative 11-3-93 (Register 93, No. 41).

3. Amendment of subsection (a)(8) filed 7-21-95; operative 8-20-95 (Register 95, No. 29).

§2058. Duties of A Racing Association or Fair Offering Simulcast Wagering.

Note • History

(a) A racing association or fair may simulcast its racing program as the host association and/or any other association or fair racing programs as an authorized user either by forming its own simulcast organization as defined in Rule 2059 of this division or by acting on its own behalf by contracting with each individual fair or racing association simulcast facility or by contracting with an existing simulcast organization. If the association or fair acts on its own behalf, it is responsible for all of the provisions outlined in Rule 2060 of this division.

(b) A host association is responsible for the content and broadcast quality of its simulcast and shall use all reasonable effort to present a simulcast which offers viewers an exemplary depiction of its racing program, e.g., pre-race activities such as the paddock area, pony riders and racehorses on the track, the starting gate, the actual race in its entirety and post race activities such as the replay of the race, the finish line showing the horses crossing in slow motion, any replay where there is an inquiry by the stewards, the winner's circle and excerpts of the race. A periodic display of wagering information shall be shown, e.g., the odds information, win, place and show pools and the probable payouts on different types of wagers on the screen and scanning of the tote board on an intermittent basis. The simulcast shall contain continuity programming between horse racing events, e.g., display of the paddock and walking ring, replays of the previous race, the horses and outriders, odds information and overall activity at the track.

(c) Simulcasts must be encrypted using a time displacement decoding algorithm encryption system. If new technology is available, approval by the Board's Pari-mutuel Operations Committee must be obtained before its use by a simulcast facility. Approval shall be requested in writing to the Board. The Board shall act to approve the request at its next regularly scheduled Pari-mutuel Operations Committee meeting if the request is received two weeks before the meeting date.

(d) The content of every simulcast video will contain a digital display of the calendar date, time of day, name of the racetrack from where it emanates and the number of the race being displayed. All replays of races will be so designated on the video image.

(e) Every host association shall make its totalizator system available for common pooling of pari-mutuel amounts from guest associations with pari-mutuel pools. All wagers made available by a host association shall be made available to all simulcast facilities.

(f) If the host association is authorized by the Board to simulcast a feature race for wagering use by any California racing association, fair or simulcast facility, and is authorized, under Section 19601(a)(3) of the Business and Professions Code, not to combine the wagers made at the other association, fair or facility with its own pari-mutuel pools, the association shall nevertheless pay the license fee on all amounts wagered on the feature race based on the license fee schedule applicable to its race meeting.

(g) A facsimile (FAX) machine must be available at all times in the totalizator room for ease of administration when pools are merged with other simulcasting facilities.

NOTE

Authority cited: Section 19420, 19440 and 19590, Business and Professions Code. Reference: Sections 19460, 19480, 19601, 19602, 19605, 19605.1, 19605.2, 19605.3, 19605.4, 19605.6, 19608, 19608.1, 19608.2 and 19619.6, Business and Professions Code.

HISTORY

2. Amendment of section heading, text and Note filed 10-4-93; operative 11-3-93 (Register 93, No. 41).

3. Editorial correction of Authority cite (Register 95, No. 8).

4. Change without regulatory effect amending subsection (b) filed 12-23-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 52).

5. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§2059. Initial Application and Approval of a Simulcast Organization.

Note • History

(a) Any association, fair, entity or person proposing to act as a simulcast organization shall file an Application for Approval to Operate a Simulcast Organization, (Form CHRB-34, Rev. 1/91) which is hereby incorporated by reference, with the Board for approval based on the following conditions:

(1) The applicant is an entity authorized by law to conduct business in this state.

(2) The applicant establishes its banking accounts with an insured institution, has a principal office in California for the conduct of its business, retains a certified public account to conduct an annual audit of its financial statements or operations, agrees to submit an annual financial statement of its operations to the Board, and agrees to the inspection of its accounts and financial records by the Board or its agents.

(3) The applicant demonstrates, by including a copy of the organization's charter, articles or bylaws with the application (Form CHRB 34, Rev. 1/91), that it offers meaningful representation on its governing board to any non-racing fair or any horsemen's organization as provided in Section 19608.2 of the Business and Professions Code.

(4) The governing board of the applicant organization must hold one public meeting during each calendar year. At least fifteen (15) calendar days prior notice must be given in the Daily Racing Form or other newspaper of general circulation for the purpose of reporting the organization's activities and for receiving public comments as to its simulcasting operations. The simulcast organization shall give fifteen (15) calendar days prior notice, in writing, to its associations, fairs and the horsemen's organizations eligible to vote at the simulcast organization's governing board meeting and the Board of any simulcast organization meeting. The organization shall maintain a minute record of the proceedings of its governing board.

(1) Instructions as to what is required of the applicant to complete the application.

(2) Instructions for requesting additional time to satisfy the requirements listed in the notification, if needed.

(c) The Board will approve or deny a completed application within sixty (60) calendar days from the receipt date by the Board. The Board may withdraw, suspend or revoke its approval on grounds or reasons which include, but are not limited to, the following determinations:

(1) The simulcast organization is ineligible to conduct business in this state pursuant to any federal or state statute.

(2) The simulcast organization or any of its officers, directors, partners or principal management employees have engaged in any activity which is a grounds for denial, suspension or revocation of a license pursuant to this Division, or has failed, refused or neglected to comply with any Board order, rule, regulation, or order by the Board's stewards reasonably related to its operations as a simulcast organization. The approval shall remain denied, suspended or revoked until all parties of the organization comply with Board conditions. The remaining parties of the organization shall not be prohibited from applying for a new approval if compliance cannot be obtained from the offending party.

(3) The simulcast organization has failed, refused or neglected to perform any duty imposed by this Division or by the provisions of Sections 19608.2, 19605.7, 19605.71, or 19608.4 of the Business and Professions Code.

NOTE

Authority cited: Sections 19420, 19440 and 19590, Business and Professions Code. Reference: Sections 19608.2 and 19608.4, Business and Professions Code; and Sections 15376 and 15378, Government Code.

HISTORY

2. Amendment of section heading, text and Note filed 10-4-93; operative 11-3-93 (Register 93, No. 41).

§2060. Duties of a Simulcast Organization.

Note • History

A simulcast organization, under the supervision of the Board, conducts pari-mutuel wagering at one or more simulcast facilities on the results of horse races run at one or more host racing associations.

(a) The organization shall provide a copy of its operational agreement with each host or guest association and/or authorized user to the Board for approval within 10 calendar days following the execution date of the agreement. The Board shall act to approve or disapprove the agreement within 45 calendar days of the date of its receipt by collective action at a noticed public meeting. The Board shall act to approve the agreement when:

(1) The agreement with each host association specifies the terms and conditions under which the simulcast organization will administer the audio-visual transmission of the host association's racing program for simulcast wagering purposes, for a period of not less than the entire term of the host association's race meeting and on the conditions agreed upon by the parties.

(b) A simulcast organization shall provide the following to its guest locations:

(1) Pari-mutuel personnel/supervisor, pari-mutuel terminals and telecommunication equipment for the transmission and reception of pari-mutuel data to and from the totalizator utilized by the host association, pari-mutuel odds display data, and courier or armored transport services for the delivery of pari-mutuel funds and receipts for which the simulcast organization is responsible. Any pari-mutuel wagering odds display data available at the host association shall be available at all guest associations participating in that host's pari-mutuel pools.

(2) A communication system consisting of data and voice lines for operations when providing its audio-visual signals.

(3) A simulcast audiovisual signal of horse races being held or conducted at its contracting host associations. Every simulcast shall be encrypted using a time displacement decoding algorithm encryption method.

(4) Access to the totalizator equipment operated by the host association conducting its meeting to combine the pari-mutuel wagers from the guest associations with the pari-mutuel pools formed by the wagers accepted at the host association.

(c) A simulcast organization is strictly responsible to the Board to transmit the same high quality audio-visual signal as transmitted by the host association and for the conduct of pari-mutuel wagering at each contracting simulcast facility under this division, and as required by Business and Professions Code Section 19608.2.

(d) Audiovisual signals must be of broadcast quality and the simulcast organization shall initiate a test program of its transmitter, encryption and decoding system, and data and voice communication systems not later than 20 minutes before post time of the first race of the simulcast racing program to ensure proper operation of its system.

(e) The simulcast organization must insure that system failures which cause any public complaint, discontinuance of pari-mutuel wagering or facility closure are responded to by qualified technicians within 24 hours of the failures.

(f) The simulcast organization shall, at the written request of any representative of the Board, display a listing of all locations where the organization or its simulcast service supplier has placed a decoder unit. The listing shall include the serial number of each decoder, and whether or not the decoder is electronically enabled to decode the encrypted simulcast.

(g) The simulcast organization shall maintain security controls over its uplink and communication systems and its pari-mutuel operations as directed by the Board's Executive Director or his/her designee. The simulcast organization shall prevent unauthorized access to its pari-mutuel and totalizator areas and tampering with its audio-visual and communication equipment. Simulcast organizations have the right to request, in writing, that the Chairman of the Board grant a stay from the security controls directed by the Executive Director within 72 hours of the directive. If granted, the stay remains in force until an appeal can be considered at the next regularly scheduled public meeting of the Board. Appeals must be submitted, in writing, at least two weeks before the meeting date. The directive will be in force until a stay is issued or the Board renders its decision on the appeal. Decisions by the Board are final.

(h) A simulcast organization shall file with the Board an annual audited financial statement of its operations within 120 days after the end of its fiscal year of operation and permit the Board to examine its business records upon written request.

NOTE

Authority cited: Sections 19420, 19440 and 19590, Business and Professions Code. Reference: Sections 19608.2 and 19608.4, Business and Professions Code.

HISTORY

2. Amendment of section heading, text and Note filed 10-4-93; operative 11-3-93 (Register 93, No. 41).

3. Change without regulatory effect amending subsection (g) filed 6-7-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 23).

4. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

§2061. Duties of the Simulcast Facility Supervisor or Assistant Simulcast Facility Supervisor.

Note • History

The simulcast facility supervisor or assistant simulcast facility supervisor is responsible for the oversight of the facility to ensure compliance with the Board's laws, rules and regulations. The duties of a simulcast facility supervisor or assistant simulcast facility supervisor, in addition to any duties and responsibilities required by his/her employer, include, but are not limited to, immediately reporting to the Board or its stewards, in writing or by telephone, any violation of the Board's rules or regulations which come to their attention or of which they have knowledge. This includes referrals of matters involving misconduct of licensees to the host track stewards and ordering the exclusion or ejection of persons who are prohibited from participating in pari-mutuel wagering and from being present within any racing inclosure during a recognized race meeting. Additional duties include maintaining minutes of the conduct of each day's events at the simulcast location where assigned, supervising all phases of the facility which are directly related to the requirements of the Board's laws and regulations at the simulcast location. The supervisor does not hire or fire pari-mutuel employees nor does he/she oversee the performance of the pari-mutuel employees with regard to personnel matters. The supervisor does, however, have a responsibility to report to the Board any non-compliance with the Board's laws and regulations as they pertain to pari-mutuel matters.

NOTE

Authority cited: Sections 19420, 19440 and 19460, Business and Professions Code. Reference: Sections 19520, 19521 and 19522, Business and Professions Code.

HISTORY

1. New section filed 10-4-93; operative 11-3-93 (Register 93, No. 41). For prior history, see Register 93, No. 13.

2. Change without regulatory effect amending section filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

Article 25. Interstate Simulcast Wagering

§2063. Out-of-State and Interstate Wagering.

Note • History

(a) The Board shall authorize a racing association or a guest association to conduct simulcast wagering on the results of one or more races conducted by an out-of-state racing association, provided:

(1) The association intending to conduct wagering on an out-of-state race files with the Board a copy of the agreement with the out-of-state association and the written approvals required by Chapter 57, commencing with Section 3001, of Title 15 of the United States Code, and a statement setting forth the date and time it intends to commence accepting wagers on the out-of-state race(s).

(2) The Board approves the methods by which the out-of-state association intends to transmit the simulcast of its race(s) and the restrictions, if any, placed on the use of the simulcast, and the methods to be used to assure a separate voice communication system between its stewards and the stewards at the track where the race(s) are held.

(3) The out-of-state race(s) are qualified feature events and the fee to be paid for use of the out-of-state race(s) does not exceed 50% of the retained amount from pari-mutuel wagers after deduction for license fees, local government fee, and any mandated guest association fee.

(4) The Board determines that the conduct of wagering on the race(s) best serves the interest of the public and the sport of horse racing.

(b) The Board shall authorize a racing association to use its simulcast for interstate wagering by out-of-state betting systems provided:

(1) The association files with the Board a copy of the agreement with the out-of-state betting system which sets forth the payment to the association for use of its simulcast, and of any agreements required by Chapter 57, commencing with Section 3001, of Title 15 of the United States Code.

(2) Payment of the license fee required by Section 19602 (b) of the Business and Professions Code be made weekly, on the day specified by the Board, accompanied by a transmittal statement setting forth the gross amount received by the association from the interstate wagering use of its simulcast and the distribution of that gross amount.

(3) The simulcast complies with Rule 2057(d), (e) and (f) of this division.

(4) The Board determines that use of the simulcast by the out-of-state wagering systems best serves the interests of the public and sport of horse racing.

NOTE

Authority cited: Sections 19420, 19440 and 19590, Business and Professions Code. Reference: Sections 19596, 19596.5, 19601, 19602, 19615 and 19616, Business and Professions Code.

HISTORY

1. Renumbering of former section 2061 to section 2063 filed 3-25-93; operative 3-25-93 (Register 93, No. 13).

2. Editorial correction of subsection (b)(4) (Register 96, No. 49).

3. Change without regulatory effect amending section and Note filed 12-6-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 50).

Article 25.5. Minisatellite Wagering

§2066. Application for License to Operate a Minisatellite Wagering Facility.

Note • History

(a) An applicant for license to operate a minisatellite wagering facility shall complete an Application for License to Operate a Minisatellite Wagering Facility CHRB-228 (New 11/08), hereby incorporated by reference, which is available at the Board's headquarters office. Note: CHRB-228 incorporates by reference the Personal History Record form CHRB-25A (Rev. 9/08). The application must be filed not later than 90 days in advance of the scheduled start date of operation. The application must include a certified check in the amount of $500.00 payable to the Treasurer of the State of California for a nonrefundable application fee. The term of the license shall be two years from the date the license is issued.

(b) The Board may conduct investigations, inspections or request additional information from the applicant, as it deems appropriate in determining whether to approve the license.

(1) Upon the written request of the applicant the Board may waive the requirement for submission of a Full Disclosure Statement and CHRB-25A for persons who have a current valid state gambling license and/or finding of suitability issued by the California Gambling Control Commission.

(c) The Board, or its designee, shall be given access for review and audit of all records. The applicant shall, at its location during hours of operation, make such information available. The Board may require the applicant to annually submit audited financial statements.

(d) All advertisements shall contain a statement that persons under 21 are not allowed access to the minisatellite wagering site. All advertisements shall contain contact information for a recognized problem-gambling support organization.

(e) The Board shall notify the applicant in writing within 30 calendar days from the date the application is received by the Board's administrative office if the application is complete or deficient. If the application is deficient, the notice shall include:

(1) Instructions as to what is required of the applicant to complete the application.

(2) Instructions for requesting additional time to satisfy the requirements listed in the notification, if needed.

(f) The Board shall approve or deny an application within 90 calendar days from the date it is received by the Board unless the applicant requests and is granted additional time to supply information.

(g) If the Board denies an application, the applicant has 30 calendar days from the date of receipt of the Board's denial notification to request a reconsideration of the Board's decision. The request must be in writing and sent to the Board's headquarters office. The Board shall respond in writing to the reconsideration request within 30 working days from the date of receipt of the request. If reconsideration is denied, the applicant may file for judicial review in accordance with Business and Professions Code section 19463.

(h) After a license to operate a minisatellite wagering facility is issued under this article, changes or amendments to information or operating procedures contained in the application for the license will be permitted by order of the Board or by Board approval of a request submitted in writing by the applicant.

NOTE

Authority cited: Sections 19420, 19440, 19590 and 19605.25, Business and Professions Code. Reference: Sections 19410.7, 19460 and 19605.25, Business and Professions Code.

HISTORY

1. New section filed 3-5-2009; operative 4-4-2009 (Register 2009, No. 10).

2. Change without regulatory effect amending subsection (a) filed 4-26-2012 pursuant to section 100, title 1, California Code of Regulations (Register 2012, No. 17).

Article 26. Advance Deposit Wagering

§2070. Definitions.

Note • History

As used in this article:

(a) “Account” means an Advance Deposit Wagering Account used to record credits, debits, deposits and withdrawals.

(b) “Account Holder” means a natural person that has established an Account.

(c) “Account Number” means a unique identification number designated by the Licensee, Betting System, CA Hub or out-of-state Hub.

(d) “Advanced Deposit Wagering” means a form of pari-mutuel wagering in which an Account Holder residing within or outside California establishes an Account and then authorizes a Board approved Licensee, Betting System, CA Hub or out-of-state Hub by telephone or Other Electronic Media to place wagers on horse racing on the Account Holder's behalf. Only the Licensee, Betting System, CA Hub or out-of-state Hub that holds the Account can make an advance deposit wager for the Account Holder. Wagering instructions that concern funds held in an Account shall be deemed issued within the inclosure of the Licensee.

(e) “Applicant” means any entity including, but not limited to, corporations, partnerships, limited liability companies, limited partnerships, or individuals that file an Application to conduct Advance Deposit Wagering.

(f) “Application” means the CHRB-132 application that must be Board-approved prior to a Licensee, Betting System or CA Hub being licensed or the CHRB-133 application that must be Board-approved prior to an out-of-state Hub being approved.

(g) “Betting System” means a business conducted exclusively in California that facilitates pari-mutuel wagering on races it simulcasts and other races it offers in its wagering menu.

(h) “Board” means the California Horse Racing Board.

(i) “Confidential Information” means the following:

(1) The amount of money credited to, debited from, or present in any particular Account Holder's Account;

(2) The amount of money wagered by a particular Account Holder on any races or series of races;

(3) The Account Number and secure Means of Personal Identification of an Account Holder;

(4) The identities of particular entries on which the Account Holder is wagering or has wagered;

(5) Unless otherwise authorized by the Account Holder, the name, address, and other information in possession of the Licensee, Betting System, CA Hub or out-of-state Hub that would identify the Account Holder to anyone other than the Board, Licensee, Betting System, CA Hub or out-of-state Hub.

(j) “Credits” means all positive inflow of money to an Account.

(k) “Debits” means all negative outflow of money when placing a wager from an Account or for the purchase of horse racing related merchandise and services.

(l) “Deposit” means a credit of money to an Account from an Account Holder.

(m) “Licensee” means an association or fair licensed to conduct a horse racing meeting only within the inclosure and on the dates the Board authorized horse racing.

(n) “Market Access Fee” means the contractual fee paid by a Betting System, CA Hub or out-of-state Hub to the California Licensee for access to the California market for wagering purposes. The fee shall be distributed in accordance with Section 19604(g) of the Business and Professions Code.

(o) “Means of Personal Identification” means the unique number, code or other secure technology designated by an Account Holder to assure that only the Account Holder has access to his or her Account.

(p) “Multi-jurisdictional Wagering Hub” means a business conducted in more than one jurisdiction that facilitates pari-mutuel wagering on races it simulcasts and other races it offers in its wagering menu. The term “CA Hub” will be used for locations in California and “out-of-state Hub” for locations outside California.

(q) “Natural Person” means any person at least 18 years of age.

(r) “Other Electronic Media” means any electronic communication device or combination of devices including, but not limited to, personal computers, the Internet, private networks, interactive television and wireless communication technologies or other technologies approved by the Board.

(s) “Proper Identification” means a form of identification that establishes the person making a transaction is the Account Holder.

(t) “Withdrawal” means a payment from an Account by the Licensee, Betting System, CA Hub or out-of-state Hub to the Account Holder.

(u) “Withdrawal Slip” means the form provided by the Licensee, Betting System, CA Hub or out-of-state Hub to an Account Holder to withdraw funds.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Section 19604, Business and Professions Code.

HISTORY

1. New article 26 (sections 2070, et seq.) and section filed 1-3-2002; operative 1-3-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 1).

§2071. License to Conduct Advance Deposit Wagering by a California Applicant.

Note • History

(a) Prior to an Account being established or wagering being conducted the Applicant located in California must be licensed by the Board. All licenses granted shall be subject to the provisions of Business and Professions (B&P) Code Section 19460 et. seq.

(b) An Applicant for license shall complete an Application for License to Conduct Advance Deposit Wagering, CHRB-132 (New 9/01), hereby incorporated by reference, which is available at the Board's administrative office. The Application must be filed not later than 90 days in advance of the scheduled start date of operation. A bond from a surety company admitted in the state of California or other form of financial security in the amount of $500,000 must accompany the Application. The term of the license shall be two years from the date the license is issued.

(d) Applicants that accept wagers from California residents shall provide a full accounting and verification of the source of the wagers, and a detailed wagering information file that includes, but is not limited to, dollar amount wagered, pool on which the wager was placed, race number and racing venue, zone, breed, zip code of the Account Holder, time wagering stopped, and time of the wager in the form of a daily download of pari-mutuel data to the Board designated database, California Horse Racing Information Management System, that is compatible with a Comma Delimited Text File.

(e) Applicants shall provide financial information that demonstrates the financial resources to operate Advance Deposit Wagering and provide a detailed budget that shows anticipated revenue, expenditures and cash flows by month projected for the term of the license.

(f) The Board may conduct investigations, inspections or request additional information from the Applicant as it deems appropriate in determining whether to approve the license.

(g) The Board, or its designee, shall be given access for review and audit of all records. The Applicant shall, at their location during hours of operation, make such information available. The Board may require the Applicant to annually submit audited financial statements.

(h) All advertisements shall contain a statement that persons under 18 are not allowed to open or have access to Accounts. All advertisements shall contain contact information for a recognized problem-gambling support organization.

(i) Applicants shall enter into a written contractual agreement with the bona fide labor organization that has historically represented the same or similar classifications of employees at the nearest horse racing meeting.

(j) The Board shall notify the Applicant in writing within 30 calendar days from the receipt date by the Board's administrative office if the Application is complete or deficient. If the Application is deficient, the notice shall include:

(1) Instructions as to what is required of the Applicant to complete the Application.

(2) Instructions for requesting additional time to satisfy the requirements listed in the notification, if needed.

(k) The Board shall approve or deny an Application within 90 calendar days from the receipt date by the Board unless the Applicant requests and is granted additional time to supply information.

(l) If the Board denies an Application, the Applicant has 30 calendar days, from the receipt date of the Board's denial notification, to request a reconsideration of the Board's decision. The request must be in writing and sent to the Board's administrative office. The Board shall respond in writing to the reconsideration request within 30 working days from the receipt date of the request. If reconsideration is denied, the Applicant may file for judicial review in accordance with Section 11523 of the Government Code.

(m) Subsequent to the issuance of a license to conduct Advance Deposit Wagering under this article, changes or amendments to information or operating procedures contained in an Application will be permitted by order of the Board or by Board approval of a request submitted in writing by the Applicant.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Sections 19460 and 19604, Business and Professions Code.

HISTORY

1. New section filed 1-7-2002; operative 1-7-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§2072. Approval to Conduct Advance Deposit Wagering by an Out-of-State Applicant.

Note • History

(a) Prior to an Account being established or wagering being conducted the Applicant located out-of-state must be Board-approved. All approvals granted shall be subject to the provisions of Business and Professions (B&P) Code Section 19460 et. seq.

(b) An out-of-state Applicant shall complete an Application For Approval to Conduct Advance Deposit Wagering, CHRB-133 (New 9/01), hereby incorporated by reference, which is available at the Board's administrative office. The Application must be filed not later than 90 days in advance of the scheduled start date of operation. A bond from a surety company admitted in the state of California or other form of financial security in the amount of $500,000 must accompany the Application. The term of approval is two years from the date the approval is issued.

(d) Out-of-state Applicants that accept wagers from California residents shall provide a full accounting and verification of the source of the wagers, and a detailed wagering information file that includes, but is not limited to dollar amount wagered, pool on which the wager was placed, race number and racing venue, zone, breed, zip code of the Account Holder, time wagering stopped, and time of the wager in the form of a daily download of pari-mutuel data to the Board designated database, California Horse Racing Information Management System, that is compatible with a Comma Delimited Text File.

(e) Out-of-state Applicants shall provide financial information that demonstrates the financial resources to operate Advance Deposit Wagering and provide a detailed budget that shows anticipated revenue, expenditures and cash flows by month projected for the term of the approval.

(f) The Board may conduct investigations, inspections or request additional information from the out-of-state Applicant as it deems appropriate in determining whether to approve the Application.

(g) The Board, or its designee, shall be given access for review and audit of all records. The out-of-state Applicant shall, at their location during hours of operation, make such information available. The Board may require the out-of-state Applicant to annually submit audited financial statements.

(i) The Board shall notify the out-of-state Applicant in writing within 30 calendar days from the receipt date by the Board's administrative office if the Application is complete or deficient. If the Application is deficient, the notice shall include:

(1) Instructions as to what are required of the out-of-state Applicant to complete the Application.

(2) Instructions for requesting additional time to satisfy the requirements listed in the notification, if needed.

(j) The Board shall approve or deny an Application within 90 calendar days from the receipt date by the Board unless the out-of-state Applicant requests and is granted additional time to supply information.

(k) If the Board denies an Application, the out-of-state Applicant has 30 calendar days from the receipt date of the Board's denial notification, to request a reconsideration of the Board's decision. This request must be in writing and sent to the Board's administrative office. The Board shall respond in writing to the reconsideration request within 30 working days from the receipt date of the request. If reconsideration is denied, the out-of-state Applicant may file for judicial review in accordance with Section 11523 of the Government Code.

(l) Subsequent to the issuance of an approval to conduct Advance Deposit Wagering under this article, changes or amendments to information or operating procedures contained in an Application will be permitted by order of the Board or by Board approval of a request submitted in writing by the Applicant.

(m) As a condition of approval the out-of-state Applicant shall designate a California agent for receipt of service of process.

(n) By submitting the Application the out-of-state Applicant consents to the jurisdiction of California courts and the application of California law as to all California wagers and operations.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Sections 19460 and 19604, Business and Professions Code.

HISTORY

1. New section filed 1-7-2002; operative 1-7-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§2073. Operation of an Advance Deposit Wagering Account for All Entities.

Note • History

(a) The entity may suspend or close an Account. Any Account with no activity for at least six months may be closed. When an Account is closed the entity shall return any funds within five business days to the Account Holder at the address of record.

(b) Funds shall be in an interest bearing Account.

(d) Residents of California shall not be charged a surcharge on any winning wager.

(e) Wagers shall be accepted during the days and times designated as operating on the CHRB-132 for California entities and the CHRB-133 for entities outside California. The entity may close for receiving wagers on any pari-mutuel pool, race(s), or close for all wagering. Anytime the entity closes during the times designated as operating on the CHRB-132 and CHRB-133 a written report shall be filed with the Board within two business days.

(f) All wagering conversations, transactions or other wagering communications through the Advance Deposit Wagering system, verbal or electronic, shall be recorded by means of electronic media, and the tapes or other records of such communications shall be kept by the entity for 180 days. The tapes and other records shall be made available to the Board upon request or order by the Executive Director.

(g) The total amount of all Account wagers shall be included in the respective pools for each race and shall be combined into the licensee's pools or directly into the corresponding pools of the host track.

(h) Accounts are for personal use only and the Account Holder is responsible to maintain the secrecy of the Account Number and Means of Personal Identification. The Account Holder must immediately notify the entity of any breach of the Account's security.

(i) Upon request of the Account Holder the entity shall provide a statement detailing Account activity for the immediate 30 days prior to the request. Unless the entity receives written notice disputing the statement within 14 days of the date a statement is forwarded, it shall be deemed to be correct.

(j) The address provided or the application to establish an Account is deemed the address of record for mailing checks, statements of Account, Account withdrawals, notices, or other correspondence. It is the responsibility of the Account Holder to notify the entity of any address change.

(k) No employee or agent of the entity shall divulge any Confidential Information related to the placing of any wager or any Confidential Information related to the operation of the Advance Deposit Wagering system without the consent of the Account Holder, except to the Account Holder as required by this article, the Board, and as otherwise required by state of federal law.

(l) Account Holders shall designate if they want to use a credit card to make deposits to their Account. Changes to the designation shall require 24 hours' notice to the entity.

NOTE

Authority cited: Sections 19440, 19590 and 19604, Business and Professions Code. Reference: Section 19604, Business and Professions Code.

HISTORY

1. New section filed 1-7-2002; operative 1-7-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

2. Amendment of subsection (f) and repealer of subsection (m) filed 3-4-2009; operative 4-3-2009 (Register 2009, No. 10).

§2074. Requirements to Establish an Advance Deposit Wagering Account with a California Entity.

Note • History

(a) Accounts shall be established in person, by mail, telephone or Other Electronic Media before any wagering shall be conducted. An Account shall only be established in the name of a natural person and is non-transferable.

(b) Any individual prohibited from wagering under Rule 1980 shall be prohibited from establishing an Account or placing a wager.

(1) Account Holder's full legal name.

(2) Principal residence address.

(3) Telephone number.

(4) Social security number.

(5) Identification or certification to prove the Account Holder is at least 18 years of age.

(6) Whether the Account Holder wants to use a credit card to make deposits to their Account.

(d) The entity shall employ electronic verification with respect to each Account Holder's name, principal residence address, date of birth and Social Security number at the time of Account establishment by a Board-approved national, independent, individual reference company or another independent technology approved by the Board which meets or exceeds the reliability, security, accuracy, privacy and timeliness provided by individual reference service companies.

(e) The entity may refuse to establish an Account if it is found that any of the information supplied is untrue or incomplete.

(f) When an Account is established the entity shall designate an Account Number for each Account. The number can be changed provided the Account Holder is informed prior to any change.

(g) The Account Holder shall designate a Means of Personal Identification to use to access their Account.

(h) The entity shall inform the Account Holder of the assigned Account Number and provide a copy of its Advance Deposit Wagering procedures, terms and conditions as well as any information that pertains to the operation of the Account.

(i) Each entity shall, at all times, comply with Internal Revenue Service (IRS) requirements for reporting and withholding proceeds from Advance Deposit Wagers by Account Holders and shall send to Account Holders subject to IRS reporting or withholding a Form W2-G summarizing the information for tax purposes following a winning wager being deposited into an Account. Upon written request, the entity shall provide Account Holders with summarized tax information on Advance Deposit Wagering activities.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Section 19604, Business and Professions Code.

HISTORY

1. New section filed 1-3-2002; operative 1-3-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 1).

§2075. Requirements to Establish an Advance Deposit Wagering Account with an Out-of-State Hub.

Note • History

(b) Any individual prohibited from wagering under Rule 1980 shall be prohibited from establishing an Account or placing a wager.

(1) Account Holder's full legal name.

(2) Principal residence address.

(3) Telephone number.

(4) Social Security number.

(5) Identification or certification to prove the Account Holder is at least 18 years of age.

(6) Whether the Account Holder wants to use a credit card to make deposits to their Account.

(d) The Hub shall employ electronic verification with respect to each Account Holder's name, principal residence address, date of birth and Social Security number at the time of Account establishment by a Board-approved national, independent, individual reference company or another independent technology approved by the Board which meets or exceeds the reliability, security, accuracy, privacy and timeliness provided by individual reference service companies.

(e) The Hub may refuse to establish an Account if it is found that any of the information supplied is untrue or incomplete.

(f) When an Account is established the Hub shall designate an Account Number for each Account. The number can be changed provided the Account Holder is informed prior to any change.

(g) The Account Holder shall designate a Means of Personal Identification to use to access their Account.

(h) The Hub shall inform the Account Holder of the assigned Account Number and provide a copy of its Advance Deposit Wagering procedures, terms and conditions as well as any information that pertains to the operation of the Account.

(i) Each Hub shall, at all times, comply with Internal Revenue Service (IRS) requirements for reporting and withholding proceeds from Advance Deposit Wagers by Account Holders and shall send to Account Holders subject to IRS reporting or withholding a Form W2-G summarizing the information for tax purposes following a winning wager being deposited into an Account. Upon written request, the Hub shall provide Account Holders with summarized tax information on Advance Deposit Wagering activities.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Section 19604, Business and Professions Code.

HISTORY

1. New section filed 1-3-2002; operative 1-3-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 1).

§2076. Deposits to an Advance Deposit Wagering Account with All Entities.

Note • History

(a) Deposits to an Account shall be made in the following form:

(1) Cash deposits made directly.

(2) Personal checks, cashier's checks and money orders made directly or mailed.

(3) Debits to an Account Holder's credit card or debit card, upon direct instructions of the Account Holder, providing the use of such card has been pre-approved by the entity and designated by the Account Holder.

(4) Debits by electronic fund transfer (EFT) from a monetary account controlled by an Account Holder. The Account Holder may be liable for any charges imposed by the transmitting or receiving entity and the charges may be deducted from the Account Holder's Account.

(b) Cashier's checks, money orders and EFTs shall be given immediate credit upon presentation. Credit cards or debit cards shall be given immediate credit upon authorization from the issuer.

NOTE

Authority cited: Sections 19440, 19590 and 19604, Business and Professions Code. Reference: Section 19604, Business and Professions Code.

HISTORY

1. New section filed 1-7-2002; operative 1-7-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§2077. Placing an Advance Deposit Wager with all Entities.

Note • History

(a) Debits to an Account shall be made in the following form:

(1) The entity shall debit the amount wagered by an Account Holder.

(2) Wagers shall not be accepted in an amount in excess of an Account balance.

(3) The entity may debit the Account for service or other transaction-related charges.

(4) The entity may debit the Account for purchases of horse racing related merchandise and services requested by an Account Holder.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Section 19604, Business and Professions Code.

HISTORY

1. New section filed 1-3-2002; operative 1-3-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 1).

§2078. Withdrawals from an Advance Deposit Wagering Account with All Entities.

Note • History

(a) Withdrawals shall be completed within five business days after the entity receives a request from an Account Holder by mail, by telephone, or Other Electronic Media accompanied by the valid Account Number and a Means of Personal Identification or, if by mail, a signed completed Withdrawal Slip.

(1) If sufficient funds are available, the entity shall send a check payable to the Account Holder in the amount of the requested withdrawal to the address of record.

(2) If sufficient funds are not available, the entity shall, within five business days of receipt, provide notification to the Account Holder of insufficient funds and send a check payable to the Account Holder in the amount of the funds available to the address of record.

(b) An EFT may be used in lieu of a check at the discretion of the Account Holder and the entity subject to the same conditions set forth in Rule 2076.

(c) Account Holders may make withdrawals in person with such identification as required by the entity, the valid Account Number, and a Means of Personal Identification.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Section 19604, Business and Professions Code.

HISTORY

1. New section filed 1-10-2002; operative 1-10-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§2079. Credit for Winning Wagers and Scratched Entries.

Note • History

The Licensee, Betting System, CA Hub or out-of-state Hub shall post credits for winnings from advance deposit wagers and any credit for wagers on a scratched entry to the Account after the race is declared official.

NOTE

Authority cited: Sections 19440, 19590 and 19604, Business and Professions Code. Reference: Section 19604, Business and Professions Code.

HISTORY

1. New section filed 1-3-2002; operative 1-3-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 1).

§2080. Proceeds from a Deceased Account Holder.

Note • History

If an Account Holder is deceased the Licensee, Betting System, CA Hub or out-of-state Hub shall release the funds in the Account to the decedent's legal representative upon receipt of a copy of a probate court authorization or other documents as required by applicable California or other state laws.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Section 19604, Business and Professions Code.

HISTORY

1. New section filed 1-3-2002; operative 1-3-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 1).

§2081. Market Access Fee for Wagers Placed by a California Resident.

Note • History

(a) The entity taking the wager shall pay to the appropriate California Licensee a market access fee based upon the amount of the handle generated by a resident of California as stipulated in the contractual agreement between the entity and the California Licensee and as specified and approved by the Board.

(b) The market access fee shall be equal to the amount of the wagers less payment of the winning wagers and the contractual compensation and host fee, if any.

(c) Such wagers are to be included in the appropriate pools of the host racing association and daily downloads of the details of the wager(s) will be made to the pari-mutuel database designated by the Board.

NOTE

Authority cited: Sections 19440 and 19590, Business and Professions Code. Reference: Section 19604, Business and Professions Code.

HISTORY

1. New section filed 1-18-2002; operative 1-18-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 3).

§2082. Interest Bearing Accounts.

Note • History

The first $250,000 in interest earned on California resident's Accounts shall be transferred annually, split between the corresponding horsemen's welfare fund and the backstretch pension plan for the benefit of backstretch employees. Interest in excess of $250,000 shall be transferred annually, split between the corresponding horsemen's organizations for purses as designated in Business and Professions Code Section 19613.

NOTE

Authority cited: Sections 19440, 19590 and 19604, Business and Professions Code. Reference: Sections 19604 and 19613, Business and Professions Code.

HISTORY

1. New section filed 1-7-2002; operative 1-7-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§2083. Advanced Deposit Wagering Prohibited.

Note • History

(a) Individuals prohibited from wagering under Rule 1969 shall be prohibited from placing an advance deposit wager while on duty at a race meeting, simulcast wagering facility or an advance deposit wagering facility located in California.

(b) Individuals working at an out-of-state Hub shall be prohibited from placing an advance deposit wager while on duty.

NOTE

Authority cited: Sections 19440, 19590 and 19604, Business and Professions Code. Reference: Section 19604, Business and Professions Code.

HISTORY

1. New section filed 1-4-2002; operative 1-4-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 1).

Article 28. Backstretch Worker Housing

§2100. General Provisions.

Note • History

Backstretch worker housing that is provided by an association shall be maintained in accordance with this article and shall be kept free from debris, garbage, vermin and other matter that may be hazardous to the health and safety of backstretch workers.

NOTE

Authority cited: Sections 19440 and 19481.5(b), Business and Professions Code. Reference: Section 19481.5, Business and Professions Code; and Section 17920.3, Health and Safety Code.

HISTORY

1. New article 28 (sections 2100-2105) and section filed 5-7-2002 as an emergency; operative 5-7-2002 (Register 2002, No. 19). Pursuant to Business and Professions Code section 19481.5(b)(3), a Certificate of Compliance must be transmitted to OAL by 11-7-2003 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 5-7-2002 order transmitted to OAL 8-19-2003 and filed 9-23-2003 (Register 2003, No. 39).

§2101. Definitions.

Note • History

As used in this article:

(a) “Backstretch worker” means a person required to be licensed under Rule 1481(c) of this division.

(b) “Backstretch worker housing”, “habitable room” means any structure or portion of a structure whose primary purpose is for sleeping or living and is located within the restricted area of the inclosure as defined in Rule 1420(v) of this division.

(c) “Damaged” means property in a condition in which its worth or usefulness is impaired. Damage includes, but is not limited to backstretch worker housing whose components are split, buckled, sagging, rotting, broken or defective.

(d) “Substandard housing” means backstretch worker housing or a habitable room, or any portion thereof, which through lack of maintenance or repair there exists any of the following conditions to an extent that endangers the health, safety or welfare of the occupants.

(1) Lack of toilet or privy structure, bathtub or shower, or hot and cold running water.

(2) Plumbing fixtures and piping that have become unsanitary or damaged.

(3) Lack of exterior wall or roof covering adequate to protect the occupants from the elements.

(4) Damaged exterior wall or roof coverings.

(5) Damaged windows, exterior window coverings, or doors.

(6) Lack of natural light and ventilation.

(7) Damaged interior walls, ceilings or floors.

(8) Lack of interior flooring adequate to protect occupants from the elements.

(9) Dampness of habitable rooms.

(10) Lack of garbage and rubbish removal as required under Rule 3010 of this article.

(11) Infestation of insects, rodents or other vermin.

(12) Lack of smoke detector in working order, or other fire alarm system as required under Rule 1927 of this division.

(13) Lack of emergency evacuation plan as required under Rule 1928 of this division.

NOTE

Authority cited: Sections 19440 and 19481.5(b), Business and Professions Code. Reference: Section 19481.5, Business and Professions Code; and Section 17920.3, Health and Safety Code.

HISTORY

1. New section filed 5-7-2002 as an emergency; operative 5-7-2002 (Register 2002, No. 19). Pursuant to Business and Professions Code section 19481.5(b)(3), a Certificate of Compliance must be transmitted to OAL by 11-7-2003 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 5-7-2002 order transmitted to OAL 8-19-2003 and filed 9-23-2003 (Register 2003, No. 39).

3. Change without regulatory effect amending subsections (d)(1) and (d)(12) filed 10-14-2004 pursuant to section 100, title 1, California Code of Regulations (Register 2004, No. 42).

§2102. Backstretch Worker Housing Inspection Required.

Note • History

(a) Associations and racing fairs that provide backstretch worker housing shall, at least annually, submit to an inspection of such housing. The inspection shall be conducted by a designated representative of the Board with assistance from the California Department of Housing and Community Development or a local housing authority for the jurisdiction in which the track is located.

(b) Racing Fairs with race meetings of 19 days or less shall comply with this section contingent upon the provisions of Business and Professions Code Section 19481.5(b)(3).

(c) No license to conduct a horse racing meeting shall be issued unless the applicant association's backstretch worker housing is found to be in compliance with the standards established in this article.

(d) The Board shall be reimbursed by the association or racing fair for the costs incurred to conduct the backstretch worker housing inspection.

NOTE

Authority cited: Sections 19440 and 19481.5(b), Business and Professions Code. Reference: Section 19481.5, Business and Professions Code.

HISTORY

2. Certificate of Compliance as to 5-7-2002 order, including amendment of subsection (a), transmitted to OAL 8-19-2003 and filed 9-23-2003 (Register 2003, No. 39).

3. Change without regulatory effect amending section filed 10-14-2004 pursuant to section 100, title 1, California Code of Regulations (Register 2004, No. 42).

§2103. Habitable Rooms.

Note • History

(a) Habitable rooms used for sleeping shall have natural light by means of at least one exterior window that, if it can be opened, has screening with a tight fitting frame. Natural ventilation shall be provided by exterior openings that can be opened, or in lieu of exterior openings a mechanical ventilating system.

(b) Habitable room exterior doors shall be tight fitting and outfitted with door sweeps.

(c) Interior walls, ceilings and floors of habitable rooms may not be damaged or cause exposure to outside elements or exposed earth.

(d) Habitable rooms shall be provided with electrical switches, outlets and at least one electric light. Electric components in a habitable room shall be installed to state or local building codes and maintained in a manner that does not endanger the health or safety of the occupants.

(e) Habitable rooms used for sleeping shall be provided with battery operated smoke detectors that shall be maintained in working order, or any other approved fire alarm system as provided under Rule 1927 of this division. Fire regulations and an emergency evacuation plan shall be posted in backstretch worker housing areas as provided under Rule 1928 of this division.

(f) The dimensions of a habitable room shall not be less than seven feet in any direction and shall provide not less than 50 square feet of space per person.

NOTE

Authority cited: Sections 19440 and 19481.5(b), Business and Professions Code. Reference: Section 19485.1, Business and Professions Code.

HISTORY

2. Certificate of Compliance as to 5-7-2002 order, including amendment of subsection (a), transmitted to OAL 8-19-2003 and filed 9-23-2003 (Register 2003, No. 39).

3. Change without regulatory effect amending subsection (e) filed 10-14-2004 pursuant to section 100, title 1, California Code of Regulations (Register 2004, No. 42).

§2104. Sanitation Facilities.

Note • History

Toilet rooms and bath and shower rooms shall be provided separately for each sex, shall be lighted, ventilated to the outside atmosphere, and shall have hot and cold running water under pressure. All such rooms, and the fixtures, equipment, and plumbing therein, shall be maintained in a state of working order and free from dirt, filth and corrosion.

NOTE

Authority cited: Sections 19440 and 19481.5(b), Business and Professions Code. Reference: Section 19481.5, Business and Professions Code.

HISTORY

2. Certificate of Compliance as to 5-7-2002 order, including amendment of section, transmitted to OAL 8-19-2003 and filed 9-23-2003 (Register 2003, No. 39).

§2105. Pest Control.

Note • History

(a) The association shall conduct a program of abatement to control the presence of rodents, flies, cockroaches, mosquitoes, and other vermin in and around backstretch worker housing. The methods of control shall include, but not be limited to:

(1) The daily removal of all materials that contribute to the breeding and harboring of vermin, such as horse excrement, garbage, refuse, or any other putrid or offensive animal or vegetable matter.

(2) A program of spraying or baiting for insects or rodents.

NOTE

Authority cited: Sections 19440 and 19481.5(b), Business and Professions Code. Reference: Section 19481.5, Business and Professions Code.

HISTORY

2. Certificate of Compliance as to 5-7-2002 order, including amendment of subsection (a), transmitted to OAL 8-19-2003 and filed 9-23-2003 (Register 2003, No. 39).

Division 5. Division of Consumer Services (Travel Promoters)

(Originally Printed 3-9-73)

NOTE

Authority cited: Section 4922.5, Public Utilities Code. Additional authority cited: Section 9891.11, Business and Professions Code.

HISTORY

1. New Chapter 5 (Sections 2100 through 2109) filed 3-9-73 as an emergency; effective upon filing (Register 73, No.11).

2. Certificate of Compliance filed 7-6-73 (Register 73, No. 27).

3. Repealer of Chapter 5 (§§ 2100-2109) filed 10-30-75; effective thirtieth day thereafter (Register 75, No. 44).

Division 6. Outdoor Advertising, Department of Transportation

(Originally Printed 3-22-45)

Chapter 1. Outdoor Advertising—General

§2240. Scope.

Note • History

(a) The purpose of this Division is to implement, interpret, make specific, and otherwise carry out the provisions of the California Outdoor Advertising Act, Business and Professions Code Sections 5200, et seq.

(b) The provisions of this Division apply to the placing of a Display in the following areas:

(1) A Display that is placed within 660 feet from the edge of the right of way of an interstate or a primary highway and is visible from the highway, including a Display located in an incorporated area.

(2) A Display that is placed beyond 660 feet from the edge of the right of way and is designed to be viewed primarily from an interstate or a primary highway, including a Display located in an incorporated area.

(3) A Display placed and visible from any other highway in an unincorporated area.

(d) The provisions set forth in this Division are cumulative to all other applicable laws and regulations controlling a Display.

NOTE

Authority cited: Sections 5250, 5251, and 5415, Business and Professions Code. Reference: Sections 5200-5486, 5270, 5271, 5408.1, 5463 and 5465, Business and Professions Code; Title 23 United States Code, Section 131; and Title 23 Code of Federal Regulations, Section 750.701.

HISTORY

1. New section filed 5-12-65 as an emergency; designated effective 5-15-65. Certificate of Compliance--Section 11422.1, Government Code, included (Register 65, No. 7).

2. Amendment filed 3-26-71; effective thirtieth day thereafter (Register 71, No. 13).

3. Amendment filed 8-21-74; effective thirtieth day thereafter (Register 74, No. 34).

4. Amendment of section and Note filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

5. New subsection (e) filed 7-17-2006 as an emergency; operative 7-17-2006 (Register 2006, No. 29). A Certificate of Compliance must be transmitted to OAL by 11-14-2006 or emergency language will be repealed by operation of law on the following day.

6. Reinstatement of section as it existed prior to 7-17-2006 order by operation of Government Code section 11346.1(f) (Register 2007, No. 41).

§2241. Enforcement.

Note • History

(a) The Department of Transportation and the Director or the Director's designee is hereby authorized and directed to enforce the provisions of the Act and these regulations, and are further authorized and directed to revoke a license or a permit and remove a Display for violating any provision of the Act or these regulations.

(b) All hearings provided for in these regulations shall be conducted in accordance with the provisions of Chapter 5, commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code (the “California Administrative Procedures Act”). Any such hearing must be requested by filing a written appeal with the Director (c/o the Office of Outdoor Advertising) within thirty (30) calendar days of the written violation notice, denial, revocation or other determination being appealed. The Director shall thereafter issue a decision, based on finding of fact, affirming, modifying or vacating the denial, revocation or other determination.

(1) The written appeal shall contain the name and company affiliation, if any, address and phone number of the person appealing, the permit or license number, if any, the location of the billboard, with specificity and a statement of the basis for the appeal.

(2) No person shall be entitled to more than one hearing stemming from the same written violation notice, denial, revocation, other determination or set of facts. Hearings will be held in Sacramento, Los Angeles, or San Diego. The Director may agree to hold a hearing at a different locale under extraordinary circumstances.

(3) The failure of a permittee or other person who has appealed to appear at the time and place of the hearing shall be deemed a withdrawal of the appeal, and the written violation notice, denial, revocation or other determination shall constitute a final order of the Director and not be subject to further administrative review.

(4) Nothing herein prevents the Department and affected party or parties from attempting to resolve the dispute informally; however, informal attempts at resolution shall not extend the thirty (30) day period to file an appeal under these regulations.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5250 and 5463, Business and Professions Code; and 23 USC Section 131(r)(2).

HISTORY

1. New section filed 6-25-76; effective thirtieth day thereafter (Register 76, No. 26).

2. Amendment of NOTE filed 7-22-77 as procedural and organizational; effective upon filing (Register 77, No. 30).

3. Repealer and new section filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

4. Designation of existing section as subsection (a) and new subsections (b)-(b)(4) filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2242. Definitions.

Note • History

The following terms when used in this Title 4, Division 6, have the following meanings:

(a) “Accepted” means the official act of acceptance by the Department of a contractor's completion of a highway project acknowledging the contractor has performed all obligations of a highway contract.

(b) “Act” means the California Outdoor Advertising Act, Sections 5200 et seq., Business and Professions Code.

(c) “Adjacent To” means located within, either in whole or part, an area formed by measuring 660 feet laterally from the edge of the right-of-way of a landscaped freeway sections along a line perpendicular to the center line of the freeway.

(d) “Changeable” means any message change occurring more than once every twenty-four hours.

(e) “Chief Landscape Architect” means the employee of the Department of Transportation charged with statewide responsibility for supervising Highway Planting Projects.

(f) “Completed” means a contractor has performed all obligations under a highway project contract.

(g) “Continuous Planting” means State right of way contiguous to the traveled way which is planted with Ornamental Vegetation in accordance with standard landscaping practices. A physical break in the Planting of less than 200 feet for items such as a highway overcrossing or undercrossing, a stream, a canal, a stairway, a culvert, or a water system is not a gap and may not end a Continuous Planting.

(h) “Certificate of Sufficiency, formerly known as “Design Certification,” means the design engineer for a given project certifies to Right of Way and Asset Management that the right of way indicated on the project maps is the area necessary for a given project.

(i) “Deputy Director Project Development” means the Deputy Director of Project Development of the Department of the Department of Transportation.

(j) “Display means an advertising Display as defined in Section 5202.

(k) “Extension” means an Incidental increase in size of the advertising area which does not exceed the height, length, or total area allowed for in Section 5408(a) of the act.

(l) “Facing” means the portion of the Display that contains advertising copy.

(m) “Highway Planting Project” means an area of State highway right-of-way planted in conformance with plans developed or approved by the Department.

(n) “Imprint” means a marker (a stake or a flag) visible and legible from the highway that identifies the applicant by name or logo placed at the location of proposed display.

(o) “Incidental” means up to 33 percent of the total advertising area of the Display as authorized according to the Department's records and relates to the specific advertising copy. Measurement is made based on the height and the length but not the depth.

(p) “Landscape Architect” means a person employed by the Department who holds a certificate to practice Landscape Architecture in California under the authority of Division 3, Chapter 3.5, of the Business and Professions Code (5615 et seq.).

(q) “Light Box” or “sign cabinet” means a portable unit that is Incidental to the Display and its message does not flash, is not in motion, and does not change more than once every two minutes.

(r) “Ornamental Vegetation” means lawns, trees, shrubs, flowers, or other Plantings designed primarily to improve the aesthetic appearance of the highway. Inert material specifically placed to highlight the Ornamental Vegetation is considered part of the Ornamental Vegetation.

(s) “Office of Outdoor Advertising” means that unit of the Department which is delegated by the Director the responsibility of enforcing the Act and these regulations.

(t) “Penalty Fee” means a fee charged for late renewal of a license or a permit.

(u) “Permittee” means the applicant or a subsequent designee on record with the Department as owner of the outdoor advertising permit to place and maintain a specific Display.

(v) “Planting” means the placing or putting into the ground of any vegetation or seeds of vegetation; to set or sow with seeds or plants.

(w) “State Law” means only statutes enacted by the State Legislature, initiative process, or state constitutional provisions.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5200, 5202, 5216, 5250, 5440 and 5485, Business and Professions Code.

HISTORY

1. New section filed 6-25-76; effective thirtieth day thereafter (Register 76, No. 26).

2. Amendment of NOTE filed 7-22-77 as procedural and organizational; effective upon filing (Register 77, No. 30).

3. Renumbering of former section 2242 to section 2243 and new section 2242 filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

4. Amendment of subsection (h) filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2243. On-Premise Display.

Note • History

On-premise Display is defined under Sections 5272, 5405(b), 5405(c), and 5442 of the Act. A Display consisting of the following is outdoor advertising and not an on-premise Display:

(a) A Display which advertises directions to, or the sale or lease of the property on which it is located, but which also advertises any product, service, or business activity unrelated to the sale or lease of the property on which the Display is located.

(b) A Display which advertises activities conducted on the property on which the Display is located, but which also advertises other activities not conducted on the property on which the Display is located.

(c) A Display which advertises a brand name, trade name, product or service only incidental to the principal activity conducted on the property, or from which the business or property owner derives rental income.

(d) A Display placed at or near the end of a narrow strip of property, which is contiguous to the property on which the advertised activity is conducted.

(e) A Display which solely advertises the sale or lease of the property upon which it is placed, but which also identifies a corporation or business activity as the property owner more conspicuously than the for sale or lease message.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5272, 5273, 5274, 5405(b), 5405(c) and 5442, Business and Professions Code; and 23 CFR Section 750.709.

HISTORY

1. Renumbering and amendment of former section 2242 to new section 2243 filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

2. Amendment of first paragraph filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2244. On-Premise Display Within a Redevelopment Project.

Note • History

The applicant for an advertising display to be constructed pursuant to Sections 5273, 5273.5 or 5274 of the Act shall accurately complete and submit the Outdoor Advertising Structure Permit/Application, Form ODA-002 which is incorporated by reference, with a Redevelopment project boundaries map, application, permit fees and a Certification in writing by the Redevelopment Agency that the display is in the boundary area of a redevelopment agency project and will only advertise businesses and activities within the project where the advertising display is placed. The Redevelopment Agency shall provide the Department with a list of all qualifying businesses and activities in the specified project area. It shall be the obligation of the advertising display owner to demonstrate that any business or activity advertised meets the standards of the Act if it is not included on the list of qualifying businesses and activities provided by the Redevelopment Agency. After certifying the display meets the criteria of sections 5273, 52.73.5 or 5274, it shall be considered an on-premise display and no permit will issue. The applicant will pay a processing review fee equal to the current amount of a permit application fee.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5273 and 5273.5, Business and Professions Code.

HISTORY

1. New section filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

2. Amendment of section and Note filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2245. Extension of Time Limit for an On-Premise Display Within a Redevelopment Project.

Note • History

A Display is considered on-premise within a redevelopment project for a period of 10 years or the completion of the project, whichever first occurs, unless an arrangement is made between the redevelopment agency and the Department to extend the period for good cause.

(a) The Department provides written notice to the redevelopment agency governing the project and a copy to the Permittee if different, that the time limitation is expiring, after which Sections 5272 and 5405 of the Act apply.

(b) The redevelopment agency may request the Department to extend the time limit for a Display to be considered on-premise within a redevelopment project. The request must be in writing and made before the 10-year period expires or within 30 days of the Department's notice, whichever is later. The written request must also identify the good cause for extension and the estimated project completion date.

(c) The Department provides a written response within 30 days of receiving the request for extension from the redevelopment agency.

(d) If an extension is not arranged, the Display must meet the requirements of Sections 5272 and 5405 of the Act, or a new permit must be obtained. If the Display does not meet one of those requirements, the Display must be removed or is subject to the violation, penalty and removal provisions of the Act and these regulations.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5272, 5273, 5405 and 5485, Business and Professions Code.

HISTORY

1. New section filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

2. Amendment of subsection (d) and amendment of Note filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2246. On-Premise Display Within a Business Center.

Note • History

For the purpose of administering Section 5274 of the Act, a Display deemed an on-premise Display within a business center continues regardless of any of the following occurrences:

(a) The creation or construction, in or about the project, of a common parking area, driveway, thruway, alley, passway, public or private street, roadway, overpass, divider, connector, or easement intended for ingress or egress, regardless of where or when created or constructed, and whether or not created or constructed by the project developer or its successor, or by reason of government regulation or condition.

(b) The sale, transfer, conveyance of an individual lot, parcel, or parcels less than the whole, within the development project.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5274 and 5490(g), Business and Professions Code.

HISTORY

1. New section filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2250. Location.

History

Note: —§§ 2250 to 2258, inclusive, issued under authority contained in Section 5215, Business and Professions Code. Source of §§ 2250 to 2258, inclusive, is the Rules and Regulations made by the Director of the Department of Transportation, Outdoor Advertising Act.

HISTORY

1. Original publication of Chapter 6 on 3-22-45 (Title 4). Revision filed 9-18-47 (Register No. 9).

2. Repealer filed 8-21-74; effective thirtieth day thereafter (Register 74, No. 34).

3. Amendment of Note filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2251. Prohibited Words or Phrases.

Note • History

A Display containing any of the following copy is prohibited:

(a) The imitation, simulation or use of official U.S., U.S. Interstate, State or County highway signs or shields.

(b) Prohibited words: A word or combination of words that is construed as a command to traffic or as an official traffic sign is prohibited.

NOTE

Authority cited: Section 5250, Business and Professions Code. Reference: Section 5403(b), Business and Professions Code.

HISTORY

1. New section filed 2-21-63; effective thirtieth day thereafter (Register 63, No. 3).

2. Amendment filed 8-21-74; effective thirtieth day thereafter (Register 74, No. 34).

3. Editorial correction of Authority cite (Register 95, No. 8).

4. Amendment of section and Note filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2252. Advertising Displays Simulating Official Directional Signs.

Note • History

NOTE

Additional authority cited: Sections 5200 to 5325, Business and Professions Code.

HISTORY

1. New section filed 2-21-63; effective thirtieth day thereafter (Register 63, No. 3).

2. Repealer filed 8-21-74; effective thirtieth day thereafter (Register 74, No. 34).

§2255. Illuminated Displays (Other Than Displays Containing Reflecting Elements).

History

HISTORY

1. Repealer filed 8-21-74; effective thirtieth day thereafter (Register 74, No. 34).

§2260. Displays Containing Reflector Units or Reflecting Elements.

Note • History

NOTE

Additional authority cited: Sections 5200 to 5325, Business and Professions Code.

HISTORY

1. Amendment filed 2-21-63; effective thirtieth day thereafter (Register 63, No. 3).

2. Repealer filed 8-21-74; effective thirtieth day thereafter (Register 74, No. 34).

§2265. General.

Note • History

NOTE

Authority cited: Sections 14001, 14007, 14008 and 14010, Government Code, and Sections 20 and 50, Streets and Highways Code.

HISTORY

1. Amendment filed 8-7-73 as procedural and organizational; effective upon filing (Register 73, No. 32).

2. Repealer filed 8-21-74; effective thirtieth day thereafter (Register 74, No. 34).

§2266. Enforcement.

Note • History

NOTE

Authority cited: Sections 5250, 5251 and 5415, Business and Professions Code.

HISTORY

1. Amendment filed 8-7-73 as procedural and organizational; effective upon filing (Register 73, No. 32).

2. Repealer of NOTE and new NOTE filed 7-22-77 as procedural and organizational; effective upon filing (Register 77, No. 30).

3. Repealer filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2267. Prior Orders Repealed.

History

HISTORY

1. Repealer filed 8-21-74; effective thirtieth day thereafter (Register 74, No. 34).

§2270. Customary Maintenance.

Note • History

“Customary maintenance” means any activity performed on a Display for the purpose of actively maintaining the Display in its existing approved physical configuration and size dimensions at the specific location approved on the application for State Outdoor Advertising Permit, or at the specific location officially recorded in the records of the Department for a legally placed Display, for the duration of its normal life.

(a) Customary maintenance includes the following activities:

(1) Changing of the advertising message.

(2) Adding an Extension to an outside dimension of a Display as incident to the copy for a temporary period up to three years.

(3) The sale, lease, or transfer of the Display or its Permit.

(4) Adding a Light Box.

(b) Customary does not include the following (all of which acts are considered as a “placing” of a new advertising Display):

(1) Raising the height of the Display from ground level.

(2) Relocating all or a portion of a Display.

(3) Adding a back-up Facing to a single Facing Display.

(4) Increasing any dimension of a Facing except as permitted by Section 2270(a)(2).

(5) Turning the direction of a Facing.

(6) Adding illumination or a Changeable message, including, but not limited to, “tri-vision” signs, with the exception of a light box.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Section 5415, Business and Professions Code.

HISTORY

1. New section filed 6-25-76; effective thirtieth day thereafter (Register 76, No. 26).

2. Amendment of NOTE filed 7-22-77 as procedural and organizational; effective upon filing (Register 77, No. 30).

3. Amendment filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

4. Amendment of subsection (b)(6) filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2271. Destroyed Display.

Note • History

(a) A Display is destroyed and not eligible for customary maintenance when for 60 days after notice from the Department, it remains damaged and is not used for the purpose of outdoor advertising in the configuration (size, Facings, location, structure) approved by the Department.

(b) When the Department becomes aware of or identifies a damaged Display, the Department mails a written notice by certified mail to the Permittee beginning the 60-day time period for the Permittee to refurbish, replace, rebuild, or re-erect in kind or smaller the damaged Display and to place advertising copy. An “available for lease” or similar message that identifies the advertising availability of the Display on which the message is placed is advertising copy as long as the message contains a valid telephone number or address to contact for information, if the display has been otherwise refurbished, replaced, rebuilt, or re-erected in kind. Refurbishing, replacing, rebuilding or re-erecting shall be to the approved characteristics as recorded in the department's records for the Display. This notice is not necessary if the Permittee has completed repair back to the approved characteristics prior to notice being issued by the Department.

(c) The Permittee has until the end of the 60-day time period identified in the Department's notice to repair, replace, rebuild, or re-erect in kind the damaged nonconforming Display and place advertising copy. Upon receiving written notice from the Permittee showing good cause prior to the 60th or last day of the time period, the Department may extend the established time period not to exceed a total of six months. In such case, the Department shall issue a written response identifying by what date the work must be completed.

(d) When the Display is not restored and advertising is not placed before the last day of established time period, the Display's customary maintenance is ended and the Display is deemed destroyed. When the Display is deemed destroyed, the permit is revoked, subject to appeal and the remains of the Display are subject to removal under the violation process in Chapter 3.6, commencing with section 2440 in Title 4 of the California Code of Regulations. After the permit is revoked, a permit may not be issued for the location unless the Display conforms to all laws and regulations in effect at the time of application. The last Permittee is responsible for the removal of all remnants of the destroyed Display.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5225 and 5463, Business and Professions Code; and 23 CFR 750.707(d)(6)(i).

HISTORY

1. New section filed 6-25-76; effective thirtieth day thereafter (Register 76, No. 26).

2. Amendment of NOTE filed 7-22-77 as procedural and organizational; effective upon filing (Register 77, No. 30).

3. Repealer and new section filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

4. Amendment of section heading and subsections (a)-(b) and (d) filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2272. Abandoned Display.

Note • History

(a) A Display is abandoned when it ceases to exhibit current advertising copy or the Display is removed. An “available for lease” or similar message that identifies the advertising availability of the Display on which the message is placed is considered advertising copy as long as the message contains a valid telephone number or address to contact for information.

(b) The Department shall send a written notice, by certified mail, to the Permittee of a Display that has been removed requiring the Permittee to replace the removed Display within sixty (60) days of the date of the Department's notice.

(c) The Department shall send a written notice, by certified mail, to the Permittee of a Display which has ceased to exhibit current advertising copy requiring the Permittee to place advertising copy on the Display within sixty (60) days of the date of the Department's notice.

(d) If the Permittee fails to comply with sections (b) or (c) of this regulation the permit shall be revoked, subject to appeal, and no new permit may be issued for this location unless it conforms to the laws and regulations in effect at the time of application. The last Permittee is responsible for the removal of all remnants of the abandoned Display.

(e) Any permittee served with a notice of revocation may appeal this determination to the Director pursuant to Section 2241(b) of these Regulations.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5415 and 5463, Business and Professions Code; and 23 CFR 750.707(d)(6)(i).

HISTORY

1. New section filed 6-25-76; effective thirtieth day thereafter (Register 76, No. 26).

2. Amendment of NOTE filed 7-22-77 as procedural and organizational; effective upon filing (Register 77, No. 30).

3. Repealer and new section filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

4. Amendment of section heading and section filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

Chapter 2. Outdoor Advertising on Protected Bonus Segments of Interstate Highways

§2300. Scope.

Note • History

The standards for regulating outdoor advertising on protected bonus segments of an interstate highway are specified in Title 23, Code of Federal Regulations (CFR), Chapter 1, commencing with Part 750.101. and by this reference are incorporated in these regulations as if fully stated herein. Any future amendments to the above-referenced federal bonus segment regulations will be deemed part of these regulations on its effective date.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Section 5251, Business and Professions Code.

HISTORY

1. Repealer of subchapter 2 (Sections 2300-2307, inclusive) and new subchapter 2 (Sections 2300-2308, inclusive) filed 8-21-74; effective thirtieth day thereafter (Register 74, No. 34). For prior history, see Register 73, No. 32.

2. Repeater of NOTE and new NOTE filed 7-22-77 as procedural and organizational; effective upon filing (Register 77, No. 30).

3. Repealer and new section filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

4. Amendment filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2301. Definitions.

History

HISTORY

1. Repealer filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2302. Measurements of Distance.

History

HISTORY

1. Repealer filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2303. Signs Not Permitted in Protected Areas.

History

HISTORY

1. Repealer filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2304. Signs Permitted in Protected Areas.

History

HISTORY

1. Repealer filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2305. Class 3 and 4 Signs Within Informational Sites.

History

HISTORY

1. Repealer filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2306. Class 3 and 4 Signs Outside Informational Sites.

History

HISTORY

1. Repealer filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2307. General Provisions.

History

HISTORY

1. Repealer filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2308. Exclusions.

History

HISTORY

1. Repealer filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

Chapter 3. Measurements for Placing an Outdoor Advertising Display Along an Interstate or a Primary Highway

§2400. Scope.

Note • History

The provisions of this chapter apply to the measurements for placing a Display visible from an interstate or a primary highway.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5205 and 5408, Business and Professions Code; 23 USC Section 131(d); 23 CFR 750.102(c)(3); 23 CFR 750.706; and 23 CFR 750.707.

HISTORY

1. New Subchapter 3 (§§ 2400 through 2405) filed 3-26-71; effective thirtieth day thereafter (Register 71, No. 13).

2. Amendment filed 8-21-74; effective thirtieth day thereafter (Register 74, No. 34).

3. Amendment of chapter heading, section and Note filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2401. Measurement of Distances from a Commercial or Industrial Activity.

Note • History

(a) A Display is placed in a business area when the Display is on property zoned as commercial or industrial by the local zoning authority and is within 1,000 feet of a commercial or industrial activity.

(b) To determine if a Display is within 1,000 feet of a commercial or industrial activity, measurement is made “in each direction”. Measurement of distance to a Display is made along or parallel to the edge of the pavement of the main-traveled way from the outer edge of a commercial or industrial activity. The display also is within 1,000 feet when measuring the summation of the distance of “A” and “B”. Refer to Diagram 3-1, Figures 1 and 2.

DIAGRAM 3-1

(c) An “activity” is located within 1,000 feet of the right of way and includes all buildings, structures, and related commercial and industrial uses, such as a driveway or a parking lot.

(d) Examples of activities not considered commercial or industrial include, but are not limited to, the following:

(1) A Display.

(2) Agricultural, forestry, grazing, farming and related activities, including, but not limited to wayside fresh produce stand vending.

(3) A commercial or industrial activity that is unbuilt, transient, temporary, or open for less than 100 days a year.

(4) Railroad tracks.

(5) An activity conducted in a building principally used as a residence.

(6) Any activity that does not have state or local business licenses and/or permits which are required to legally engage in the qualifying activity.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5205, 5223 and 5408, Business and Professions Code; 23 CFR Section 750.708; and 23 USC Section 131.

HISTORY

1. Amendment filed 8-21-74; effective thirtieth day thereafter (Register 74, No. 34).

2. Repealer of former section 2401 and renumbering of former section 2402 to section 2401, including amendment of section heading, section and Note, filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

3. New subsection (d)(6) filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2402. Measuring Distances Between Advertising Displays.

Note • History

The minimum distance between Displays is measured along the nearest edge of the pavement between points directly opposite the portion of each Display closest to the right of way. Where the copy panel is parallel to the right of way, measurement shall be made from the edge of the structure closest to the nearest Display. For multiple Displays to be considered one Display for measurement purposes, the Displays are either: contiguous; physically connected by the same structure or cross-bracing; or located fifteen feet or less apart at the nearest point in the case of a V-type or a back-to-back Display.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Section 5408, Business and Professions Code; and 23 CFR Section 750.706.

HISTORY

1. Amendment of subsection (b) filed 8-21-74; effective thirtieth day thereafter (Register 74, No. 34).

2. Renumbering of former section 2402 to section 2401 and renumbering of former section 2403 to section 2402, including amendment of section heading, section and Note, filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2403. Measuring Distances from an Intersection or an Interchange.

Note • History

(a) An intersection is a system of two or more interconnecting highways without a grade separation providing for the exchange of traffic. Only a road, a street, or a highway which enters directly into the main-traveled way of an interstate or a primary highway is regarded as intersecting. An alley, undeveloped right of way other than an interstate or a primary highway, a private road, and a driveway is not regarded as an intersecting street, a road, or a highway. Refer to Diagram 3-2, Figure 1. for an example of measuring from an intersection.

DIAGRAM 3-2

(b) An interchange is a system of two or more interconnecting highways in combination with a grade separation providing for the exchange of traffic. A grade separation is where one highway is over or under another highway. The interchange includes a highway overcrossing, a highway undercrossing, a roadway, a taper, or a ramp, providing for the exchange of traffic. Refer to Diagram 3-3, Figures 1 through 6 for examples of measuring from an interchange.

(1) Where no exit or entrance roadway exists, measure the distance from the edge of the highway structure at grade separation to the point along the edge of the pavement opposite the closest edge of the Display. Refer to Diagram 3-3, Figures 1, 2, 3, and 5 for examples.

(2) Where there is an off ramp from or an on ramp to the main-traveled way, measure along the edge of the pavement from the beginning or end of a pavement taper to the point where the portion of the Display is closest to a pavement taper. Refer to Diagram 3-4, Figure 1 and Diagram 3-3, Figures 1 through 6 for examples.

(d) An interchange or an intersection distance limitation is measured separately for each direction of travel. A Display application is approved for a Facing in a conforming location where an interchange or intersection distance prohibition applies to the opposite side of the freeway if the copy is not visible to traffic proceeding in another direction within the interchange or intersection. Refer to Diagram 3-3, Figures 2, 3, 5, 6 and Diagram 3-4, Figure 1 for examples.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Section 5408, Business and Professions Code.

HISTORY

1. Amendment filed 6-25-76; effective thirtieth day thereafter (Register 76, No. 26).

2. Renumbering of former section 2403 to section 2402 and renumbering of former section 2404 to section 2403, including amendment of section heading, section and Note and new diagrams 3-3 and 3-4, filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

DIAGRAM 3-3

DIAGRAM 3-4

§2404. Measuring Distances from the Edge of the Right of Way.

Note • History

The highway right of way includes all property acquired for the freeway including, but not limited to, the main traveled way, an interchange, a ramp, and interconnecting roadway. The 660' -foot control corridor is determined by measuring 660' feet from the edge of the right of way along a line perpendicular to the center line of the main-traveled way.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Section 5408, Business and Professions Code.

HISTORY

1. Renumbering of former section 2404 to section 2403 and renumbering of former section 2405 to section 2404, including amendment of section and Note, filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2405. Measuring Distances from the Edge of the Right of Way.

Note • History

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Section 5408, Business and Professions Code.

HISTORY

1. New section filed 6-25-76; effective thirtieth day thereafter (Register 76, No. 26).

2. Amendment of NOTE filed 7-22-77 as procedural and organizational; effective upon filing (Register 77, No. 30).

3. Renumbering of former section 2405 to section 2404 filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

Chapter 3.5. Application, Permit, and License Administration for Outdoor Advertising

§2420. Scope.

Note • History

The purpose of this Chapter is to define the process for applying, qualifying, and retaining an outdoor advertising permit and license. No Display can be placed legally until after a permit and any required license are issued or renewed. The Permittee is presumed to own the Display unless the Department is notified otherwise.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5301 and 5351, Business and Professions Code.

HISTORY

1. New chapter 3.5 (sections 2420-2426) and section filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2421. Preliminary Determination Application Process.

Note • History

An application for a preliminary determination is submitted to the Department, with the applicable fee, when an applicant wants advance determination whether a location qualifies for a permit or what additional qualifications are required to obtain a permit. The permit application process is separate from this process. A preliminary determination application does not hold a location or restrict another person from obtaining a permit within spacing of the location for which a preliminary determination is made.

(a) The applicant shall, in accordance with the Act:

(1) Accurately complete and sign the Outdoor Advertising Structure Permit/Application, Form ODA-0002 (Rev. 11/98).

(2) Submit the completed application and fees to the Department at the address specified on the application.

(3) Place an Imprint at the proposed Display location.

(b) The Department shall, in accordance with the Act:

(1) Pre-review the application for completeness.

(2) Review the application on the basis of its eligibility as of the date processed

(3) Issue dated response of preliminary determination to the applicant.

(c) The applicant may submit an application and fees for a permit for the same location within one year of Department's preliminary determination. If this occurs:

(1) The applicant will be credited with a partial fee as provided by Section 5486 of the Act.

(2) The permit application will be reviewed pursuant to the Act and regulations in effect on the date the permit application is received.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5252 and 5486, Business and Professions Code.

HISTORY

1. New section filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2422. Permit Application Process.

Note • History

(a) The applicant shall, in accordance with the Act:

(1) Accurately complete and sign the Outdoor Advertising Structure Permit/Application, Form ODA-0002 (Rev. 11/98).

(2) Submit the completed application and fees to the Department at the address specified on the application.

(3) Place and maintain an Imprint at the proposed Display location.

(4) Provide written evidence that the owner or other person in control or possession of the property and the city and county with land use jurisdiction over the property have consented to the placing of the advertising display. Evidence of property owner consent shall be a form of a copy of a lease, license or other land use agreement or another form of written acknowledgement from the owner that such consent has been given. The economic terms of any such agreement need not be included. The consent of the city or county shall be demonstrated by producing a copy of the applicable building or sign permit, or other official act of the city and county used in that jurisdiction to authorize construction, or to demonstrate that the city or county requires no specific consent to construct an advertising display.

(5) Correct any application deficiencies, pursuant to notification as required by (b)(3) within 30 days. The applicant may request an extension of the 30-day time period. The request must be in writing.

(b) The Department shall, in accordance with the Act:

(1) Date and time stamp the application on the date and in the order received by the Office of Outdoor Advertising.

(2) Review the application on the basis of its qualifications as of the date received (For example, the required business activity and zoning must exist on the date the application is received). The application is processed in accordance with the following subsections (A) through (G).

(A) First priority is given to renewing a permit for a legal Display (constructed or not constructed).

(B) An application for a legally placed Display that did not previously require a permit is processed before an application for a new Display.

(D) An application for placing a new Display along an existing highway where the copy will be visible from a new alignment of an interstate or a primary highway and the location is nonconforming to the new alignment is not accepted after Certificate of Sufficiency is executed.

(E) An application for placing a new Display along a new alignment of an interstate or primary highway is accepted on or after the date the highway project is Accepted.

(F) An application to relocate an existing permitted Display to accommodate widening or extensive modification of an interstate or a primary highway is processed before an application to place a new Display.

(G) An application for a new Display received after a Certificate of Sufficiency is executed for widening or extensive modification of an interstate or a primary highway is not processed until the orderly relocation of an existing Display is completed, as coordinated by the Department. The Department issues a notice to the applicant when processing is delayed for this reason. The processing time begins after the orderly relocation of an existing Display is completed.

(3) Provide a written 30-day deficiency notice to the applicant when it is determined there is a deficiency, such as the Imprint is missing or information on the application is missing, is in error, or conflicts with findings. Failure to correct the deficiency within the time allowed results in denial of the application.

(4) Provide a final decision issuing a legal permit or denying permit issuance identifying the noncompliance with law. The permit or denial notice is issued within 60 days from the date the application is received, excluding the time periods for which notices were issued under subsection (b)(3).

(5) Reserve a location for ninety (90) days in accordance with Section 5354(b) and (c) of the act, if a written request from the city or county with land use jurisdiction over the proposed location is received in lieu of a building or sign permit, properly acknowledged by the City Council or Board of Supervisors or their official designee. The description of the proposed location in the city or county's notice shall be consistent with the location requested on the permit application. If a city or county requests an additional thirty (30) day hold on a location in accordance with section 5354(c), in addition to the requirements for an initial 90 day hold specified above, the city and county must detail the extenuating circumstances meriting an additional 30 days. Examples of such extenuating circumstances include, but are not limited to, an inability to properly notice a necessary hearing within the initial 90 days, the unavailability of a necessary witness or property owner, the discovery of newly found evidence or facts, or the late objection of an affected property owner.

(c) An Application whose permit application is denied may appeal that determination in accordance with the provisions of Section 2241(b) of these Regulations. Until such appeal is finally determined, no permit shall be issued to any other applicant that would affect the legality of a denied permit application until completion of the appeal.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5252 and 5350-5358, Business and Professions Code; and Section 15376, Government Code.

HISTORY

1. New section filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

2. New subsection (a)(4), subsection renumbering, amendment of subsections (b)(2)(D) and (b)(2)(G) and new subsections (b)(5)-(c) filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2422.1. Permit Fee.

Note • History

(a) The annual fee for each advertising display shall be one hundred dollars ($100.00). The fee shall increase in the 2007-2008 fiscal year and in the 2012-2013 fiscal year by an amount equal to the increase in the California Consumer Price Index.

(b) The 2006 annual permit fee shall be due by December 31, 2005 or thirty days after the effective date of this section, whichever is later.

(c) Permit holders that paid for a renewal term of five years pursuant to Business and Professions Code, Section 5360 at ninety-two dollars ($92) per year will not be subject to paying this increase until December 31, 2008.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Section 5485(a)(2), Business and Professions Code.

HISTORY

1. New section filed 11-16-2006; operative 12-16-2006 (Register 2006, No. 46).

§2423. Permit for Off-Premise Message Center Display.

Note • History

(a) An application, a permit, and fees are required to place an off-premise message center Display visible to a highway in the areas described in Section 2240(b). This includes converting a permitted Display for use as a message center or converting a permitted message center Display from advertising on-premise activities to off-premise activities.

(b) To qualify for a permit, an off-premise message center Display must meet all the requirements of the Act and these regulations for advertising off-premise activities as well as specific requirements in Section 5405 of the Act related to message center Displays.

(c) The Permittee is responsible for maintaining an off-premise message center Display in compliance with the Act and these regulations, or the Display is subject to the violation process in Chapter 3.6 commencing with section 2240 in Title 4 of the California Code of Regulations.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Section 5405(d), Business and Professions Code.

HISTORY

1. New section filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2424. Permit Renewal Process.

Note • History

(a) A permit must be renewed pursuant to Section 5360 of the Act. The permit renewal process consists of the following:

(1) The Department mails a renewal application for a term of five years to the Permittee at the Permittee's last address on the Department's record at least 30 days before the expiration date.

(2) The Permittee returns the completed Form ODA-0013(A), Application For Outdoor Advertising Permit Renewal 1999-2003 (Rev. 09/99) which is incorporated by reference, and fee to the Department postmarked on or before December 31 of the year in which the permit expires to avoid a penalty. The Permittee would be scheduled to pay as follows:

(A) A Permittee holding 10 or more permits may pay one-fifth of the fee (pro-rata fee) to the Department on an annual basis postmarked each year on or before December 31 to avoid a penalty fee. A Permittee shall be responsible for paying the then current annual fee at the time of each pro-rata payment.

(B) A Permittee holding less than 10 permits must pay the total fee every five years on or before December 31 of the year in which payment is due to avoid a penalty fee. A Permittee prepaying for five years may be assessed any increase in the annual fees, due by December 31 of the year which payment is due.

(3) A permit is expired and is subject to a mandatory penalty of $100.00 if the renewal application and fee are received by the Department postmarked after December 31 of the year in which the permit expires or the pro rata payment is due.

(4) The Department shall issue the permit after receiving the completed renewal application, permit fee or pro-rata fee, and after determining the Display is not in violation of any provision of the Act or these regulations and an unexpired building permit has been issued, if the display has not been constructed. Permits issued prior to December 31, 2002, for Displays that have not been constructed or have not obtained an unexpired building permit, will not be revoked until June 30, 2005, if the applicable city or county confirms that a building permit is being actively considered for the Display. The Department will also review its records to determine there is no active violation notice on record for the Display as of December 31 of the year in which the permit expires. The permit entitles the permittee to place the permitted display for the term of the permit, provided all pro rata fees are timely received.

(5) If the Department fails to issue a permit according to this Chapter and the Act within one year after receiving a complete and valid renewal application and required fees, the permit is considered renewed for the year of the renewal application. An applicant shall provide a certified mail receipt or signed acknowledgment of receipt by a Department representative to invoke this provision. This section does not apply to a permit under review pursuant to Chapter 3.6 commencing with section 2424(C) in Title 4 of the California Code of Regulations or a legal action.

(6) The following occurs when a permit is not renewed in accordance with (a)(1) to (a)(4) of this section:

(A) The Department provides written notice by certified mail to the Permittee at the address on record at least 30 days before the cancellation date indicating the permit is expired, is not in compliance with the Act, or the permit fee or the pro-rata fee is not received. However, the permit may be renewed with a penalty fee.

(B) The Permittee has until December 31 of the first year following the expiration of the permit to return the renewal application, permit fee or pro-rata fee, and penalty fee or notify the Department to cancel the permit because the Display has been removed.

(C) The Department issues the permit after receiving the completed renewal application, permit fee or pro-rata fee, and after determining the Display is not in violation of any provision of the Act or these regulations. The Department will also review its records to determine if there is no active violation notice on record for the Display as of December 31 of the year in which the permit expires.

(D) When the Permittee fails to comply with subsection (6)(B), the permit is not renewable and the Director shall notify the permittee by certified mail that the permit will be revoked in thirty (30) days. Any permittee served with a notice of revocation may appeal this decision in accordance with the provisions of section 2241(b) of these Regulations.

(7) A permit must be renewed by the end of the first year after expiration or lose eligibility for renewal.

(8) The renewal application for a valid, unrevoked, and unexpired permit shall be mailed when issuance of the permit is pending resolution of a violation notice or a legal action. The Permittee shall continue to comply with the renewal requirements. The permit is issued only when a final decision is made by the Director or by a court of law that does not uphold the violation. Fees will be deposited into the State Highway Account and when appropriate, refunded upon the final decision.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5358, 5360, 5463 and 5485, Business and Professions Code.

HISTORY

1. New section filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

2. Amendment of subsections (a)(2)(A)-(B), (a)(3)-(4), (a)(6)(D) and (a)(8) and amendment of Note filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

3. Change without regulatory effect amending subsection (a)(4) filed 2-28-2005 pursuant to section 100, title 1, California Code of Regulations (Register 2005, No. 9).

§2425. Permit Transfer Process.

Note • History

(a) The Department will change its records to show a new Permittee for a valid, renewed, and unrevoked permit when one of the following occurs:

(1) The Permittee provides a written transfer notice to the Department that identifies the permit number and the new Permittee's name and business address.

(2) The Permittee returns the renewal application during the renewal period identifying the new Permittee's name and business address.

(3) The Department receives a bill of sale signed by the Permittee that transfers ownership of the permit.

(4) The Department receives documents proving the Permittee is deceased and the Display is transferred. The new Permittee shall provide the information required in subsection (a).

(5) A court order requires or authorizes the transfer.

(b) Any party whose request to have a permit transferred is denied, and any former permit holder whose permit is transferred may appeal the decision in accord with the provisions of Section 2241(b) of these regulations.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Section 5350, Business and Professions Code; and 23 CFR Section 750.707(d)(3).

HISTORY

1. New section filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

2. Redesignation of former first paragraph and subsections (a)-(e) as new subsections (a)-(a)(5) and new subsection (b) filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2426. Business Address of Permittee and Licensee.

Note • History

(a) The Permittee shall maintain on file with the Department one mailing address. If the mailing address contains a P.O. Box, a street address of the Permittee's principal place of business shall also be provided.

(b) The licensee shall maintain on file with the Department one person's name as defined in Section 5219 of the Act and one mailing address. If the mailing address contains a P.O. Box, a street address of the licensee's principal place of business for outdoor advertising activities shall also be provided.

(c) When there is a change in the name, the mailing address, or the street address of the principal place of business, the Permittee or licensee shall notify the Department, in writing, not later than 30 days following the change.

(d) If the Permittee or licensee fails to notify the Department of a change in address, the mailing of any Departmental notice is effective when mailed to the last address on file. When the notice is to revoke a permit or a license, that notice is maintained on record with the Department for one year.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Section 5350, Business and Professions Code.

HISTORY

1. New section filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

2. Amendment of subsection (d) filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2427. Permits for Relocated Displays.

Note • History

No person shall place any advertising display pursuant to a Relocation Agreement without having first secured a Permit. Permits for relocated displays will be issued if the following criteria are met:

(a) the relocation agreement is authorized by law, such as sections 5412, 5443, or 5443.5 of the Act;

(b) the new display complies with sections 5354, 5400-5405, and 5408 of the Act;

(c) the new display will not cause a reduction in the federal-aid highway funds as provided in Section 131 of Title 23 of the United States Code; and

(d) the Department does not assume any potential additional liability if the new display is acquired in the future for a public purpose.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5354, 5400-5405, 5408, 5412, 5443 and 5443.6, Business and Professions Code.

HISTORY

1. New section filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

Chapter 3.6. Violations

§2440. Scope.

Note • History

The purpose of this Chapter is to define the process the Department follows when there is a notice of violation of the Act or these regulations.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5460-5465, Business and Professions Code; and 23 U.S.C. 131(r)(1) and (2).

HISTORY

1. New chapter 3.6 (sections 2440-2443) and section filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2441. Violations for Permanent Displays.

Note • History

(a) When the Department determines a permanently placed Display violates the Act or these regulations, the owner of that Display is given a written violation notice by certified mail that the Display is in violation and subject to removal, and the owner is liable for all statutory penalties and, if the Display is removed by the Department, actual costs of removal.

(b) The violation notice states the violation, the owner's responsibility to respond, and the owner's opportunity to request a review by the Director pursuant to the provisions section 2241(b) of these Regulations.

(c) If the display has been issued a permit, the violation notice is issued to the Permittee unless the Department has been notified in writing that another party with a property interest in the Display also has requested notice of any action concerning the Display. When a Permittee differs from the name on the Display, it is assumed the Permittee is the Display owner and the entity named on the Display is only maintaining it, unless the Department has been notified otherwise. When the owner of the Display is not plainly displayed thereon and no permit exists, the violation notice shall be issued to either the property owner at the address on record with the county assessor's office or the advertiser identified on the Display.

(d) A new violation notice is not issued if the Display is sold, transferred, or the copy is changed. When purchasing a Display, the new Display owner is responsible for determining the legal status of the Display by contacting the Office of Outdoor Advertising.

(e) The owner has 30 days from the date of the certified mailing of the violation notice to respond as follows;

(1) Correct the violation, or

(2) Remove the Display, or

(3) Appeal to the Director in writing pursuant to the provisions of section 2241(b) of these Regulations. This request shall contain a statement of reasons supporting the Appeal pursuant to Section 2442 of these regulations.

(f) The owner's failure to respond to the violation notice within 30 days of the date of its certified mailing results in a waiver of the right to Appeal the following:

(1) the validity of the violation(s) stated in the violation notice.

(2) removal of the Display by the Department without further notice at the owner's expense.

(3) the period of time allowed for correction of any violation.

(4) the amount of any fine, penalty, or assessed removal costs.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5400, 5463, 5482 and 5485, Business and Professions Code; and 23 U.S.C. Section 131(r)(1) and (2).

HISTORY

1. New section filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

2. Amendment of section and Note filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2442. Review of Violation Notice.

Note • History

Any person or entity with a notice of violation pursuant to the Act or these regulations may appeal to the Director in writing pursuant to Section 2241. The cited person or entity may contest any or all of the following aspects of the notice of violation:

(a) The occurrence of a violation of the Act or these regulation

(b) The amount of any fine, penalty, or assessed removal costs.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5463 and 5485, Business and Professions Code.

HISTORY

1. New section filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

2. Repealer and new section filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2443. Causes for Revocation of an Outdoor Advertising Permit.

Note • History

(a) Causes for Revocation of an Outdoor Advertising Permit pursuant to Section 5463 of the Act and Chapter 3.6 commencing with section 2441 of these regulations exists when any one of the following occurs:

(1) The Permittee fails to renew a permit in accordance with the Act and these regulations.

(2) The Permittee fails to maintain an outdoor advertising license when required.

(3) The permitted Display is not in place, no physical construction has begun, and placement of the Display would result in nonconformance. Physical construction of a Display begins when the Permittee has applied for a local building permit before the Department issues notice that the permitted location has become nonconforming, the appropriate city or county has sent the Department the notice provided for in section 5354(b) of the Act and the Display is constructed before the local building permit expires, including any extensions to the building permit not to exceed six months.

(4) The property owner's consent is canceled.

(5) The Display is determined to be abandoned or destroyed.

(6) A violation of the Act or these regulations is not corrected within the time provided in the violation notice (including any modification of the time allowed after Appeal) or by court order.

(b) Any permittee served with a notice of revocation may appeal this decision pursuant to the provisions of section 2241(b) of these Regulations, unless the permittee has previously appealed a violation notice based on the same facts.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5301, 5302, 5354, 5360, 5440, 5463, 5484 and 5485, Business and Professions Code; 23 U.S.C. Section 131(r)(1) and (2); and 23 C.F.R. 750.707.

HISTORY

1. New section filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

2. Redesignation of former first paragraph and subsections (a)-(f) as new subsections (a)-(a)(6), new subsection (f) and amendment of newly designated subsections (a)(3) and (a)(6) filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2444. Causes for Revocation of an Outdoor Advertising License.

Note • History

(a) Causes for revocation of an Outdoor Advertising License pursuant to Section 5463 of the Act exists when one of the following occurs:

(1) Licensee fails to pay his annual License Fee. Before a License is revoked pursuant to this section, a Licensee shall be given written notice by certified mail that the license fees have not been received, and if payment is received within thirty days of the date of the notice the license will be renewed.

(2) The Licensee fails to timely pay fines, penalties or assessed removal costs. Before a License is revoked pursuant to this section, a License shall be given written notice by certified mail that the payment for the fine, penalty or assessed removal costs have not been received, and if payment is received within thirty days of the date of notice, the license will not be revoked.

(3) A Licensee who has received three notices of violations for placing a Display without first obtaining a permit pursuant to Section 5463 of the Act within any twenty-four month period which have either not been appealed or have been upheld by the Director pursuant to Section 2242 and not been corrected, unless the matter is still pending in State court.

(4) A Licensee who has damaged two or more trees or shrubs in violation of Streets and Highways Section 730.5 in any two-year period and not made restitution provided for by Streets and Highways Code section 730.5.

(b) Upon the revocation of an Outdoor Advertising License, all permits issued to that Licensee shall be revoked after thirty (30) days' written notice unless they are transferred within one year of the date of license revocation to another Licensee or person not affiliated in any manner with the Licensee whose License was cancelled. After a License has been revoked, that Licensee may apply for a new License after two years if all previous violations have been corrected.

(c) Any Licensee served with a notice or revocation may appeal this determination to the Director pursuant to the provisions of section 2241(b) of these regulations.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5301 and 5463, Business and Professions Code.

HISTORY

1. New section filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

Chapter 4. Directional and Other Official Signs and Notices

§2450. Scope.

Note • History

(a) Except as noted below, the standards for regulating directional and other official signs and notices are specified in Title 23, Code of Federal Regulations (CFR), sections 750.151, 750.152, 750.153, 750.154, 750.155, National Standards for Directional and Official Signs, in effect April 1, 1998 and by this reference are incorporated in these regulations.

(b) The provisions of this chapter are in addition to the standards referred to in subsection (a) and apply to directional and other official signs and notices placed pursuant to the provisions of Section 5405 of the Business and Professions Code and located within 660 feet of the nearest edge of the right of way of an Interstate or a Federal-aid primary highway, and visible from the main-traveled way of the highway.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Section 5405(a), Business and Professions Code; and 23 CFR Sections 750.151, 750.152, 750.153, 750.154 and 750.155.

HISTORY

1. New Subchapter 4 (§§ 2450 through 2456) filed 3-26-71; effective thirtieth day thereafter (Register 71, No. 13).

2. Amendment of section and Note filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2451. Placing Directional and Other Official Signs and Notices.

Note • History

(a) An official sign and notice, a public utility sign, a service club notice or a religious notice may be placed next to an Interstate or a primary highway.

(b) A public or private directional sign, that is in compliance with the provisions of Title 23, CFR, Chapter 1, Part 750.154, in effect April 1, 1995, may be placed next to interstate or a primary highways except that a sign may not be placed in the following locations:

(1) Adjacent To a landscaped freeway when the sign is designed to be viewed primarily by a person traveling on an Interstate or a primary highway.

(2) Within 2,000 feet of a rest area, a parkland or an officially designated scenic highway or byway area.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5203, 5221, 5440 and 5440.1, Business and Professions Code.

HISTORY

1. Repealer of former section 2451 and renumbering of former section 2452 to section 2451, including amendment of section and new Note, filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2452. Public or Private Directional Sign; Selection Methods and Qualifying Criteria.

Note • History

(a) Each location for a public or private directional sign must be approved by the Department before placing the directional sign. The Display application and the permit procedures of the Act are used to obtain approval, except application and permit fees are not required for a public or private directional sign expressly excluded from the definition of “Advertising Structure” in Section 5203 or “Sign” in Section 5221 of the Act.

(b) When processing an application to place a public or private directional sign, the following priorities are applied.

(1) First priority is given to a public directional sign.

(2) Second priority is given to a private directional sign. An application for a private directional sign is not processed unless it is accompanied by written confirmation that the activity to be advertised is nationally or regionally known and is of outstanding interest to the traveling public. The confirmation is a letter, resolution, or other official document made by a local public officer, public agency, county board of supervisors, or city council who exercises governmental authority over the area and the sign.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5203 and 5221, Business and Professions Code.

HISTORY

1. Renumbering of former section 2452 to section 2451 and renumbering of former section 2455 to section 2452, including amendment of section heading, section and Note, filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2453. Existing Displays.

Note • History

A public directional sign and other official sign or notice lawfully in existence on the effective date of these regulations, and which is permitted by city or county ordinance, may be maintained.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Section 5405(a), Business and Professions Code.

HISTORY

1. Repealer of former section 2453 and renumbering of former section 2456 to section 2453, including amendment of section and new Note, filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2454. Directional Signs: Spacing, Lighting and Message Content.

History

HISTORY

1. Repealer filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2455. Selection Methods and Criteria.

Note • History

NOTE

Authority cited: Sections 14001, 14007, 14008, 14010, Government Code, and Sections 20 and 50, Streets and Highways Code.

HISTORY

1. Amendment of subsections (a) and (b)(3) filed 8-7-73 as procedural and organizational; effective upon filing (Register 73, No. 32).

2. Renumbering of former section 2455 to section 2452 filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2456. Existing Displays.

History

HISTORY

1. Renumbering of former section 2456 to section 2453 filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

Chapter 5. Outdoor Advertising Displays Adjacent to Landscaped Freeways

§2500. Scope.

Note • History

The provisions of this chapter apply only to the placing and maintenance of a Displays Adjacent To a landscaped freeway.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5200, 5440 and 5442, Business and Professions Code.

HISTORY

1. New Chapter 5 (Sections 2500-2519) filed 8-29-78; effective thirtieth day thereafter (Register 78, No. 35).

2. Amendment of section and Note filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2501. Severability.

Note • History

If any provision, clause, or application of this chapter to a person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5440 and 5442, Business and Professions Code.

HISTORY

1. Amendment of section and Note filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2502. Definitions.

History

HISTORY

1. Repealer filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2503. Construction of Terms.

History

HISTORY

1. Repealer filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2504. Classifications Delegation.

Note • History

The Director delegates to the Chief Landscape Architect the responsibility to classify a landscaped freeway. If the delegation is changed, all references to “Chief Landscape Architect” means whomever is delegated the responsibility of classifying a freeway as a landscaped freeway.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Section 5250, Business and Professions Code.

HISTORY

1. Repealer of former section 2504 and renumbering of former section 2507 to section 2504, including amendment of section and new Note, filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2505. Change in Freeway Character--Preliminary Landscape Determination.

Note • History

(a) Before the award of a Highway Planting Project, the Chief Landscape Architect makes a preliminary landscape determination, based on the project design plans, specifications, and/or concept plans of whether the project will change the character of the freeway to a landscaped freeway. If the preliminary landscape determination is that the project will meet the criteria for being a landscaped freeway and the Highway Planting Project adjacent to existing freeway segments will begin within 180 days or that the Highway Planting Project adjacent to a new segment of freeway will begin within two fiscal years, the Chief Landscape Architect issues a notice of preliminary landscape determination to the Office of Outdoor Advertising and posts that determination on the Landscape Architect's web page.

(b) The Office of Outdoor Advertising shall not issue a permit for a Display Adjacent To a section of freeway that is designed primarily to be viewed by a person traveling on the landscaped section after a preliminary landscaped determination is made. A Display permit which is issued, but where no physical construction of the Display has begun or exists, confers no vested rights and is canceled no earlier than 180 days after and the Permittee is notified of the action in writing by the Office of Outdoor Advertising. Physical construction of a Display begins when the Permittee has applied for a local building permit before the Department issues notice that the permitted location has become nonconforming, and the Display is constructed before the local building permit expires or 180 days whichever occurs first. Only customary maintenance, as described in section 2270 of this chapter may be performed on existing outdoor advertising displays adjacent to a landscaped freeway section.

(c) If the Highway Planting Project does not begin within 180 days after the date the preliminary landscape determination along an existing segment of freeway is made or within two fiscal years along a new segment of freeway, the determination lapses. The Chief Landscape Architect shall post a notice within 30 days of the lapsed preliminary landscape determination on the Landscape Architect's web page and send notice to the Office of Outdoor Advertising.

(d) After the Office Outdoor Advertising is notified of the preliminary landscape determination lapse, a permit for a Display shall be issued if the Display meets the provisions of the Act and these regulations.

(e) A preliminary landscape determination lapse may not prevent a future determination that the same or similar proposed Planting meets the landscaped criteria.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5216 and 5440, Business and Professions Code.

HISTORY

1. Repealer of former section 2505 and renumbering of former section 2509 to section 2505, including amendment of section heading and section and new Note, filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

2. Amendment of subsections (a) and (c) and amendment of Note filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2506. Classification Occurs When Planting Accepted.

Note • History

A freeway is classified as a landscaped freeway when the Highway Planting Project is Completed and Accepted.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5216 and 5440, Business and Professions Code.

HISTORY

1. Repealer of former section 2506 and renumbering of former section 2510 to section 2506, including amendment of section and new Note, filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2507. Landscaped Freeway--Minimum Length.

Note • History

(a) To be classified as a landscaped freeway, a Continuous Planting segment measured parallel from the freeway centerline is at least 1,000 feet in length. For purposes of these regulations, the 1,000-foot length is calculated by either of the following:

(1) 1,000 linear feet of Continuous Planting on one side or the median of the freeway, or

(2) 1,000 linear feet of landscaped area which is the combination of Continuous Planting on both sides and/or the median of the freeway. Continuous Planting can either overlap or have a common point of beginning and ending, as measured along the freeway centerline.

(b) If a Continuous Planting segment as described above is followed by a gap of 200 feet or less and adjoins Continuous Planting which is at least 500 feet in length, the designation “landscaped freeway” applies to the total length of the Continuous Planting segment, the “gap”, and the Continuous Planting.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5216 and 5440, Business and Professions Code.

HISTORY

1. Renumbering of former section 2507 to section 2504 and renumbering of former section 2511 to section 2507, including amendment of section and Note, filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

2. Amendment of subsections (a)(1)-(2) and repealer of subsection (c) filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2508. Change in Freeway Character--Criteria and Inspection.

Note • History

(a) A freeway may not be classified as a landscaped freeway until a licensed Landscape Architect employed by the Department and based on personal inspection of the Highway Planting Project, certifies in writing that the character of the freeway is changed to a landscaped freeway. The freeway character is changed to a landscaped freeway when Ornamental Vegetation is in place, is at least 1,000 feet in length, is alive, exhibits healthy growth characteristics, and the Highway Planting Project is Accepted by the Department.

(b) The Planting will require reasonable maintenance. That means a plant which, when planted, requires maintenance on a regular basis to maintain it in a healthy and attractive condition. The fact that as a plant matures it may require less maintenance than when first planted is not interpreted to mean it does not require reasonable maintenance. As used herein, maintenance means any of the following: watering, fertilizing, spraying, cultivating, pruning, cutting, mowing, replacing, weed control, washing, pest control, disease control, litter removal, or other similar plant care procedures.

(c) Functional planting does not change the character of the freeway to a landscaped freeway. Functional planting means vegetation primarily for soil erosion control, traffic safety, reduction of fire hazards, and traffic noise abatement or other non-ornamental purposes. A single row of plantings in the median shall be considered a functional planting.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5216 and 5440, Business and Professions Code.

HISTORY

1. Repealer of former section 2508 and renumbering of former section 2512 to section 2508, including amendment of section and new Note, filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

2. Amendment of subsection (c) and amendment of Note filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2509. Landscaped Freeway Classification.

Note • History

The Chief Landscape Architect classifies the freeway as a landscaped freeway when a review of the Landscape Architect's certification and the Planting plans and specifications indicate the highway Planting meets the criteria of the Act and this Chapter.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Section 5216, Business and Professions Code.

HISTORY

1. Renumbering of former section 2509 to section 2505 and renumbering of former section 2513 to section 2509, including amendment of section and new Note, filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2510. Records.

Note • History

The Chief Landscape Architect shall maintain, as a public record, a register of the county, route and post mile or kilometer post of the freeways or sections of freeways classified as a landscaped freeway by the Department. Identification markers may be placed and maintained by the Department at the boundaries of a landscaped freeway section.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Section 5216, Business and Professions Code.

HISTORY

1. Renumbering of former section 2510 to section 2506 and renumbering of former section 2514 to section 2510, including amendment of section and new Note, filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2511. Retention of Classification.

Note • History

A landscaped freeway retains its classification:

(a) When a construction project results in the temporary removal of the plant material. If the plant material is not replaced within six months after the Department Accepts the construction project, the Chief Landscape Architect shall review the classification upon the receipt of a written request. No review shall be made until six months after the Department accepts the construction contract. If the Chief Landscape Architect determines that it is not reasonably certain that new Plantings, sufficient to constitute a landscaped freeway, will be placed within two fiscal years of the date of the request for review, the section is declassified, or,

(b) When a catastrophic event, such as a disease, pests, freeze or fire kills over 50% of the plantings in a segment, or over 3000 trees or shrubs of the same variety within a three year period throughout the state. In the case of such a catastrophic event, the Chief Landscape Architect shall review the classification upon receipt of a written request. The section will be declassified unless a concept plan to replace the plantings is adopted within two years after the conclusion of the catastrophic event or if the Chief Landscape Architect determines that it is not reasonably certain that new Plantings, sufficient to constitute a landscaped freeway, will be placed within six fiscal years of the date of the request for review.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Section 5216, Business and Professions Code.

HISTORY

1. New final paragraph and new Note filed 7-25-96 as an emergency; operative 7-25-96 (Register 96, No. 30). A Certificate of Compliance must be transmitted to OAL by 11-22-96 or emergency language will be repealed by operation of law on the following day.

2. Reinstatement of section as it existed prior to 7-25-96 emergency amendment by operation of Government Code section 11346.1(f) (Register 97, No. 37).

3. New final paragraph and new Note filed 9-11-97; operative 10-11-97 (Register 97, No. 37).

4. Renumbering of former section 2511 to section 2507 and renumbering of former section 2515 to section 2511, including amendment of section and new Note, filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

5. Repealer and new section heading and amendment of section filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2512. Request for Reclassification.

Note • History

A person may make a written request to the Chief Landscape Architect, to classify a freeway or a section of freeway as a landscaped freeway, or to declassify a freeway or section of freeway classified as a landscaped freeway.

(a) The request (1) shall be in writing; (2) shall be signed and dated; (3) shall identify the section of freeway by county, route and post mile or kilometer post; and (4) shall contain a detailed statement of reasons supporting the proposed freeway classification or declassification.

(b) Within 60 days after receiving the written request, a Landscape Architect shall inspect the freeway or section of freeway covered by the request. All findings made during this inspection are presented to the Chief Landscape Architect, who shall determine whether to reclassify the freeway section. The determination of whether to reclassify is based upon whether the freeway section meets the criteria of the Act and these regulations on the date of determination. A field review need not be made if a review has taken place within two years of the date of the request, unless the request specifies major changes have occurred within the two years preceding the request.

(c) Within 90 days after receiving a request for reclassification, the person making the request is notified in writing by the Chief Landscape Architect of the determination and the reasons therefore. If the request is not granted, the person making the request may appeal this determination to the Deputy Director Project Development pursuant to the provisions of section 2241(b) of these regulations.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Section 5216, Business and Professions Code.

HISTORY

1. Renumbering of former section 2512 to section 2508 and renumbering of former section 2516 to section 2512, including amendment of section and new Note, filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

2. Amendment of subsection (c) filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2513. Displays Viewed Primarily from Landscaped Freeways.

Note • History

If a section of freeway is classified as a landscaped freeway, the Department determines if there is a Display Adjacent To that section of freeway which is designed to be viewed primarily by a person traveling on the landscaped section of a freeway.

(a) A Display is designed to be viewed primarily from a landscaped freeway section when the Display is within the limits of a landscaped freeway and its copy is legible to motorists from within the landscaped segment.

(b) All determinations are made in the present. The fact the Display may have been designed primarily to be viewed from another roadway at some point in the past is not determinative.

(c) Notwithstanding subsection (a) above, if a Display's copy is legible from both a landscaped freeway and another freeway or highway, a rebuttable presumption is established that the Display is designed primarily to be viewed from the freeway or highway with the highest daily traffic count. This presumption may be rebutted by use of the following criteria:

(1) Traffic Count. Comparing the difference between the average daily traffic count for the landscaped freeway and the other freeway or highway.

(2) Angle. The angle of placement of the Display.

(3) Visual Approach Distance. The distance the Display is legible measured along each freeway or highway it is visible from.

(4) Height. Whether the Display's height makes the Display legible to more motorists on one freeway or highway or legible to motorists for a longer period of time on one freeway or highway.

(5) Relative Size. The prominence the Display has from each freeway or highway.

(6) Copy. Does the advertising message, or have past advertising messages, give specific directions for persons on only one freeway or highway.

(7) Owner's Representations. Has the Display been represented by the owner to be viewed primarily by persons traveling on one freeway or highway.

NOTE

Authority cited: Sections 5250 and 5415, Business and Professions Code. Reference: Sections 5216 and 5440, Business and Professions Code.

HISTORY

1. Renumbering of former section 2513 to section 2509 and renumbering of former section 2517 to section 2513, including amendment of section and new Note, filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

2. Amendment of subsection (c) filed 11-23-2004; operative 12-23-2004 (Register 2004, No. 48).

§2514. Records.

History

HISTORY

1. Renumbering of former section 2514 to section 2510 filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2515. Temporary Removal of Plant Material.

History

HISTORY

1. Renumbering of former section 2515 to section 2511 filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2516. Request for Reclassification.

History

HISTORY

1. Renumbering of former section 2516 to section 2512 filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2517. Displays Viewed Primarily from Landscaped Freeways.

History

HISTORY

1. Renumbering of former section 2517 to section 2513 filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2518. Notice to Remove Display.

History

HISTORY

1. Repealer filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

§2519. Review of Violation.

History

HISTORY

1. Repealer filed 9-20-99; operative 10-20-99 (Register 99, No. 39).

Division 7. Secretary of State

Chapter 1. Trade-Marks

(Originally Printed 3-22-45)

HISTORY

1. Repealer of Chapter 7 (Sections 2550 through 2566) filed 3-4-68; effective thirtieth day thereafter (Register 68, No. 10).

Division 8. Division of Measurement Standards,* Department of Food and Agriculture

* Formerly Bureau of Weights and Measures.

HISTORY

1. Repealer of division 8, articles 1-8 (sections 2600-2648) filed 1-8-82; operative 2-7-82 (Register 82, No. 2). Repealer of division 8, chapter 2, article 1 (sections 2874-2893) filed 9-30-83; operative 10-30-83 (Register 83, No. 40). Repealer of division 8, chapter 2, article 2 (sections 2894-2906) filed 1-31-83; operative 3-2-83 (Register 83, No. 6). Repealer of division 8, chapter 2, article 3 (sections 2914-2915) filed 10-1-63; operative 10-31-63 (Register 63, No. 17). Repealer of division 8, chapter 2, article 4 (sections 2918-2929.1) filed 9-30-83; operative 10-30-83 (Register 83, No. 40). Repealer of division 8, chapter 2, article 5 (sections 2930-2933.3.20) filed 12-20-90; operative 1-19-91 (Register 91, No. 9). Repealer of division 8, chapter 2, article 5.1 (sections 2940-2940.2) and article 5.2 (section 2941) filed 5-27-87; operative 6-26-87 (Register 87, No. 24). Repealer of division 8, chapter 2, article 6 (sections 2950-2962) filed 1-31-83; operative 3-2-83 (Register 83, No. 6). Repealer of division 8, chapter 2.1 (sections 2970-2970.2) filed 5-27-87; operative 6-26-87 (Register 87, No. 24). Repealer of division 8, chapter 3 (sections 2980-2982.2) filed 9-30-83; operative 10-30-83 (Register 83, No. 40). Repealer of division 8, chapter 4 (sections 3000-3196.6.5) filed 4-21-82; operative 4-21-82 pursuant to Government Code section 11346.2(d) (Register 82, No. 17). Repealer of division 8, chapter 5 (sections 3200-3260) filed 1-8-82 and 4-30-82; operative 2-7-82 and 4-30-82 pursuant to Government Code section 11346.2(d) (Register 82, Nos. 2 and 21). Repealer of division 8, chapter 6 (section 3300) filed 1-8-82; operative 2-7-82. Repealer of division 8, chapter 6.1 (sections 3310-3310.10) filed 4-21-82; operative 4-21-82 pursuant to Government Code section 11346.2(d) (Register 82, No. 17). Repealer of division 8, chapter 7 (sections 3350-3352) filed 1-8-82; operative 2-7-82 (Register 82, No. 2). Repealer of division 8, chapter 8 (section 3360) filed 4-21-82; operative 4-21-82 pursuant to Government Code section 11346.2(d) (Register 82, No. 17).

Division 9. Division of Measurement Standards, Department of Food and Agriculture

Chapter 1. Tolerances and Specifications for Commercial Weighing and Measuring Devices

Article 1. National Uniformity, Exceptions and Additions

§4000. Application.

Note • History

Commercial weighing and measuring devices shall, except where noted below, conform to the latest requirements set forth in the National Institute of Standards and Technology Handbook 44 “Specifications, Tolerances, and Other Technical Requirements for Weighing and Measuring Devices”, which is herein incorporated by reference, and to the Additional Requirements listed herein. Copies of Handbook 44 may be purchased from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer and new article 1 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44). For prior history, see Register 93, No. 19.

§4000.1.

Note • History

Each person or business submitting for or seeking approval of a type or design of a weight, measuring, weighing, measuring or counting device or for a design or type of device used for commercial purposes, shall pay to the Department of Food and Agriculture, for deposit into the Food and Agriculture Fund, the following fees:

(a) A nonrefundable application fee in the amount of $500, submitted at the time of application. No evaluation work will begin until this fee is paid.

(b) A deposit based on the evaluator's estimated time and per diem, travel and transportation costs, equipment needed, and type of tests to be performed. Any remaining costs not covered by the deposit(s) shall be charged and collected before the issuance of the Certificate of Approval.

(c) At the time of issuance of a Certificate of Approval, all remaining deposit monies shall be refunded to the applicant.

(d) An application will be considered abandoned after 90 days of inactivity, if an applicant has not paid the required deposit of fees or if the applicant is non-responsive to questions asked or submission of additional information as required to start or finish the type approval process, or for nonpayment of fees within 90 days, and the applicant will be required to reapply and pay the required fees again.

NOTE

Authority cited: Sections 12027, 12107 and 12500.9, Business and Professions Code. Reference: Sections 12107 and 12500.9, Business and Professions Code.

HISTORY

1. New section filed 12-30-2011; operative 12-30-2011 pursuant to Government Code section 11343.4 (Register 2011, No. 52).

§4000.2.

Note • History

The fees for type evaluation are as follows:

(a) Evaluator Time. The evaluator hourly rate (Department employee) is $150 per hour. The overtime rate is one and a half times the hourly rate. If a non-Departmental evaluator is used, the applicant will be billed directly at a rate set by them.

(b) Per Diem. The per diem rate shall be the current rate established by the California Department of General Services in the State Administrative Manual.

(c) Travel and Transportation Costs. These shall be the actual round trip costs of transportation for the evaluator to and from the evaluator's home base and the test site, in the event that tests cannot be performed locally. Transportation costs include evaluator's time, airfare, rail or other fare, vehicle rental, tolls, parking and mileage costs.

(d) Equipment.

(1) Environmental Chamber: $600 per device per full cycle, which includes testing at four different temperatures at three hours per temperature. $300 per device for less than a full cycle.

(2) Pickup Truck, Van, or other Light Duty Vehicle: $48 per day plus $0.55 per mile.

(3) Pickup Truck, Van, or other Light Duty Vehicle used for carrying or pulling standards or equipment: $60 per day and $0.72 per mile.

(4) Heavy Capacity Scale Test Truck, carrying standards up to 20,000 lb: $200 minimum charge, $600 per day, plus $3.60 per mile.

(5) Liquid Propane Prover Trailer, 25 and 100 gallon sizes: $240 per day.

(6) Compressed Natural Gas Prover Bottle, (9.33 GGE or 53 lbs.): $120 per day.

(7) Electric Watt-Hour Meter Test Unit: $100 per day.

(8) One, Three, or Five Gallon Test Measure: $40 per day per test measure.

(9) 50 Gallon Prover: $100 per day.

(10) 305 Gallon Prover: $125 per day.

(11) Gravimetric Test Equipment: $125 per day.

(12) Stillman Bottle: $100 per day.

(13) Nozzle Test Vessel: $75 per evaluation.

(14) Bell Prover: $125 per vapor meter evaluated.

(15) Water Meter Test Bench: $100 per water meter evaluation.

(16) Repetitive Load Tester: $50 per device <UN-> 50 lb and $75 per device > 50 lb, per day.

(17) Other unspecified equipment necessary for the evaluation: $100 per day.

(e) Additional Tests: Utility Meters and Load Cells.

(1) Utility Meter Laboratory Throughput: $125 per device for each vapor meter, $20 per day for each water meter, $15 per day for each electric meter.

(2) Load Cell Testing and Equipment: $7,200 per evaluation and $3,600 for each additional evaluation per application.

(f) Certificate fees and other charges.

(1) Certificate of Approval: $750 per application or device, up to two pages.

(2) Additional Pages, Certificate Updates, Amendments: $180 per each page reviewed, modified, or changed.

(3) Letter of Certificate from California Air Resources Board: $300 per device, component, or part reviewed.

NOTE

Authority cited: Sections 12027, 12107 and 12500.9, Business and Professions Code. Reference: Sections 12107 and 12500.9, Business and Professions Code.

HISTORY

1. New section filed 12-30-2011; operative 12-30-2011 pursuant to Government Code section 11343.4 (Register 2011, No. 52).

§4000.3.

Note • History

Each person or business having an approved type or design of a weight, measuring, weighing, measuring or counting device or for a design or type of device used for commercial purposes, shall pay to the Department of Food and Agriculture, for deposit into the Food and Agriculture Fund, an annual administrative fee for the reasonable costs incurred for the maintenance of type approval certificates in hard copy and electronic formats of $200 per Certificate. The annual administrative fee shall be paid on the first anniversary after a Certificate is issued, and each year thereafter that the design or type of device is being manufactured.

NOTE

Authority cited: Sections 12027, 12107 and 12500.9, Business and Professions Code. Reference: Sections 12107 and 12500.9, Business and Professions Code.

HISTORY

1. New section filed 12-30-2011; operative 12-30-2011 pursuant to Government Code section 11343.4 (Register 2011, No. 52).

§4001. Exceptions.

Note • History

The following regulations in Handbook 44 are not adopted or incorporated by reference:

1.10. General Code.

G-S.1.2. Remanufactured Devices and Remanufactured Main Elements.

G-T.1. Acceptance Tolerances.

(b) equipment that has been placed in commercial service within the preceding 30 days and is being officially tested for the first time;

(c) equipment that has been returned to commercial service following official rejection for failure to conform to performance requirements and is being officially tested for the first time within 30 days after corrective service;

(d) equipment that is being officially tested for the first time within 30 days after major reconditioning or overhaul;

2.20. Scales.

S.1.8.3. Customer Indications.

N.3. Minimum Test Weights and Test Loads*.

UR.2.6.1 Vehicle Scales.

UR.3.7. Minimum Load on a Vehicle Scale.

3.30. Liquid-Measuring Devices.

N.4.1.1. Wholesale Devices Equipped With Automatic Temperature Compensating Systems.

3.31. Vehicle-Tank Meters.

UR.2.2. Ticket Printer; Customer Ticket.

3.32. Liquefied Petroleum Gas and Anhydrous Ammonia Liquid-Measuring Devices.

S.2.6. Automatic Temperature Compensation.

N.4.1.1. Automatic Temperature Compensation.

UR.2.3. Vapor Return Line.

3.33. Hydrocarbon Gas Vapor-Measuring Devices.

S.4.3. Temperature Compensation.

Appendix D. Definitions for:

Remanufactured Device.

Repaired Device.

Remanufactured Element.

Repaired Element.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer of article 2 and section and new section filed 11-1-94; operative 12-1-94 (Register 94, No. 44). For prior history, see Register 92, No. 9.

2. Amendment of subsection 2.20, S.1.8.3 filed 4-9-96; operative 5-9-96 (Register 96, No. 15).

3. Editorial correction of History 2 (Register 96, No. 49).

4. Amendment of subsection (d) filed 9-28-98; operative 10-28-98 (Register 98, No. 40).

5. Amendment filed 10-2-2003; operative 11-1-2003 (Register 2003, No. 40).

6. Change without regulatory effect amending third paragraph filed 3-23-2004 pursuant to section 100, title 1, California Code of Regulations (Register 2004, No. 13).

§4001.1. G-S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Editorial correction of subsection G-S.1 filed 8-16-82 (Register 82, No. 34).

2. Amendment of subsection G-S.1 filed 6-29-83; effective thirtieth day thereafter (Register 83, No. 27).

3. Repealer of subsection G-S.5.8 filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

4. Change without regulatory effect of subsections G-S.5.2.3, G-S.5.3.1, G-S.5.5., G-S.5.6.1 and G-S.5.7 filed 6-23-86; effective thirtieth day thereafter (Register 86, No. 26).

5. Amendment of subsection G-S.1 and new subsections G-S.5.2.2(d) and G-S.8 filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No. 11).

6. Change without regulatory effect of subsections G-S.1 and G-S.2 (Register 88, No. 2).

7. Amendment of subsection G-S.5.3.1 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

8. Editorial correction of HISTORY 7 printing error (Register 88, No. 20).

9. Amendment of subsection G-S.8 filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

10. Amendment of subsections G-S.5.3.1, G-S.5.6., and G-S.8. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

11. Amendment of subsections G-S.1 and G-S.5.2.1 filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

12. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4001.2. G-N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection G-N.2. filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

2. Change without regulatory effect of subsection G-N.1 filed 6-23-86; effective thirtieth day thereafter (Register 86, No. 26).

3. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4001.4. G-T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Editorial correction of subsection G-T.2 filed 8-16-82 (Register 82, No. 34).

2. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4001.5. G-UR. User Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect of subsection G-UR.2.2 filed 6-23-86; effective thirtieth day thereafter (Register 86, No. 26).

2. Amendment of subsection G-UR.3.4 and new subsection G-UR.4.6 filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

3. Amendment of subsections G-UR.2.3. and G-UR.4.1. filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

4. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4001.6. D. Definitions of Terms. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect (Register 88, No. 2).

2. Amendment of “nonretroactive” filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

3. Amendment of “nonretroactive” filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

4. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4002. Additional Requirements.

Note • History

The following sections apply to devices in addition to the Handbook 44 requirements that are incorporated by reference. The number in parenthesis following the section number and section title refers to the related section in Handbook 44; i.e., 4002.1. General Code (1.10.) refers to Section 1.10. General Code in Handbook 44.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer of article 3 and section and new section filed 11-1-94; operative 12-1-94 (Register 94, No. 44). For prior history, see Register 86, No. 26.

§4002.1. General Code (1.10.)

Note • History

(a) Type Approval Use. Upon written authorization of the Secretary, a county sealer may allow a device to be used for commercial purposes during a type approval inspection period following initial testing.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer and new section filed 11-1-94; operative 12-1-94 (Register 94, No. 44). For prior history, see Register 93, No. 19.

2. Repealer of subsection (b) filed 4-9-96; operative 5-9-96 (Register 96, No. 15).

§4002.2. Scales (2.20.)

Note • History

(a) Minimum Load on a Vehicle Scale. Except for weighments of ferrous metals, cardboard, paper, rags or plastic, and the weighing of vehicles for registration purposes, a vehicle scale shall not be used for weighing net loads less than the value of 20 scale divisions.

(b) Class III, Class III L and Unmarked Devices Used For Recycling. Except for weighments of ferrous metals, cardboard, paper, rags, or plastic, Class III, Class III L and unmarked devices used in recycling shall not be used for weighing net loads less than the value of 20 scale divisions.

(c) Livestock Scales Not Equipped With Balance Indicator. The Sensitivity Requirement for livestock scales not equipped with a balance indicator shall be 10 pounds, notwithstanding the requirements of Handbook 44, Section 2.20. Scales, T.2.7.2.

(d) Customer's Indications. Weight indications shall be shown on the customer's side of computing scales when these are used for direct sales to retail customers. Computing scales equipped on the operator's side with digital indications, such as net weight, unit price, or total price, shall be similarly equipped on the customer's side. Unit price displays visible to the customer shall be in terms of whole units of weight, and not in common or decimal fractions. (Nonretroactive May 9, 1996)

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer and new section filed 11-1-94; operative 12-1-94 (Register 94, No. 44). For prior history, see Register 93, No. 19.

2. New subsection (e) filed 4-9-96; operative 5-9-96 (Register 96, No. 15).

3. Editorial correction of subsection (e) (Register 96, No. 49).

4. Repealer of subsection (a) and subsection relettering filed 3-3-2011; operative 4-2-2011 (Register 2011, No. 9).

§4002.3. Vehicle-Tank Meters. (3.31.)

Note • History

UR.2.2. Ticket Printer; Customer Ticket. Vehicle-mounted metering systems shall be equipped with a ticket printer which shall be used for all sales where product is delivered through the meter. A copy of the ticket issued by the device shall be left with the customer at the time of delivery or as otherwise specified by the customer. [Nonretroactive as of January 1, 1995.]

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. New section filed 9-28-98; operative 10-28-98 (Register 98, No. 40). For prior history, see Register 96, No. 15.

§4002.4. Liquefied Petroleum Gas and Anhydrous Ammonia Liquid-Measuring Devices. (3.32.)

Note • History

(a) Temperature Compensation. All liquefied petroleum gas measuring devices with a manufacturer's maximum rated flow capacity exceeding 20 gallons per minute shall be equipped with automatic means to correct the volume delivered to the volume at 60 oF. The automatic temperature compensator shall be connected, operable and in use at all times.

(b) The provisions of Handbook 44, Section 3.32., S.3.1, Liquefied Petroleum Gas and Anhydrous Ammonia Liquid-Measuring Devices Code shall not apply to equipment located at wholesale loading terminals when used exclusively for the purpose of filling transports utilizing the spray fill, or when the delivery is being made simultaneously to truck and trailer from one meter when the product being delivered into the truck and trailer is being purchased by the same person.

(c) Wholesale Deices Equipped With Automatic Temperature Compensating Systems. On wholesale devices equipped with automatic temperature compensating systems, normal tests:

(1) Shall be conducted with the temperature compensating system connected and operating by comparing the compensated volume indicated or recorded to the actual delivered volume corrected to 60 oF; and

(2) May be conducted with the temperature compensating system deactivated, comparing the uncompensated volume indicated or recorded to the actual delivered volume.

The first test shall be performed with the automatic temperature compensating system operating in the “as found” condition. On devices that indicate or record both the compensated and uncompensated volume for each delivery, the tests in (1) and (2) may be performed as a single test.

(d) Vapor-Return Line. During any metered delivery of liquefied petroleum gas from a supplier's tank to a receiving container, there shall be no vapor-return line from the receiving container to the supplier's tank.

(e) Signs. Any retail liquefied petroleum gas dispenser, with the exception of those mounted on a motor vehicle, shall display a sign showing the price schedule of all transactions. The sign shall be where it is plainly discernable to the customer. All letters, figures or numerals used to express the price schedule shall be at least three-quarters of an inch in height.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer and new section filed 11-1-94; operative 12-1-94 (Register 94, No. 44). For prior history, see Register 94, No. 8.

2. Editorial correction of subsections (c)(2) and (e) (Register 96, No. 49).

§4002.4.1. T.N. Tolerances Applicable to Devices Marked I, II, III, III L, and IIII. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. New section filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

2. Change without regulatory effect of subsections T.N.2.5, T.N.3.1, T.N.8, T.N.8.1.1 and T.N.8.4 filed 6-23-86; effective thirtieth day thereafter (Register 86, No. 26).

3. Editorial correction of printing errors (Register 86, No. 41).

4. Editorial correction of subsection T.N.6.1(b) printing error (Register 86, No. 52).

5. Amendment of subsection T.N.2.1 filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No. 11).

6. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

7. Change without regulatory effect of subsections T.N.6.1 and T.N.6.2 and renumbering of former subsection T.N.8.4 to T.N.8.2 pursuant to section 100, title 1, California Code of Regulations, filed 9-1-88 (Register 88, No. 37).

8. Amendment of subsection T.N.4.5 and repealer of subsection T.N.5.2 filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

9. Amendment of section filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

10. Editorial correction of printing error in subsection T.N.4.5.(a) (Register 92, No. 34).

11. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4002.5. Hydrocarbon Gas Vapor-Measuring Devices. (3.33.)

Note • History

(a) Leak Test. Each meter shall be submitted to a pressure leak test not to exceed the manufacturer's maximum rated pressure.

(b) Temperature Compensation. - If a device is equipped with an automatic temperature compensator, this shall be indicated on the badge or immediately adjacent to the badge of the device and on the register.

(1) each individual hydrocarbon gas vapor meter billing invoice, and

(2) the applicable rate schedule for a period of not less than 12 months and shall make them available at reasonable times for inspection and copying by the customer and the county sealer of weights and measures.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer and new section filed 11-1-94; operative 12-1-94 (Register 94, No. 44). For prior history, see Register 93, No. 19.

§4002.6. Water Meters. (3.36.) [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer and new section filed 11-1-94; operative 12-1-94 (Register 94, No. 44). For prior history, see Register 94, No. 8.

2. Repealer filed 4-9-96; operative 5-9-96 (Register 96, No. 15).

§4002.7. Farm Milk Tanks. (4.42.)

Note • History

(a) Calibration at Installation. Any farm milk tank exceeding 1,000 gallons capacity installed or relocated after January 1, 1982 shall be calibrated at the farm and a volume chart prepared before the acceptance test is performed.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. New section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4002.8. Liquid-Measuring Devices. (3.30.)

Note • History

(a) Wholesale Device Equipped With Automatic Temperature Compensating Systems. On wholesale devices equipped with automatic temperature compensating systems, normal tests:

(1) shall be conducted with the temperature compensating system connected and operating by comparing the compensated volume indicated or recorded to the actual delivered volume corrected to 60 oF, and

(2) may be conducted with the temperature compensating system deactivated by comparing the uncompensated volume indicated or recorded to the actual delivered volume.

The first test shall be performed with the automatic temperature compensating system operating in the “as found” condition.

On devices that indicate or record both the compensated and uncompensated volume for each delivery, the tests in (1) and (2) may be performed as a single test.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. New section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

2. Editorial correction of penultimate paragraph (Register 96, No. 49).

§4003. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer and new section filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No. 11).

2. Repealer of article 4 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4003.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer and new section filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No. 11).

2. Editorial correction of subsection S.2 printing error (Register 87, No. 25).

3. Amendment of subsection S.1.1 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

4. Amendment of subsections S.1.5, S.1.6 and S.3.1 filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

5. Amendment of subsections S.1.5., S.1.6., S.1.8. and S.3.1. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

6. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4003.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer and new section filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No. 11). For prior history see Register 83, No. 27.

2. Editorial correction of subsection N.3.3(a) printing error (Register 87, No. 25).

3. Amendment of subsections N.2, N.3.2 and N.3.3 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

4. Amendment of subsections N.3.1, N.3.2 and N.3.3, and new subsection N.3.2.1 filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

5. Amendment of subsections N.3.1, N.3.2., N.3.2.1. and N.3.3. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

6. Editorial correction of printing error in subsection N.3.2.1 (Register 92, No. 34).

7. Amendment of subsections N.1.2, N.3.2.1, and N.3.3 filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

8. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4003.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer and new section filed 3-3-87; effective thirtieth day thereafter (Register 87, No. 11). For prior history, see Register 83, No. 27.

2. Editorial correction of subsection T.4 printing error (Register 87, No. 25).

3. Amendment of subsection T.4.3 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

4. Editorial correction of subsection T.4.3 printing error (Register 88, No. 20).

5. Repealer of subsection T.4.3 filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

6. Amendment of subsection T.3 and new subsection T.4.1.2 filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

7. Amendment of section filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

8. Editorial correction of printing error in subsection T.3.(b) (Register 92, No. 34).

9. Change without regulatory effect amending T.3.1.2. filed 2-24-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 8).

10. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4003.5. UR. User Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer and new section filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No. 11). For prior history, see Register 83, No. 27.

2. Amendment of subsection UR.3.2 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

3. Editorial correction of HISTORY 2 printing error (Register 88, No. 20).

4. Change without regulatory effect of subsection UR.3.2. pursuant to section 100, title 1, California Code of Regulations, filed 9-1-88 (Register 88, No. 37).

5. Amendment of subsection UR.1. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

6. Amendment of subsections UR.3.2 and UR.4 filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

7. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4003.6. D. Definitions of Terms. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer and new section filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No. 11).

2. Editorial correction of subsection UR.2 printing error (Register 87, No. 25).

3. Change without regulatory effect (Register 88, No. 2).

4. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

5. Amendment filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

6. Amendment of “nonretroactive” filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

7. Repealer of “certifying authority” and new “official with statutory authority” filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

8. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4004. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of article 5 (heading only) filed 12-27-84; designated effective 1-1-85 pursuant to Government Code section 11346.2(d) (Register 84, No. 52).

2. Repealer of article 5 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4004.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4004.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect correcting section number filed 6-23-86; effective thirtieth day thereafter (Register 86, No. 26).

2. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4004.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Editorial correction of Table 2 filed 8-16-82 (Register 82, No. 34).

2. Amendment of Table filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No. 11).

3. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4005. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Renumbering of former subsections A.2 and A.3 to subsections A.3 and A.4 respectively, and new subsection A.2 filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No. 11).

2. Editorial correction of subsection A.3(b) printing error (Register 87, No. 25)

3. Repealer and new section filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

4. Amendment of section filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

5. Editorial correction of printing error in subsection A.3 (Register 92, No. 34).

6. Repealer of article 6 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4005.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment filed 6-29-83; effective thirtieth day thereafter (Register 83, No. 27).

2. Editorial correction of subsection S.1.4.4.1(b) filed 11-17-83 (Register 83, No. 47).

3. Amendment of subsections S.1.1.3, S.1.4.4.3, S.2.4 and S.2.5 filed 12-27-84; designated effective 1-1-85 pursuant to Government Code section 11346.2(d) (Register 84, No. 52).

4. Amendment filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

5. Change without regulatory effect of subsection S.1.4.4 filed 6-23-86; effective thirtieth day thereafter (Register 86, No. 26).

6. Editorial correction of printing errors (Register 86, No. 41).

7. Renumbering of former subsection S.1.4.5 to subsection S.1.4.7, new subsections S.1.4.5 and S.1.4.6, and repealer of subsection S.2.5.1 filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No. 11).

8. Change without regulatory effect of subsections S.1.2.3, S.1.3.1 and S.4.3.1 (Register 88, No. 2).

9. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

10. Change without regulatory effect of subsections S.1.5.1, S.2.7.4 and S.2.9 pursuant to section 100, title 1, California Code of Regulations, filed 9-1-88 (Register 88, No. 37).

11. Repealer and new section filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

12. Amendment of subsection S.1.6.4.1 and new subsection S.1.6.5.4 filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

13. Amendment of section filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

14. Editorial correction of printing error in subsections S.1.6.2.1, S.1.6.5, S.1.6.5.2, S.2.4.3, S.3.4, S.3./6.(c), S.4.2, and Table 1 (Register 92, No. 34).

15. Repealer of subsections S.3.3 and S.3.4 and redesignation of S.3.5-S.3.9 to S.3.3-S.3.7, and amendment of subsections S.1.6.5.1, S.2.2, S.3.1 and S.3.2 filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

16. Amendment of subsection S.1.6.2.1 filed 2-25-94; operative 3-28-94. Submitted to OAL for printing only pursuant to Government Code section 11343.8 (Register 94, No. 8).

17. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4005.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment filed 6-29-83; effective thirtieth day thereafter (Register 83, No. 27).

2. Amendment of subsection N.4.2.2 filed 12-27-84; designated effective 1-1-85 pursuant to Government Code section 11346.2(d) (Register 84, No. 52).

3. Amendment filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

4. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

5. Change without regulatory effect of subsections N.3.5 and N.4.1 pursuant to section 100, title 1, California Code of Regulations, filed 9-1-88 (Register 88, No. 37).

6. Repealer and new section filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

7. Amendment of section filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

8. Amendment of subsection N.4.1 filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

9. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4005.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Editorial correction of subsection T.2.1 filed 8-16-82 (Register 82, No. 34).

2. Amendment filed 6-29-83; effective thirtieth day thereafter (Register 83, No. 27).

3. Editorial correction of Tables 1 and 2 filed 11-17-83 (Register 83, No. 47).

4. Amendment filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

5. Editorial correction of printing errors (Register 86, No. 41).

6. Amendment of subsection T.2.3 and Table 3, and new subsections T.2.3.1 and T.2.3.2 filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No. 11).

7. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

8. Change without regulatory effect of subsections T.2.3.1 and T.2.3.3 pursuant to section 100, title 1, California Code of Regulations, filed 9-1-88 (Register 88, No. 37).

9. Repealer and new section filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

10. Amendment of section filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

11. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4005.5. UR. User Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection UR.2.4 filed 6-29-83; effective thirtieth day thereafter (Register 83, No.27).

2. Amendment of subsection UR.3.2 (filed 12-27-84; designated effective 1-1-85 pursuant to Government Code section 11346.2(d) (Register 84, No. 52).

3. Amendment of subsection UR.1.1.1 filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

4. Change without regulatory effect of subsection UR.3.2 (Register 88, No. 2).

5. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

6. Change without regulatory effect of subsections UR.1.1, UR.2.1, UR.3.2 and UR.3.5.2 pursuant to section 100, title 1, California Code of Regulations, filed 9-1-88 (Register 88, No. 37).

7. Repealer and new section filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

8. Amendment of subsection UR.3.2, renumbering of subsections UR.3.3, UR.3.4 and UR.3.5 to subsections UR.3.4, UR.3.5 and UR.3.6, new subsection UR.3.3, renumbering of subsection UR.3.5.1 to subsection UR.3.6.1, renumbering and amendment of subsection UR.3.5.1.1 to subsection UR.3.6.1.1, renumbering of subsection UR.3.5.1.2 to subsection UR.3.6.1.2, renumbering of subsection UR.3.5.2 to subsection UR.3.6.2, renumbering of subsection UR.3.5.2.1 to subsection UR.3.6.2.1, and renumbering subsection UR.3.5.2.2 to subsection UR.3.6.2.2 filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

9. Amendment of section filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

10. Editorial correction of printing error in subsection UR.3.2.(b) and subsection heading UR.3.3 (Register 92, No. 34).

11. Amendment of subsection UR.2.4 filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

12. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4005.6. D. Definitions of Terms. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect (Register 88, No. 2).

2. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

3. Change without regulatory effect pursuant to section 100, title 1, California Code of Regulations, filed 9-1-88 (Register 88, No. 37).

4. Repealer and new section filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

5. Amendment of “clear interval”, “dispenser”, “mass flow meter”, “motor fuel device”, “nonretroactive”, and “pressure type (device)” filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

6. Editorial correction of printing error in “minimum clear interval” (Register 92, No. 34).

7. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4006. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection A.1 filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No.11).

2. Repealer of article 7 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4006.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection S.1.4.1 filed 12-27-84; designated effective 1-1-85 pursuant to Government Code section 11346.2(d) (Register 84, No. 52).

2. Repealer of subsections S.3.7 and S.3.8 filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

3. Amendment of subsection A.1 filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No. 11).

4. Change without regulatory effect of subsections S.1.3.1 and S.5.2 (Register 88, No. 2).

5. Amendment of subsections S.1.2.3, S.2.2 and S.2.2.1 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

6. Amendment of subsections S.1.1.2, S.1.1.3, S.1.4.2 and S.1.4.3, and new subsections S.2.4 and S.5.5 filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

7. Amendment of subsections S.1.1.2., S.1.1.3., S.1.4.3., and S.5.5. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

8. Amendment of subsection S.1.1.2(c) filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

9. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4006.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsections N.1 and N.3 filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

2. Amendment of subsections N.1. and N.3. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

3. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4006.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Editorial correction of Tables 1 and 2 filed 11-17-83 (Register 83, No. 47).

2. Amendment of subsection T.2 and new subsection T.3 filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No. 11).

3. Amendment of subsections T.2 and T.3 filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

4. Amendment of Table 2a and subsection T.3. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

5. Repealer of tables 2-2a, new table 2, and amendment of subsection T.2* and tables 1-1a filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

6. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4006.5. UR. User Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection UR.2.1 filed 6-29-83; effective thirtieth day thereafter (Register 83, No. 27).

2. Repealer of subsection UR.1.4 filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

3. Change without regulatory effect of subsection UR.1.3 (Register 88, No. 2).

4. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4006.6. * D. Definitions of Terms. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. New section filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

2. Amendment of section filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

3. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4007. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection A.1 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

2. Repealer of article 8 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4007.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer and new subsection S.2.3 filed 6-29-83; effective thirtieth day thereafter (Register 83, No. 27).

2. Amendment of subsection S.2.6 filed 12-27-84; designated effective 1-1-85 pursuant to Government Code section 11346.2(d) (Register 84, No. 52).

3. Amendment filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

4. Editorial correction of printing errors (Register 86, No. 41).

5. Editorial correction of subsection S.1.4.4 (Table 1) printing error (Register 86, No. 52).

6. Amendment of subsection S.1.1.5 filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No. 11).

7. Change without regulatory effect of subsections S.1.2.3 and S.1.3.1 (Register 88, No. 2).

8. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

9. Change without regulatory effect of subsections S.1.1.6, S.2.5 and S.2.7 pursuant to section 100, title 1, California Code of Regulations, filed 9-1-88 (Register 88, No. 37).

10. Amendment filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

11. Change without regulatory effect of subsection S.1.4 pursuant to section 100, title 1, California Code of Regulations filed 2-7-90 (Register 90, No. 11).

12. Amendment of section filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

13. Editorial correction of printing error in subsections S.1.4.2 and S.2.6 headings (Register 92, No. 34).

14. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4007.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection N.3 filed 6-29-83; effective thirtieth day thereafter (Register 83, No. 27).

2. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

3. Change without regulatory effect of subsections N.4.1 and N.4.2.3 pursuant to section 100, title 1, California Code of Regulations, filed 9-1-88 (Register 88, No. 37).

4. Amendment of subsections N.4.1.1, N.4.3.1 and N.4.3.2 filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

5. Amendment of subsections N.4.1.1. and N.4.2. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

6. Editorial correction of printing error in subsection N.4.1.1 heading and text (Register 92, No. 34).

7. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4007.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

2. Change without regulatory effect of subsections T.2.1 and T.2.2 pursuant to section 100, title 1, California Code of Regulations, filed 9-1-88 (Register 88, No. 37).

3. Amendment of subsection T.2 and repealer of subsections T.2.1 and T.2.2 filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

4. Amendment of subsection T.2. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

5. New subsection T.3 filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

6. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4007.5. UR. User Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Editorial correction of subsection UR.2.9 * filed 8-16-82 (Register 82, No. 34).

2. New subsections UR.2.4.2 and UR.2.4.3 filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

3. Editorial correction of printing errors (Register 86, No. 41).

4. Amendment of subsection UR.2.6 filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No. 11).

5. New subsection UR.2.4.4 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

6. Change without regulatory effect of subsection UR.2.4.4 pursuant to section 100, title 1, California Code of Regulations, filed 9-1-88 (Register 88, No. 37).

7. Amendment of subsection UR.2.4.1. filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

8. Amendment of subsection UR.2.4.1. and repealer of subsection UR.2.6 filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

9. Amendment of subsection UR.1.2 filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

10. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4007.6. D. Definitions of Terms. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect of section heading (Register 88, No. 2).

2. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

3. Change without regulatory effect pursuant to section 100, title 1, California Code of Regulations, filed 9-1-88 (Register 88, No. 37).

4. Amendment filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

5. Amendment of “nonretroactive” filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

6. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§Table 2*. Reduction of Volume to 60o F. Against Specific Gravity 60/60o F. for Liquefied Petroleum Gases (Abridged Table). [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Editorial correction of Table 1* filed 8-16-82 (Register 82, No. 34.)

2. Renumbering of Table 1 * to Table 2 * filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

3. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4008. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect of subsection A.3 (Register 88, No. 2).

2. Amendment of subsection A.1 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

3. Amendment of subsection A.2 filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

4. Amendment of subsection A-1 filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

5. Editorial correction of printing error in subsection A.1 heading (Register 92, No. 34).

6. Amendment of subsection A.1 filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

7. Repealer of article 9 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4008.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection S.2.1 filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

2. Change without regulatory effect (Register 88, No. 2).

3. Amendment of subsections S.1.1.3, S.1.1.5 and S.3.2 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

4. Editorial correction of HISTORY 3 printing error (Register 88, No. 20).

5. Amendment of subsection S.1.1.5 filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

6. Amendment of subsections S.1.1.3. and S.1.1.5. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

7. Editorial correction of printing error in subsection S.2.1 (Register 92, No. 34).

8. Amendment of subsections S.1.1.2, S.1.1.3 and S.4.2 and new S.2.5 filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

9. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4008.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. New subsection N.4.2.3 * filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

2. Change without regulatory effect of subsections N.1, N.4.2.3 and N.5 (Register 88, No. 2).

3. Amendment of subsections N.4.1, N.4.1.1 and N.4.2.1 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

4. Amendment of subsection N.4.1.1 filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

5. Amendment of subsections N.4.1. and N.4.2. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

6. Amendment of subsections N.1, N.4.2.2 and table 1 filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

7. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4008.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Editorial correction of printing error in subsection T.1 (Register 92, No. 34).

2. New subsection T.2 filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

3. Amendment filed 2-25-94; operative 3-28-94. Submitted to OAL for printing only pursuant to Government Code section 11343.8 (Register 94, No. 8).

4. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4008.5. UR. User Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection UR.2.2 filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

2. Change without regulatory effect of subsections UR.1, UR.1.2, UR.2, and UR.2.1 (Register 88, No. 2).

3. Amendment of subsections UR.2.2, and UR.2.3 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

4. Amendment of subsection UR.2.2 and new subsection UR.2.13 filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

5. Repealer of subsection UR.2.10, and renumbering of subsection UR.2.13 to subsection UR.2.10 filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

6. Amendment of subsections UR.2.1. and UR.2.2. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

7. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4008.6. D. Definitions of Terms. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect (Register 88, No. 2).

2. Amendment filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

3. Amendment of “nonretroactive” filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

4. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§Table 2*. Temperature Correction Factors. [Repealed]

§Table 3*. Corrections For Pressure and Altitude. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer of Table 2* and Table 3* filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4009. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsections A.1 and A.2 filed 12-27-84; designated effective 1-1-85 pursuant to Government Code section 11346.2(d) (Register 84, No. 52).

2. Amendment of subsections A.1 and A.2 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

3. Repealer of article 10 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4009.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Editorial correction of subsection S.2.2 filed 8-16-82 (Register 82, No. 34). 2. Amendment of subsections S.1.1.2, S.1.1.3, S.1.1.5, S.1.4.2, S.2.1, S.2.4, S.3.1 and S.4.3 filed 12-27-84; designated effective 1-1-85 pursuant to Government Code section 11346.2(d) (Register 84, No. 52).

3. Change without regulatory effect of subsections S.1.1.2, S.1.2.3 and S.1.3.1 (Register 88, No. 2).

4. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

5. Amendment of subsection S.2.4 filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

6. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4009.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsections N.1 and N.7 filed 12-27-84; designated effective 1-1-85 pursuant to Government Code section 11346.2(d) (Register 84, No. 52).

2. Amendment of subsection N.4 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

3. Amendment of subsection N.4 filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

4. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4009.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment filed 12-27-84; designated effective 1-1-85 pursuant to Government Code section 11346.2(d) (Register 84, No. 52).

2. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4009.5. UR. User Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsections UR.2.1, UR.2.2, UR.2.5 and UR.2.6.2 filed 12-27-84; designated effective 1-1-85 pursuant to Government Code section 11346.2(d) (Register 84, No. 52).

2. Editorial correction of printing error in subsection UR.2.2 (Register 85, No. 17).

3. Change without regulatory effect of subsection UR.2.6.3 (Register 88, No. 2).

4. Amendment of subsection UR.2.5 and UR.2.7 filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

5. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4009.6. D. Definitions of Terms. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment filed 12-27-84; designated effective 1-1-85 pursuant to Government Code section 11346.2(d) (Register 84, No. 52).

2. Editorial correction of printing error (Register 85, No. 17).

3. Change without regulatory effect (Register 88, No. 2).

4. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

5. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

Article 2. Specifications and Tolerances and Other Technical Requirements for Commercial Weighing and Measuring Devices Not Included in Handbook 44

§4010. Application.

Note • History

This article and Articles 2.1, 2.2 and 2.3 apply to tolerances, specifications and other technical requirements for commercial weighing and measuring devices that are not incorporated as part of National Institute of Standards and Technology's Handbook 44.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer of article 11 and section and new article 2 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4010.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Editorial correction of subsection S.1.1.3 filed 8-16-82 (Register 82, No. 34).

2. Change without regulatory effect of subsections S.1.2.3 and S.1.3.1 (Register 88, No. 2).

3. Repealer of subsections.1.3.6 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

4. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4010.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection N.4.1. filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

2. Amendment of subsections N.4.1. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

3. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4010.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4010.5. UR. User Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4010.6. D. Definitions of Terms. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect (Register 88, No. 2).

2. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

3. Amendment of “nonretroactive” filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

4. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4011. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer of article 12 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4011.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect of subsections S.1.2, S.2.4, and S.3 (Register 88, No. 2).

2. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4011.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer of subsection N.6* filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

2. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4011.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4011.5. UR. User Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

Article 2.1. Liquefied Petroleum Gas Tanks When Mounted on Highway Vehicles and Used As Measures

§4012. A. Application.

Note • History

A.1. This code applies to liquefied petroleum gas tanks when mounted on highway vehicles and used as commercial measures. The code does not apply to the following devices:

(a) Devices used solely for dispensing a product in connection with operations in which the amount dispensed does not affect customer charges.

(b) Meters mounted on liquefied petroleum gas tanks (for which see code for Liquefied Petroleum Gas Meters).

A.2. See also General Code requirements.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Renumbering and amendment of former article 13 to article 2.1 and amendment of subsections A.1. and A.2. filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4012.1. S. Specifications.

Note • History

S.1. Design of Liquefied Petroleum Gas Tanks.

S.1.1. Tank Requirements. Liquefied petroleum gas tanks when used as measures shall be so constructed and marked to fully comply with all requirements of the California State Department of Industrial Relations whenever such Department has jurisdiction pertaining to liquefied petroleum gas tanks.

S.1.2. Completeness of Delivery. A tank shall be so constructed that, when it is standing on a level surface, complete delivery can be made.

S.2. Design and Location of Liquefied Petroleum Gas Tank Gaging Devices.

S.2.1. General. A dip pipe shall be so designed that it will distinctly and unmistakably define a capacity point when liquid is in contact with the lowest portion of the dip pipe.

S.2.2. Number of Dip Pipes. When any tank is used as a measure, it shall be provided with one or more dip pipes, one of which shall indicate between 86 percent and 87 percent of the actual total capacity of the tank.

S.2.3. Permanently Installed. Except as provided in S.2.5. and S.2.6., dip pipes shall be permanently installed as an integral part of the tank.

S.2.3.1. Cylindrical Tanks. Dip pipes on a cylindrical tank shall be installed with the location of the internal opening of the dip pipe or dip pipes on a line with the longitudinal axis of the tank midway between the ends. For the purpose of this article, “midway” means that the internal opening of the dip pipe or dip pipes shall not be more than 6 inches from the actual midway distance between the ends of the tank.

S.2.3.2. Spherical Tanks. The dip pipe or dip pipes on a spherical tank shall be installed with the location of the internal opening or openings of the dip pipe or dip pipes in line with the vertical axis of the tank.

S.2.4. Openings. The internal opening of a dip pipe shall be not less than one-quarter inch standard iron pipe size, for at least the first two inches above the liquid, and the internal opening of the dip pipe shall be parallel to the surface of the liquid and shall approach the liquid through the vapor space when the tank is plumb and level. The maximum opening of the bleeder valve shall be a number fifty-four drill size.

S.2.5. Dip Pipes on Valves. Dip pipes which are fastened to a valve or valves and are so installed as to be removable from the container and which are less than one-quarter inch standard iron pipe size shall be permitted only on containers of five hundred pounds water capacity or less.

S.2.6. Removable Dip Pipes. Removable dip pipes may be used on containers having a capacity in excess of five hundred pounds if the opening and at least the first two inches of the dip pipe above the liquid is not less than one-quarter inch standard iron pipe size. Provision shall be made so the dip pipe or dip pipes may be sealed in place by a weights and measures official in such a manner their position cannot be changed or the dip pipe or dip pipes be removed without destroying or mutilating the seal or seals.

S.3. Marking of Capacity. Each liquefied petroleum gas tank used as a measure shall be plainly and conspicuously marked with its capacity. This marking shall appear on the rear or side of the tank, adjacent to the outage indicator valve, in letters, figures, or numerals not less than 3/4 inch in height and not less than 1/2 inch in width. On tanks having one calibrated capacity, the marking shall indicate the tank capacity to the nearest gallon and shall also indicate without qualification that the capacity is measured to the dip pipe. In the case of a liquefied petroleum gas tank having more than one calibrated capacity, the marking required by this section shall indicate the capacity applicable to the respective dip pipe.

A marking statement may be expressed in terms of percentage of fill (i.e., 86 1/2%), if followed by the required marking which states the calibrated capacity in terms of gallons to the dip pipe.

Each and all letters, figures or numerals required by this section shall be of like color or tint and shall contrast with the background of such sign or designation. The required markings shall be the responsibility of the owner of the liquefied petroleum gas tank.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection S.2.2 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

2. Editorial correction of printing error in subsection S.2.6 (Register 92, No. 34).

3. Amendment deleting subsection asterisks filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4012.2. N. Notes.

Note • History

N.1. Test Liquid. Water or light fuel oil shall be used as the test liquid for a liquefied petroleum gas tank.

N.2. Evaporation and Volume Change. Care shall be exercised to reduce to a minimum, evaporation losses and volume changes resulting from changes in temperature of the test liquid.

N.3. Gaging. When a liquefied petroleum gas tank is gaged to determine the proper position for an indicator or to determine what a capacity marking should be, tolerances are not applicable. The indicator shall be set and the tank capacity shall be marked as accurately as practicable.

This requirement applies to new liquefied petroleum gas tanks or following repairs or modifications that might affect tank capacities.

N.4. Adjustment and Remarking. When a liquefied petroleum gas tank is found upon test to have an error in excess of the applicable tolerance, the capacity of the liquefied petroleum gas tank shall be adjusted to agree with its marked capacity, or its marked capacity shall be changed to agree with its capacity as determined by the test.

N.5. Inspection. Weights and measures officials shall not inspect or certify liquefied petroleum gas liquid measuring devices until:

(a) A certificate of inspection covering such equipment has been issued by the Division of Industrial Safety, Department of Industrial Relations of the State of California; or

(b) In the case of equipment requiring inspection by the United States Department of Transportation, a certificate has been issued by that agency applicable to such equipment; or until

(c) Bonafide evidence has been presented that such inspection has been requested of the proper agency by the owner or operator of the equipment, and written permission from the proper agency has been received by him to operate the equipment until the requested inspection has been made. The provisions of this section shall not apply to marine terminals, natural gasoline plants, oil refineries or oil tank farms.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment deleting subsection asterisks filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4012.4. T. Tolerances.

Note • History

T.1. Application. The tolerances hereinafter prescribed shall be applied to errors in excess and in deficiency.

T.2. Tolerance Values. Maintenance and acceptance tolerances shall be as shown in Table 1.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment deleting asterisks filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4012.5. UR. User Requirements.

Note • History

UR.1. Filling. A liquefied petroleum gas tank shall stand upon a level surface during the filling.

UR.2. Delivering. During a delivery, a liquefied petroleum gas tank shall be so positioned as to assure complete emptying of tank.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment deleting subsection asterisks filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4013. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer of article 14 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4013.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4013.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4014. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of article heading filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

2. Repealer of article 15 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4014.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4014.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4014.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Editorial correction of Table 1 filed 11-17-83 (Register 83, No. 47).

2. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4014.5. UR. User Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4015. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of article heading filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

2. Repealer of article 16 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4015.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Editorial correction of subsection S.3.6.1 filed 8-16-82 (Register 82, No. 34).

2. Amendment filed 6-29-83; effective thirtieth day thereafter (Register 83, No. 27).

3. Editorial correction of subsections S.1(c) and S.3.6.1 filed 11-17-83 (Register 83, No. 47).

4. Amendment of subsection S.3.5.2 filed 12-27-84; designated effective 1-1-85 pursuant to Government Code section 11346.2(d) (Register 84, No. 52).

5. Amendment filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

6. Amendment filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No. 11).

7. Change without regulatory effect of subsections S.2.2.1, S.2.4, S.3.7.2 and S.3.7.3 (Register 88, No. 2).

8. Amendment filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

9. Editorial correction of printing error in subsection S.3.7.3.(e) (Register 92, No. 34).

10. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4015.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

2. Editorial correction of printing error in subsection N.1 (Register 92, No. 34).

3. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4015.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4015.5. UR. User Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection UR.3 filed 6-29-83; effective thirtieth day thereafter (Register 83, No. 27).

2. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4015.6. D. Definitions of Terms. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Editorial correction filed 8-16-82 (Register 82, No. 34).

2. Amendment filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

3. Amendment filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No. 11).

4. Change without regulatory effect of section heading (Register 88, No. 2).

5. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

6. Amendment of “nonretroactive” filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

7. Editorial correction of printing error in definition of “nonretroactive” (Register 92, No. 34).

8. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4016. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of article heading filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

2. Repealer of article 17 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4016.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4016.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4016.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of Table 1. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

2. Editorial correction of printing errors in Table 1 (Register 92, No. 34).

3. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4016.5. UR. User Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4017. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of article heading filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

2. Repealer of article 18 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4017.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect of subsection S.7.1 (Register 88, No. 2).

2. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4017.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect of subsection N.2 (Register 88, No. 2).

2. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4017.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect of subsection T.1 (Register 88, No. 2).

2. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4018. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of article heading filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

2. Repealer of article 19 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4018.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect of subsection S.3 (Register 88, No. 2).

2. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4018.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection N.1.2 filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

2. Amendment of subsection N.1.2. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

3. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4018.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4019. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of article heading filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

2. Repealer of article 20 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4019.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4019.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4019.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4020. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer of article 21 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4020.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect of subsection S.2.2.1 (Register 88, No. 2).

2. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4020.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4020.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4020.5. UR. User Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Renumbering of former subsection UR.3* to subsection UR.2.2 filed 6-29-83; effective thirtieth day thereafter (Register 83, No. 27).

2. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4021. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer of article 22 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4021.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer and new subsection S.3.3 filed 6-29-83; effective thirtieth day thereafter (Register 83, No. 27).

2. Change without regulatory effect of subsection S.2.2.1 (Register 88, No. 2).

3. Amendment of subsection S.1 filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

4. Amendment of subsection S.1. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

5. Editorial correction of printing error in subsection S.1 (Register 92, No. 34).

6. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4021.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection N.1. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

2. Editorial correction of printing error in subsection N.1 (Register 92, No. 34).

3. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4021.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4021.5. UR. User Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4022. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer of article 23 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4022.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection S.5.2 filed 6-29-83; effective thirtieth day thereafter (Register 83, No. 27).

2. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4022.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4023. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer of article 24 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4023.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Adoption of subsection S.1.6. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

2. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4023.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection N.1.3.3 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

2. Change without regulatory effect of subsection N.1.3.3 pursuant to section 100, title 1, California Code of Regulations, filed 9-1-88 (Register 88, No. 37).

3. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4023.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection T.2 and new subsection T.2.1 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

2. Change without regulatory effect of subsections T.2 and T.2.1 pursuant to section 100, title 1, California Code of Regulations, filed 9-1-88 (Register 88, No. 37).

3. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4023.5. UR. User Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4023.6. D. Definitions of Terms. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect (Register 88, No. 2).

2. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

3. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4024. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer of article 25 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4024.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect of subsections S.1.5.2, S.1.5.3 and S.1.5.4 (Register 88, No. 2).

2. Amendment of subsection S.1.3 and new subsection S.1.3.1 filed 12-22-87; operative 1-21-88 (Register (88, No. 2).

3. Amendment filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

4. Amendment filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

5. Editorial correction of printing error in subsections S.1.5.1, S.5, and S.6.(b) (Register 92, No. 34).

6. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4024.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsections N.2 and N.3 filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

2. Amendment of subsections N.2. and N.3. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

3. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4024.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection T.1.2.2 and new subsections T.1.3 and T.1.3.1 filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

2. Amendment of subsections T.1.2.2., T.1.3., and T1.3.1. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

3. Amendment of subsection T.1.2.2 filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

4. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4024.5. UR. User Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection UR.2 filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No. 11).

2. Amendment of subsection UR.2 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

3. Amendment of subsections UR.3 and UR.4 filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

4. Amendment of subsection UR.3 filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

5. Amendment of subsections UR.3. and UR.4. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

6. Editorial correction of printing error in subsection UR.3 (Register 92, No. 34).

7. Repealer of subsection UR.4 filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

8. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4024.6. D. Definitions of Terms. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect (Register 88, No. 2).

2. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

3. Amendment filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

4. Amendment of “nonretroactive” filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

5. Editorial correction of printing error in “nonretroactive” (Register 92, No. 34).

6. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4025. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer of article 26 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4025.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Editorial correction of section heading filed 8-16-82 (Register 82, No. 34).

2. Amendment of subsection S.1.4 filed 12-27-84; designated effective 1-1-85 pursuant to Government Code section 11346.2(d) (Register 84, No. 52).

3. Editorial correction of printing error in subsection S.1.4 (Register 85, No. 17).

4. Change without regulatory effect of subsections S.1.2.3 and S.1.3.1 (Register 88, No. 2).

5. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4025.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. New subsection N.2 filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

2. Amendment of subsection N.2. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

3. Editorial correction of printing errors in Table N.2 (Register 92, No. 34).

4. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4025.4. T. Tolerances. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection T.1.1 filed 1-21-87; operative 1-21-88 (Register 88, No. 2).

2. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4025.5. UR. User Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4025.6. D. Definitions of Terms. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect of section heading (Register 88, No. 2).

2. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

3. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4026. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Repealer of Article 27 (Sections 4026-4026.6, not consecutive) and new Article 27 (Sections 4026-4026.6, not consecutive) filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

2. Editorial correction of printing error (Register 86, No. 41).

3. Repealer of article 27 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4026.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection S.1.6.2 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

2. Amendment filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

3. Amendment of subsection S.1.6.2 filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

4. Amendment of section filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

5. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4026.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection N.1.2 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

2. Amendment of subsection N.1.3 filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

3. Amendment of subsections N.1.1 and N.1.2 filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

4. Amendment of section filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

5. Editorial correction of printing error in footnote (Register 92, No. 34).

6. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4026.4. T. Tolerances.* [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect of subsection T.3 filed 6-23-86; effective thirtieth day thereafter (Register 86, No. 26).

2. Editorial correction of printing errors (Register 86, No. 41).

3. New subsection T.4 filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

4. Amendment of subsection T.4. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

5. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4026.5. UR. User Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment of subsection UR.3.1 and new subsections UR.3.8-UR.3.11 filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

2. Amendment filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

3. Editorial correction of printing error in subsection UR.3.9 (Register 92, No. 34).

4. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4026.6. D. Definitions of Terms. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Change without regulatory effect (Register 88,No. 2).

2. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

3. Amendment of “nonretroactive” filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

4. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

Article 2.2. Electric Watthour Meters

§4027. A. Application.

Note • History

A.1. This code applies to electronic and mechanical electric energy submeters used for “commercial purposes”.

A.2. See also National Institute of Standards and Technology (NIST) Handbook 44, Section 1.10, General Code requirements adopted in Article 1, Chapter 1, Sections 4000, 4001, 4002.

A.3. This code does not apply to the use of any weight or measure or weighing or measuring instrument used by a public utility in connection with measuring gas, electricity, water, steam, or communication service subject to the jurisdiction of the Public Utilities Commission.

A.4. Code sections and subsections with an (EM) notation apply to electronic meters only. Code sections and subsections with a (MM) notation apply to mechanical meters only. Code sections and subsections without (EM) or (MM) notation apply to both meter types.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Sections 12107, 12500 and 12510, Business and Professions Code.

HISTORY

1. Renumbering of article heading and amendment of section deleting asterisks filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

2. Repealer of former article 2.2 (sections 4027-4028.6), new article 2.2 (sections 4027-4027.5) and repealer and new section filed 1-13-2009; operative 2-12-2009 (Register 2009, No. 3).

§4027.1. D. Definitions.

Note • History

Accuracy Class. A performance specification for instrument transformers which expresses the maximum deviation from the true value of a measured quantity. (Instrument Transformer Accuracy Class) example: a 0.2 accuracy class transformer would be more accurate than a 0.3 accuracy class transformer.

Active Power. The component of electric power that performs work, typically measured in kilowatts (kW) or megawatts (MW). Also known as “real power.” The terms “active” or “real” power are used to modify the base term “power” to differentiate it from Reactive Power. The active power (Pac) or real power measured by a meter, is the product of voltage (E) times current (I) times the cosine of the angle by which the current lags the voltage (cos Φ) or power factor (pf). Pac = (E) (I) (pf) = (E) (I) (cos φ) where φ is the phase angle of the lag.

Alternating Current (AC). An electric current that reverses direction in a circuit at regular intervals.

Ampere. The practical unit of electric current. It is the quantity of current caused to flow by a potential difference of one volt through a resistance of one ohm. One ampere is one coulomb of charge per second.

Apparent Power: The product of the current and the voltage in a circuit.

Audit Trail. An electronic count and/or information record of the changes to the values of the calibration or configuration parameters of a device.

Balanced Load. Balanced load is used to indicate equal currents in all phases and relatively equal voltages between phases and between each phase and neutral (if one exists), with approximately equal watts in each phase of the load.

Basic Lightning Impulse Insulation Level (BIL). A specific insulation level expressed in kilovolts of the crest value of a standard lightning impulse. (Example: BIL = 10 Kv)

Burden (B). The impedance of the circuit connected to the instrument transformer's secondary winding. (Example: B = 21 Ohms Max.)

Commercial Purposes. a) A quantity determination or statement of weight, measure, or count of any commodity or thing, used wholly or partially, as a basis for sale, or,

b) a quantity determination or statement of weight, measure, or count of any commodity or thing upon which, wholly or partially, a charge for service is based.

Coulomb. The meter-kilogram-second unit of electric charge equal in magnitude to the charge of 6.24 x 1018 electrons; charge transported through a conductor by a current of one ampere flowing for one second.

Creep. A continuous apparent measurement of energy in a meter with operating voltage applied and no power consumed.

Current. The rate of the electron flow past any one point in the circuit. The unit of measurement is coulombs per second or amperes.

Electronic Meter (EM). An electric watthour meter that does not have a rotor.

Element. A combination of a voltage-sensing unit and a current-sensing unit, which provides an output proportional to the quantities measured.

Form Designation (FM). (MM) An alphanumeric designation denoting the circuit arrangement for which the meter is applicable and its specific terminal arrangement. The same designation is applicable to equivalent meters for all manufacturers. (Example: FM 2S)

Hertz (Hz). Frequency or cycles per second. One cycle of an alternating current or voltage is one complete set of positive and negative values of the current or voltage.

Instrument Transformer. A transformer that reproduces in its secondary circuit, in a definite and known proportion, the voltage, or current of its primary circuit, with the phase relation preserved. Sometimes these devices may be referred to as VTs (Voltage Transformers) or CTs (Current Transformers).

Instrument Transformer-Rated Meter. A metering system with terminals arranged for connection to the secondary windings of external instrument transformers.

Instrument Transformer Ratio. The stated ratio of the primary circuit current or voltage compared to the secondary circuit current or voltage. (Example: CTR = 200 : 0.1)

Kilowatt (kW). A unit of power equal to 1,000 watts.

Kilowatthour (kWh). 1,000 watthours.

Line Service. The service conductors connecting the master meter to the submeter.

Load Service. The service conductors connecting the submeter to the tenant's electrical load.

Master Meter. An electric watthour meter owned, maintained, and used for commercial billing purposes by the serving utility. All the electric energy served to a submetered service system is recorded by the master meter.

Mechanical Meter (MM). A watthour meter with a rotor.

Meter Class (CL). The manufacturer's designated maximum amperes a meter can measure continuously without damage or exceeding limits of accuracy. (Example: CL 200)

Meter. An electric watthour meter.

Metrological Components. Elements or features of a measurement instrument or system that perform the measurement process or that may affect the final quantity determination or resulting price determinations. This includes accessories that can affect the validity of transactions based upon the measurement process. The measurement process includes determination of quantities; the transmission, processing, storage, or other corrections or adjustments of measurement data or values; and the display or recording of measurement values or other derived values such as price or worth or charges.

Ohm. Practical unit of electric resistance, which allows one ampere to flow when the impressed potential is one volt.

Percent Registration. Percent registration is calculated as follows:

Percent Error. Percent Error = Percent Registration - 100

Power Factor. The ratio of the active power to the apparent power.

Primary Watthour Constant (PKh) (MM). The meter Kh multiplied by the product of the current and/or voltage transformer ratio(s):

PKh = Kh (Current Transformer Ratio X Voltage Transformer Ratio)

Register Ratio (Rr) (MM). The number of revolutions of the gear meshing with the worm or pinion on the rotor shaft per complete rotation of the fastest (most sensitive) wheel or dial pointer.

Remote Configuration Capability. The ability to adjust a measuring device or change its sealable parameters from or through some other device that is not itself necessary to its operation and is not a permanent part of the adjustable device.

Revolution Equivalent. The number of watthours represented by one increment (pulse period) of serial data.

Serving Utility. The utility distribution company that owns the master meter and sells electric energy to the owner of the submeter system.

Stator (MM). The unit which provides the driving torque in a watthour meter. It contains a voltage coil, one or more current coils, and the necessary steel to provide the required magnetic paths.

Submeter. A meter furnished, owned, installed, and maintained, by the customer who is served through a utility owned master meter.

Tenant. The person or persons served electric energy from a submetered service system.

Test Amperes (TA). The manufacturer's specified full load test amperage. (Example: TA 30)

Test Block. Device that facilitates safe meter testing by disconnecting the meter from the circuit without interrupting the service to the tenant.

Thermal Overload Protector. A circuit breaker or fuse that automatically limits the maximum current in a circuit.

Volt. The practical unit of electromotive force. One volt will cause one ampere to flow when impressed across a resistance of one ohm.

Voltage Transformer. A device which provides a secondary voltage which is a precise fraction of the primary voltage.

Watt. The practical unit of electric power. In an alternating-current circuit (AC), the power in watts is volts times amperes multiplied by the circuit power factor.

Watthour (Wh). The practical unit of electric energy, which is expended in one hour when the average load during the hour is one watt.

Watthour Constant (Kh). The expression of the relationship between the energy applied to the meter and one rotor revolution, or output indication, expressed as watthours per revolution or, watthours per output indication.

Watthour Meter. An electricity metering system comprised of components functioning together that measures and registers the integral, with respect to time, of the active power of the circuit in which it is connected. This power integral is the energy delivered to the circuit during the interval over which the integration extends. The unit in which this integral is measured is usually the kilowatthour.

Watthour Test Constant (Kt) (EM). The expression of the relationship between the energy applied to the meter system and corresponding occurrence of one test output indication expressed as watthours per test output indication.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Sections 12107 and 12500, Business and Professions Code.

HISTORY

1. Amendment deleting asterisks filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

2. Repealer and new section filed 1-13-2009; operative 2-12-2009 (Register 2009, No. 3).

§4027.2. S. Specifications.

Note • History

S.1. Metrological Components. A meter system shall be designed and constructed so that metrological components are adequately protected from environmental conditions likely to be detrimental to accuracy. Components shall be designed to prevent undetected access to adjustment mechanisms and terminal blocks by providing for application of a physical security seal or an audit trail.

S.2. Terminals. The terminals of the meter shall be arranged so that the possibility of short circuits while removing or replacing the cover, making connections, or adjusting the meter, is minimized.

S.3. Provision for Sealing.

S.3.1. Sealing. Provisions shall be made for applying a security seal in a manner that requires the seal to be broken, or for other approved means of providing security (e.g. audit trail available at the time of inspection), before an adjustment can be made that affects the metrological integrity of the meter. The audit trail shall use the format set forth in Table S.3.1.

Table S.3.1. Categories of Device and Methods of Sealing

Category of Device Method of Sealing

Category 1: No remote configuration capability. Seal by physical seal or two event counters:

one for calibration parameters and one for configuration parameters.

Category 2: Remote configuration capability, The hardware enabling access for remote communication must be

but access is controlled by physical hardware. on-site. The hardware must be sealed using a physical seal or an

event counter for calibration parameters and an event counter for

The device shall clearly indicate that it is in configuration parameters. The event counters may be located

the remote configuration mode and record either at the individual measuring device or at the system controller;

such message if capable of printing in this however, an adequate number of counters must be provided to

mode or shall not operate while in this mode. monitor the calibration and configuration parameters of the

individual devices at a location. If the counters are located in

the system controller rather than at the individual device, means

must be provided to generate a hard copy of the information

through an on-site device.

Category 3: Remote configuration capability access An event logger is required in the device; it must include an event

may be unlimited or controlled through a software counter (000 to 999), the parameter ID, the date and time of the change,

switch (e.g., password). and the new value of the parameter. A printed copy of the information

must be available through the device or through another on-site device.

The device shall clearly indicate that it is in the remote The event logger shall have a capacity to retain records equal to ten times

configuration mode and record such message if capable the number of sealable parameters in the device, but not more than 1000

of printing in this mode or shall not operate while in records are required. (Note: Does not require 1000 changes to be stored

this mode. for each parameter.)

S.4. Meter Identification and Marking Requirements. The following identification and marking requirements are in addition to the requirements of National Institute of Standards and Technology (NIST) Handbook 44, Section 1.10, General Code, G-S.1.

Each meter shall have the following information legibly marked on the nameplate or register, if applicable.

(a) Manufacturer's name or trademark, type designation, and non-repetitive serial number.

(b) AC voltage rating.

(d) Meter class (CL).

(e) Watthour or rotor constant (Kh).

(f) (MM) Register ratio (Rr) and multiplier (if greater than one).

(g) Frequency rating (Hz).

(h) Number of meter stator(s) or element(s).

(i) Watthour meter or other descriptive term.

(j) (MM) Number of wires (W).

(k) (MM) Form designation (FM).

(l) (EM) Watthour test constant (Kt).

Instrument transformer-rated meters shall contain the following additional information:

(m) Instrument transformer ratio or transformer model number.

(n) (MM) Primary watthour constant (PKh).

(o) Temperature Limits, if narrower than and within -20oC to +50oC (-4oF to 122oF).

(Nonretroactive as of February 12, 2009)

S.5. Abbreviations and Symbols. The following abbreviations or symbols may appear on a meter, instrument transformer, or indicator.

(a) FM = Form

(b) CL = Class

(d) Hz = Hertz, Frequency or Cycles Per Second

(e) TA = Test Amperes

(f) Kh = Watthour Constant Per Rotor Revolution or Pulse

(g) PKh = Primary Watthour Constant

(h) Rr = Register Ratio

(i) CTR = Current Transformer Ratio

(j) VTR or PTR = Voltage or Potential Transformer Ratio

(k) MULT BY = Multiply By

(l) W = Wire (example: 240V 3W)

(m) Y = WYE Power Supply

(n) ANSI = American National Standards Institute

(o) B = Burden

(p) BIL = Basic Lightning Impulse Insulation Factor

(q) Kt = (EM) Watthour Test Constant

(r) AC = Alternating Current (i.e. VAC)

(s) Wh = Watthour

(t) kWh = Kilowatthour

(u) Δ = Delta Power Supply

S.6. Instrument Transformer.

S.6.1. Identification. Each instrument transformer that is non-integral with the meter shall have a permanent identification label identifying the following:

(a) Manufacturer's name, type designation, and non-repetitive serial number

(b) True ratio, primary versus secondary, ampere or voltage values

(d) Burden designation (B)

(e) Basic lightning impulse insulation level (BIL)

(f) Rated Frequency (HZ)

Note: If evident by the method of integration that instrument transformers are not intended to be detachable or replaceable, the required information may be located on the meter. (Nonretroactive as of February 12, 2009)

S.6.2. Accuracy Class. An instrument transformer that is not an integral part of the meter and is used for revenue metering shall be rated 0.3 accuracy class or more accurate for the burden of a particular meter type. If a meter system requires an instrument transformer more accurate than 0.3 accuracy class, the limitations shall be stated on the meter.

(Nonretroactive as of February 12, 2009)

S.6.3. Polarity Marking. A permanent mark indicating proper installation orientation is required on the instrument transformer when the accuracy of the meter is affected.

S.7. (MM) Meter Register. A meter register shall clearly indicate the number of kilowatthours measured by the meter. The register ratio shall be indicated on the front of the registers that are not an integral part of the meter nameplate. Means shall be provided for the tenant to read the meter register.

S.8. (EM) Meter Watthour Display.

S.8.1. All submeters in a service system shall have an individual customer display on or at the meter and the minimum value shall not exceed one kilowatt hour.

(Nonretroactive as of February 12, 2009)

S.8.2. All submeter systems shall be capable of displaying at least one watthour test constant (Kt) output indication but not more than 20 watthour test constant output indications.

Means for displaying watthour test constant output indications include but are not limited to: decimal point, contrasting display colors, shorting link, or a means for visual flashing pulse counts. (Nonretroactive as of February 12, 2009)

S.8.3. The minimum display value (unit of measure) shall be conspicuously identified on or near the customer display.

(Nonretroactive as of February 12, 2009)

S.8.4. A segmented digital display shall have an easily accessible provision for checking that all segments are operational.

(Nonretroactive as of February 12, 2009)

S.8.5. If the display is not on continuously, it shall be accumulated continuously so that real-time measurement is displayed during activation.

(Nonretroactive as of February 12, 2009)

S.9. Multiple Meter Indicating Elements. An indicating or combination indicating-recording element coupled to two or more meter systems shall be provided with means to prohibit display of information from any meter system not selected, and shall be provided with automatic means to indicate clearly and definitely which meter system is associated with the indication.

S.10. (EM) Meter-Control Program. The meter-control program shall be an integral part of the meter's firmware read-only memory that cannot be changed in its operating environment. This section does not apply to electronic meters that do not utilize a meter-control program.

S.11. (EM) Data Storage and Retrieval.

(a) Watthour data accumulated and displayed on the indicator shall be permanent and accessible.

(b) Values displayed or stored in memory shall not be affected by electrical, mechanical or temperature variations, radio-frequency interference, power failure, or any other environmental influences to the extent that accuracy is impaired.

(c) Memory and/or display shall be recallable for the life of the meter. A replaceable battery shall not be used for this purpose.

S.12. Temperature Range for Metering Components. Meters shall be accurate and correct over the temperature range of -20 oC to +50 oC (-4 oF to 122 oF). If the meter and/or components are not capable of meeting these requirements the installations shall be limited to temperature limits stated on the meter.

(Nonretroactive as of February 12, 2009)

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment deleting asterisks filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

2. Repealer and new section filed 1-13-2009; operative 2-12-2009 (Register 2009, No. 3).

§4027.3. N. Notes.

Note • History

N.1. Meter Creep Test. A meter creep test shall be conducted by applying rated voltage to the meter under test and no load applied.

N.2. Meter Starting Load. A meter starting load test shall be conducted by applying rated voltage and 0.5-ampere load.

N.3. (MM) Test Revolutions. Full and light load tests shall require 8 or more revolutions of the test standard and at least one revolution of the meter under test.

N.4. (EM) Meter Test Constant Output Indications. Full and light load tests shall consist of 8 or more watthour test constant (Kt) output indications of the test standard and at least one watthour test constant (Kt) output indication of the meter under test. Test standards that read out directly in watthours shall meet the watthour equivalent of 8 or more watthour test constant (Kt) output indications.

N.5. Meter and System Test Loads.

(a) (MM) Mechanical self-contained meters shall be balanced load tested, and may be single element tested, for meter accuracy at full and light loads.

(b) (MM) Instrument transformer rated systems shall be single element tested, and may be balanced load tested, for system accuracy at full and light loads. Meter testing shall be accomplished by applying the test load to the current transformer(s).

(c) (EM) Instrument transformer(s) rated systems shall be single element tested, for system accuracy at full and light loads. Meter testing shall be accomplished by applying the test load to the instrument transformer(s) with the voltage circuits energized.

(d) The reference voltage phases (A, B, or C) at the meter shall be the same phase as the load.

N.6. Test of a Meter System.

(a) Each meter submitted for test shall be a complete system. For example: a meter body and any necessary instrument transformer(s), indicator(s), system software, etc., required to make up a complete system.

(b) The test load applied for a full load test shall be the marked test amperes (TA) on the nameplate of the meter under test.

(c) The test load applied for a light load test shall be conducted at not less than 10% of the marked (TA) test amperes on the nameplate of the meter under test.

(d) The test load applied for a full load test of a meter for a 0.5 power factor setting shall be the marked (TA) test amperes of the nameplate of the meter under test.

(e) The test load applied for a light load test of a meter for a 0.5 power factor setting shall be conducted at not less than 20% of the (TA) test amperes of the meter.

(f) All tests shall be made at the rated voltage ” 10%.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. New section filed 1-13-2009; operative 2-12-2009 (Register 2009, No. 3).

§4027.4. T. Tolerances.

Note • History

T.1. Meters with Separate Components. Where instrument transformers or other components are used, the provisions of this section shall apply to all metering components.

T.2. Meter Creep Test.

T.2.1. (EM) The meter indicator or display shall not change by more than one least significant digit with the voltage circuit(s) energized and current circuit(s) not energized for a duration of one hour using the watthour test constant (Kt) output indications.

T.2.2. (MM) A meter rotor shall rotate no more than one complete revolution in 10 minutes with the meter voltage circuit(s) energized and the current circuit(s) not energized.

T.3. Meter Starting Load Test.

T.3.1. (EM) The watthour test constant (Kt) output indication shall continue to advance when a load of 0.5 amperes is applied.

T.3.2. (MM) The meter rotor shall rotate continuously when a load of 0.5 amperes is applied.

T.4. Application to Underregistration and to Overregistration. The following prescribed tolerances shall be applied to errors of underregistration and errors of overregistration.

T.4.1. Tolerance Values. Maintenance and acceptance tolerances for electric watthour meters shall be as follows for full and light load tests:

(a) Maintenance tolerance shall be 2 percent for full and light loads.

(b) Acceptance tolerance shall be 1 percent for full and light loads.

T.4.2. Power Factor Tests. Power factor tests shall be conducted at 0.5 power factor setting:

(a) Maintenance tolerance shall be 2 percent for full and light loads.

(b) Acceptance tolerance shall be 1 percent for full and light loads.

Note: 0.5 power factor light load tests shall be conducted at 20 percent of the Test Amperes (TA).

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment deleting asterisks filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

2. Repealer and new section filed 1-13-2009; operative 2-12-2009 (Register 2009, No. 3).

§4027.5. UR. User Requirements.

Note • History

UR.1. Selection Requirements.

UR.1.1. Meter Class. The meter class shall equal or exceed the total capacity in amperes of the thermal overload protectors of the tenant.

UR.1.2. Suitability of Equipment. A meter shall be suitable for use on its electrical system. A 3-wire two-phase load which is connected to a 120-208 volt network service shall be metered by a two-stator or two-element meter.

A meter shall accurately measure all loads 5 percent or greater of the electric service capacity of the tenant. Service capacity shall be determined by the master thermal overload protectors to the tenants' service or by the rated capacity of an electric cord and its connector used to provide power from the service panel to the tenant.

UR.1.3. Instrument Transformer Ratio. The instrument transformer shall be correctly matched to the meter indicator and multiplier.

UR.2. Installation Requirements.

UR.2.1. Regulation Conflicts and Permit Compliance. If any provision of this section (UR.2. Installation Requirements) is less stringent than that required of a similar installation by the serving utility, the installation shall be in accordance with those requirements of the serving utility.

The installer of any new electric watthour submeter service shall obtain all necessary permits and shall conform to California Public Utilities Commission (CPUC) Decision D 05-05-026, including but not limited to conformance with Section 8 of Pacific Gas and Electric Company (PG&E) Greenbook requirements.

(Nonretroactive as of February 12, 2009).

UR.2.2 Certification by Serving Utility or Public Utilities Commission. It is the responsibility of the owner of the submeter system to obtain written certification for each submetered service connection from the serving utility or from a person designated as qualified by either the serving utility or by the California Public Utilities Commission (CPUC).

The required certification shall identify the address, space, or number, of the premise served by the submeter connection, be signed by an authorized serving utility representative or by a designee, and shall clearly state:

a) the installation meets all serving utility installation and accessibility requirements for similar installations served directly by the serving utility,

b) the installation is on a tariff schedule that qualifies for submeter use,

c) the billing format, rates, and charges conform to Public Utilities Code Sections 739.5 or 12821.5 and to all applicable serving utility tariff rules,

d) the installation complies with CPUC Decision 05-05-026

e) the date of such determination, and

f) if performed by a designee, the designee's name and title, and the name and title of the serving utility company or Public Utilities Commission representative authorizing the designee to make the determination.

The certification shall be provided to the county sealer prior to a submeter being used for commercial purposes.

(Nonretroactive as of February 12, 2009).

UR.2.3. Meter Test Facilities. All meters shall be provided with the same test facilities required of a similar meter by the serving utility.

UR.2.4. (MM) Test Blocks. All three-phase self-contained meter installations shall be equipped with test blocks, which are approved by the serving utility, for safe meter testing.

UR.2.5. (MM) Test Switches. Meter installations that are equipped with current or potential transformers, or both, shall have test switches installed, which are approved by the serving utility, for safe meter testing.

UR.2.6. (MM) Circuit Closing Devices. All self-contained meter installations that cannot accept a short interruption of the electrical service, for the purpose of testing the meter, shall be equipped with a manual circuit closing device as approved by the serving utility. Automatic circuit closing devices shall not be used on any meter installation.

UR.2.7. Metered Circuits (Load Service). All electricity used by a tenant shall be taken exclusively from the load service of the tenant's meter. This service and its associated meter shall accurately measure the tenant's load and be capable of being used only at the discretion of the tenant.

UR.2.8. Unmetered Circuits (Line Service). The tenant's electric circuit shall not be taken from the line terminals of the meter, meter socket, or line service. The owner of the submeter system may utilize this service.

UR.2.9. Dedicated Tenant Service. A meter shall serve only the space, lot, building, room, suite, stall, slip, or premise occupied by the tenant.

UR.2.10. Tenant Premise Identification. Tenant premise identification shall be clearly and permanently shown on or at the meter, and on all separate components of a meter system, including, but not limited to, instrument transformer(s), modem(s), and transmitter(s) if equipped. Remote indications and all printed indications shall be readily identifiable and readily associated with the tenant's premise. Printed indications shall also include time and date information.

U.R.3. Use Requirement.

UR.3.1. Submeter Required. When a tenant is not directly served by the serving utility, and charges for electric energy are not included in the fixed periodic rent charges, a dedicated electric watt-hour submeter that measures only the energy used at the discretion of the tenant shall be used.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107 and 12500, Business and Professions Code.

HISTORY

1. Amendment deleting asterisks filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

2. Repealer and new section filed 1-13-2009; operative 2-12-2009 (Register 2009, No. 3).

§4027.6. Definitions of Terms. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107. Business and Professions Code.

HISTORY

1. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

2. Amendment deleting asterisks and amending nonretroactive filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

3. Editorial correction restoring load service (Register 94, No. 44).

4. Repealer filed 1-13-2009; operative 2-12-2009 (Register 2009, No. 3).

§4028. A. Application. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. New article 29 (sections 4028-4028.5) filed 12-27-84; designated effective 1-1-85 pursuant to Government Code section 11346.2(d) (Register 84, No. 52).

2. Amendment of subsection A.1 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

3. Change without regulatory effect of subsection A.1 pursuant to section 100, title 1, California Code of Regulations, filed 9-1-88 (Register 88, No. 37).

4. Amendment of subsection A.1. filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

5. Repealer of article 29 and section filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4028.1. S. Specifications. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Editorial correction of printing error in subsection S.3.1 (Register 85, No. 17).

2. Amendment of subsections S.1.2 and new subsections S.5.3 and S.5.4 filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

3. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4028.2. N. Notes. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

2. Change without regulatory effect of subsections N.1.2, N.1.3 and N.1.4 pursuant to section 100, title 1, California Code of Regulations, filed 9-1-88 (Register 88, No. 37).

3. New subsections N.1.5 and N.1.5.1 filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

4. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4028.4. T. Tolerance. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

2. Amendment of subsection T.7.3.1 filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

3. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4028.5. UR. User Requirements. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. Amendment filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

2. Amendment of subsection UR.4 filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

3. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4028.6. D. Definitions of Terms. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. New section filed 12-22-87; operative 1-21-88 (Register 88, No. 2).

2. Repealer filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

Article 2.3. Carbon Dioxide Liquid-Measuring Devices

§4029. A. Application.

Note • History

A.1. This code applies to carbon dioxide liquid measuring devices used for the measurement of liquid carbon dioxide.

A.2. This code does not apply to devices used solely for dispensing a product in connection with operations in which the amount dispensed does not affect customer charges.

A.3. The General Code provisions also apply to this device.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. New article 30 (sections 4029-4029.6) filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

2. Renumbering of article heading and amendment of section deleting asterisks and amending subsection A.3. filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4029.1. S. Specifications.

Note • History

S.1 Design of indicating and recording elements and of recorded representations.

S.1.1. Primary elements.

S.1.1.1. General. A device shall be equipped with a primary indicating element and may also be equipped with a primary recording element.

S.1.1.2. Units. A device shall indicate and record, if equipped to record, its deliveries in terms of pounds or kilograms; or decimal subdivisions or multiples thereof.

S.1.1.3. Value of Smallest Unit. The value of the smallest unit of indicated delivery, and recorded delivery, if the device is equipped to record, shall not exceed the equivalent of:

(a) for small delivery devices:

(1) one pound, or

(2) one kilogram.

(b) for large delivery devices:

(1) ten pounds, or

(2) ten kilograms.

S.1.1.4. Advancement of Indicating and Recording Elements. Primary indicating and recording elements shall be susceptible of advancement only by the normal operation of the device. However, a device may be cleared by advancing its elements to zero, but only if:

(a) the advancing movement, once started, cannot be stopped until zero is reached, or

(b) in the case of indicating elements only, such elements are automatically obscured until the elements reach the correct zero position.

S.1.1.5. Return to Zero. Primary indicating and recording elements shall be readily returnable to a definite zero indication. Means shall be provided to prevent the return of primary indicating elements and of primary recording elements beyond their correct zero position.

S.1.2. Graduations.

S.1.2.1. Length. Graduations shall be so varied in length that they may be conveniently read.

S.1.2.2. Width. In any series of graduations, the width of a graduation shall in no case be greater than the width of the clear interval between graduations. The width of main graduations shall be not more than 50 percent greater than the width of subordinate graduations. Graduations shall in no case be less than 0.008 inch in width.

S.1.2.3. Clear Interval Between Graduations. The clear interval shall be not less than 0.04 inch. If the graduations are not parallel, the measurement shall be made:

(a) along the line of relative movement between the graduations at the end of the indicator, or

(b) if the indicator is continuous, at the point of widest separation of the graduations.

(See also S.1.3.6.)

S.1.3. Indicators.

S.1.3.1. Symmetry. The index of an indicator shall be of the same shape as the graduations at least throughout that portion of its length associated with the graduations.

S.1.3.2. Length. The index of an indicator shall reach to the finest graduations with which it is used, unless the indicator and the graduations are in the same plane, in which case the distance between the end of the indicator and the ends of the graduations, measured along the line of the graduations, shall be not more than 0.04 inch.

S.1.3.3. Width. The width of the index of the indicator in relation to the series of graduations with which it is used shall be not greater than:

(a) the width of the widest graduation, and

(b) the width of the minimum clear interval between graduations.

When the index of an indicator extends along the entire length of a graduation, that portion of the index of the indicator that may be brought into coincidence with the graduation shall be of the same width throughout the length of the index that coincides with the graduation.

S.1.3.4. Clearance. The clearance between the index of an indicator and the graduations shall in no case be more than 0.06 inch.

S.1.3.5. Parallax. Parallax effects shall be reduced to the practicable minimum.

S.1.3.6. Travel of Indicator. If the most sensitive element of the primary indicating element utilizes an indicator and graduations, the relative movement of these parts corresponding to the smallest indicated value shall be no less than 0.20 inch.

S.1.4. Computing-Type Devices.

S.1.4.1. Printed Ticket. Any printed ticket issued by a device of the computing type on which there is printed the total computed price shall have printed clearly thereon also the total quantity of the delivery and the price per unit.

S.1.4.2. Money-Value Computations. Money-value computations shall be of the full-computing type in which the money value at a single unit price, or at each of a series of unit prices, shall be computed for every delivery within either the range of measurement of the device or the range of the computing elements, whichever is less.

The total price shall be computed on the basis of the quantity indicated when the value of the smallest division indicated is equal to or less than the value specified in S.1.1.3.

S.1.4.3. Money-Values, Mathematical Agreement. Any digital money-value indication and any recorded money value on a computing- type device shall be in mathematical agreement with its associated quantity indication or representation to within one cent of money value.

S.2. Design of Measuring Elements.

S.2.1. Vapor Elimination. A measuring system shall be equipped with an effective vapor eliminator or other effective means to prevent the measurement of vapor that will cause errors of the applicable tolerances.

S.2.2. Reverse Flow Measurement. Effective means, automatic in operation, shall be installed to prevent reverse flow measurement.

S.2.3. Maintenance of Liquid State. A device shall be so designed that the product being measured will remain in a liquid state during passage through the device.

S.2.4. Automatic Temperature or Density Compensation. A volumetric device shall be equipped with automatic means for adjusting the indication and registration of the measured quantity of the product to the quantity of the measurement in terms of pounds.

S.2.5. Provision for Sealing. Adequate provision shall be made for applying security seals in such a manner that no adjustment or interchange may be made of:

(a) any measurement element.

(b) any adjustable element for controlling delivery rate when such rate tends to affect the accuracy of deliveries, and

Any adjusting mechanism shall be readily accessible for purposes of affixing a security seal.

S.2.6. Mass Flow Meters. An automatic means to determine and correct for changes in product density shall be incorporated in any mass flow metering system that is affected by changes in the density of the product being measured.

S.3. Design of Discharge Lines and Discharge Line Valves.

S.3.1. Diversion of Measured Liquid. No means shall be provided by which any measured liquid can be diverted from the measuring chamber of the device or the discharge line therefrom, except that a manually controlled outlet that may be opened for purging or draining the measuring system shall be permitted. Effective means shall be provided to prevent the passage of liquid through any such outlet during normal operation of the device and to indicate clearly and unmistakably when the valve controls are so set as to permit passage of liquid through such outlet.

S.3.2. Discharge Hose. The discharge hose of a measuring system shall be of a wet hose type with a shutoff valve at its outlet end.

S.4. Marking Requirements.

S.4.1. Limitation of Use. If a measuring system is intended to measure accurately only liquids having particular properties, or to measure accurately only under specific installation or operating conditions, or to measure accurately only when used in conjunction with specific accessory equipment, these limitations shall be clearly and permanently marked on the device.

S.4.2. Discharge Rates. A meter shall be marked to show its designed maximum and minimum discharge rates. The marked minimum discharge rate shall not exceed 20 percent of the maximum discharge rate.

S.5. Level Condition. On-Board Weighing Systems. Provision shall be made for automatically inhibiting the delivery of liquid carbon dioxide when the vehicle is out of level beyond the limit required for the performance to be within the applicable tolerances.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. New section filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

2. Amendment deleting asterisks filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4029.2. N. Notes.

Note • History

N.1. Test Liquid. The test liquid shall be carbon dioxide in a compressed liquid state.

N.2. Vaporization and Volume Change. Care shall be exercised to reduce vaporization and volume changes to a minimum. When testing by weight, the weigh tank and transfer systems shall be precooled to liquid temperature prior to the start of the test to avoid the venting of vapor from the vessel being weighed.

N.3. Test Drafts.

N.3.1. Gravimetric Test. Weight test drafts shall be equal to at least the amount delivered by the device in two minutes at its maximum discharge rate.

N.3.2. Transfer Standard Test. When comparing a meter with a calibrated transfer standard, the test draft shall be equal to at least the amount delivered by the device in two minutes at its maximum discharge rate.

N.3.3. Volumetric Prover Test Drafts. Test drafts shall be equal to at least the amount delivered in one minute at normal discharge rate.

N.4. Testing Procedures.

N.4.1. Normal Tests. The “normal” test of a device shall be made at the maximum discharge flow rate developed under the conditions of installation. Any additional tests conducted at flow rates down to and including one-half of the sum of the maximum discharge flow rate and the rated minimum discharge flow rate shall be considered normal tests.

N.4.2. Special Tests. Any test except as set forth in N.4.1. shall be considered a special test. Tests shall be conducted, if possible, to evaluate any special elements or accessories attached to or associated with the device. A device shall be tested at a minimum discharge rate of:

(a) not less than the minimum rated capacity or 20 percent of the maximum rated discharge rate of the device, whichever is less, or

(b) the lowest discharge rate practicable under the conditions of installation.

“Special” tests may be conducted to develop any characteristic of the device anticipated under the conditions of installation as circumstances require.

N.4.3. Density. Temperature and pressure of the metered test liquid shall be measured during the test for the determination of density or volume correction when applicable. Table 1, contained in this Article, shall apply.

N.4.4. Automatic Temperature or Density Compensation. If a device is equipped with an automatic temperature or density compensator, the compensator shall be tested by comparing the quantity indicated or recorded by the device (with the compensator connected and operating) with the actual delivered quantity. Table 1, contained in this Article, shall apply.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. New section filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

2. Amendment deleting asterisks filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4029.4. T. Tolerances.

Note • History

T.1. Application.

T.1.1. To Underregistration and to Overregistration. The tolerances hereinafter prescribed shall be applied to errors of underregistration and errors of overregistration.

T.2. Tolerance Values.

T.2.1. On Normal Tests. The maintenance tolerance on “normal” tests shall be two and one-half percent (2-1/2%) of the indicated quantity. The acceptance tolerances shall be one and one-half percent (1-1/2%) of the indicated quantity.

T.2.2. On Special Tests. The maintenance and acceptance tolerance on “special” tests shall be two and one-half percent (2- 1/2%) of the indicated quantity.

T.3. On Tests Using Transfer Standards. To the basic tolerance values that would otherwise be applied, there shall be added an amount equal to two times the standard deviation of the applicable transfer standard when compared to a basic reference standard.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. New section filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

2. Amendment deleting asterisks filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4029.5. UR. User Requirements.

Note • History

UR.1. Installation Requirements.

UR.1.1. Discharge Rate. A device shall be so installed that the actual maximum discharge rate will not exceed the rated maximum discharge rate. If necessary, means for flow regulation shall be incorporated in the installation.

UR.1.2. Length of Discharge Hose. The discharge hose shall be of such a length and design as to keep vaporization of the liquid to a minimum.

UR.1.3. Maintenance of Liquid State. A device shall be so installed and operated that the product being measured shall remain in the liquid state during passage through the meter.

UR.2. Use Requirements.

UR.2.1 Return of Indicating and Recording Elements to Zero. The primary indicating elements (visual) and the primary recording elements shall be returned to zero immediately before each delivery.

UR.2.2. Condition of Discharge System. The discharge hose, up to the valve at the end of the discharge hose, shall be completely filled and precooled to liquid temperatures before a “zero” condition is established and prior to the start of a commercial delivery. Means shall be provided to fill the discharge hose with liquid prior to the start of a delivery.

UR.2.3. Vapor Equalization Line. A vapor equalization line shall not be used during a metered delivery unless the quantity of vapor displaced from the buyer's tank to the seller's tank is deducted from the metered quantity. Table 1, contained in this Article, shall apply.

UR2.4. Temperature or Density Compensation.

UR2.4.1. Use of Automatic Temperature or Density Compensators. Devices equipped with an automatic temperature or density compensator shall have the compensator connected, operable, and in use at all times. Such automatic temperature or density compensator may not be removed.

UR.2.4.2. Tickets or Invoices. Any written invoice or printed ticket based on a reading of a device that is equipped with an automatic temperature or density compensator shall have shown thereon that the quantity delivered has been temperature or density compensated.

UR.2.5. Ticket in Printing Device. A ticket shall not be inserted into a device equipped with a ticket printer until immediately before a delivery is begun, and in no case shall a ticket be in the device when the vehicle is in motion while on a public street, highway, or thoroughfare.

UR.2.6. Sale by Weight. All quantity determinations shall be made by means of an approved and sealed weighing or measuring device. All sales shall be stated in pounds.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. New section filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

2. Amendment deleting asterisks filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

§4029.6. Definitions of Terms.

Note • History

The terms defined here have a special and technical meaning when used in the Code for Carbon Dioxide Liquid-Measuring Devices.

automatic temperature or density compensation. The use of integrated or ancillary equipment to obtain, from the output of a volumetric meter, an equivalent mass indication.

carbon dioxide liquid-measuring device. A system including a mechanism or machine of (a) the meter or mass-flow type, or (b) a weighing type of device mounted on a vehicle designed to measure and deliver liquid carbon dioxide. Means may be provided to indicate automatically, for one of a series of unit prices, the total money value of the quantity measured.

large-delivery devices. Devices used primary for single deliveries greater than 1,000 pounds or 500 kilograms.

mass flow meter. A device that measures the mass of a product flowing through the system. The mass measurement may be determined directly from the effects of mass on the sensing unit or may be inferred by measuring the properties of the product, such as the volume, density, temperature, or pressure, and displaying the quantity in mass units.

small delivery device. Any device other than a large-delivery device.

transfer standard. A measurement system designed for use in proving and testing carbon dioxide liquid-measuring devices.

vapor equalization credit. The quantity deducted from the metered quantity of liquid carbon dioxide when a vapor equalizing line is used to facilitate the transfer of liquid during a metered delivery.

vapor equalization line. A hose or pipe connected from the vapor space of the seller's tank to the vapor space of the buyer's tank that is used to equalize the pressure during a delivery.

wet-hose type. A type of device in which it is intended that the discharge hose be completely filled prior to each commercial delivery.

TABLE 1

Temp Pressure Liquid Density Vapor Density Vap Dis

Deg F PSIA PSIG lb/gal (lb-oz)/gal lb/cu ft lb/gal %

-30.00 177.89 163.19 9.127 9 - 2.0 1.989 0.266 2.9

-29.75 178.75 164.05 9.122 9 - 2.0 1.999 0.267 2.9

-29.50 179.62 164.92 9.117 9 - 1.9 2.008 0.268 2.9

-29.25 180.49 165.79 9.113 9 - 1.8 2.018 0.270 3.0

-29.00 181.36 166.67 9.108 9 - 1.7 2.028 0.271 3.0

-28.75 182.24 167.54 9.103 9 - 1.7 2.038 0.272 3.0

-28.50 183.12 168.42 9.098 9 - 1.6 2.048 0.274 3.0

-28.25 184.00 169.31 9.094 9 - 1.5 2.058 0.275 3.0

-28.00 184.89 170.19 9.089 9 - 1.4 2.067 0.276 3.0

-27.75 185.78 171.08 9.084 9 - 1.3 2.077 0.278 3.1

-27.50 186.67 171.98 9.080 9 - 1.3 2.087 0.279 3.1

-27.25 187.57 172.87 9.075 9 - 1.2 2.098 0.280 3.1

-27.00 188.47 173.77 9.070 9 - 1.1 2.108 0.282 3.1

-26.75 189.37 174.67 9.065 9 - 1.0 2.118 0.283 3.1

-26.50 190.28 175.58 9.061 9 - 1.0 2.128 0.284 3.1

-26.25 191.18 176.49 9.056 9 - 0.9 2.138 0.286 3.2

-26.00 192.10 177.40 9.051 9 - 0.8 2.148 0.287 3.2

-25.75 193.01 178.32 9.046 9 - 0.7 2.159 0.289 3.2

-25.50 193.93 179.23 9.041 9 - 0.7 2.169 0.290 3.2

-25.25 194.85 180.16 9.037 9 - 0.6 2.179 0.291 3.2

-25.00 195.78 181.08 9.032 9 - 0.5 2.190 0.293 3.2

-24.75 196.70 182.01 9.027 9 - 0.4 2.200 0.294 3.3

-24.50 197.64 182.94 9.022 9 - 0.4 2.211 0.296 3.3

-24.25 198.57 183.87 9.017 9 - 0.3 2.221 0.297 3.3

-24.00 199.51 184.81 9.013 9 - 0.2 2.232 0.298 3.3

-23.25 200.45 185.75 9.008 9 - 0.1 2.243 0.300 3.3

-23.50 201.39 186.70 9.003 9 - 0.0 2.253 0.301 3.3

-23.25 202.34 187.64 8.998 9 - 0.0 2.264 0.303 3.4

-23.00 203.29 188.60 8.993 8 - 15.9 2.275 0.304 3.4

-22.75 204.25 189.55 8.989 8 - 15.8 2.286 0.306 3.4

-22.50 205.20 190.51 8.984 8 - 15.7 2.296 0.307 3.4

-22.25 206.16 191.47 8.979 8 - 15.7 2.307 0.308 3.4

-22.00 207.13 192.43 8.974 8 - 15.6 2.318 0.310 3.5

-21.75 208.09 193.40 8.969 8 - 15.5 2.329 0.311 3.5

-21.50 209.06 194.37 8.964 8 - 15.4 2.340 0.313 3.5

-21.25 210.04 195.34 8.959 8 - 15.4 2.351 0.314 3.5

-21.00 211.02 196.32 8.955 8 - 15.3 2.362 0.316 3.5

-20.75 212.00 197.30 8.950 8 - 15.2 2.374 0.317 3.5

-20.50 212.98 198.28 8.945 8 - 15.1 2.385 0.319 3.6

-20.25 213.97 199.27 8.940 8 - 15.0 2.396 0.320 3.6

-20.00 214.96 200.26 8.935 8 - 15.0 2.407 0.322 3.6

-19.75 215.95 201.26 8.930 8 - 14.9 2.419 0.323 3.6

-19.50 216.95 202.25 8.925 8 - 14.8 2.430 0.325 3.6

-19.25 217.95 203.25 8.920 8 - 14.7 2.441 0.326 3.7

-19.00 218.95 204.26 8.915 8 - 14.6 2.453 0.328 3.7

-18.75 219.96 205.27 8.911 8 - 14.6 2.464 0.329 3.7

-18.50 220.97 206.28 8.906 8 - 14.5 2.476 0.331 3.7

-18.25 221.99 207.29 8.901 8 - 14.4 2.488 0.333 3.7

-18.00 223.01 208.31 8.896 8 - 14.3 2.499 0.334 3.8

-17.75 224.03 209.33 8.891 8 - 14.3 2.511 0.336 3.8

-17.50 225.05 210.36 8.886 8 - 14.2 2.523 0.337 3.8

-17.25 226.08 211.38 8.881 8 - 14.1 2.534 0.339 3.8

-17.00 227.11 212.42 8.876 8 - 14.0 2.546 0.340 3.8

-16.75 228.15 213.45 8.871 8 - 13.9 2.558 0.342 3.9

-16.50 229.18 214.49 8.866 8 - 13.9 2.570 0.344 3.9

-16.25 230.23 215.53 8.861 8 - 13.8 2.582 0.345 3.9

-16.00 231.27 216.58 8.856 8 - 13.7 2.594 0.347 3.9

-15.75 232.32 217.62 8.851 8 - 13.6 2.606 0.348 3.9

-15.50 233.37 218.68 8.846 8 - 13.5 2.618 0.350 4.0

-15.25 234.43 219.73 8.841 8 - 13.5 2.630 0.352 4.0

-15.00 235.49 220.79 8.836 8 - 13.4 2.643 0.353 4.0

-14.75 236.55 221.86 8.831 8 - 13.3 2.655 0.355 4.0

-14.50 237.62 222.92 8.826 8 - 13.2 2.667 0.357 4.0

-14.25 238.69 223.99 8.821 8 - 13.1 2.680 0.358 4.1

Temp Pressure Liquid Density Vapor Density Vap Dis

Deg F PSIA PSIG lb/gal (lb-oz)/gal lb/cu ft lb/gal %

-14.00 239.76 225.07 8.816 8 - 13.1 2.692 0.360 4.1

-13.75 240.84 226.14 8.811 8 - 13.0 2.704 0.362 4.1

-13.50 241.92 227.22 8.806 8 - 12.9 2.717 0.363 4.1

-13.25 243.00 228.31 8.801 8 - 12.8 2.729 0.365 4.1

-13.00 244.09 229.39 8.796 8 - 12.7 2.742 0.367 4.2

-12.75 245.18 230.49 8.791 8 - 12.7 2.755 0.368 4.2

-12.50 246.28 231.58 8.786 8 - 12.6 2.767 0.370 4.2

-12.25 247.37 232.68 8.781 8 - 12.5 2.780 0.372 4.2

-12.00 248.48 233.78 8.776 8 - 12.4 2.793 0.373 4.3

-11.75 249.58 234.89 8.771 8 - 12.3 2.806 0.375 4.3

-11.50 250.69 236.00 8.765 8 - 12.2 2.819 0.377 4.3

-11.25 251.80 237.11 8.760 8 - 12.2 2.832 0.379 4.3

-11.00 252.92 238.22 8.755 8 - 12.1 2.845 0.380 4.3

-10.75 254.04 239.34 8.750 8 - 12.0 2.858 0.382 4.4

-10.50 255.16 240.47 8.745 8 - 11.9 2.871 0.384 4.4

-10.25 256.29 241.60 8.740 8 - 11.8 2.884 0.386 4.4

-10.00 257.42 242.73 8.735 8 - 11.8 2.897 0.387 4.4

- 9.75 258.56 243.86 8.730 8 - 11.7 2.911 0.389 4.5

- 9.50 259.70 245.00 8.725 8 - 11.6 2.924 0.391 4.5

- 9.25 260.84 246.14 8.719 8 - 11.5 2.937 0.393 4.5

- 9.00 261.98 247.29 8.714 8 - 11.4 2.951 0.394 4.5

- 8.75 263.13 248.44 8.709 8 - 11.3 2.964 0.396 4.5

- 8.50 264.29 249.59 8.704 8 - 11.3 2.978 0.398 4.6

- 8.25 265.44 250.75 8.699 8 - 11.2 2.991 0.400 4.6

- 8.00 266.60 251.91 8.694 8 - 11.1 3.005 0.402 4.6

- 7.75 267.77 253.07 8.688 8 - 11.0 3.019 0.404 4.6

- 7.50 268.93 254.24 8.683 8 - 10.9 3.032 0.405 4.7

- 7.25 270.11 255.41 8.678 8 - 10.8 3.046 0.407 4.7

- 7.00 271.28 256.59 8.673 8 - 10.8 3.060 0.409 4.7

- 6.75 272.46 257.76 8.668 8 - 10.7 3.074 0.411 4.7

- 6.50 273.64 258.95 8.662 8 - 10.6 3.088 0.413 4.8

- 6.25 274.83 260.13 8.657 8 - 10.5 3.102 0.415 4.8

- 6.00 276.02 261.32 8.652 8 - 10.4 3.116 0.417 4.8

- 5.75 277.21 262.52 8.647 8 - 10.3 3.130 0.418 4.8

- 5.50 278.41 263.72 8.641 8 - 10.3 3.144 0.420 4.9

- 5.25 279.61 264.92 8.636 8 - 10.2 3.159 0.422 4.9

- 5.00 280.82 266.12 8.631 8 - 10.1 3.173 0.424 4.9

- 4.75 282.03 267.33 8.626 8 - 10.0 3.187 0.426 4.9

- 4.50 283.24 268.55 8.620 8 - 9.9 3.202 0.428 5.0

- 4.25 284.46 269.76 8.615 8 - 9.8 3.216 0.430 5.0

- 4.00 285.68 270.98 8.610 8 - 9.8 3.231 0.432 5.0

- 3.75 286.90 272.21 8.604 8 - 9.7 3.245 0.434 5.0

- 3.50 288.13 273.44 8.599 8 - 9.6 3.260 0.436 5.1

- 3.25 289.37 274.67 8.594 8 - 9.5 3.275 0.438 5.1

- 3.00 290.60 275.91 8.589 8 - 9.4 3.289 0.440 5.1

- 2.75 291.84 277.15 8.583 8 - 9.3 3.304 0.442 5.1

- 2.50 293.09 278.39 8.578 8 - 9.2 3.319 0.444 5.2

- 2.25 294.33 279.64 8.573 8 - 9.2 3.334 0.446 5.2

- 2.00 295.58 280.89 8.567 8 - 9.1 3.349 0.448 5.2

- 1.75 296.84 282.14 8.562 8 - 9.0 3.364 0.450 5.3

- 1.50 298.10 283.40 8.556 8 - 8.9 3.379 0.452 5.3

- 1.25 299.36 284.67 8.551 8 - 8.8 3.395 0.454 5.3

- 1.00 300.63 285.93 8.546 8 - 8.7 3.410 0.456 5.3

- 0.75 301.90 287.21 8.540 8 - 8.6 3.425 0.458 5.4

- 0.50 303.18 288.48 8.535 8 - 8.6 3.440 0.460 5.4

- 0.25 304.46 289.76 8.530 8 - 8.5 3.456 0.462 5.4

0.00 305.74 291.74 8.524 8 - 8.4 3.471 0.464 5.4

0.25 307.03 292.33 8.519 8 - 8.3 3.487 0.466 5.5

0.50 308.32 293.62 8.513 8 - 8.2 3.503 0.468 5.5

0.75 309.61 294.92 8.508 8 - 8.1 3.518 0.470 5.5

1.00 310.91 296.21 8.502 8 - 8.0 3.534 0.472 5.6

1.25 312.21 297.52 8.497 8 - 8.0 3.550 0.475 5.6

1.50 313.52 298.82 8.491 8 - 7.9 3.566 0.477 5.6

1.75 314.83 300.13 8.486 8 - 7.8 3.582 0.479 5.6

Temp Pressure Liquid Density Vapor Density Vap Dis

Deg F PSIA PSIG lb/gal (lb-oz)/gal lb/cu ft lb/gal %

2.00 316.15 301.45 8.480 8 - 7.7 3.598 0.481 5.7

2.25 317.46 302.77 8.475 8 - 7.6 3.614 0.483 5.7

2.50 318.79 304.09 8.469 8 - 7.5 3.630 0.485 5.7

2.75 320.11 305.42 8.464 8 - 7.4 3.646 0.487 5.8

3.00 321.45 306.75 8.458 8 - 7.3 3.662 0.490 5.8

3.25 322.78 308.08 8.453 8 - 7.2 3.679 0.492 5.8

3.50 324.12 309.42 8.447 8 - 7.2 3.695 0.494 5.8

3.75 325.46 310.77 8.442 8 - 7.1 3.712 0.496 5.9

4.00 326.81 312.11 8.436 8 - 7.0 3.728 0.498 5.9

4.25 328.16 313.46 8.431 8 - 6.9 3.745 0.501 5.9

4.50 329.52 314.82 8.425 8 - 6.8 3.761 0.503 6.0

4.75 330.88 316.18 8.420 8 - 6.7 3.778 0.505 6.0

5.00 332.24 317.54 8.414 8 - 6.6 3.795 0.507 6.0

5.25 333.61 318.91 8.408 8 - 6.5 3.812 0.510 6.1

5.50 334.98 320.28 8.403 8 - 6.4 3.829 0.512 6.1

5.75 336.35 321.66 8.397 8 - 6.4 3.846 0.514 6.1

6.00 337.73 323.04 8.392 8 - 6.3 3.863 0.516 6.2

6.25 339.12 324.42 8.386 8 - 6.2 3.880 0.519 6.2

6.50 340.51 325.81 8.380 8 - 6.1 3.897 0.521 6.2

6.75 341.90 327.20 8.375 8 - 6.0 3.915 0.523 6.2

7.00 343.30 328.60 8.369 8 - 5.9 3.932 0.526 6.3

7.25 344.70 330.00 8.363 8 - 5.8 3.949 0.528 6.3

7.50 346.10 331.41 8.358 8 - 5.7 3.967 0.530 6.3

7.75 347.51 332.82 8.352 8 - 5.6 3.984 0.533 6.4

8.00 348.92 334.23 8.346 8 - 5.5 4.002 0.535 6.4

8.25 350.34 335.65 8.341 8 - 5.4 4.020 0.537 6.4

8.50 351.76 337.07 8.335 8 - 5.4 4.038 0.540 6.5

8.75 353.19 338.49 8.329 8 - 5.3 4.055 0.542 6.5

9.00 354.62 339.92 8.323 8 - 5.2 4.073 0.545 6.5

9.25 356.06 341.36 8.318 8 - 5.1 4.091 0.547 6.6

9.50 357.49 342.80 8.312 8 - 5.0 4.110 0.549 6.6

9.75 358.94 344.24 8.306 8 - 4.9 4.128 0.552 6.6

10.00 360.38 345.69 8.300 8 - 4.8 4.146 0.554 6.7

10.25 361.84 347.14 8.295 8 - 4.7 4.164 0.557 6.7

10.50 363.29 348.60 8.289 8 - 4.6 4.183 0.559 6.7

10.75 364.75 350.06 8.283 8 - 4.5 4.201 0.562 6.8

11.00 366.22 351.52 8.277 8 - 4.4 4.220 0.564 6.8

11.25 367.68 352.99 8.271 8 - 4.3 4.238 0.567 6.8

11.50 369.16 354.46 8.266 8 - 4.2 4.257 0.569 6.9

11.75 370.64 355.94 8.260 8 - 4.2 4.276 0.572 6.9

12.00 372.12 357.42 8.254 8 - 4.1 4.295 0.574 7.0

12.25 373.60 358.91 8.248 8 - 4.0 4.314 0.577 7.0

12.50 375.09 360.40 8.242 8 - 3.9 4.333 0.579 7.0

12.75 376.59 361.89 8.236 8 - 3.8 4.352 0.582 7.1

13.00 378.09 363.39 8.230 8 - 3.7 4.371 0.584 7.1

13.25 379.59 364.89 8.224 8 - 3.6 4.390 0.587 7.1

13.50 381.10 366.40 8.219 8 - 3.5 4.410 0.589 7.2

13.75 382.61 367.91 8.213 8 - 3.4 4.429 0.592 7.2

14.00 384.13 369.43 8.207 8 - 3.3 4.449 0.595 7.2

14.25 385.65 370.95 8.201 8 - 3.2 4.468 0.597 7.3

14.50 387.17 372.48 8.195 8 - 3.1 4.488 0.600 7.3

14.75 388.70 374.01 8.189 8 - 3.0 4.508 0.603 7.4

15.00 390.24 375.54 8.183 8 - 2.9 4.527 0.605 7.4

15.25 391.78 377.08 8.177 8 - 2.8 4.547 0.608 7.4

15.50 393.32 378.62 8.171 8 - 2.7 4.567 0.611 7.5

15.75 394.87 380.17 8.165 8 - 2.6 4.587 0.613 7.5

16.00 396.42 381.72 8.159 8 - 2.5 4.608 0.616 7.5

16.25 397.98 383.28 8.153 8 - 2.4 4.628 0.619 7.6

16.50 399.54 384.84 8.147 8 - 2.3 4.648 0.621 7.6

16.75 401.10 386.41 8.141 8 - 2.2 4.669 0.624 7.7

17.00 402.67 387.98 8.134 8 - 2.2 4.689 0.627 7.7

17.25 404.25 389.55 8.128 8 - 2.1 4.710 0.630 7.7

17.50 405.82 391.13 8.122 8 - 2.0 4.731 0.632 7.8

17.75 407.41 392.71 8.116 8 - 1.9 4.751 0.635 7.8

Temp Pressure Liquid Density Vapor Density Vap Dis

Deg F PSIA PSIG lb/gal (lb-oz)/gal lb/cu ft lb/gal %

18.00 409.00 394.30 8.110 8 - 1.8 4.772 0.638 7.9

18.25 410.59 395.89 8.104 8 - 1.7 4.793 0.641 7.9

18.50 412.19 397.49 8.098 8 - 1.6 4.814 0.644 7.9

18.75 413.79 399.09 8.092 8 - 1.5 4.835 0.646 8.0

19.00 415.39 400.70 8.085 8 - 1.4 4.857 0.649 8.0

19.25 417.00 402.31 8.079 8 - 1.3 4.878 0.652 8.1

19.50 418.62 403.92 8.073 8 - 1.2 4.900 0.655 8.1

19.75 420.24 405.54 8.067 8 - 1.1 4.921 0.658 8.2

20.00 421.86 407.17 8.061 8 - 1.0 4.943 0.661 8.2

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. New section and table filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

2. Amendment deleting asterisks filed 11-1-94; operative 12-1-94 (Register 94, No. 44).

Chapter 2. Special Equipment

Article 1. Compressed Gas in Cylinders

§4050. Application.

Note • History

This code applies to refillable cylinders used for dispensing industrial, domestic and medicinal gases. Compressed gas shall include liquefied as well as non-liquefied gases. The requirements are not in lieu of those of other codes under which a cylinder was constructed, but may be in addition thereto. The code does not apply to cylinders filled for and in the presence of a customer.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Section 12107, Business and Professions Code.

HISTORY

1. New Subchapter 2 (Article 1, Sections 4050-4053) filed 4-21-82; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 82, No. 17).

§4051. Cylinder Labeling.

Note

(a) Tare Weight. Cylinders used for the sale of gases by weight or that are filled by weight which in turn is converted to volume shall meet the following conditions:

(1) Cylinders shall have the tare weight legibly stamped on the cylinder.

(2) All tare weight values required in this article shall be preceded with the letters “T.W.” or the words “Tare Weight.”

(3) The tare weight shall include the weight of the cylinder, the valve and other permanent attachments. The weight of the protective cap shall not be included in either the tare weight or the gross weight.

(b) Actual Tare Weight. When acetylene cylinders are filled but are not acetoned to the stenciled tare weight, the actual tare weight must be shown on the tag with the net contents statement.

(c) Net Contents. The net contents must be expressed in terms of cubic feet, or pounds and ounces, or units of the metric system.

(d) Identity. The identity of the product must be shown.

(e) Name and Address. The name, address and zip code of the responsible company must be shown on cylinder.

(f) Liquefied Petroleum Gas Cylinder Contents. Cylinders or bottles which are prefilled with liquefied petroleum gas prior to sale, shall be labeled with the weight of the contents.

NOTE

Authority cited: Sections 12027, 12107 and 12609, Business and Professions Code. Reference: Sections 12107 and 12609, Business and Professions Code.

§4052. Notes.

Note • History

N.1. The specific volume of acetylene gas at one atmosphere and at the temperature of 70oF shall be 14.7 cubic feet per pound.

N.2. Verification of net quantity statements for cylinders of argon, helium, hydrogen, nitrogen and oxygen shall be in accordance with the Tables of Industrial Gas Container Contents and Density for Oxygen, Argon, Nitrogen, Helium and Hydrogen listed on National Bureau of Standards Technical Note issued in June 1985 and incorporated herein by reference.

N.3. Allowable Difference. If the stamped or stenciled tare is used to determine the net contents of the cylinder, the allowable difference between the actual tare weight and the stamped (or stenciled) tare weight, or the tare weight on a tag attached to the cylinder, for a new or used cylinder shall be:

(1) 1/2 percent for tare weights of 20 lb. or less or

(2) 1/4 percent for tare weights of more than 20 lb.

Average Requirements. When used to determine the net contents of cylinders, the stamped or stenciled tare weights of cylinders at a single place of business found to be in error predominately in a direction favorable to the seller and near the allowable difference limit shall be considered to not be in conformance with these requirements.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Sections 12100 and 12107, Business and Professions Code.

HISTORY

1. Amendment filed 3-3-87; effective upon filing pursuant to Government Code section 11346.2(d) (Register 87, No. 11).

2. New subsections N.3-N.3(2) filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

§4053. Definitions.

Note

(a) Cubic Foot. A standard cubic foot of gas which at a temperature of 70oF and a pressure of 14.696 pounds per square inch absolute occupies one cubic foot.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Sections 12100 and 12107, Business and Professions Code.

Article 2. Procedures for Type Approval Certification Evaluation and Field Compliance Testing of Vapor Recovery Systems

§4054. A. Application.

Note • History

A.1. Vapor recovery systems.

This code applies to Stage II vapor recovery systems designed to control motor vehicle fuel vapors which result from fueling operations pursuant to Sections 41954, 41956, and 41956.1 of the Health and Safety Code. This code establishes regulations to govern some design characteristics of those systems and their operation to ensure liquid recirculation is prevented.

A.1.1. Balance system.

The balance vapor recovery system utilizes fuel delivery nozzles with a bellows and face plate designed to make an “intended tight seal” with the vehicle fill pipe opening. Liquid filling a fuel tank displaces the existing vapor space creating a positive pressure in the tank. That higher pressure achieves equilibrium with the supply tank's vapor pressure through the vapor return line making the system “balanced”.

A.1.2. Assist system.

Assist vapor recovery systems may utilize more than one type of fuel delivery nozzle. One has a bellows and face plate designed to make a “non-intended tight seal” with the vehicle fill pipe opening. Another has no bellows, uses a coaxial metal fill spout with perforations in the outer tube to remove vapors, and allows visual observation of the fill pipe opening. These systems employ a mechanism to create vacuum which “evacuates” displaced vehicle fuel tank vapors by a negative pressure in the vapor return line.

A.2. Responsibility of Director and manufacturer.

A.2.1. Director.

As specified in subsection A.1., a system submitted for type approval certification shall be evaluated by the Director applying the procedures established in this article plus any additional tests he determines necessary to assure compliance of the system with the specifications and performance requirements contained herein.

A.2.2. Manufacturer.

Prior to type approval certification testing, the applicant shall submit information to the Director pertaining to the design of the system, including schematics, blueprints, instruction manuals, brochures, components, and all other information necessary for preliminary review. If defects are found in the design, manufacture, service, repair, or any other characteristic of the system, the Director may permit the applicant to modify and resubmit the system for further review. After successful completion of preliminary review, the applicant shall be authorized to install its system of a specified number of components in a prescribed location for use in the type approval certification testing.

A.3. Procedure.

The Secretary shall, in cooperation with the county sealer of weights and measures for the designated location, observe and examine the system in operation normally within 30 to 90 days. One or more examinations shall be conducted during the prescribed test period to determine compliance with Sections 4054.1 and 4054.2 which relate to specifications, performance, and accuracy. If, during or at the conclusion of any examination, the system fails to maintain reliability and accuracy within the tolerances specified in the submission for type approval certification, the Secretary shall so advise the applicant and may refuse further testing unless the defects are corrected. However, type approval certification shall not be issued until the applicant, following successful Division of Measurement Standards field tests, submits a report of evaluation by an independent testing laboratory as specified in Section 4054.2, N.6.

A.5. General code application.

The general code requirements for weighing and measuring devices as specified in Section 4001 shall also apply.

NOTE

Authority cited: Sections 12107 and 12500.5, Business and Professions Code; and Sections 41956(a) and 41956(c), Health and Safety Code. Reference: Sections 12107 and 12500.5, Business and Professions Code; and Sections 41956(a) and 41956(c), Health and Safety Code.

HISTORY

1. New article 2 (sections 4054, 4054.1-4054.3 and 4055) filed 1-6-83; effective upon filing (Register 83, No. 2).

2. Amendment of article 2 (heading only) filed 12-27-84; designated effective 1-1-85 pursuant to Government Code section 11346.2(d) (Register 84, No. 52).

3. Repealer and new article heading and section filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

4. Editorial correction of printing errors in subsections A.1, A1.1 and A.2.2 (Register 92, No. 34).

5. Repealer of subsection A.3., and renumbering and amendment of subsection A.4 to A.3 filed 5-7-97; operative 6-6-97 (Register 97, No. 19).

§4054.1. S. Specifications.

Note • History

S.1. Systems Components.

Systems governed by this article utilizing motor vehicle fuel nozzles shall contain in each nozzle adequate and automatic means to prevent measured liquid from either recirculating (entering the vapor return line) or overflowing a vehicle fill pipe opening.

S.1.1. Nozzles.

(a) All nozzle types shall have a primary shut-off device which automatically activates when liquid covers the nozzle primary shut-off sensing mechanism.

(b) Balance type nozzles shall have a secondary shut-off device or other effective means to prevent liquid recirculation. Secondary shut-off devices shall automatically activate after liquid has entered the vapor return line because the primary shut-off device has failed. (Typically, secondary shut-off devices are pressure-activated and shut off when liquid in the vapor return line blocks the return of vapors).

(c) Assist type nozzles may have a secondary shut-off device or else some other effective means to avoid liquid overflowing a vehicle fuel tank because the primary shut-off device has failed. “Other effective means” include, but are not limited to, permitting liquid to be seen either by observing the fill pipe opening or hearing and seeing liquid overflow spillage.

S.2. Field compliance test unit.

S.2.1. Use.

The field compliance test unit shall be used to examine the proper operation of:

(a) primary shut-off devices,

(b) secondary shut-off devices, and

S.2.2. Design.

S.2.2.1. Tank.

The test unit shall be a rigid metal vessel 13-inches high and 9-inches in diameter with a liquid capacity of 3 gallons (all measurements approximate). A commercial-sized, 30 pound Freon recharging tank is typically used.

S.2.2.2. Base support/stand.

The test unit may be supported either:

(a) on a metal base 3/16-inch thick, 6-inches wide, and 17-1/2 inches long (all measurements approximate) or,

(b) by a stand which elevates the test unit to accommodate a bottom-inserted 3/4 inch ball valve for emptying purposes.

S.2.2.3. Fuel fill pipe.

The test unit shall have a metal fuel fill pipe welded to the tank at a 45 degree angle from horizontal. Placement of the fill pipe is critical. It shall enter the test unit at the middle of the curvature between the top and sides of the vessel so that a specified ullage (vapor space) is created. The fill pipe shall have no internal vent, shall be 2-1/4-inch outside diameter and 10 inches long (both measurements approximate), and shall extend inside the tank no more than 1/4 inch. A longitudinal part of the fill pipe near its fill opening shall be cut away in order to observe that the nozzle primary shut-off device sensing mechanism is immersed in liquid. The cut-away is approximately 5 inches long to a depth of 1/2 the pipe's diameter. The fill pipe shall have transparent flexible tubing slipped over its entire length. The fill opening shall be modified to accommodate nozzle spouts at least 15/16 inch outside diameter (leaded fuel). The test unit shall be airtight when the fill pipe opening is sealed.

S.2.2.4. Other equipment.

A rigid, transparent plastic tube approximately 12 inches long and 3-7/8 inches inside diameter shall be installed around the fill pipe to contain liquid overflow. A 5/16-inch valve with an outlet to attach a hose shall be installed at the top center of the vessel for obtaining pressure readings. Handles for carrying and emptying the test unit may be attached. All metal parts of the test unit shall be electrically bonded together. Refer to the test unit illustrations in Figure 1.

S.3. Assist system inches of H2O column vacuum.

Assist vapor recovery systems with booted nozzle spouts that can form a closed seal around the vehicle filler neck shall be designed to operate at not more than -10 inches H2O column vacuum as measured at the nozzle or test unit during a delivery typical of customer usage.

NOTE

HISTORY

1. Amendment of subsection S.1. filed 2-22-88; operative 3-23-88 (Register 88, No. 10).

2. Repealer and new section filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

3. Editorial correction of printing error in subsection S.2.2.3 and addition of “S” to 2.2.4 subsection heading (Register 92, No. 34).

4. Amendment of subsection S.3. filed 5-7-97; operative 6-6-97 (Register 97, No. 19).

§4054.2. N. Notes--Type Approval Certification Evaluation.

Note • History

N.1. System installation.

A minimum of 6 nozzles shall be installed in a test location for evaluation purposes. Hoses shall be selected to anticipate maximum customer usage and efficient observer interaction. The test nozzles shall not fail to operate as designed for the duration of the evaluation.

N.2. Dispenser measurement accuracy.

Prior to the field examination of a vapor recovery system, the dispenser meters for the test nozzles shall be tested and adjusted, if necessary, to be within maintenance tolerance.

N.3. Performance accuracy - primary and secondary shut-off devices.

N.3.1. Test method.

Examination of the test nozzles shall be performed with a field compliance test unit as specified in subsection S.2.

Note: Two or more test units will expedite the examination significantly.

N.3.1.1. Test procedure - primary shut-off device.

N.3.1.1.1. Initial test.

Dispense fuel into the test unit with each nozzle. All nozzles shall shut off automatically at any delivery flow rate as the test unit becomes full as specified in subsection S.1.1.(a).

N.3.1.1.2. Override test.

Make 10 additional consecutive override attempts duplicating a range of customer usage and record the new indicated gallons. All 10 attempts shall result in automatic nozzle shut off before the dispenser volume indicator increases more than the 1/10 gallon limit as specified in subsection T.1.1. The 10 override attempts shall be performed on a minimum of 6 nozzles, each tested a minimum of 3 times during this examination.

N.3.1.2. Test procedures - secondary shut-off device (if equipped).

Introduce sufficient fuel into the vapor return line (approximately 1/10 gallon or 375 milliliter) to block the return of vapors through the line. Hold in place a “U-shaped” configuration of the fuel discharge hose at a level lower than the nozzle to concentrate the liquid. Make a minimum of 10 attempts to dispense fuel into an empty test unit. Record the dispenser indicator gallons before and after each attempt. (Balance-type nozzles must make their intended tight seal at the fill pipe opening.) The nozzle shall shut off automatically before the dispenser volume indicator increases more than the 3/10 gallon limit for each attempt as specified in subsection T.1.2. This procedure shall be performed on a minimum of 6 nozzles.

Notes: (1) The test unit must be empty initially to insure liquid does NOT interact with the primary shut-off device sensing mechanism. (2) For some hose configurations, introducing additional fuel into the vapor return line during the test procedure may be necessary. Introduced liquid can be returned to storage by building vapor line pressure produced by this procedure.

N.4. Delivery accuracy - 150 vehicle test.

N.4.1. Test method.

Compliance with delivery accuracy requirements shall be based upon data recorded for at least 150 vehicles while observing customers fueling (self-serve) with the test nozzles under normal field conditions.

N.4.2. Test procedure.

Install a transparent trap, or other suitable means, between each nozzle and dispenser outlet connection for the hose. Any liquid entering a vapor return line will be collected while observing the fueling operations. Then after each fueling, the liquid shall be drained into the trap, removed, and measured. Trap placement and observer actions shall produce the least possible interference with normal operations at the test location.

The liquid collected from both one individual delivery and the total of all individual deliveries shall not exceed the tolerances as specified in subsections T.3.(a) and T.3.(b), respectively.

The 150 or more vehicles shall be representative of California vehicles, including various sizes of passenger vehicles, vans, and trucks. This examination shall include varied fuel delivery rates and nozzle orientations plus complete and partial fills. The system may be retested if the Director by his own initiative, or at the request of the applicant, determines the test was not representative of field conditions.

N.5. Performance accuracy - assist system evaporation and volume change.

N.5.1. Test method.

An appropriate means (manometer, column gauge, etc.) shall be used to determine the inches of H2O column vacuum for nozzles where the spout is booted and can form a closed seal around the vehicle filler neck. Excessive vacuum may result in artificial evaporation of customer fuel which would decrease the measured volume and also cause possible implosion of vehicle fuel tanks.

N.5.2. Test procedure.

Install the vacuum indicator at the nozzle or test unit. Record the value of the reading while the system is operating in a normal manner to determine if it is functioning within the -10 inches H2O column vacuum limit as specified in subsection T.2.

N.6. Independent laboratory evaluation.

Pursuant to Section 41958 of the Health and Safety Code, type approval certification regarding recirculation shall include evaluations by Underwriters Laboratories (U.L.) or a similar independent laboratory selected by the Secretary. Reports required by other State agencies may be used to determine compliance with this section. The laboratory evaluation shall determine but is not limited to, proper secondary shut-off device operation for nozzles where the spout is booted and can form a closed seal around the vehicle filler neck with the primary shut-off device inoperable.

NOTE

HISTORY

1. Amendment of subsection N.1.2 and new subsection N.1.2 filed 2-22-88; operative 3-23-88 (Register 88, No. 10).

2. Repealer and new section filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

3. Editorial correction of printing error in subsections N.3.1 and N.4.1 (Register 92, No. 34).

4. Amendment of subsections N.1., N.5.1 and N.6 filed 5-7-97; operative 6-6-97 (Register 97, No. 19).

§4054.3. T. Tolerances.

Note • History

T.1. Performance accuracy - primary and secondary shut-off devices.

T.1.1. Primary shut-off device overrides.

The required, additional attempts, in total, to override any nozzle primary shut-off device shall not increase the dispenser volume indication by more than 1/10 gallon.

T.1.2. Secondary shut-off device.

With the vapor return line blocked by fuel (simulating recirculation due to primary shut-off device failure), each attempt to dispense fuel shall result in automatic nozzle shut off before the dispenser volume indication increases more than 3/10 gallon.

T.2. Assist system inches of H2O column vacuum.

Assist vapor recovery systems shall operate at the inches of H2O column vacuum recommended by the manufacturer, but shall not exceed -10 inches of H2O column vacuum for nozzles where the spout is booted and can form a closed seal around the vehicle filler neck.

T.3. Delivery accuracy - 150 vehicle test.

The quantity of measured liquid collected in the vapor return line/lines shall not exceed both:

(a) 0.2 percent of any one individual vehicle fuel delivery, and

(b) 0.02 percent of the sum of the fuel deliveries to all vehicles observed (150 or more) during the delivery accuracy tests.

NOTE

HISTORY

1. Repealer and new section filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

2. Amendment of subsection T.2. filed 5-7-97; operative 6-6-97 (Register 97, No. 19).

§4055. N. Notes-Field Compliance Testing.

Note • History

N.1. Test methods - primary and secondary shut-off devices.

Examination of primary and secondary shut-off devices to determine the acceptability of an individual nozzle shall be performed using motor vehicles with fuel tanks and fill pipes representative of California vehicles and/or a field compliance test unit as specified in subsection S.2.

N.2. Test procedure - primary and secondary shut-off devices.

N.2.1 Initial test - primary shut-off device.

Dispense fuel into the fill pipe opening of a vehicle fuel tank or test unit in accordance with the instructions for the vapor recovery device, if any, and common public usage. The nozzle shall shut off automatically when the nozzle primary shut-off sensing mechanism is covered by the liquid. Automatic nozzle shut off shall occur with the dispenser operating at discharge rates both greater than and equal to the minimum rate allowed by the slowest hold-open clip setting, if any, or 3 gallons per minute, whichever is less.

N.2.2. Override test - primary shut-off device.

After the initial primary shut-off device activates, dispense enough additional fuel into the test unit to immerse the nozzle primary shut-off sensing mechanism in liquid. Record the dispenser indicator gallons. Make 6 additional, consecutive override attempts duplicating a full range of potential customer usage and record the new indicated gallons. All 6 attempts shall result in automatic nozzle shut off before the dispenser volume indicator increases more than the 1/10 gallon limit as specified in subsection T.1.1.

Note: A test unit must be used for this procedure so the primary shut-off device sensing mechanism can be seen immersed in liquid.

N.2.3. Secondary shut-off device (if equipped).

Introduce sufficient fuel into the vapor return line (approximately 1/10 gallon or 375 milliliter) to block the return of vapors through the line. Hold in place a “U-shaped” configuration of the fuel discharge hose at a level lower than the nozzle to concentrate the liquid. Make one or more attempts to dispense fuel into an empty test unit or vehicle fuel tank that is within 3 gallons of being full, including the fill pipe. (Balance-type nozzles must make their intended tight seal at the fill pipe opening.) The nozzles shall shut off automatically before the dispenser volume indicator increases more than the 3/10 gallon limit for each attempt as specified in subsection T.1.2.

N.3. Assist systems.

To test assist systems for proper operation at the specified inches of H2O column vacuum, refer to Section 4054.2, N.5.

NOTE

Authority cited: Sections 12107 and 12500.5, Business and Professions Code; and Sections 41956(a), and 41956(c), Health and Safety Code. Reference: Sections 12107 and 12500.5, Business and Professions Code; and Sections 41956(a) and 41956(c), Health and Safety Code.

HISTORY

1. Amendment of subsection N.1.1.1.3 and new subsection N.1.1.1.3.1 filed 2-22-88; operative 3-23-88 (Register 88, No. 10).

2. Repealer and new section filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

3. Editorial correction of printing error in subsection N.1 (Register 92, No. 34).

4. Change without regulatory effect amending N.2.1. filed 2-24-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 8).

Chapter 3. Device Inspection

Article 1. Frequency of Inspection

§4070. Frequency of Inspection.

Note • History

The frequency of inspection for weighing and measuring devices used for commercial and law enforcement purposes is established as in Table 1. The specified times are maximum times between tests. More frequent tests may be conducted if requested by the device user, in a complaint investigation or on the initiative of a weights and measures official. The definitions of specific device classifications are as in Subchapter 1.

NOTE

Authority cited: Sections 12027 and 12212, Business and Professions Code. Reference: Section 12212, Business and Professions Code.

HISTORY

1. New Subchapter 3 (Articles 1-2, Sections 4070-4074) filed 4-21-82; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 82, No. 17).

2. Amendment of Table 1 filed 12-27-84; designated effective 1-1-85 pursuant to Government Code Section 11346.2(d) (Register 84, No. 52).

Article 2. Alternatives to Specified Frequency of Inspection

§4071. Purpose of Article.

Note • History

This article authorizes county sealers or directors of weights and measures, upon approval of the Director, to use plans for inspection of weighing and measuring devices other than those stated in Article 1 of this chapter. A portion of the sealer's resources will thus be made available for other weights and measures enforcement work which the Director finds to be necessary.

Upon granting such approval, the Director will instruct the sealer or director to perform such alternative work.

NOTE

Authority cited: Sections 12027 and 12212, Business and Professions Code. Reference: Section 12212, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section filed 2-24-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 8).

§4072. Findings.

Note

The Director finds (1) that the minimum frequency of inspection required by Article 1 should be modified in some counties because of evidence of satisfactory and continuing accuracy of certain weighing and measuring devices; (2) there is an increasing need to perform additional end result type inspections; and (3) that the performance of other enforcement work will assist the sealer in providing to consumers and commerce the services and protection required to be provided by the Business and Professions Code.

NOTE

Authority cited: Sections 12027 and 12212, Business and Professions Code. Reference: Section 12212, Business and Professions Code.

§4073. Approval of County Plans.

Note

County plans will be approved in writing by the Director upon request and compliance with adequate requirements.

NOTE

Authority cited: Sections 12027 and 12212, Business and Professions Code. Reference: Section 12212, Business and Professions Code.

§4074. Instructions to Sealers.

Note

(a) Frequency of Inspection. The county sealer or director of each county desiring to participate in this program shall prepare a plan of inspection for devices and submit it to the Director for approval. The plan shall provide that all commercial devices shall be tested either on a regular frequency, a variable frequency, or on the basis of a statistical sampling procedure. The sealer shall initiate variable frequency or statistical sampling plans upon approval of the Director and submit to the Director such reports as he may require concerning the operation of the plan and the level of consumer protection provided. The Director may withdraw his approval and require modification or termination of the plan when he determines it is necessary for the purpose of this chapter.

(b) Alternative Programs.

(1) The additional resources made available to the sealers shall be used in the following weights and measures programs:

(A) Consumer commodities and package inspection.

(B) Accuracy of retail delivery of weighed, measured and counted commodities.

(2) Unless otherwise designated by the Director, the sealer shall apportion the resources used in such alternative programs in his discretion to best accomplish the purpose of this chapter.

NOTE

Authority cited: Sections 12027 and 12212, Business and Professions Code. Reference: Section 12212, Business and Professions Code.

Article 3. Annual Device Administrative Fee

§4075.

Note • History

The annual administrative fee for every commercial weighing, measuring, and counting device registered in California to be collected by each county office of weights and measures for the recovery of the Department's cost associated with providing supervision and oversight of county sealers performing the duties described in Business and Professions Code Sections 12210 shall be collected as follows:

(a) Each county office of weights and measures shall collect for the Department an administrative fee as specified in the Table A for every commercial device registered within their county.

(b) The administrative fee shall be collected by each county at the same time as the location and device registration fee by the county office of weights and measures from those businesses registering commercial devices in that county.

(c) The administrative fee shall be paid to the Department of Food and Agriculture Fund for every commercial device registered in the county beginning January 1, 2012 and annually thereafter. The administrative fee shall be paid to the Department for device registration fees collected between January 1, 2012 and March 31, 2012, no later than April 30, 2012; fees collected between April 1, 2012 and June 30, 2012, no later than July 31, 2012; fees collected between July 1, 2012 and September 30, 2012, no later than October 31, 2012; fees collected between October 1, 2012 and December 31, 2012, no later than January 31, 2013. Thereafter fees collected between January 1 and June 30 shall be paid to the Department no later than July 31 of the same year and for device registration fees collected between July 1 and December 31 no later than January 31 of the following year.

(d) The administrative fee shall be accompanied by a letter of remittance, on county letterhead, that indicates the number of commercial devices in each device fee registration category, the total administrative fee paid for each category, the registration period, and the grand total administrative fee paid to the Department.

(e) County offices of weights and measures may retain the administrative fees collected from those business locations subject to the maximum annual registration fee set forth in Subsection (n) of Section 12240 of the Business and Professions Code and may retain up to 15% of all other administrative fees collected in accordance with this section.

Table A

NOTE

Authority cited: Sections 12027, 12107 and 122411, Business and Professions Code. Reference: Sections 12107 and 12241, Business and Professions Code.

HISTORY

1. New article 3 (section 4075) and section filed 3-6-2012; operative 3-6-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 10).

Chapter 4. Registration of Service Agencies for Commercial Weighing and Measuring Devices

§4080. Application.

Note • History

This chapter applies to any person performing duties as a service agency or service agent.

NOTE

Authority cited: Section 12027, Business and Professions Code. Reference: Section 12531, Business and Professions Code.

HISTORY

1. New Subchapter 4 (Sections 4080-4084) filed 4-21-82; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 82, No. 17).

2. Repealer of former chapter 4 (sections 4080-4085) and section and new chapter 4 (sections 4080-4088) and section filed 10-23-2000; operative 10-23-2000 pursuant to Government Code section 11343.4(d) (Register 2000, No. 43).

§4081. Registration of Service Agencies and Service Agents Required.

Note • History

(a) Each service agency shall forward to the Department, with the appropriate registration fee (Business and Professions Code Section 12535), the name and license number of a service agent within 30 days of hiring by the service agency.

(b) The registration of a service agent shall expire upon termination of employment with the service agency.

NOTE

Authority cited: Section 12027, Business and Professions Code. Reference: Sections 12531 and 12532, Business and Professions Code.

HISTORY

1. Editorial correction of NOTE filed 5-19-82 (Register 82, No. 21).

2. Amendment of subsection (b) filed 5-7-93; operative 6-7-93 (Register 93, No. 19).

3. Change without regulatory effect amending opening statement filed 2-24-94 pursuant to title 1, section 100, California Code of Regulations (Register 94, No. 8).

4. Repealer and new section filed 10-23-2000; operative 10-23-2000 pursuant to Government Code section 11343.4(d) (Register 2000, No. 43).

§4082. Fees.

Note • History

(a) Any fee not paid when due, or sent by mail and postmarked five days or more after the due date, is overdue.

(b) To any fee that is overdue and paid within 30 days of the due date, a penalty equal to 30 percent of the amount of the original fee shall be added.

(c) To any fee paid more than 30 days after the due date, a penalty equal to 50 percent of the amount of the original fee shall be added.

NOTE

Authority cited: Section 12027, Business and Professions Code. Reference: Section 12535, Business and Professions Code.

HISTORY

1. Editorial correction filed 5-19-82 (Register 82, No. 21).

2. Repealer of subsection (c) filed 2-7-90; operative 3-9-90 (Register 90, No. 7).

3. Repealer and new section filed 10-23-2000; operative 10-23-2000 pursuant to Government Code section 11343.4(d) (Register 2000, No. 43).

§4083. Examinations/Licenses.

Note • History

(a) License Application: Applicants for a service agent license must provide their name, address, and proof of identity by means of a picture identification. At the time of the examination, applicants shall pay an examination fee of $35. Applicants renewing an existing license shall also provide the current license number.

(b) Examination Procedure: Written examinations will be administered by a county weights and measures office or the Division of Measurement Standards. The examination shall be administered according to instructions issued by the Division of Measurements Standards “Administration of Service Agent Examination” (Est. 8/00), which is incorporated by reference. Applicants will be advised of the results on the day of the examination. The proctor and applicant shall certify under penalty of perjury that the examination was given in accordance with the procedures specified.

(c) Qualification for a License: An applicant must receive a minimum score of 70 percent to qualify for a service agent license. Successful applicants will be provided with a service agent license at that time. Except as provided for in subsection (g), such license shall be valid for a period of five years from date of issue.

(d) Retention and Notification: Examination information will be retained in the county or state office where administered for a period of five years. County offices will provide to the Division of Measurement Standards within 30 days the names of individuals to whom service agent licenses have been issued.

(e) Failure and Reexamination: Applicants failing to receive a passing score may schedule an appointment to be reexamined. The fee specified in subsection (a) shall be paid each time the examination is taken. Reexaminations are subject to all the above conditions.

(f) Replacement License: A lost or mutilated license may only be replaced by the Division of Measurement Standards. Before a replacement license is issued, the licensee must provide a written request including the following information: the name as it appeared on the original license, the licensee's signature and current address, and a fee of $10. If a licensee satisfies these requirements, a replacement license will be issued.

(g) License Renewal: To maintain a service agent license, applicants may take the examination on or up to 90 days before the expiration date of their current license. Successful applicants will receive a five year extension of the license period.

NOTE

Authority cited: Section 12027, Business and Professions Code. Reference: Section 12540, Business and Professions Code.

HISTORY

1. New section filed 3-3-87; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 87, No. 11). For history of former Section 4083, see Registers 86, No. 1 and 82, No. 21.

2. Repealer and new section filed 10-23-2000; operative 10-23-2000 pursuant to Government Code section 11343.4(d) (Register 2000, No. 43).

3. Amendment filed 11-23-2005; operative 12-23-2005 (Register 2005, No. 47).

§4084. Authority for Service Agency to Place a Device into Service.

Note • History

Pursuant to Business and Professions Code Sections 12509 and 12532(d), a service agency may perform any of the following:

(a) place a correct device into service,

(b) remove an “out-of-order” notice to perform the service, and must replace the notice if the device can not be corrected, or

NOTE

Authority cited: Sections 12027, 12532(b) and 12509, Business and Professions Code. Reference: Sections 12531 and 12532, Business and Professions Code.

HISTORY

1. Repealer and new section filed 10-23-2000; operative 10-23-2000 pursuant to Government Code section 11343.4(d) (Register 2000, No. 43).

§4085. Responsibility of a Service Agency.

Note • History

(a) Each service agency shall be responsible for compliance with the following:

(1) Repairing or Placing Devices into Service. -- Each service agency shall place into service, upon installation or following repair, a device in such a manner that it meets all the requirements of Division 5 of the California Business and Professions Code and all the requirements of the California Code of Regulations, Title 4, Division 9. Weighing or measuring devices which are not “correct”, as defined by Section 12500(c) of the Business and Professions Code, shall not be placed into service.

(2) Notice to County Sealer of Repairing or Placing of Device into Service by Service Agency. -- Each service agency shall notify the county sealer of the repairing or placing in service of any device. The notice shall be in writing, and transmitted to the county sealer within the 24-hour period following the repair, except as provided by Business and Professions Code Section 12515(b).

The notification shall include the following minimum identifying information;

(i) Name and address of service agency.

(ii) Location of device(s). Name and address, including if available the unique identifier used by the business (e.g., pump or checkstand number).

(iii) Name of service agent.

(iv) Date of adjustment, repair, placing, or replacing into service.

(v) Name of device manufacturer(s).

(vi) Model designation(s) and serial number(s) of the device(s).

(vii) On new installations, the National Institute of Standards and Technology or National Conference on Weights and Measures Certificate of Conformance number(s) for each separately approved component or device, if marked on the component or device.

(3) Security Seal. -- Service agents shall replace a security seal on any adjustment mechanism where the seal was required to be removed for service, repair, or installation. Before placing a device into service, service agents shall install a security seal on any adjustment mechanism designed to be sealed.

(4) Identification of Service Agency Work. -- Service agents shall identify their work on each device by applying an adhesive tag or label in a conspicuous location on the device. The adhesive tag or label shall show the name, registration number and business telephone number of the service agency, the license number of the service agent performing the work, and the date. Any security seal required pursuant to Section 12107 of the California Business and Professions Code shall show the registration number of the service agency and the year the security seal was placed on the device.

(5) Certificate of Accuracy of Standards. -- A service agency shall, on request from a sealer, show a copy of the certification of accuracy for the standards used to place a device into service.

NOTE

Authority cited: Sections 12027 and 12107, Business and Professions Code. Reference: Sections 12515(a), 12531, 12532(h) and 12533, Business and Professions Code.

HISTORY

1. New section filed 3-13-89; operative 4-12-89 (Register 89, No. 12).

2. Repealer and new section filed 10-23-2000; operative 10-23-2000 pursuant to Government Code section 11343.4(d) (Register 2000, No. 43).

§4086. Certification of Service Agency Standards.

Note • History

Each service agency shall have its standards certified at the service agency's expense. Standards shall be tested and certified by either the Department or other metrology laboratories traceable to the National Institute of Standards and Technology (NIST). These laboratories include those in county weights and measures programs, industry, and other states that have been approved, certified, or accredited by NIST, or the Department in accordance with criteria established by NIST, or by other appropriate national or international accrediting organizations. The standards shall be certified as often as the Department deems necessary, based upon a review of supporting statistical data resulting from previous certifications, but in no event shall the period of time between certifications exceed 10 years. In the absence of supporting statistical data, standards shall be certified at least every two years.

NOTE

Authority cited: Sections 12027 and 12314, Business and Professions Code. Reference: Sections 12531(e), 12533(a)(1) 12533(a)(2) and 12534, Business and Professions Code.

HISTORY

1. New section filed 10-23-2000; operative 10-23-2000 pursuant to Government Code section 11343.4(d) (Register 2000, No. 43).

§4087. Payments to Counties.

Note • History

Payment to counties shall be subject to the following conditions:

(a) Each county shall report annually, before November 1, expenditures for the prior fiscal year, which shall be the period from July 1 through June 30.

(b) The county report, which shall be subject to audit, shall be submitted on form number 40-008A “County Annual Report” (Rev. 8/00), which is incorporated by reference.

(d) Payment for each fiscal year shall be based on the registration fees received for the same fiscal year.

(e) Payments to counties, based on expenditures which occurred during the previous fiscal year, will be made on or about January 31 of each year.

NOTE

Authority cited: Sections 12027 and 12537, Business and Professions Code. Reference: Sections 12209(c) and 12537, Business and Professions Code.

HISTORY

1. New section filed 10-23-2000; operative 10-23-2000 pursuant to Government Code section 11343.4(d) (Register 2000, No. 43).

§4088. Advisory Committee.

Note • History

(a) Members of the Committee shall receive no compensation, but are entitled to payment of necessary traveling expenses in accordance with State Administrative Manual Section 0774 (Rev. 9/91) and the rules of the Department of Personnel Administration.

(b) The Committee shall be advisory to the Department and may make recommendations on all matters pertaining to service agencies and/or service agents.

(d) The Committee shall meet at the call of the chairman or the Department, or at the request of any four members of the Committee. The Committee shall meet at least once a year.

(e) A quorum shall consist of five members. A vote of the majority of the members present at a meeting at which there is a quorum shall constitute an act of the Committee.

NOTE

Authority cited: Sections 12027 and 12541(a), Business and Professions Code; and Section 19815.4(d), Government Code. Reference: Section 12541(a)(d), Business and Professions Code.

HISTORY

1. New section filed 10-23-2000; operative 10-23-2000 pursuant to Government Code section 11343.4(d) (Register 2000, No. 43).

Chapter 5. Billing for Utility Services

§4090. Billing for Utility Service.

Note • History

Application.--This section applies to operators who provide utility service(s) to customers through commercial weighing or measuring devices.

Definition.--Utility service, for the purpose of this section, means gas, water and electric service or any combination thereof.

Invoices.--The operator of a utility service system shall provide each customer with an invoice for each billing period. The invoice shall clearly and separately show the following for each of the utility services provided:

(a) The opening and closing meter readings and the dates of those readings.

(b) The identification of all rates and quantities attributable to each block in the applicable rate structure.

Records.--The operator of a metered utility service system shall retain records of all pertinent rate schedules, and individual customer billings for a period of at least 12 months. Such records shall be made available at reasonable times for inspection and copying by the customer and county sealer.

NOTE

Authority cited: Section 12027, Business and Professions Code. Reference: Sections12024, 12024.1 and 12024.2, Business and Professions Code.

HISTORY

1. New subchapter 5 (section 4090) filed 4-21-82; effective upon filing pursuant to Government Code section 11346.2(d) (Register 82, No. 17).

2. Amendment filed 12-31-85; designated effective 1-1-86 pursuant to Government Code section 11346.2(d) (Register 86, No. 1).

3. Amendment of subsections (a), (b), and (c) filed 8-1-91; operative 9-2-91 (Register 92, No. 9).

4. Amendment of chapter 5 heading and repealer and new section filed 5-7-97; operative 6-6-97 (Register 97, No. 19).

Chapter 6. Automotive Products Specifications

Article 1. Brake Fluid Standards

§4100. Specifications.

Note • History

Brake fluid shall conform to the current specifications of the National Highway Traffic Safety Administration, United States Department of Transportation.

NOTE

Authority cited: Sections 12027 and 13710(c), Business and Professions Code. Reference: Section 13710(c), Business and Professions Code.

HISTORY

1. New Chapter 9 (Subchapters 6-8, Sections 4100-4308, not consecutive) filed 1-8-82; effective thirtieth day thereafter (Register 82, No. 2). For history of former Chapter 9, see Register 77, No. 10.

2. Editorial correction of NOTE filed 6-19-85; effective thirtieth day thereafter (Register 85, No. 25).

Article 2. Brake Fluid Labeling

§4110. Official Sample. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027, 12609, Business and Professions Code. Reference: Sections 13811, 13820 and 13821, Business and Professions Code.

HISTORY

1. Repealer filed 11-19-85; effective thirtieth day thereafter (Register 85, No. 47).

§4111. Change of Formula or Brand Designation. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027, 12609 and 13820, Business and Professions Code. Reference: Section 13811, Business and Professions Code.

HISTORY

1. Repealer filed 11-19-85; effective thirtieth day thereafter (Register 85, No. 47).

§4112. Container Labeling.

Note • History

In addition to the requirements of Section 13711(d), Business and Professions Code, the label of each container of brake fluid shall bear the brand name in letters not less than one-eighth inch (3.18 mm) in height.

Numerals used in connection with the brand name or merits of the product shall not exceed the actual dry equilibrium reflux boiling point of the product. Nothing in this section prohibits the use of any numeral or combination thereof in such a manner that it cannot reasonably be confused with the dry equilibrium reflux boiling point of the product.

NOTE

Authority cited: Sections 12027, 12609 and 13710(c), Business and Professions Code. Reference: Sections 12602 and 13711(d), Business and Professions Code.

HISTORY

1. New section filed 4-30-82; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 82, No. 21).

2. Editorial correction including Article 2 heading filed 6-19-85; effective thirtieth day thereafter (Register 85, No. 25).

Article 3. Automatic Transmission Fluid Standards [Repealed]

HISTORY

1. Repealer of article 3 (sections 4120-4126) filed 8-18-87; operative 9-17-87 (Register 87, No. 34).

Article 4. Automatic Transmission Fluid Registration [Repealed]

HISTORY

1. Repealer of Article 4 (Sections 4130 and 4131) filed 11-19-85; effective thirtieth day thereafter (Register 85, No. 47).

Article 5. Engine Fuel Standards

§4140. Definitions Used in Title 4, Division 9, Chapters 6 and 7.

Note • History

(a) “Biodiesel” means a fuel comprised of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated B100, and meeting the specifications set forth by the ASTM International in the latest version of Standard Specification for Biodiesel Fuel Blend Stock (B100) for Middle Distillate Fuels D6751 contained in the ASTM publication entitled: Annual Book of ASTM Standards, Section 5.

(b) “Diesel fuel” means a light middle or middle distillate fuel which may be blended up to 5. volume percent biodiesel, and meeting the specifications set forth by the ASTM International in the latest version of Standard Specification for Diesel Fuel Oils D975 contained in the ASTM publication entitled: Annual Book of ASTM Standards, Section 5.

(d) “Non-ester renewable diesel” means a diesel fuel registered as a motor vehicle fuel or fuel additive under 40 CFR Part 79, as amended by Pub. L. 91-604, produced from nonpetroleum renewable resources that is not a mono-alkyl ester.

(e) “Non-ester renewable diesel blend” means non-ester renewable diesel blended with petroleum-based diesel fuel.

(f) “Biomass-based diesel” means a renewable diesel fuel that meets the definition of either biodiesel or non-ester renewable diesel

NOTE

Authority cited: Sections 12027, 13440 and 13450, Business and Professions Code. Reference: Sections 13401, 13440, 13441, 13450 and 13451, Business and Professions Code.

HISTORY

1. New section filed 4-30-82; effective upon filing pursuant to Government Code section 11346.2(d) (Register 82, No. 21).

2. Amendment of article heading, section heading and text filed 10-5-89; operative 11-4-89 (Register 89, No. 41).

3. Amendment filed 7-28-92; operative 7-28-92 (Register 92, No. 31).

4. Amendment of article 5 heading filed 10-12-2001 as an emergency; operative 10-12-2001 (Register 2001, No. 41). A Certificate of Compliance must be transmitted to OAL by 2-11-2002 or emergency language will be repealed by operation of law on the following day.

5. Reinstatement of article 5 heading as it existed prior to 10-12-2001 emergency amendment by operation of Government Code section 11346.1(f) (Register 2002, No. 33).

6. Amendment of article 5 heading filed 8-15-2002; operative 9-14-2002 (Register 2002, No. 33).

7. Amendment filed 4-22-2004; operative 5-22-2004 (Register 2004, No. 17).

8. New final paragraph filed 9-9-2005 as an emergency; operative 9-9-2005 (Register 2005, No. 37). A Certificate of Compliance must be transmitted to OAL by 1-10-2006 or emergency language will be repealed by operation of law on the following day.

9. Reinstatement of section as it existed prior to 9-9-2005 emergency amendment pursuant to Government Code section 11346.1(f) (Register 2006, No. 35).

10. Renumbering of former section 4140 to section 4141 and new section 4140 filed 1-24-2011; operative 2-23-2011 (Register 2011, No. 4).

11. Editorial correction of History 10 (Register 2011, No. 6).

§4141. Specifications--Automotive Spark Ignition Engine Fuel.

Note • History

Automotive spark ignition engine fuel specifications shall conform to the latest standards set forth in the ASTM International D 4814 with the following exception:

Vapor pressure specifications shall not be more than the maximum specified by any California state law. When the maximum Reid Vapor Pressure specification for automotive spark-ignition engine fuel is below that established by D 4814, the Vapor Pressure/Distillation Class AA specification for distillation temperatures may be applied in the manufacture of automotive spark-ignition engine fuel.

NOTE

Authority cited: Sections 12027 and 13440, Business and Professions Code. Reference: Sections 13401(m), 13440 and 13441, Business and Professions Code.

HISTORY

1. Repealer and new section filed 11-7-86; effective thirtieth day thereafter (Register 86, No. 45). For prior history, see Register 82, No. 2.

2. Renumbering of former section 4141 to section 4142 and renumbering and amendment of section 4140 to section 4141 filed 1-24-2011; operative 2-23-2011 (Register 2011, No. 4).

3. Editorial correction of History 2 (Register 2011, No. 6).

§4142. Specifications--Kerosene.

Note • History

Kerosene shall meet the specifications set forth by the ASTM International in the latest version of Standard Specification for Kerosene D-3699 contained in the ASTM publication entitled: Annual Book of ASTM Standards, Section 5, Volume 05:03.

NOTE

Authority cited: Sections 12027, 12609 and 13450, Business and Professions Code. Reference: Sections 13401(c) and 13450, Business and Professions Code.

HISTORY

1. Repealer and new section filed 11-7-86; effective thirtieth day thereafter (Register 86, No. 45). for prior history, see Register 82, No. 2.

2. Renumbering of former section 4142 to section 4143 and renumbering and amendment of section 4141 to section 4142 filed 1-24-2011; operative 2-23-2011 (Register 2011, No. 4).

3. Editorial correction of History 2 (Register 2011, No. 6).

§4143. Specifications--Fuel Oil.

Note • History

Fuel oil shall meet the specifications set forth by the ASTM International in the latest version of Standard Specification for Fuel Oils D-396 contained in the ASTM publication entitled: Annual Book of ASTM Standards, Section 5, Volume 05:01, except the sulfur content shall not exceed the maximum specified by any California state law.

NOTE

Authority cited: Sections 12027 and 13450, Business and Professions Code. Reference: Sections 13401(l) and 13450, Business and Professions Code.

HISTORY

1. Repealer and new section filed 11-7-86; effective thirtieth day thereafter (Register 86, No. 45). For prior history, see Register 82, No. 2.

2. Change without regulatory effect amending section and Note filed 2-28-2006 pursuant to section 100, title 1, California Code of Regulations (Register 2006, No. 9).

3. Renumbering of former section 4143 to section 4144 and renumbering and amendment of section 4142 to section 4143 filed 1-24-2011; operative 2-23-2011 (Register 2011, No. 4).

4. Editorial correction of History 3 (Register 2011, No. 6).

§4144. Specifications--Diesel Fuel.

Note • History

Diesel fuel shall meet the specifications set forth by the ASTM International in the latest version of Standard Specification for Diesel Fuel Oils D-975 contained in the ASTM publication entitled: Annual Book of ASTM Standards, Section 5, Volume 05:01, except the sulfur content shall not exceed the maximum specified by any California state law. This standard is available from the ASTM International office at 100 Barr Harbor Drive, P.O. Box C700, West Conshohocken, Pennsylvania 19428-2959; or by calling (610) 832-9585 or by accessing the internet at: http://www.astm.org website.

NOTE

Authority cited: Sections 12027 and 13450, Business and Professions Code. Reference: Sections 13401(j), 13450 and 13451, Business and Professions Code.

HISTORY

1. New section filed 10-12-2001 as an emergency; operative 10-12-2001 (Register 2001, No. 41). A Certificate of Compliance must be transmitted to OAL by 2-11-2002 or emergency language will be repealed by operation of law on the following day.

2. Repealed by operation of Government Code section 11346.1(g) (Register 2002, No. 33).

3. New section filed 8-15-2002; operative 9-14-2002 (Register 2002, No. 33).

4. Renumbering of former section 4144 to section 4145 and renumbering of section 4143 to section 4144 filed 1-24-2011; operative 2-23-2011 (Register 2011, No. 4).

5. Editorial correction of History 4 (Register 2011, No. 6).

§4145. Specifications--Developmental Fuels.

Note • History

(a) Sales of developmental engine fuels authorized by the Department are not subject to restrictions imposed upon the sale of non-conforming fuel products as set forth in Business and Professions Code Sections 13441, 13442 and 13451, but the Department's authorization does not create a variance or waiver from any other applicable California statute or regulation.

(b) An applicant for authorization to sell developmental engine fuel must submit the following information to the Department:

(1) a statement of the potential benefit of the fuel to the people of California; and

(2) a description of test conditions associated with the use of the fuel, including control and monitoring practices, and the method of distribution and storage.

(1) The authorization is limited to a period of two years, with an automatic renewal for an additional two years in the absence of action to revoke the authorization by the Department. and,

(2) Damages caused by sale, delivery, storage, handling and usage of the fuel shall be addressed in accordance with contractual provisions negotiated and agreed upon by the authorization holder and the user; and,

(3) The authorization holder shall report information to the Department as required to monitor the use of the fuel during the process of developing a generally recognized chemical and performance standard through a recognized consensus organization or standards writing organization, such as ASTM International or SAE International. The Department shall specify the reporting requirements on a case by case basis at the time the authorization is granted.

(4) Any device used for the sale or distribution of a developmental engine fuel must comply with the Business and Professions Code Section §12500(e).

(d) The Department may take action to revoke the authorization at any time. Revocation of the authorization is effective and final upon receipt of written notification by the authorization holder. The Department may take action to revoke the authorization if the Department finds:

(1) the authorization holder has violated any of the terms and conditions of the authorization; or,

(2) the authorization holder has abandoned efforts to develop a generally recognized chemical and performance standard for the fuel through a recognized consensus organization or standards writing organization.

(3) there is a high probability of equipment harm with the continued use of the developmental fuel or to protect the public safety.

(e) The authorization shall cease to exist upon publication of a generally recognized chemical and performance standard for the fuel.

NOTE

Authority cited: Sections 12027 and 13405, Business and Professions Code. Reference: Sections 13401, 13440-13443 and 13450-13451, Business and Professions Code.

HISTORY

1. New section filed 4-22-2004; operative 5-22-2004 (Register 2004, No. 17).

2. Renumbering of former section 4145 to section 4146 and renumbering and amendment of section 4144 to section 4145 filed 1-24-2011; operative 2-23-2011 (Register 2011, No. 4).

3. Editorial correction of History 2 (Register 2011, No. 6).

§4146. Specifications--E85 Fuel Ethanol.

Note • History

E85 Fuel Ethanol shall meet the specifications set forth by ASTM International in the latest version of “Standard Specification for Fuel Ethanol (Ed75-Ed85) for Automotive Spark-Ignition Engines D 5798”, contained in the ASTM publication entitled: Annual Book of ASTM Standards, Section 5.

NOTE

Authority cited: Sections 12027 and 13440, Business and Professions Code. Reference: Sections 13401(m), 13440 and 13441, Business and Professions Code.

HISTORY

1. New section filed 4-22-2004; operative 5-22-2004 (Register 2004, No. 17).

2. Renumbering of former section 4146 to section 4147 and renumbering of section 4145 to section 4146, including amendment of section heading and section, filed 1-24-2011; operative 2-23-2011 (Register 2011, No. 4).

3. Editorial correction of History 2 (Register 2011, No. 6).

§4147. Specifications--M85 Fuel Methanol.

Note • History

M85 Fuel Methanol shall meet the specifications set forth by ASTM International in the latest version of “Standard Specification for Fuel Methanol (M70-M85) for Automotive Spark-Ignition Engines D 5797”, contained in the ASTM publication entitled: Annual Book of ASTM Standards, Section 5.

NOTE

Authority cited: Sections 12027 and 13440, Business and Professions Code. Reference: Sections 13401(m), 13440 and 13441, Business and Professions Code.

HISTORY

1. New section filed 7-19-2004; operative 8-18-2004 (Register 2004, No. 30).

2. Repealer of former section 4147 and renumbering of former section 4146 to section 4147, including amendment of section heading and section, filed 1-24-2011; operative 2-23-2011 (Register 2011, No. 4).

3. Editorial correction of History 2 (Register 2011, No. 6).

§4148. Specifications--Biodiesel Blends.

Note • History

Biodiesel Fuel Blends shall meet the following specifications:

(a) Biodiesel blends with a concentration of 5. volume percent biodiesel or less shall meet the specification set forth by ASTM International in the latest version of the “Standard Specification for Diesel Fuel Oils” D975, publication entitled: Annual Book of ASTM Standards, Section 5.

(b) Biodiesel blends with a concentration from 6. to 20. volume percent biodiesel shall meet the specifications set forth by ASTM International in the latest version of the “Standard Specification for Diesel Fuel Oil, Biodiesel Blend (B6 to B20)” D7467, contained in the ASTM publication entitled: Annual Book of ASTM Standards, Section 5.

(c) Any finished biodiesel fuel blend greater than 20. volume percent biodiesel shall meet the specifications set forth by ASTM International in the latest version of the specifications set forth for biodiesel blends greater than 20. volume percent biodiesel.

(1) Absent an ASTM International specification, the CDFA shall establish specifications pursuant to Business and Professions Code, Division 5, Chapter 14, Section 13450 using the data determined upon completion of the California Energy Commission Interagency Agreement, wherein the CDFA will perform test methods and standards development for biodiesel blends greater than 20 volume percent.

(2) These interim standards will remain in place until such time as a recognized consensus organization or standards writing organization, such as ASTM International or SAE International, adopts specifications for biodiesel blends greater than 20. volume percent.

(3) Biodiesel blends greater than 20. volume percent may only be sold under a developmental engine fuel variance obtained pursuant to Section 4145 of this article. Any variance granted will expire at such time as the CDFA adopts specifications for biodiesel blends greater than 20. volume percent biodiesel.

NOTE

Authority cited: Sections 12027 and 13450, Business and Professions Code. Reference: Sections 13401(j) and 13450, Business and Professions Code.

HISTORY

1. New section filed 7-19-2004; operative 8-18-2004 (Register 2004, No. 30).

2. Repealer and new section 4148 filed 1-24-2011; operative 2-23-2011 (Register 2011, No. 4).

3. Editorial correction of History 2 (Register 2011, No. 6).

§4149. Specifications--Non-Ester Renewable Diesel Blends.

Note • History

Non-ester Renewable Diesel Blends shall meet the specifications set forth by the ASTM International in the latest version of Standard Specification for Diesel Fuel Oils D975 contained in the ASTM publication entitled: Annual Book of ASTM Standards, Section 5.

NOTE

Authority cited: Sections 12027 and 13450, Business and Professions Code. Reference: Sections 13401(j) and 13450, Business and Professions Code.

HISTORY

1. New section 4148 filed 1-24-2011; operative 2-23-2011 (Register 2011, No. 4).

2. Editorial correction of History 1 (Register 2011, No. 6).

Article 6. Engine Oil Labeling and Exemptions

§4150. Labeling.

Note • History

In addition to the requirements of Section 13482, Business and Professions Code, the label of each container of motor oil products shall contain the SAE/API Service Classification in letters not less than one-eighth inch (3.18 mm) in height.

NOTE

Authority cited: Sections 12027 and 12609, Business and Professions Code. Reference: Section 13482, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending section and Note filed 1-26-93 pursuant to title 1, section 100, California Code of Regulations (Register 93, No. 5).

2. New article 6 heading filed 2-25-94; operative 3-28-94. Submitted to OAL for printing only pursuant to Government Code section 11343.8 (Register 94, No. 8).

§4151. Exemptions--Prediluted Oil.

Note • History

Prediluted oil intended only for mixture with gasoline or other motor fuel in a two-cycle engine is exempt from the following requirements of the Business and Professions Code:

(a) Section 13460(b)--Flash Points for the various SAE Classifications;

(b) Section 13460(a)--Service Classifications SAE J183;

(d) Section 13482--SAE/API Service Classification markings on containers.

NOTE

Authority cited: Sections 12027 and 12609, Business and Professions Code. Reference: Sections 13460, 13480 and 13482, Business and Professions Code.

HISTORY

1. Change without regulatory effect amending subsections (b)-(d) and Note filed 1-26-93 pursuant to title 1, section 100, California Code of Regulations (Register 93, No. 5).

§4152. Tolerances.

Note

The ratio of gasoline to motor oil or to motor oil solvent mixture, as required by Sections 13480 and 13490(b) of the Business and Professions Code, shall be within plus or minus 10 percent of the stated ratio on the dispenser.

NOTE

Authority cited: Sections 12027 and 12609, Business and Professions Code. Reference: Sections 13480 and 13490, Business and Professions Code.

Article 7. Labeling and Specifications of Engine Coolants

§4160. Definitions Used in This Article.

Note • History

(a) “Engine Coolant” means any substance or preparation, regardless of its origin, intended to be diluted before use as the cooling medium in the cooling system of an internal combustion engine to provide protection against freezing, overheating, and corrosion of the cooling system, or any product intended to be diluted before use which is labeled to indicate or imply that it will prevent freezing or overheating of the cooling system of an internal combustion engine. The term “engine coolant”, as used in this article, also means “antifreeze.”

(b) “Prediluted Engine Coolant” means any substance or preparation, regardless of its origin, intended or labeled for use full strength as the cooling medium or as a top off in the cooling system of an internal combustion engine to provide supplemental protection against freezing, overheating, and corrosion of the cooling system. The term “prediluted engine coolant”, as used in this article, also means “prediluted antifreeze.”

(d) “Recycled Prediluted Engine Coolant” means prediluted engine coolant that contains recycled ingredients.

(e) “Virgin Engine Coolant” means engine coolant that does not contain recycled or reconditioned ingredients.

(f) “Virgin Prediluted Engine Coolant” means prediluted engine coolant that does not contain recycled or reconditioned ingredients.

(g) “Reconditioned Engine Coolant” means recycled prediluted engine coolant produced from prediluted engine coolant that has been removed from a vehicle, reconditioned and is intended to be returned to the same vehicle.

NOTE

Authority cited: Section 12027, Business and Professions Code. Reference: Sections 13700, 13710(a) and 13713, Business and Professions Code.

HISTORY

1. New section filed 4-30-82; effective upon filing pursuant to Government Code section 11346.2(d) (Register 82, No. 21).

2. Editorial correction filed 6-19-85; effective thirtieth day thereafter (Register 85 No. 25).

3. Amendment filed 11-29-93; operative 12-29-93 (Register 93, No. 49).

4. Amendment of article heading and section filed 11-2-98; operative 12-2-98 (Register 98, No. 45).

5. Repealer of article 7 (sections 4160-4175) and section and new article 7 (sections 4160-4171) and section filed 1-11-2002; operative 1-11-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§4161. Labeling.

Note • History

In addition to the requirements of Section 13711(a) and (b), Business and Professions Code, the label of each container of engine coolant, prediluted engine coolant, recycled engine coolant, and recycled prediluted engine coolant shall bear a distinctive brand name in letters not less than one-eighth inch (3.18 mm) in height. Additionally, each container packaged after January 1, 2003, shall clearly identify the applicable American Society for Testing and Materials (ASTM) Standard Designation which the product meets.

NOTE

Authority cited: Sections 12027 and 12609, Business and Professions Code. Reference: Sections 13700 and 13711(a)(b), Business and Professions Code.

HISTORY

1. Repealer and new section filed 11-29-93; operative 12-29-93 (Register 93, No. 49). For prior history, see Register 85, No. 47.

2. Amendment of section heading and section filed 11-2-98; operative 12-2-98 (Register 98, No. 45).

3. Repealer and new section filed 1-11-2002; operative 1-11-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§4162. Specifications -- Glycol Base Virgin Engine Coolant and Virgin Prediluted Engine Coolant for Automobiles and Light Duty Service.

Note • History

Glycol base virgin engine coolant and virgin prediluted engine coolant for use in automobiles and light duty service shall meet the specifications set forth by the American Society for Testing and Materials (ASTM) in the Standard Specifications for Glycol Base Engine Coolant for Automobiles and Light Duty Service D 3306-00a. In addition, the reserve alkalinity of virgin engine coolants shall not be less than 10.0 mL of .1N hydrochloric acid and virgin prediluted engine coolants shall not be less than 5.0 mL of .1N hydrochloric acid when tested by ASTM procedure D 1121-98.

NOTE

Authority cited: Sections 12027 and 13710(a), Business and Professions Code. Reference: Sections 13710(a) and 13713, Business and Professions Code.

HISTORY

1. Repealer and new section filed 11-29-93; operative 12-29-93 (Register 93, No. 49). For prior history, see Register 85, No. 25.

2. Amendment of section heading and section filed 11-2-98; operative 12-2-98 (Register 98, No. 45).

3. Repealer and new section filed 1-11-2002; operative 1-11-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§4163. Specifications -- Recycled Glycol Base Engine Coolant for Automobiles and Light Duty Service.

Note • History

Glycol base recycled engine coolant for use in automobiles and light duty service shall meet the specifications set forth by the American Society for Testing and Materials (ASTM) in the Standard Specification for Recycled Glycol Base Engine Coolant for Automobiles and Light Duty Service D 6472-00. In addition, the reserve alkalinity shall not be less than 10.0 mL of .1N hydrochloric acid when tested by ASTM procedure D 1121-98.

NOTE

Authority cited: Sections 12027 and 13710(a), Business and Professions Code. Reference: Sections 13710(a) and 13713, Business and Professions Code.

HISTORY

1. Repealer and new section filed 11-29-93; operative 12-29-93 (Register 93, No. 49). For prior history, see Register 85, No. 47.

2. Repealer filed 11-2-98; operative 12-2-98 (Register 98, No. 45).

3. Repealer and new section filed 1-11-2002; operative 1-11-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§4164. Specifications -- Recycled and Reconditioned Glycol Base Prediluted Engine Coolant for Automobiles and Light Duty Service.

Note • History

Glycol base recycled prediluted engine and reconditioned engine coolant for use in automobiles and light duty service shall meet the specifications set forth by the American Society for Testing and Materials (ASTM) in the Standard Specification for Recycled Prediluted Aqueous Glycol Base Engine Coolant (50 Volume % Minimum) for Automobile and Light Duty Service D6471-99. In addition, the reserve alkalinity shall not be less than 5.0 mL of .1N hydrochloric acid when tested by ASTM procedure D 1121-98.

NOTE

Authority cited: Sections 12027 and 13710(a), Business and Professions Code. Reference: Sections 13710(a) and 13713, Business and Professions Code.

HISTORY

1. Repealer and new section filed 11-29-93; operative 12-29-93 (Register 93, No. 49). For prior history, see Register 85, No. 25.

2. Amendment of section heading and section filed 11-2-98; operative 12-2-98 (Register 98, No. 45).

3. Repealer and new section filed 1-11-2002; operative 1-11-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§4165. Exemptions -- Reserve Alkalinity.

Note • History

The Department may exempt any engine coolant, prediluted engine coolant, recycled engine coolant, recycled prediluted engine coolant or reconditioned engine coolant formulation from the reserve alkalinity requirement if the manufacturer, packer, seller, or distributor presents test data showing that the formulation meets the performance requirements specified for the Standard Test Methods for: “Corrosion Test for Engine Coolants in Glassware” -- ASTM D 1384-7a, “Simulated Service Corrosion Testing of Engine Coolants” -- ASTM D-2570-96, and “Corrosion of Aluminum Alloys in Engine Coolants Under Heat -- Rejecting Conditions” -- ASTM D 4340-96.

NOTE

Authority cited: Section 12027, Business and Professions Code. Reference: Sections 13710(a) and 13713, Business and Professions Code.

HISTORY

1. New section filed 11-29-93; operative 12-29-93 (Register 93, No. 49). For prior history, see Register 85, No. 47.

2. Repealer filed 11-2-98; operative 12-2-98 (Register 98, No. 45).

3. Repealer and new section filed 1-11-2002; operative 1-11-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§4166. Variance from Chloride Standard -- Specifications for Recycled Engine Coolant.

Note • History

The Department may grant a variance for recycled engine coolant from the chloride standard contained in the ASTM specification referenced in Section 4163, if the engine coolant producer or manufacturer of the engine coolant recycling system provides test data that the recycled engine coolant meets all the following conditions:

(a) The chloride content is less than one hundred fifty parts per million (150 ppm);

(b) The recycled engine coolant meets all other requirements as specified in Section 4163;

(c) The recycled engine coolant, when tested in accordance with Annex 3 of ASTM D 6472-00 shall visually provide a similar or smaller amount of precipitate when compared to the results obtained when testing the reference coolant specified in Annex 2 of ASTM D 6472-00;

(c) The recycled engine coolant shows a Protection Potential, EG, of greater (more positive) than or equal to -400 mV v SHE (standard hydrogen electrode) when tested in accordance with the ASTM Standard Test Method for Repassivation Potential of Aluminum and Its Alloy by Galvanostatic Measurement D 6208-97.

Variances granted under this section shall remain in effect until January 1, 2003.

NOTE

Authority cited: Section 12027, Business and Professions Code. Reference: Sections 13710(a), 13710.5 and 13713, Business and Professions Code.

HISTORY

1. New section filed 11-29-93; operative 12-29-93 (Register 93, No. 49).

2. Repealer filed 11-2-98; operative 12-2-98 (Register 98, No. 45).

3. Repealer and new section filed 1-11-2002; operative 1-11-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§4167. Variance from Chloride Standard -- Specifications for Recycled Prediluted Engine Coolant or Reconditioned Engine Coolant.

Note • History

The Department may grant a variance for recycled prediluted engine coolant from the chloride standard contained in the ASTM specifications referenced in Section 4164, if the engine coolant producer or manufacturer of the engine coolant recycling system provides test data that the recycled prediluted engine coolant or reconditioned engine coolant meets all the following conditions:

(a) The chloride content is less than one hundred fifty parts per million (150 ppm);

(b) The recycled prediluted engine coolant meets all other requirements as specified in Section 4164;

(c) The recycled prediluted engine coolant, when tested in accordance with Annex 3 of ASTM D 6471-99 shall provide a similar or smaller amount of precipitate when compared to the results obtained when testing the reference coolant specified in Annex 2 of ASTM D 6471-99;

(d) The recycled prediluted engine coolant shows a Protection Potential, EG, of greater (more positive) than or equal to -400 mV v SHE (standard hydrogen electrode) when tested in accordance with ASTM Standard Test Method for Repassivation Potential of Aluminum and Its Alloys by Galvanostatic Measurement D 6208-97. The test solution shall be prepared as follows: Mix 50 volume percent of the recycled prediluted engine coolant or reconditioned engine coolant with 25 volume percent corrosive water (as specified in ASTM D 6208-97) and 25 percent volume deionized water at room temperature.

Variances granted under this section shall remain in effect until January 1, 2003.

NOTE

Authority cited: Section 12027, Business and Professions Code. Reference: Sections 13710(a) and 13713, Business and Professions Code.

HISTORY

1. New section filed 11-29-93; operative 12-29-93 (Register 93, No. 49).

2. Amendment filed 11-2-98; operative 12-2-98 (Register 98, No. 45).

3. Repealer and new section filed 1-11-2002; operative 1-11-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§4168. Availability of ASTM Standards and Test Procedures.

Note • History

The American Society for Testing and Materials (ASTM) product standards and test procedures incorporated by reference in this article, with the exception of ASTM D 3306-00a, are available in the 2000 version of the Annual Book of ASTM Standards, Volume 15.05. ASTM D 3306-00a, is only available as a separate publication until September 2001. After September 2001, ASTM D 3306-00a will be available in the 2001 version of the Annual Book of ASTM Standards, Volume 15.05. These documents are available from the American Society for Testing and Materials (ASTM) located at 100 Barr Harbor Drive, West Conshohocken, Pennsylvania 19428-2959.

NOTE

Authority cited: Section 12027, Business and Professions Code. Reference: Sections 13710(a) and 13713, Business and Professions Code.

HISTORY

1. New section filed 11-2-98; operative 12-2-98 (Register 98, No. 45).

2. Repealer and new section filed 1-11-2002; operative 1-11-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§4169. Evaluation of Test Results.

Note • History

No adjustments for test precision or bias shall be applied in the evaluation of specifications established in this article for which repeatability, reproducibility, or bias statements have not been established.

(a) Evaluation of Suspended Matter and Sediment in Engine Coolant and Recycled Engine Coolant. -- Shake the engine coolant to insure a homogeneous mixture and combine 140 mL of this mixture with 60 mL of deionized water at room temperature. Immediately pour the blended mixture into a 250 mL Griffin beaker and allow it to stand at room temperature undisturbed for 24 hours. Visually examine the blend for suspended matter and sediment. A flashlight or other similar source of illumination shall be used to aid in the evaluation. The mixture shall not contain visually identifiable suspended matter or sediment.

(b) Evaluation of Suspended Matter and Sediment in Prediluted Engine Coolant and Prediluted Recycled Engine Coolant. -- Shake the prediluted engine coolant to insure a homogeneous mixture. Immediately pour 200 mL of the mixture into a 250 mL Griffin beaker and allow it to stand at room temperature undisturbed for 24 hours. Visually examine the blend for suspended matter and sediment. A flashlight or other similar source of illumination shall be used to aid in the evaluation. The mixture shall not contain visually identifiable suspended matter or sediment.

NOTE

Authority cited: Section 12027, Business and Professions Code. Reference: Sections 13710(a) and 13713, Business and Professions Code.

HISTORY

1. New section filed 11-2-98; operative 12-2-98 (Register 98, No. 45).

2. Repealer and new section filed 1-11-2002; operative 1-11-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§4170. Verification of Claim for Recycled Engine Coolant.

Note • History

Any distributor, manufacturer, producer, or seller of recycled engine coolant which has a chloride ion concentration greater than 25 parts per million (ppm) or a sulfate ion concentration greater than 100 ppm shall provide, upon request of a duly authorized representative of the Department, fleet testing results as specified in ASTM D 6472-00. Any product for which test results are not provided to the Department within 30 days of request shall be deemed adulterated. Verification of fleet testing data by a manufacturer of an engine coolant recycling system is prima facie evidence that the product produced using the same equipment, technique and formulation meets the fleet testing requirements in ASTM D 6472-00.

NOTE

Authority cited: Section 12027, Business and Professions Code. Reference: Sections 13710(a) and 13713, Business and Professions Code.

HISTORY

1. New section filed 11-2-98; operative 12-2-98 (Register 98, No. 45).

2. Repealer and new section filed 1-11-2002; operative 1-11-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§4171. Verification of Claim for Recycled Prediluted Engine Coolant or Reconditioned Engine Coolant.

Note • History

Any distributor, manufacturer, producer, or seller of recycled prediluted engine coolant or reconditioned engine coolant which has a chloride ion concentration greater than 33 parts per million (ppm) or a sulfate ion concentration greater than 140 ppm shall provide, upon request of a duly authorized representative of the Department, fleet testing results as specified in ASTM D 6471-99. Any product for which test results are not provided to the Department within 30 days of request shall be deemed adulterated. Verification of fleet testing data by a manufacturer of an engine coolant recycling system is prima facie evidence that the product produced using the same equipment, technique and formulation meets the fleet testing requirements in ASTM D 6471-99.

NOTE

Authority cited: Section 12027, Business and Professions Code. Reference: Sections 13710(a) and 13713, Business and Professions Code.

HISTORY

1. New section filed 11-2-98; operative 12-2-98 (Register 98, No. 45).

2. Repealer and new section filed 1-11-2002; operative 1-11-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§4172. Evaluation of Storage Stability and Compatibility of Recycled Prediluted Engine Coolant. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12609, Business and Professions Code. Reference: Sections 13710(a) and 13713, Business and Professions Code.

HISTORY

1. New section filed 11-2-98; operative 12-2-98 (Register 98, No. 45).

2. Repealer filed 1-11-2002; operative 1-11-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§4173. Evaluation of Electrochemical Pitting of Recycled Prediluted Engine Coolant. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12609, Business and Professions Code. Reference: Sections 13710(a) and 13713, Business and Professions Code.

HISTORY

1. New section filed 11-2-98; operative 12-2-98 (Register 98, No. 45).

2. Repealer filed 1-11-2002; operative 1-11-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§4174. Evaluation of Test Results. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12609, Business and Professions Code. Reference: Sections 13710(a) and 13713, Business and Professions Code.

HISTORY

1. New section filed 11-2-98; operative 12-2-98 (Register 98, No. 45).

2. Repealer filed 1-11-2002; operative 1-11-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

§4175. Definitions -- As Used in This Article. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027 and 12609, Business and Professions Code. Reference: Sections 13700, 13710(a) and 13713, Business and Professions Code.

HISTORY

1. New section filed 11-2-98; operative 12-2-98 (Register 98, No. 45).

2. Repealer filed 1-11-2002; operative 1-11-2002 pursuant to Government Code section 11343.4 (Register 2002, No. 2).

Article 8. Specifications for Hydrogen Used in Internal Combustion Engines and Fuel Cells

§4180. Definitions Used in This Article.

Note • History

(a) “Fuel Cell” means an electrochemical device used to convert hydrogen and oxygen into electrical energy to power a motor vehicle.

(b) “Internal Combustion Engine” means a device used to ignite hydrogen in a confined space to create mechanical energy to power a motor vehicle.

(c) “Hydrogen Fuel” means a fuel composed of the chemical hydrogen intended for consumption in an internal combustion engine or fuel cell.

NOTE

Authority cited: Sections 12027 and 13446, Business and Professions Code. Reference: Sections 13401(c), 13401(h), 13401(i), 13401(m), 13401(r), 13413(a) and 13595(a), Business and Professions Code.

HISTORY

1. New article 8 (sections 4180-4181) and section filed 8-12-2008; operative 9-11-2008 (Register 2008, No. 33).

§4181. Specifications -- Hydrogen Fuel Used in Fuel Cells and Internal Combustion Engines.

Note • History

Hydrogen fuel used in fuel cells and internal combustion engines shall meet the following requirements:

Specification Value

Hydrogen Fuel Index (minimum, %) (1) 99.97

Total Gases (maximum, ppm v/v) (2) 300

Water (maximum, ppm v/v) 5

Total Hydrocarbons (maximum, ppm v/v) (3) 2

Oxygen (maximum, ppm v/v) 5

Helium (maximum, ppm v/v) 300

Nitrogen and Argon (maximum, ppm v/v) 100

Carbon dioxide (maximum, ppm v/v) 2

Carbon monoxide (maximum, ppm v/v) 0.2

Total Sulfur Compounds (maximum, ppm v/v) 0.004

Formaldehyde (maximum, ppm v/v) 0.01

Formic acid (maximum, ppm v/v) 0.2

Ammonia (maximum, ppm v/v) 0.1

Total Halogenated Compounds (maximum, ppm v/v) 0.05

Particulates Size (maximum, mm) 10

Particulate Concentration (maximum, mg/L @ NTP)(4) 1

1. The hydrogen fuel index is the value obtained with the value of total gases (%) subtracted from 100%

2. Total Gases = Sum of all impurities listed on the table except particulates

3. Total Hydrocarbons may exceed 2 ppm v/v only due to the presence of methane, provided that the total gases do not exceed 300 ppm v/v.

4. mg/L @ NTP = micrograms per liter of hydrogen fuel at 0oC and 1 atmosphere pressure.

This specification is an interim standard for hydrogen fuel. Once an American National Standards Institute (ANSI) accredited standards writing organization has adopted a hydrogen fuel standard, the Department of Food and Agriculture (Department) is required by law to formally adopt that standard by reference.

Test procedures have not yet been finalized to measure the properties specified in this interim standard. The Department will formally adopt sampling and test procedures by regulation as they are approved by an ANSI accredited standards writing organization. In the absence of these, the Department may formally adopt interim sampling and test procedures by regulation.

NOTE

Authority cited: Sections 12027 and 13446, Business and Professions Code. Reference: Sections 13401(c), 13401(h), 13401(i), 13401(m), 13401(r), 13413(a) and 13595(a), Business and Professions Code.

HISTORY

1. New section filed 8-12-2008; operative 9-11-2008 (Register 2008, No. 33).

Chapter 7. Advertising of Gasoline and Other Motor Vehicle Fuels

§4200. Advertising Medium.

Note • History

“Advertising medium,” as used in this subchapter, includes banner, sign, placard, poster, streamer and card, whether or not mounted, whether appearing on the same or different standards, or whether or not physically connected with each other; provided, the advertised statements can reasonably be read as one advertising message.

NOTE

Authority cited: Sections 12027 and 12609, Business and Professions Code. Reference: Sections 13531, 13532, 13534, 13535, 13536, 13537, 13538, 13539 and 13540, Business and Professions Code.

HISTORY

1. New section filed 4-30-82; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 82, No. 21).

2. Editorial correction of NOTE filed 6-19-85; effective thirtieth day thereafter (Register 85, No. 25).

§4201. Price Sign Display on Dispensing Apparatus.

Note

In addition to the requirements of Sections 13470 and 13480, Business and Professions Code, any sign referring to the price of gasoline or other motor vehicle fuel displayed on any dispensing apparatus from which gasoline or other motor vehicle fuel is being offered for sale or sold, shall be limited to the following:

(a) Actual price per gallon or liter, and

(b) Conversion chart information required for liter sales per Section 13470.5, Business and Professions Code.

NOTE

Authority cited: Sections 12027 and 12609, Business and Professions Code. Reference: Sections 13470, 13470.5 and 13480, Business and Professions Code.

§4202. Labeling and Price Sign Advertising Requirements for Biodiesel and Biodiesel Blends.

Note • History

(a) The labeling on biodiesel and biodiesel blend dispensers shall meet the requirements of the Federal Trade Commission (FTC) 16 CFR Part 306 “Automotive Fuel Ratings, Certification and Posting” Rule, as published in the Federal Register Volume 75, Number 50, dated March 16, 2010, which are hereby incorporated.

(b) The name of the product and grade designation shall be on all dispensers, advertising signs, and storage tank labels as required in Section 13480 and 13532 of the Business and Professions Code.

(c) Every biodiesel dispenser dispensing blends greater than 5. volume percent shall display on each customer side, as required by Section 13484 of the Business and Professions Code, a sign clearly visible which reads as follows:

“THIS FUEL CONTAINS BIODIESEL. CHECK THE OWNER'S MANUAL OR WITH YOUR ENGINE MANUFACTURER BEFORE USING.”

NOTE

Authority cited: Sections 12027 and 13450, Business and Professions Code. Reference: Sections 13480 and 13484, Business and Professions Code.

HISTORY

1. Renumbering of former section 4202 to section 4205 and new section 4202 filed 1-24-2011; operative 2-23-2011 (Register 2011, No. 4).

2. Editorial correction of History 1 (Register 2011, No. 6).

§4203. Labeling and Price Sign Advertising Requirements for Biomass-Based Diesel and Biomass-Based Diesel Blends.

Note • History

(a) The labeling on biomass-based diesel and biomass-based diesel blend dispensers shall meet the requirements found in the Federal Trade Commission (FTC) 16 CFR Part 306 “Automotive Fuel Ratings, Certification and Posting” Rule, as published in the Federal Register Volume 75, Number 50, dated March 16, 2010, which are hereby incorporated.

(b) The name of the product and grade designation shall be on all dispensers, advertising signs, and storage tank labels as required in Section 13480 and 13532 of the Business and Professions Code.

NOTE

Authority cited: Sections 12027 and 13450, Business and Professions Code. Reference: Sections 13480 and 13484, Business and Professions Code.

HISTORY

1. New section filed 1-24-2011; operative 2-23-2011 (Register 2011, No. 4).

2. Editorial correction of History 1 (Register 2011, No. 6).

§4204. Labeling and Price Sign Advertising Requirements for E85 Fuel Ethanol and M85 Fuel Methanol.

Note • History

(a) The labeling on E85 Fuel Ethanol and M85 Fuel Methanol dispensers shall meet the requirements found in FTC 16 CFR Part 306 “Automotive Fuel Ratings, Certification and Posting” Rule, as published in the Federal Register Volume 75, Number 50, dated March 16, 2010, which are hereby incorporated.

(b) All dispensers advertising signs and storage tank labels shall comply with the requirements of Section 13480 and 13532 of the Business and Professions Code. E85 Fuel Ethanol and M85 Fuel Methanol shall use, at a minimum, the words “E85” “Ethanol”, or “M85” “Methanol” in close proximity to describe the name of the product.

(c) E85 Fuel Ethanol and M85 Fuel Methanol are defined as alternative fuels by the Federal Trade Commission (FTC) and therefore no grade designation is required.

NOTE

Authority cited: Sections 12027, 13480 and 13484, Business and Professions Code. Reference: Sections 13401(m), 13440 and 13441, Business and Professions Code.

HISTORY

1. New section filed 1-24-2011; operative 2-23-2011 (Register 2011, No. 4).

2. Editorial correction of History 1 (Register 2011, No. 6).

§4205. Illumination.

Note • History

In addition to the requirements of Section 13536, Business and Professions Code, when any advertising message is illuminated, the entire message shall be uniformly illuminated.

NOTE

Authority cited: Section 12027, Business and Professions Code. Reference: Section 13536, Business and Professions Code.

HISTORY

1. Renumbering of former section 4202 to new section 4205, including amendment of Note, filed 1-24-2011; operative 2-23-2011 (Register 2011, No. 4).

2. Editorial correction of History 1 (Register 2011, No. 6).

Chapter 8. Motor Oil Fee

§4300. Definition of “Motor Oil” and Other Terms for Purposes of Fee Responsibility.

Note • History

For purposes of fee responsibility under Sections 13430 and 13431 of the Business and Professions Code the following definitions apply:

(a) “Motor oil” includes natural, synthetic and re-refined motor oils, whether or not in retail containers, and in addition, any product used an additive to a motor oil used in the lubrication of internal combustion engines. Refinery base stocks, manufacturing additives used by motor oil dealers in the commercial compounding and production of motor oils, and other motor oil components are not motor oils for the purposes of fee responsibility unless they are used separately in the lubrication of internal combustion engines, in which case they are “motor oils” for the purpose of the fee responsibility.

(b) For purposes of this Subchapter, the term “additive” when used alone, means any product to be added to the motor oil in the crankcase of an internal combustion engine for the purpose of reducing friction, heat or wear of the internal moving parts.

(c) “Internal combustion engine” means all engines producing power by internal combustion and includes 2-cycle and 4-cycle internal combustion engines and turbine engines. Internal combustion engines include engines powered by gasoline, ethanol, methanol, alcohol blended fuels, diesel, biodiesel, biodiesel blends, kerosene, hydrogen, compressed natural gas, liquefied petroleum gas, propane, or butane.

(d) “Motor oil dealer” means any person, firm or corporation engaged in the business of producing, importing, packaging or otherwise preparing motor oil for market or selling or distributing motor oil.

(e) “Motor oil dealer permit number” means the registration number provided by the Department to each motor oil dealer.

(f) “Date of sale” is the date of transfer of the motor oil to the purchaser, as evidenced by an invoice, voucher or bill of lading.

(g) “Quarter” means a three-month period during a fiscal year. For each fiscal year, the first quarter commences July 1 and ends September 30, the second quarter commences October 1 and ends December 31, the third quarter commences January 1 and ends March 31 and the fourth quarter commences April 1 and ends June 30, all inclusive.

(h) “Export” or “Exported” means the delivery or shipment of motor oil by the dealer from a point in California to a point outside of California when, pursuant to the contract of sale, the motor oil is delivered by the motor oil dealer to:

(1) The out of state point by facilities operated by the dealer; or

(2) A carrier, customs broker or forwarding agent for shipment to a location outside of California.

(3) A forwarding agent, export packer, customs broker or other person engaged in the business of preparing property for export, or arranging for its export to a location outside of California, or

(4) A vessel clearing from a port in California for a port outside of California. However, motor oil consumed during a voyage clearing a California port is not exempt.

The motor oil is not exported if it is diverted in transit, for any reason, and is not actually delivered outside of California; regardless of documentary evidence held by the dealer for delivery of that motor oil for out-of-state shipment.

NOTE

Authority cited: Sections 12027 and 13433, Business and Professions Code. Reference: Section 13430, Business and Professions Code.

HISTORY

1. New definition of ``export” filed 8-30-2001; operative 9-29-2001 (Register 2001, No. 35).

2. Amendment of section and Note filed 11-27-2012; operative 12-27-2012 (Register 2012, No. 48).

§4302. Fee Responsibility and Exemption.

Note • History

(a) The first motor oil dealer that produces, sells or distributes motor oil in California, whether or not packaged in retail containers, shall pay the fee for all such motor oil sold in California.

(b) Motor oil exported for sale outside California is exempt from the motor oil fee.

(c) A person assigned a motor oil dealer permit number and not actively engaged in the business of producing, distributing, or selling motor oil is required to notify the Department in writing within the next reporting period upon ceasing operations dealing with motor oil.

NOTE

Authority cited: Section 12027, Business and Professions Code. Reference: Sections 13430 and 13431 Business and Professions Code.

HISTORY

1. Amendment filed 7-22-82; effective thirtieth day thereafter (Register 82, No. 30).

2. Editorial correction filed 8-26-82 (Register 82, No. 35).

3. Amendment of subsection (b) and new subsection (c) filed 11-27-2012; operative 12-27-2012 (Register 2012, No. 48).

§4304. Fees and Returns.

Note • History

(a) The motor oil fee provided for in Section 13431 of the Business and Professions Code is established at four cents ($0.04) per gallon. This section shall remain in effect until January 1, 2018 and as of that date the fee shall revert to three cents ($0.03) per gallon, unless a regulation establishing a different fee is promulgated before January 1, 2018.

(b) Each person responsible for the payment of the motor oil fee shall file a return with the Department no later than 30 days after each quarter ending September 30, December 31, March 31 and June 30. The return shall be on a completed “Motor Oil Fee Return Form” (Rev. 6/30/12), hereby incorporated by reference, and accompanied by payment of the motor oil fee due for such transactions. All motor oil dealers must prepare and submit to the Department a return in accordance with the general requirements for reporting contained in this section.

(1) A return for each quarter shall include:

(A) The amount, in gallons of motor oil purchased, sold, manufactured in California, or imported into California.

(B) The total amount of gallons of motor oil with fees paid to suppliers.

(C) The net amount of motor oil gallons to which the fee is applied. This is calculated by the gallons reported in (A) above minus the gallons reported in (B) above.

(D) The signature and title of the representative of the entity authorized to prepare the return.

(E) The date the return was signed.

(2) Returns and applicable supporting data shall be accurate and complete; and shall be computer generated, typed or legibly handwritten in English.

(c) Any return not received by the Cashier, California Department of Food and Agriculture in Sacramento by the dates stated in subsection (b), not complete or not accompanied by the full fee due, is delinquent. A return that is postmarked not later than the fifth day of the month in which the return is due shall be deemed received by the date on which it was due.

(d) A motor oil dealer may not take a credit on their quarterly Motor Oil Fee Return Form for motor oil that is used for an exempt purpose pursuant to Business and Professions Code Section 13431, during any quarter. Motor oil fees paid on motor oil later used for an exempt purpose may be refunded under the provisions of this Chapter upon request of the motor oil dealer under the provisions of Section 4307.

(e) Any return not received by the Cashier, California Department of Food and Agriculture in Sacramento by the dates stated in subsection (b), incomplete or not accompanied by the full fee due, is delinquent. The Department will reject any return that fails to comply with the reporting requirements of this Chapter. All payments to the Department must be made by check, draft, money order or cashier's check payable to the Cashier, Department of Food and Agriculture.

(f) Any motor oil dealer with an annual volume of sales or purchases of motor oil less than 5000 gallons may apply in writing to the Department for authorization to file an annual return in lieu of a quarterly return. The reporting period shall be established beginning the month in which the written request is accepted. The due date for annual returns is on the last day of the month following the end of the reporting period.

NOTE

Authority cited: Sections 12027 and 13433, Business and Professions Code. Reference: Sections 13431, 13432 and 13433, Business and Professions Code.

HISTORY

1. Editorial correction of subsection (c) filed 8-26-82 (Register 82, No. 35).

2. Amendment of subsections (a) and (b) filed 5-1-96; operative 5-31-96 (Register 96, No. 18).

3. Amendment filed 8-30-2001; operative 9-29-2001 (Register 2001, No. 35).

4. Amendment of section and Note filed 11-27-2012; operative 12-27-2012 (Register 2012, No. 48).

§4305. Authority to Determine Compliance.

Note • History

Nothing in this Chapter limits the authority of the Department to audit, examine, review, inspect, or otherwise determine the compliance or noncompliance of any motor oil dealer.

NOTE

Authority cited: Sections 12027 and 13433, Business and Professions Code. Reference: Sections 13431,13432 and 13433, Business and Professions Code.

HISTORY

1. New section filed 11-27-2012; operative 12-27-2012 (Register 2012, No. 48).

§4306. Penalties.

Note • History

For any delinquency in making a return, or any deficiency in payment, the Department shall add to such delinquent payment a penalty of ten percent of the amount which is due.

NOTE

Authority cited: Sections 12027 and 13433, Business and Professions Code. Reference: Sections 13431 and 13433, Business and Professions Code.

HISTORY

1. Amendment filed 11-27-2012; operative 12-27-2012 (Register 2012, No. 48).

§4307. Refund of Fees Paid.

Note • History

All requests for refund of payments made pursuant to Section 4304 shall be submitted to the Department within three years from the date of the payment of the fee. Requests for refund shall contain the following information:

(a) A letter requesting the refund, signed by the owner or an authorized person within the company;

(b) A ledger sheet tabulating purchases and exports for which the refund is being requested;

(d) Copies of invoices, vouchers, bills of lading, shipping documents, etc., documenting that the motor oil was exported from California.

Any person, who has reported and paid the motor oil fee on motor oil, which is later transported out of California, may request a refund.

Requests for refunds submitted later than three years from the time of payment of the motor oil fee or not supported by the required documentation will be returned, unprocessed, to the sender by the Department.

NOTE

Authority cited: Sections 12027 and 13433, Business and Professions Code. Reference: Sections 13431, 13432 and 13433, Business and Professions Code.

HISTORY

1. New section filed 8-30-2001; operative 9-29-2001 (Register 2001, No. 35).

2. Amendment of section and Note filed 11-27-2012; operative 12-27-2012 (Register 2012, No. 48).

§4308. Records.

Note • History

Each person required to file a return pursuant to Section 13431, Business and Professions Code, shall maintain in California or, with the Department's permission at another location, an accurate record of all transactions subject to motor oil fee assessment. Such records shall be subject to audit by the Department. The Department may require records kept outside of California to be copied and sent to California for audit. Alternatively, if the motor oil dealer elects to have all audits conducted out-of-state, the costs for the out-of-state audits will be reimbursed to the Department by the motor oil dealer under audit.

Any records which are required to be maintained pursuant to this Chapter or the Business and Professions Code must be kept in accordance with the following provisions:

(a) Motor oil dealers must maintain records for a minimum of four years.

(b) All records maintained pursuant to this Chapter must include the books of account that are ordinarily maintained by the average prudent businessperson.

(c) Records shall include sales invoices, purchase invoices, paid receipts, bills of lading, vouchers, shipping documents or other documents of original entry. An Automatic Data Processing (ADP) system must have built into its program a method of producing visible and legible records which will provide the necessary information to determine compliance with the requirements of this Chapter.

(d) The Department shall produce a comprehensive report on or before December 31, 2016 that includes a summary of income based upon the records listed above, expenditures and capital improvements by work category for the Petroleum Products Program.

NOTE

Authority cited: Sections 12027 and 13433, Business and Professions Code. Reference: Sections 13431 and 13433, Business and Professions Code.

HISTORY

1. Amendment filed 7-22-82; effective thirtieth day thereafter (Register 82, No. 30).

2. Amendment filed 11-27-2012; operative 12-27-2012 (Register 2012, No. 48).

§4309. Motor Oil Fee Reimbursement.

Note • History

Nothing in this Chapter prohibits the motor oil dealer who has reported and paid the motor oil fee to the Department from obtaining reimbursement from their customers. When seeking reimbursement, the motor oil dealer must demonstrate on the invoice that the motor oil fee is collected by one of the following methods:

(1) The motor oil fee may be stated separately on the invoice; or

(2) The motor oil fee may be included in the selling price provided the invoice clearly states that the fee is included in the invoiced amount.

NOTE

Authority cited: Sections 12027 and 13433, Business and Professions Code. Reference: Sections 13431 and 13433, Business and Professions Code.

HISTORY

1. New section filed 11-27-2012; operative 12-27-2012 (Register 2012, No. 48).

Chapter 9. Weighmaster Enforcement

Article 1. General Provisions

§4400. Definition. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027, 12738, 12766 and 12799.5, Business and Professions Code. Reference: Sections 12700, 12740 and 12770, Business and Professions Code.

HISTORY

1. New Subchapter 9 (Articles 1-8, Sections 4400-4472, not consecutive) filed 1-31-83; effective thirtieth day thereafter (Register 83, No. 6).

2. Repealer filed 4-25-86; effective thirtieth day thereafter (Register 86, No. 17).

§4401. Licenses.

Note • History

A copy of the current weighmaster license shall be maintained at each weighing or measuring location and made available to a Sealer upon request.

NOTE

Authority cited: Sections 12027 and 12735, Business and Professions Code. Reference: Sections 12703 and 12704, Business and Professions Code.

HISTORY

1. Editorial correction of NOTE filed 11-4-85; effective thirtieth day thereafter (Register 85, No. 47).

Article 2. Weighmaster Certificates

§4410. Recording Procedures.

Note • History

In addition to the provisions of the Business and Professions Code, information shall be recorded on weighmaster certificates as follows:

(a) Certificates issued for gross weight only shall have the words “gross only” entered on the certificate in the space provided for recording the tare weight.

(b) Certificates issued for tare weight only shall have the words “tare only” entered on the certificate in the space provided for recording the gross weight.

(c) Certificates issued for net quantity only that contain gross and tare spaces shall have the words “Net Only” entered on the certificate in the spaces provided for recording the gross and tare weights.

NOTE

Authority cited: Sections 12027 and 12735, Business and Professions Code. Reference: Sections 12713 and 12715, Business and Professions Code.

HISTORY

1. Amendment filed 4-25-86; effective thirtieth day thereafter (Register 86, No. 17).

§4411. Procedures for Voiding and Correcting. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027, 12721, 12738, 12766, 12791 and 12799.5, Business and Professions Code. Reference: Sections 12718, 12721, 12756, 12788 and 12791, Business and Professions Code.

HISTORY

1. Repealer filed 4-25-86; effective thirtieth day thereafter (Register 86, No. 17).

§4412. Transfer of Weight, Measure or Count. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027, 12713, 12738, 12750, 12766, 12783 and 12799.5, Business and Professions Code. Reference: Sections 12713, 12750 and 12783, Business and Professions Code.

HISTORY

1. Editorial correction filed 7-15-83 (Register 83, No. 30).

2. Repealer filed 4-25-86; effective thirtieth day thereafter (Register 86, No. 17).

§4413. Certificates Issued on Information Furnished by Another Party. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027, 12713, 12738, 12750, 12766, 12783 and 12799.5, Business and Professions Code. Reference: Sections 12713, 12750 and 12783, Business and Professions Code.

HISTORY

1. Repealer filed 4-25-86; effective thirtieth day thereafter (Register 86, No. 17).

§4414. Names of Weighmasters Using Automatic Weighing, Measuring or Counting Systems. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027, 12715, 12738, 12752, 12766, 12785 and 12799.5, Business and Professions Code. Reference: Sections 12715, 12752 and 12785, Business and Professions Code.

HISTORY

1. Repealer filed 4-25-86; effective thirtieth day thereafter (Register 86, No. 17).

§4415. Weighing Vehicles with All Persons off the Scale. [Repealed]

Note • History

NOTE

Authority cited: Sections 12027, 12738, 12766 and 12799.5, Business and Professions Code. Reference: Sections 12728 and 12762, Business and Professions Code.

HISTORY

1. Repealer filed 4-25-86; effective thirtieth day thereafter (Register 86, No. 17).

Article 3. Predetermined Individual Tare Weights

§4420. Predetermined Individual Tare Weight.

Note • History

A predetermined individual tare weight is the weight of a vehicle, container or pallet determined by a weighmaster prior to the time of delivery of a product and is established and used in accordance with the following provisions.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12722 and 12723, Business and Professions Code.

HISTORY

1. Editorial correction of NOTE filed 11-4-85; effective thirtieth day thereafter (Register 85, No. 47).

§4421. Establishing.

Note • History

Predetermined individual tare weights shall be established as follows:

(a) A weighmaster shall weigh the vehicle, container or pallet and issue a “tare only” certificate.

(b) Each vehicle for which a predetermined individual tare weight has been established shall be clearly marked on both sides with the company name or code, license number and predetermined tare weight. The tare weight shall be permanently marked either on the vehicle or on a placard secured thereto. The tare weight shall be identified in numbers and letters not less than three (3) inches (7.62 cm) in height. In the case of gondola units, the required identification shall be applied to both sides of the container portion.

(c) Each container or pallet for which a predetermined individual tare weight has been established shall be clearly marked on both sides with the company name or code, company identification number and predetermined tare weight. The tare weight shall be identified in letters and numbers not less than three (3) inches (7.62 cm) in height.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12722 and 12723, Business and Professions Code.

HISTORY

1. Editorial correction of NOTE filed 11-4-85; effective thirtieth day thereafter (Register 85, No. 47).

§4422. Certificate Requirements.

Note • History

A predetermined individual vehicle, container or pallet tare weight may be used by a weighmaster to determine the net weight of a commodity, provided the following information appears on the certificate:

(a) the fact that a predetermined individual tare weight is being used. This may be designated by the letters “P.T.”; and

(b) the predetermined tare weight, company name or code, and license number or serial number of each vehicle, container and/or pallet.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12715, 12722 and 12723, Business and Professions Code.

HISTORY

1. Amendment filed 4-25-86; effective thirtieth day thereafter (Register 86, No. 17).

§4423. Conditions of Use.

Note • History

The following conditions apply to the use of predetermined individual tare weights:

(a) predetermined individual tare weights may be used by a weighmaster unless a party having a legal or financial interest in the transaction notifies the weighmaster prior to the issuance of the certificate that a predetermined individual tare weight shall not be used; and

(b) a weighmaster shall not use a predetermined individual tare weight which is not based on weighmaster records in his/her possession unless furnished with a copy of the “tare only” certificate which established the predetermined individual tare weight; and

(c) a weighmaster shall not use a predetermined individual tare weight if for any reason it appears that the tare weight may be beyond the tolerance levels prescribed by Section 4450 of this Subchapter.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12722 and 12723, Business and Professions Code.

HISTORY

1. Repealer of former subsection (c) and relettering of former subsection (d) to subsection (c) filed 4-25-86; effective thirtieth day thereafter (Register 86, No. 17).

Article 4. Seasonal Tare Weights

§4430. Seasonal Tare Weight.

Note • History

A seasonal tare weight is the tare weight of a fuel consuming vehicle used to transport bulk loads of tomatoes and is established and used in accordance with the following provisions. Seasonal tare weights are determined by weighmasters and are officially established with the issuance of a cab card.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12722, 12723 and 12729, Business and Professions Code.

HISTORY

1. Amendment filed 4-25-86; effective thirtieth day thereafter (Register 86, No. 17).

§4431. Establishing.

Note • History

Seasonal tare weights shall be established as follows:

(a) A weighmaster shall weigh each unladen vehicle after the driver has confirmed that the vehicle has full fuel tanks. (An unladen vehicle is a vehicle without commodity or persons.)

(b) The weighmaster shall:

(1) Complete and issue a “tare only” weighmaster certificate.

(2) Complete and issue an original cab card which officially establishes the seasonal tare weight. The cab card shall be furnished by the Division of Measurement Standards. The seasonal tare weight stated on the cab card shall be 250 pounds less than the weight shown on the “tare only” weighmaster certificate.

(3) Enter the required information on a daily seasonal truck tare recap sheet, furnished by the Division of Measurement Standards. This recap sheet will be mailed to the Division within two business days.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12722, 12723 and 12729, Business and Professions Code.

HISTORY

1. Editorial correction of printing error in subsection (a) (Register 83, No. 25).

2. Amendment filed 4-25-86; effective thirtieth day thereafter (Register 86, No. 17).

§4432. Certificate Requirement.

Note • History

A seasonal tare weight may be used by a weighmaster to determine the net weight of a commodity, provided the number of the cab card appears on the certificate.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12715, 12722, 12723 and 12729, Business and Professions Code.

HISTORY

1. Amendment filed 4-25-86; effective thirtieth day thereafter (Register 86, No. 17).

§4433. Conditions of Use.

Note • History

The following conditions apply to the use of cab cards:

(a) a cab card shall be valid for a single tomato harvest season only; and

(b) the cab card shall be carried at all times in the vehicle for which the seasonal tare weight has been established; and

(c) the cab card shall be presented to the weighmaster when using the seasonal tare weight to certify the net weight of a load; and

(d) the cab card shall not be used if the actual vehicle tare weight varies by more than 300 pounds from the tare weight stated on the cab card; and

(e) a cab card on which the weight figures have been changed or altered in any manner shall not be used; and

(f) a new cab card shall be obtained when the weight or vehicle identification information on the cab card changes; and

(g) the cab card may be used by a weighmaster to determine the net weight of a load unless a party having a legal or financial interest in the transaction notifies the weighmaster prior to the issuance of the certificate that a seasonal tare weight (cab card) shall not be used.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12722, 12723 and 12729, Business and Professions Code.

HISTORY

1. Amendment of subsections (c) and (g) filed 4-25-86; effective thirtieth day thereafter (Register 86, No. 17).

2. Amendment of subsection (d) filed 10-19-92; operative 11-18-92 (Register 92, No. 43).

Article 5. Common Tare Weights

§4440. Common Tare Weight.

Note • History

A common tare weight is the average weight of a group (lot) of containers or pallets, determined by a weighmaster prior to the time of delivery of the product.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12722 and 12723, Business and Professions Code.

HISTORY

1. New NOTE filed 11-4-85; effective thirtieth day thereafter (Register 85, No. 47).

§4441. Establishing.

Note • History

Common tare weights shall be established as follows:

(a) The containers or pallets within the group (lot) shall each weigh 1,000 lbs. or less, shall be under the control of one user and shall be within a uniform weight range. “Uniform weight range” is defined to mean within a variation (plus or minus) of 0.2 pounds or 20%, whichever is greater.

(b) The weighmaster shall weigh a randomly selected sample of containers or pallets, either individually or in sample subgroups, as prescribed in Section 4442 of this Article. The common tare weight for each container or pallet shall be determined by mathematically dividing the total weight of the random sample by the number of containers or pallets in the sample. At the time the random sample is weighed, all containers and pallets shall be free from foreign matter and in usable condition.

(d) The weighmaster establishing the common tare weight shall issue a weighmaster certificate and complete a “Common Tare Notice” containing information prescribed by the Director. The originals of the weighmaster certificate and the Common Tare Notice shall be mailed to the Division of Measurement Standards within five (5) days. A copy of the Common Tare Notice shall also be maintained at each weighing location where the common tare weight will be used for certification purposes.

(e) The common tare weight established by the weighmaster shall only apply to the containers or pallets in the lot from which the random sample was selected.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections12722 and 12723, Business and Professions Code.

HISTORY

1. Editorial correction of subsections (b) and (c) filed 7-15-83 (Register 83, No. 30).

2. Editorial correction of NOTE filed 11-4-85; effective thirtieth day thereafter (Register 85, No. 47).

§4442. Sample Size.

Note • History

When determining or verifying common tare weights, the following sample size shall be used.

(a) For all pallets and any container used individually, the minimum size of the random sample shall be 96 or 100% of the lot, whichever is less.

(b) For all palletized containers, the minimum size of the random sample shall be determined from the following table:

Minimum Number of Pallets

Number of Containers (with containers) in

Per Pallet Random Sample

Less than 10 96 or 100%, whichever is less

10 to 19 37 or 100%, whichever is less

20 to 49 22 or 100%, whichever is less

50 or more 11 or 100%, whichever is less

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12722 and 12723, Business and Professions Code.

HISTORY

1. Editorial correction of NOTE filed 11-4-85; effective thirtieth day thereafter (Register 85, No. 47).

§4443. Rounding Procedures.

Note • History

Common and average tare weights shall be rounded (digits of 5 or greater are rounded up) as follows:

(a) If the container tare weight is less than 30 pounds, the weight shall be rounded to the nearest one-tenth (0.1) pounds.

(b) If the container tare weight is at least 30 pounds or more, the weight shall be rounded to the nearest one (1) pound.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12722 and 12723, Business and Professions Code.

HISTORY

1. Editorial correction of NOTE filed 11-4-85; effective thirtieth day thereafter (Register 85, No. 47).

2. Amendment filed 7-21-87; operative 8-20-87 (Register 87, No. 30).

§4444. Certificate Requirements.

Note • History

A common tare weight may be used by a weighmaster to determine the net weight of a commodity, provided the following information appears on the weighmaster certificate:

(a) the fact that a common tare weight is being used. This may be designated by the letters “C.T.”; and

(b) the common tare weight, description of the container, and a name of the person or firm for whom the common tare weight has been established. A code designation may be used in lieu of the description of the container, provided this code also appears on the Common Tare Notice.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12715, 12722 and 12723, Business and Professions Code.

HISTORY

1. Amendment filed 4-25-86; effective thirtieth day thereafter (Register 86, No. 17).

§4445. Conditions of Use.

Note • History

The following conditions apply to the use of common tare weights:

(a) common tare weights may only be used by a weighmaster licensed at a location at which a copy of the Common Tare Notice is maintained; and

(b) common tare weights may be used by a weighmaster unless a party having a legal or financial interest in the transaction notifies the weighmaster prior to issuance of the certificate that a common tare weight shall not be used; and

(c) the weighmaster certifying to a common tare weight shall verify that the total number of containers includes not more than 10% of other users' containers and that all containers are within uniform weight range (as defined by Section 4441(a) of this Article); and

(d) a weighmaster shall not use a common tare weight if for any reason it appears that the common tare weight may not meet the tolerance levels prescribed by Section 4450.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12722 and 12723, Business and Professions Code.

HISTORY

1. Editorial correction of subsection (c) filed 7-15-83 (Register 83, No. 30).

2. Editorial correction of NOTE filed 11-4-85; effective thirtieth day thereafter (Register 85, No. 47).

3. Repealer of former subsection (d) and relettering of former subsection (e) to subsection (d) filed 4-25-86; effective thirtieth day thereafter (Register 86, No. 17).

§4446. Verification and Enforcement.

Note • History

The Director may verify the accuracy of an established common tare weight by weighing a representative sample of containers, as prescribed by Section 4441 of this Article, and by rounding as prescribed by Section 4443, also of this Article. If a common tare weight is found to be beyond the tolerance levels established by Section 4450 of this Subchapter, the Director shall issue an order that the common tare weight not be used until re-established by a weighmaster.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12722 and 12723, Business and Professions Code.

HISTORY

1. Editorial correction filed 7-15-83 (Register 83, No. 30).

2. Editorial correction of NOTE filed 11-4-85; effective thirtieth day thereafter (Register 85, No. 47).

Article 6. Limits of Permissible Error

§4450. Tolerance Levels.

Note • History

Except as provided in Section 12722(b) of Chapter 7, Division 5 of the Business and Professions Code, vehicles and containers for which predetermined individual tare weights and common tare weights have been established shall be maintained as close as practicable to the established tare weight, but in no event shall such tare weights exceed the tolerance level of two-tenths (0.2) pound or two percent (2%) of the established tare weight, whichever is greater.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12722 and 12723, Business and Professions Code.

HISTORY

1. Editorial correction filed 11-4-85; effective thirtieth day thereafter (Register 85, No. 47).

Article 7. Average Tare Weights

§4460. Average Tare Weight.

Note • History

An average tare weight is the average weight of a group (lot) of containers within uniform weight range (as defined by Section 4441(a) of this Subchapter) and established by a weighmaster. Average tare weights are determined for each load at the time of certification and are not used for subsequent loads.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12722 and 12723, Business and Professions Code.

HISTORY

1. Editorial correction filed 7-15-83 (Register 83, No. 30).

2. Amendment filed 4-25-86; effective thirtieth day thereafter (Register 86, No. 17).

§4461. Establishing.

Note • History

(a) Average tare weights for containers of uniform weight range, under the control of one user, and used to transport any commodity, may either be established according to the procedures prescribed in Sections 4440-4445 (Common Tare Weights) of this Subchapter, or according to subsection (b) below.

If, however, the containers are of such construction or treatment as to vary in weight as a result of hydrocooling, the average tare weight must be established according to subsection (b) below.

(b) A weighmaster shall randomly select two (2) containers for the first fifty (50) containers in the lot, and one (1) additional container for each fifty (50) additional containers in the lot. However, at no time shall the random sample size be less than three (3) containers.

The average tare weight shall be determined by mathematically dividing the total weight of the random sample by the number of containers in the sample.

The average tare weight determined from the sample shall be rounded as prescribed in Section 4443 of this Subchapter. The weighmaster certificate issued for containers shall show the total number of containers, the number of sample containers, and the average tare weight.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12722 and 12723, Business and Professions Code.

HISTORY

1. Editorial correction filed 7-15-83 (Register 83, No. 30).

2. Amendment of subsection (b) filed 4-25-86; effective thirtieth day thereafter (Register 86, No. 17).

Article 8. Volumetric Conversion to Weight of Squid

§4470. Container Requirements.

Note • History

The following conditions apply to containers used in volumetric conversion:

(a) containers used for removing squid from fishing boats shall be constructed of non-absorbent material and of such construction that they retain their shape when filled; and

(b) only full containers removed from the boat shall be subject to volumetric conversion; squid removed in partially filled containers shall be weighed.

NOTE

Authority cited: Sections 12027, 12734 and 12735, Business and Professions Code. Reference: Section 12734, Business and Professions Code.

HISTORY

1. Editorial correction of NOTE filed 11-4-85; effective thirtieth day thereafter (Register 85, No. 47).

§4471. Container Markings.

Note • History

Each container shall be permanently marked on two sides, in numbers and letters at least three (3) inches (7.62 cm) in height, with the following information:

(a) the company name or code;

(b) the volume in cubic feet to the nearest 1/100 cubic foot; and

NOTE

Authority cited: Sections 12027, 12734 and 12735, Business and Professions Code. Reference: Section 12734, Business and Professions Code.

HISTORY

1. Editorial correction of NOTE filed 11-4-85; effective thirtieth day thereafter (Register 85, No. 47).

§4472. Certificate Requirements.

Note • History

A weighmaster certificate which determines the weight of squid by volumetric conversion shall contain the following information:

(a) number of full containers removed;

(b) volume of each container (Volume = Height x Width x Length);

(d) net weight determined by volumetric conversion (Total Weight = Number of Containers x Volume of Containers x Weight Per Cubic Foot);

(e) number of partially filled containers;

(f) net weight of squid in partially filled containers; and

(g) total weight of squid received.

The above information may be shown in equation form:

EXAMPLE

Number of full containers

x Net weight

Volume of each container = determined by volumetric

x conversion

Weight per Cubic foot

Number of partially filled Net weight of

containers (actually squid in partially

weighed) filled containers

= TOTAL WEIGHT

OF SQUID

RECEIVED

NOTE

Authority cited: Sections 12027, 12734 and 12735, Business and Professions Code. Reference: Sections 12713(b) and 12734, Business and Professions Code.

HISTORY

1. Editorial correction filed 7-15-83 (Register 83, No. 30).

2. Amendment filed 4-25-86; effective thirtieth day thereafter (Register 86, No. 17).

3. Amendment of Example filed 2-25-94; operative 3-28-94. Submitted to OAL for printing only pursuant to Government Code section 11343.8 (Register 94, No. 8).

Article 9. Director's Approval of Inspection of Weighmaster Records

§4480. Application.

Note • History

These regulations shall apply to requests made to the Department of Food and Agriculture by a district attorney or district attorney's designated agent for inspection of weighmaster weight certificates or related documents pursuant to Vehicle Code Section 35557(a).

NOTE

Authority cited: Section 12027, Business and Professions Code; and Section 35557, Vehicle Code. Reference: Section 35557, Vehicle Code.

HISTORY

1. New Article 9 (Sections 4480-4486) filed 10-23-85; effective thirtieth day thereafter (Register 85, No. 43).

§4481. Definition of Designated Agent.

Note

As used in these regulations, a designated agent of the district attorney is an individual within the district attorney's office and designated by the district attorney and authorized to make requests for inspection of weighmaster weight certificates or other related documents. Such designation shall be made in writing to the Director of the Department of Food and Agriculture by the district attorney.

NOTE

Authority cited: Section 12027, Business and Professions Code; and Section 35557, Vehicle Code. Reference: Section 35557, Vehicle Code.

§4482. Information Required by the Director.

Note

Any district attorney or designated agent of the district attorney who shall request inspection of any weighmaster weight certificates or related documents through the Department of Food and Agriculture shall certify that:

(a) He/she is the district attorney or district attorney's designated agent.

(b) He/she possesses a citation or copy of a citation issued for gross vehicle overweight, which has been referred by an Area Commander of the California Highway Patrol along with their reasons for believing that there may be an act of unlawful business practice, and requests the right to review records pertaining to trucks operated by the named company in the possession of specified weighmasters.

(c) He/she has served a copy of the request on an official of the named company, or is declining to do so for reasons specifically stated.

(d) He/she will reveal and discuss the findings from the review of these records with the named company prior to initiating any civil action against the company which is based in whole or in part on these records.

NOTE

Authority cited: Section 12027, Business and Professions Code; and Section 35557, Vehicle Code. Reference: Section 35557, Vehicle Code.

§4483. Approval of Request.

Note

If the Director of the Department of Food and Agriculture finds that the above conditions have been met, he/she shall issue a letter to the district attorney authorizing the district attorney or employees of the district attorney to inspect the records of those weighmasters to determine the number and extent of violations of Division 15, Chapter 5, Article 1 of the California Vehicle Code that may exist, related to the named company, covering a period of 30 days prior to and 30 days subsequent to the issuance of the identified citation.

NOTE

Authority cited: Section 12027, Business and Professions Code; and Section 35557, Vehicle Code. Reference: Section 35557, Vehicle Code.

§4484. Denial of Request.

Note

If the Director of the Department of Food and Agriculture finds that any of the above conditions have not been met, he/she shall issue a letter to the district attorney informing the district attorney that a letter authorizing inspection of weighmaster weight certificates or related documents has been denied, as well as the specific finding or findings upon which the denial was based.

NOTE

Authority cited: Section 12027, Business and Professions Code; and Section 35557, Vehicle Code. Reference: Section 35557, Vehicle Code.

§4485. Applicability--District Attorney.

Note

Nothing in these regulations shall be deemed to apply to any request by any district attorney or district attorney employee to obtain weighmaster weight certificates or related documents for purposes other than prosecuting a civil or criminal violation arising out of Division 15, Chapter 5, Article 1 of the California Vehicle Code.

NOTE

Authority cited: Section 12027, Business and Professions Code; and Section 35557, Vehicle Code. Reference: Section 35557, Vehicle Code.

§4486. Applicability--Other Law Enforcement Agencies.

Note

Nothing in these regulations shall be deemed to apply to or limit the rights of any law enforcement agency other than any district attorney's office to obtain such weighmaster weight certificates or related documents for any law enforcement purpose other than prosecuting a civil or criminal violation arising out of Division 15, Chapter 5, Article 1 of the California Vehicle Code.

NOTE

Authority cited: Section 12027, Business and Professions Code; and Section 35557, Vehicle Code. Reference: Section 35557, Vehicle Code.

Article 10. Timber Tare Weights

§4490. Definitions.

Note • History

The following definitions apply to timber tare weights.

(a) A timber tare weight is the unladen weight of a vehicle or combination of vehicles, used to transport loads of logs, where an automated weight scaling program is used to determine the board foot volume of the load.

(b) Sample scale frequency is the number of loads of logs to be measured by a log scaler at a frequency agreed to by the buyer and seller, e.g., 1 in 4 loads must be measured by a log scaler.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12722, 12723 and 12729, Business and Professions Code.

HISTORY

1. New Article 10 (sections 4490-4493) and section filed 11-29-93; operative 12-29-93 (Register 93, No. 49).

§4491. Establishing.

Note • History

Timber tare weights shall be established in accordance with the following provisions:

(a) A timber tare weight shall be established, by a weighmaster, as the mathematical average of the actual tare weights of a vehicle for the first five consecutive loads hauled into the mill.

(b) After establishment, a timber tare weight for any vehicle shall be calculated from the mathematical average of the five most current actual tare weights. The frequency for updating the timber tare weight, after its establishment, shall be the same as the sample scale frequency and in no case less frequent than one in ten.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12722 and 12723, Business and Professions Code.

HISTORY

1. New section filed 11-29-93; operative 12-29-93 (Register 93, No. 49).

§4492. Certificate Requirements.

Note • History

A timber tare weight may be used by a weighmaster to determine the net weight of timber: provided, disclosure that a timber tare weight is being used appears on the certificate immediately adjacent to the tare weight entry. This shall be designated by the letters “T.T.” and is in addition to any information required by California Business and Professions Code, Division 5, Chapter 7.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12715, 12722 and 12723, Business and Professions Code.

HISTORY

1. New section filed 11-29-93; operative 12-29-93 (Register 93, No. 49).

§4493. Conditions of Use.

Note • History

The following conditions apply to the use of timber tare weights:

(a) Timber tare weights shall be limited to sales where agreed to by all parties having a legal or financial interest.

(b) A weighmaster shall not use a timber tare weight which is not based on weighmaster records in their possession.

(c) Whenever the timber tare weight has not been updated for more than one hundred and twenty (120) days, a new timber tare weight shall be established for that vehicle.

(d) A current actual tare weight that differs from the timber tare weight for that vehicle by more than plus or minus two percent (±2%) must automatically cause the establishment of a new timber tare weight for that vehicle.

(e) When any vehicle fails to obtain a current tare weight when required by the program to update the timber tare weight, the existing timber tare weight shall be used for that load and the system must automatically cause the establishment of a new timber tare weight for that vehicle.

(f) Vehicles with cribs or inserts for short logs, mule trains, and self loaders shall not use a timber tare weight unless the cribs, inserts, or self loading apparatus are permanently installed.

(g) Timber tare weight information must be kept as part of the weighmaster records for a period of four (4) years. These records are to include, but are not limited to, tare weight records supporting timber tare weight updates, tare frequency and sample scaling frequency.

NOTE

Authority cited: Sections 12027, 12723 and 12735, Business and Professions Code. Reference: Sections 12716, 12722 and 12723, Business and Professions Code.

HISTORY

1. New section filed 11-29-93; operative 12-29-93 (Register 93, No. 49).

Article 11. Multiple Draft Weighing Operations

§4495. Application.

Note • History

(a) These regulations shall apply to written requests made to the Department for authorization to use multiple draft static weighing operations.

(b) Also see General and Scales Code requirements, California Code of Regulations, Title 4, Division 9, Chapter 1.

NOTE

Authority cited: Sections 12027, 12107 and 12735, Business and Professions Code. Reference: Section 12728(d)(2), Business and Professions Code.

HISTORY

1. New article 11 (sections 4495-4495.6) and section filed 9-9-99; operative 10-9-99 (Register 99, No. 37).

§4495.1. Definitions.

Note • History

As used in this article:

(a) A multiple draft static weighing operation of a combination of vehicles is a weighing procedure whereby individual weights of connected vehicles in the combination are determined without the entire combination of vehicles resting on the scale platform simultaneously and without disconnecting the vehicles. Multiple draft static weighing operations and multiple draft weighing operations have the same meaning for the purpose of this article.

(b) A single draft static weighing operation is a weighing procedure whereby the entire vehicle or combination of vehicles is resting on the scale platform simultaneously.

NOTE

Authority cited: Sections 12027, 12107 and 12735, Business and Professions Code. Reference: Section 12728(d)(2), Business and Professions Code.

HISTORY

1. New section filed 9-9-99; operative 10-9-99 (Register 99, No. 37).

§4495.2. Request for Authorization.

Note • History

A written request for authorization is limited to those operations where the applicant has complete control of all the vehicles and weighing device(s). The written request shall be submitted to the Department and shall contain the following information:

(a) The procedures that will be used in the multiple draft weighing operation. This shall include the specific weighing location, the weighing device(s) to be used, and the position of vehicles relative to the load-receiving element of the scale.

(b) The make, model and a unique identification designation for each individual vehicle.

NOTE

Authority cited: Sections 12027, 12107 and 12735, Business and Professions Code. Reference: Section 12728(d)(2), Business and Professions Code.

HISTORY

1. New section filed 9-9-99; operative 10-9-99 (Register 99, No. 37).

§4495.3. Conditions of Use.

Note • History

(a) The pulled vehicle shall not be equipped with a braking system.

(b) The pulled vehicle shall have a minimum of two axles separated by such a distance that they completely support the load and also shall be equipped with a free-floating, non-rigidly mounted tongue.

(c) A copy of the letter issued by the Department authorizing the multiple draft weighing operation shall be maintained at the weighing location and made available to a Sealer upon request.

(d) All weights (gross and tare) shall be determined using the same authorized multiple draft weighing operation. “Gross Only” or “Tare Only” certificates are prohibited from being used when using a multiple draft weighing operation.

(e) The use of predetermined individual tare or common tare weights for pulled vehicles are prohibited when using a multiple draft weighing operation.

(f) A weighmaster shall not use a multiple draft weighing operation if for any reason it appears that the weights so determined may be beyond the tolerance level prescribed in Section 4495.5(f).

(g) Multiple draft weighing operations may not be used by a weighmaster if a party having a legal or financial interest in the transaction notifies the weighmaster prior to the issuance of the certificate that a multiple draft weighing operation shall not be used.

NOTE

Authority cited: Sections 12027, 12107 and 12735, Business and Professions Code. Reference: Section 12728(d)(2), Business and Professions Code.

HISTORY

1. New section filed 9-9-99; operative 10-9-99 (Register 99, No. 37).

2. Amendment of subsection (c) filed 2-3-2000; operative 10-9-99. Submitted to OAL for printing only (Register 2000, No. 5).

3. Change without regulatory effect amending subsection (f) filed 2-7-2000 pursuant to section 100, title 1, California Code of Regulations (Register 2000, No. 6).

§4495.4. Certificate Requirements.

Note • History

When a multiple draft weighing operation is used by a weighmaster to determine the net weight of a product, the following information shall appear on the certificate:

(a) The fact that a multiple draft weighing operation is being used to determine the weights. This shall be designated by the words “Multiple Draft” immediately adjacent to both the gross and tare weights. As of January 1, 2000, the letters “M.D.” may be substituted for the words “Multiple Draft”.

(b) The identification of any connected vehicle not resting on the scale platform during certification.

These requirements are in addition to any other information required by California Business and Professions Code, Division 5, Chapter 7.

NOTE

Authority cited: Sections 12027, 12107 and 12735, Business and Professions Code. Reference: Section 12728(d)(2), Business and Professions Code.

HISTORY

1. New section filed 9-9-99; operative 10-9-99 (Register 99, No. 37).

§4495.5. Establishment and Tolerance.

Note • History

Data shall be compiled showing that the method used in the multiple draft weighing operation for the specific location, vehicles, and connected combinations does not introduce or result in errors not in conformance with the requirements of this article when compared to a single draft weighing operation. All testing by the Department shall be consistent with verifying the accuracy of this method. If for any reason the verification testing fails or cannot be performed safely, testing will be terminated until the deficiencies are corrected and the written request for authorization is re-submitted to the Department.

The following procedures shall be used by weights and measures officials for authorizing multiple draft weighing procedures:

(a) The applicant shall provide accessibility to all identified equipment and they shall also provide assistance from trained facility representative(s) during the verification procedures.

(b) All single draft weighings will be performed with the vehicle(s) positioned in approximately the same location on the load-receiving element of the weighing device.

(d) Multiple draft weighings shall be performed in accordance with the applicant's written procedures.

(e) A maximum of 30 single draft and 30 multiple draft net weighments shall be performed for each requested authorization.

(f) At no time shall the net weights determined using a multiple draft weighing operation differ from those using a single draft weighing operation by more than twice the scale tolerance for that net load. A weighment that exceeds the established tolerance shall be sufficient grounds for the Department to deny authorization to use the multiple draft weighing procedure.

The Department shall issue a letter either authorizing use of the multiple draft weighing operation or rejecting the application within 30 days following the completion of verification procedures.

NOTE

Authority cited: Sections 12027, 12107 and 12735, Business and Professions Code. Reference: Section 12728(d)(2), Business and Professions Code.

HISTORY

1. New section filed 9-9-99; operative 10-9-99 (Register 99, No. 37).

§4495.6. Verification and Enforcement.

Note • History

(a) When the gross weight or tare weight of a vehicle and connected combination is recorded on a weighmaster certificate, verification of that weight shall be made by reweighing the combination using the same multiple draft weighing operation authorized by the Department. At no time shall the reweigh weight differ from the recorded weight by more than twice the scale tolerance for that weighment.

(b) If a multiple draft weighing operation is found to produce weights that are beyond the established tolerance, the Department shall issue an order stating that the multiple draft weighing operation shall not be used until it is reestablished and reauthorized by the Department.

NOTE

Authority cited: Sections 12027, 12107 and 12735, Business and Professions Code. Reference: Section 12728(d)(2), Business and Professions Code.

HISTORY

1. New section filed 9-9-99; operative 10-9-99 (Register 99, No. 37).

Chapter 10. Quantity Control

Article 1. General

§4500. Standards for Fresh Berries.

Note • History

Fresh berries shall be sold by net weight; or by volume in measure containers in specified capacities as follows:

(a) Strawberries--Dry pint (33.6 cubic inches; net weight 12 oz.), or dry quart (67.2 cubic inches; net weight 1 lb. 6 oz.).

(b) All other berries--Dry pint (33.6 cubic inches; net weight 12 oz.), or half dry pint (16.8 cubic inches; net weight 8 oz.). Half dry pints, dry pints, and dry quarts, when sold by volume, shall not be deemed to be packages for labeling purposes.

Berry containers (boxes, baskets or packaging in any manner), whether opened or covered shall not have a false bottom or be constructed as to facilitate deception or fraud.

NOTE

Authority cited: Sections 12027 and 12107.1, Business and Professions Code. Reference: Sections 12107.1 and 12601, Business and Professions Code.

HISTORY

1. New Subchapter 10 (Articles 1 and 2, Sections 4500-4521.29, not consecutive) filed 9-30-83; effective thirtieth day thereafter (Register 83, No. 40).

2. Amendment filed 3-10-89; operative 3-10-89 (Register 89, No. 11).

3. Editorial correction of subsections (a) and (b) printing error (Register 89, No. 33).

§4501. Fish Sales by Weight.

Note

The provisions of Section 12024.5, Chapter 1, Division 5 of the California Business and Professions Code shall apply to the sale or advertisement for sale of fin fish and crustaceans, when sold for human consumption, and when not alive.

NOTE

Authority cited: Sections 12027 and 12609, Business and Professions Code. Reference: Sections 12024.5 and 12024.8, Business and Professions Code.

§4502. Wood for Fuel Purposes.

Note • History

NOTE

Authority cited: Sections 12027 and 12107.1, Business and Professions Code. Reference: Section 12107.1, Business and Professions Code.

HISTORY

1. Renumbering and amendment of former section 4502 to section 4531 filed 7-12-90; operative 8-11-90 (Register 90, No. 35).

§4503. Gravimetric Testing of Fluid Products and Products Sold by Count.

Note • History

Products sold by fluid measure or by count may be tested gravimetrically, by weights and measures officials, using procedures established by the Director. These procedures shall incorporate a statistical sampling plan established by Title 4, Chapter 8, Subchapter 2, Article 5, Sections 2930 through 2933.3.20 inclusive.

NOTE

Authority cited: Sections 12027, 12608 and 12609, Business and Professions Code. Reference: Sections 12608 and 12609, Business and Professions Code.

HISTORY

1. Editorial correction filed 1-6-84 (Register 84, No. 1).

Article 2. Uniform Packaging and Labeling Regulation

§4510. Application.

Note • History

The packaging and labeling regulations as set forth in the most recent publication of the National Institute of Standards and Technology's Handbook 130, Uniform Laws and Regulations are herein adopted by reference as the packaging and labeling requirements for packaged commodities with the following exceptions and additional requirements.

NOTE

Authority cited: Sections 12027 and 12609, Business and Professions Code. Reference: Sections 12601 and 12609, Business and Professions Code.

HISTORY

1. Repealer and new article 2 and section filed 10-3-94; operative 11-2-94 (Register 94, No. 40). For prior history, see Register 87, No. 24.

§4511. Exceptions.

Note • History

The following sections in the Uniform Packaging and Labeling Regulation in the National Institute of Standards and Technology Handbook 130 are not adopted or incorporated by reference.

(a) Section 2.11. Petroleum Products.

(b) Section 6.13. Character of Declaration: Average.

(d) Section 12. Variation to be Allowed.

(e) Section 13. Retail Sale Price Representations.

(f) Section 14. Revocation of Conflicting Regulations.

(g) Section 15. Effective Date.

NOTE

Authority cited: Sections 12027 and 12609, Business and Professions Code. Reference: Sections 12601 and 12609, Business and Professions Code.

HISTORY

1. Repealer and new section filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4512. Additional Requirements.

Note • History

The following requirements apply in addition to those contained within the Uniform Packaging and Labeling Regulation in the National Institute of Standards and Technology Handbook 130.

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603 and 12610, Business and Professions Code.

HISTORY

1. Repealer and new section filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4512.1. Polyethylene Products.

Note • History

The declaration of quantity of contents for polyethylene products shall be as follows:

(a) Consumer and nonconsumer packages of sheeting and film.

- Length and width.

- Area in square meters or square feet.

- Thickness in micrometers and mils.

(1 mil = 0.001 in = 25.4 micrometers)

- Weight.

(b) The following consumer products sold at retail shall be labeled in the following terms:

(1) Food wrap.

- Length and width.

- Area in square meters or square feet.

(2) Lawn and trash bags.

- Count.

- Dimensions.

- Thickness in micrometers and mils.

- Capacity.

(3) Food and sandwich bags.

- Count.

- Dimensions.

- Capacity (except for fold-over sandwich bags).

- Count.

- Dimensions.

- Thickness in micrometers or mils.

- Weight.

- Capacity.

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603 and 12610, Business and Professions Code.

HISTORY

1. New section filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4512.2. Animal Bedding.

Note • History

Packaged animal bedding of all kinds, except for baled straw, shall be labeled by volume, that is by cubic meter, liter, or milliliter, and by the cubic yard, cubic foot, or cubic inch. If the commodity is packaged in a compressed state, the quantity declaration shall include both the quantity in the compressed state and the usable quantity that can be recovered. Example: “250 ml - expands to 500 ml (500 cu in expands to 1000 cu in).”

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603 and 12610, Business and Professions Code.

HISTORY

1. New section filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4512.3. Enforcement.

Note • History

A sealer may by written order forbid the display for sale, sale, or transport of any package which does not bear the labeling required by Chapter 6, of Division 5 of the Business and Professions Code.

NOTE

Authority cited: Sections 12027 and 12609, Business and Professions Code. Reference: Sections 12601, 12607, 12609 and 12611, Business and Professions Code.

HISTORY

1. New section filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4513. Declaration of Identity: Consumer Package.

Note • History

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Profession Code. Reference: Sections 12601, 12602, 12603, 12610 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4513.1. Parallel Identity Declaration: Consumer Package.

Note • History

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12610 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4514. Declaration of Identity: Nonconsumer Package.

Note • History

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12610 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4515. Declaration of Responsibility: Consumer and Nonconsumer Packages.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516. * Declaration of Quantity: Consumer Packages.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Editorial correction filed 1-6-84 (Register 84, No. 1).

2. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.1. * Largest Whole Unit.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.2. * Net Quantity.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.2.1. Use of “Net Weight.”

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.2.2. Lines of Print or Type.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.3. Terms: Weight, Liquid Measure, Dry Measure, or Count.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.3.1. Combination Declaration.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.4. Inch-Pound Units: Weight, Measure.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Amendment of heading and subsection (b) filed 5-27-87; operative 6-26-87 (Register 87, No. 24).

2. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.4.1. Symbols and Abbreviations.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

2. Editorial correction of Authority cite (Register 95, No. 8).

§4516.4.2. Units of Two or More Meanings.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.5. Metric Units: Weight, Measure.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Amendment of subsection (b) filed 5-27-87; operative 6-26-87 (Register 87, No. 24).

2. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.5.1. Symbols.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.6. Prescribed Units, Inch-Pound System.

History

HISTORY

1. Repealer of section heading filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.6.1. * Less than 1 Foot, 1 Square Foot, 1 Pound or 1 Pint.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Amendment of section number adding asterisk only filed 5-27-87; operative 6-26-87 (Register 87, No. 24).

2. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.6.2. * Weight: Dual Quantity Declaration.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Amendment of section number adding asterisk only filed 5-27-87; operative 6-26-87 (Register 87, No. 24).

2. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.6.3. Liquid Measure: Dual Quantity Declaration.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.6.4. Length Measure: Dual Quantity Declaration.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.6.5. Area Measure: Dual Quantity Declaration.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.6.6. Four Feet, Four Square Feet, Four Pounds, One Gallon, or More.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 1611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.6.7. Bidimensional Commodities.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.7. Prescribed Units, Metric System.

History

HISTORY

1. Repealer of section heading filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.7.1. * Less than 1 Meter, 1 Square Meter, 1 Kilogram, or 1 Liter.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Amendment of section number adding asterisk only filed 5-27-87; operative 6-26-87 (Register 87, No. 24).

2. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.7.2. One Meter, 1 Square Meter, 1 Liter or More.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.7.3. Bidimensional Commodities.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.8. * Count: Ply.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.9. Fractions.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.10. Supplementary Declarations.

History

HISTORY

1. Repealer of section heading filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.10.1. Supplementary Quantity Declarations.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12605, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.10.2. Combined Metric and Inch-Pound Declarations.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12605, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.10.3. Rounding.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12605, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4516.11. Qualification of Declaration Prohibited.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12605, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4517. Declaration of Quantity. Nonconsumer Packages; General.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4517.1. Location.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4517.2. Terms: Weight, Liquid Measure, Dry Measure, or Count.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4517.3. Inch-Pound Units: Weight, Measure.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Amendment of subsection (b) filed 5-27-87; operative 6-26-87 (Register 87, No. 24).

2. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4517.3.1. Symbols and Abbreviations.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4517.4. Metric Units: Weight, Measure.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Amendment of subsection (b) filed 5-27-87; operative 6-26-87 (Register 87, No. 24).

2. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4517.4.1. Symbols.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4517.5. * (Reserved)

History

HISTORY

1. Repealer of section number filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4518. Prominence and Placement: Consumer Packages.

History

HISTORY

1. Repealer of section heading filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4518.1. General.

Note • History

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4518.1.1. Location.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4518.1.2. Style of Type or Lettering.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4518.1.3. Color Contrast.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4518.1.4. Free Area.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4518.1.5. Parallel Quantity Declaration.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4518.2. Calculation of Area of Principal Display Panel for Purposes of Type Size.

Note • History

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Editorial correction of subsection (2) (Register 84, No. 1).

2. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4518.2.1. Minimum Height of Numbers and Letters.

Note • History

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4518.2.2. Numbers and Letters: Proportion.

Note • History

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4519. Prominence and Placement: Nonconsumer Packages.

Note • History

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520. Requirements: Specific Consumer Commodities, Nonconsumer Commodities, Packages, Containers.

History

HISTORY

1. Repealer of section heading filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.1. Display Card Package.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.2. * (Reserved)

History

HISTORY

1. Repealer of section number filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.3. Aerosols and Similar Pressurized Containers.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Editorial correction of printing error (Register 84, No. 1).

2. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.4. Multi-Unit Packages.

Note • History

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.5. Combination Packages.

Note • History

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.6. Variety Packages.

Note • History

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.7. Cylindrical Containers.

Note • History

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.8. Measurement of Container-Type Commodities, How Expressed.

History

HISTORY

1. Repealer of section heading filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.8.1. * General.

Note • History

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.8.2. Capacity.

Note • History

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.8.3. * Terms.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.8.4. * Polyethylene Commodities.

History

HISTORY

1. Repealer of section heading filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.8.4.1. * Polyethylene Sheeting, Bags, Lay Flat Tubing, Sheets, Drop Cloths and Tarpaulins.

Note • History

NOTE

Authority cited: Sections 12027 and 12609, Business and Professions Code. Reference: Section 12601, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.8.4.2. * Quantity Declarations.

Note • History

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604 and 12610, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.8.4.3. * Exemptions.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604 and 12610, Business and Professions Code.

HISTORY

1. Amendment of subsections (a) and (b) filed 5-27-87; operative 6-27-87 (Register 87, No. 24).

2. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.9. Textile Products, Threads, and Yarns.

History

HISTORY

1. Repealer of section heading filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.9.1. * Wearing Apparel.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.9.2. * Textiles.

Note • History

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Editorial correction of subsection (c) filed 1-6-84 (Register 84, No. 1).

2. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.9.3. * (Reserved)

History

HISTORY

1. Repealer of section number filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.9.4. * Exemption: Variety Textile Packages.

Note • History

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.9.5. * Sewing Threads, Handicraft Threads, and Yarns.

Note • History

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4520.10. * Packaged Seed.

Note • History

NOTE

Authority cited: Sections 12027, 12603, 12609 and 12610, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521. Exemptions.

History

HISTORY

1. Repealer of section heading filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.1. General.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.2. * Random Packages.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.3. * Small Confections.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.4. * Individual Servings.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.5. * Cuts, Plugs, and Twists of Tobacco and Cigars.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.6. * Reusable (Returnable) Glass Containers.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.7. * Cigarettes and Small Cigars.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.8. * Packaged Commodities with Labeling Requirements Specified in Federal Law.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.9. * Fluid Dairy Products, Ice Cream, and Similar Frozen Desserts.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.10. Single Strength and Less Than Single Strength Fruit Juice Beverages, Imitations Thereof, and Drinking Water.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.11. * Soft-Drink Bottles.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.12. Multi-Unit Soft-Drink Packages.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.13. Butter.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.14. * Eggs.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.15. * Flour.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.16. * Small Packages.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.17. * Decorative Containers.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.18. * Combination Packages.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.19. * Margarine.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.20. * Corn Flour and Corn Meal.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.21. * Prescription and Insulin-Containing Drugs.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.22. * Camera Film.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.23. * Paints and Kindred Products.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.24. Automotive Cooling System Antifreeze.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609, 12611 and 13705, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.25. * Motor Oils.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609, 12611 and 13480, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.26. * Pillows, Cushions, Comforters, Mattress Pads, Sleeping Bags, and Similar Products.

History

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.27. Commodities' Variable Weights and Sizes.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.28. Packaged Commodities Sold by Count.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4521.29. * Fishing Lines and Reels.

Note • History

NOTE

Authority cited: Sections 12027, 12603 and 12609, Business and Professions Code. Reference: Sections 12601, 12602, 12603, 12604, 12608, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

§4522. * Enforcement.

Note • History

NOTE

Authority cited: Sections 12027 and 12609, Business and Professions Code. Reference: Sections 12601, 12607, 12609 and 12611, Business and Professions Code.

HISTORY

1. Repealer filed 10-3-94; operative 11-2-94 (Register 94, No. 40).

Article 3. Wood for Fuel Purposes

§4530. Definitions.

Note • History

The following definitions apply to this article only and do not affect the provisions of any other section, article, or chapter. Nothing in this article shall be deemed to apply to charcoal sold for fuel purposes.

(a) Bulk Firewood. All firewood which is not packaged and all packaged firewood of quantities greater than four cubic feet.

(b) Cord. The cord is the standard measure for bulk firewood, and shall contain 128 cubic feet of wood, ranked and well-stowed.

(d) Kindling. Small pieces of wood that are readily ignited and primarily used in starting a fire.

(e) Manufactured Products. Compressed or non-compressed products for fuel purposes made from, but not limited to, sawdust, treated or untreated chips or chunks, cut or split wood.

(f) Other Terms. The use of the terms “face cord,” “rack,” “rick,” “tier,” “pile,” or “truck-load,” or any other term describing a unit of measure different than those specified in this article shall be prohibited.

(g) Ranked and Well-stowed. Wood placed in a row or rows, with individual pieces touching and parallel to each other and stacked in a compact manner minimizing spaces between pieces.

(h) Sell. “Sell” has the same meaning as defined in Business and Professions Code section 12009.

(i) Wood for Fuel Purposes. Any kindling, logs, boards, timbers, slab wood,mill wood, manufactured products, cut timber, or other wood, split or not split, used for or intended to be used for campfires, or for heating in fireplaces or stoves, or for cooking.

NOTE

Authority cited: Sections 12024.11, 12027 and 12107.1, Business and Professions Code. Reference: Sections 12024.11 and 12107.1, Business and Professions Code.

HISTORY

1. New section filed 7-12-90; operative 8-11-90 (Register 90, No. 35).

2. Amendment of first paragraph, new subsections (a) and (c), and amendment of newly designated subsections (b) and (d) filed 9-25-95; operative 3-1-96 (Register 95, No. 39).

§4531. Method of Sale.

Note • History

Wood, for fuel purposes, shall be sold or offered for sale by cord measure, fraction of the cord, or percentage of the cord, excepting as hereinafter provided.

(a) Wood for fuel purposes, other than manufactured products, when sold in quantities less than one-eight cord, shall be sold by the cubic foot or fraction of the cubic foot.

(b) Manufactured products for fuel purposes shall be sold as follows:

(1) Compressed products having any dimension greater than six inches shall be sold by weight and count.

(2) Compressed products not greater than six inches in any dimension shall be sold by weight.

(3) Non-compressed products not greater than six inches in any dimension shall be sold by the cubic foot or fraction of the cubic foot.

NOTE

Authority cited: Sections 12024.11, 12027 and 12107.1, Business and Professions Code. Reference: Sections 12024.11 and 12107.1, Business and Professions Code.

HISTORY

1. Renumbering and amendment of former section 4502 to section 4531, and numbering of undesignated paragraphs into subsections (a) and (b) filed 7-12-90; operative 8-11-90 (Register 90, No. 35).

§4532. Invoice.

Note • History

A sales invoice or delivery ticket shall be presented by the seller to the purchaser whenever any non-packaged wood for fuel purposes is sold. The sales invoice or delivery ticket shall contain at least the name and address of the seller, the date purchased or delivered, the quantity purchased, and the price of the quantity purchased.

NOTE

Authority cited: Sections 12024.11, 12027 and 12107.1, Business and Professions Code. Reference: Sections 12024.11 and 12107.1, Business and Professions Code.

HISTORY

1. New section filed 7-12-90; operative 8-11-90 (Register 90, No. 35).

§4533. Kindling.

Note • History

Whenever kindling is included as part of the represented quantity and is ten percent or more by volume of the represented quantity, the percentage of kindling, within five percent by volume, shall be stated on the label or sales invoice or delivery ticket.

NOTE

Authority cited: Sections 12024.11, 12027 and 12107.1, Business and Professions Code. Reference: Sections 12024.11 and 12107.1, Business and Professions Code.

HISTORY

1. New section filed 7-12-90; operative 8-11-90 (Register 90, No. 35).

§4534. Identity.

Note • History

Whenever there is a representation as to the species, species group of origin, or the type of wood, the representation or statement of identity shall be consistent with one of the following:

(a) If a common name is stated, all wood shall be of that species (e.g. White Oak, Jeffery Pine, Grand Fir, etc.).

(b) If a group is stated, all wood shall be of that same group of origin (e.g. oak, pine, fir, etc.).

(c) If either hardwood or softwood is stated, all wood must be of that type and the common name or group of origin for any wood present must be stated. If there is a mixture of types (hardwood and softwood), the percentage of each, within 10% by volume of each, shall be stated. The volume of each shall be determined as per the volumetric test procedures set forth below.

NOTE

Authority cited: Sections 12024.11, 12027 and 12107.1, Business and Professions Code. Reference: Sections 12024.11 and 12107.1, Business and Professions Code.

HISTORY

1. New section filed 7-12-90; operative 8-11-90 (Register 90, No. 35).

2. Amendment of subsection (c) filed 9-25-95; operative 3-1-96 (Register 95, No. 39).

§4535. Volumetric Test Procedure for Bulk Firewood.

History

HISTORY

1. New section filed 9-25-95; operative 3-1-96 (Register 95, No. 39).

§4535.1. Stacking:

Note • History

(a) Firewood shall be measured when ranked and well-stowed, and stacked in a geometrical shape that will facilitate volume calculations (i.e., rectangular, triangular or combination of the two). The stack may need some adjustment to meet these requirements. (See Figure 1.)

Note: If the wood is stacked in multiple rows, the measurements of the individual rows are used to determine the volume of the total stack.

Figure 1.

Cord of 128 cubic feet ranked and well-stowed.

Same cord of 128 cubic feet that is not ranked and well-stowed. Shows overage!

NOTE

Authority cited: Sections 12024.11, 12027 and 12107.1, Business and Professions Code. Reference: Sections 12024.11 and 12107.1, Business and Professions Code.

HISTORY

1. New section filed 9-25-95; operative 3-1-96 (Register 95, No. 39).

§4535.2. Measuring:

Note • History

Note: A calibrated linear measure shall be used. All measurements shall be taken in increments no greater than 1/8 inch and rounded up. More measurements than specified may be taken.

(a) Measurement of the rectangular portion of a stack.

(1) Average height determination of a rectangular stack: Starting at one end of the stack, measure the height of the stack, on both sides, at approximately 2 foot intervals, along the length of the stack, or at four proportionately equal intervals if the stack is less than 6 feet long. (Minimum of 4 measurements on each side shall be taken.) Calculate the average height. (See Figure 2.)

Figure 2. Height of Stack.

Average Height = (41” + 41.5” + 43” + 42.5” + 41”) ÷ 5 = 41.8 inches

(2) Average length of a rectangular stack determination: Starting at the base, measure the length of the stack at approximate 1 foot intervals up to the top, or at four proportionately equal intervals if the stack is less than 3 feet high. (Minimum of 4 measurements shall be taken.) Calculate the average length. (See Figure 3.)

Figure 3. Length of Stack.

Average Length = (106.5” + 109” + 107.5” + 105”) ÷ 4 = 107 inches

(3) Average width of stack determination: This dimension is calculated by averaging the length of individual pieces of wood. A representative random sample of the individual pieces shall be selected. If a triangular stack is combined with a rectangular stack, the sample shall be selected randomly from the entire stack. The minimum size of the sample shall be as shown in the following table.

Measure the length of the pieces, measuring from center-to-center, as shown in Figure 4. Calculate the average length.

Figure 4. Length of Angle-Cut Log.

Average Length = (18” + 18.25” + 19” + 17.75” + 18.5” + 18”) ÷ 6 = 18.25 inches

(b) Measurement of the triangular portion of a stack:

(1) Measure the height and the base of the triangular portion. (See Figure 5.)

Figure 5. Triangular Measurements.

(2) Average width of the stack is as previously calculated in Section 4535.2.(a)(3).

NOTE

Authority cited: Sections 12024.11, 12027 and 12107.1, Business and Professions Code. Reference: Sections 12024.11 and 12107.1, Business and Professions Code.

HISTORY

1. New section filed 9-25-95; operative 3-1-96 (Register 95, No. 39).

§4535.3. Calculate the volume:

Note • History

(a) Volume of the rectangular portion = average height of the stack x average length of the stack x average width of the stack.

(Example: 41.8” x 107” x 18.25” = 81,624.95 cubic inches.)

(b) Volume of the triangular portion = height x base length x average width of the stack divided by 2.

(Example: 41” x 33” x 18.25” ÷ 2 = 12,346.125 cubic inches.)

(Example: 81,624.95 cu in + 12,346.125 cu in = 93,971.075 cubic inches.)

Note: For stacks with multiple rows, the volume of the total stack is the sum of the volumes of the individual rows.

(d) Volume of stack in cords = volume of stack in cubic inches divided by 221.184 cubic inches per cord.

(Example: 93,971.075 cu. in. ÷ 221,184 cu. in. per cord = 0.42 cords.)

(e) Percentage of the cord = decimal fraction of the cord times 100.

(Example: 0.42 cords x 100 = 42% [Percent].)

NOTE

Authority cited: Sections 12024.11, 12027 and 12107.1, Business and Professions Code. Reference: Sections 12024.11 and 12107.1, Business and Professions Code.

HISTORY

1. New section filed 9-25-95; operative 3-1-96 (Register 95, No. 39).

§4536. Volumetric Test Procedure for Packaged Firewood With a Labeled Net Content of Four Cubic Feet or Less.

Note • History

Note: A calibrated linear measure shall be used. All measurements shall be taken in increments no greater than 1/8 inch and rounded up, except as noted in 4536.1(a).

Unless otherwise indicated, all measurements are to be taken without rearranging the wood or removing it from the package.

If the layers of wood are cross hatched or not ranked in discrete sections in the package, the wood shall be removed from the package and measured according to the procedures prescribed in Sections 4535.1 through 4535.3 of this regulation.

Lot compliance shall be determined using the sampling procedures in Chapter 11 of this Division, except that the maximum allowable variations for individual packages labeled by volume shall not be applied to packaged firewood.

NOTE

Authority cited: Sections 12024.11, 12027 and 12107.1, Business and Professions Code. Reference: Sections 12024.11 and 12107.1, Business and Professions Code; and California Hotwood, Inc. v. Henry Voss, et al. (Super. Ct. San Joaquin County, 1991, No. 234613).

HISTORY

1. New section filed 9-25-95; operative 3-1-96 (Register 95, No. 39).

§4536.1. Boxed Firewood.

Note • History

(a) Average height determination of wood within the box: Open the box and measure the internal height of the box (h). Take three measurements (d) along each end of the stack by measuring from the bottom of a straight edge placed across the top of the box to the highest point on the two outermost top pieces of wood and the center-most top piece of wood rounding measurements down to the nearest 1/8 inch. However, if there are obviously pieces missing out of the top layer of wood, additional height measurements shall be taken at the highest point of the uppermost pieces of wood located at the midpoints between the three measurements on each end of the stack. (See Figure 6.) The average height of the stack is calculated by averaging these measurements and subtracting from the internal height of the box.

Figure 6.

Calculate the average height of stack.

Average Height of Stack = h - [(d1 + d2 + d3 + d4 + d5 + d6) ÷ 6]

(b) Average width of the wood within the box: Determine the width of the stack of wood at three places along the top of the stack. These measurements shall be taken on both ends and in the middle of the box, measuring the inside distance from one side of the box to the other, perpendicular to the long axis of the wood. (See Figure 7.)

Figure 7.

Calculate the average width.

Average Width = (W1 + W2 + W3) ÷ 3

(c) Average length of the pieces of wood: Remove the wood from the box and select the five pieces with the greatest girth. Measure the length of the five pieces, measuring from center-to-center, as shown in Figure 8.

Figure 8.

Calculate the average length of the five pieces.

Average Length = (L1 + L2 + L3 + L4 + L5) ÷ 5

(d) Calculate the volume of the wood within the box.

(e) For boxes of wood which are packed with the wood ranked in two discrete sections, which are perpendicular to each other, calculate the volume of wood in the box by determining the average height, width, and length as in (a), (b), and (c) above for each discrete section and totaling the calculated volumes of the two sections. Except that the width measurement for V2 shall be taken from the inside edge of the box adjacent to V2 to the plane separating V1 and V2. (See Figure 9.)

Figure 9.

TOTAL VOLUME = V1 + V2

NOTE

Authority cited: Sections 12024.11, 12027 and 12107.1, Business and Professions Code. Reference: Sections 12024.11 and 12107.1, Business and Professions Code; and California Hotwood, Inc. v. Henry Voss, et al. (Super. Ct. San Joaquin County, 1991, No. 234613).

HISTORY

1. New section filed 9-25-95; operative 3-1-96 (Register 95, No. 39).

2. Editorial correction of formulas in subsections (a)-(d) (Register 96, No. 10).

§4536.2. Bundles and Bags of Firewood.

Note • History

(a) Average area of ends: Secure a strap around each end of the bundle or bag of wood to prevent movement during testing and to provide a definite perimeter. Set one end of the bundle or bag on tracing paper large enough to cover the end completely. Draw a line around the perimeter of the bundle or bag on the tracing paper. Transfer the tracing paper to a template graduated in square inches. Count the number of square inches enclosed within the perimeter line (portions of square inches not completely within the perimeter line shall be estimated to the nearest one quarter square inch). Repeat this process on the opposite end of the bundle or box. Calculate the average area.

Average Area = (Area #1 + Area #2) ÷ 2

Two thin straps, one inch to two inches wide, with connecting buckles, and long enough to easily encircle the bundle or bag, should be used to secure the wood.

(b) Average length of the pieces of wood: Select the five pieces with the greatest girth. Measure the length of the pieces as shown in Figure 8 for boxed wood. Calculate the average length of the pieces of wood.

Average Length = (L1 + L2 + L3 + L4 + L5) ÷ 5

NOTE

HISTORY

1. New section filed 9-25-95; operative 3-1-96 (Register 95, No. 39).

2. Editorial correction of formula in subsection (c) (Register 96, No. 10).

Chapter 11. Sampling and Testing Procedures for Determining the Net Contents of Packaged Commodities

Article 1. Definitions

§4600. National Uniformity.

Note • History

Sampling and testing procedures for determining the net contents of packaged commodities shall conform to the latest requirements set forth in the National Institute of Standards and Technology Handbook 133, “Checking the Net Contents of Packaged Goods,” which is herein incorporated by reference. Copies of Handbook 133 may be purchased from the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Section 12211, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer of article heading and section and new section filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4601. Commodity.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4602. Declaration of Identity.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4603. Distribution.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4604. Error.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4605. Established Gray Area (EGA).

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4606. Gross Weight.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4607. Inspection Lot.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4608. Lot.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4609. Maximum Allowable Variation (MAV).

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4610. Moisture Loss.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4611. Moisture Loss Allowance (MLA).

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4612. Net Weight.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4613. [Reserved].

§4614. Packaged Commodity.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4615. Random Pack.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4616. Random Sample.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4617. Range (R).

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4618. Sample.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4619. Sample Error Limit (SEL).

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4620. Sample Size.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4621. Standard of Identity.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4622. Standard Pack.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4623. [Reserved].

§4624. Subgroup.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4625. Tare.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4626. Unreasonable Error.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

Article 2. Sampling and Testing Procedures for Determining the Net Contents of Packaged Commodities

§4650. Application.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer of article heading and section filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4651. (Step 1).

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4652. Procedures Common to All Groups.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction deleting duplicate text (Register 92, No. 25).

3. Editorial correction of section heading and restoration of text (Register 95, No. 27).

4. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4652.1. (Step 2) Sampling Criteria.

Note • History

Nothing in this procedure shall prohibit an official from increasing the sample size to one of the larger sample sizes in Table 1 provided the tare sample size, and the allowable number of unreasonable errors, and the correction factor are adjusted accordingly.

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4652.2. (Step 3) Sample Selection.

Note • History

Note: The marked contents of a random pack lot is the average labeled net contents of the sample.

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4652.3. (Step 4) Average Tare Determination.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing error in subsection (a) (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4652.4. (Step 5) Recording of Package Errors.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4652.5. (Step 6) Total Error (TE) Determination.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4652.6. Continuing Procedures for Group A, B, or C.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4653. Additional Procedures for Group A Type Commodities.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction deleting duplicate text (Register 92, No. 25).

3. Editorial correction of section heading and restoration of text (Register 95, No. 27).

4. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4653.1. (Step 7) Average Error Determination.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4653.2. (Step 8) Determination of Lot Compliance.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Editorial correction of subsection (b)(4) (Register 95, No. 8).

4. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4653.3. 100 Percent Inspection.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4654. Additional Procedures for Group B Type Commodities.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction deleting duplicate text (Register 92, No. 25).

3. Editorial correction of section heading and restoration of text (Register 95, No. 27).

4. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4654.1. (Step 7) Computation of Gray Area.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing error (Register 92, No. 25).

3. Editorial correction (Register 95, No. 8).

4. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4654.2. (Step 8) Average Error Determination.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4654.3. (Step 9) Determination of Lot Compliance.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4654.4. 100 Percent Inspection.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4655. Additional Procedures for Group C Type Commodities.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction deleting duplicate text (Register 92, No. 25).

3. Editorial correction of section heading and restoration of text (Register 95, No. 27).

4. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4655.1. (Step 7) Computation of Moisture Loss Allowance.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4655.2. (Step 8) Average Error Determination.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4655.3. (Step 9) Determination of Lot Compliance.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4655.4. 100 Percent Inspection.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4656. Off Sale Procedure.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction of printing errors (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

§4657. Enforcement Action on Lots of 250 or Fewer Packages.

Note • History

NOTE

Authority cited: Sections 12027, 12211 and 12609, Business and Professions Code. Reference: Sections 12211 and 12609, Business and Professions Code.

HISTORY

1. New section filed 12-20-90; operative 1-19-91 (Register 91, No. 9).

2. Editorial correction reinserting Notes in Tables 1-3 and 5-7 (Register 92, No. 25).

3. Repealer filed 1-5-96; operative 1-5-96 pursuant to Government Code section 11343.4(d) (Register 96, No. 1).

Chapter 12. Administration

Article 1. Permit Reform Act

§4700. Permit Processing Times (including Licenses, Permits, Registrations and Certificates).

Note • History

(a) Within the number of calendar days of receipt of an application for a permit shown in column A of subsection (c), the Division shall inform the applicant in writing that the application is either complete and accepted for filing, or that it is deficient, and what specific information or documentation is required to complete the application. An application is considered complete if all necessary fees and information required by the application form have been submitted.

(b) Within the number of calendar days after receipt of a complete application, as shown in column B of subsection (c), the Department shall approve or disapprove the application.

(c) The Division's minimum, median, and maximum time periods, in calendar days, for processing an application from the receipt of the initial application to the final decision, based on the Department's actual performance during the two years immediately preceding the proposal of this section, are shown in columns C, D, and E of the chart which follows.

A B C D E

Maximum time for Maximum time after

notifying that application receipt of a complete ACTUAL DAYS TO PROCESS

is complete application to issue BASED ON PRIOR TWO YEARS

or deficient or deny permit Minimum Median Maximum

Permit Type (Days) (Days) (Days)

Device Repairman Registration 30 35 1 6 52

-- Renewal 7 60 1 17 66

Weighmaster License 15 45 2 12 84

-- Renewal 45 45 2 12 84

NOTE

Authority cited: Section 15376, Government Code; and Section 12027, Business and Professions Code. Reference: Section 15376, Government Code.

HISTORY

1. Change without regulatory effect pursuant to section 100, Title 1, California Code of Regulations adding section 4700 filed 5-2-90; operative 5-2-90 (Register 90, No. 24).

§4701. Appeal Procedure.

Note • History

(a) The following information shall be included on application forms for all Department permits subject to Government Code sections 15374-15378:

“The Department of Food and Agriculture has established time periods for the processing of permit applications, in compliance with Government Code section 15374-15378. Failure to comply with these time periods may be appealed to the Secretary of Food and Agriculture, 1220 N Street, P.O.Box 942871, Sacramento, CA 94271-0001, pursuant to regulations set forth in Title 4, California Code of Regulations, section 4701. Under certain circumstances, the Secretary may order that the applicant receive a reimbursement of filing fees.”

(b) An applicant whose application for a permit has not been processed by the Department within the time periods established by section 4700 may appeal in writing to the Secretary of the Department of Food and Agriculture. The appeal shall set forth a concise statement of facts and chronology of events regarding the application. An appeal concerning a permit application on which a final decision has been made must be filed within 30 days of the date the applicant was notified of the decision.

(c) The Secretary shall promptly review an appeal filed under this section and, shall issue a decision within 30 days after conducting any investigation of the matter which the Secretary deems appropriate.

(d) If the Secretary finds that a program exceeded the time limit for informing the permit applicant that an application is complete or is deficient and requires additional information to be processed, the Secretary shall direct the program to make its determination by a specified date and so inform the applicant.

(e) The time period within which the Department must make a decision to issue or deny the permit commences with the date the complete application is received. If the Secretary finds that the Department exceeded the time period for acting on a completed application without the good cause defined by Government Code section 15376(h), all filing fees paid by the permit applicant will be refunded.

NOTE

Authority cited: Sections 15376 and 15378, Government Code; and Section 12027, Business and Profession Code. Reference: Sections 15376 and 15378, Government Code.

HISTORY

1. Change without regulatory effect pursuant to section 100, Title 1, California Code of Regulations adding section 4701 filed 5-2-90; operative 5-2-90 (Register 90, No. 24).

2. Change without regulatory effect amending section filed 2-28-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 9).

Article 2. Weights and Measures Penalty Guidelines

§4800. Notice of Proposed Action and Disposition.

Note • History

(a) When a county sealer takes administrative action, the person charged with a violation(s) shall be notified of the proposed penalty(s) and the right to request a hearing. The notification shall also include the right to appeal to the Secretary pursuant to the procedures provided in Section 12015.3(c) or Section 13302 as appropriate of the Business and Professions Code.

(b) When the State Sealer takes administrative action, the person charged with the violation(s) shall be notified of the proposed penalty(s), and the right to request a hearing. The notification shall also include the right to have the decision reviewed, within 30 days of receiving the sealer's decision, pursuant to Section 12015.3(c) of the Business and Professions Code.

(c) When a respondent in an administrative action agrees to stipulate to the notice of proposed action, a signed stipulation with the payment of the proposed administrative penalty shall be returned to the county/State Sealer within 45 days of the postmark of the notice of proposed action. If the stipulation and payment of the proposed administrative penalty are not received within 45 days, the county/State Sealer may file a certified copy of a final decision that directs the payment of a civil penalty with the clerk of the superior court of any county, pursuant to Section 12015.3(d) of Business and Professions Code.

(d) If an administrative hearing is requested, a proposed decision and order shall be made by a hearing officer within 60 days of the conclusion of the hearing. The final decision and order shall be made by the sealer. This order will be mailed to the respondent. Any penalty imposed shall be due and payable within 45 days of the postmark of such order. If a respondent fails to pay the penalty and fails to timely file a written appeal pursuant to Business and Professions Code Sections 12015.3(c) or 13302(c), the sealer may take action as provided in Business and Professions Code Sections 12015.3(d) or 13302(d). Action may be taken to collect the penalty and the collection costs actually incurred.

(e) In the event that a respondent fails to comply with the provisions of Business and Professions Code Sections 12015.3 or 13302, the sealer may take the action proposed without a hearing. This action may include collection of the penalty and the collection costs actually incurred.

NOTE

Authority cited: Sections 12015.3(b) and 13302(b), Business and Professions Code. Reference: Sections 12015.3(b) and 13302(b), Business and Professions Code.

HISTORY

1. New article 2 and section filed 4-8-96; operative 5-8-96 (Register 96, No. 15).

2. Amendment of section and Note filed 7-20-2011; operative 8-19-2011 (Register 2011, No. 29).

§4801. Administration.

Note • History

(a) When a county sealer initiates an action, the sealer shall send a copy of the notice of proposed action to the State Sealer at the time of notice to the person charged with the violation(s). Additionally, the county sealer shall inform the State Sealer of violations for which penalties have been assessed. On at least an annual basis, the State Sealer shall inform county sealers throughout the State of violations for which penalties have been assessed.

(b) When the State initiates the action, the State Sealer shall send a copy of the notice of proposed action to the county sealer involved. This notice shall also be sent, at the time of notice, to the person charged with the violation(s). The State Sealer shall also inform the county sealer in which the action has been initiated of violations for which penalties have been assessed.

NOTE

Authority cited: Section 12027, Business and Profession Code Reference: Section 12027, Business and Professions Code.

HISTORY

1. New section filed 4-8-96; operative 5-8-96 (Register 96, No. 15).

2. Amendment of section heading and Note filed 7-20-2011; operative 8-19-2011 (Register 2011, No. 29).

§4802. Penalty Guidelines.

Note • History

In applying Sections 12015.3 or 13302 of the Business and Professions Code, the sealer shall use the provisions of this section to determine the types of violations for which penalties may be assessed and the amounts of the penalties. Nothing in this article prohibits a sealer from seeking other relief through the criminal or civil court process in lieu of administrative action.

(a) For the purposes of this article, violation types are designated as “Category A,” “Category B” and “Category C.”

(1) “Category A” violations are violations in which there are actual, or there is the potential for actual false, deceptive, or misleading business practices, or significant monetary loss to consumers; or repeated violations of subparagraph (2), that occured within a two-year period at the same location and which resulted in an action and subsequent penalty. Included in this category are certain violations subject to prior legislated fine levels pursuant to Business and Professions Code Section 12729. The appropriate penalty range for these violations is $400-$1,000; however, such penalty shall not exceed the maximum criminal fine specified in the charging section.

(2) “Category B” violations are violations in which there is a reasonable potential for intermediate level of consumer or competitive harm; or repeated violations of subparagraph (3), that occurred within a two-year period at the same location and which resulted in an action and subsequent penalty. The appropriate penalty range for these violations is $150-$600; however, such penalty shall not exceed the maximum criminal fine specified in the charging section.

(3) “Category C” violations are primarily violations that would typically have a less egregious effect on consumers or equitable competition in the marketplace. Included in this category are other violations included in Business and Professions Code, Division 5 that are not included in Table A. The appropriate penalty range for these violations is $50-$250; however, such penalty shall not exceed the maximum criminal fine specified in the charging section.

(b) Table A shall be used to establish the level of severity of a particular violation and its corresponding penalty range. Except where specific violation parameters are provided, the violation column in Table A is an abbreviated description of the corresponding section in the California Business and Professions Code, Division 5, Weights and Measures.

NOTE

Authority cited: Sections 12015.3(a), 12027 and 13302(a), Business and Professions Code. Reference: Sections 12015.3(a), 12028 and 13302(a), Business and Professions Code.

HISTORY

1. New section and Table A filed 4-8-96; operative 5-8-96 (Register 96, No. 15).

2. Editorial correction of Table A (Register 96, No. 49).

3. Amendment of section and Note filed 7-20-2011; operative 8-19-2011 (Register 2011, No. 29).

Article 3. Applicant Verification Regulations

§4900. Limitations on Licensure of Aliens.

Note • History

(a) All eligibility requirements contained herein shall be applied without regard to the race, creed, color, gender, religion, or national origin of the individual applying for the public benefit. This section shall apply to any natural person applying to the Department of Food and Agriculture for issuance or renewal of a license listed in subsection (b) of this regulation.

(b) Pursuant to Section 411 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, (PRAWORA) (Pub. L. No. 104-193), (8 U.S.C.S. § 1621), and notwithstanding any other provision of this division, aliens who are not qualified aliens, nonimmigrant aliens under the Immigration and Nationality Act (INA) (8 U.S.C.S. § 1101 et seq.), or aliens paroled into the United States under Section 212(d)(5) of the INA (8 U.S.C.S. § 1182 (d)(5)), for less than one year, are not eligible to receive or hold licenses or registrations issued by the California Department of Food and Agriculture (the “Department”), Division of Measurement Standards for “county sealer,” “deputy county sealer,” “inspector,” “device repairman,” “device repair service” or “weighmaster” as set forth in Business and Professions Code Sections 12203, 12532 or 12703, except as provided in 8 U.S.C.S. Section 1621(c)(2). For the purposes of this regulation, the term “license” includes any license, registration or other indicia of authority issued by the Division of Measurement Standards pursuant to the statutes listed in this subsection.

(c) A qualified alien is an alien who, at the time he or she applies for, receives, or attempts to receive a license, is, under Section 431(b) & (c) of the PRAWORA (8 U.S.C.S. § 1641(b)), any of the following:

(1) An alien lawfully admitted for permanent residence under the INA (8 U.S.C.S. § 1101 et seq.).

(2) An alien who is granted asylum under Section 208 of the INA (8 U.S.C.S. § 1158).

(3) A refugee who is admitted to the United States under Section 207 of the INA (8 U.S.C.S. § 1157).

(4) An alien who is paroled into the United States under Section 212(d)(5) of the INA (8 U.S.C.S. § 1182(d)(5)) for a period of at least one year.

(5) An alien whose deportation is being withheld under Section 243(h) of the INA (8 U.S.C.S. § 1253(h)) (as in effect immediately before the effective date of Section 307 of division C of Public Law 104-208) or Section 241(b)(3) of such Act (8 U.S.C.S. § 1251(b)(3)) (as amended by Section 305(a) of division C of Public Law 104-208).

(6) An alien who is granted conditional entry pursuant to Section 203(a)(7) of the INA as in effect prior to April 1, 1980. (8 U.S.C.S. § 1153(a)(7)) (See editorial note under 8 U.S.C.S. § 1101, “Effective Date of 1980 Amendment.”)

(7) An alien who is a Cuban or Haitian entrant (as defined in Section 501(e) of the Refugee Education Assistance Act of 1980 (8 U.S.C.S. § 1522 note)).

(8) An alien who meets all of the conditions of subparagraphs (A), (B), (C) and (D) below:

(A) The alien has been battered or subjected to extreme cruelty in the United States by a spouse or a parent, or by a member of the spouse's or parent's family residing in the same household as the alien, and the spouse or parent of the alien consented to, or acquiesced in, such battery or cruelty. For purposes of this subsection, the term “battered or subjected to extreme cruelty” includes, but is not limited to being the victim of any act or threatened act of violence including any forceful detention, which results or threatens to result in physical or mental injury. Rape, molestation, incest (if the victim is a minor), or forced prostitution shall be considered as acts of violence.

(B) There is a substantial connection between such battery or cruelty and the need for the license to be issued or retained, in the opinion of the Department. For purposes of this subsection, the following circumstances demonstrate a substantial connection between the battery or cruelty and the need for the license:

1. The license is needed to enable the alien to become self- sufficient following separation from the abuser.

2. The license is needed to enable the alien to escape the abuser and/or the community in which the abuser lives, or to ensure the safety of the alien from the abuser.

3. The license is needed due to a loss of financial support resulting from the alien's separation from the abuser.

4. The license is needed because the battery or cruelty, separation from the abuser, or work absences or lower job performance resulting from the battery or extreme cruelty or from legal proceedings relating thereto (including resulting child support, child custody, and divorce actions) cause the alien to lose his or her job or to earn less or to require the alien to leave his or her job for safety reasons.

5. The license is needed because the alien requires medical attention or mental health counseling, or has become disabled, as a result of the battery or extreme cruelty.

6. The license is needed because the loss of a dwelling or source of income or fear of the abuser following separation from the abuser jeopardizes the alien's ability to care for his or her children (e.g., inability to house, feed, or clothe children or to put children into day care for fear of being found by the abuser).

7. The license is needed to alleviate nutritional risk or need resulting from the abuse or following separation from the abuser.

8. The license is needed to provide medical care during a pregnancy resulting from the abuser's sexual assault or abuse of, or relationship with, the alien and/or to care for any resulting children.

9. Where medical coverage and/or health care services are needed to replace medical coverage or health care services the alien had when living with the abuser.

1. status as a spouse or child of a United States citizen pursuant to clause (ii), (iii), or (iv) of Section 204(a)(1)(A) of the INA (8 U.S.C.S. § 1154(a)(1)(A)(ii), (iii) or (iv)),

2. classification pursuant to clause (ii) or (iii) of Section 204(a)(1)(B) of the INA (8 U.S.C.S. § 154(a)(1)(B)(ii) or (iii)),

3. suspension of deportation and adjustment of status pursuant to section 244(a)(3) of the INA (8 U.S.C.S. sec. 1254) as in effect prior to April 1, 1997 [Pub.L. 104-208, § 501 (effective Sept. 30, 1996, pursuant to § 591); Pub.L. 104-208, § 304 (effective April 1, 1997, pursuant to § 309); Pub.L. 105-33, § 5581 (effective pursuant to § 5582)] (incorrectly codified as “cancellation of removal under Section 240A of such Act [8 U.S.C.S. § 1229b] (as in effect prior to April 1, 1997).

4. status as a spouse or child of a United States citizen pursuant to clause (i) of Section 204(a)(1)(A) of the INA (8 U.S.C.S. § 1154(a)(1)(A)(i)) or classification pursuant to clause (i) of Section 204(a)(1)(B) of the INA (8 U.S.C.S. § 1154(a)(1)(B)(i)), or

5. cancellation of removal pursuant to Section 204A(b)(2) of the INA (8 U.S.C.S. § 1229b(b)(2)).

(D) For the term of the license, the individual responsible for the battery or cruelty does not reside in the same household or family eligibility unit as the individual subjected to the battery or cruelty.

(9) An alien who meets all of the conditions of subparagraphs (A), (B), (C), (D) and (E) below:

(A) The alien has a child who has been battered or subjected to extreme cruelty in the United States by a spouse or a parent of the alien (without the active participation of the alien in the battery or cruelty), or by a member of the spouse's or parent's family residing in the same household as the alien, and the spouse or parent consented or acquiesced to such battery or cruelty. For purposes of this subsection, the term “battered or subjected to extreme cruelty” includes, but is not limited to, being the victim of any act or threatened act of violence including any forceful detention, which results or threatens to result in physical or mental injury. Rape, molestation, incest (if the victim is a minor), or forced prostitution shall be considered as acts of violence.

(B) The alien did not actively participate in such battery or cruelty.

(C) There is a substantial connection between such battery or cruelty and the need for the license to be issued or retained, in the opinion of the Department. For purposes of this subsection, the following circumstances demonstrate a substantial connection between the battery or cruelty and the need for the license:

1. The license is needed to enable the alien's child to become self- sufficient following separation from the abuser.

2. The license is needed to enable the alien's child to escape the abuser and/or the community in which the abuser lives, or to ensure the safety of the alien's child from the abuser.

3. The license is needed due to a loss of financial support resulting from the alien's child's separation from the abuser.

4. The license is needed because the battery or cruelty, separation from the abuser, or work absences or lower job performance resulting from the battery or extreme cruelty or from legal proceedings relating thereto (including resulting child support, child custody, and divorce actions) cause the alien's child to lose his or her job or to earn less or to require the alien's child to leave his or her job for safety reasons.

5. The license is needed because the alien's child requires medical attention or mental health counseling, or has become disabled, as a result of the battery or extreme cruelty.

6. The license is needed because the loss of a dwelling or source of income or fear of the abuser following separation from the abuser jeopardizes the alien's child's ability to care for his or her children (e.g., inability to house, feed, or clothe children or to put children into day care for fear of being found by the abuser).

7. The license is needed to alleviate nutritional risk or need resulting from the abuse or following separation from the abuser.

8. The license is needed to provide medical care during a pregnancy resulting from the abuser's sexual assault or abuse of, or relationship with, the alien's child and/or to care for any resulting children.

9. Where medical coverage and/or health care services are needed to replace medical coverage or health care services the alien's child had when living with the abuser.

(D) The alien meets the requirements of subsection (c)(8)(C) above.

(E) For the term of the license, the individual responsible for the battery or cruelty does not reside in the same household or family eligibility unit as the individual subjected to the battery or cruelty.

(10) An alien child who meets all of the conditions of subparagraphs (A), (B) and (C) below:

(A) The alien child resides in the same household as a parent who has been battered or subjected to extreme cruelty in the United States by that parent's spouse or by a member of the spouse's family residing in the same household as the parent and the spouse consented or acquiesced to such battery or cruelty. For purposes of this subsection, the term “battered or subjected to extreme cruelty” includes, but is not limited to, being the victim of any act or threatened act of violence including any forceful detention, which results or threatens to result in physical or mental injury. Rape, molestation, incest (if the victim is a minor), or forced prostitution shall be considered acts of violence.

1. The license is needed to enable the alien child's parent to become self-sufficient following the separation from the abuser.

2. The license is needed to enable the alien child's parent to escape the abuser and/or the community in which the abuser lives, or to ensure the safety of the alien child's parent from the abuser.

3. The license is needed due to a loss of financial support resulting from the alien child's parent's separation from the abuser.

4. The license is needed because the battery or cruelty, separation from the abuser, or work absences or lower job performance resulting from the battery or extreme cruelty or from legal proceedings relating thereto (including resulting child support, child custody, and divorce actions) cause the alien child's parent to lose his or her job or to earn less or to require the alien child's parent to leave his or her job for safety reasons.

5. The license is needed because the alien child's parent requires medical attention or mental health counseling, or has become disabled, as a result of the battery or extreme cruelty.

6. The license is needed because the loss of a dwelling or source of income or fear of the abuser following separation from the abuser jeopardizes the alien child's parent's ability to care for his or her children (e.g., inability to house, feed, or clothe children or to put children into day care for fear of being found by the abuser).

7. The license is needed to alleviate nutritional risk or need resulting from the abuse or following separation from the abuser.

8. The license is needed to provide medical care during a pregnancy resulting from the abuser's sexual assault or abuse of, or relationship with, the alien child's parent and/or to care for any resulting children.

9. Where medical coverage and/or health care services are needed to replace medical coverage or health care services the alien child's parent had when living with the abuser.

(d) For purposes of this section, “nonimmigrant” is defined the same as in Section 101(a)(15) of the INA (8 U.S.C.S. § 1101(a)(15)).

(e) For purposes of establishing eligibility for a license identified in (b) issued by the Department, all of the following must be met:

(1) An applicant for a new license or renewal of an existing license must declare himself or herself to be a citizen of the United States or a qualified alien under subsection (c), a nonimmigrant alien under subsection (d), or an alien paroled into the United States for less than one year under Section 212(d)(5) of the INA (8 U.S.C.S. § 1182(d)(5)). The alien shall declare that status through use of the “Statement of Citizenship, Alienage, and Immigration Status for State Public Benefits” form, located in Appendix A to this section.

(3) The applicant must complete and sign the “Statement of Citizenship, Alienage, and Immigration Status for State Public Benefits” form, located in Appendix A.

(4) Where the documents presented do not on their face reasonably appear to be genuine or to relate to the individual presenting them, the government entity that originally issued the documents shall be contacted for verification. With regard to naturalized citizens and derivative citizens presenting certificates of citizenship and aliens, the INS is the appropriate government entity to contact for verification. The Department shall request verification from the INS by filing INS Form G-845 with copies of the pertinent documents provided by the applicant with the local INS office. If the applicant has lost his or her original documents or presents expired documents or is unable to present any documentation evidencing his or her immigration status, the applicant shall be referred to the local INS office to obtain documentation.

(5) The type of documentation referred to the INS for verification pursuant to INS Form G-845 shall include the following:

(A) The document presented indicates immigration status but does not include an alien registration or alien admission number.

(B) The document is suspected to be counterfeit or to have been altered.

(C) The document includes an alien registration number in the A60 000 000 (not yet issued) or A80 000 000 (illegal border crossing) series.

(6) If the INS advises that the applicant has citizenship status or immigration status which makes him or her a qualified alien, a nonimmigrant or alien paroled for less than one year under section 212(d)(5) of the INA, the INS verification shall be accepted. If the INS advises that it cannot verify that the applicant has citizenship status or an immigration status that makes him or her a qualified alien, a nonimmigrant or an alien paroled for less than one year under section 212(d)(5) of the INA, the license shall be denied and the applicant notified pursuant to the regular procedures used by the Department to notify an applicant or licensee of their rights to appeal denial or revocation of a license.

(f) Pursuant to Section 434 of the PRAWORA (8 U.S.C.S. § 1644), where the Department reasonably believes that an alien is unlawfully in the State based on the failure of the alien to provide reasonable evidence of the alien's declared status, after an opportunity to do so, said alien shall be reported to the Immigration and Naturalization Service.

(g) Provided that the alien has completed and signed the “Statement of Citizenship, Alienage, and Immigration Status for State Public Benefits” form, located in Appendix A, under penalty of perjury, eligibility for the license shall not be delayed, denied, reduced or terminated while the status of the alien is verified.

(h) Pursuant to Section 432(d) of the PRAWORA (8 U.S.C.S. § 1642(d)), a nonprofit charitable organization that provides federal, state or local public benefits shall not be required to determine, verify, or otherwise require proof of eligibility of any applicant or beneficiary with respect to his or her immigration status or alienage.

(i) Nothing in this section shall be construed to withdraw eligibility for licensure under PRAWORA at 8 U.S.C.S. § 1621(b)(2) or (4).

(j) Any applicant who is determined to be ineligible pursuant to subsection (b) and (e) or who was made eligible for licensure whose services are terminated, suspended, or reduced pursuant to subsections (b) and (e), is entitled to a hearing, conducted pursuant to the regular hearing procedures applicable in proceedings for denial or revocation in the particular licensing category.

(k) The Department may accept a photocopy of any document required to be submitted to the Department by this regulation, provided that, in the judgment of the Department, the copied documents reasonably appear to be genuine and relate to the applicant, and are accompanied by a declaration, signed by the applicant under penalty of perjury declaring the copy to be a true and correct copy of the original document.

(l) Where the eligibility of an applicant has previously been verified as part of an eligibility process for any program subject to PRAWORA, if the Department confirms that the prior verification has not expired and remains valid, the prior verification may be deemed adequate for purposes of this regulation.

NOTE

Authority cited: Section 12027, Business and Professions Code. Refernece: Sections 12203, 12532 and 12703, Business and Professions Code; and 8 U.S.C.S. §§1621, 1641 and 1642.

HISTORY

1. New article 3 (section 4900), section and appendix A filed 5-29-98 as an emergency; operative 5-29-98 (Register 98, No. 22). A Certificate of Compliance must be transmitted to OAL by 9-28-98 or emergency language will be repealed by operation of law on the following day.

2. New article 3 (section 4900), section and appendix A refiled 9-24-98 as an emergency; operative 9-24-98 (Register 98, No. 39). A Certificate of Compliance must be transmitted to OAL by 1-22-99 or emergency language will be repealed by operation of law on the following day.

3. Repealed by operation of Government Code section 11346.1(g) (Register 99, No. 5).

4. New article 3 (section 4900), section and appendix A filed 1-25-99 as an emergency; operative 1-25-99 (Register 99, No. 5). A Certificate of Compliance must be transmitted to OAL by 5-25-99 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 1-25-99 order transmitted to OAL 5-25-99 and filed 7-8-99 (Register 99, No. 28).

Appendix A

STATEMENT OF CITIZENSHIP, ALIENAGE, AND IMMIGRATION STATUS FOR STATE PUBLIC

BENEFITS - LICENSURE

STATE PUBLIC BENEFITS TO CITIZENS AND ALIENS

Citizens and nationals of the United States who meet all eligibility requirements may be issued a license, registration or certification by the California Department of Food and Agriculture for employment or to conduct a commercial enterprise and must fill out Sections A and D.

Aliens who meet all eligibility requirements may also be issued a license, registration or certification by the California Department of Food and Agriculture for employment or to conduct a commercial enterprise and must complete Sections A, B, C or D of this form.

SECTION A: CITIZENSHIP/IMMIGRATION STATUS DECLARATION

1. Is the applicant a citizen or national of the United States? Yes no

If the answer to the above question is yes, where was he/she born?

(City/State)

2. To establish citizenship or nationality, please submit one of the documents on List A (attached hereto) which is legible and unaltered to establish proof.

IF YOU ARE A CITIZEN OR NATIONAL OF THE UNITED STATES, GO DIRECTLY TO SECTION D. IF YOU ARE AN ALIEN, PLEASE COMPLETE SECTION B, OR, IF APPLICABLE, SECTION C.

SECTION B: ALIEN STATUS DECLARATION

IMPORTANT: Please indicate the applicant's alien status below, and submit documents evidencing such status. The alien status documents listed for each category are the most commonly used documents that the United States Immigration and Naturalization Service (INS) provides to aliens in those categories. You can provide other acceptable evidence of your alien status even if not listed below.

1. An alien lawfully admitted for permanent residence

under the Immigration and Naturalization Act (INA). (Evidence includes:

• INS Form I-1551 (Alien Registration Receipt Card,

commonly known as a “green card”); or

• Unexpired Temporary I-561 stamp in foreign passport

or on INS Form I-94).

2. An alien who is granted asylum under section 208 of the INA.

(Evidence includes:

• INS Form I-94 annotated with stamp showing grant of asylum under

section 208 of the INA;

• INS form I-688B (Employment Authorization Card) annotated

“274a.12(a)(5)”;

• INS Form I-766 (Employment Authorization Document) annotated

“A5”;

• Grant letter from the Asylum Office of INS; or

• Order of an immigration judge granting asylum.)

3. A refugee admitted to the United States under section 207 of the INA.

(Evidence includes:

• INS Form I-94 annotated with stamp showing admission under

section 207 of the INA;

• INS Form I-688B (Employment Authorization Card) annotated

“274a.12(a)(3)”;

• INS Form I-766 (Employment Authorization Document) annotated

“A3”; or

• INS Form I-571 (Refugee Travel Document).

4. An alien paroled into the United States for at least one year under section

212(d)(5) of the INA. (Evidence includes:

• INS Form I-94 with stamp showing admission for at least one year under

section 212(d)(5) of the INA. (Applicant cannot aggregate periods of admission

for less than one year to meet the one-year requirement.)).

5. An alien whose deportation is being withheld under section 243(h) of the INA

(as in effect immediately prior to September 30, 1996) or Section 241(b)(3) of such Act (as amended by section 305(a) of division C of Public Law 104-208. (Evidence includes:

• INS Form I-688B (Employment Authorization Card) annotated

“274a.12(a)(10)”;

• INS Form I-766 (Employment Authorization Document)

annotated “A10”; or

• Order from an immigration judge showing deportation withheld under

section 243(h) of the INA as in effect prior to April 1, 1997, or removal withheld

under section 241(b)(3) of the INA).

6. An alien who is granted conditional entry under section 203(a)(7) of the

INA as in effect prior to April 1, 1980. (Evidence includes:

• INS Form I-94 with stamp showing admission under section 203(a)(7) of

the INA;

• INS Form I-688B (Employment Authorization Card) annotated

“274a.12(a)(3)”; or

• INS Form I-766 (Employment Authorization Document)

annotated “A3”).

7. An alien who is a Cuban or Haitian entrant (as defined in section 501(e) of the

Refugee Education Assistance Act of 1980). (Evidence includes:

• INS Form I-551 (Alien Registration Receipt Card, commonly known as a

“green card”) with the code CU6, CU7, or CH6;

• Unexpired temporary I-551 stamp in foreign passport or on INS Form I-94

with the code CU6 or CU7; or

• INS Form I-94 with stamp showing parole as “Cuba/Haitian Entrant” under

Section 212(d)(5) of the INA).

8. An alien paroled into the United States for less than one year under section

212(d)(5) of the INA. (Evidence includes INS Form I-94 showing this status).

9. An alien not in categories 1 through 8 who has been admitted to the United States

for a limited period of time (a non-immigrant). Non-immigrants are persons who have temporary status for a specific purpose. (Evidence includes INA Form I-94 showing this status).

SECTION C: DECLARATION FOR BATTERED ALIENS

IMPORTANT: Complete this section if the applicant, the applicant's child or the applicant child's parent has been battered or subjected to extreme cruelty in the United States.

1. Has the INS or the EOIR granted a petition or application filed by or on behalf of the applicant, the applicant's child, or the applicant's child's parent under the INA or found that a pending petition sets forth a prima facie case? Evidence includes one of the documents on List B (attached hereto).

2. Has the applicant, the applicant's child, or the applicant child's parent been battered or subjected to extreme cruelty in the United States by a spouse or parent, or by a spouse's or parent's family member living in the same house (where the spouse or parent consented to, or acquiesced in the battery or cruelty)?

SECTION D:

I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE ANSWERS I HAVE GIVEN ARE TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE.

Applicant's Signature: Date:

Signature of Person

Acting for Applicant: Date:

LIST A

A person who is a citizen or national of the United States.

A. Primary Evidence

• A birth certificate showing birth in one of the 50 States, the District of Columbia, Puerto Rico (on or after January 13, 1941), Guam, the U.S. Virgin Islands (on or after January 17, 1917), American Samoa, Swain's Island or the Northern Mariana Islands, unless the person was born to foreign diplomats residing in the U.S.

Note: If the document shows that the individual was born in Puerto Rico, the U.S. Virgin Islands or the Northern Mariana Islands before these areas became part of the U.S., the individual may be a collectively naturalized citizen--see Paragraph C below.

• United States passport (except limited passports, which are issued for periods of less than five years);

• Report of birth abroad of a U.S. citizen (FS-240)(issued by the Department of State to U.S. citizens);

• Certificate of birth (FS-545) (issued by a foreign service post) or Certification of Report of Birth (DS-1350) (issued by the Department of State), copies of which are available from the Department of State;

• Certificate of Naturalization (N-550 or N-570) (issued by the INS through a Federal or State court, or through administrative naturalization after December 1990 to individuals who are individually naturalized; the N-570 is a replacement certificate issued when the N-550 has been lost or mutilated or the individual's name has been changed);

• Certificate of Citizenship (N-560 or N-561) (issued by the INS to individuals who derive U.S. citizenship through a parent; the N-561 is a replacement certificate issued when the N-560 has been lost or mutilated or the individual's name has been changed);

• United States Citizen Identification Card (I-197) (issued by the INS until April 7, 1983 to U.S. citizens living near the Canadian or Mexican border who needed it for frequent border crossings) (formerly Form I-179, last issued in February 1974);

• Northern Mariana Identification Card (issued by the INS to a collectively naturalized citizen of the U.S. who was born in the Northern Mariana Islands before November 3, 1986);

• Statement provided by a U.S. consular officer certifying that the individual is a U.S. citizen (this is given to an individual born outside the U.S. who derives citizenship through a parent but does not have an FS-240, FS-545 or DS-1350); or

• American Indian Card with a classification code “KIC” and a statement on the back (identifying U.S. citizen members of the Texas Band of Kickapoos living near the U.S./Mexican border).

B. Secondary Evidence

If the applicant cannot present one of the documents listed in A above, the following may be relied upon to establish U.S. citizenship or nationality:

• Religious record recorded in one of the 50 States, the District of Columbia, Puerto Rico (on or after January 13, 1941), Guam, the U.S. Virgin Islands (on or after January 17, 1917)), American Samoa, Swain's Island or the Northern Mariana Islands (unless the person was born to foreign diplomats residing in such a jurisdiction) within three months after birth showing that the birth occurred in such jurisdiction and the date of birth or the individual's age at the time the record was made;

• Evidence of civil service employment by the U.S. government before June 1, 1976;

• Early school records (preferably from the first school) showing the date of admission to the school, the child's date and place of birth, and the name(s) and place(s) of birth of the parent(s);

• Census record showing name, U.S. citizenship or a U.S. place of birth, and date of birth or age of applicant;

• Adoption Finalization Papers showing the child's name and place of birth in one of the 50 States, the District of Columbia, Puerto Rico (on or after January 13, 1941), Guam, the U.S. Virgin Islands (on or after January 17, 1917), American Samoa, Swain's Island or the Northern Mariana Islands (unless the person was born to foreign diplomats residing in such a jurisdiction) or, where or adoption is not finalized and the State or other jurisdiction listed above in which the child was born will not release a birth certificate prior to final adoption, a statement from a state-approved adoption agency showing the child's name and place of birth in one of such jurisdictions (NOTE: the source of the information must be an original birth certificate and must be indicated in the statement); or

• Any other document that establishes a U.S. place of birth or in some way indicates U.S. citizenship (e.g., a contemporaneous hospital record of birth in that hospital in one of the 50 States, the District of Columbia, Puerto Rico (on or after January 13, 1941), Guam, the U.S. Virgin Islands (on or after January 17, 1917), American Samoa, Swain's Island or the Northern Mariana Islands (unless the person was born to foreign diplomats residing in such a jurisdiction).

C. Collective Naturalization

If the applicant cannot present one of the documents listed in A or B above, the following will establish U.S. citizenship for collectively naturalized individuals:

Puerto Rico:

• Evidence of birth in Puerto Rico on or after April 11, 1899 and the applicant's statement that he or she was residing in the U.S., a U.S. possession or Puerto Rico on January 13, 1941; or

• Evidence that the applicant was a Puerto Rican citizen and the applicant's statement that he or she was residing in Puerto Rico on March 1, 1917 and that he or she did not take an oath of allegiance to Spain.

U.S. Virgin Islands:

• Evidence of birth in the Virgin Islands, and the applicant's statement of residence in the U.S., a U.S. possession or the U.S. Virgin Islands on February 25, 1927;

• The applicant's statement indicating resident in the U.S. Virgin Islands as a Danish citizen on January 17, 1917 and residence in the U.S., a U.S. possession or the U.S. Virgin Islands on February 25, 1927, and that he or she did not make a declaration to maintain Danish citizenship; or

• Evidence of birth in the U.S. Virgin Islands and the applicant's statement indicating residence in the U.S., a U.S. possession or territory or the Canal Zone on June 28, 1932.

Northern Mariana Islands (NMI) (formerly part of the Trust Territory of the Pacific Islands (TTPI)):

• Evidence of birth in the NMI, TTPI citizenship and residence in the NMI, the U.S., or a U.S. territory or possession on November 3, 1986 (NMI local time) and the applicant's statement that he or she did not owe allegiance to a foreign state on November 4, 1986 (NMI local time);

• Evidence of TTPI citizenship, continuous residence in the NMI since before November 3, 1981 (NMI local time), voter registration prior to January 1, 1975 and the applicant's statement that he or she did not owe allegiance to a foreign state on November 4, 1986 (NMI local time); or

• Evidence of continuous domicile in the NMI since before January 1, 1974 and the applicant's statement that he or she did not owe allegiance to a foreign state on November 4, 1986 (NMI local time). Note: If a person entered the NMI as a nonimmigrant and lived in the NMI since January 1, 1974, this does not constitute continuous domicile and the individual is not a U.S. citizen.

D. Derivative Citizenship

If the applicant cannot present one of the documents listed in A or B above, you should make a determination of derivative U.S. citizenship in the following situations:

Applicant born abroad to two U.S. citizen parents:

• Evidence of the U.S. citizenship of the parents and the relationship of the applicant to the parents, and evidence that at least one parent resided in the U.S. or an outlying possession prior to the applicant's birth.

Applicant born abroad to a U.S. citizen parent and a U.S. non-citizen national parent:

• Evidence that one parent is a U.S. citizen and that the other is a U.S. non-citizen national, evidence of the relationship of the applicant to the U.S. citizen parent, and evidence that the U.S. citizen parent resided in the U.S., a U.S. possession, American Samoa or Swain's Island for a period of at least one year prior to the applicant's birth.

Applicant born out of wedlock abroad to a U.S. citizen mother:

• Evidence of the U.S. citizenship of the mother, evidence of the relationship to the applicant and, for births on or before December 24, 1952, evidence that the mother resided in the U.S. prior to the applicant's birth or, for births after December 24, 1952, evidence that the mother had resided, prior to the child's birth, in the U.S. or a U.S. possession for a period of one year.

Applicant born in the Canal Zone or the Republic of Panama:

• A birth certificate showing birth in the Canal Zone on or after February 26, 1904 and before October 1, 1979 and evidence that one parent was a U.S. citizen at the time of the applicant's birth; or

• A birth certificate showing birth in the Republic of Panama on or after February 26, 1904 and before October 1, 1979 and evidence that at least one parent was a U.S. citizen and employed by the U.S. government or the Panama Railroad Company or its successor in title.

All other situations where an applicant claims to have a U.S. citizen parent and an alien parent, or claims to fall within one of the above categories but is unable to present the listed documentation:

• If the applicant is in the U.S., refer him or her to the local INS office for determination of U.S. citizenship;

• If the applicant is outside the U.S., refer him or her to the State Department for a U.S. citizenship determination.

E. Adoption of Foreign-Born Child by U.S. Citizen

• If the birth certificate shows a foreign place of birth and the applicant cannot be determined to be a naturalized citizen under any of the above criteria, obtain other evidence of U.S. citizenship;

• Since foreign-born adopted children do not automatically acquire U.S. citizenship by virtue of adoption by U.S. citizens, refer the applicant to the local INS district office for a determination of U.S. citizenship if the applicant provides no evidence of U.S. citizenship.

F. U.S. Citizenship By Marriage

A women acquired U.S. citizenship through marriage to a U.S. citizen before September 22, 1922. Ask for: Evidence of U.S. citizenship of the husband, and evidence showing the marriage occurred before September 22, 1922.

Note: If the husband was an alien at the time of the marriage, and became naturalized before September 22, 1922, the wife also acquired naturalized citizenship. If the marriage terminated, the wife maintained her U.S. citizenship if she was residing in the U.S. at that time and continued to reside in the U.S.

LIST B

A. Documentation Evidencing an Apzproved Petition or Application

• INS Form I-551 (“Resident Alien Card” or “Alien Registration Receipt Card”, commonly known as a “green card”) with one of the following INS class of admission (“COA”) codes printed on the front of a white card or the back of a pink card: AR1, AR6, C20 through C29, CF1, CF2, CR1, CR2, CR6, CR7, CX1 through CX3, CX6 through CX8, F20 through F29, FX1 through FX3, FX6 through FX8, IF1, IF2, IR1 through IR4, IR6 through IR9, IW1, IW2, IW6, IW7, MR6, MR7, P21 through P23, or P26 through P28.

If an alien claiming approved status presents a code different than those enumerated, or if you cannot determine the class of admission from the I-551 stamp, file INS Form G-845, and the G-845 Supplement (mark item six on the Supplement) (attached hereto) along with a copy of the document(s) presented, with the local INS office in order to determine whether the applicant gained his or her status because he or she was the spouse, widow, or child of a U.S. citizen or the spouse, child, or unmarried son or daughter of an LPR (“lawful permanent resident”).

• INS Form I-551 with one of the following COA codes stamped on the lower left side of the back of a pink card: IB1 through IB3, IB6 through IB8, B11, B12, B16, B17, B20 through B29, B31 through B33, B36 through B38, BX1 through BX3, or BX6 through BX8.

• INS Form I-551 with COA code Z13.

• Unexpired Temporary I-551 stamp in foreign passport or on INS Form I-94 with one of the COA codes specified in the Subsections (1)-(3), above.

• INS Form I-797 indicating approval of an INS I-130 petition (only I-130 petitions describing the following relationships may be accepted: husbands or wives of U.S. citizens or LPRs, unmarried children under 21 years old of U.S. citizens or LPRs, or unmarried children 21 or older of LPRs), or approval of an I-360 petition (only I-360 approvals based on status as a widow/widower of a U.S. citizen or as a self-petitioning spouse or child of an abusive U.S. citizen or LPR may be accepted).

• A final order of an Immigration Judge or the Board of Immigration Appeals granting suspension of deportation under section 244(a)(3) of the INA as in effect prior to April 1, 1997, or cancellation of removal under section 240A(b)(2) of the INA.

B. Documentation Demonstrating that the Applicant has Established a Prima Facie Case

• INS Form I-797 indicating that the applicant has established a prima facie case; or

• An immigration court or Board of Immigration Appeals order indicating that the applicant has established a prima facie case for suspension of deportation under INA section 244(a)(3) as in effect prior to April 1, 1997, or cancellation of removal under section 240A(b)(2) of the INA.

C. Documentation Indicating that the Applicant has Filed a Petition or that a Petition has been Filed on the Applicant's Behalf, as Applicable, but with no Evidence of Approval of the Petition or Establishment of a Prima Facie Case

The benefit provider shall determine from the documentation when the petition was filed and take the actions set forth below:

• Applicants with petitions filed before June 7, 1997 should have an INS Form I-797 indicating filing of the I-360 petition by “self-petitioning spouse [or child] of abusive U.S.C. or LPR,” a file-stamped copy of the petition, or another document demonstrating filing (including a cash register or computer-generated receipt indicating filing of Form I-360).

• Applicants with petitions filed after June 7, 1997 should have an INS Form I-797 indicating filing of the I-360 petition.

D. Documentation Indicating that the Applicant has filed a Petition or that a Petition was filed on His or Her Behalf, as Applicable

The following must indicate that the applicant is the widow/widower of a U.S. citizen, the husband or wife of a U.S. Citizen or LPR, the unmarried child under age 21 of a U.S. citizen or LPR, or the unmarried child age 21 or older of an LPR):

• For aliens on whose behalf a petition has been filed: INS Form I-797 indicating filing of an INS I-130 petition, a file-stamped copy of the petition, or another document demonstrating filing (including a cash register or computer-generated receipt indicating filing of Form I-130) (a sample copy of Form I-130 is attached to this Exhibit).

• For self-petitioning widows or widowers: a file-stamped copy of the INS I-360 petition, or another document demonstrating filing (including a cash register or computer-generated receipt indicating filing of Form I-360).

E. Documentation Indicating that the INS has Initiated Deportation or Removal Proceedings in which Relief may be Available

• an “Order to Show Cause”;

• a “Notice to Appear”; or

• a “Notice of Hearing in Deportation Proceedings.”

F. Minimal or no Documentation Regarding the Claimed Filing

If the applicant has some documentation, but it is insufficient to demonstrate filing, establishment of prima facie case or approval of a petition, fax the INS Request Form on your agency letterhead, as well as a copy of any document(s) provided by the applicant, to the INS Vermont Service Center in order to determine the applicant's status. If the applicant has no documentation, but is certain that a petition has been filed by his or her spouse or parent, fax the INS Request Form to the INS Vermont Service Center.

Division 9.5. California Debt Limit Allocation Committee

Chapter 1. General Provisions

Article 1. Definitions

§5000. Definitions.

Note • History

In addition to the definitions set forth in Government Code section 8869.82 and unless otherwise required by the context, the following terms as used in this division are defined as follows:

“Accredited Investor”, also known as a “Sophisticated Investor”, means an entity as defined by the United States Securities and Exchange Commission under Rule 501, regulation D of the Securities Act of 1933.

“Allocation” means the portion of the State Ceiling awarded by the Committee to an Applicant.

“Allocation Round” means a meeting or series of meetings of the Committee during which a predetermined portion of the State Ceiling is made available for allocation by the Committee to one or more Applicants selected by the Committee during that meeting or series of meetings.

“Annual Applicant Public Benefits and Ongoing Compliance Self-Certification (3-21-12)”, hereby incorporated by reference, means the document provided in the Committee Resolution to be completed by the Issuer in which the Issuer certifies that the Project is in compliance with all of the terms and conditions set forth in the Committee Resolution.

“Applicant” means any state or local governmental agency, joint powers authority (JPA), special district, nonprofit public benefit corporation that issues only student loan bonds or any other public agency that is empowered to issue debt that submits an Application to the Committee.

“Application” means the request by an Applicant to the Committee for an Allocation of the State Ceiling which shall include the information specified in article 4 of this chapter.

“Bond” means either a Qualified Private Activity Bond or a Governmental Bond as defined in this section.

“Bond Default” means a material default as defined within an Issuer's Bond documents, but does not include for the purposes of this definition, defaults that are technical in nature such as a failure to maintain covenants, failing to charge rates sufficient to meet rate covenants, failing to maintain insurance on the Project, or failing to fund various reserves.

“Bond Regulatory Agreement” means the agreement between the Issuer, Project Sponsor, and any third party related to the ownership, financing, and management of a proposed Qualified Residential Rental Project that binds the parties to the commitments made in the Application that resulted in the Allocation for the Project and any other requirements mandated by 26 U.S.C. section 142.

“Census Designated Place” means a place designated as a census designated place by the Bureau of the Census.

“Certification of Compliance” means the document provided in the Committee Resolution to be completed by the Project Sponsor in which the Project Sponsor certifies that the Project is in compliance with all of the terms and conditions set forth in the Committee Resolution.

“CIDFAC” means the California Industrial Development Financing Advisory Commission.

“CIEDB” means the California Infrastructure and Economic Development Bank.

“Committee” means the California Debt Limit Allocation Committee established by California Government Code sections 8869.80 et seq.

“Committee Resolution” means for any Allocation, the resolution duly adopted by the Committee that, among other things, memorializes the grant of the Allocation by the Committee to the Applicant.

“Competitive Application Process” means the procedure under which the Committee will evaluate an Application for an award of Allocation that is competitive based upon the number of points each Application is awarded. Applications submitted under this process will be awarded points only when the Project qualifies for such points and evidence supporting an award of points is demonstrated at the time when submitted. The Committee will not consider documentation for an award of points submitted after the Application deadline, nor will the Committee review an incomplete Application except to determine whether the Application is complete.

“Credit Enhancement” means the additional assurance provided by a third party pursuant to a payment guaranty, letter of credit, bond insurance or other similar vehicle with a marketable investment grade credit rating.

“Credit Enhancer” means the party providing Credit Enhancement.

“CTCAC” means the California Tax Credit Allocation Committee.

“Deemed Waived” means any designated Qualified Energy Conservation Bond and/or Recovery Zone Bond Allocation not issued or included in a Plan of Issuance by August 15, 2010 that may automatically be deemed returned to CDLAC for reallocation.

“Distressed Community” means a community that the Applicant demonstrates to be any one or more of the following:

w A community with an unemployment rate equal to or greater than 125% of the statewide average based on the California Employment Development Department's most recent annual average for sub-county areas.

w A community with median family income of less than 80% of the statewide average based on the most recent census data available for cities or Census Designated Places. If no city or Census Designated Place level data is available, or if the Applicant chooses to identify a project benefit area that is smaller than a city or Census Designated Place, such as census tract or tracts, smaller areas will be used.

w A community with a poverty rate equal to or greater than 110% of the statewide average based on the most recent census data available for cities or Census Designated Places. If no city or Census Designated Place level data is available, or if the Applicant chooses to identify a project benefit area that is smaller than a city or Census Designated Place such as a census tract or tracts, smaller geographic areas will be used.

w A state designated Enterprise Zone (including a Manufacturing Enhancement Area or Targeted Tax Area).

w A federally designated Empowerment Zone, Enterprise Community or Renewal Community as defined in 26 U.S.C. section 1392.

“Draw-down Bond Issuance” means a draw-down loan as defined for purposes of 26 U.S.C. sections 103 and 141 through 150 (generally, a Bond issue in which Bonds are delivered to the Bond purchaser intermittently as funds are needed by the Bond Issuer and the Bond Issuer only provides payments based on the amount of Bonds drawn-down).

“Eligible QECB Reallocation Applicant” means any city, county (acting directly or through an entity acting on behalf of the city or county pursuant to a joint powers agreement), state entity or Indian tribal government located in the State of California.

“Eligible QECB Reallocation Issuer” means a State or political subdivision as defined for purposes of U.S. Treasury Regulations, Section 103, and entities empowered to issue Bonds on behalf of any such entity under rules similar to those for determining whether a Bond issued on behalf of a State or political subdivision constitutes an obligation of that State or political subdivision for purposes of U.S. Treasury Regulations, Section 103.

“Executive Director” means the Executive Director of the Committee.

“Exempt Facility Project” means a Project financed with an exempt facility bond satisfying the requirements of 26 U.S.C. section 142, except that airports, docks and wharves, governmentally owned solid waste disposal facilities, and Qualified Residential Rental Projects shall not be considered exempt facilities for purposes of these regulations.

“Exempt Facility Project Pool” means the reserve of the State Ceiling established by the Committee for Exempt Facility Projects.

“Extra Credit Teacher Home Purchase Program” means a program offering Mortgage Credit Certificates or loans funded by Mortgage Revenue Bonds to eligible teachers, eligible administrators, eligible classified employees, and eligible staff members for the purpose of assisting them in becoming homeowners.

“Extra Credit Teacher Home Purchase Program Pool” means the reserve of the State Ceiling established by the Committee for the Extra Credit Teacher Home Purchase Program.

“General Project Pool” means a reserve within the Qualified Residential Rental Project Pool that may be established by the Committee that does not include either Rural Projects or Mixed Income Projects.

“Governmental Bond” means a Bond issued by or on behalf of a governmental entity that is not considered a Qualified Private Activity Bond.

“Investor Representation Letter” means a letter from initial investors of a Bond offering that includes but is not limited to a certification that they reasonably meet the standards of a Sophisticated Investor or Qualified Institutional Buyer, that they are purchasing Bonds for their own account, that they have the sophistication to evaluate the merits and risks of the investment and suffer a loss of the investment, that they have been furnished all the information which they and their advisers requested on the offering and have had an opportunity to ask questions relating to that information, and other such matters.

“Issuer” means an entity empowered to issue Bonds.

“Job Creation” means new permanent full-time jobs created by the Project Sponsor. The number of jobs created shall be calculated after deducting any jobs within the State that are eliminated by the company. Job Creation must be met within two (2) years following the completion of the Project. The Job Creation requirement may be monitored by CIDFAC and CIEDB utilizing California Employment Development Department employment statistics.

“Job Wage” means the average hourly general manufacturing wage for the Metropolitan Statistical Area in which a Project is located, based on the Bureau of Labor Statistics Series Code from the California Employment Development Department. If a Project is not located in an area for which the Employment Development Department keeps hourly wage data or not located in a defined Metropolitan Statistical Area, the closest comparable area in which hourly wage is available may be used.

“LEED Certified” means Leadership in Energy & Environmental Design certification by the U.S. Green Building Council.

“Local Issuer” means a local government entity that issues Mortgage Revenue Bonds or Mortgage Credit Certificates for Single Family Housing Programs or small-issue industrial development Bonds or a joint powers authority that issues small-issue industrial development bonds on behalf of a local government entity.

“Market Study” means a comprehensive document prepared by a third party which contains information related to the Project's market area.

“Metropolitan Statistical Area” means the geographic entity defined by the U.S. Office of Management and Budget (OMB).

“Mixed Income Pool” means a reserve within the Qualified Residential Rental Project Pool that may be established by the Committee.

“Mixed Income Project” means a Qualified Residential Rental Project having 50% or fewer of its total units designated as Restricted Rental Units.

“Mortgage Credit Certificate” means a mortgage credit certificate as defined by 26 U.S.C. section 25(c)(1).

“Mortgage Revenue Bond” means a bond defined by 26 U.S.C. section 143(a).

“Mortgage Revenue Bond Program” means a program defined by 26 U.S.C. section 143(a).

“Nationally Recognized Statistical Rating Organization” means credit rating agencies that satisfy the requirements of 15 U.S.C. section 78(c)(62).

“Net Proceeds” means proceeds used for “recovery zone property” as defined in 26 U.S.C. 1400U-3(b)(1)(A).

“Open Application Process” means the procedure under which the Committee will evaluate an Application for an award of Allocation that is not competitive. The Committee will not review an incomplete Application except to determine whether the Application is incomplete and notify the Applicant of the deficiency.

“Performance Deposit Certification” means the form titled “Performance Deposit Certification Form for an Application for an Allocation of Qualified Private Activity Bonds” (revised 1-18-12), which is hereby incorporated by reference.

“Placement Agent Statement” means the statement provided by the firm contracted to market the Bonds proposed in the Application that includes a brief paragraph on the firm's history and principals, a summary of the firm's initial underwriting review, an overview of proposed issuance structure including anticipated debt service coverage ratio, and a statement certifying that the proposed transaction has been initially underwritten and meets the firm's standards for participation.

“Plan of Issuance” means a report due to CDLAC from a county or municipality receiving a U.S. Treasury Designated Recovery Zone Bond Allocation that includes the following: One, a brief description of the Project(s) to be funded utilizing QECBs and/or RZBs, including the proposed qualifying project type, sponsor contact information and anticipated Bond amounts; Two, a copy of the locally approved resolution designating the area in which the proposed Project(s) are located as a Recovery Zone(s); Three, an identification of the local approvals obtained to date; and Four, the anticipated construction start date and timeline for project completion and Bond issuance.

“Project” means the subject property for which an Application for Allocation has been submitted.

“Project Sponsor” means the entity, or CDLAC authorized affiliate thereof, using the proceeds of a Bond issue to complete the Project described in the Application.

“Project Wage” means the average hourly wage of the jobs created by a Project.

“Public Transit Corridor” means an existing or planned public mass transit guide way or bus way station, or multimodal transportation terminal serving public mass transit operations within one-quarter mile of the Project.

“Qualified Business” means any trade or business as defined under 26 U.S.C. section 1400U-3(c)(2) which exempted “(1) the rental to others of real property located in a recovery zone shall be treated as a qualified business only if the property is not a residential rental property as defined in 26 U.S.C. section 168(e)(2); and (2) such term shall not include any trade or business consisting of the operation of any facility described in 26 U.S.C. section 144(c)(6)(B).”

“Qualified Energy Conservation Bond (QECB)” means a qualified tax-credit Bond as defined under 26 U.S.C. section 54D where: “(1) one-hundred (100%) percent of the available project proceeds of such issue are to be used for one or more `qualified conservation purposes' (2) the bond is issued by a State or local government, and (3) the Issuer designates such bonds for purposes pursuant to this section.”

“Qualified Energy Conservation Bond Reallocation Pool” means the reserve of the amount Deemed Waived by the Committee for reallocation for a Qualified Energy Conservation Bond.

“Qualified Institutional Buyer (QIB)” means an entity defined by the United States Securities and Exchange Commission in Rule 144A under the Securities Act of 1933.

“Qualified Private Activity Bond” means a bond that satisfies the requirements of 26 U.S.C. sections 141 et seq.

“Qualified Recovery Zone Bond Issuer” means eligible Issuers of Recovery Zone Bonds including states, political subdivisions as defined for purposes of U.S. Treasury Regulations, Section 103, and entities empowered to issue Bonds on behalf of any such entity under rules similar to those used to determine whether a Bond issued on behalf of a state or political subdivision constitutes an obligation of the state or political subdivision for purposes of U.S. Treasury Regulations, Section 103 and subchapter A, 1.103-1(b), or eligible Issuers in conduit financing issues as defined in U.S. Treasury Regulations, subchapter A, 1.150-1(b). An eligible Issuer may issue Recovery Zone Bonds based on a volume cap allocation received by the eligible Issuer itself or by a conduit borrower or other ultimate beneficiary of the issue of the Bonds.

“Qualified Residential Rental Project” means a qualified residential rental project as defined by 26 U.S.C. section 142(d)(1).

“Qualified Residential Rental Project Pool” means the reserve of the State Ceiling established by the Committee for Qualified Residential Rental Projects.

“Qualifying Bond Default” means a Bond Default in which the final disposition resulted in bondholders involuntarily not being paid in whole or in part.

“Recovery Zone” means an area designated by the local issuing entity defined pursuant 26 U.S.C. section 1400U-1(b) as meeting one of the following criteria:

w Significant poverty, unemployment, rate of home foreclosures or general distress

w Economically distressed because of military base closure or realignment

w An area which has been designation as an empowerment zone or a renewal community

“Recovery Zone Bond (RZB)” means a Bond issue as a Recovery Zone Economic Development Bonds or a Recovery Zone Facility Bonds.

“Recovery Zone Economic Development Bonds (RZEDB)” means a type of Build America Bond issued before January 1, 2011 in which the Issuer shall receive a credit from the Treasury Department equal to 45% of the interest payment.

“Recovery Zone Economic Development Bond (RZEDB) Reallocation Pool” means the reserve of the amount Deemed Waived by the Committee for reallocation of Recovery Zone Economic Development Bonds.

“Recovery Zone Facility Bonds (RZFB)” means a category of Bonds created by the American Recovery and Reinvestment Act of 2009 (ARRA) that will be treated as Exempt Facility Bond Project as defined per 26 U.S.C. section 142.

“Recovery Zone Facility Bonds (RZFB) Reallocation Pool” means the reserve of the amount Deemed Waived by the Committee for reallocation of Recovery Zone Facility Bonds.

“Related Party” means the more stringent of the constructive ownership provisions of 26 U.S.C. section 267 or the following:

w The brothers, sisters, spouse, ancestors, and direct descendants of a person;

w A person and corporation where that person owns more than 50% in value of the outstanding stock of that corporation;

w Two or more corporations, general partnership(s), limited partnership(s) or limited liability corporations connected through debt or equity ownership, in which stock is held by the same persons or entities for:

d At least 50% of the total combined voting power of all classes that can vote, or;

d At least 50% of the total value of shares of all classes of stock of each of the corporations, or;

d At least 50% of the total value of shares of all classes of stock of at least one of the other corporations, excluding, in computing that voting power or value, stock owned directly by that other corporation.

w There exists concurrent ownership by a parent or related entity, regardless of the percentage of ownership, or a separate entity from which income is derived;

w There exists concurrent ownership by a parent or related entity, regardless of the percentage of ownership, or a separate entity where a sale-leaseback transaction provides the parent or related entity with income from the property leased or that creates an undue influence on the separate entity as a result of the sale-leaseback transaction;

w There exists concurrent ownership by a parent or related entity, regardless of the percentage of ownership, of a separate entity where an interlocking directorate exists between the parent or related entity and the separate entity.

w A grantor and fiduciary of any trust;

w A fiduciary of one trust and a fiduciary of another trust, if the same person is a grantor of both trusts;

w A fiduciary of a trust and a beneficiary of that trust;

w A fiduciary of a trust and a corporation where more than 50% in value of the outstanding stock is owned by or for the trust or by or for a person who is a grantor of the trust;

w A person or organization and an organization that is tax-exempt under 26 U.S.C. section 501(c)(3) or (4) and that is affiliated with or controlled by that person or the person's family members, as provided in the first bullet of this section, or by that organization;

w A corporation and a partnership or joint venture if the same persons own more than:

d 50% in value of the outstanding stock of the corporation; and

d 50% of the capital interest, or the profits' interest, in the partnership or joint venture;

w One S corporation or limited liability corporation and another S corporation or limited liability corporation if the same persons own more than 50% in value of the outstanding stock of each corporation;

w An S corporation or limited liability corporation and a C corporation, if the same persons own more than 50% in value of the outstanding stock of each corporation;

w A partnership and a person or organization owning more than 50% of the capital interest, or the profits' interest, in that partnership; or

w Two partnerships where the same person or organization owns more than 50% of the capital interests or profits' interests.

“Report of Action Taken” means a report provided by and due to the Committee not more than three (3) business days following the use of Allocation to issue Bonds or Mortgage Credit Certificates.

“Report of Action Taken for Bonds” means the specific Report of Action Taken due to the Committee following the use of Allocation for Qualified Private Activity Bonds (excluding RZBs or QECBs) titled “Report of Action Taken Regarding the Issuance of Private Activity Bonds” (revised 10-1-11), which is hereby incorporated by reference.

“Report of Action Taken for Bonds (Carryforward)” means the specific Report of Action Taken due to the Committee following the use and/or carryforward of Allocation for Qualified Private Activity Bonds (excluding RZBs or QECBs) titled “Report of Action Taken Regarding the Making of a Carryforward Election and the Issuance of Private Activity Bonds” (revised 10-1-11), which is hereby incorporated by reference.

“Report of Action Taken for MCCs” means the specific Report of Action Taken due to the Committee following the use of Allocation to issue Mortgage Credit Certificates Bonds titled “Report of Action Taken Regarding Mortgage Credit Certificate Program” (revised 1-11-11), which is hereby incorporated by reference.

“Report of Action Taken for MCCs (Carryforward)” means the specific Report of Action Taken due to the Committee following the use and/or carryforward of Allocation to issue Mortgage Credit Certificates titled “Report of Action Taken Regarding a Carryforward Election and a Mortgage Credit Certificate Program” (revised 11-11-11), which is hereby incorporated by reference.

“Report of Action Taken for RZBs or QECBs” means the specific Report of Action Taken due to the Committee following the use of Allocation for RZBs or QECBs titled “Report of Action Taken Regarding the Issuance of Recovery Zone Bonds or Qualified Energy Conservation Bonds” (revised 1-11-11), which is hereby incorporated by reference.

“Restricted Rental Units” means tenant occupied units within a Qualified Residential Rental Project that are restricted to households earning 60% or less of the applicable median family income pursuant to a Bond Regulatory Agreement or a CTCAC regulatory agreement for a minimum of thirty (30) years.

“Rural Project” means a Qualified Residential Rental Project located in a rural area as defined by Health and Safety Code section 50199.21 but shall not include a Mixed Income Project.

“Rural Project Pool” means a reserve within the Qualified Residential Rental Project Pool that may be established by the Committee.

“RZEDB Application” means the Application titled “Application for an Award of American Recovery and Reinvestment Act of 2009 Recovery Zone Economic Development Bonds” (revised 5-5-11), which is hereby incorporated by reference.

“RZFB Application” means the Application titled “Application for an Award of American Recovery and Reinvestment Act of 2009 Recovery Zone Facility Development Bonds” (revised 5-5-11), which is hereby incorporated by reference.

“Single Family Housing Program” means a program satisfying the requirements of 26 U.S.C. section 25 and 26 U.S.C. section 143.

“Single Family Housing Program Bonus Pool” means a reserve within the Single Family Housing Program Pool that may be established by the Committee.

“Single Family Housing Program Pool” means the reserve of the State Ceiling established by the Committee for Single Family Housing Programs.

“Single Family Housing State Issuer” means any state agency that issues Mortgage Revenue Bonds or Mortgage Credit Certificates for Single Family Housing Programs.

“Small Business Program” means a program that meets the requirements for eligibility established and administered by CIDFAC.

“Small-Issue Industrial Development Bond Project” means a Project that meets the requirements for a qualified small-issue Bond as described under 26 U.S.C. section 144.

“Small-Issue Industrial Development Bond Project Pool” means the reservation of the State Ceiling reserved for Small-Issue Industrial Development Bond Projects.

“Sophisticated Investor (SI)”, see Accredited Investor definition.

“Special Designation Area” means a community that the Applicant demonstrates is any one or more of the following: One, a state designated Enterprise Zone pursuant to Government Code section 7073, Manufacturing Enhancement Area pursuant to Government Code section 7073.8 or Targeted Tax Area pursuant to Government Code section 7097; Two, a federally designated Empowerment Zone or Enterprise Community pursuant to 26 U.S.C. section 1391, or Renewal Community pursuant to 26 U.S.C. section 1400E.

“State Ceiling” means the amount of Qualified Private Activity Bonds that can be issued in California for each calendar year specified by 26 U.S.C. section 146(d), and the amount reserved to California pursuant to sections 1112 and 1401 of the American Recovery and Reinvestment Act of 2009 as established by and announced by the Committee in accordance with article 2 of this chapter.

“State Ceiling Pools” means the individual pools created by the Committee and as defined in this chapter.

“Student Loan Program” means a program that meets the requirements for a qualified student loan Bond under 26 U.S.C. section 144(b).

“Student Loan Program Pool” means the reserve of the State Ceiling established by the Committee for Student Loan Programs.

“Taxable Debt” means conventional financing from a major financial institution or taxable Bonds issued by a municipality including but not limited to Build America Bonds, Recovery Zone Bonds or Qualified Energy Conservation Bonds.

“TEFRA Resolution” means the approval signed by the applicable elected representative of the governmental unit having jurisdiction over the proposed Project as required by the Tax Equity and Fiscal Responsibility Act of 1983, and under 26 U.S.C. section 147(f).

“Travelling Investor Representation Letter” means the certification from initial investor(s) of a Bond offering that they have no present intention of reoffering the Bonds in a subsequent public offering, but may be allow to subsequently transfer the Bonds in a limited offering to another permitted transferee provided the transferee agrees to the same representations.

“U.S. Treasury Designated Recovery Zone Bond Allocation” means Allocation received directly from the federal government pursuant to the American Recovery and Reinvestment Act of 2009.

“Verification of Zoning and Local Approvals” means the document by which the appropriate local government planning official having jurisdiction over the Qualified Residential Rental Project certifies at least the following: the Project's name, address, parcel number, housing type, the Project's compliance with all applicable local land use and zoning ordinances, a description of the Project's current zoning, maximum per unit density allowed for the Project's site, and whether the Project has obtained all local and state land use related approvals.

“Veterans Home Loan Program” means a single family housing program administered by the California Department of Veterans Affairs, satisfying the requirements of 26 U.S.C. section 143, and that is restricted to California veterans of military service.

“Welfare-to-Work Plan” means a plan as described by sections 10531, et seq. of the California Welfare and Institutions Code.

NOTE

Authority cited: Section 8869.84, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

1. New division 9.5 (chapters 1-9, sections 5000-5550), chapter 1 (articles 1-12, sections 5000-5155), article 1 (section 5000) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New division 9.5 (chapters 1-9, sections 5000-5550), chapter 1 (articles 1-12, sections 5000-5155), article 1 (section 5000) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New division 9.5 (chapters 1-9, sections 5000-5550), chapter 1 (articles 1-12, sections 5000-5155), article 1 (section 5000) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Editorial correction of definition of “Qualified Recovery Zone Bond Issuer” (Register 2011, No. 26).

5. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section and Note, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

6. New definition of “Annual Applicant Public Benefits and Ongoing Compliance Self-Certification” and amendment of definitions of “Report of Action Taken for Bonds (Carryforward)” and “Report of Action Taken for MCCs” filed 12-9-2011 as an emergency; operative 12-9-2011 (Register 2011, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-6-2012 or emergency language will be repealed by operation of law on the following day.

7. Amendment of definition of “Performance Deposit Certification” filed 2-3-2012 as an emergency; operative 2-3-2012 (Register 2012, No. 5). A Certificate of Compliance must be transmitted to OAL by 8-1-2012 or emergency language will be repealed by operation of law on the following day.

8. Amendment of definitions of “Annual Applicant Public Benefits and Ongoing Compliance Self-Certification,” “Distressed Community” and “Special Designation Area” and repealer of definition of “Redevelopment Project Area” filed 4-4-2012 as an emergency; operative 4-4-2012 (Register 2012, No. 14). A Certificate of Compliance must be transmitted to OAL by 10-1-2012 or emergency language will be repealed by operation of law on the following day.

9. New definition of “Annual Applicant Public Benefits and Ongoing Compliance Self-Certification” and amendment of definitions of “Report of Action Taken for Bonds (Carryforward)” and “Report of Action Taken for MCCs” refiled 6-1-2012 as an emergency; operative 6-1-2012 (Register 2012, No. 22). A Certificate of Compliance must be transmitted to OAL by 8-30-2012 or emergency language will be repealed by operation of law on the following day.

10. Amendment of definition of “Performance Deposit Certification” refiled 8-1-2012 as an emergency; operative 8-1-2012 (Register 2012, No. 31). A Certificate of Compliance must be transmitted to OAL by 10-30-2012 or emergency language will be repealed by operation of law on the following day.

11. New definition of “Annual Applicant Public Benefits and Ongoing Compliance Self-Certification” and amendment of definitions of “Report of Action Taken for Bonds (Carryforward)” and “Report of Action Taken for MCCs” refiled 8-29-2012 as an emergency; operative 8-29-2012 (Register 2012, No. 35). A Certificate of Compliance must be transmitted to OAL by 11-27-2012 or emergency language will be repealed by operation of law on the following day.

12. Certificate of Compliance as to 4-4-2012 order transmitted to OAL 9-6-2012 and filed 9-27-2012 (Register 2012, No. 39).

13. Amendment of definition of “Performance Deposit Certification” refiled 10-30-2012 as an emergency; operative 10-30-2012 (Register 2012, No. 44). A Certificate of Compliance must be transmitted to OAL by 1-28-2013 or emergency language will be repealed by operation of law on the following day.

14. Certificate of Compliance as to 8-29-2012 order, including amendment of definitions of ``Report of Action Taken for Bonds” and “Report of Action Taken for MCCs,” transmitted to OAL 11-26-2012 and filed 1-8-2013 (Register 2013, No. 2).

Article 2. State Ceiling and Application Process

§5010. Determination of State Ceiling, Competitiveness, and Minimum Points.

Note • History

(a) As soon as practicable after the beginning of each calendar year, and before any Applications are considered, the Committee shall determine and announce the State Ceiling and the portion of the State Ceiling that will be available for each of the State Ceiling Pools as set forth in article 3 of this chapter.

(b) Pursuant to subdivision (a) of this section, the Committee shall determine and announce the establishment of either an Open Application Process or a Competitive Application Process, or both, for each State Ceiling Pool. The Committee shall determine which process is best for each program pool based on factors including, but not limited to, the amount of the State Ceiling available to the pool and the history of Applications for allocations from each pool.

(c) Pursuant to subdivision (a) and (b) of this section, the Committee shall establish a minimum point threshold for the General, Rural, and Mixed Income Project Pools as determined in section 5020.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84, Government Code.

HISTORY

1. New article 2 (section 5010) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 2 (section 5010) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 2 (section 5010) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of article heading, new section heading, amendment of subsection (b) and repealer and new subsection (c), transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 3. State Ceiling Pools

§5020. Determination of State Ceiling Pools.

Note • History

As soon as practicable after the beginning of each calendar year, and before any Applications are considered, the Committee will:

(a) Determine and announce what amount, expressed both as a percentage and as a dollar amount of the State Ceiling, shall be available for Allocation during the year and in each Allocation Round to Qualified Residential Rental Projects from the Qualified Residential Rental Project Pool.

(1) Subsequent to the determination made pursuant to subdivision (a) of this section, determine and announce whether a portion of the Qualified Residential Rental Project Pool, expressed as a dollar amount and as a percentage (not to exceed twenty-five percent (25%)) of the Qualified Residential Rental Project Pool shall be reserved in a Mixed Income Pool to be available for allocation to Mixed Income Projects, and determine what amount, if any, shall be available in each Allocation Round.

(2) Subsequent to the determination made pursuant to subdivision (a) of this section, determine and announce whether a portion of the Qualified Residential Rental Project Pool, expressed as a dollar amount and as a percentage (not to exceed ten percent (10%)) of the Qualified Residential Rental Project Pool shall be reserved in a Rural Project Pool to be available for allocation to Rural Projects and determine what amount, if any, shall be available in each Allocation Round.

(b) Determine and announce what amount, expressed both as a percentage and as a dollar amount of the State Ceiling, shall be available for allocation during the year and in each Allocation Round to Single Family Housing Programs.

(1) Subsequent to the determination made pursuant to subdivision (b) of this section, determine and announce what portion of the Single Family Housing Program Pool will be reserved and allocated to state Issuers.

(2) Subsequent to the determination made pursuant to subdivision (b)(1) of this section, the remainder of the Single Family Housing Program Pool will be reserved by county, for Local Issuers. Each county shall receive a proportionate share of the amount reserved for Local Issuers based on the population of the county relative to the state's total population. Populations will be based on data published by the California State Department of Finance Demographics Unit. Where there is more than one Local Issuer in a county, each Local Issuer shall receive a proportionate share of the county's reservation based on the population of the jurisdictions served by an Issuer relative to the county's total population, or as agreed upon by the participating Local Issuers. Local Issuers may apply independently of the county level issuer. Any allocation awarded specifically to a Local Issuer shall reduce the amount available for the county level Issuer accordingly.

(c) Subsequent to the determinations made pursuant to subdivision (b) and (b)(1) of this section, determine and announce whether a portion of the Single Family Housing Program Pool, expressed as a dollar amount and as a percentage of the Single Family Housing Pool, shall be reserved in a separate Single Family Housing Program Bonus Pool to be available for allocation by the Committee during the year and in each Allocation Round. The Single Family Housing Program Bonus Pool may be made available for allocation at any Allocation Round subsequent to the first Allocation Round in a given calendar year. The Committee will also designate which Applicants will be eligible for consideration for this pool.

(d) Determine and announce what amount expressed both as a percentage and as a dollar amount, of the State Ceiling that shall be available for allocation during the year and in each Allocation Round to Extra Credit Teacher Home Purchase Programs.

(e) Determine and announce what amount expressed both as a percentage and as a dollar amount, of the State Ceiling that shall be available for allocation during the year and in each Allocation Round to Small-Issue Industrial Development Bond Projects.

(f) Determine and announce what amount expressed both as a percentage and as a dollar amount, of the State Ceiling that shall be available for allocation during the year and in each Allocation Round to Exempt Facility Projects.

(g) Determine and announce what amount expressed both as a percentage and as a dollar amount, of the State Ceiling that shall be available for allocation during the year and in each Allocation Round to Student Loan Programs.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.82 and 8869.84, Government Code.

HISTORY

1. New article 3 (sections 5020-5021) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 3 (sections 5020-5021) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 3 (sections 5020-5021) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5021. Rescheduling of Calendar.

Note • History

Notwithstanding any other provision of this article, the Committee may, at any time, alter the competitiveness of Allocation Rounds, the number of Allocation Rounds, the portion of the State Ceiling that will be available to each type of State Ceiling Pool, or any Program within a Pool in each of the Allocation Rounds, the schedule of the Allocation Rounds and the deadlines for Applicants to submit Applications for consideration based on its finding, at a noticed meeting, that the changes are in the public interest and reasonably necessary to further the purposes for which the Committee was created.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84, Government Code.

HISTORY

1. New section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including new section heading, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 4. Application Schedule and Procedures

§5030. Announcement of Application Deadlines.

Note • History

Pursuant to article 2 of this chapter, the Committee shall as soon as practical, after the start of the the calendar year, give notice of the dates and deadlines to submit Applications for each Allocation Round and whether the Applications will be evaluated pursuant to an Open Application Process or a Competitive Application Process.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84, Government Code.

HISTORY

1. New article 4 (sections 5030-5039) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 4 (sections 5030-5039) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 4 (sections 5030-5039) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of article heading, new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5031. Eligible Applicants.

Note • History

(a) Any state or local governmental agency, joint powers authority (JPA), special district, nonprofit public benefit corporation that issues only student loan Bonds, or any other public agency that is empowered to issue debt may file an Application. The issuer of the Qualified Private Activity Bonds or Mortgage Credit Certificates must be the Applicant.

(b) Where the Applicant is administering a Single Family Housing Program on behalf of one or more jurisdictions, the Applicant must submit the Application to the Committee. The Applicant must also obtain, and provide to the Committee with its Application, a publicly adopted resolution or cooperative agreement from each jurisdiction participating in the Applicant's program that explicitly grant authority to the Applicant to conduct the program in the participant's jurisdiction.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(f), 8869.84(g), 8869.85(a), 8869.85(b), 8869.88 and 8869.89, Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5032. Applicant Responsibilities.

Note • History

(a) Applications for an Allocation of the State Ceiling shall include the information prescribed by the Committee specific to the State Ceiling Pool or program to which the Application is addressed. All questions set forth in the applicable Application must be answered completely and accurately. Each Application must be accompanied by the required documentation prescribed therein. Only complete Applications bearing the original signatures of an officer of the Applicant and the Project Sponsor, if applicable, will be accepted.

(b) Every Applicant shall certify to the Committee that it is in compliance with all applicable statutes, laws, rules, and regulations necessary for the transaction of its business.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a), 8869.85(b) and 8869.87, Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5033. Minimum Application Requirements.

Note • History

(a) Applications for an Allocation of the State Ceiling may be submitted to the Committee at its offices in Sacramento, California. An Applicant must submit all required information appropriate to the type of Bond for which the Applicant requests an Allocation. The Applicant shall submit a complete Application and supplemental material for each project or program for which the Applicant is requesting an Allocation. Only complete Applications bearing the original signatures of an officer of the Applicant and the Project Sponsor, if applicable, will be accepted.

(b) Unless specifically exempted, the following items must accompany all Applications:

(1) Performance Deposit Certification and evidence of the performance deposit as provided in section 5050(a).

(2) A non-refundable first installment of the filing fee of $600 made payable to the California Debt Limit Allocation Committee as provided in section 5054(a).

(3) Proof of the bond sale structure requirements pursuant to article 6 of this chapter, if applicable, (for all Applications other than Applications relating to a Mortgage Credit Certificate Program pursuant to chapter 3).

(4) An inducement or reimbursement resolution adopted by the governing body of the Applicant approving the project or program to be Bond financed and authorizing a senior officer, or in the case of a Student Loan Program, an officer of the sponsor of the Student Loan Program, to file the Application with the Committee, pay any fees required by the Committee, and certify the posting of the required performance deposit.

(5) For all Applications other than those relating to a Mortgage Credit Certificate Program pursuant to chapter 3, a Recovery Zone Economic Development Bond Project, or a Qualified Energy Conservation Bond Project (governmental bond only), a TEFRA Resolution adopted by the governing body of the jurisdiction in which the proposed project or program will be located, or in the case of a Student Loan Program, a resolution adopted by the sponsor of the Student Loan Program, memorializing the public approval process as required by 26 U.S.C. section 147(f). The resolution shall clearly indicate that a public hearing was properly noticed and held with respect to the proposed issuance of Bonds. Such resolutions shall be accompanied by the approval of the Bonds for the specific project or program by the applicable elected representative as such term is defined in 26 U.S.C. section 147(f)(2)(E). A copy of the fully executed adopted resolution with the approval of the Bond issue must be provided to the Committee:

(A) No less than five (5) calendar days prior to the first public posting of Committee recommendations as provided in section 5035.

(B)(i) In the event that a copy of an adopted TEFRA Resolution cannot be provided within the timeframes set forth in subdivision (b)(5)(A) of this section, the Applicant shall provide written certification as to the date, time, location, and outcome of the public hearing, the approval of the issuance of Bonds by the applicable elected representative, and that the actions comply with the provisions of 26 U.S.C. section 147(f). The certification shall be accompanied by a copy of the notice announcing the public hearing. If the required documentation is not received within the timeframe specified above, the Application will not be considered for an Allocation.

(ii) In the event that a TEFRA Resolution for a proposed project or program is to be signed by a member of the Committee, the Applicant may submit only the minutes of the required public hearing and proof of publication of the notice announcing the public hearing no later than thirty (30) calendar days following the application deadline. Applicants shall submit the signed TEFRA Resolution no later than the date on which they submit a Report of Action Taken, as required by section 5142.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(e), 8869.85(a), 8869.85(b) and 8869.90, Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section heading and section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5034. Ranking.

Note • History

Applications submitted under a Competitive Application Process will be ranked according to the number of points awarded by the Committee pursuant to the evaluation criteria specific to the State Ceiling Pool or program to which the Application is addressed.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(d) and 8869.84(e), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including repealer of section 5034, new section heading and renumbering of former section 5035 to section 5034, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5035. Preliminary Recommendations.

Note • History

(a) At least twenty-five (25) calendar days prior to any meeting at which the Committee will award Allocations, the Executive Director will post a preliminary list of Applicants for which the Executive Director expects to recommend an Allocation (and the amount of those Allocations) in ranked order. The list will be posted on the Committee's website as provided in section 5140.

(b) For the Qualified Residential Rental Program, the list will identify the points earned by each Applicant in all categories for which points are awarded, including the Applicant's aggregate total points.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading, renumbering of former section 5035 to section 5034 and renumbering of former section 5036 to section 5035, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5036. Appeals to Preliminary Recommendations.

Note • History

Any Applicant who wishes to appeal the recommendation or ranking as prescribed in section 5035 may file an appeal within five (5) business days of the date on which the preliminary list is posted. The appeal must set forth in reasonable detail the factual basis for the appeal. No new or additional information beyond that provided in the original Application may be provided to or considered in connection with the appeal. All appeals shall be made in writing and delivered to the Committee, no later than 5:00 p.m. (Pacific Time) on the last day specified for filing an appeal. An Applicant may only appeal the recommendation or ranking of its own Application(s). Each Applicant who has submitted an appeal will be notified of the decision on the appeal pursuant to section 5037.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading, renumbering of former section 5036 to section 5035 and renumbering and amendment of former section 5038 to section 5036, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5037. Final Recommendations.

Note • History

(a) At least ten (10) calendar days before the Committee meeting for which Allocations will be awarded, the final list of Applicants for which Allocations will be recommended (and the amounts of those Allocations) in ranked order will be posted. This list will reflect changes, if any, in ranking resulting from the appeals as provided in section 5036. The list shall be posted on the Committee's website as provided in section 5140.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading, repealer and new section and amendment of Note, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5038. Appeals to Final Recommendations.

Note • History

Any Applicant who timely appealed the preliminary determination and is dissatisfied with the final recommendation in connection with the Application or received no preliminary recommendation, may present its case to the Committee at the Allocation meeting at which the Application is considered, provided that the Applicant gives notice, in writing, of its intention to do so at least five (5) business days prior to the Allocation meeting. An Applicant's written notification must be delivered to the Committee, no later than 5:00 p.m. (Pacific Time) on the last day specified for providing notice.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading, renumbering of former section 5038 to section 5036 and new section 5038, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5039. Publishing of Agenda.

Note • History

At least ten (10) calendar days before all Committee meetings, the Executive Director shall post an agenda of all items to be heard by the Committee, on the Committee's website provided in section 5140.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and repealer and new section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 5. Performance Deposits and Fees

§5050. Performance Deposit Requirements.

Note • History

(a) Applications for Qualified Private Activity Bonds shall include evidence of a performance deposit equal to one-half of one percent (.5%) of the Allocation requested, not to exceed $100,000 made payable to the Applicant. Such evidence may include, but is not limited to a copy of a check, certified funds or in the case where the Application is for a Single Family Housing Program, a copy of a general ledger statement evidencing that funds have been reserved for this purpose, and a fully executed Performance Deposit Certification that certifies the required deposit has been made and is being held by the Applicant on the behalf of the Committee.

(b) Applicants must maintain the performance deposit until a written release is received from the Committee.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.84(e), Government Code.

HISTORY

1. New article 5 (sections 5050-5056) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 5 (sections 5050-5056) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 5 (sections 5050-5056) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of subsection (b), transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5051. Release of Performance Deposit.

Note • History

(a) The written authorization releasing a performance deposit or refund of deposits paid to the Committee will occur upon the Committee's receipt of a properly completed Report of Action Taken that is appropriate to the transaction type as required in section 5142 and all filing fees as required section 5054. The Committee Resolution shall provide the timeframe for using the Allocation and filing the required Report of Action Taken.

(b) In the case of a Qualified Residential Rental Project that also requests an allocation of state credit reserved for tax-exempt projects from the California Tax Credit Allocation Committee (CTCAC), the full release or refund of a performance deposit will be authorized if the Project Sponsor is able to demonstrate that the failure to use Allocation is solely due to the failure to receive an allocation of state tax credit.

(c) In the case of Mortgage Credit Certificates, the full release or refund of a deposit will not be authorized unless the Allocation has been converted to Mortgage Credit Certificate authority by the date specified in the Committee Resolution.

(d) Nothing in this section shall be construed to address the forfeiture of deposit relative to utilization of carryforward Allocations pursuant to section 5132.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(e) and 8869.90, Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading, amendment of subsection (a) and amendment of Note, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5052. Forfeiture of Performance Deposit.

Note • History

(a) If less than 80% of the Allocation is used to issue Bonds or issue at least one (1) Mortgage Credit Certificate prior to the expiration date, a pro-rata portion of the deposit will be forfeited equal to the same percentage ratio as the amount of unused Allocation bears to the amount of awarded Allocation unless the Committee determines there is good cause to return all or part of the deposit. If 80% or more of the Allocation is used to issue bonds prior to the expiration date or issue at least one (1) Mortgage Credit Certificate prior to the expiration date, a full refund of the performance deposit will be authorized.

(b) Applicants bear the risk of forfeiting all or part of their performance deposit if the Allocation is not used in accordance with the conditions and/or timeframes set forth in the Committee Resolution.

(c) The Applicant shall remit all forfeited performance deposits to the Committee within thirty (30) days of receipt of an invoice issued by the Committee.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(e) and 8869.86(c)(3), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading, repealer and new section and amendment of Note, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

5. Amendment of subsection (a) and repealer of subsection (b) filed 2-3-2012 as an emergency; operative 2-3-2012 (Register 2012, No. 5). A Certificate of Compliance must be transmitted to OAL by 8-1-2012 or emergency language will be repealed by operation of law on the following day.

6. Amendment of subsection (a) and repealer of subsection (b) refiled 8-1-2012 as an emergency, including relettering of subsections; operative 8-1-2012 (Register 2012, No. 31). A Certificate of Compliance must be transmitted to OAL by 10-30-2012 or emergency language will be repealed by operation of law on the following day.

7. Amendment of subsection (a) and repealer of subsection (b) refiled 10-30-2012 as an emergency; operative 10-30-2012 (Register 2012, No. 44). A Certificate of Compliance must be transmitted to OAL by 1-28-2013 or emergency language will be repealed by operation of law on the following day.

§5053. Withdrawn or Denied Applications.

Note • History

If the Applicant withdraws an Application prior to consideration by the Committee or if a Project fails to receive an award of Allocation, the performance deposit shall be automatically refunded or released and no written authorization from the Committee shall be necessary.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.84(e), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5054. Filing Fees.

Note • History

Each Applicant shall submit a filing fee in an amount equal to the product of the amount of Allocation actually used to issue Bonds, or Mortgage Credit Certificates multiplied by .00035. The payment of the fee shall be in two installments as follows:

(a) Initial filing fee. A check in the amount of $600 payable to the California Debt Limit Allocation Committee shall accompany the filing of an Application to cover the Committee's costs associated with reviewing Applications. This portion of the filing fee is not refundable under any circumstances but shall be credited against the total filing fee.

(b) Second installment of Filing Fee. The second installment of the filing fee will be due within thirty (30) days after Bond issuance or issuance of the first Mortgage Credit Certificate. The Committee will issue an invoice in conjunction with the Committee Resolution transferring the Allocation to the Applicant. The amount of the second installment of the filing fee is the product of the amount of Allocation used to issue Bonds or convert to Bond to Mortgage Credit Certificate authority multiplied by .00035, less the fee paid pursuant to subdivision (a) of this section.

(c) If the second filing fee is not received within thirty (30) days, the Committee shall instruct the Applicant to remit the amount due from the performance deposit maintained by the Applicant specifically for the Project or program that was awarded Allocation pursuant to section 5050.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.90, Government Code.

HISTORY

5. Amendment of subsection (b) filed 12-9-2011 as an emergency; operative 12-9-2011 (Register 2011, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-6-2012 or emergency language will be repealed by operation of law on the following day.

6. Amendment of subsection (b) refiled 6-1-2012 as an emergency; operative 6-1-2012 (Register 2012, No. 22). A Certificate of Compliance must be transmitted to OAL by 8-30-2012 or emergency language will be repealed by operation of law on the following day.

7. Amendment of subsection (b) refiled 8-29-2012 as an emergency; operative 8-29-2012 (Register 2012, No. 35). A Certificate of Compliance must be transmitted to OAL by 11-27-2012 or emergency language will be repealed by operation of law on the following day.

8. Certificate of Compliance as to 8-29-2012 order transmitted to OAL 11-26-2012 and filed 1-8-2013 (Register 2013, No. 2).

§5055. [Repealed]

Note • History

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.84(e), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including repealer of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5056. [Repealed]

Note • History

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.90, Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including repealer of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 6. Bond Sale Structure Requirements

§5060. Minimum Requirements.

Note • History

(a) Applicants, other than Applicants for a Mortgage Credit Certificate Program, shall provide evidence of a plan to privately place or publicly sell the proposed Bonds with or without Credit Enhancement for an amount no less than the amount requested in the Application. Bond sale structures that include a credit rating shall be subject to the following:

(1) Governmental Bond issues with full recourse to, or guaranteed by a general obligation of a governmental entity with taxing authority or Qualified Private Activity Bonds with recourse to the corporate parent entity of the Project Sponsor via a corporate guarantee must have an investment grade credit rating for the Project or the source of the aforementioned guarantee for the Project.

(2) Qualified Private Activity Bonds without a governmental or corporate guarantee shall provide a credit rating specifically for the transaction.

(3) Governmental Bond issues with limited recourse (i.e. lease revenue Bonds, project-specific recourse, or certificates of participation) may provide either a credit rating specifically for the transaction or provide evidence of a current credit rating for an existing outstanding Bond with the same source of debt repayment.

(4) All Bond ratings shall include evidence that the credit rating has been provided within the last six (6) months, or that the current credit rating for outstanding Bond(s) has been substantiated via the most recent updated surveillance review completed by a rating agency within the last thirty six (36) months.

(b) Applicants requesting an award of Allocation for pollution control projects administered by the California Pollution Control Financing Authority (CPCFA) or an award of Allocation for Industrial Development Bond Projects administered by California Industrial Development Financing Advisory Commission (CIDFAC) should refer to CPCFA or CIDFAC regulations for additional requirements.

(c) Notwithstanding the requirements set forth in article 6 of this chapter, the Committee may apply more stringent requirements and thresholds for a given Project based upon factors such as, but not limited to the size of the Bond issue and/or the specific ratings of the Applicant and/or Project Sponsor.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 6 (sections 5060-5064) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 6 (sections 5060-5064) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 6 (sections 5060-5064) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and repealer and new section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5061. Credit Enhanced Sales.

Note • History

(a) Applications for Bonds to be issued and sold through a public sale with Credit Enhancement will be deemed to have provided satisfactory evidence of a Bond sale plan required in section 5060 if documentation from the Credit Enhancer includes the following:

(1) Project Sponsor (borrower).

(2) Project name and location.

(3) Amount of the Credit Enhancement.

(4) Salient terms and conditions of the agreement, including but not limited to the fee structure, term, rate, security, collateral, guarantee, and recourse of the commitment.

(5) Evidence that the Credit Enhancer is committed to move forward with the transaction if the terms and conditions in the commitment letter are met.

(6) Acceptance of the terms and conditions of the Credit Enhancement by the Credit Enhancer and Project Sponsor evidenced by signatures from both parties.

(8) If Fannie Mae, (a private, shareholder-owned company with a charter from Congress requiring the company to support the housing finance system) or any additional or successor entity possessing a similar Congressional charter is providing the Credit Enhancement, the commitment issued by a qualified lender under the Delegated Underwriting and Servicing (DUS) program of Fannie Mae will constitute acceptable proof of Credit Enhancement.

(b) If the Bonds are to be variable rate Bonds, the short term rating shall be no less than “A1” by Standard & Poor's, “VMIG1” by Moody's, or “F-1” by Fitch IBCA, Inc. or the equivalent.

(c) If the Bonds are to be fixed rate Bonds, the Bond rating shall be no less than an “A” category or the equivalent as rated by a Nationally Recognized Statistical Rating Organization. If the Bond rating is below an “A” category or the equivalent, the Application will be evaluated pursuant to section 5065.

(d) If the California Housing Finance Agency is providing the Credit Enhancement, evidence of its investment grade rating shall be provided with the Application.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and repealer and new section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5062. Private Placement Sales.

Note • History

(a) Applications for Bonds to be issued and sold through a private placement will be deemed to have provided satisfactory evidence of a Bond sale plan required in section 5060 if documentation from the Bond purchaser(s) includes the following:

(1) Project Sponsor (borrower).

(2) Project name and location.

(3) Bond purchase amount.

(4) Salient terms and conditions, including but not limited to the fee structure, term, rate, security, collateral, guarantee, and recourse of the commitment including the interest rate of the agreement.

(5) Evidence that the lender is committed to move forward with the transaction if the terms and conditions in the commitment letter are met.

(6) Acceptance of the terms and conditions of the commitment letter by the purchaser and Project Sponsor.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and repealer and new section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5063. Unenhanced Bond Sales with an A Category or Higher Rating.

Note • History

(a) Applications for Bonds to be issued with an unenhanced credit rating equivalent to an “A” category or higher as rated by a Nationally Recognized Statistical Rating Organization will be deemed to have satisfied the minimum Bond sale requirements required in section 5060 if the following is provided:

(1) Placement Agent Statement.

(2) Certifications of no current Bond Defaults by the Issuer, guarantor (if any) and the Project Sponsor (if any).

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and repealer and new section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5064. Unenhanced Bond Sales with a BBB Category Credit Rating.

Note • History

(a) Applications for Bonds to be issued with an unenhanced credit rating in the “BBB” category or equivalent as rated by a Nationally Recognized Statistical Rating Organization will be deemed to have satisfied the minimum Bond sale requirements required in section 5060 if the following is provided:

(1) Placement Agent Statement.

(2) Certifications of no current Bond Defaults by the Issuer, guarantor (if any) and the Project Sponsor (if any).

(3) Brief summary of the marketing plan.

(b) In addition to the requirements of subdivision (a) of this section, awards of Allocation will be subject to the following conditions:

(1) Governmental Bond issues with full recourse to, or guaranteed by a general obligation of a governmental entity with taxing authority will be subject to minimum denominations of $5,000.

(2) Governmental Bond issues with limited recourse and all Qualified Private Activity Bonds will be required to have either of the following:

(A) The submission of an Investment Representation Letter from a Qualified Institutional Buyer or Sophisticated Investor due at Bond issuance; or

(B) Minimum Bond denominations of $100,000.

(C) Applicants will state in both the Application and the marketing plan whether they favor a CDLAC award with an Investment Representation Letter requirement or with the minimum denomination requirement. The marketing plan's stated issuance structure and offering summary must reflect the Applicant's preference.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and repealer and new section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

5. Change without regulatory effect amending subsection (a)(3) filed 7-27-2011 pursuant to section 100, title 1, California Code of Regulations (Register 2011, No. 30).

§5065. Unenhanced Sales with Unrated or Non-Investment Grade Credit Rating.

Note • History

(a) Applications for Bonds to be issued with unrated or unenhanced non-investment grade credit ratings will be permitted only for limited recourse Government Bond issues and Qualified Private Activity Bonds and will be deemed to have satisfied the minimum Bond sale requirements required in section 5060 if the following is provided:

(1) Placement Agent Statement.

(2) Certifications of no current Bond Defaults by the Issuer, guarantor (if any) and the Project Sponsor (if any).

(3) Complete marketing plan.

(b) In addition to the requirements of subdivision (a) of this section, awards of Allocation will be subject to the following conditions:

(1) The submission of a Traveling Investment Representation Letter due three (3) business days before issuance; or

(2) Minimum Bond denominations as follows:

(A) $100,000 for Bond issues equal to or less than $100,000,000; or

(B) $250,000 for Bond issues over $100,000,000.

(3) Applicants will state in both the Application and marketing plan whether they favor a CDLAC award with a Traveling Investment Representation Letter requirement or with the minimum denomination requirement. The marketing plan's stated issuance structure and offering summary must reflect the Applicant's preference.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New section filed 7-1-2011; operative 7-1-2011 (Register 2011, No. 26).

§5066. Qualifying Bond Defaults.

Note • History

(a) Bond Applications on behalf of a Project Sponsor with a Qualifying Bond Default or bankruptcy in the last three (3) years, and/or from a Bond Issuer with three (3) or more Qualifying Bond Defaults in the last five (5) years shall be restricted to private placement sales accompanied with an Investment Representation Letter or public sales with a minimum A category credit grade. Governmental Bond Applications on behalf of a governmental guarantor with a Qualifying Bond Default or bankruptcy within the last three (3) years shall be restricted to private placements with Qualified Institutional Buyers or to public sales rated A or higher.

(b) Bond Issuers and Project Sponsors who are subject to these restrictions may submit an appeal for a waiver of this requirement which shall be considered by the Committee. For Issuers, appeals which involve the following circumstances may be considered by the Executive Director:

(1) At least two (2) out of the three (3) Qualifying Bond Defaults referenced involve the same Project Sponsor; or

(2) At least two (2) out of the three (3) Qualifying Bond Defaults referenced involve transactions whose bond issuance occurred more than ten (10) years prior to the default recordation date.

(c) All appeals shall be made in writing, included with the Application and must set forth in reasonable detail the factual basis for the appeal.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New section filed 7-1-2011; operative 7-1-2011 (Register 2011, No. 26).

Article 7. Committee Resolution; Use of State Ceiling Allocations

§5080. Granting of Allocation.

Note • History

The granting of an Allocation by the Committee shall be memorialized in a written resolution adopted by the Committee. The Committee Resolution shall specify but not be limited to the following: the Applicant, the amount of the Allocation, the project or program name for which the Allocation has been provided, the Project Sponsor using the Bond proceeds where applicable, the location of the project or program, the expiration of date of the Allocation, and any additional conditions or restrictions imposed on the Allocation by the Committee.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

1. New article 7 (sections 5080-5082) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 7 (sections 5080-5082) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 7 (sections 5080-5082) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5081. Changes in Use of Allocation.

Note • History

Use of an Allocation shall be limited by the provisions of the Committee Resolution. Any changes to the specifications contained in the Committee Resolution prior to the issuance of Bonds, including, but not limited to, changes to the Bond sale structure, the provider of any Credit Enhancement, the direct purchaser of the Bonds if a private placement of Bonds is indicated, the entity selling Bonds, or the identity of the Applicant, must be approved by the Committee prior to the Bond issuance. The Committee may delegate the authority to approve these changes to the Committee Chair or to the Executive Director. The Executive Director may administratively approve routine and non-substantive changes that do not require additional Allocation.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5082. Certification of Bond Issuance.

Note • History

Following the Committee's receipt of a Report of Action Taken as provided in section 5142, the State Treasurer or his or her designee shall provide the Applicant with a letter certifying that the Bond issue meets the requirements of 26 U.S.C. section 146. For Mortgage Credit Certificate Applicants, this certification letter shall be provided the time that the Committee Resolution is transmitted.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.83(b), 8869.84(c), 8869.86(c) and 8869.93 Government Code.

HISTORY

Article 8. Expiration of Allocations

§5100. Program Expiration Dates.

Note • History

(a) The expiration date of the Allocation will be specified in the Committee Resolution and shall start from the date on which the Committee awards the Allocation. Notwithstanding extensions as provided in sections 5102, 5103 or 5104, or Allocations awarded on a carry-forward basis as provided in section 5131, the initial expiration dates to issue Bonds or convert Bonds to Mortgage Credit Certificate authority shall be no more than the following:

(1) One-hundred ten (110) days for the issuance of Qualified Residential Rental Bonds, except as provided in section 5101.

(2) Ninety (90) days for the issuance of Mortgage Revenue Bonds, Small-Issue Industrial Development Bonds, and Exempt Facility Bonds, or conversion of Bonds to Mortgage Credit Certificate authority.

(3) Ninety (90) days for the issuance of Recovery Zone Facility Bonds and Recovery Zone Economic Development Bonds, except as provided in section 5103.

(4) Ninety (90) days for the issuance of Qualified Energy Conservation Bonds.

(5) One-hundred twenty (120) days, for the issuance of at least one (1) Mortgage Credit Certificates, and Student Loan Bonds.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(e) and 8869.89, Government Code.

HISTORY

1. New article 8 (sections 5100-5107) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 8 (sections 5100-5107) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 8 (sections 5100-5107) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5101. Lottery for Qualified Residential Rental Bonds.

Note • History

To facilitate the issuance process for Qualified Residential Rental Bonds, Projects may be assigned an expiration date that is either ninety (90) days or less, one-hundred (100) days or one-hundred ten (110) days from the date of the Allocation. Within five (5) business days following each Allocation Round, these expiration dates will be assigned randomly by a lottery drawing conducted by the Executive Director. The Committee may extend the expiration date for the issuance of Qualified Residential Rental Bonds up to one-hundred thirty (130) days solely for the purpose of coordinating pooled transactions with a common Bond sale structure or for the co-ordination of low income housing tax credits. The Committee may delegate this authority to the Executive Director.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.84(e), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5102. Extensions to Expiration Dates.

Note • History

Excluding Recovery Zone Facility Bonds, Recovery Zone Economic Development Bonds, and Mortgage Credit Certificates, Allocations awarded during an Open Allocation Round may be extended up to the next regularly scheduled meeting at which time the Committee may elect to grant an additional extension up to ninety (90) days. The Committee may delegate this authority to the Executive Director.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(e) and 8869.89, Government Code.

HISTORY

§5103. Recovery Zone Bond Extensions.

Note • History

The Committee may extend the expiration date for the issuance of Recovery Zone Facility Bonds or Recovery Zone Economic Development Bonds to thirty (30) days. The Committee may delegate this authority to the Executive Director.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.84(e), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and repealer and new section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5104. Five Day Hardship Extensions.

Note • History

The Committee may grant an extension to the expiration dates provided in sections 5100, 5101, 5102, and 5103 up to five (5) additional business days for extreme hardship cases. The Committee may delegate this authority to the Executive Director.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(e) and 8869.89, Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and repealer and new section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5105. Year-End Allocations.

Note • History

Unless the Committee authorizes the carry-forward of an Allocation pursuant to article 10 of this chapter, the expiration date of all Allocations shall be no later than December 31 of the same calendar year pursuant to 26 U.S.C. section 146(d) which defines the State Ceiling. For Allocations awarded after October 15, the pending year-end expiration shall result in the assignment of expiration dates shorter than as prescribed in section 5100.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(e) and 8869.89, Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and repealer and new section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5106. Reversion to Committee.

Note • History

Upon expiration of an Allocation, any amount of the Allocation that has not been used to issue Qualified Private Activity Bonds or converted to Mortgage Credit Certificate authority will automatically revert to the Committee.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.89, Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5107. Veterans Home Loan Programs.

Note • History

Carryforward Allocations made pursuant to article 10 of this chapter to a Veterans Home Loan Program are not subject to expiration except as set forth in 26 U.S.C. section 146(f)(3).

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.84(e), Government Code.

HISTORY

4. Editorial correction (Register 2011, No. 26).

5. Certificate of Compliance as to 4-1-2011 order, including new section heading, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 9. Transfers of Allocation

§5120. Transfer Requirements.

Note • History

(a) Except for the reversion of unused Allocation pursuant to section 5106, Allocations are not transferable unless expressly authorized in writing by the Committee. The Committee may permit transfers of Allocation, including carryforward Allocations to the highest scoring Application on a waiting list or, if a waiting list does not exist, the highest scoring Project in queue in a current Allocation Round.

(b) Where the Applicant is administering a Single Family Housing Program for itself and other participating jurisdictions, the use of Allocation within the participating jurisdictions listed in the Committee Resolution is not considered a transfer. For purposes of this subdivision, participating jurisdictions means those entities that have provided written assignment of their rights to secure an Allocation to the Applicant. The Applicant shall submit copies of the assignments with the Application.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.85(c), 8869.85(d) and 8869.86(a)(3), Government Code.

HISTORY

1. New article 9 (section 5120) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 9 (section 5120) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 9 (section 5120) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of subsection (a), transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 10. Carry-Forward Allocations

§5130. Prohibitions.

Note • History

An Applicant receiving an Allocation may not carryforward the Allocation to a subsequent calendar year unless expressly authorized in writing by the Committee.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.85(c), Government Code.

HISTORY

1. New article 10 (sections 5130-5132) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 10 (sections 5130-5132) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 10 (sections 5130-5132) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including new section heading, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5131. Granting of Carryforward Allocations.

Note • History

The Committee may award Allocation on a carryforward basis for the purpose of providing sufficient time for Applicants to issue Bonds under the current year's State Ceiling and/or to ensure all remaining portions of the State Ceiling are issued.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.85(c) and 8869.86(a)(3), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5132. Expiration of CarryForward Allocations.

Note • History

The Committee will specify the expiration date of the carryforward Allocation in the Committee Resolution memorializing the grant of the Allocation. If any amount of the carryforward Allocation has not been used to issue Bonds or convert Bonds to Mortgage Credit Certificate Authority on or before the expiration date, the performance deposit will be forfeited to the Committee and the Committee may require the Issuer to transfer the carryforward Allocation to another approved Project by the same Issuer in accordance with section 5120. If the Committee does not require a transfer of the carryforward Allocation, the expiration date may be extended with the approval of the Executive Director until the Allocation expires pursuant to 26 U.S.C. section 146(f)(3) or to each subsequent deadline for submitting Applications to the Committee. At that time, the Committee may require the Issuer to transfer the carryforward Allocation to another approved Project by the same Issuer.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(e), 8869.85(c) and 8869.86(a)(3), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5133. CarryForward for Draw-Down Bond Issuances. [Repealed]

Note • History

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(e), 8869.85(c) and 8869.86(a)(3), Government Code.

HISTORY

1. New section filed 7-1-2011; operative 7-1-2011 (Register 2011, No. 26).

2. Repealer filed 12-9-2011 as an emergency; operative 12-9-2011 (Register 2011, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-6-2012 or emergency language will be repealed by operation of law on the following day.

3. Repealer refiled 6-1-2012 as an emergency; operative 6-1-2012 (Register 2012, No. 22). A Certificate of Compliance must be transmitted to OAL by 8-30-2012 or emergency language will be repealed by operation of law on the following day.

4. Repealer refiled 8-29-2012 as an emergency; operative 8-29-2012 (Register 2012, No. 35). A Certificate of Compliance must be transmitted to OAL by11-27-2012 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 8-29-2012 order transmitted to OAL 11-26-2012 and filed 1-8-2013 (Register 2013, No. 2).

Article 11. Reporting Requirements

§5140. Contact Information.

Note • History

All reports required in this article shall be transmitted to the Committee at the address, e-mail or fax number listed on the Committee's website, www.treasurer.ca.gov/cdlac.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

1. New article 11 (sections 5140-5143) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 11 (sections 5140-5143) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 11 (sections 5140-5143) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of article heading and new section heading, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5141. Notification of Bond Issue.

Note • History

Within twenty-four (24) hours of using the Allocation to issue Bonds or to convert Bond authority to Mortgage Credit Certificate authority, an Applicant or its counsel shall notify the Committee of such use of the Allocation via the e-mail address or facsimile number as provided in section 5140. The notification shall identify the Applicant, the Project or program, the date the Allocation was used, and the amount of the Allocation used.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.86(c), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5142. Report of Action Taken.

Note • History

Within fifteen (15) calendar days of the first Bond closing, conversion of Bonds to Mortgage Credit Certificate authority, or issuance of the first Mortgage Credit Certificate, an Applicant or its counsel shall transmit to the Committee information regarding the issuance of Bonds or the conversion of Bonds to Mortgage Credit Certificate authority by submitting the appropriate Report of Action Taken to the address as provided in section 5140.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.86(c), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5143. Notification of Carryforward Election.

Note • History

Applicants awarded Allocation on a carryforward basis as prescribed in section 5131 shall transmit to the Committee, via the address provided in section 5140, the documents provided to the Internal Revenue Service reporting the carryforward election no later than February 1st of the year immediately following the year in which the Allocation was awarded.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.86(c), Government Code.

HISTORY

§5144. Annual Applicant Public Benefits and On-Going Compliance Self Certification.

Note • History

All Projects that receive an Allocation and are within an existing regulatory period and/or compliance period shall be monitored for compliance with the terms and conditions of the Committee Resolution by the Applicant (Issuer). The Applicant shall complete and submit the Annual Applicant Public Benefits and On-going Compliance Self Certification (10-1-11), which is hereby incorporated by reference, provided on the Committee website certifying whether or not the Project meets the terms and conditions of the Committee Resolution. The self certification must be submitted by the Applicant to the California Debt Limit Allocation Committee no later than March 1 of each year (or at such other time as requested by the Committee). For calendar year 2012 only, Issuers shall submit self-certifications for pre-2011 bond issuances no later than the extended deadline of September 1, 2012. The requirement shall be enforceable by the Committee through an action for specific performance or other available remedy.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a), 8869.85(b) and 8869.86(c), Government Code.

HISTORY

1. New section filed 7-1-2011; operative 7-1-2011 (Register 2011, No. 26).

2. Repealer and new section heading, section and Note filed 12-9-2011 as an emergency; operative 12-9-2011 (Register 2011, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-6-2012 or emergency language will be repealed by operation of law on the following day.

3. Repealer and new section heading, section and Note refiled 6-1-2012 as an emergency; operative 6-1-2012 (Register 2012, No. 22). A Certificate of Compliance must be transmitted to OAL by 8-30-2012 or emergency language will be repealed by operation of law on the following day.

4. Repealer and new section heading, section and Note refiled 8-29-2012 as an emergency; operative 8-29-2012 (Register 2012, No. 35). A Certificate of Compliance must be transmitted to OAL by 11-27-2012 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 8-29-2012 order transmitted to OAL 11-26-2012 and filed 1-8-2013 (Register 2013, No. 2).

Article 12. Universal Evaluation Criteria for All Applications

§5150. Satisfactory Evidence.

Note • History

Wherever these regulations require that an Applicant demonstrate a certain condition or characteristic or satisfy certain minimum requirements, each such condition or characteristic or minimum requirement must be demonstrated by satisfactory evidence. The Executive Director shall, upon delegation by the Committee, determine whether each condition, characteristic or minimum requirement has been satisfactorily demonstrated and may refuse to consider any Application that has not satisfactorily demonstrated every minimum requirement.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.83(b) and 8869.84(c), Government Code.

HISTORY

1. New article 12 (sections 5150-5155) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 12 (sections 5150-5155) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 12 (sections 5150-5155) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

§5151. Evaluation of Points.

Note • History

Wherever the Application process contemplates the awarding of points, the Applicant must demonstrate by satisfactory evidence that the related criterion has been satisfied. Where it is determined by Committee staff that the evidence has not been satisfactorily demonstrated, the Executive Director shall not award the related points.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading, repealer of former section 5151 and renumbering of former section 5152 to section 5151, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5152. Readiness Threshold.

Note • History

The Applicant must demonstrate satisfactory evidence to Committee staff that it can use the Allocation within the time frame as provided in article 8 of this chapter.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(e), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading, renumbering of former section 5152 to section 5151 and renumbering of former section 5153 to section 5152, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5153. Measurement of Distance.

Note • History

Wherever these regulations contemplate an award of points based on a measurement of distance, that distance shall be measured from the perimeter of the proposed Project to the perimeter of the site amenity referenced. Applications shall include a detailed scaled-for-distance map from which the Committee can document that the measurement criteria have been met.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading, renumbering of former section 5153 to section 5152 and renumbering of former section 5154 to section 5153, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5154. Discovery of Erroneous Information.

Note • History

It is the responsibility of each Applicant and each Project Sponsor to provide the Committee with complete and accurate information at the time the Application is filed. If the Applicant/Project Sponsor (or their attorneys, agents, employees, or other representatives) provides material that is incomplete, erroneous, inaccurate, misleading or false as to a fact to the Executive Director's decision-making process, the Application may be rejected. If incomplete, erroneous, inaccurate, misleading or false information is discovered by Committee staff after an Allocation has been made, the Allocation may be rescinded if Bonds have not been sold or an election to convert Bond authority to Mortgage Credit Certificates has not been filed with the Internal Revenue Service. If Bonds have been sold or converted to Mortgage Credit Certificates, the Committee may take other action as it deems appropriate.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading, renumbering of former section 5154 to section 5153 and new section 5154, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5155. [Repealed]

Note • History

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including repealer of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Chapter 2. Qualified Residential Rental Projects

Article 1. Definitions

§5170. Definitions.

Note • History

In addition to the definitions set forth in Government Code section 8869.82 and unless otherwise required by the context, the following terms as used in this chapter are defined as follows:

“Adaptive Reuse” means the retrofitting and repurposing of existing buildings that create new Qualified Residential Rental Project units for the market, and expressly excludes any Project that involves rehabilitation or any construction affecting existing residential rental units.

“AMI” or “Area Median Income” means the median family income of a county as set by the U.S. Department of Housing and Urban Development.

“Capital Needs Assessment” means a document containing the information defined in section 5212.

“Community Revitalization Area” means a Distressed Community for which a comprehensive Community Revitalization Plan has been adopted and efforts specific to the plan have occurred.

“Community Revitalization Plan” means a comprehensive plan adopted by a public entity that details specific efforts being undertaken in a neighborhood or a community, that will result in the improvement of the economic conditions and the quality of life in that area.

“Energy Star” means the certification satisfying the requirements of 42 U.S.C. section 6294(a).

“Federally Assisted At Risk Project” means a property that is at risk of conversion as defined by Revenue and Taxation Code section 17058(c)(4) and by section 10325(g)(5)(B)(i)-(v) of Title 4 of the California Code of Regulations; or a property that otherwise meets all requirements of Revenue and Taxation Code section 17058(c)(4) and section 10325(g)(5)(B)(i) of Title 4 of the California Code of Regulations, except that the federal assistance due to expire within two (2) calendar years of application to the Committee may include a tax-exempt private activity Bond regulatory agreement.

“FHA” means Federal Housing Administration.

“FHA Financed Project” means a project financed under 221(d)3, 221(d)4, 223(f) Federal Housing Administration insurance program, or the Section 202 or 811 Capital Advance program, or any HUD-sponsored capital financing pilot program.

“Gross Rent” means gross rent as defined by 26 U.S.C. 42(g)(2)(B). Utility allowances, as provided by 26 U.S.C. section 42(g)(2)(B)(ii), will be included for purposes of this calculation. Projects that are Federally Assisted At Risk Projects or Projects that request low income housing tax credits are required to use Gross Rents for the calculation of restricted rents.

“HOPE VI Project” means a Project funded by a grant from the Urban Revitalization Program created by Public Law 102-389 and administered by the Department of Housing and Urban Development under section 24 of the United States Housing Act of 1937 (42 U.S.C. section 1437(v)).

“HUD” means the United States Department of Housing and Urban Development.

“HUD Firm Commitment Letter” means a HUD loan commitment for FHA financing.

“MAP Lender” means a HUD-qualified lender that prepares FHA forms and performs preliminary underwriting for certain FHA loan applications.

“New Construction” means a Qualified Residential Rental Project with 100% of its units constituting new units to the market, and expressly excludes any Project that involves rehabilitation or any construction affecting existing residential rental units.

“Public Funds” means direct grants, below market rate or subsidized loans, loans where the repayment of the financing is deferred into the future or based on residual receipts from the Project's cash flow, direct funds from a public source including, but not limited to, waiver of fees or the value of land donated or leased by a public agency substantiated either by the actual purchase price of the land or by an appraisal whichever is lower, excluding a property tax exemption. Public Funds do not include any Allocation awarded by the Committee.

“Qualified Project Period” shall mean the same as defined in 26 U.S.C. section 142(d)(2)(A) and regulations promulgated thereunder, except that the minimum term shall be 30 years.

“Rent Comparability Matrix” means the form by which the third party that has completed the Market Study provides information comparing the Project to comparable properties in the Project's market area and evidences that each of the Project's unit types has met the requirements of Section 5191(b).

“Scattered Site Project -- Competitive Round” means multiple location Projects which are either Federally Assisted At-Risk Projects within the same city or within a five (5) mile diameter circle; or Non-Federally Assisted At Risk Projects within a one (1) mile diameter circle.

“Scattered Site Project -- Non-Competitive Round” means multiple location Projects which are rehabilitation projects proposed to be financed through a single pooled bond transaction within the same city or within a ten (10) mile diameter circle. All other multiple location projects shall be considered to be “Scattered Site Project - Competitive Round” projects and shall be subject to all requirements applicable to such projects.

“Standard QRRP Competitive Application” means the Application for an Allocation of the Qualified Residential Rental Project Pool titled “Competitive Application for an Allocation of the State Ceiling on Qualified Private Activity Bonds for a Qualified Residential Rental Project (QRRP)” (revised 3-21-12), which is hereby incorporated by reference.

“Standard QRRP Non-Competitive Application” means the Application for an Allocation of the Qualified Residential Rental Project Pool titled “Non-Competitive Application for an Allocation of the State Ceiling on Qualified Private Activity Bonds for a Qualified Residential Rental Project (QRRP)” (revised 3-21-12), which is hereby incorporated by reference.

“Supplemental Allocation” means the award of allocation to a Qualified Residential Rental Program Applicant for a Project that received previous Allocation.

“Supplemental Allocation Request Letter” means the written request for Supplemental Allocation for Projects having been awarded Allocation within the last thirty six (36) months that may be submitted in lieu of a complete Application. The letter must be signed and include information about the Project including the date and amount of prior Allocation, the current status of the Project, revised sources and uses of funds, justification for the request for additional Allocation, and any additional information the Committee or Executive Director deems necessary.

“Sustainable Building Methods” means any method or materials used in the development or rehabilitation of a Qualified Residential Rental Project that will increase energy efficiency by at least 15% above the energy standards set forth by the California Energy Commission in Part 6 (commencing with section 10-101) of Title 24 of the California Code of Regulations or a rehabilitation Project not subject to Title 24 Standards that reduces energy use on a per square foot basis by 25%.

“Table 1” means the table included in the Applications for a Qualified Residential Rental Project that itemizes the proposed number of units, square footage, rent, utility allowance, and the income restriction each unit or other characteristics deemed appropriate by the Committee for the subject Project.

“Table 2” means the table included in the Applications for a Qualified Residential Rental Project that itemizes the proposed total of all units, all restricted units, the number and percentage of units restricted for households at or below 50% of AMI, at or below 60% of AMI, or other characteristics deem appropriate by the Committee for the subject Project.

“State of California Universal Application for the Development of Affordable Rental Housing” means the State of California Universal Application for the Development of Affordable Rental Housing as provided by the California Department of Housing and Community Development, the California Housing Finance Agency, the California Tax Credit Allocation Committee, and the California Debt Limit Allocation Committee for an Allocation of the Qualified Residential Rental Project Pool (revised 8-13-10), which is hereby incorporated by reference.

“Universal Competitive Addendum” means the application addendum submitted along with a State of California Universal Application for the Development of Affordable Rental Housing as provided by the California Department of Housing and Community Development, the California Housing Finance Agency, the California Tax Credit Allocation Committee, and the California Debt Limit Allocation Committee for an Allocation of the Qualified Residential Rental Project Pool titled “Competitive Application for an Allocation of the State Ceiling on Qualified Private Activity Bonds for a Qualified Residential Rental Project (QRRP) Universal Application Addendum” (revised 3-21-12), which is hereby incorporated by reference.

“Universal Non-Competitive Addendum” means the application addendum submitted along with a State of California Universal Application for the Development of Affordable Rental Housing as provided by the California Department of Housing and Community Development, the California Housing Finance Agency, the California Tax Credit Allocation Committee, and the California Debt Limit Allocation Committee for an Allocation of the Qualified Residential Rental Project Pool titled “Non-Competitive Application for an Allocation of the State Ceiling on Qualified Private Activity Bonds for a Qualified Residential Rental Project (QRRP) Universal Application Addendum” (revised 3-21-12), which is hereby incorporated by reference.

“VOC” means a volatile organic compound.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

1. New chapter 2 (articles 1-9, sections 5170-5250), article 1 (section 5170) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New chapter 2 (articles 1-9, sections 5170-5250), article 1 (section 5170) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New chapter 2 (articles 1-9, sections 5170-5250), article 1 (section 5170) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

5. Amendment of definitions of “Standard QRRP Competitive Application,” “Standard QRRP Non-Competitive Application,” “Universal Competitive Addendum” and “Universal Non-Competitive Addendum” filed 12-9-2011 as an emergency; operative 12-9-2011 (Register 2011, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-6-2012 or emergency language will be repealed by operation of law on the following day.

6. Repealer of definition of “Redevelopment Agency Housing Set Aside Program” filed 4-4-2012 as an emergency; operative 4-4-2012 (Register 2012, No. 14). A Certificate of Compliance must be transmitted to OAL by 10-1-2012 or emergency language will be repealed by operation of law on the following day.

7. Amendment of definitions of “Standard QRRP Competitive Application,” “Standard QRRP Non-Competitive Application,” “Universal Competitive Addendum” and “Universal Non-Competitive Addendum” refiled with further amendments to those definitions 6-1-2012 as an emergency; operative 6-1-2012 (Register 2012, No. 22). A Certificate of Compliance must be transmitted to OAL by 8-30-2012 or emergency language will be repealed by operation of law on the following day.

8. New definitions of “FHA,” “FHA Financed Project,” “HUD,” “HUD Firm Commitment Letter,” “MAP Lender” and “Scattered Site Project--Non-Competitive Round” and amendment of definitions of “Federally Assisted At Risk Project,” “Scattered Site Project--Competitive Round,” “Standard QRRP Competitive Application,” “Standard QRRP Non-Competitive Application,” “Supplemental Allocation Request Letter,” “Universal Competitive Addendum” and “Universal Non-Competitive Addendum” filed 8-1-2012 as an emergency; operative 8-1-2012 (Register 2012, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-28-2013 or emergency language will be repealed by operation of law on the following day.

9. Amendment of definitions of “Standard QRRP Competitive Application,” “Standard QRRP Non-Competitive Application,” “Universal Competitive Addendum, and “Universal Non-Competitive Addendum” refiled 8-29-2012 as an emergency; operative 8-29-2012 (Register 2012, No. 35). A Certificate of Compliance must be transmitted to OAL by 11-27-2012 or emergency language will be repealed by operation of law on the following day.

10. Certificate of Compliance as to 4-4-2012 order, including amendment of definitions of “Standard QRRP Competitive Application,” “Standard QRRP NonCompetitive Application,” “Universal Competitive Addendum” and “Universal Non-Competitive Addendum,” transmitted to OAL 9-6-2012 and filed 9-27-2012 (Register 2012, No. 39).

11. Certificate of Compliance as to 8-29-2012 order transmitted to OAL 11-26-2012 and filed 1-8-2013 (Register 2013, No. 2).

12. New definitions of “FHA,” “FHA Financed Project,” “HUD,” “HUD Firm Commitment Letter,” “MAP Lender” and “Scattered Site Project” and amendment of definitions of “Federally Assisted At Risk Project,” “Scattered Site Project--Competitive Round,” “Standard QRRP Competitive Application,” “Standard QRRP Non-Competitive Application,” “Supplemental Allocation Request Letter,” “Universal Competitive Addendum” and “Universal Non-Competitive Addendum” refiled 1-24-2013 as an emergency; operative 1-24-2013 (Register 2013, No. 4). A Certificate of Compliance must be transmitted to OAL by 4-24-2013 or emergency language will be repealed by operation of law on the following day.

Article 2. Applications

§5180. Application Process.

Note • History

Applicants seeking an Allocation of the Qualified Residential Rental Project Pool shall be considered in accordance with the provisions of chapter 1 and the submission of a Standard QRRP Competitive Application or a Standard QRRP Non-Competitive Application depending on whether the Allocation Round for which the Application is being submitted is being conducted under a competitive or non-competitive process as provided in section 5010(b).

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 2 (sections 5180-5183) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 2 (sections 5180-5183) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 2 (sections 5180-5183) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5181. Concurrent Application with Other Agencies.

Note • History

Applicants for an Allocation of the Qualified Residential Rental Project Pool that also seek financing in conjunction with the California Department of Housing and Community Development and/or the California Housing Finance Agency may submit a Universal Competitive Addendum or a Universal Non-Competitive Addendum depending on whether the Allocation Round for which the Application is being submitted is being conducted under a competitive or non-competitive process as provided in section 5010(b).

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5182. Concurrent Application with CTCAC.

Note • History

Applicants requesting an Allocation for a Qualified Residential Rental Project who concurrently have an application for the same Project filed with CTCAC for consideration under the nine (9%) percent program set forth in section 10325 of Title 4 of the California Code of Regulations will not be permitted to apply to the Committee unless the application to CTCAC is withdrawn prior to the Application deadline.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5183. Subsequent Application with CTCAC.

Note • History

Applicants that receive an Allocation for a Qualified Residential Rental Project are prohibited from subsequently requesting an allocation of 9% low income housing tax credits from CTCAC for the same Project, except where the Committee grants a waiver based on extraordinary circumstances, including but not limited to, the passage of significant time or circumstances outside the Applicant's control, and makes a determination that the waiver is consistent with the provision of affordable housing.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 3. Minimum Requirements

§5190. Readiness.

Note • History

In its Application, the Project Sponsor must demonstrate its readiness to use the Allocation as set forth in this section.

(a) Demonstrated site control. The Applicant shall provide evidence that the Project site is at the time of Application submission within the control of the Applicant or Project Sponsor. A current title report, completed no more than ninety (90) days prior to Application deadline as provided in section 5030, shall be submitted with all applications for the purposes of this requirement.

(1) Site control may be evidenced by any of the following:

(A) The Applicant or Project Sponsor holds fee title as evidenced by the title report;

(B) An executed lease agreement or lease option for the length of time the Project will be regulated under this program between the Applicant or Project Sponsor and the owner of the subject property;

(C) An executed disposition and development agreement for the length of time the Project will be regulated under this program between the Project Sponsor and a public agency; or

(D) A valid, current, and enforceable contingent purchase and sale agreement or option agreement between the Project Sponsor and the owner of the subject property, including evidence that all extensions necessary to keep the agreement current through the date of the award of Allocation have been executed.

(E) Valid, current and enforceable purchase and sale agreements, contingent purchase sale or option agreements in combination between the Project Sponsor, a third party and the owner of the subject property such that the Committee can determine that upon a grant of Allocation the Project Sponsor has a right to acquire the subject property.

(F) The Executive Director may determine that site control has been demonstrated where a local agency has documented its intention to acquire the site, or portion of the site, through eminent domain proceedings as evidenced by order(s) of possession.

(b) Local Approvals and Zoning. The Project Sponsor shall provide evidence, at the time the Application is filed, that the site is zoned for the Project, as proposed, and that all applicable local land use approvals that are subject to the discretion of local elected officials and/or subject to public appeal have been obtained. Examples of such approvals include, but are not limited to, general plan amendments, re-zonings, and conditional use permits. The Applicant may include a completed Verification of Zoning and Local Approvals form signed by an appropriate local government planning official of the applicable local jurisdiction for the purpose of satisfying this requirement.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 3 (sections 5190-5194) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 3 (sections 5190-5194) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 3 (sections 5190-5194) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

8. Certificate of Compliance as to 8-29-2012 order transmitted to OAL 11-26-2012 and filed 1-8-2013 (Register 2013, No. 2).

§5191. Income and Rent Restrictions.

Note • History

All Qualified Residential Rental Projects must meet the following minimum income and rent restrictions, which will be included in the Committee Resolution.

(a) Minimum Income Restrictions. A minimum of ten percent (10%) of the units in a Qualified Residential Rental Project must have Gross Rents that are restricted to households with incomes no greater than fifty percent (50%) of the AMI. The rent restricted units that meet this requirement, with the exception of Mixed Income Pool Projects and units located on the upper level floors of high-rise developments, shall be generally distributed in terms of location and number of bedrooms throughout the Project. All units shall be of comparable quality and offer a range of sizes and number of bedrooms comparable to those units that are available to other tenants.

(b) Minimum Rent Restrictions. The proposed tenant paid rents for each Restricted Rental Unit type (defined by bedroom count) in the proposed development shall be at least ten percent (10%) below the weighted average rent for comparable market rate units and each Restricted Rental Unit's value ratio (dollars per square foot) shall be at or below the weighted average unit value ratio for comparable market rate units as demonstrated in a Rent Comparability Matrix meeting the requirements of article 4 of this chapter.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of subsection (a) and repealer and new subsection (b), transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5192. Minimum Term of Restrictions.

Note • History

(a) Income and rent restrictions must be maintained for the Qualified Project Period. For the purposes of this section, the Qualified Project Period is that period which begins on the date when ten percent (10%) occupancy is achieved and ends on the later of:

(1) Thirty (30) years following the date on which fifty percent (50%) occupancy is achieved, or

(2) The date on which bonds are no longer outstanding.

(b) All Projects shall be subject to subdivision (a) or subdivision (c) of this section, unless a Project is intended for eventual tenant homeownership, in which case evidence of a financially feasible program must be submitted in the Application. The program shall include but is not limited to, an exit strategy, home ownership counseling, funds to be set aside to assist tenants in the purchase of units, no involuntary relocation of tenants, and a plan for conversion of the facility to home ownership no sooner than the end of the initial 15-year Qualified Project Period as required by 26 U.S.C. section 142(d)(2)(A). In such a case, the regulatory agreement shall contain provisions for the enforcement of such covenants.

(c) If the round in which an Application is being considered has been established under an Open Application Process, the Committee shall increase the minimum term of restriction to fifty-five (55) years following the date on which fifty percent (50%) occupancy is achieved.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of subsection (b) and repealer and new subsection (c), transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5193. Debt Service Coverage Ratio.

Note • History

For Qualified Residential Rental Projects, a minimum debt service coverage ratio (the ratio of the net operating income from the Project divided by the required debt service on the debt associated with the Project) shall be no less than 1.15 except for FHA/HUD projects, RHS projects or projects financed by the California Housing Finance Agency.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5194. Project Costs.

Note • History

Applications with Projects where total project costs exceed $400,000 per unit or with Rural Projects where total project costs exceed $350,000 per unit must include an explanation for why costs are beyond these levels and demonstrate that such costs are justified. Applications with high project costs may be presented to the Committee individually from the balance of recommended Projects.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 4. Market Studies

§5200. Minimum Requirements.

Note • History

The Market Study must meet the guidelines as required by the California Tax Credit Allocation Committe, Title 4, Division 17, Chapter 1, Section 10322(h)(9).

(a) A full Market Study with a Rent Comparability Matrix for each applicable unit type prepared within (180) days of the Application deadline by an independent third party having no identity of interest with the Applicant, Project Sponsor, or Related Party is required.

(b) The study must establish both need and demand for the proposed Project. If the Market Study does not support sufficient need and demand for the Project, the Application may be considered ineligible to receive an award of Allocation.

(c) Except where a waiver is obtained from the Executive Director in advance of a submitted application, CDLAC shall not award an allocation to a rural new construction project if a tax-exempt bond, tax credit, or other publicly assisted project housing the same population is currently under construction within the same market area. The Executive Director may grant a waiver where newly constructed housing would be replacing specific existing housing, or where extraordinary demand warrants an exception to the prohibition. The Executive Director may also grant a waiver for subsequent phases of a single new construction project where those phases are described in the application of the initial phase.

(d) A market study shall be updated when either proposed subject project rents change by more than five percent (5%), or the distribution of higher rents increased by more than 5% or 180 days have passed since the first site inspection date of the subject property and comparable properties. CDLAC shall not accept an updated market study when more than twelve (12) months have passed since the earliest listed site inspection date of either the subject property or any comparable property. In such cases, applicants shall provide a new market study.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 4 (section 5200) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 4 (section 5200) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 4 (section 5200) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

5. Amendment filed 12-9-2011 as an emergency; operative 12-9-2011 (Register 2011, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-6-2012 or emergency language will be repealed by operation of law on the following day.

6. New first paragraph, redesignation of portions of former section as new subsections (a)-(c) and new subsection (d) filed 4-4-2012 as an emergency; operative 4-4-2012 (Register 2012, No. 14). A Certificate of Compliance must be transmitted to OAL by 10-1-2012 or emergency language will be repealed by operation of law on the following day.

7. Amendment refiled 6-1-2012 as an emergency; operative 6-1-2012 (Register 2012, No. 22). A Certificate of Compliance must be transmitted to OAL by 8-30-2012 or emergency language will be repealed by operation of law on the following day.

8. Amendment refiled 8-29-2012 as an emergency; operative 8-29-2012 (Register 2012, No. 35). A Certificate of Compliance must be transmitted to OAL by 11-27-2012 or emergency language will be repealed by operation of law on the following day.

9. Certificate of Compliance as to 4-4-2012 order transmitted to OAL 9-6-2012 and filed 9-27-2012 (Register 2012, No. 39).

10. Certificate of Compliance as to 8-29-2012 order transmitted to OAL 11-26-2012 and filed 1-8-2013 (Register 2013, No. 2).

Article 5. Sustainable Building Standards

§5205. Minimum Requirements.

Note • History

(a) Applicants shall provide a certification of their intent to utilize landscaping and construction materials which are compatible with the neighborhood in which the proposed project is to be located, and that the architectural design and construction materials will provide for low maintenance and durability, as well as be suited to the environmental conditions to which the project will be subjected. Additionally, the certification of intent shall note that the following minimum specifications will be incorporated into the project design for all new construction and rehabilitation projects:

(1) Energy Efficiency. All new construction buildings shall be fifteen percent (15%) better than the current Energy Efficiency Standards (California Code of Regulations, Part 6 of Title 24). All rehabilitated buildings shall have improved energy efficiency above the modeled energy consumption of the building(s) based on existing conditions, with at least a 10% post-rehabilitation improvement over existing conditions energy efficiency achieved for each building.

(2) CALGreen Compliance. New construction high-rise buildings shall meet the mandatory provisions of the CALGreen Code (Title 24, Part 11 of the California Code of Regulations). All rehabilitation projects, including high-rise rehabilitation projects, are required to meet the mandatory provisions of the CALGreen Code for any building product or system being replaced as part of the scope of work.

(3) Landscaping. A variety of plant and tree species that require low water use shall be provided in sufficient quantities based on landscaping practices in the general market area and low maintenance needs. Projects shall follow the requirements of the State's Model Water Efficient Landscape Ordinance (Title 23, California Code of Regulations, Section 490 et seq.) (http://www.water.ca.gov/wateruseefficiency/landscapeordinance/) unless a local landscape ordinance has been determined to be at least as stringent as the current model ordinance.

(4) Roofs. Roofing shall carry a three-year subcontractor guarantee and at least a 20-year manufacturer's warranty.

(5) Exterior Doors. Insulated or solid core, flush, paint or stain grade exterior doors shall be made of metal clad or hardwood faces, with a standard one-year guarantee and all six sides factory primed.

(6) Appliances. ENERGY STAR rated appliances, including but not limited to, refrigerators, dishwashers, and clothes washers shall be installed when such appliances are provided within low-income units and/or in on-site community facilities unless waived by the Executive Director.

(7) Window Coverings. Window coverings shall be provided and may include fire retardant drapes or blinds.

(8) Water Heater. For units with individual tank-type water heaters, minimum capacities are to be 30 gallons for one- and two-bedroom units and 40 gallons for three-bedroom units or larger.

(9) Floor Coverings. For light and medium traffic areas vinyl or linoleum shall be at least 3/32” thick; for heavy traffic areas it shall be a minimum 1/8” thick. A hard, water resistant, cleanable surface shall be required for all kitchen and bath areas. Carpet complying with U.S. Department of Housing and Urban Development/Federal Housing Administration UM44D, or alternatively, cork, bamboo, linoleum, or hardwood floors shall be provided in all other floor spaces unless this requirement is specifically waived by the Executive Director.

(10) Paint. Use of Low Volatile Organic Compound (VOC) paints and stains (Non-flat: 150 g/l or less, Flat: 50 g/l or less) for all interior surfaces where paints and stains are applied.

(11) Insulation. All fiberglass-based insulation shall meet the requirements as established by the California Tax Credit Allocation Committee, Title 4, Division 17, Chapter 1, Section 10325 (f)(7)(K).

(b) If a rehabilitation Applicant does not propose to meet the requirements of this section, its capital needs Assessment must show that the standards not proposed to be met are either unnecessary or excessively expensive.

(c) Compliance and Verification. Evidence of compliance is to be submitted to CDLAC as an attachment to the first Certification of Compliance (the form of which is attached to the project resolution and which is required to be submitted on March 1 of each year). For projects under construction or rehabilitation, the information is due following receipt of the verification, but in no event shall this documentation be submitted more than two years after the issuance of bonds.

(1) Under subdivision (a)(1), Projects that have been newly constructed or rehabilitated must submit the appropriate California Energy Commission evidence for the Project which shows the necessary percentage improvement better than the Title 24 standards.

(2) Under subdivision (a)(1), Applicants with rehabilitation projects must submit the California Energy Commission HERS II energy consumption and analysis report, which shows the pre- and post-rehabilitation HERS II estimated annual energy use demonstrating the required improvement, with their first annual certification of compliance.

(3) For subdivisions (a)(2) through (a)(11), Applicants shall submit third party documentation from one of the following sources confirming the existence of items, measures, and/or project characteristics:

A. A certified HERS Rater;

B. A certified GreenPoint Rater; or

C. A US Green Building Council Certification.

(4) Failure to produce appropriate and acceptable third party documentation for subdivisions (a)(1) through (a)(11) of this section may result in negative points.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 5 (section 5205) and section filed 12-9-2011 as an emergency; operative 12-9-2011 (Register 2011, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-6-2012 or emergency language will be repealed by operation of law on the following day.

2. New article 5 (section 5205) and section refiled 6-1-2012 as an emergency; operative 6-1-2012 (Register 2012, No. 22). A Certificate of Compliance must be transmitted to OAL by 8-30-2012 or emergency language will be repealed by operation of law on the following day.

3. New article 5 (section 5205) and section refiled 8-29-2012 as an emergency; operative 8-29-2012 (Register 2012, No. 35). A Certificate of Compliance must be transmitted to OAL by 11-27-2012 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 8-29-2012 order transmitted to OAL 11-26-2012 and filed 1-8-2013 (Register 2013, No. 2).

Article 6. Acquisition and Rehabilitation Projects

§5210. Minimum Expenditures.

Note • History

(a) Except as set forth in subdivision (b) of this section, Qualified Residential Rental Projects involving the rehabilitation of existing buildings must complete a minimum of $10,000 in hard construction costs per unit.

(b) A Federally Assisted At Risk Project that receives only an award of Bond authority and do not receive low income housing tax credit, must spend the minimum amount required by 26 U.S.C. section 147(d)(2).

(c) For purposes of this article, “hard construction costs” means the amount of the structure costs plus on-site and off-site costs.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 5 (sections 5210-5212) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 5 (sections 5210-5212) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 5 (sections 5210-5212) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of subsection (b), transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

5. Renumbering of former article 5 to article 6 filed 12-9-2011 as an emergency; operative 12-9-2011 (Register 2011, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-6-2012 or emergency language will be repealed by operation of law on the following day.

6. Renumbering of former article 5 to article 6 refiled 6-1-2012 as an emergency; operative 6-1-2012 (Register 2012, No. 22). A Certificate of Compliance must be transmitted to OAL by 8-30-2012 or emergency language will be repealed by operation of law on the following day.

7. Renumbering of former article 5 to article 6 refiled 8-29-2012 as an emergency; operative 8-29-2012 (Register 2012, No. 35). A Certificate of Compliance must be transmitted to OAL by 11-27-2012 or emergency language will be repealed by operation of law on the following day.

8. Certificate of Compliance as to 8-29-2012 order transmitted to OAL 11-26-2012 and filed 1-8-2013 (Register 2013, No. 2).

§5211. Tenant Relocation.

Note • History

Applicants proposing rehabilitation or demolition of occupied housing shall provide a detailed description of the relocation plan with the costs included in the Project's budget. Where existing low income tenants will receive a rent increase exceeding five percent (5%) of their current rent, Applicants shall provide a relocation plan addressing economic displacement. Where applicable, the Applicant shall provide evidence that the relocation plan is consistent with the Uniform Relocation Assistance and Real Property Acquisition Policy Act (42 U.S.C. chapter 61) and has been submitted to the appropriate local agency.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including repealer and new section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5212. Capital Needs Assessment.

Note • History

The Applicant shall submit a Capital Needs Assessment performed within 180 days prior to the Application deadline that details the condition and remaining useful life of the building's major structural components, all necessary work to be undertaken and its associated costs, as well as the nature of the work, and distinguishing between immediate and long term repairs. The Capital Needs Assessment shall also include a fifteen (15) year reserve study, indicating anticipated dates and costs of future replacements of all major building components that are not being replaced immediately and the reserve contributions needed to fund those replacements. The Capital Needs Assessment shall be prepared by the Project's architect, as long as the architect has no identity of interest with the Project Sponsor or other member of the development team; or by a qualified independent third party who has no identity of interest with any of the members of the development team. The Capital Needs Assessment is not required if the Project, within the immediately preceding three (3) years, received an Allocation and this requirement was satisfied in the original Application.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 7. Compliance Monitoring

§5220. Certification of Compliance.

Note • History

(a) All Projects that receive an Allocation shall be monitored for compliance with the terms and conditions of the Committee Resolution by the Applicant. The Applicant shall submit a Certification of Compliance in the document provided in the Committee Resolution to the Committee annually that the Project meets the terms and conditions of the Committee Resolution. The certification must be submitted by the Project Sponsor (on Project Sponsor letterhead) to the Applicant who will then forward it to the California Debit Limit Allocation Committee no later than March 1 of each year (or at such other time as requested by the Committee). The requirement shall be enforceable by the Committee through an action for specific performance or other available remedy.

(b) All Projects that receive Allocation and an award of low income housing tax credits shall be monitored by the Committee or an entity acting on its behalf for compliance with the terms and conditions of the Committee Resolution, and shall be subject to the provisions of section 10337 of Title 4 of the California Code of Regulations.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 6 (section 5220) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 6 (section 5220) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 6 (section 5220) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including repealer of subsection (c), transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

5. Renumbering of former article 6 to article 7 filed 12-9-2011 as an emergency; operative 12-9-2011 (Register 2011, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-6-2012 or emergency language will be repealed by operation of law on the following day.

6. Renumbering of former article 6 to article 7 refiled 6-1-2012 as an emergency; operative 6-1-2012 (Register 2012, No. 22). A Certificate of Compliance must be transmitted to OAL by 8-30-2012 or emergency language will be repealed by operation of law on the following day.

7. Renumbering of former article 6 to article 7 refiled 8-29-2012 as an emergency; operative 8-29-2012 (Register 2012, No. 35). A Certificate of Compliance must be transmitted to OAL by 11-27-2012 or emergency language will be repealed by operation of law on the following day.

8. Certificate of Compliance as to 8-29-2012 order transmitted to OAL 11-26-2012 and filed 1-8-2013 (Register 2013, No. 2).

§5221. Disqualification.

Note • History

The Committee may disqualify an Application for a portion of the Qualified Residential Rental Pool if any of the following have been documented about the Project Sponsor or any entity that is a Related Party of the Project Sponsor:

(a) Significant outstanding non-compliance in matters relating to the annual Certification of Compliance, tenant files or physical conditions at any tax-exempt Bond or low income housing tax credit financed property in California. Properties monitored by the Committee or an entity acting on its behalf and owned by the Project Sponsor or any entity that is a Related Party of the Project Sponsor or management company will not be considered until the Committee has received documentation that the outstanding non-compliance matters have been resolved;

(b) Multiple or repeated failures to use committed public subsidies, private activity Bond allocations within applicable deadlines, or to provide physical amenities or services;

(d) Information that leads the Committee to reasonably and in good faith conclude that an allocation will be inimical to, or incompatible with, the purposes of these regulations or the laws regulating the allocation of the State Ceiling on Qualified Private Activity Bonds.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New section filed 7-1-2011; operative 7-1-2011 (Register 2011, No. 26).

Article 8. Evaluation Criteria

§5230. Evaluation Criteria.

Note • History

(a) The following criteria will be used to evaluate and rank all Applications whether for Mixed Income Projects, Rural Projects or other Qualified Residential Rental Projects. Any points awarded in this section shall be rounded to the nearest one-tenth decimal place. Each of the items in this section shall be memorialized in the Committee Resolution.

(b) Federally Assisted At-Risk Projects and HOPE VI Projects (20 points maximum). Projects that are Federally Assisted At Risk Projects or HOPE VI Projects will receive ten (10) points. Projects that are Federally Assisted At Risk Projects or HOPE VI Projects and have income restricted tenant paid rents for each Restricted Rental Unit that is at least twenty percent (20%) below rents for the same unit types in comparable market rate rental properties will receive ten (10) additional points.

(c) Exceeding the Minimum Income Restrictions (35 points maximum for Qualified Residential Rental Projects other than Mixed Income Projects, 15 points maximum for Mixed Income Projects). Points will be awarded as set forth below for the percentage of units that are Restricted Rental Units. The Gross Rent definition will apply to the rents calculated in this subdivision.

(1) For each ten percent (10%) increment of units restricted at fifty percent (50%) of AMI or below, Qualified Residential Rental Projects other than Mixed Income Projects will receive seven (7) points, and Mixed Income Projects will receive three (3) points (fractional percentages above the minimum 10% increment will be calculated on a pro rata basis and the total points calculated will be rounded to the nearest whole number).

(2) For each ten percent (10%) increment of units restricted at greater than fifty percent (50%) of AMI, and up to sixty percent (60%) of AMI, Qualified Residential Rental Projects other than Mixed Income Projects will receive two (2) points, and Mixed Income Projects will receive one-half (1/2) point.

(d) Gross Rents (5 points)

(1) Five (5) points will be awarded to Projects which utilize Gross Rents to define Restricted Rental Units as evidenced by one of the following:

(A) A letter from the local public housing authority that includes a current utility allowance schedule, certifies that the proposed Project is located within its jurisdiction and itemizes which components of the utility allowance schedule applies to the Project. Projects that are subject to a Department of Housing and Urban Development (HUD) Section 8 Housing Assistance Payments Program do not require a housing authority certification and may rely solely on the utility allowance included in a HUD rent schedule provided the schedule specifically identifies the name of the Project.

(B) If a Project is to be substantially retrofitted for energy conservation or will be newly constructed with substantial energy conservation, the Applicant may submit revised utility allowances based on the projected reduction in utility costs after construction or retrofit. The revised utility allowances shall be validated by either of the following:

(i) A letter from the public utility or housing authority having jurisdiction over the Project that validates the revised utility allowances based on the proposed use of energy conservation materials, or

(ii) A current utility allowance estimate consistent with 26 CFR section 1.42-10. For buildings that are using an energy consumption model utility allowance estimate, the estimate shall be calculated using the most recent version of the California Utility Allowance Calculator (CUAC) developed by the California Energy Commission. The CUAC estimate shall be signed by a California Association of Building Energy Consultants (CABEC) Certified Energy Plans Examiner (CEPE) who is also either a California licensed Mechanical or Electrical Engineer, or a certified Home Energy Rating System (HERS) rater. Measures that are used in the CUAC that require field verification shall be verified by a certified HERS Rater, in accordance with current HERS regulations. The Applicant must indicate which components of the utility allowance schedule apply to the Project.

(e) Exceeding the Minimum Rent Restrictions (10 points maximum). One (1) point will be awarded for each percentage point the highest rental rate of each Restricted Rental Unit type (defined by bedroom count) is more than twenty percent (20%) below the average adjusted rental rates of comparable units as demonstrated by each applicable Rent Comparability Matrix. The average of all Restricted Rental Unit type percentage points beyond 20% will be used to determine the number of awarded points. All unit types must be more than twenty percent (20%) below the average adjusted rental rates of comparable units as demonstrated by each applicable Rental Comparability Matrix to qualify for points under this category. Where sizes (defined by square footage) vary among those units with the highest rent, the smallest or these units shall be the basis for this comparison. Applications receiving points under subdivision (b) of this section shall be ineligible to receive points under this subdivision.

(f) Exceeding the Minimum Term of Restrictions (10 points maximum). If the Committee establishes a Competitive Application Process, Applications that maintain the Qualified Project Period for longer than thirty (30) years will be awarded two (2) points for every five (5) years of affordability beyond thirty (30) years.

(g) Large Family Units (5 points).

(1) Five (5) points will be awarded to those Projects where at least thirty percent (30%) of the Restricted Rental Units are three-bedroom or larger units.

(h) Leveraging (10 points maximum).

(1) Applications that include Public Funds as a permanent funding source are eligible for points.

All Public Funds must be committed by a public entity at the time of Application. Evidence provided shall signify the form of the commitment, the amount of the loan, grant or subsidy, the length of the term of the commitment, conditions of participation, express authorization from the governing body or an official expressly authorized to act on behalf of said governing body, committing the funds, and the Project Sponsor's acceptance. Commitments shall be final and only subject to conditions within the control of the Project Sponsor. Funding commitments shall be from funds within the control of the entity making the commitment at the time of the Application. One (1) point will be awarded for every dollar of Public Funds committed as a percentage of total development costs (minus developer fees) rounded to the nearest whole number.

(2) Applications that include Taxable Debt as a permanent funding source, in addition to tax-exempt Bond financing, are eligible for points based on the degree that the Taxable Debt supplants the use of tax-exempt Bond financing. The requirement for using Taxable Debt will be included in the Committee Resolution. Taxable Debt may only be utilized for project related expenses, not for the cost of issuance, for which the Applicant could otherwise have used tax-exempt financing in order to receive points under this category. One-half (1/2) of a point will be awarded for every dollar of Taxable Debt committed as a percentage of total development costs (minus developer fees) rounded to the nearest whole number.

(i) Community Revitalization Area Criteria (15 points maximum).

(1) Applications with Projects located in a Community Revitalization Area (CRA) will qualify for points provided that the CRA meets one or more Distressed Community characteristics and includes documentation from the municipality or any agency responsible for affordable housing with jurisdiction over the Project that substantiates the following:

(A) Confirmation that a plan for revitalizing the subject area has been adopted, the date of adoption and name of the CRA.

(B) Identification of which Distressed Community characteristic(s) is applicable to the CRA. If the applicable characteristic is pursuant to California Health and Safety Code sections 33000 et seq., a description of the blighted conditions that exist in the subject area must be included.

(D) A scaled-for-distance map that is legible and clearly shows the boundaries of the CRA and the location of the proposed Project within the area boundaries.

(2) Points will be awarded if the documentation provided pursuant to subdivision (1) substantiates the following activities:

(A) Five (5) points will be awarded where specific and significant on-going programs in conjunction with community partnerships, evidenced by a legally enforceable agreement(s) between two or more wholly separate entities, have been established, are currently operating, and are providing community enhancement services in the neighborhood, including, but not limited to, job training or after-school enrichment programs.

(B) Five (5) points will be awarded where funds, not including the funds for the proposed Project, have been expended in the last three (3) years, are being expended or are committed to be expended to improve the community infrastructure, including, but not limited to, parks, storm water and sewer systems or street improvements of the overall area.

(C) Five (5) points will be awarded where other Projects, including, but not limited to, retail, office and housing that contribute to community revitalization have been completed in the last three (3) years, are underway or are committed to be completed.

(j) Site Amenities (10 points maximum)

(1) The Committee will award points to Applications with site amenities as described in this subdivision. Except as specifically set forth in this section, points will be awarded only for those amenities that exist at the time of Application. Applicants requesting points for site amenities that do not currently exist must include a letter from the controlling entity, signed by an authorized individual representing the entity, that states the funds for the amenity are committed, and the amenity is planned. The letter shall also state the anticipated date for the amenity to be placed in service which shall not be more than two (2) years after the date the Project is anticipated to be placed in service.

(2) Points will be awarded provided the site amenities are appropriate for the population served, and a scaled-for-distance map showing the location of the Project and the site amenities is provided in the Application, as follows:

(A) Two and one-half (2 1/2) points will be awarded to Projects located within one-quarter (1/4) mile of a Public Transit Corridor or, for Rural Projects where there is no public transportation system, to Projects using a van or dial-a-ride service.

(B) Two and one-half (2 1/2) points will be awarded to Projects located within one-half (1/2) mile of a park or recreational facility.

(C) Points will be awarded under 1 of the 2 following categories: i) Two and one-half (2 1/2) points will be awarded to Projects located within one-half (1/2) mile (1 mile for Rural Projects) of a full service grocery store of at least 25,000 gross interior square feet; or ii) Two and one-half (2 1/2) points will be awarded to Projects located within one-fourth (1/4) mile (one-half (1/2) mile for Rural Projects) of a full service grocery store of at least 5,000 gross interior square feet. Evidence shall include, but is not limited to, the following: a signed letter from a county assessor or city planner for that jurisdiction certifying the square footage of the grocery store, a letter from the store manager, or a letter from the Project's architect. The letter must state the square footage of the grocery market.

A full service grocery store shall mean for the purpose of this section a store or market that provides at minimum, food staples, fresh meats and/or poultry, dairy products, and produce, as well as other personal and household products and sundries.

(D) Two and one-half (2 1/2) points will be awarded to Projects located near a school. The site is within 1/4 mile of a public elementary school; 1/2 mile of a public middle school; or one (1) mile of a public high school that children living in the development may attend (an additional 1/2 mile for each public school type for Rural projects) and that the site is within the attendance area of that school. Projects with all units restricted to households having all members 55 years or older shall not be eligible for points in this category. Evidence shall include, but is not limited to, the following: a signed letter from the school district with the appropriate Project address stating said address is within the boundaries of the school, or documentation from an internet-based school locator tool.

(E) Two and one-half (2 1/2) points will be awarded to Projects located within 1/2 mile (for Rural set-aside projects, 1 mile) of a medical clinic with a physician, physician's assistant, or nurse practitioner onsite for a minimum of 40 hours each week, or hospital (not merely a private doctor's office). Only Projects where all units are restricted to households having members 55 years or older (with the exception of caregivers and others who are exempt by state law from the age restrictions) shall be eligible for points in this category.

(F) Two and one-half (2 1/2) points will be awarded to Projects located within one-half (1/2) mile of a public library.

(G) Two and one-half (2 1/2) points will be awarded to Projects which provide high speed internet or wireless “WiFi” service connection in each unit. High speed internet service, with a minimum average download speed of 768 kilobits/second must be made available to each unit for a minimum of 10 years, free of charge to the tenants, and available at the time of the project's placed-in-service date.

(k) Sustainable Building Methods (10 points maximum).

(1) Points will be awarded provided that the Project Sponsor and the licensed Project architect each submit a certification indicating which items, commencing with subdivision (k)(3) of this section, will be included in the Project's design and any relevant specifications.

(2) The Project Sponsor shall submit a certification at Project completion from the Project's licensed architect that the design elements that formed the basis for any award of points pursuant to subdivision (k) have been met or exceeded. A Project Sponsor may be subject to monitoring for compliance with this certification. A Project Sponsor receiving points under subdivision (k) who fails to meet this requirement will be subject to negative points under subdivision (n) of this section.

(3) New Construction and Adaptive Reuse Projects: Five (5) points will be awarded to projects that commit to developing the project in accordance with the California Tax Credit Allocation Committee's minimum requirements for energy efficient programs, Title 4, Division 17, Chapter 1, Section 10325 (c)(6)(A).

(4) For project's receiving points under subdivision (k)(3) of this section, additional points for energy efficiency (including heating, cooling, fan energy, and water heating but not the following end uses: lighting, plug load, appliances, or process energy) beyond the requirements in Title 24, Part 6, of the California Building Code under which the project is constructed, shall be awarded as follows:

Percentage better Low-Rise Multifamily High-Rise

than the current (3 or fewer habitable Multifamily (4 or

Standards stories) more habitable stories)

17.5 percent 2 points 3 points

20 percent 3 points 5 points

25 percent 5 points

(5) For project's receiving points under subdivision (k)(3) of this section, Applicants may be awarded points for committing to developing their project beyond the minimum requirements of the green building program chosen in subdivision (k)(3) of this section:

LEED Silver Gold

GreenPoint

Rated 100 125

3 points 5 points

(6) Rehabilitation Projects: The project will be rehabilitated to improve energy efficiency above the modeled energy consumption of the building(s) based on existing conditions. Points are awarded based on the building(s) percentage decrease in estimated annual energy use (or improvement in energy efficiency) in the building's Home Energy Rating System II (HERS II) rating post rehabilitation:

Improvement Over Current

15 percent 3 points

20 percent 5 points

25 percent 7 points

30 percent 10 points

(7) Additional Rehabilitation Project Measures.

(A) For project's receiving points under subdivision (k)(6) of this section, Applicants may be awarded three (3) points for committing to developing, and/or managing, their project with one or more of the following:

(i) Photovoltaic (PV) generation that offsets tenant loads; or

(ii) PV that offsets either 50 percent (50%) of common area load (if the combined available roof area of the project structures, including carports, is insufficient for provision of 50% of annual common area electricity use, then the project shall have onsite renewable generation based on at least 90 percent (90%) of the available solar accessible roof area); or

(iii) Solar hot water for all tenants who have individual water meters.

(B) For projects receiving points under subdivision (k)(6) of this section, Applicants may be awarded three (3) points for projects that implement sustainable building management practices including:

(i) Develop a project-specific maintenance manual including replacement specifications and operating information of all energy and green building features; and

(ii) Certify building management staff in sustainable building operations per Building Performance Institute Multifamily Building Operator or equivalent training program; and

(iii) Undertake formal building systems commissioning, retro-commissioning or re-commissioning as appropriate (continuous commissioning is not required).

(C) Applicants may be awarded three (3) points for individually metering or sub-metering currently master-metered gas, electricity, or central hot water systems for all tenants.

(8) Compliance and Verification. Evidence of Compliance is to be submitted to CDLAC as an attachment to the first Certification of Compliance (the form of which is attached to the project resolution and which is required to be submitted on March 1 of each year). For projects under construction or rehabilitation, the information is due following receipt of the verification, but in no event shall this documentation be submitted more than two years after the issuance of bonds. Compliance will be demonstrated as follows:

(A) For Applications that receive points under subdivisions (k)(3) and (k)(5) of this section, the Applicant must submit the appropriate required third party verification documentation showing the project has met the requirements for the relevant program.

(B) For Applications that receive points under subdivision (k)(4), the Applicant must submit the appropriate California Energy Commission compliance form for the project which shows the necessary percentage improvement better than the appropriate Standards. This compliance form must be the output from the building(s) modeled “as built” and reflect all relevant changes that impact the building(s) energy efficiency that were made after the Application was submitted. The compliance form must be signed by a California Association of Building Energy Consultants (CABEC) Certified Energy Plans Examiner (CEPE). Documentation for measures that require verification by California Home Energy Rating System (HERS) Raters must also be submitted.

(C) For Applications that receive points under subdivision (k)(6), the Applicant must submit the California Energy Commission HERS II energy consumption and analysis report, developed using the Home Energy Retrofit Coordinating Committee's multifamily protocols, which shows the pre- and post- rehabilitation HERS II estimated annual energy use demonstrating the required improvement and is signed by a qualified HERS Rater.

(D) For Applications that receive points under subdivision (k)(7) the Applicants must submit the following documentation:

(i) For projects including photovoltaic generation that offsets tenant loads, the Applicant must submit evidence as required by the California Tax Credit Allocation Committee, Title 4, Division 17, Chapter 1, Section 10325 (c)(6)(F)(5)(i).

(ii) For sustainable building management practices implemented by appropriately trained onsite staff, the Applicant must submit a copy of the energy management and maintenance manual, the building commissioning plan, and provide evidence onsite staff has been certified in green building operations and maintenance as required by the California Tax Credit Allocation Committee, Title 4, Division 17, Chapter 1, Section 10325 (c)(6)(F)(5)(ii). Owner certification of ongoing sustainable building management practices will be provided annually in accordance with section 5144 of the CDLAC Regulations.

(iii) For sub-metered central hot water systems, the Applicant must demonstrate compliance with the California Public Utilities Commission regulations for hot water sub-metering and billing by submitting a copy of the Utility Service Agreement from project's local utility provider.

(9) Failure to produce the appropriate documentation for subdivisions (1) through (8) of this subsection may result in an award of negative points for the Project Sponsor.

(l) Service Amenities (10 points maximum)

(1) Points will be awarded provided the Project Sponsor certifies the following:

(A) Service amenities must be appropriate to the tenant population served and committed to for a minimum of ten (10) years. Programs must be of a regular, ongoing nature and provided to tenants free of charge, except for day care services. Services must be designed to generate positive changes in the lives of tenants, such as increasing tenant knowledge of and access to available services, helping tenants maintain stability and prevent eviction, building life skills, increasing household income and assets, increasing health and well being, or improving the educational success of children and youth.

(B) Services must be provided on-site except that Projects may use off-site services within a one-half (1/2) mile of the Project provided that they have a written agreement with the service provider at the time of Application enabling the development's tenants to use the services free of charge (except for day care and any charges required by law) and that demonstrate that provision of on-site services would be duplicative. Referral services will not be eligible for points.

(C) Contracts with service providers, service provider experience, and evidence that physical space will be provided on- or off-site must be documented within the Application. Documentation must be provided for each category of services for which the Applicant is claiming service amenity points and must state the name and address of the organization or entity that will provide the services; describe the services to be provided; state annual value of the services; commit that services will be provided for a period of at least one (1) year; and name the project to which the services are being committed. Evidence shall take the form of a contract for services, Memorandum of Understanding (MOU), or commitment letter on agency letterhead. Services delivered by the on-site Property Manager or other property management staff will not be eligible for points under any category. All organizations providing services for which the project is claiming points must document that they have at least 24 months of experience providing services to the project's target population. Experience of individuals may not be substituted for organizational experience.

(D) The Application must propose a combined annual value of at least $10,000, or $5,000 for Projects of twenty (20) units or fewer, for those services. In addition, any donated services must be assigned a dollar value by the provider of those services. Applications must contain a detailed budget clearly displaying all anticipated income and expenses associated with the Projects services program.

(2) Points will be awarded in this subdivision as follows:

(A) Five (5) points to family Projects with after school programs of an ongoing nature. Programs shall include, but are not limited to: tutoring, mentoring, homework club, art and recreation activities. Programs shall be provided on weekdays throughout the school year for at least 10 hours per week.

(B) Five (5) points to Projects with instructor-led educational classes, health and wellness, or skill building classes, including but not limited to: financial literacy, computer training, home-buyer education, GED, resume building, ESL, nutrition, exercise, health information/awareness, art, parenting, on-site food cultivation and preparation, and smoking cessation. Instruction is to be provided a minimum of 84 hours per year (drop-in computer labs, monitoring or technical assistance shall not qualify).

(C) Five (5) points to Projects with licensed childcare providing 20 hours or more per week (Monday through Friday) to residents of the development.

(D) Five (5) points to Projects with wellness services and programs, such services and programs shall provide individualized support for tenants (not group classes) but need not be provided by licensed individuals or organizations. The services and programs shall include, but are not limited to: visiting nurses programs, intergenerational visiting programs, and senior companion programs.The services and programs shall be provided for a minimum of 100 hours per year.

(E) Five (5) points to Projects with a full time-equivalent bona fide service coordinator/social worker available, provided that the experience of the coordinator, the duties of the coordinator, and a budget to pay for the coordinator are included in the Application. The minimum number of hours per year for the full time-equivalent service coordinator/social worker will be calculated based on the formula: the number of bedrooms X 0.0017 = minimum number of hours per year (up to a maximum of 22,080 hours). The responsibilities must include, but are not limited to: (a) providing tenants with information about available services in the community, (b) assisting tenants to access services through referral and advocacy, and (c) organizing community-building and/or enrichment activities for tenants (such as holiday events, tenant council, etc.)

(m) New construction projects (10 points). Ten (10) points will be awarded to new construction or adaptive re-use Projects with restricted rental units.

(n) Negative Points (No maximum)

(1) The Committee will deduct points for an Application involving a Project Sponsor that has been or is a Related Party to a Project Sponsor (i.e. in the ownership structure) for which an Allocation has been awarded as follows:

(A) Ten (10) points will be deducted for each failure to fully utilize the committed public subsidies or Taxable Debt for which points were awarded in connection with the prior Allocation, unless it can be demonstrated that the failure was entirely outside of the Project Sponsor's control or the amount not utilized is not material. This deduction will be assessed against the Project Sponsor for a period of two (2) calendar years (10 points each year) from the date on which the prior Allocation was awarded.

(B) Ten (10) points will be deducted for each failure to issue Bonds that results in the full amount of the Allocation reverting back to the Committee, unless it can be demonstrated that the failure was entirely outside of the Project Sponsor's control. This deduction will be assessed against the Project Sponsor for a period of two (2) calendar years (10 points each year) from the date on which Allocation was awarded.

(C) Ten (10) points will be deducted for each failure to spend the proceeds of Bonds issued pursuant to an Allocation in full, or in accordance with the terms and conditions of the Committee Resolution, unless it can be demonstrated that the failure was entirely outside of the Project Sponsor's control, the amount not spent is not material, or the deviation from the terms and conditions of the Committee Resolution is not material. This deduction will be assessed against the Project Sponsor for a period of three (3) calendar years (10 points each year) from the date of determination of failure to spend proceeds.

(D) Ten (10) points will be deducted for failure to comply with any provision of the Committee Resolution, unless it can be demonstrated that the failure was entirely outside of the Project Sponsor's control. This deduction will be assessed for a period of three (3) calendar years (10 points each year) from the date of determination of non-compliance with the Committee Resolution.

(2) Multiple or repeated failures of subdivision (n)(1) of this section may result in the Committee finding Applications involving the Project Sponsor ineligible for consideration of an Allocation.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 7 (sections 5230-5232) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 7 (sections 5230-5232) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 7 (sections 5230-5232) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

5. Renumbering of former article 7 to article 8, new subsection (j)(1)(G), amendment of subsections (k)-(k)(3), repealer of subsections (k)(3)-(k)(5)(O), new subsections (k)(3)-(k)(9) and amendment of subsections within subsection (l) filed 12-9-2011 as an emergency; operative 12-9-2011 (Register 2011, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-6-2012 or emergency language will be repealed by operation of law on the following day.

6. Amendment of subsections (i)(1), (j)(2)(C)-(E), (j)(2)(G), (k)(1)-(2) and (l)(1)(D) filed 4-4-2012 as an emergency; operative 4-4-2012 (Register 2012, No. 14). A Certificate of Compliance must be transmitted to OAL by 10-1-2012 or emergency language will be repealed by operation of law on the following day.

7. Renumbering of former article 7 to article 8, new subsection (j)(1)(G), amendment of subsections (k)-(k)(3), repealer of subsections (k)(3)-(k)(5)(O), new subsections (k)(3)-(k)(9) and amendment of subsections within subsection (l) refiled with further amendment of subsection (l)(1)(C) 6-1-2012 as an emergency; operative 6-1-2012 (Register 2012, No. 22). A Certificate of Compliance must be transmitted to OAL by 8-30-2012 or emergency language will be repealed by operation of law on the following day.

8. Amendment of subsections (d)(1)(B)(ii), (e), (j)(2)(C)-(D), (l)(1)(B) and (l)(2)(E) filed 8-1-2012 as an emergency; operative 8-1-2012 (Register 2012, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-28-2013 or emergency language will be repealed by operation of law on the following day.

9. Renumbering of former article 7 to article 8, new subsection (j)(1)(G), amendment of subsections (k)-(k)(3), repealer of subsections (k)(3)-(k)(5)(O), new subsections (k)(3)-(k)(9) and amendment of subsections within subsection (l) refiled 8-29-2012 as an emergency; operative 8-29-2012 (Register 2012, No. 35). A Certificate of Compliance must be transmitted to OAL by 11-27-2012 or emergency language will be repealed by operation of law on the following day.

10. Certificate of Compliance as to 4-4-2012 order transmitted to OAL 9-6-2012 and filed 9-27-2012 (Register 2012, No. 39).

11. Certificate of Compliance as to 8-29-2012 order transmitted to OAL 11-26-2012 and filed 1-8-2013 (Register 2013, No. 2).

12. Amendment of subsections (d)(1)(B)(ii), (e), (j)(2)(C)-(D), (l)(1)(B) and (l)(2)(E) refiled 1-24-2013 as an emergency; operative 1-24-2013 (Register 2013, No. 4). A Certificate of Compliance must be transmitted to OAL by 4-24-2013 or emergency language will be repealed by operation of law on the following day.

§5231. Ranking.

Note • History

After all of Applications for Qualified Residential Rental Projects are evaluated pursuant to section 5230, the Applications will be ranked and may be awarded an Allocation as follows:

(a) Applications for Mixed Income Projects will be ranked amongst themselves, and separately from Applications for all other Qualified Residential Rental Projects. Applications for Mixed Income Projects awarded the greatest number of points shall be awarded an Allocation from the Mixed Income Pool. Applications for Mixed Income Projects not receiving an Allocation will not be eligible for consideration for an Allocation under subdivisions (b) or (c) of this section.

(b) Applications for Rural Projects will be ranked amongst themselves, and separately from Applications for all other Qualified Residential Rental Projects. Applications for Rural Projects awarded the greatest number of points shall be awarded an Allocation from the Rural Project Pool. Applications for Rural Projects not receiving an Allocation pursuant to this subdivision are eligible for consideration for an Allocation under subdivision (c) of this section.

(c) Applications for Qualified Residential Rental Projects that are not Mixed Income Projects, and any Applications for Rural Projects not receiving an Allocation under subdivision (b) of this section will then be ranked together. Applications receiving the greatest number of points shall be awarded an Allocation from the Qualified Residential Rental Project Pool.

(d) If two or more Applications are awarded the same total number of points, these Applications will be ranked according to the lowest amount of requested Allocation per Restricted Rental Unit (Allocation amount requested divided by number of Restricted Rental Units).

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5232. Maximum Allocation Amount.

Note • History

(a) The Committee will allocate no more than $30,000,000 for any proposed Qualified Residential Rental Project. Where a proposed Qualified Residential Rental Project is located within one-fourth (1/4) mile of another Qualified Residential Rental Project involving the same Project Sponsor or a Related Party to the Project Sponsor, the Allocation amounts for the Qualified Residential Rental Projects cannot, in the aggregate, exceed $30,000,000 within a calendar year.

(b) The Committee may waive this maximum allocation amount if the Committee determines that the demand for allocation for Qualified Residential Rental Projects is such that the maximum allocation amount is not warranted. An Applicant requesting an Allocation in excess of $30,000,000 may seek a waiver from the Committee based on the following factors:

(1) The Qualified Residential Rental Project qualifies as a Federally Assisted At-Risk Project; or

(2) Documentation is provided in the Application indicating why a Qualified Residential Rental Project cannot be developed in phases at a $30,000,000 level. The documentation must be specific and may include, but is not limited to, a site plan detailing the layout of the subject property, unit mix per stage of the phase, any unique features of the property which inhibits phasing, a description of infrastructure costs, and a cost breakdown by phases.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of subsections (a) and (b), transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 9. Supplemental Allocation

§5240. Supplemental Allocation Process.

Note • History

(a) Requests for Supplemental Allocations may be submitted during any Allocation Round. Staff shall review each request for Supplemental Allocation and make a recommendation to the Committee regarding any possible award of additional Allocation. Awards of Supplemental Allocations shall be memorialized in a Committee Resolution. Notwithstanding section 5241, all requirements imposed on the initial Allocation, including, but not limited to, expiration of Allocation, Bond issuance deadlines, extensions, transfers of Allocation, carry-forward elections and reporting will be equally applicable to Supplemental Allocations.

(b) Requests for Supplemental Allocation submitted during Allocation Rounds conducted under an Open Application Process may be made with a Supplemental Allocation Request Letter if the Project has received Allocation within the past thirty six (36) months. Supplemental Allocation Request Letters must be accompanied with the following requirements:

(1) Posting of a performance deposit pursuant to section 5050.

(2) Payment of a filing fee pursuant to section 5054.

(3) Evidence of the Bond sale structure pursuant to article 6 of chapter 1.

(4) An inducement resolution pursuant to section 5033(b)(4).

(5) A TEFRA Resolution pursuant to section 5033(b)(5).

(c) Supplemental Allocation requests for Projects that have received Allocation more than thirty six (36) months prior or are submitted during a Competitive Application Process must comply with the process for filing a new complete Application pursuant to article 4 of chapter 1 and the appropriate provisions of this chapter.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 8 (section 5240) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 8 (section 5240) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 8 (section 5240) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section heading and repealer and new section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

5. Renumbering of former article 8 to article 9 filed 12-9-2011 as an emergency; operative 12-9-2011 (Register 2011, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-6-2012 or emergency language will be repealed by operation of law on the following day.

6. Renumbering of former article 8 to article 9 refiled 6-1-2012 as an emergency; operative 6-1-2012 (Register 2012, No. 22). A Certificate of Compliance must be transmitted to OAL by 8-30-2012 or emergency language will be repealed by operation of law on the following day.

7. Renumbering of former article 8 to article 9 refiled 8-29-2012 as an emergency; operative 8-29-2012 (Register 2012, No. 35). A Certificate of Compliance must be transmitted to OAL by 11-27-2012 or emergency language will be repealed by operation of law on the following day.

8. Certificate of Compliance as to 8-29-2012 order transmitted to OAL 11-26-2012 and filed 1-8-2013 (Register 2013, No. 2).

§5241. Realignment of Expiration Dates.

Note • History

Projects awarded a Supplemental Allocation during an Open Application Process for which no Bonds were issued from the original award of Allocation shall have the expiration date of the original award extended to match the expiration of the Supplemental Allocation award.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New section filed 7-1-2011; operative 7-1-2011 (Register 2011, No. 26).

Article 10. Scattered Site Applications

§5250. Application Requirements.

Note • History

(a) Applications for Scattered Site Projects shall provide all information required for each site. Additional stipulations are as follows:

(1) Data in Table 1 and Table 2, as defined in section 5170, shall be provided for each site and as a combined total. Each site must independently meet the Committee's income and rent restriction requirements as required in section 5191.

(2) A Capital Needs Assessment report may combine information for all Project sites in one report.

(3) For a Scattered Site Project-Competitive Round, a Market Study may combine information for all Project sites in one report; however the Market Study shall have separate Rent Comparability Matrices for each site. For a Scattered Site Project Non-Competitive Round, a market study and set of rent comparability matrices are not required if the proposed rents do not exceed one hundred and ten percent (110%) of the current rent levels, or if the property has been receiving and will continue to receive HUD project-based rental assistance or a HUD operating subsidy for a minimum of the last five (5) years.

(4) Evidence of site control shall be required for each site.

(5) Any maps provided shall include each site.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 9 (section 5250) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 9 (section 5250) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 9 (section 5250) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section heading and repealer and new section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

5. Renumbering of former article 9 to article 10 filed 12-9-2011 as an emergency; operative 12-9-2011 (Register 2011, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-6-2012 or emergency language will be repealed by operation of law on the following day.

6. Renumbering of former article 9 to article 10 refiled 6-1-2012 as an emergency; operative 6-1-2012 (Register 2012, No. 22). A Certificate of Compliance must be transmitted to OAL by 8-30-2012 or emergency language will be repealed by operation of law on the following day.

7. Amendment of subsection (a)(2), new subsection (a)(3) and subsection renumbering filed 8-1-2012 as an emergency; operative 8-1-2012 (Register 2012, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-28-2013 or emergency language will be repealed by operation of law on the following day.

8. Renumbering of former article 9 to article 10 refiled 8-29-2012 as an emergency; operative 8-29-2012 (Register 2012, No. 35). A Certificate of Compliance must be transmitted to OAL by 11-27-2012 or emergency language will be repealed by operation of law on the following day.

9. Certificate of Compliance as to 8-29-2012 order transmitted to OAL 11-26-2012 and filed 1-8-2013 (Register 2013, No. 2).

10. Amendment of subsection (a)(2), new subsection (a)(3) and subsection renumbering refiled 1-24-2013 as an emergency; operative 1-24-2013 (Register 2013, No. 4). A Certificate of Compliance must be transmitted to OAL by 4-24-2013 or emergency language will be repealed by operation of law on the following day.

§5251. Evaluation Criteria.

Note • History

Each site within an Application for a Scattered Site shall be evaluated individually for points as provided in section 5230. The total points awarded to a Project in any category shall be based on the pro-rata share of total units each site represents. For instance, if only one site meets the threshold for an award of 5 points as provided in 5230(g), and the site represents 40% of total units, the Project shall be awarded two (2) points for this category (40% x 5 points).

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New section filed 7-1-2011; operative 7-1-2011 (Register 2011, No. 26).

Article 11. Forward Commitment Applications for Federal Housing Administration (FHA) Financed Projects in Non-Competitive Application Years

§5255. Application Requirements.

Note • History

A CDLAC Forward Commitment letter may be granted in lieu of an award of allocation until the Applicant receives the HUD Firm Commitment letter for the Project. A complete Non-Competitive Qualified Residential Rental Pool Application may be submitted when the Project meets the following requirements:

(a) Applications must meet the requirements of a Qualified Residential Rental Project, as described in Chapter 2.

(b) Applications may be submitted at any time with an expected staff review period of at least thirty (30) days.

(d) In lieu of a HUD Firm Commitment letter, a MAP Lender commitment letter outlining the FHA financing must accompany the Application.

(e) All awards of allocation following a CDLAC Forward Commitment must occur prior to the last day of the calendar year.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 11 (sections 5255-5256) and section filed 8-1-2012 as an emergency; operative 8-1-2012 (Register 2012, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-28-2013 or emergency language will be repealed by operation of law on the following day.

2. New article 11 (sections 5255-5256) and section refiled 1-24-2013 as an emergency; operative 1-24-2013 (Register 2013, No. 4). A Certificate of Compliance must be transmitted to OAL by 4-24-2013 or emergency language will be repealed by operation of law on the following day.

§5256. Evaluation Criteria.

Note • History

(a) Applications will be reviewed according to the Multi-Family Housing criteria, as referenced in Chapter 2, Article 8, Section 5230.

(b) Applications meeting the requirements of Chapter 2, Article 8, Section 5230 will be provided a Forward Commitment in lieu of an award of allocation.

(c) Upon receipt of a HUD Firm Commitment letter, CDLAC will present an allocation recommendation to the Committee for formal approval. The CDLAC closing timeframe will commence once the Committee grants the allocation.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New section filed 8-1-2012 as an emergency; operative 8-1-2012 (Register 2012, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-28-2013 or emergency language will be repealed by operation of law on the following day.

2. New section refiled 1-24-2013 as an emergency; operative 1-24-2013 (Register 2013, No. 4). A Certificate of Compliance must be transmitted to OAL by 4-24-2013 or emergency language will be repealed by operation of law on the following day.

Chapter 3. Single Family Housing

Article 1. Definitions

§5260. Definitions.

Note • History

In addition to the definitions set forth in Government Code section 8869.82 and unless otherwise required by the context, the following terms as used in this chapter are defined as follows:

“Applicable Median Family Income” means the applicable median family income defined by 26 U.S.C. section 143(f)(4), except that the definition of income contained in subdivision B of 26 U.S.C. section 143(f)(4) shall not apply to Applicants for a Single Family Housing Program.

“Fair Share Allocation Amount” means the amount of Allocation each Local Issuer shall receive pursuant to the Fair Share Basis definition.

“Fair Share Basis” means that each county shall receive a proportionate share of the amount reserved for Local Issuers based on the population of the county relative to the State's total population. Populations will be based on data published by the California State Department of Finance Demographics Unit. Where there is more than one Local Issuer in a county, each Local Issuer shall receive a proportionate share of the county's reservation based on the population of the jurisdictions served by an Issuer relative to the county's total population, or as agreed upon by the participating Local Issuers.

“Homeownership Assistance” means financial assistance, including down-payment assistance, closing cost assistance, soft-second financing for the purchase of a home, or such alternative homeownership assistance as proposed by the Applicant in the Application and approved by the Committee. The Homeownership Assistance must; one, be in a minimum amount of $7,500 or 3% of the purchase price of the home, whichever is greater; two, be structured in the form of either a grant or a deferred payment loan where the payment of principal and interest is deferred until such time as the home is sold or re-financed; and three, include an incentive, to be proposed by the Applicant, for Program Participants to fully perform the three (3) year service commitment. Applicants will not be required to establish a distinct and separate homeownership program; existing programs may be used. The Committee may delegate to the Chair or to the Executive Director of the Committee the authority to accept and consider homeownership assistance of different types or characteristics than those specifically enumerated or required by this definition. The Committee may establish, or concur with the establishment of, higher assistance limits to ensure program participation in high cost areas.

“MCC Application” means the Application titled “Application for an Allocation of the State Ceiling on Qualified Private Activity Bonds for a Mortgage Credit Certificate Program” (revised 1-11-11), which is hereby incorporated by reference.

“MRB Application” means the Application titled “Application for an Allocation of the State Ceiling on Qualified Private Activity Bonds for a Single-Family Housing Bond Program” (revised 1-11-11), which is hereby incorporated by reference.

“Performance Achievement Index” means the percentage of households that participated in a Single Family Housing Program having met the goals set forth in section 5266 expressed as a percentage of the minimum goal committed to by the Applicant. For example, if the number of households earning eighty percent (80%) or less of the Applicable Median family Income of the area consisted of only 38% of the participants in a program, then based on a committed goal of 40%, the Performance Achievement Index would equal 95% (38% divided by 40%).

“Qualified Census Tract” means any census tract that is designated by the Secretary of Housing and Urban Development pursuant to 26 U.S.C. section 42(d)(5)(C).

“VHLP Application” means the Application titled “Application for an Allocation of the State Ceiling on Qualified Private Activity Bonds for a Veteran's Home Loan Program” (revised 1-11-11), which is hereby incorporated by reference.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

1. New chapter 3 (articles 1-4, sections 5260-5291), article 1 (section 5260) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New chapter 3 (articles 1-4, sections 5260-5291), article 1 (section 5260) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New chapter 3 (articles 1-4, sections 5260-5291), article 1 (section 5260) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section heading and repealer and new section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 2. Eligibility Requirements

§5265. Application Process.

Note • History

Applications for an Allocation of the Single Family Housing Program Pool shall be considered in accordance with the provisions of chapter 1 and the submission of an MRB Application, a VHLP Application or an MCC Application.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 2 (sections 5265-5270) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 2 (sections 5265-5270) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 2 (sections 5265-5270) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5266. Participation Goals.

Note • History

An Applicant requesting an Allocation for a Single Family Housing Program must commit to the following goals:

(a) A minimum of forty percent (40%) of the participants in the Single Family Housing Program must be households:

(1) Earning eighty percent (80%) or less of the Applicable Median Family Income of the area in which the program is located; or

(2) Located in a Qualified Census Tract. Applicants may use the high-cost area adjustment set forth in 26 U.S.C. section 143(f)(5) to meet this minimum requirement.

(b) An Applicant that is unable to meet the requirement outlined in subdivision (a) of this section, may request an exemption. However, in no case may less than thirty-five percent (35%) of the participants in the Single Family Housing Program be households:

(1) Earning eighty percent (80%) or less of the Applicable Median Family Income of the area in which the program is located; or

(2) Located in a Qualified Census Tract. Applicants may use the high-cost area adjustment set forth in 26 U.S.C. section 143(f)(5) to meet this minimum requirement.

(c) To be considered for an exemption an Applicant must submit documentation of the programmatic or economic reasons why the requirement outlined in subdivision (a) of this section cannot be met.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5267. Consistency with Adopted Housing Elements.

Note • History

(a) The proposed Single Family Housing Program must be consistent with the adopted housing element(s) for the jurisdiction(s) in which the program is to be operated.

(b) Applicants requesting Allocation to implement a new Mortgage Credit Certificate Program shall submit the following:

(1) Copies of the publicly-adopted documents required by section 5031(b); and

(2) Copies of the program or operational manual.

(1) A certification that the previously publicly-adopted documents required in section 5031(b) are valid and remain in force; or

(2) Provide copies of newly publicly-adopted documents.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5268. Mortgage Revenue Bond Eligibility.

Note • History

(a) For Mortgage Revenue Bond Programs, in order to be eligible for a new Single Family Housing Program Allocation, the Applicant shall:

(1) Demonstrate that all proceeds from a bond issuance in the calendar year three (3) years prior to the current year (other than minor amounts not to exceed $1 million) have been used to finance loans, or; have been refunded on either a short or long term basis so as to be available to finance loans.

(2) Certify that any remaining Bond proceeds or authority from an Allocation up to two (2) calendar years prior to the current year will be used either before the use of new Allocation or in conjunction with new Allocation in satisfying federal requirements for such prior funds.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of subsection (a)(2), transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5269. Mortgage Credit Certificate Eligibility.

Note • History

(a) For Mortgage Credit Certificate programs, in order to be eligible for a new Single Family Housing Program Allocation, the Applicant must:

(1) Demonstrate that all remaining bond authority in the calendar year two (2) years prior to the current year (other than minor amounts not to exceed $1 million) have been issued to first time home buyers.

(2) Certify that any Mortgage Credit Certificate authority remaining from the year prior to the current year will be used before the use of new Mortgage Credit Certificate authority.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5270. Exceptions to Minimum Requirements.

Note • History

The Committee may consider exceptions to the minimum requirements based upon detailed information submitted by the Applicant that meeting these requirements presents an undue financial burden or economic hardship for the Applicant. The Committee may delegate the discretion to approve or deny an Applicant's request for such exception to the Chair of the Committee or to the Executive Director. With respect to sections 5268 and 5269, to be granted an exception an Applicant must demonstrate its need to use new Allocation even if unused Mortgage Revenue Bond Allocation or Mortgage Credit Certificate authority totals over $1,000,000 from prior years.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 3. Evaluation Criteria

§5275. Minimum Goals.

Note • History

(a) An Applicant receiving an Allocation for a Single Family Housing Program will be held accountable for achieving the minimum goals that were considered by the Committee in awarding the Allocation. The Committee will monitor on an annual basis the programs awarded an Allocation. An Applicant whose Single Family Housing Program did not achieve the participation goals set forth in section 5266 in the previous calendar year, will have their Fair Share Allocation Amount reduced subject to following schedule:

Performance Achievement Index Percentage of Fair Share Allocation Amount

91% -- 100% 100%

81% -- 90% 90%

71% -- 80% 80%

61% -- 70% 70%

0% -- 60% 60%

(b) The Committee may consider exceptions to the above schedule of reduced Allocation where the Applicant provides full written documentation of the reasons for the underachievement demonstrating that the circumstances surrounding the underachievement are beyond the control of the Applicant. The Committee may delegate the discretion to approve or deny an Applicant's request for such exception to the Chair or to the Executive Director.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 3 (section 5275) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 3 (section 5275) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 3 (section 5275) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of subsection (a), transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 4. Single Family Housing Bonus Pool

§5280. Eligibility Requirements.

Note • History

If the Committee has established a Single Family Housing Program Bonus Pool in accordance with section 5020(c), Applicants may be eligible if the following is demonstrated:

(a) For Mortgage Revenue Bond Programs:

(1) Demonstrate that Bonds allocated from the current year's Single Family Housing Pool have been issued.

(2) Certify that proceeds from the current year's allocation are being used to finance loans.

(3) Justify the need for additional Allocation.

(b) For Mortgage Credit Certificate Programs:

(1) Demonstrate that Bonds allocated from the current year's Single Family Housing Pool have been converted into Mortgage Credit Certificate authority.

(2) Certify that Mortgage Credit Certificates are being issued.

(3) Justify the need for additional Allocation.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(b), Government Code.

HISTORY

1. New article 4 (sections 5280-5283) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 4 (sections 5280-5283) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 4 (sections 5280-5283) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5281. Evaluation Criteria.

Note • History

(a) The following criteria will be used to evaluate and rank all Applications considered for the Single Family Housing Program Bonus Pool. All Applicants for Bonus Pool Allocation are required to meet a minimum score of fifteen (15) points.

(b) Five (5) points will be awarded where a minimum of twenty-five percent (25%) of program participants are households earning sixty percent (60%) or less of the Applicable Median Family Income of the area in which the program is located.

(c) Five (5) points will be awarded where the program has exceeded its prior year's program performance (based on the most recent yearly data that is available) by ten percent (10%) in assisting households earning sixty percent (60%) or less of the Applicable Median Family Income of the area in which the program is located.

(d) Five (5) points will be awarded where the program will address a demonstrable imbalance between jobs and housing in the community or neighborhood based on sufficient evidence provided to the Committee.

(e) Five (5) points will be awarded where at least twenty-five percent (25%) of the program activity will occur in a Community Revitalization Area.

(f) Five (5) points will be awarded where at least twenty-five percent (25%) of the program activity will occur in rural locations to assist units that will be developed under a low-income self-help ownership program or be restricted for sale to low income households engaged in agricultural employment as described in section 7202 of the Health and Safety Code.

(g) Five (5) points will be awarded where the program is augmented with a down payment assistance program provided by the Applicant or by the other participating jurisdictions.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of subsection (a), transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5282. Allocation Method.

Note • History

Applicants for the Single Family Housing Bonus Pool will be awarded an Allocation of the Single Family Housing Program Bonus Pool on a Fair Share Basis.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5283. Excess Bonus Pool Distribution.

Note • History

(a) If the Committee has established that any portion of the Single Family Housing Program Pool and Single Family Housing Bonus Pool is remaining by the final meeting of the year, this amount will be made available to Local Issuers under the Single Family Housing Bonus Pool regardless of their initial Fair Share Basis limit or amount of Allocation awarded in the current year.

(b) Subsequent to the determination made in subdivision (a) of this section, awards in this round will be based on the pro-rata population of the jurisdictions served by the Applicant relative to the total population served by the winning Applicants, but shall not exceed the amount requested in the Application.

(c) If the total amount requested by all Applicants as determined in subdivision (b) of this section is less than the amount available as determined in subdivision (a) of this section, and there are Applicants whose pro-rata portion is less than their request, the Committee will consider distributing the excess up to the full amount requested.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section heading and section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 5. Veterans Home Loan Program

§5290. Veterans Home Loan Program (VHLP).

Note • History

The Veterans Home Loan Program will utilize Mortgage Revenue Bonds to assist eligible California veterans with advantageous first mortgages that are at a minimum commensurate with similar state administered Single Family Housing Programs with respect to interest rates and Homeownership Assistance. Allocations will be made on the condition that the entire Allocation will be used to provide below market interest rate mortgages to California veterans.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(a), Government Code.

HISTORY

1. New article 5 (sections 5290-5291) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 5 (sections 5290-5291) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 5 (sections 5290-5291) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5291. VHLP Reporting Requirements.

Note • History

An Applicant receiving an Allocation for a Veterans Home Loan Program shall be responsible for submitting an annual report of program activity to the Committee. The format for the annual report is outlined in Attachment M of the VHLP Application.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(a), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Chapter 4. Extra Credit Teacher Home Purchase Program

Article 1. Definitions

§5300. Definitions.

Note • History

In addition to the definitions set forth in Government Code sections 8869.82 and 8869.84(g); and unless otherwise required by the context, the following terms as used in this chapter are defined as follows:

“Academic Performance Index” or “API” means the index created by the Public Schools Accountability Act of 1999 to measure the performance of schools, especially the academic performance of pupils, and to demonstrate comparable improvement in academic achievement by all numerically significant ethnic and socio-economically disadvantaged subgroups within schools (Education Code 52052).

“Eligible Administrator” means any person who holds one of the following credentials issued by the California Commission on Teacher Credentialing:

• Administrative Services Credential Administrative Services Credential (Examination)

• Standard Supervision Credential Standard Administration Credential

• General Elementary School Administration Credential General Elementary School Supervision Credential

• General Secondary School Administration Credential General Secondary School Supervision Credential

• General Administration Credential General Supervision Credential

• The Supervision Credential General School Principal or Supervisor Credential

“Eligible Classified Employee” means an employee of a school district employed in a position not requiring certification qualifications and who provides administration or service at a High Priority School.

“Eligible Staff Member” means any person who holds one of the following credentials issued by the California Commission on Teaching Credentialing:

• School Nurse Credential

• Clinical or Rehabilitation Service Credential

• Pupil Personnel Services Credential (e.g. School Counseling, School Social Work, School Psychology and Child Welfare and Attendance)

• Library Media Teacher Service Credential

• Designated Subjects Vocational Education Teaching Credential

“Eligible Teacher” means any person who holds one of the following credentials issued by the California Commission on Teacher Credentialing:

• Single Subject Teaching Credential

• Multiple Subject Teaching Credential

• Specialist Instruction Credential in Special Education

• Education Specialist Instruction Credential

• Standard Elementary Teaching Credential

• Standard Secondary Teaching Credential

• Standard Early Childhood Education Teaching Credential

• Standard Restricted Special Education Teaching Credential

• General Kindergarten-Primary Teaching Credential

• General Junior High Teaching Credential

• General Elementary Teaching Credential

• Special Secondary Teaching Credential in Art

• General Secondary Teaching Credential

• Special Secondary Teaching Credential in Business Ed

• Special Credential for Teaching Exceptional Children

• Special Secondary Teaching Credential in Homemaking

• Special Secondary Credential for Teaching Lip Reading

• Special Secondary Credential for Teaching the Blind

• Special Secondary Limited Teaching Credential in Music

• Special Secondary Credential for Teaching the Partially Sighted Child

• Special Secondary Credential for Teaching Industrial Arts

• Special Secondary Teaching Credential in Speech Arts

• Special Secondary Teaching Credential in Music

• Special Secondary Credential for Teaching the Mentally Retarded

• Special Secondary Credential for Teaching Credential Limited in Agriculture

• Special Secondary Teaching Credential in Correction of Speech Defects

• Special Secondary Teaching Credential in Physical Ed.

“ETCHP Application” means the Application titled “Application for an Allocation of the State Ceiling on Qualified Private Activity Bonds for an Extra Teacher Credit Home Purchase Program” (revised 1-11-11), which is hereby incorporated by reference.

“Extra Credit Teacher Home Purchase Program Eligibility Certificate” means the certification to be completed and submitted by the employing school district, County Office of Education or local Board of Education that certifies to all of the following: The Program Participant is an Eligible Teacher, Eligible Administrator, Eligible Classified Employee, or Eligible Staff Member; the Program Participant is not currently under suspension, and there is not currently pending any disciplinary inquiry, investigation, action or proceeding that could result in the suspension or dismissal of the Program Participant; the entity completing the certificate has verified with the California Commission on Teacher Credentialing that the credential of the Program Participant is not currently under suspension, and there is not currently pending any disciplinary inquiry, investigation, action or proceeding that could result in the suspension or revocation of the credential of the Program Participant; and the personnel file of the Program Participant reflects that he or she has not been dismissed from employment with any school or school district for any reason, and that he or she has not been the subject of a disciplinary suspension that has been upheld.

“High Priority School” means a California K-12 public school ranked in the bottom 50% of all schools based on the most recent Academic Performance Index, i.e. schools receiving an API Statewide Ranking of 1, 2, 3, 4 or 5.

“Homeownership Assistance” means financial assistance, including down-payment assistance, closing cost assistance, soft-second financing for the purchase of a home, or such alternative homeownership assistance as proposed by the Applicant in the Application and approved by the Committee. The Homeownership Assistance must: Be in a minimum amount of $7,500 or 3% of the purchase price of the home, whichever is greater; be structured in the form of either a grant or a deferred payment loan where the payment of principal and interest is deferred until such time as the home is sold or re-financed; and include an incentive, to be proposed by the Applicant, for Program Participants to fully perform the three (3) year service commitment. Applicants will not be required to establish a distinct and separate homeownership program; existing programs may be used. The Committee may delegate to the Chair or to the Executive Director of the Committee the authority to accept and consider homeownership assistance of different types or characteristics than those specifically enumerated or required by this definition. The Committee may establish, or concur with the establishment of, higher assistance limits to ensure program participation in high cost areas.

“National Board Certification” means certification from the National Board for Professional Teaching Standards based upon successful completion of a voluntary assessment program covering a variety of subject areas and student developmental levels.

“Program Participant” means an Eligible Teacher, Eligible Administrator, Eligible Classified Employee, or Eligible Staff Member who receives a Mortgage Credit Certificate or a loan funded by Mortgage Revenue Bonds from an Issuer receiving an Allocation from the Extra Credit Teacher Home Purchase Program Pool.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.84(g), Government Code.

HISTORY

1. New chapter 4 (articles 1-5, sections 5300-5340), article 1 (section 5300) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New chapter 4 (articles 1-5, sections 5300-5340), article 1 (section 5300) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New chapter 4 (articles 1-5, sections 5300-5340), article 1 (section 5300) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section and Note, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 2. Eligibility Requirements

§5310. Application Process.

Note • History

Applications for an Allocation of the Extra Credit Teacher Home Purchase Program Pool shall be considered in accordance with the provisions of chapter 1 and the submission of an ECTHP Application.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(g), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 2 (sections 5310-5315) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 2 (sections 5310-5315) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 2 (sections 5310-5315) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of Note, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5311. Application of Standards.

Note • History

Issuers of Mortgage Revenue Bonds or Mortgage Credit Certificates pursuant to this chapter may apply these eligibility standards to borrowers without regard to the date of receipt of Allocation.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(g), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section and Note, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5312. Applicant Eligibility.

Note • History

An Applicant requesting an Allocation from the Extra Credit Teacher Home Purchase Program Pool must be an approved Issuer of Mortgage Credit Certificates or Mortgage Revenue Bonds and must propose an Extra Credit Teacher Home Purchase Program whereby Mortgage Credit Certificates or loans funded by Mortgage Revenue Bonds will be made available to Eligible Teachers, Eligible Administrators, Eligible Classified Employees, and Eligible Staff Members. Issuers of Mortgage Credit Certificates and Mortgage Revenue Bonds may apply jointly.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(g), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section and Note, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5313. Program Goals.

Note • History

The Extra Credit Teacher Home Purchase Program proposed by the Applicant must be for the purpose of recruiting and retaining Eligible Teachers, Eligible Administrators, and Eligible Classified Employees in High Priority Schools, and the Applicant must commit to and describe its plan to promote, publicize and market the program in conjunction with school district(s) and county office(s) of education to Eligible Teachers, Eligible Administrators, and Eligible Classified Employees.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(g), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section and Note, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5314. Program Provisions.

Note • History

The Extra Credit Teacher Home Purchase Program proposed by the Applicant must, at a minimum, include all of the following:

(a) A specific plan that gives priority to Eligible Teachers, Eligible Administrators, and Eligible Classified Employees working in High Priority Schools ranked 1, 2 or 3 in the API rankings.

(b) A provision that Eligible Teachers, Eligible Administrators, and Eligible Classified Employees include such individuals who are assigned to a school district but provide administration or service to at least one High Priority School for the length of the service commitment.

(c) A provision restricting the program to Eligible Teachers, Eligible Administrators, and Eligible Classified Employees who agree, through a written service commitment, to teach, provide administration or service in a High Priority School for a minimum of three (3) years continuously from the date the Mortgage Credit Certificate or the loan funded by Mortgage Revenue Bonds is awarded to the Program Participant, and for whom an Extra Credit Teacher Home Purchase Program Eligibility Certificate has been completed and submitted by a duly authorized representative of the employing school district or county office of education.

(d) A written service commitment of the Program Participant. Program Participants are required to certify to the Applicant when they have fully performed the service commitment or request to be excused from the service commitment pursuant to subdivision (e) of this section. Early pay off of a loan does not constitute an excuse from the service commitment. Certifications of service commitment must be signed by either:

(1) A duly authorized representative of the employing school district or county office of education; or

(2) The Program Participant under penalty of perjury.

(e) A provision by which Program Participants will be excused from their service commitment in the following cases:

(1) The Program Participant has been continuously employed at the same school since the date of the service commitment, but the school is no longer considered a High Priority School;

(2) The Program Participant's departure from the High Priority School was involuntary, and was not the result of disciplinary action, and she/he accepts another eligible position at a California K-12 public school within one year of the date of departure;

(3) Hardship cases, including but not limited to serious illness, death and divorce;

(4) Occurrences covered under the Family Medical Leave Act or the California Family Rights Act;

(5) Other exceptions as proposed by the Applicant in the Application and approved by the Committee. The Committee may delegate this authority to the Chair or the Executive Director.

(f) A priority system such that:

(1) In the event an Applicant's program is oversubscribed, the Applicant must provide assistance to Eligible Teachers and Eligible Administrators before providing such assistance to other eligible Program Participants.

(2) Eligible Teachers with National Board Certification shall have priority over Eligible Teachers without such certification.

(3) Applicants may determine how each priority will be implemented (e.g., a program set-aside) and shall indicate such in the Application.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(g), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section and Note, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5315. Alternative Schools. [Repealed]

Note • History

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including repealer of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 3. Evaluation Criteria

§5320. Evaluation Criteria.

Note • History

Upon a determination that an Application meets the minimum requirements pursuant to article 2 of this chapter, Applications will be evaluated based on the following criteria:

(a) The amount of the Homeownership Assistance to be provided and the percentage of Program Participants to whom it will be provided.

(b) The strength of the Applicant's plan to publicize, promote and market the Extra Credit Teacher Home Purchase Program to School Districts, County Offices of Education, Eligible Teachers, Eligible Administrators, Eligible Classified Employees and Eligible Staff Members.

(c) The extent to which Applicants show the greatest need within the Applicant's jurisdiction to recruit and retain Eligible Teachers, Eligible Administrators, Eligible Classified Employees and Eligible Staff Members.

(d) The Applicant's past performance, if any, in using past Allocations from the Extra Credit Teacher Home Purchase Program Pool.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(g), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 3 (sections 5320-5321) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 3 (sections 5320-5321) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 3 (sections 5320-5321) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section and Note, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5321. Allocation Amount.

Note • History

The Committee will determine the amount allocated to each Applicant based upon the evaluation criteria set forth in section 5320, the number of Applicants applying in the Allocation Round, and the amount of allocation available in the Extra Credit Teacher Home Purchase Program Pool. The Committee may, in its sole discretion, allocate a larger portion of the Extra Credit Teacher Home Purchase Program Pool to Applicants who administer statewide Mortgage Credit Certificate and Mortgage Revenue Bond programs.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(g), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of Note, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 4. Reporting Requirements

§5330. Specific Reports.

Note • History

The Applicant shall annually report to the Committee, no later than January 31 of each year, the following information:

(a) The number of loans or Mortgage Credit Certificates issued aggregated by calendar year;

(b) The schools at which Program Participants are employed, aggregated by API rank and the percent of non-credentialed teachers employed at the school;

(d) The number of Program Participants that successfully complete the service commitment during the prior calendar year;

(e) The number of Program Participants that are currently serving but have not completed the service commitment;

(f) The number of Program Participants that were excused during the prior calendar year from the service commitment under section 5314(e);

(g) The number of Program Participants during the prior calendar year that left a High Priority School without fulfilling their service commitment and who were not eligible for one of the exceptions set forth in section 5314(e);

(h) The number of Program Participants that have not responded to the Applicant's request for certification of the service commitment; and

(i) The total amount of assessment, if any, collected pursuant to section 5340.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(g), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 4 (section 5330) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 4 (section 5330) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 4 (section 5330) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of Note, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 5. Noncompliance

§5340. Monetary Assessment.

Note • History

Where a Program Participant fails to fulfill the requirements of the service commitment and has not been excused from the service commitment, the Applicant may recover as an assessment from the Program Participant a monetary amount equal to the lesser of the following:

(a) One-half (1/2) of the Program Participant's net proceeds from the sale of the related residence; or

(b) The amount of monetary benefit conferred on the Program Participant as a result of the loan or Mortgage Credit Certificate, offset by the amount of any federal recapture, as defined by 26 U.S.C. section 143(m).

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.84(g), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 5 (section 5340) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 5 (section 5340) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 5 (section 5340) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of Note, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Chapter 5. Single Family Housing Home Improvement and Rehabilitation Program

Article 1. Definitions

§5342. Definitions.

Note • History

In addition to the definitions set forth in Government Code section 8869.82 and unless otherwise required by the context, the following terms as used in this chapter are defined as follows:

“Home Improvement and Rehabilitation MCC Application” means the Application titled “Application for an Allocation of the State Ceiling on Qualified Private Activity Bonds for a Home Improvement and Rehabilitation Mortgage Credit Certificate Program” (revised 12-12-12), which is hereby incorporated by reference.

“Home Improvement and Rehabilitation MRB Application” means the Application titled “Application for an Allocation of the State Ceiling on Qualified Private Activity Bonds for a Home Improvement and Rehabilitation Mortgage Revenue Bond Program” (revised 12-12-12), which is hereby incorporated by reference.

“Qualified Home Improvement Loan” means a loan as defined by Title 26 of U.S.C. section 143(k)(4)

“Qualified Rehabilitation Loan” means a loan as defined by Title 26 of U.S.C. section 143(k)(5)

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

1. Renumbering of former chapter 5 to chapter 6 and new chapter 5 (sections 5343-5348), article 1 (section 5342) and section filed 12-21-2012 as an emergency pursuant to Government Code section 8869.94; operative 12-21-2012 (Register 2012, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-19-2013 or emergency language will be repealed by operation of law on the following day.

Article 2. Eligibility Requirements

§5343. Application Process.

Note • History

Applications for an Allocation of Home Improvement and Rehabilitation MCCs or MRBs shall be considered in accordance with the provisions of Chapter 1 and the submission of a Home Improvement and Rehabilitation MCC Application or a Home Improvement and Rehabilitation MRB Application. The maximum requested amount of Allocation per Application shall not exceed $20 million. Should the Application round be deemed non-competitive, the Executive Director may waive this cap.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 2 (sections 5343-5345) and section filed 12-21-2012 as an emergency pursuant to Government Code section 8869.94; operative 12-21-2012 (Register 2012, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-19-2013 or emergency language will be repealed by operation of law on the following day.

§5344. Minimum Requirements.

Note • History

(a) An Applicant requesting an Allocation for a Home Improvement and Rehabilitation Program must commit to a minimum of twenty percent (20%) of the participants in the Home Improvement and Rehabilitation Program being:

(1) Households located in a Qualified Census Tract; or

(2) Households earning eighty percent (80%) or less of the Applicable Median Family Income of the area in which the program is located. Applicants may use the high-cost area adjustment set forth in 26 U.S.C. section 143(f)(5) to meet this minimum requirement,

(b) For Home Improvement and Rehabilitation Mortgage Revenue Bond Programs, in order to be eligible for a new Home Improvement and Rehabilitation Program Allocation, the Applicant shall:

(1) Demonstrate that all proceeds from a Bond issuance in the calendar year three (3) years prior to the current year (other than amounts that are insufficient to fund one Home Improvement and Rehabilitation loan) have been used to finance loans, or; have been refunded on either a short or long term basis so as to be available to finance loans.

(c) For Home Improvement and Rehabilitation Mortgage Credit Certificate programs, in order to be eligible for a new Home Improvement and Rehabilitation Program Allocation, the Applicant must:

(1) Demonstrate that all remaining Bond authority in the calendar year two (2) years prior to the current year (other than amounts that are insufficient to fund one Home Improvement and Rehabilitation MCC) have been issued.

(2) Certify that any Mortgage Credit Certificate authority remaining from the year prior to the current year will be used before the use of new Home Improvement and Rehabilitation Mortgage Credit Certificate authority.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New section filed 12-21-2012 as an emergency pursuant to Government Code section 8869.94; operative 12-21-2012 (Register 2012, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-19-2013 or emergency language will be repealed by operation of law on the following day.

§5345. Exceptions to Minimum Requirements.

Note • History

With respect to subsections (b) and (c) of section 5344, the Committee may consider exceptions to the minimum requirements based upon detailed information submitted by the Applicant stating the reasons for the underachievement and explaining why the circumstances surrounding the underachievement are beyond the control of the Applicant. The Committee may delegate the discretion to approve or deny an Applicant's request for such exception to the Chair of the Committee or to the Executive Director. To be granted an exception, an Applicant must demonstrate its need to use new Allocation even if unused Mortgage Revenue Bond Allocation or Mortgage Credit Certificate authority totals over $1 million from prior years.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

Article 3. Evaluation Criteria

§5346. Past Performance.

Note • History

Applicants must demonstrate that Home Improvement and Rehabilitation Mortgage Credit Certificate Program Allocation from the past year has been used or are designated to be used to issue Mortgage Credit Certificates.

The Committee may consider exceptions to the Past Performance requirement based upon detailed information submitted by the Applicant stating the reasons for the underachievement and explaining why the circumstances surrounding the underachievement are beyond the control of the Applicant. The Committee may delegate the discretion to approve or deny an Applicant's request for such exception to the Chair of the Committee or to the Executive Director. To be granted an exception, an Applicant must demonstrate its need to use new Allocation even if unused Mortgage Revenue Bond Allocation or Mortgage Credit Certificate authority totals over $1 million from prior years.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 3 (sections 5346-5347) and section filed 12-21-2012 as an emergency pursuant to Government Code section 8869.94; operative 12-21-2012 (Register 2012, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-19-2013 or emergency language will be repealed by operation of law on the following day.

§5347. Potential Public Benefits Calculation.

Note • History

For each Allocation round, programs will be evaluated and ranked based on how effectively they will achieve the following public benefits relative to their competitor's performance: Serving the maximum number of households earning eighty percent (80%) or less of the Applicable Median Family Income of the area in which the program is located; ensuring the lowest interest rates to borrowers; and serving the maximum number of households with the allocation.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

Article 4. Reporting Requirements

§5348. Program Performance Monitoring.

Note • History

Applicants will be required to track the information identified in Exhibits 1 and 2 of their applicable Home Improvement and Rehabilitation MCC or MRB Application and report that information to the Committee by March 1 of each calendar year.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 4 (section 5348) and section filed 12-21-2012 as an emergency pursuant to Government Code section 8869.94; operative 12-21-2012 (Register 2012, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-19-2013 or emergency language will be repealed by operation of law on the following day.

Chapter 6. Small-Issue Industrial Development Bond Program

Article 1. Definitions

§5350. Definitions.

Note • History

In addition to the definitions set forth in Government Code section 8869.82 and unless otherwise required by the context, the following terms as used in this chapter are defined as follows:

“ANSI” means the American National Standards Institute which facilitates the development of American National Standards by accrediting standards developing organizations for a wide variety of products, manufacturing and industrial processes, and distribution processes for goods, services and energy.

“Forest Stewardship Council” means the independent, non-governmental, not-for-profit organization established in 1993 to promote the responsible management of the world's forests in cooperation with the ISO.

“IDB Application” means the Application titled “Application for an Allocation of the State Ceiling on Qualified Private Activity Bonds for a Small-Issue Industrial Development Bond Project” (revised 10-1-11), which is hereby incorporated by reference.

“ISO” means the International Organization of Standardization

“Job Retention” means full time jobs that will be retained in California by the Project Sponsor. The company must be actively seeking to relocate jobs out of the state; forced to eliminate jobs in order to remain in operation; at risk of closing their local operations; or be acquired prior to closing or relocating under new ownership that commits to maintain company operations and retain existing jobs. The number of jobs retained shall be calculated on the number of full time jobs that are on the company payroll at the time of Application. The Job Retention period will begin upon issuance of the Bonds and must be met within two (2) years after issuance of Bonds. The Job Retention requirement may be monitored by CIDFAC and CIEDB utilizing Employment Development Department job retention statistics.

“Median Hourly Production Occupation Wage” means the median hourly wage for production occupations as defined by the U.S. Bureau of Labor Statistics.

“Qualified Retirement Plan” means a retirement satisfying the requirements of 26 U.S.C. sections 401(a) or 403(a) and the Employee Retirement Income Security Act of 1974 (ERISA).

“Renewable Energy” means any device or technology that conserves or produces heat, processes heat, space heating, water heating, steam, space cooling, refrigeration, mechanical energy, electricity, or energy in any form convertible to these uses, that does not expend or use conventional energy fuels, and that uses any of the following electrical generation technologies pursuant to California Public Resources Code 26003(i)(1):

w Biomass

w Solar thermal.

w Photovoltaic.

w Wind.

w Geothermal.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

1. New chapter 5 (articles 1-4, sections 5350-5384), article 1 (section 5350) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New chapter 5 (articles 1-4, sections 5350-5384), article 1 (section 5350) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New chapter 5 (articles 1-4, sections 5350-5384), article 1 (section 5350) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

5. Amendment of definition of “IDB Application” filed 12-9-2011 as an emergency; operative 12-9-2011 (Register 2011, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-6-2012 or emergency language will be repealed by operation of law on the following day.

6. Amendment of definition of “IDB Application” refiled 6-1-2012 as an emergency; operative 6-1-2012 (Register 2012, No. 22). A Certificate of Compliance must be transmitted to OAL by 8-30-2012 or emergency language will be repealed by operation of law on the following day.

7. Amendment of definition of “IDB Application” refiled 8-29-2012 as an emergency; operative 8-29-2012 (Register 2012, No. 35). A Certificate of Compliance must be transmitted to OAL by 11-27-2012 or emergency language will be repealed by operation of law on the following day.

8. Renumbering of former chapter 5 to chapter 6 filed 12-21-2012 as an emergency pursuant to Government Code section 8869.94; operative 12-21-2012 (Register 2012, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-19-2013 or emergency language will be repealed by operation of law on the following day.

9. Certificate of Compliance as to 8-29-2012 order transmitted to OAL 11-26-2012 and filed 1-8-2013 (Register 2013, No. 2).

Article 2. Applications

§5360. Application Process.

Note • History

Applications for an Allocation of the Small-Issue Industrial Development Bond Program Pool shall be considered in accordance with the provisions of chapter 1 and the submission of an IDB Application.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

1. New article 2 (section 5360) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 2 (section 5360) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 2 (section 5360) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5361. Allocations to CIDFAC.

Note • History

The Committee may award an Allocation to CIDFAC for purposes of sub-awarding Small-Issue Industrial Development Bond Allocation to Applicants on behalf of the Committee. In awarding the Allocation to CIDFAC, the Committee will authorize CIDFAC to transfer portions of the Allocation to Local Issuers and the CIEDB for purposes of issuing bonds under the Small-Issue Industrial Development Bond Program.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(a), Government Code.

HISTORY

1. New section filed 7-1-2011; operative 7-1-2011 (Register 2011, No. 26).

§5362. Transfer of Allocation by CIDFAC.

Note • History

CIDFAC will transfer, by resolution, Allocation to Local Issuers based on the total scores of the applicable Small-Issue Industrial Development Program Projects competing in the same month. The Allocations will be awarded in order of high score to low score. CIDFAC may establish a minimum point threshold for receiving Allocation.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(a), Government Code.

HISTORY

1. New section filed 7-1-2011; operative 7-1-2011 (Register 2011, No. 26).

§5363. Reporting Requirements.

Note • History

CIDFAC will report each transfer of Allocation to the Executive Director. Applicants receiving Allocation under the Program shall comply with the reporting requirements contained in article 11 of chapter 1.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(a), Government Code.

HISTORY

1. New section filed 7-1-2011; operative 7-1-2011 (Register 2011, No. 26).

Article 3. Evaluation Criteria

§5369. Minimum Requirements.

Note • History

Applications for a Small-Issue Industrial Development Bond Project must provide documentation of the applicable discretionary use permits and approvals from federal, state or local planning agencies for the proposed Project at the time of Application. Applicants are not required to have obtained ministerial approvals at the time of Application.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

1. New section filed 7-1-2011; operative 7-1-2011 (Register 2011, No. 26).

§5370. Evaluation Criteria.

Note • History

(a) Community Economic Need (25 points maximum). Applications will be awarded points for Projects that are located in communities according to the following:

(1) Unemployment Rate (10 points maximum) Based on data from the California Employment Development Department, the average unemployment rate for the preceding calendar year of the county sub-area in which the Small-Issue Industrial Development Bond Project is located will be divided by the statewide unemployment rate for the preceding calendar year and multiplied by one-hundred (100). The following points will be awarded accordingly:

(A) Ten (10) points to a Project located in an area with an unemployment rate that is one hundred seventy-five percent (175%) or more of the statewide average.

(B) Five (5) points to a Project located in an area with an unemployment rate that is one hundred twenty-five percent (125%) or more, but less than one hundred seventy-five percent (175%), of the statewide average.

(2) Project Area Poverty Rate (5 points maximum). Based on the most recent data from the United States Bureau of the Census, the estimated poverty rate of each federal census tract within a 1-mile radius area of the Project site, including the tract in which the Project is located will be averaged, divided by the statewide poverty rate and multiplied by one-hundred (100). The following points will be awarded accordingly:

(A) Five (5) points to a Project located in an area in which the poverty rate is over one hundred twenty-five percent (125%) of the statewide poverty rate.

(B) Three (3) points to a Project located in an area in which the poverty rate is over one-hundred ten percent (110%) but not more than one-hundred twenty-five percent (125%) of the statewide poverty rate.

(3) Special Designation Area (5 points maximum). Points will be awarded provided the following is demonstrated:

(A) Evidence that the Project is located in a Special Designation Area.

(B) A scaled-for distance map that is legible and clearly shows the boundaries of the Special Designation Area and the location of the proposed Project with the area boundaries.

(4) Median Family Income (5 points maximum). Points will be awarded for a Project located in an area with a median family income of less than eighty percent (80%) of the statewide average based on the most recent census data available for cities or Census Designated Places. If no city or Census Designated Place level data is available, or if the Applicant chooses to identify a Project benefit area that is smaller than a city or Census Designated Place, such as census tract or tracts, smaller areas may be used.

(5) If a Project is located in an area for which there is no available economic data, the Qualified Recovery Zone Bond Issuer may submit alternate information to establish the Project's consistency with the intent of the aforementioned point categories pursuant to subdivision (a) of this section. For example, a Qualified Recovery Zone Bond Issuer may submit unemployment and/or median family income data for a neighboring area that is a sub-area, a city, or a Census Designated Place that is in close proximity to the proposed Project. The Executive Director shall have the authority to determine whether the alternate information meets the intent of the point category for which such information has been submitted.

(b) Jobs Creation and Retention (45 points maximum). Applications will be awarded points for Projects that create and/or retain jobs according to the following:

(1) Job Creation (35 points maximum). Applications will be eligible for Job Creation points when full-time new jobs have been created pursuant to the Job Retention definition provided in section 5350. Based on the Project Sponsor's representation that they will make their best efforts to increase the number of direct, full-time employees at the Project site within two (2) years of Project completion, points will be awarded as follows:

(A) Thirty-five (35) points to Projects creating a 31% or more increase in the manufacturer's workforce.

(B) Twenty (20) points to Projects creating a 21% to 30% increase in the manufacturer's workforce.

(2) Job Retention (10 points maximum). Applications will be eligible for Job Retention points when jobs have been retained pursuant to the Job Creation definition as provided in section 5000. To qualify for Job Retention points, the jobs retained must be those that would be lost in the absence of the requested Allocation. Points will be awarded provided the following:

(A) A certification that the Project Sponsor will retain the specified jobs for a two (2) year period after the issuance of Bonds. The Committee may verify jobs retained at any time during the two (2) year period, or

(B) A verification letter from the appropriate local governmental entity stating that the Project Sponsor's business is at risk of closing local operations, and that the requested Allocation and retention of the Project Sponsor's business is an integral part of its plan to maintain the health of the local economy and retain employment, or

(C) Written evidence from the Project Sponsor that the company within two (2) years prior to the submission of an Application for tax-exempt IDB financing, engaged a site selector to find possible relocation sites.

(1) Welfare-to-Work (5 points maximum). Points will be awarded where the Project Sponsor proposes or is participating in a Welfare-to-Work Plan in conjunction with a local governmental agency, educational agency, or non-profit organization. Evidence may include a signed letter or documentation demonstrating a proposed plan has been acknowledged or that participation is occurring that includes, at minimum, the manner and extent of the participation.

(2) Workforce Training (5 points maximum). To qualify for points in this category, the Project Sponsor must provide copies of official documentation of its current or pending participation. Such documentation shall include copy of an executed contract between the Project Sponsor and the provider; or a formal letter from the provider addressed to the Project Sponsor acknowledging the Project Sponsor's current or pending participation in the program. Points will be awarded where the Project Sponsor participates in one or more training, retraining or apprenticeship programs offered by any of the following state agencies, certified training facilities or postsecondary institutions:

(A) The California Employment Training Panel;

(B) The California Department of Industrial Relations;

(D) University;

(E) Adult school; or

(F) A regional occupational program or private training agency approved by the California Bureau of Private Postsecondary and Vocational Education.

(3) Exports Outside of California (5 points maximum). To qualify for points in this category, an officer or owner of the Project Sponsor must certify in writing on Project Sponsor letterhead that it exports, or in the case of the construction of a new manufacturing facility at a new Project site, anticipates that it will export as part of its business plan as follows:

(A) In excess of 30% of products manufactured at the Project site (5 points);

(B) Over 20% and up to 30% of its products manufactured at the Project site (3 points);

(d) Payment of Employee and Dependent Medical, Dental, Vision and Retirement Costs (20 points maximum). Applications will be awarded points where the Project Sponsor contributes toward the cost of employee and dependent medical, dental, and vision benefits. Applicants must provide evidence of the amount paid to each medical, dental and vision provider and the amount of employee contribution toward the provision of these benefits. Points will be awarded based on the average dollar amount per participating employee contributed by the Project Sponsor toward the cost of benefits as follows:

(1) Health, Dental and Vision (15 points maximum).

(A) Fifteen (15) points will be awarded to Applications that demonstrate that the Project Sponsor will contribute an average of $330 or more per month toward the cost of the medical, dental, or vision for each participating employee of the Project.

(B) Ten (10) points will be awarded to Applications that demonstrate that the Project Sponsor will contribute an average of $220 or more, but less than $330, per month toward the cost of the medical, dental, or vision benefits for each participating employee of the Project.

(C) Five (5) points will be awarded to Applications that demonstrate that the Project Sponsor will contribute an average of $110, but less than $220, per month toward the cost of the medical, dental, or vision benefits for each participating employee of the Project.

(2) Retirement Plans (5 points maximum). To qualify for points in this category, the Project Sponsor must provide specific documentation to show it contributes to a Qualified Retirement Plan or other retirement account for each participating employee and must confirm that it will offer such benefits to employees hired in accordance with the representations made pursuant to the Job Creation definition as provided in section 5000.

(e) Average Hourly Wage (10 points maximum). Applications will be awarded points based on a comparison of the Project Wage to the most recent Job Wage. The Project Wage will be divided by the Job Wage and multiplied by one-hundred (100). Points will be awarded as:

(1) Ten (10) points for a Project Wage that is one hundred twenty-five percent (125%) or more of the Job Wage.

(2) Six (6) points for a Project Wage that is one hundred fifteen percent (115%) or more but less than one hundred twenty-five percent (125%) of the Job Wage.

(3) Three (3) points for a Project Wage that is one hundred five percent (105%) or more but less than one hundred fifteen percent (115%) of the Job Wage.

(f) Environmental Stewardship (27 points maximum).

(1) Land Use (3 points maximum). Points will be awarded to Projects that involve the reuse of the following:

(A) Vacant or abandoned buildings; or

(B) Vacant or abandoned land with developed infrastructure, excluding land where the immediate prior use was agricultural, open space or other similar use.

(2) Public Transportation (4 points maximum).

(A) In areas where there is no public transportation system, three (3) points will be awarded to Applications where the Project Sponsor has an adopted transportation system management plan, or;

(B) Four (4) points will be awarded to Projects that are located within one-quarter (1/4) of a mile of a regular route stop within a Public Transit Corridor evidenced by a scaled-for-distance map showing the location of the Project is within a one-quarter (1/4) mile radius of a Public Transportation Corridor and where the Project Sponsor provides written evidence of offering public transit subsidies for employees at the Project site.

(3) Energy Efficiency/ Renewable Energy (10 points maximum).

(A) Five (5) points will be awarded to Projects that utilize designs, materials or techniques to reduce energy usage by at least fifteen (15%) on the part of the Project Sponsor compared to the following benchmarks:

(i) For building construction or rehabilitation, the most recently published California Energy Commission Energy Efficiency Standards for Residential and Non-Residential Buildings; or

(ii) For equipment to be purchased and installed, the current per energy unit output of equipment currently in use by the Project Sponsor. Evidence should include a utility company letter indicating that energy savings are Projected or a written certification from an energy efficiency consultant.

(B) Five (5) points will be awarded to Projects that involve the installation and use of Renewable Energy equipment to power the production process. The Project Sponsor must provide written documentation from its utility company which specifies the installation or planned installation of Renewable Energy equipment.

(4) Manufacturer of Certified Environmentally Preferable Products (5 points maximum). Points will be awarded to Projects which produce or will produce environmentally friendly products certified by an ANSI accredited standards developing organization (e.g., Green Seal, Inc.) or by a widely-recognized and reputable organization accredited as a certifier by an ANSI accredited standards developing organization or by a Forest Stewardship Council (e.g., Scientific Certification Systems, Inc.). The Project Sponsor must provide the current, official documentation of the certification and must provide the percentage of the overall output that is comprised of the certified products.

(5) U.S. Green Building Council (USGBC) LEED-Certified Manufacturing Facility (5 points maximum). Points will be awarded to Projects for which Bond proceeds will be used to construct U.S. Green Building Council (USGBC) LEED-certified facilities, or to make improvements to existing facilities that will qualify it for a LEED certificate. The Project Sponsor must provide either:

(A) Official documentation of its registration (including evidence of payment of the registration fee) with the USGBC to obtain LEED certification in cases where the Project involves the construction of a new facility and construction has not begun or is not complete at the time of Application; or

(B) Official documentation of receipt of a Silver, Gold or Platinum LEED Certification in cases where construction or improvements and the certification process are completed.

(g) Leverage (5 points maximum). Points will be awarded to Projects for which Taxable Debt, a taxable loan, and/or private funds or equity will supplement the use of the tax-exempt Bond financing. The Project Sponsor must provide overall Project costs and certify that one or more of these other sources of financing will be used for Projects expenses with points awarded for achieving the following levels:

(1) Five (5) points for Projects where greater than twenty percent (20%) of total Project costs will be paid from Taxable Debt, a taxable loan, and/or private funds or equity.

(2) Three (3) points for Projects where greater than ten percent (10%) and up to twenty percent (20%) of total Project costs will be paid from Taxable Debt, a taxable loan, and/or private funds or equity.

(h) Ranking Applications. Where two or more Applications are awarded the same number of points pursuant to this section, the Executive Director will divide the Allocation amount requested by each such Application by the number of jobs created by the related Project, and will rank the Applications based on the lowest amount of requested Allocation per job(s) created.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

1. New article 3 (sections 5370-5372) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 3 (sections 5370-5372) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 3 (sections 5370-5372) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

5. Amendment subsections (b)-(b)(1)(B), (f)(2)(A) and (f)(4) filed 12-9-2011 as an emergency; operative 12-9-2011 (Register 2011, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-6-2012 or emergency language will be repealed by operation of law on the following day.

6. Amendment of subsection (a)(3)(A) filed 4-4-2012 as an emergency; operative 4-4-2012 (Register 2012, No. 14). A Certificate of Compliance must be transmitted to OAL by 10-1-2012 or emergency language will be repealed by operation of law on the following day.

7. Amendment subsections (b)-(b)(1)(B), (f)(2)(A) and (f)(4) refiled with further amendments to subsections (b)(1)(A)-(B) 6-1-2012 as an emergency; operative 6-1-2012 (Register 2012, No. 22). A Certificate of Compliance must be transmitted to OAL by 8-30-2012 or emergency language will be repealed by operation of law on the following day.

8. Amendment subsections (b)-(b)(1)(B), (f)(2)(A) and (f)(4) refiled 8-29-2012 as an emergency; operative 8-29-2012 (Register 2012, No. 35). A Certificate of Compliance must be transmitted to OAL by 11-27-2012 or emergency language will be repealed by operation of law on the following day.

9. Certificate of Compliance as to 4-4-2012 order transmitted to OAL 9-6-2012 and filed 9-27-2012 (Register 2012, No. 39).

10. Certificate of Compliance as to 8-29-2012 order transmitted to OAL 11-26-2012 and filed 1-8-2013 (Register 2013, No. 2).

§5371. Enterprise/Empowerment Zone Facility Bond Projects.

Note • History

For a proposed Enterprise/ Empowerment Zone Facility Bond Project for which the Applicant has determined that Job Creation is the Project's major public benefit, Applications shall be considered pursuant to this chapter.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5372. Permits. [Repealed]

Note • History

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including repealer of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 4. Small Business Program

§5380. Allocations to CIDFAC.

Note • History

The Committee may award an Allocation to CIDFAC for purposes of administering a Small Business Program. In awarding the Allocation to CIDFAC, the Committee will authorize CIDFAC to transfer portions of the Allocation to Local Issuers and the CIEDB for purposes of issuing Bonds under the Program on behalf of qualified small businesses. An Applicant may submit an Application to the Small Business Program or the Small-Issue Industrial Development Bond Program; however, an Applicant may not submit Applications for the same Project to both programs concurrently. Small Business Program Applications shall be considered pursuant to this chapter.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(a), Government Code.

HISTORY

1. New article 4 (sections 5380-5384) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 4 (sections 5380-5384) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 4 (sections 5380-5384) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5381. Minimum Requirements. [Repealed]

Note • History

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(a), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including repealer of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5382. Evaluation Criteria. [Repealed]

Note • History

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(a), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including repealer of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5383. Transfer of Allocation by CIDFAC. [Repealed]

Note • History

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(a), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including repealer of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5384. Reporting Requirements. [Repealed]

Note • History

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(a), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including repealer of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Chapter 7. Exempt Facility Bond Program

Article 1. Definitions

§5400. Definitions.

Note • History

In addition to the definitions set forth in Government Code section 8869.82 and unless otherwise required by the context, the following terms as used in this chapter are defined as follows:

“California Environmental Quality Act Review Process” means a process of environmental review as defined by California Public Resources Code sections 21000, et seq.

“EXF Application” means the Application titled “Application for an Allocation of the State Ceiling on Qualified Private Activity Bonds for an Exempt Facility Project” (revised 1-11-11), which is hereby incorporated by reference.

“First Tier Business” means (1) a business that (a) is primarily engaged in the collection, recycling, transportation, and/or disposal of solid waste, (b) is a privately-held or employee-owned entity whose ownership interests are not available to members of the public, and (c) has fewer than 3,000 employees (together with affiliates), based on the average employees per pay period during the most recent twelve (12) months before submittal of an Application; or (2) a business which is not primarily engaged in the collection, recycling, transportation, and/or disposal of solid waste that is classified as a small business under regulations of the California Pollution Control Financing Authority (Title 4, California Code of Regulations, sections 8001 et seq.).

“Regulatory Mandate” means a local, state or federal government mandate including, but not limited to, Public Resources Code, section 40000 et seq., a local public health department notice and order, a Regional Water Quality Control Board issued cease and desist order, or similar directive.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

1. New chapter 6 (articles 1-5, sections 5400-5440), article 1 (section 5400) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New chapter 6 (articles 1-5, sections 5400-5440), article 1 (section 5400) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New chapter 6 (articles 1-5, sections 5400-5440), article 1 (section 5400) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

5. Renumbering of former chapter 6 to chapter 7 filed 12-21-2012 as an emergency pursuant to Government Code section 8869.94; operative 12-21-2012 (Register 2012, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-19-2013 or emergency language will be repealed by operation of law on the following day.

Article 2. Applications

§5410. Application Process.

Note • History

Applications for an Allocation of the Exempt Facility Project Pool shall be considered in accordance with the provisions of chapter 1 and the submission of an EXF Application.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

1. New article 2 (sections 5410-5411) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 2 (sections 5410-5411) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 2 (sections 5410-5411) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5411. Allocations to CPCFA.

Note • History

The Committee may award an Exempt Facility Allocation to the California Pollution Control Financing Authority (CPCFA) for the purposes of administering the Exempt Facility Project Pool. In awarding the Allocation to CPCFA, the Committee will authorize CPCFA to allocate portions of the award to Project Sponsors for purposes of issuing bonds.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(a), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 3. Eligibility Requirements

§5420. Justification of Tax-Exempt Funds.

Note • History

An Application for an Exempt Facility Project must demonstrate that there will be more public benefits (e.g. a reduction in fees to the consumer) if the Project is financed with tax-exempt Bond financing than with any other means of financing available to the Project Sponsor. At a minimum, documentation must compare tax-exempt Bond financing with other means of financing available to the Project Sponsor, such as conventional bank loans, lines of credit, taxable bonds, and other instruments.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 3 (sections 5420-5423) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 3 (sections 5420-5423) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 3 (sections 5420-5423) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5421. CEQA Requirements.

Note • History

The Applicant must have commenced the California Environmental Quality Act Review Process at the time of Application, if applicable to the Exempt Facility Project proposed. The notice of determination required under Public Resources Code section 21152 for the Exempt Facility Project must have been published at the time of Application and the statute of limitations as defined by Public Resources Code section 21167 for filing an appeal to the decision must have expired prior to the Allocation Round during which the Application will be considered. If an appeal has been filed, the Executive Director may consider factors including, but not limited to, the following in determining whether this requirement has been met:

(a) Whether the appellant has posted a bond.

(b) Whether the appellant has sought injunctive relief.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5422. Permits.

Note • History

The Applicant must provide documentation of the applicable discretionary use permits and approvals from federal, state or local planning agencies for the proposed Project at the time of Application. Applicants are not required to have obtained ministerial approvals at the time of Application.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5423. Review of New Technologies.

Note • History

The Committee will perform a formal policy review of Projects other than those submitted by the California Pollution Control Finance Authority that involve technologies unfamiliar to the Committee and/or for industries that have not previously requested an award of Allocation. The Committee may request assistance of other federal, state, and local agencies when conducting this review. The Applicant or Project Sponsor may be asked to provide additional information relevant to the Committee's review. The review process shall result in a written policy concerning the advisability of awarding Allocation based on but not limited to the Project's public benefit, financial feasibility and environmental impact.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 4. Evaluation Criteria

§5430. Environmental Goals.

Note • History

The Application will be reviewed for a determination whether the Project, as a whole, promotes or protects environmental quality in connection with the construction and operation of the Exempt Facility Project. Specific factors include:

(a) Whether the Exempt Facility Project is designed to minimize impact to or may result in an improvement of air quality.

(b) Whether the Exempt Facility Project is designed to minimize impact to or may result in an improvement of water quality.

(d) Whether the Exempt Facility Project will result in the recycling of commodities (glass, aluminum and other marketable materials) and green waste (composting and other organic wastes).

(e) Whether the Exempt Facility Project achieves its environmental goals on a cost effective basis to the consumer.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 4 (sections 5430-5435) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 4 (sections 5430-5435) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 4 (sections 5430-5435) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5431. Disposal of Solid Waste.

Note • History

No award of allocation shall be made to any Project that does not comply with all applicable state and federal environmental regulations regarding the safe disposal of solid waste.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5432. Non-Solid Waste Projects.

Note • History

Applications for Exempt Facility Projects or programs, other than solid waste disposal facilities not otherwise included in these regulations, but eligible for consideration for Qualified Private Activity Bond Allocation as an Exempt Facility Project will be considered pursuant to section 5423. Projects may include, but are not limited to, Bonds issued by a government agency to acquire any property from an investor-owned utility, sewage facilities, facilities for the furnishing of water, facilities for the local furnishing of electric energy or gas, qualified hazardous waste facilities, mass commuting facilities, local district heating or cooling facilities, environmental enhancements of hydroelectric generating facilities, high-speed inter-city rail facilities, and the equipment only purchase programs administered by the California Pollution Control Financing Authority. Applications shall be reviewed on a Project-by-Project basis considering the public benefits proposed.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5433. Use of Taxable Debt.

Note • History

The Application will be reviewed for a determination whether the Project will use taxable bond financing or other forms of financing (not including the minimum cash equity required by the Credit Enhancer) in addition to tax-exempt Bond financing in a manner such that the taxable bond financing or other forms of financing (not including the minimum cash equity required by the Credit Enhancer) will supplant the use of tax-exempt Bond financing.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5434. Local Support.

Note • History

The Application will be reviewed for a determination of whether documentation submitted by local regulatory agencies or local government demonstrates support of the Project and whether the Project supports and contributes to local waste management policy and planning. Examples of such support may include the identification of the Exempt Facility Project in the applicable elements of an approved county or regional agency integrated waste management plan.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5435. Conversion of Taxable Debt.

Note • History

The Committee may approve Projects that convert taxable debt to tax exempt debt as economic conditions and annual demand for the State Ceiling allow.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 5. Allocation Procedure

§5440. Ranking.

Note • History

Upon a determination that an Application has met the minimum requirements set forth in article 3 and article 4 of this chapter, Allocations from the Exempt Facility Project Pool will be ranked using the following criteria:

(a) Allocations will be first awarded to Applications in which the Project Sponsor is a First Tier Business, and the Exempt Facility Project proposed by the Application is in direct response to a Regulatory Mandate.

(b) If any part of the Exempt Facility Project Pool remains unallocated after the Committee makes the Allocations under subdivision (a) of this section, the Committee will then consider other Applications in which the Project Sponsor is a First Tier Business, but the proposed Exempt Facility Project is not in response to a Regulatory Mandate.

(c) If any part of the Exempt Facility Project Pool remains unallocated after the Committee makes the Allocations pursuant to subdivisions (a) and (b) of this section, the Committee will then consider Applications in which the Project Sponsor is not a First Tier Business, but the Exempt Facility proposed by the Application is in direct response to a Regulatory Mandate.

(d) If any part of the Exempt Facility Project Pool remains unallocated after the Committee makes the Allocations pursuant to subdivisions (a),(b), or (c) of this section, the Committee will then consider all other Applications for Exempt Facility Projects.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 5 (section 5440) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 5 (section 5440) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 5 (section 5440) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Chapter 8. Student Loan Programs

Article 1. Definitions

§5450. Definitions.

Note • History

In addition to the definitions set forth in Government Code section 8869.82 and unless otherwise required by the context, the following terms as used in this chapter are defined as follows:

“CEFA” means the California Educational Facilities Authority.

“Direct Lender” means an entity that originates loans directly to eligible borrowers in the state and does not include loans made for the purpose of consolidating or otherwise combining existing student loans.

“Program Sponsor” means a California nonprofit corporation organized pursuant to section 150(d) of the Internal Revenue Code of 1986, as amended, that possesses the authority to directly or indirectly make or finance student loans under the Higher Education Act of 1965, as amended, or a state agency.

“Student Loan Application” means the Application titled “Application for an Allocation of the State Ceiling on Qualified Private Activity Bonds for a Student Loan Program” (revised 1-11-11), which is hereby incorporated by reference.

“Student Loan Self Scoring Sheet” means the document provided in the Application for a Student Loan Program.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

1. New chapter 7 (articles 1-3, sections 5450-5470), article 1 (section 5450) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New chapter 7 (articles 1-3, sections 5450-5470), article 1 (section 5450) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New chapter 7 (articles 1-3, sections 5450-5470), article 1 (section 5450) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

5. Renumbering of former chapter 7 to chapter 8 filed 12-21-2012 as an emergency pursuant to Government Code section 8869.94; operative 12-21-2012 (Register 2012, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-19-2013 or emergency language will be repealed by operation of law on the following day.

Article 2. Eligibility Requirements

§5460. Application Process.

Note • History

Applications for an Allocation of the Student Loan Program Pool shall be considered in accordance with the provisions of chapter 1 and the submission of a Student Loan Application.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 2 (sections 5460-5461) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 2 (sections 5460-5461) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 2 (sections 5460-5461) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5461. Minimum Requirements.

Note • History

In order to be considered for an Allocation for a Student Loan Program, an Applicant must meet the following minimum requirements:

(a) California Non-profit Status. Must be a California nonprofit corporation organized pursuant to section 150(d) of the Internal Revenue Code of 1986, as amended, that possesses the authority to directly or indirectly make or finance student loans under the Higher Education Act of 1965, as amended, or be a state agency.

(b) CEFA Requirement. Before applying to the Committee for allocation of a portion of the State Ceiling pursuant to Government Code section 8869.82 and 8869.85, an entity that is seeking to issue qualified scholarship funding bonds must first obtain CEFA board approval, pursuant to Title 4, California Code of Regulations, section 9073(a), unless such entity became a qualified scholarship funding corporation as defined in subsection (d) of section 150 of Title 26 of the United States Code prior to January 1, 2006. CEFA may in its discretion determine not to grant approval to any entity regardless of whether the entity meets the threshold criteria as an Eligible Candidate as defined in Title 4, California Code of Regulations, section 9072(b). CEFA will consult and coordinate with the Committee prior to making a final determination.

(c) A portfolio itemizing the total dollar amount and corresponding percentage of student loans originated by the Applicant which assist financially needy borrowers in California. The data relied upon may be direct or derived from sources deemed by the Executive Director to be accurate.

(d) A proposal of interest rates and other discounts (time period is the next academic year commencing July 1 following the award of Allocation), a description and dollar amount of discounts (i.e. interest rate, guarantee fee, origination fee, etc.). Note: Information will be used in analysis of Application in the subsequent year.

(e) A description of marketing activities and status as a lender, anticipated total dollar amount and number of student loans made to two year, four year and other schools, the eligibility requirements for a loan, the benefits to student borrowers, the mechanism(s) or system(s) for the direct delivery of loans to eligible students and any other features unique to the Program.

(f) Demonstrate actual participation in the California Student Loan Market using the STUDENT MARKETMEASURE Standard Report 10D or other sources deemed by the Executive Director to be accurate. Applicant must include information from the most recently completed federal fiscal year with their Application.

(g) Completion of the Student Loan Self-Scoring Sheet to show what they anticipate to receive in allocation.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 3. Evaluation Criteria

§5470. Evaluation and Ranking.

Note • History

The following criteria will be used to evaluate, rank, and award Allocations from the Student Loan Program Pool:

(a) Allocations from the Student Loan Program Pool will be first awarded to Applications in which the Applicant is a Direct Lender and evaluated based on the following criteria:

(1) The total dollar amount and number of student loans originated by the Applicant in California. The data relied upon will be derived from the STUDENT MARKETMEASURE Standard Report 10D or other sources deemed by the Executive Director to be accurate. The time period shall be the most recently completed federal fiscal year. The Applicant's pro-rata share of the Student Loan Program Pool will in part be determined by the total dollar amount of student loans originated in California. The Committee will consider the incongruity between the federal fiscal year and the Allocation Round when evaluating the data.

(2) Proposed total cost of borrowing per borrower for the next academic year. This cost estimate should include origination fees, interest costs, and all other fees or expenses incurred by a borrower.

(3) Previous year average interest rate. Information provided must refer to the time period of the current academic year. In addition, this information must include averages and weighted averages for the following figures for each student loan program:

(A) Statutory interest rate.

(B) Total discount

For this time period, the Applicant must show the percentage breakdown of usage for all federal student loan programs: Subsidized Stafford, Unsubsidized Stafford, PLUS Parent and PLUS Graduate. This breakdown will be used to determine the weighted averages for the aforementioned figures.

(4) Comparison of Proposed and Actual Interest Rate. The weighted averages will be used to determine whether or not the Applicant was within 25% of the discounted interest rate that they proposed in the prior year. Based on the Committee's assessment, an Applicant could be rewarded and/or penalized for the actual discounted interest rate they provided during the current academic year.

(5) The extent to which the Applicant timely disburses student loans as evidenced by its use of previous and existing allocations from the Committee for direct lender student loan programs. The Committee will evaluate the impact of unused Bond proceeds on the Applicant's present demand for Allocation.

(b) Subsequent to the determination made pursuant to subdivision (a) of this section, Allocation that remains unallocated will then be considered for Applications in which the Applicant is a purchaser of student loans in the secondary market and evaluated based on the following criteria:

(1) The degree to which financially needy students benefit based on an evaluation of the percentage of borrowers with subsidized Stafford loans currently held in portfolio versus borrowers with only unsubsidized Stafford loans.

(2) The use of recycled funds for additional programs that may benefit students other than loan purchase programs, such as grants, new loans, scholarships, student outreach, and borrower benefit programs offered by the Applicant.

(3) The leveraging of the Qualified Private Activity Bond Allocation awarded to the Applicant through the use of taxable bonds and other taxable securities.

(4) The extent to which the Applicant has timely and effectively used previous and existing allocations from the Committee for secondary market loan purchase programs.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c), 8869.85(a) and 8869.85(b), Government Code.

HISTORY

1. New article 3 (section 5470) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 3 (section 5470) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 3 (section 5470) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Chapter 9. Recovery Zone Economic Development Bond (RZEDB) Program

Article 1. The American Recovery and Reinvestment Act of 2009 (ARRA)

§5480. U.S. Treasury Designated Recovery Zone Bond Allocations.

Note • History

The American Recovery and Reinvestment Act of 2009 (ARRA) assigned U.S. Treasury Designated Recovery Zone Bond Allocations to counties and large municipalities (population of more than 100,000) with a significant decline of employment from 2007 to 2008. Counties and large municipalities that have been excluded by the ARRA are: Alpine, Colusa, Del Norte, Fresno, Imperial, Inyo, Kern, Lassen, Madera, Marin, Mariposa, Merced, Modoc, Monterey, Napa, San Benito, San Diego, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Sierra, Sutter, Tehama, Tulare, Tuolumne, and Yuba. The following cities have been excluded: Bakersfield, Chula Vista, Daly City, Escondido, Fresno, Oceanside, Salinas, San Diego, San Francisco, San Jose, Santa Clara, Sunnyvale, and Visalia.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.82(a)(11)(B) and 8869.84(c), Government Code; and Section 1400U-1, Internal Revenue Code.

HISTORY

1. New chapter 8 (articles 1-4, sections 5480-5510), article 1 (section 5480) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New chapter 8 (articles 1-4, sections 5480-5510), article 1 (section 5480) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New chapter 8 (articles 1-4, sections 5480-5510), article 1 (section 5480) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including new section heading, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

5. Renumbering of former chapter 8 to chapter 9 filed 12-21-2012 as an emergency pursuant to Government Code section 8869.94; operative 12-21-2012 (Register 2012, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-19-2013 or emergency language will be repealed by operation of law on the following day.

Article 2. Application Process for the Recovery Zone Economic Development Bond Reallocation Pool

§5490. Application Process.

Note • History

Allocations for the RZEDB Reallocation Pool shall be considered pursuant to article 4 of chapter 1 and the submission of a complete RZEDB Application.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(b), Government Code.

HISTORY

1. New article 2 (sections 5490-5494) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 2 (sections 5490-5494) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 2 (sections 5490-5494) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including new section heading, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5491. Minimum Threshold Requirements.

Note • History

Applications for the RZEDB Reallocation Pool will be subject to the following criteria:

(a) The maximum face amount of Bonds which may be reallocated to a Qualified Recovery Zone Bond Issuer shall not exceed ten million dollars ($10,000,000) per Project. In the event the Allocation Round is undersubscribed, the Executive Director may recommend that an exception be granted to the maximum reallocation limit.

(b) One-hundred percent (100%) of the available Project proceeds (i.e. sale proceeds, less cost of issuance not to exceed 2%, plus investment earnings), less the amount funding a reasonable reserve fund, must be used for one or more of the following qualified economic development activities:

(1) Capital expenditures paid with respect to property located in such zone;

(2) Expenditures for public infrastructure and construction of public facilities; and/or

(3) Expenditures for job training and education programs.

(c) A legal memo from bond counsel which states that, based on a preliminary review, the proposed Project qualifies for Recovery Zone Economic Development Bonds under the American Recovery and Reinvestment Act of 2009 and federal tax law. Counsel must cite relevant federal tax code in their memo.

(d) The Qualified Recovery Zone Bond Issuer may request, in writing, an increase to the award of reallocation not to exceed ten percent of the original reallocation award. The increase will be at the discretion of the Executive Director. The total amount of the increase will be based on the availability of Allocation and Project need.

(e) The Committee may grant an extension of the expiration date of the reallocation of up to thirty (30) calendar days but in no event shall said extension be beyond December 31, 2010. The Committee may delegate its authority to grant extensions to the Executive Director.

(f) A county or large municipality that is only requesting all or a portion of reallocation that was voluntarily waived need only provide a written request and documentation that the Project is ready to issue Recovery Zone Economic Development Bonds prior to the expiration date of December 31, 2010.

(g) Counties and large municipalities assigned a Recovery Zone Economic Development Bond allocation must designate the area that Bonds will be utilized in a Recovery Zone and shall include the basis for the designation per 26 U.S.C. section 1400U-1(b). The maximum face amount of Bonds which may be designated by an Issuer shall not exceed the amount of the recovery zone economic development Bond limitation awarded to such Issuer under 26 U.S.C. section 1400U-1.

(h) The proposed use of Bond proceeds must meet the following requirements per 26 U.S.C. section 1400U-2(b)(1):

(1) One-hundred (100%) percent of the available Project proceeds (i.e. sale proceeds, less cost of issuance not to exceed 2%, plus investment earnings), less the amount funding a reasonable reserve fund, must be used for one or more of the following qualified economic development activities;

(2) Capital expenditures paid with respect to property located within the zone;

(3) Expenditures for public infrastructure and construction of public facilities.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.82(a)(11)(B) and 8869.84(c), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5492. Minimum Application Requirements.

Note • History

Applications for the RZEDB Reallocation Pool are exempted from the performance deposit requirement pursuant to section 5033(b)(1) and are subject to the following additional requirements:

(a) Counties and large municipalities must be in full compliance with all applicable reporting requirements as provided in article 4 of this chapter.

(b) An assignment letter or resolution (if applicable) from the county or large municipality stating that a portion of their direct Recovery Zone Bond allocation has been assigned to the Project seeking reallocation. The letter should include the amount and type of Bonds committed, name of the Project and the name of the department awarding the direct allocation.

(c) A letter of support from the municipality's appropriate governing body or bodies or the elected official's approval of the Project. This requirement will only be required when the Issuer is an entity other than a municipality, such as a county or a conduit Issuer.

(d) A Qualified Recovery Zone Bond Issuer requesting an Allocation for a RZEDB Project must provide documentation of the applicable discretionary use permits and approvals from federal, state or local planning agencies for the proposed Project at the time of Application. Qualified Recovery Zone Bond Issuers are not required to have obtained ministerial approvals at the time of Application.

(e) The county or municipality must designate the area that Bonds will be utilized in as a Recovery Zone, and shall include the basis for the designation per ARRA section 1400U-1(b). This requirement is demonstrated by a resolution approved by the county or municipality.

(f) A request for an award that is Project specific.

(g) An estimate of the job impact that the proposed Project would achieve. This should be done by estimating the number of construction, temporary, and permanent jobs that will be created by funding of the proposed Project. These estimates will be used for reporting purposes only and will not be a factor in the evaluation of the proposed Project.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.82(a)(11)(B), 8869.84(c) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5493. Reallocation Priority System.

Note • History

Upon a determination that an Application has met the requirements set forth in sections 5491 and 5492 above, the following criteria will be used to evaluate, rank and award Allocations from the RZEDB Reallocation Pool:

(a) Tier 1 Projects. Counties or large municipalities (population of more than 100,000) that voluntarily waived their award of allocation by the Department of Treasury in the American Recovery and Reinvestment Act of 2009 will have first priority in the reallocation Application process. As the Committee's first priority (Tier 1 Projects), the counties and large municipalities that waived their designated allocation may request up to their waived amount by providing the following documentation (no Application will be required):

(1) A letter requesting the amount of allocation and a description of the proposed Project.

(2) A resolution adopted by the governing body of the Qualified Recovery Zone Bond Issuer approving the Project, which may take the form of a reimbursement resolution or inducement resolution.

(3) A letter of support or approval from the appropriate governing body or elected official's with jurisdiction over the Project area. This requirement will only be required when the Issuer is an entity other than a municipality, such as a county or a conduit issuer.

(4) A Recovery Zone Designation. The county or municipality must designate the area that Bonds will be utilized in as a Recovery Zone, and shall include the basis for the designation per U.S.C. 26 section 1400-1U(b). This requirement is demonstrated by a resolution approved by the local government requesting an award of Recovery Zone Economic Development Bond allocation.

(5) The Qualified Recovery Zone Bond Issuer must provide a legal memo from bond counsel which states that based on a preliminary review, the proposed Project qualifies for Recovery Zone Economic Development Bonds under the American Recovery and Reinvestment Act of 2009 and federal tax law. Bond counsel will need to cite relevant federal tax code in their memo.

(6) A commitment letter outlining the Bond sale structure pursuant to article 6 of chapter 1 for at least the amount of Bonds requested.

(b) Tier 2 Projects. Counties or large municipalities (population of more than 100,000) which did not receive an award of allocation by the Department of Treasury in the American Recovery and Reinvestment Act of 2009 will have second priority (Tier 2 Projects) in the reallocation Application process. The following counties will have second priority: Alpine, Colusa, Del Norte, Fresno, Imperial, Inyo, Kern, Lassen, Madera, Marin, Mariposa, Merced, Modoc, Monterey, Napa, San Benito, San Diego, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Sierra, Sutter, Tehama, Tulare, Tuolumne, and Yuba. The following cities will have second priority: Bakersfield, Chula Vista, Daly City, Escondido, Fresno, Oceanside, Salinas, San Diego, San Francisco, San Jose, Santa Clara, Sunnyvale and Visalia.

(c) Tier 3 Projects. All other Projects requesting Recovery Zone Economic Development Bonds shall be funded as Tier 3 Projects. Those agencies that fall into the Tier 1 category but request an award of reallocation beyond their waived amount will also fall into this category for their supplemental reallocation request. A complete Application will be required for the supplemental reallocation request.

(d) Projects that fall into the Tier 1 category will be funded prior to all other Projects. Those Projects that fall into the Tier 2 category will be funded based on relative score of the Project's public benefits and prior to the funding of Tier 3 Projects. All Projects that do not fall into Tier 1 and 2 will be considered Tier 3 and will be funded based on score (see evaluation criteria below). If there is an insufficient amount of Recovery Zone Economic Development Bond that have been Deemed Waived to fund all Allocation requests, CDLAC will establish a waiting list for all unfunded Projects that meet the minimum Application requirements. These Projects will be funded as Allocation is received by CDLAC.

(e) Ranking Applications. Where two or more Applications are awarded the same amount of points pursuant to article 3 of this chapter, the Committee will divide the reallocation request by the number of jobs created by the respective Project, and rank the Applications based on the lowest amount of requested reallocation per job(s) created.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.82(a)(11)(B) and 8869.84(c), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5494. Undersubscribed Allocation.

Note • History

If the initial Recovery Zone Economic Development Bonds Allocation Round is undersubscribed, CDLAC will accept Recovery Zone Economic Development Bond Applications for the next scheduled Committee Allocation meeting, allowing for a minimum of thirty (30) days to review the Application.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.82(a)(11)(B) and 8869.84(c), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 3. Specific Evaluation Criteria

§5500. Evaluation Criteria.

Note • History

CDLAC staff will perform all calculations for confirmation of eligibility based on the census tract(s) provided by the Applicant.

(a) Community Economic Need (30 points maximum). Applications will be awarded points for Projects that are located in communities according to the following:

(1) Unemployment Rate (10 points maximum). Based on data from the Employment Development Department, the average unemployment rate for the preceding calendar year of the county sub-area in which the Recovery Zone Economic Development Bond Project is located will be divided by the statewide unemployment rate for the preceding calendar year and multiplied by 100. The following points will be awarded accordingly:

(A) Ten (10) points to a Project located in an area with an unemployment rate that is one hundred seventy-five percent (175%) or more of the statewide average.

(2) Project Area Poverty Rate (10 points maximum). Based on the most recent data from the United States Bureau of the Census, the estimated poverty rate of each federal census tract within a 1-mile radius area of the Project site, including the tract in which the Project is located, will be averaged, divided by the statewide poverty rate and multiplied by one-hundred (100). The following points will be awarded accordingly:

(A) Ten (10) points to a Project located in an area in which the poverty rate is over one hundred twenty-five percent (125%) of the statewide poverty rate.

(B) Five (5) points to a Project located in an area in which the poverty rate is over one hundred ten percent (110%) but not more than one hundred twenty-five percent (125%) of the statewide poverty rate.

(3) Special Designation Area (5 points maximum). Excluding the Recovery Zone designation, points will be awarded provided the following is demonstrated:

(A) Evidence that the Project is located in a Special Designation Area.

(B) A scaled-for distance map that is legible and clearly shows the boundaries of the Special Designation Area and the location of the proposed Project with the area boundaries.

(4) Median Family Income (5 points maximum). Points will be awarded for a Project located in an area with a median family income of less than eighty percent (80%) of the statewide average based on the most recent census data available for cities or Census Designated Places. If no city or Census Designated Place level data is available, or if the Qualified Recovery Zone Bond Issuer chooses to identify a Project benefit area that is smaller than a city or Census Designated Place, such as a census tract or tracts, smaller areas will be used.

(b) Job Creation (15 points maximum).

(1) Applications will be awarded points where the Applicant proposes to create jobs pursuant to the Job Creation definition as provided in section 5000 of chapter 1. The amount of the Allocation requested in the Application will be divided by the amount of Job Creation as proposed by the Recovery Zone Economic Development Bond Project. Points will be awarded as follows:

(A) Fifteen (15) points to Projects creating or retaining one (1) job per $35,000 or less of Allocation.

(B) Ten (10) points to Projects creating or retaining one (1) job per $35,001 to $50,000 of Allocation.

(c) Welfare-to-Work Plan (5 points maximum). Points will be awarded where the Applicant proposes or is participating in a Welfare-to-Work Plan in conjunction with a local governmental agency, educational agency, or non-profit organization. Evidence may include a signed letter or documentation demonstrating a proposed plan has been acknowledged or current participation is occurring that includes, at minimum, the manner and extent of the participation.

(d) Payment of Employee and Dependent Medical, Dental, and Vision Costs (5 points maximum). Applications will be awarded points where the Project Sponsor contributes toward the cost of employee and dependent medical, vision, and dental benefits. Qualified Recovery Zone Bond Issuers must provide a certification letter from each of an Applicant's medical, dental, or vision providers certifying to the Applicant's average contribution per employee toward the provision of these benefits. This average will be computed by dividing the Applicant's total monthly aggregate contribution toward the provision of these benefits by the total number of participating employees. Points will be awarded based on the average dollar amount per participating employee contributed by the Project Sponsor toward the cost of benefits as follows:

(1) Five (5) points will be awarded to Applications that demonstrate that the Applicant will contribute an average of $300 or more per month toward the cost of the medical, dental, or vision benefits for each employee of the Recovery Zone Economic Development Bond Project.

(2) Three (3) points will be awarded to Applications that demonstrate that the Applicant will contribute an average of $200 or more, but less than $300, per month toward the cost of the medical, dental, or vision benefits for each employee of the Recovery Zone Economic Development Bond Project.

(3) One (1) point will be awarded to Applications that demonstrate that the Applicant will contribute an average of $100, but less than $200, per month toward the cost of the medical, dental, or vision benefits for each employee of the Recovery Zone Economic Development Bond Project.

(e) Average Hourly Wage (5 points maximum). Applications will be awarded points based on a comparison of the Project Wage to the most recent Job Wage. The Project Wage will be divided by the Job Wage and multiplied by one-hundred (100). Points will be awarded as follows:

(1) Five (5) points for a Project Wage that is one hundred twenty-five percent (125%) or more of the Job Wage.

(2) Three (3) points for a Project Wage that is one hundred fifteen percent (115%) or more but less than one hundred twenty-five percent (125%) of the Job Wage.

(3) One (1) point for a Project Wage that is one hundred five percent (105%) or more but less than one hundred fifteen percent (115%) of the Job Wage.

(f) Land Use/Energy Efficiency (25 points maximum).

(1) Six (6) points will be awarded to Projects that reuse the following:

(A) Vacant or abandoned buildings; or

(B) Vacant or abandoned land with developed infrastructure (excluding land whose immediate prior use was agricultural, open space or other similar use).

(2) Seven (7) points will be awarded to Applications with Projects located within one-quarter (1/4) mile of a Public Transit Corridor evidenced by a scaled-for-distance map showing the location of the Project is within a one-quarter (1/4) mile radius of a Public Transportation Corridor. In areas where there is no public transportation system, seven (7) points will be awarded to Applications where the Applicant has an adopted transportation system management plan evidenced by a scaled-for-distance map showing the location of the Project is within a one-quarter (1/4) mile radius of the planned Public Transportation Corridor.

(3) Twelve (12) points will be awarded to Projects that 1) utilize designs, materials or techniques to reduce energy usage by at least fifteen percent (15%) or 2) generate at least fifteen percent (15%) of the Project's total usage through Renewable Energy sources. Reduced energy usage shall be compared to the following benchmarks:

(A) For building construction or rehabilitation, the most recently published California Energy Commission Energy Efficiency Standards for Residential and Non-Residential Buildings; and

(B) For equipment to be purchased and installed, the current per energy unit output of equipment currently in use by the Applicant. Evidence should include a utility company letter indicating that energy savings are projected or a written certification from an energy efficiency consultant.

(g) Leverage (15 points maximum). Applications will be awarded points where the Qualified Recovery Zone Bond Issuer demonstrates that the financing of the Project will include Taxable Debt such that it will supplant the use of tax-exempt Bond financing. In addition, the Committee will award points to Applicants that include funds from a direct QECB Allocation or from the QECB Reallocation Pool for the Project. To receive points for utilizing QECBs, the Qualified Recovery Zone Bond Issuer must provide documentation that they have received a direct allocation award from the county or municipality evidenced by a letter or they must be concurrently applying for the CDLAC QECB Reallocation Pool.

(1) Ten (10) points for Projects utilizing Taxable Debt or direct RZEDB Allocation greater than twenty percent (20%) of total Project costs.

(2) Five (5) points for Projects utilizing Taxable Debt or direct RZEDB Allocation greater than ten percent (10%) and up to twenty percent (20%) of total Project costs.

(3) Three (3) points for Projects utilizing Taxable Debt or direct RZEDB Allocation up to ten percent (10%) of total Project costs.

(4) Five (5) bonus points for Projects utilizing Qualified Energy Conservation Bonds in their Project.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.82(a)(11)(B) and 8869.84(c), Government Code.

HISTORY

1. New article 3 (section 5540) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 3 (section 5500) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 3 (section 5500) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

5. Amendment of subsection (a)(3)(A) filed 4-4-2012 as an emergency; operative 4-4-2012 (Register 2012, No. 14). A Certificate of Compliance must be transmitted to OAL by 10-1-2012 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 4-4-2012 order transmitted to OAL 9-6-2012 and filed 9-27-2012 (Register 2012, No. 39).

Article 4. Reporting Requirements

§5510. Reports and Timeframes.

Note • History

(a) CDLAC will require a Report of Action Taken be submitted upon the issuance of bonds not more than three (3) business days following the issuance of RZEDBs. This report shall include the date and amount of the issuance and the designated recovery zone in which proceeds will be used.

(b) Counties and large municipalities receiving designated RZEDB allocations must provide CDLAC with a Plan of Issuance. Counties and large municipalities that do not submit a Plan of Issuance by the deadline set forth by the Committee may automatically have their allocation Deemed Waived and captured by CDLAC for reallocation. If the Plan of Issuance does not support the full amount of the designated allocation, the excess amount may be Deemed Waived.

(c) Counties and large municipalities that have not issued their entire designated allocation by August 15, 2010 award are required to submit the following documentation, no later than August 15, 2010.

(1) A resolution adopted by the governing body of the Qualified Recovery Zone Bond Issuer approving the Project, which may take the form of a reimbursement resolution or an inducement resolution.

(2) A letter of support or approval from the municipality's appropriate governing body or elected officials with jurisdiction over the Project area. This requirement will only be required when the issuer is an entity other than a municipality such as a county or a conduit issuer.

(3) A written memo from bond counsel which states that based on a preliminary review, the proposed Project qualifies for Recovery Zone Economic Development Bonds under the American Recovery and Reinvestment Act of 2009 and federal tax law. Bond counsel will need to cite relevant federal tax code in their memo.

(4) A commitment letter outlining the bond sale structure pursuant to article 6 of chapter 1. If the commitment is less than the anticipated amount of bonds being utilized, the difference will automatically be Deemed Waived.

(d) Counties and large municipalities that have submitted a Plan of Issuance but have not provided the above documentation by the August 15th deadline may have their allocation Deemed Waived.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.82(a)(11)(B), 8869.84(c), 8869.86(c) and 8869.87, Government Code.

HISTORY

1. New article 4 (section 5510) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 4 (section 5510) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 4 (section 5510) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of subsection (a), transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Chapter 10. Recovery Zone Facility Bond (RZFB) Program

Article 1. The American Recovery and Reinvestment Act of 2009 (ARRA)

§5520. U.S. Treasury Designated Recovery Zone Bond Allocations.

Note • History

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.82(a)(11)(B) and 8869.84(c), Government Code.

HISTORY

1. New chapter 9 (articles 1-4, sections 5520-5550), article 1 (section 5520) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New chapter 9 (articles 1-4, sections 5520-5550), article 1 (section 5520) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New chapter 9 (articles 1-4, sections 5520-5550), article 1 (section 5520) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including new section heading, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

5. Renumbering of former chapter 9 to chapter 10 filed 12-21-2012 as an emergency pursuant to Government Code section 8869.94; operative 12-21-2012 (Register 2012, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-19-2013 or emergency language will be repealed by operation of law on the following day.

Article 2. Application Process for the Recovery Zone Facility Bond Reallocation Pool

§5530. Application Process.

Note • History

Allocations for the RZFB Reallocation Pool shall be considered pursuant section to article 4 of chapter 1 and the submission of a complete RZFB Application.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(b), Government Code.

HISTORY

1. New article 2 (sections 5530-5534) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 2 (sections 5530-5534) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 2 (sections 5530-5534) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including new section heading, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5531. Minimum Threshold Requirements in Addition to the Minimum Application Requirements in Section 5033.

Note • History

Applications for the Recovery Zone Facility Reallocation Pool will be subject to the following criteria:

(a) The maximum face amount of Bonds which may be re-allocated to a Qualified Recovery Zone Bond Issuer shall not exceed twenty million dollars ($20,000,000) per Project.

(b) In the event an Allocation Round is undersubscribed, the Executive Director may recommend that an exception be granted to the maximum reallocation limit.

(c) A legal memo from bond counsel which states that based on a preliminary review, the proposed Project qualifies for Recovery Zone Facility Bonds under the American Recovery and Reinvestment Act of 2009 and federal tax law. Bond counsel must cite relevant federal tax code in their memo.

(f) The Qualified Recovery Zone Bond Issuer is required to estimate the job impact that the proposed Project would achieve. This should be done by estimating the number of construction, temporary, and permanent jobs that will be created by funding the Qualified Business Project. These estimates will be used for reporting purposes only and will not be a factor in the evaluation of the proposed Project.

(g) A county or large municipality that is only requesting all or a portion of reallocation that was voluntarily waived need only provide a written request and documentation that the Project is ready to issue the Recovery Zone Facility Bonds prior to the expiration date of December 31, 2010.

(h) Counties and large municipalities assigned a Recovery Zone Facility Bond allocation must designate the area that Bonds will be utilized in, as a Recovery Zone and shall include the basis for the designation per ARRA section 1400U-1(b).

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.82(a)(11)(B) and 8869.84(c), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5532. Minimum Application Requirements.

Note • History

Applications for the RZFB Reallocation Pool are required to submit the minimum requirements as provided in section 5033(b) in addition to the following requirements:

(a) Counties and large municipalities must be in full compliance with all applicable reporting requirements as provided in article 4 of this chapter.

(b) An assignment letter or resolution (if applicable) from the county or large municipality stating that a portion of their Recovery Zone Bond allocation has been assigned to the Project seeking supplemental allocation. The letter should include the amount and type of Bonds committed, the name of the Project, and the name of the department awarding Allocation.

(c) A letter of support from the municipality's appropriate governing body or bodies or the elected official's approval of the Project. This requirement will only be required when the issuer is an entity other than a municipality, such as the county or a conduit issuer.

(d) A Qualified Recovery Zone Bond Issuer requesting an Allocation for a RZFB Project must provide documentation of the applicable discretionary use permits and approvals from federal, state or local planning agencies for the proposed Project at the time of Application. Qualified Recovery Zone Bond Issuers are not required to have obtained ministerial approvals at the time of Application.

(e) The county or municipality must designate the area that Bonds will be utilized in, as a Recovery Zone, and shall include the basis for the designation per ARRA section 1400U-1(b). This requirement is demonstrated by a resolution approved by the county or municipality.

(f) A request for an award that is Project specific.

(g) Adopted TEFRA Resolution.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.82(a)(11)(B), 8869.84(c) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5533. Reallocation Priority System.

Note • History

Upon a determination that an Application has met the requirements set forth in section 5531 and 5532 above, the following criteria will be used to evaluate, rank and award Allocations from the RZFB Reallocation Pool.

(a) Tier 1 Projects. Counties or large municipalities (population of more than 100,000) that voluntarily waived their award of allocation by the Department of Treasury in the American Recovery and Reinvestment Act of 2009 will have first priority in the reallocation Application process. As the committee's first priority (Tier 1 Projects), the counties and large municipalities that waived their designated allocation may request up to their waived amount by providing the following documentation (no Application will be required):

(1) A letter requesting the amount of allocation and a description of the proposed Project.

(2) A resolution adopted by the governing body of the Qualified Recovery Zone Bond Issuer approving the Project, which may take the form of a reimbursement resolution or an inducement resolution.

(3) A letter of support or approval of the Project from the municipality's appropriate governing body or bodies or elected official. This requirement will only be required when the Issuer is an entity other than the municipality, such as the county or a conduit issuer.

(4) A Recovery Zone designation. The county or large municipality must designate the area that Bonds will be utilized in, as a Recovery Zone, and shall include the basis for the designation per ARRA section 1400U-1(b). This requirement is demonstrated by a resolution approved by the applicable county or large municipality.

(5) A legal memo from bond counsel which states that based on a preliminary review, the proposed Project qualifies for Recovery Zone Facility Bonds under the American Recovery and Reinvestment Act of 2009 and federal tax law. Bond counsel must cite relevant federal tax code in their memo.

(6) A commitment letter outlining the bond sale structure pursuant to article 6 of chapter 1 for at least the amount of bonds requested.

(b) Tier 2 Projects. Counties or large municipalities (population of more than 100,000) which did not receive an award of allocation by the Department of Treasury in the American Recovery and Reinvestment Act of 2009 will have second priority (Tier 2 Projects) in the reallocation Application process. The following counties will have second priority: Alpine, Colusa, Del Norte, Fresno, Imperial Inyo, Kern, Lassen, Madera, Marin, Mariposa, Merced, Modoc, Monterey, Napa, San Benito, San Diego, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Sierra, Sutter, Tehama, Tulare, Tuolumne, and Yuba. The following cities will have second priority: Bakersfield, Chula Vista, Daly City, Escondido, Fresno, Oceanside, Salinas, San Diego, San Francisco, San Jose, Santa Clara, Sunnyvale and Visalia.

(c) Tier 3 Projects. All other Projects requesting Recovery Zone Facility Bonds are funded as Tier 3 Projects. Those agencies that fall into the Tier 1 category but request an award of reallocation beyond their waived amount will also fall into this category for their supplemental reallocation request. A complete Application will be required for the supplemental reallocation request.

(d) Projects that fall into the Tier 1 category will be funded prior to all other Projects. Those Projects that fall into the Tier 2 category will be funded based on relative score of the Project's public benefits and prior to the funding of Tier 3 Projects. All Projects that do not fall into Tier 1 and 2 will be considered Tier 3 and will be funded based on score (see evaluation criteria below). If there is an insufficient amount of Recovery Zone Facility Bonds Deemed Waived to fund all Allocation requests, CDLAC will establish a waiting list for all unfunded Projects that meet the minimum Application requirements. These Projects will be funded as Allocation is received by CDLAC.

(e) Ranking Applications. Where two or more Applications are awarded the same amount of points pursuant to article 3 of this chapter the Committee will divide the reallocation request by the number of jobs created by the respective Project, and rank the Applications based on the lowest amount of requested reallocation per job(s) created.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.82(a)(11)(B) and 8869.84(c), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5534. Undersubscribed Allocation.

Note • History

If the initial RZFB Allocation Round is undersubscribed, CDLAC will accept Applications for the next scheduled committee Allocation meeting, allowing for a minimum of thirty (30) days to review the RZFB Application.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.82(a)(11)(B) and 8869.84(c), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including new section heading, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 3. Specific Evaluation Criteria.

§5540. Evaluation Criteria.

Note • History

CDLAC staff will perform all calculations for confirmation of eligibility based on the census tract(s) provided by the applicant.

(a) Community Economic Need (25 points maximum). Applications will be awarded points for Projects that are located in communities according to the following:

(1) Unemployment Rate (10 points maximum). Based on data from the Employment Development Department, the average unemployment rate for the preceding calendar year of the county sub-area in which the Recovery Zone Facility Bond Project is located will be divided by the statewide unemployment rate for the preceding calendar year and multiplied by 100. The following points will be awarded accordingly:

(A) Ten (10) points to a Project located in an area with an unemployment rate that is one hundred seventy-five percent (175%) or more of the statewide average.

(2) Project Area Poverty Rate (5 points maximum). Based on the most recent data from the United States Bureau of the Census, the estimated poverty rate of each federal census tract within a 1-mile radius area of the Project site, including the tract in which the Project is located, will be averaged, divided by the statewide poverty rate and multiplied by one-hundred (100). The following points will be awarded accordingly:

(A) Five (5) points to a Project located in an area in which the poverty rate is over one hundred twenty-five percent (125%) of the statewide poverty rate.

(B) Three (3) points to a Project located in an area in which the poverty rate is over one hundred ten percent (110%) but not more than one hundred twenty-five percent (125%) of the statewide poverty rate.

(3) Special Designation Area (5 points maximum). Excluding the Recovery Zone Area designation, points will be awarded provided the following is demonstrated:

(A) Evidence that the Project is located in a Special Designation Area.

(B) A scaled-for distance map that is legible and clearly shows the boundaries of the Special Designation Area and the location of the proposed Project with the area boundaries.

(4) Median Family Income (5 points maximum). Points will be awarded for a Project located in an area with a median family income of less than eighty percent (80%) of the statewide average based on the most recent census data available for cities or Census Designated Places. (If no city or Census Designated Place level data is available, or if the Qualified Recovery Zone Bond Issuer chooses to identify a Project benefit area that is smaller than a city or Census Designated Place, such as census tract or tracts, smaller areas will be used.)

(b) Job Creation (25 points maximum).

(1) Applications will be awarded points where the Applicant proposes to create jobs pursuant to the Job Creation definition as provided in section 5000 of chapter 1. The amount of the Allocation requested in the Application will be divided by the amount of Job Created proposed by the Recovery Zone Facility Bond Project and verified by the appropriate city or county official. Points will be awarded as follows:

(A) Twenty-five (25) points to Projects creating one (1) job per $35,000 or less of Allocation.

(B) Fifteen (15) points to Projects creating one (1) job per $35,001 to $50,000 of Allocation.

(c) Welfare-to-Work Plan (5 points maximum). Points will be awarded where the Qualified Business proposes or is participating in a Welfare-to-Work Plan in conjunction with a local governmental agency, educational agency, or non-profit organization. Evidence may include a signed letter or documentation demonstrating a proposed plan has been acknowledged or current participation is occurring that includes, at minimum, the manner and extent of the participation.

(d) Payment of Employee and Dependent Medical, Dental, and Vision Costs (5 points maximum). Applications will be awarded points where the Project Sponsor contributes toward the cost of employee and dependent medical, dental, and vision benefits. Applicants must provide evidence of the amount paid to each medical, dental and vision provider and the amount of employee contribution toward the provision of these benefits. Points will be awarded based on the average dollar amount per participating employee contributed by the Project Sponsor toward the cost of benefits as follows:

(1) Five (5) points will be awarded to Applications that demonstrate that the Qualified Business will contribute an average of $300 or more per month toward the cost of the medical, dental, or vision benefits for each employee of the Recovery Zone Facility Bond Project.

(2) Three (3) points will be awarded to Applications that demonstrate that the Qualified Business will contribute an average of $200 or more, but less than $300, per month toward the cost of the medical, dental, or vision benefits for each employee of the Recovery Zone Facility Bond Project.

(3) One (1) point will be awarded to Applications that demonstrate that the Qualified Business will contribute an average of $100, but less than $200, per month toward the cost of the medical, dental, or vision benefits for each employee of the Recovery Zone Facility Bond Project.

(e) Average Hourly Wage (5 points maximum). Applications will be awarded up to five (5) points based on a comparison of the Project Wage to the Job Wage. The Project Wage will be divided by the Job Wage and multiplied by (100). Points will be awarded as follows:

(1) Five (5) points for a Project Wage that is one hundred twenty-five percent (125%) or more of the Job Wage;

(2) Three (3) points for a Project Wage that is one hundred fifteen percent (115%) or more but less than one hundred twenty-five percent (125%) of the Job Wage;

(3) One (1) point for a Project Wage that is one hundred five percent (105%) or more but less than one hundred fifteen percent (115%) of the Job Wage.

(f) Land Use/Energy Efficiency (20 points maximum)

(1) Six (6) points will be awarded to Projects that reuse the following:

(A) Vacant or abandoned buildings; or

(B) Vacant or abandoned land with developed infrastructure (excluding land whose immediate prior use was agricultural, open space, or other similar use).

(3) Seven (7) points will be awarded to Projects that 1) utilize designs, materials or techniques to reduce energy usage by at least fifteen percent (15%) or 2) generate at least fifteen percent (15%) of the Project's total usage through renewable energy sources. Reduced energy usage shall be compared to the following benchmarks:

(A) For building construction or rehabilitation, the most recently published California Energy Commission Energy Efficiency Standards for Non-Residential Buildings; and

(B) For equipment to be purchased and installed, the current per energy unit output of equipment currently in use by the Qualified Business. Evidence should include a utility company letter indicating that energy savings are projected or a written certification from an energy efficiency consultant.

(g) Leverage (15 points maximum). Applications will be awarded where the Qualified Recovery Zone Bond Issuer demonstrates that the financing of the Project will include Taxable Debt such that it will supplant the use of tax-exempt Bond financing. In addition, the Committee will award points to Applicants that include funds from a direct QECB Allocation or from the QECB Reallocation Pool for the Project. To receive points for utilizing QECBs, the Qualified Recovery Zone Bond Issuer must provide documentation that they have received a direct allocation award from the county or municipality evidenced by a letter or they must be concurrently applying for the CDLAC QECB Reallocation Pool.

(1) Ten (10) points for Projects utilizing Taxable Debt, direct RZFB Allocation, or other tax-exempt debt greater than twenty percent (20%) of total Project costs.

(2) Five (5) points for Projects utilizing Taxable Debt, direct RZFB Allocation, or other tax-exempt greater than ten percent (10%) and up to twenty percent (20%) of total Project costs.

(3) Three (3) point for Projects utilizing Taxable Debt, direct RZFB Allocation, or other tax-exempt debt of up to ten percent (10%) of total Project costs.

(4) Five (5) bonus points for Projects utilizing Qualified Energy Conservation Bonds in their Project.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.82(a)(11)(B) and 8869.84(c), Government Code.

HISTORY

2. New article 3 (section 5540) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 3 (section 5540) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

6. Certificate of Compliance as to 4-4-2012 order transmitted to OAL 9-6-2012 and filed 9-27-2012 (Register 2012, No. 39).

Article 4. Reporting Requirements

§5550. Reports and Timeframes.

Note • History

(a) CDLAC will require a Report of Action Taken be submitted upon the issuance of Bonds not more than three (3) business days following the issuance of RZFBs. This report should include the date and amount of the issuance and the designated recovery zone in which proceeds will be used.

(b) Counties and large municipalities receiving designated RZFB allocations must provide CDLAC with a Plan of Issuance. Counties and large municipalities that do not submit a Plan of Issuance by the deadline set forth by the Committee may automatically have their allocation Deemed Waived and captured by CDLAC for reallocation. If the Plan of Issuance does not support the full amount of the designated allocation, the excess amount may be Deemed Waived.

(1) A resolution adopted by the governing body of the Qualified Recovery Zone Bond Issuer approving the Project, which may take the form of a reimbursement resolution or an inducement resolution.

(2) A resolution adopted by the governing body of the jurisdiction in which the proposed Project will be located, documenting the public approval process as required by 26 U.S.C. section 147(f) (TEFRA).

(3) A letter of support or approval from the municipality's appropriate governing body or elected officials with jurisdiction over the Project area. This requirement will only be required when the issuer is an entity other than a municipality such as a county or a conduit issuer.

(4) A legal memo from bond counsel which states that based on a preliminary review, the proposed Project qualifies for Recovery Zone Facility Bonds under the American Recovery and Reinvestment Act of 2009 and federal tax law. Bond counsel will need to cite relevant federal tax code in their memo.

(5) A commitment letter outlining the Bond sale structure pursuant to article 6 of chapter 1 for the Bonds being utilized. If the commitment is less than the anticipated amount of Bonds being utilized, the difference will automatically be Deemed Waived.

(d) Counties and large municipalities that have submitted a Plan of Issuance but have not provided the above documentation by the August 15th deadline may have their allocation Deemed Waived.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.82(a)(11)(B), 8869.84(c), 8869.86(c) and 8869.87, Government Code.

HISTORY

1. New article 4 (section 5550) and section filed 7-12-2010 as an emergency pursuant to Government Code section 8869.94; operative 7-12-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-10-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 4 (section 5550) and section refiled 1-6-2011 as an emergency pursuant to Government Code section 8869.94; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 4 (section 5550) and section refiled 4-1-2011 as an emergency pursuant to Government Code section 8869.94; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including new section heading and amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Chapter 11. Qualified Energy Conservation Bond Program

Article 1. Definitions

§5560. Definitions.

Note • History

In addition to the definitions set forth in Government Code section 8869.82 and unless otherwise required by the context, the following terms as used in this chapter are defined as follows:

“Carbon Footprint” means for the purposes of the Qualified Energy Conservation Bond Program, the measure of Greenhouse Gas Emissions.

“Demonstration Project” means a Project that satisfies the requirements of 26 U.S.C. section 54D(f)(a)(C).

“Designated Allocation” means Allocation received directly from the federal government pursuant to the American Recovery and Reinvestment Act of 2009.

“Energy Efficient Publicly Owned Buildings” means a publicly owned building that has incurred capital expenditures for the purpose of reducing energy consumption by at least twenty (20) percent pursuant to 26 U.S.C. section 54D(f)(1)(A)(i).

“Green Community Program” means a program that meets the following two requirements: (1) a program that promotes one more of the purposes of energy conservation, one or more of the purposes of energy conservation, energy efficiency, or environmental conservation initiatives relating to energy consumption, broadly construed. Eligible program purposes include, among others, promotion of energy savings through retrofitting initiatives for heating, cooling, lighting, water-saving, storm-water reducing, or other efficiency measures; distributed generation initiatives; or transportation initiatives that conserve energy and/or support alternative fuel infrastructure (which may include, for example, improvements to public bicycle paths or mass transit systems) (2) A green community program must: (i) involve property that is available for general public use (using standards similar to standards for distinguishing general public use from private business use under §1.141-3(c)); or (ii) involve a loan (or other repayment mechanism) or grant program that is broadly available to members of the general public, including individuals or businesses. A green community program need not affect the entire geographical area or all the residents and businesses within the jurisdiction of the State or local governmental unit that implements the program, provided that the program broadly benefits the general public, residents, or businesses in the affected area of the State or local governmental unit. Examples of programs that are available for general public use include programs to make improvements to public infrastructure that enhances proximity and connectivity between community assets and public transit in order to reduce motor vehicle use and promote energy conservation. An example of a loan or grant program that is broadly available to the general public would be a program for residential housing or private building energy efficiency initiatives that provides grants or loans that are broadly available for homeowners or businesses.

“Large Local Government” means for the purposes of the Qualified Energy Conservation Bond Program, a county or municipality with a population of 100,000 or more as defined in section 54D(e)(2)(C) of the Internal Revenue Code, or an Indian tribal government as defined in section 54D(h) of the Internal Revenue Code.

“Mass Commuting Facility and/or Related Facility” means a facility satisfying the requirements of 26 U.S.C section 54D(f)(1)(C) that reduce the consumption of energy to reduce pollution from vehicles used for mass commuting.

“Public Education Campaign” means a campaign to promote energy efficiency pursuant to 26 U.S.C. section 54D(f)(1)(E).

“QECB Application” means the Application titled “Application for American Recovery and Reinvestment Act (ARRA) Qualified Energy Conservation Bonds (QECB)” (revised 1-11-11), which is hereby incorporated by reference.

“Qualified Conservation Purposes” means for the purposes of the Qualified Energy Conservation Bond Program, means conservation purposes that are permitted pursuant to 26 U.S.C. section 54D(f).

“Qualified Energy Conservation Bond Governmental Minimum Usage” means any Qualified Energy Conservation Bond allocation to the state shall be allocated in turn by the state to issuers within the state in a manner that results in the use of not less than seventy (70%) percent of the allocation to such Issuers to designate Bonds that are not private activity Bonds as stated in section 54D(e)(3) of the Internal Revenue Code.

“Qualified Energy Conservation Bond Private Activity Maximum Usage” means that no more than 30 percent of the Qualified Energy Bond allocation to the state that is allocated to Issuers within the state may be used to issue private activity Bonds.

“Qualified Facility Project” means a facility satisfying the requirements of 26 U.S.C. section 45(d) without regards to paragraphs (8) and (10) thereof and without regard to any placed in service date.

“Rural Development Electricity from Renewable Resources” means rural development involving the production of electricity from Renewable Energy resources pursuant to 26 U.S.C. section 54D(f)(1)(A)(3).

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Section 8869.84(c), Government Code.

HISTORY

1. New chapter 10 (articles 1-4, sections 5560-5590), article 1 (section 5560) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New chapter 10 (articles 1-4, sections 5560-5590), article 1 (section 5560) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New chapter 10 (articles 1-4, sections 5560-5590), article 1 (section 5560) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

5. New definition of “Green Community Program” and amendment of definition of “Qualified Energy Conservation Bond Governmental Minimum Usage” filed 8-1-2012 as an emergency; operative 8-1-2012 (Register 2012, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-28-2013 or emergency language will be repealed by operation of law on the following day.

6. Renumbering of former chapter 10 to chapter 11 filed 12-21-2012 as an emergency pursuant to Government Code section 8869.94; operative 12-21-2012 (Register 2012, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-19-2013 or emergency language will be repealed by operation of law on the following day.

7. New definition of “Green Community Program” and amendment of definition of “Qualified Energy Conservation Bond Governmental Minimum Usage” refiled 1-24-2013 as an emergency; operative 1-24-2013 (Register 2013, No. 4). A Certificate of Compliance must be transmitted to OAL by 4-24-2013 or emergency language will be repealed by operation of law on the following day.

Article 2. Eligibility Requirements

§5570. Application Process.

Note • History

Allocations for the Qualified Energy Conservation Bond Reallocation Pool shall be considered pursuant to article 4 of chapter 1 and the submission of a complete QECB Application.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(b), Government Code.

HISTORY

1. New article 2 (sections 5570-5573) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 2 (sections 5570-5573) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 2 (sections 5570-5573) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5571. Minimum Requirements.

Note • History

Applications for the Qualified Energy Conservation Bond Reallocation Pool will be subject to the following criteria:

(a) The Applicant must be an Eligible QECB Reallocation Applicant as defined in section 5000 chapter 1.

(b) The Issuer must be an Eligible QECB Reallocation Issuer as defined in section 5000 in chapter 1.

(c) The Project Sponsor and/or Eligible QECB Reallocation Applicant must provide a description of the proposed use of the Bond proceeds with a description of the Project.

(d) The issuer must describe the financing plan, including whether the Bonds will be issued as a public offering or a private placement.

(e) One hundred (100%) percent of proceeds are to be used for a “qualified conservation purpose” pursuant to 26 U.S.C. section 54(D)(f).

(f) The Applicant must provide the following readiness information as applicable:

(1) Estimated date of issuance;

(2) The estimated beginning date and ending date of Project construction;

(3) The estimated funding of grants for research and research facilities;

(4) The estimated beginning of public education campaigns;

(5) The estimated implementation of demonstration Projects;

(6) The estimated date that site control will be established.

(g) Applications where the Applicant represents a Project Sponsor shall include evidence that all required public entitlements have been acquired.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5572. Reallocation of Waived Allocation.

Note • History

(a) Designated Allocation waived by a county or municipality, or Deemed Waived, shall be re-allocated by CDLAC to individual qualifying Projects on a competitive basis. As the Committee's first priority, Large Local Governments that waived their Designated Allocation may request up to their waived amount by providing the following documentation (a formal Application will not be required):

(1) A letter requesting the amount of allocation and a description of the proposed Project

(2) A resolution that the Issuer has approved the Project, which may take the form of a reimbursement resolution or an inducement resolution;

(3) For Qualified Private Activity Bonds, documentation of the appropriate governing body's or bodies or elected official's approval of the Project;

(4) A legal memo from bond counsel which states that based on a preliminary review, the proposed Project or program qualifies for Qualified Energy Conservation Bonds under the American Recovery and Reinvestment Act of 2009 and federal tax law. Bond counsel will need to cite relevant federal tax code in their memo;

(5) A commitment letter satisfying the requirements as provided in article 6 of chapter 1.

(b) Large Local Government Applicants seeking an Allocation amount above their initial Allocation award or any other non-priority Eligible QECB Reallocation Applicant will have their Applications scored pursuant to section 5580. All estimates of Project performance as it relates to points must be supported by documentation from a qualified third party or a qualified “in-house” professional. In addition, individual Applications may only apply to one pool.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

§5573. Review of New Technologies.

Note • History

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(b), Government Code.

HISTORY

4. Certificate of Compliance as to 4-1-2011 order transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Article 3. Evaluation Criteria

§5580. Evaluation Criteria.

Note • History

Upon a determination that an Application has met the minimum requirements set forth in article 2 of this chapter, Applications will be evaluated with the following criteria. All estimates of Project performance as it relates to points must be supported by documentation from a qualified third party or a qualified “in-house” professional.

(a) Capital Expenditures Pool

(1) Qualified Facilities (Private Activity Use and Governmental Use) (10 point maximum).

Qualified Facility Projects must be in compliance with the renewable portfolio standard eligibility requirements of the California Energy Commission.

(A) Ten (10) points will be awarded to the wind facility, closed-loop or open-loop biomass facility, geothermal or solar energy facility, small irrigation power facility, landfill gas facility, trash combustion facility or qualified hydropower facility that produces the highest amount of kilowatt hours of electricity. (First place)

(B) Five (5) points will be awarded to the wind facility, closed-loop or open-loop biomass facility, geothermal or solar energy facility, small irrigation power facility, landfill gas facility, trash combustion facility or qualified hydropower facility that produces the second highest amount of kilowatt hours of electricity. (Second place)

(C) Two (2) points will be awarded to the wind facility, closed-loop or open-loop biomass facility, geothermal or solar energy facility, small irrigation power facility, landfill gas facility, trash combustion facility or qualified hydropower facility that produces the third highest amount of kilowatt hours of electricity. (Third place)

(D) No points will be awarded to the Project that produces the lowest amount of kilowatt hours of electricity.

(E) Qualified Facility Projects that include Energy Efficient Publicly Owned Buildings may apply for bonus points as provided in subdivision (a)(4) of this section.

(2) Energy Consumption Reduction and Pollution Reduction of Mass Commuting Facilities and Related Facilities (Private Activity Use and Governmental Use) (12 point maximum).

(A) Twelve (12) points will be awarded to the Mass Commuting Facility and/or Related Facility that will result in the lowest amount of energy consumption and/or highest amount of pollution reduction. (First place)

(B) Eight (8) points will be awarded to the Mass Commuting Facility and/or Related Facility that will result in the second lowest amount of energy consumption and/or second highest amount of pollution reduction. (Second place)

(C) Four (4) points will be awarded to the Mass Commuting Facility and/or Related Facility that will result in the third lowest amount of energy consumption and/or third highest amount of pollution reduction. (Third place)

(D) No points will be awarded to the Mass Commuting Facility and/or Related Facility that will result in a highest energy consumption and/or lowest pollution production.

(E) Mass Community Facility and/or Related Facility Projects that include Energy Efficient Publicly Owned Buildings may apply for bonus points as provided in subdivision (a)(4) of this section.

(3) Rural Development Electricity from Renewable Resources (Private Activity Use and Governmental Use) (12 point maximum).

(A) Twelve (12) points will be awarded to the rural Project that will produce the highest amount of kilowatt hours of electricity from renewable resources. (First place)

(B) Eight (8) points will be awarded to the Project that will produce the second highest amount of kilowatt hours of electricity from renewable resources. (Second place)

(C) Four (4) points will be awarded to the Project that will produce the third highest amount of kilowatt hours of electricity from renewable resources. (Third place)

(D) No points will be awarded to the Project that produces the lowest amount of kilowatt hours of electricity.

(E) Elective: Two (2) additional points will be awarded to a rural Project that delivers electricity to a population of 10,000 (or more) that are not on the electricity grid at the time of Application.

(F) Projects that include Energy Efficient Publicly Owned Buildings may apply for additional bonus points as provided in subdivision (a)(4) of this section.

(4) Energy Efficient Publicly Owned Buildings (Governmental Use Only) (10 point maximum). One (1) point will be awarded to Projects for every percentage point beyond the minimum required (20%) that energy consumption is reduced in a publicly owned building. This information must be certified by a licensed mechanical engineer or architect.

(b) Energy Program Pool.

(1) Effectiveness of Research Investments (10 point maximum)

(A) Ten (10) points will be awarded to the research that will result in technology with the lowest Carbon Footprint in terms of greenhouse gas emissions. (First place)

(B) Five (5) points will be awarded to the research that will result in technology with the second lowest Carbon Footprint. (Second place)

(C) Two (2) points will be awarded to the research that will result in technology with the third lowest Carbon Footprint. (Third place)

(D) No points will be awarded to the research that will result in technology with the highest Carbon Footprint.

(2) Demonstration Projects (10 point maximum).

The criteria used to evaluate the approach of the Demonstration Project will include, but will not be limited to the following: the size, experience and capacity of the demonstration client base, the verification of the practicality and marketability of the demonstrated technology by a third party, and the overall degree of environmental benefit of the demonstrated technology. Overall degree of environmental benefit of the technology will be measured by reductions in energy consumption measured in kWh saved and/or the amount of greenhouse gas emissions measured in MMTCO2e (million metric tons of CO2 equivalent). Applicants will be required to document their previous success with the introduction, marketing and production of a new technology.

(A) Ten (10) points will be awarded to the Demonstration Project that has the most comprehensive and impactful approach to the commercialization of green technologies. (First place)

(B) Five (5) points will be awarded to the Demonstration Project that has the second most comprehensive and impactful approach to the commercialization of green technologies. (Second place)

(C) Two (2) points will be awarded to the Demonstration Project that has the third most comprehensive and impactful approach to the commercialization of green technologies. (Third place)

(D) No points will be awarded to the Demonstration Project that has the least comprehensive and impactful approach to the commercialization of green technologies.

(3) Public Education Campaign (10 point maximum)

The following criteria will be used to evaluate a Campaign's approach: number and size of target groups willing to host or facilitate public education activities (authenticated by target groups); potential diffusion of potential public education activities in the energy community; dollars of allocation per activity.

(A) Ten (10) points will be awarded to the Public Education Campaign with the most comprehensive approach to increasing public awareness of energy efficient technologies or energy conservation funding sources. (First place)

(B) Five (5) points will be awarded to the Public Education Campaign with the second most comprehensive approach to increasing public awareness of energy efficient technologies or energy conservation funding sources. (Second place)

(C) Two (2) points will be awarded to the Public Education Campaign with the third most comprehensive approach to increasing public awareness of energy efficient technologies or energy conservation funding sources. (Third place)

(D) No points will be awarded to Public Education Campaign with the least comprehensive approach to increasing public awareness of energy efficient technologies or energy conservation funding sources.

(4) Loan / Grant Program Pool (10 point maximum).

(A) Two (2) points will be awarded for every loan that will be funded per $10,000 of allocation used. One (1) point will be awarded for every grant that will be funded per $10,000 of allocation used.

(B) Loans and grants can be used for capital expenditures associated with implementing Green Community Programs, research grants for promoting green technologies demonstration Projects and public education campaigns.

(C) Applicants will be asked to provide the following information: description of what is being funded with the loans and/or grants; capacity of the funding (i.e. the number and size of the loans and/or grants); loan criteria and award process; compliance measures that will be imposed on recipients of loans and/or grants.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(b), Government Code.

HISTORY

1. New article 3 (section 5580) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 3 (section 5580) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 3 (section 5580) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

5. Amendment of subsection (b)(4)(B) filed 8-1-2012 as an emergency; operative 8-1-2012 (Register 2012, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-28-2013 or emergency language will be repealed by operation of law on the following day.

6. Amendment of subsection (b)(4)(B) refiled 1-24-2013 as an emergency; operative 1-24-2013 (Register 2013, No. 4). A Certificate of Compliance must be transmitted to OAL by 4-24-2013 or emergency language will be repealed by operation of law on the following day.

Article 4. Reporting Requirements

§5590. Reports and Timeframes.

Note • History

(a) CDLAC will require the completion of a Report of Action Taken for RZBs or QECBs be submitted no more than three (3) business days following the issuance of QECBs.

(b) Large Local Governments receiving Designated Allocation must provide CDLAC with a Plan of Issuance. Large Local Governments that do not submit a Plan of Issuance by the deadline set forth by the Committee may automatically have their allocation Deemed Waived and captured by CDLAC for reallocation. If the Plan of Issuance does not support the full amount of the designated allocation, the excess amount may be Deemed Waived.

(c) Large Local Governments that have not issued their entire Designated Allocation by August 15, 2010 award are required to submit the following documentation, no later than August 15, 2010.

(1) A resolution of the Issuer approving the Project, which may take the form of a reimbursement resolution and/or inducement resolution.

(2) Documentation of the appropriate governing body's or bodies or elected officials' approval of the Project.

(3) A legal memo from bond counsel which states that based on a preliminary review, the proposed Project or program qualifies for Qualified Energy Conservation Bonds under the American Recovery and Reinvestment Act of 2009 and federal tax law. Bond counsel will need to cite relevant tax code in their memo.

(4) A commitment letter outlining the Bond sale structure pursuant to article 6 of chapter 1. If the commitment is less than the anticipated amount of Bonds being utilized, the difference will automatically be Deemed Waived.

(d) Large Local Governments that have submitted a Plan of Issuance but have not provided the above documentation will be deemed to have automatically waived allocation.

(e) Federal tax law mandates that one-hundred percent (100%) or more of the available Project proceeds be spent for one or more qualified purposes within the three (3) year period beginning on such date of issuance. Hence, CDLAC will require Applicants to provide ongoing documentation evidencing their initial usage of Bond proceeds as detailed in the QECB Reallocation Application.

NOTE

Authority cited: Section 8869.94, Government Code. Reference: Sections 8869.84(c) and 8869.85(b), Government Code.

HISTORY

1. New article 4 (section 5590) and section filed 7-29-2010 as an emergency; operative 7-29-2010 (Register 2010, No. 31). A Certificate of Compliance must be transmitted to OAL by 1-25-2011 or emergency language will be repealed by operation of law on the following day.

2. New article 4 (section 5590) and section refiled 1-6-2011 as an emergency; operative 1-6-2011 (Register 2011, No. 1). A Certificate of Compliance must be transmitted to OAL by 4-6-2011 or emergency language will be repealed by operation of law on the following day.

3. New article 4 (section 5590) and section refiled 4-1-2011 as an emergency; operative 4-6-2011 (Register 2011, No. 13). A Certificate of Compliance must be transmitted to OAL by 7-5-2011 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 4-1-2011 order, including amendment of section heading and section, transmitted to OAL 6-2-2011 and filed 7-1-2011 (Register 2011, No. 26).

Division 10. California Health Facilities Financing Authority

Chapter 1. The Cedillo-Alarcon Community Clinic Investment Act of 2000 [Repealed]

HISTORY

1. New Chapter 10 (Sections 7001-7052, not consecutive) filed 3-14-73; effective thirtieth day thereafter (Register 73, No. 11).

2. Repealer and renumbering and amendment of former Chapter 10 (Sections 7001-7318, not consecutive) to Title 22, Division 7, Chapter 10 (Sections 97003-97216, not consecutive) filed 11-5-85; designated effective 1-1-86 (Register 85, No. 45). For prior history, see Registers 85, No. 19; 84, No. 5; 83, No. 16; 82, Nos. 43, 34, 10; 81, Nos. 35, 29, 20; 79, Nos. 36, 26, 5; 78, Nos. 40, 35, 26, 15, 4; 77, Nos. 43 and 26; 76, Nos. 38 and 16; 75, Nos. 36, 27, 24, 20; 74, Nos. 33 and 21; and 73, No. 11.

3. New division 10, chapter 1 (sections 7000-7017) and section filed 4-12-2001 as an emergency; operative 4-12-2001 (Register 2001, No. 15). Pursuant to section 2, Chapter 801, Statutes of 2000 (AB 2276), a Certificate of Compliance must be transmitted to OAL by 4-8-2002 or emergency language will be repealed by operation of law on the following day.

4. Repealer and new division 10, chapter 1 (sections 7000-7017) and repealer and new section filed 10-9-2001 as an emergency; operative 10-9-2001 (Register 2001, No. 41). Pursuant to section 2, Chapter 801, Statutes of 2000 (AB 2276), a Certificate of Compliance must be transmitted to OAL by 10-4-2002 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 10-9-2001 order, including amendment of definitions of “Act” and “Second Funding Round” and amendment of Note, transmitted to OAL 7-1-2002 and filed 8-13-2002 (Register 2002, No. 33).

6. Repealer of chapter 1 (sections 7000-7017) and section filed 11-28-2005 as an emergency; operative 11-28-2005 (Register 2005, No. 48). A Certificate of Compliance must be transmitted to OAL by 3-28-2006 or emergency language will be repealed by operation of law on the following day.

7. Reinstatement of section as it existed prior to 11-28-2005 emergency repeal by operation of Government Code section 11346.1(f) (Register 2007, No. 11).

8. Repealer of chapter 1 (sections 7000-7017) and section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

Chapter 2. The Children's Hospital Program of 2004

§7030. Definitions.

Note • History

The following words and phrases, as used in this chapter are defined as follows:

(a) “Act” means the Children's Hospital Bond Act of 2004 (Part 6 (commencing with Section 1179.10), Division 1, Health and Safety Code), approved by voters on November 2, 2004.

(b) “Administrative Costs” means actual costs incurred by the Authority and other state agencies as permitted by law for administering the Children's Hospital Program of 2004.

(d) “Application Form” means the written request by an Applicant to the Authority for a Grant under the Children's Hospital Program of 2004 which includes pages 1-9, Attachments A-B and all materials submitted with Form #CHFFA 5, Rev. 01-2009-61, for the First Funding Round. If necessary, the Application Form for the Second Funding Round and requisite regulations shall be developed no later than June 1, 2014.

(e) “Audited Financial Statements” means an examination and report of the financial activities of the Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity, for its fiscal year, performed by an independent accounting firm under generally accepted accounting principles.

In the case of the University of California Children's Hospitals, “Audited Financial Statements” means an examination and report of the financial activities of each individual University of California medical center that includes a University of California Children's Hospital, for its fiscal year, performed by an independent accounting firm under generally accepted accounting principles.

(f) “Authority” means the California Health Facilities Financing Authority.

(g) “Children's Hospital” means either:

(1) A University of California general acute care hospital described as any one of the following:

(A) University of California, Davis Children's Hospital.

(B) Mattel Children's Hospital at University of California, Los Angeles.

(D) University of California, San Francisco Children's Hospital.

(E) University of California, San Diego Children's Hospital.

(2) A general acute care hospital that is, or is an operating entity of, a California nonprofit corporation incorporated prior to January 1, 2003, whose mission of clinical care, teaching, research, and advocacy focuses on children, and that provides comprehensive Pediatric Services to a high volume of children eligible for Government Health Insurance Programs and to children with special health care needs eligible for the California Children's Services program and:

(A) Provided at least 160 licensed beds in the categories of pediatric acute, pediatric intensive care and neonatal intensive care in the fiscal year ending between June 30, 2001, and June 29, 2002, as reported to the Office of Statewide Health Planning and Development (OSHPD) on or before July 1, 2003.

(B) Provided over 30,000 total pediatric patient (census) days, excluding nursery acute days, in the fiscal year ending between June 30, 2001, and June 29, 2002, as reported to OSHPD on or before July 1, 2003.

(C) Provided medical education of at least eight (rounded to the nearest integer) full-time equivalent pediatric or pediatric subspecialty residents in the fiscal year ending between June 30, 2001, and June 29, 2002, as reported to OSHPD on or before July 1, 2003.

(h) “Children's Hospital Program of 2004” means the program resulting from the Act.

(i) “Costs of Issuance” mean the expenses incurred in connection with the sale and issuance of bonds, other short-term debt instruments, or loans approved by the Pooled Money Investment Board that are used to finance or refinance Grants, and accrued interest on any short-term debt instruments or loans which are not paid from another source.

(j) “Executive Director” means the Executive Director of the Authority.

(k) “Expansion of Health Care Access” means providing same services to additional patients or net additional or new Pediatric Services to existing or new patients.

(l) “Final Allocation” means a Grant allocation approved by the Authority.

(m) “First Funding Round” means the period of time prior to June 30, 2014.

(n) “Going Concern Qualification” means a finding by an independent accounting firm that the carrying value of an entity's assets will be realized and its liabilities will be liquidated in the ordinary course of continuing business activity.

(o) “Government Health Insurance Programs” mean governmental assistance programs that include, but are not limited to, Medicaid (Medi-Cal), State Children's Heath Insurance Program (Healthy Families), California Children's Services (CCS), Child Health and Disability Prevention Program (CHDP) and county indigent programs.

(p) “Grant” means the distribution of money in the Children's Hospital Fund, as defined in Section 1179.20 of the Health and Safety Code, by the Authority to a Children's Hospital for a Project pursuant to the Children's Hospital Program of 2004.

(q) “Grant Agreement” means a written agreement for a Grant entered into between a Grantee and the Authority.

(r) “Grantee” means an Applicant that has received Grant approval by the Authority.

(s) “Improvement of Child Health Care” means an improvement in the timeliness, effectiveness, or quality of care provided to the pediatric population.

(t) “Improvement of Health Care Access” means an increase in the quantity and scope of Pediatric Services provided.

(u) “Improvement of Pediatric Patient Outcomes” means an improvement in the overall health of the pediatric patients receiving treatment or care.

(v) “Initial Allocation” means an Authority staff-level decision granting an allocation.

(w) “Maximum Grant for the First Funding Round” means:

(1) A limit of $30 million less Costs of Issuance and Administrative Costs on the total amount of Grants that may be made to any one Children's Hospital that is described in paragraph (1) of subdivision (g).

(2) A limit of $74 million less Costs of Issuance on the total amount of Grants that may be made to any one Children's Hospital that is described in paragraph (2) of subdivision (g).

(x) “Most Recent Audited Financial Statements” means the Audited Financial Statements for the most recent fiscal year for which such financial statements are available.

(y) “Non University of California Children's Hospital” means a Children's Hospital described in paragraph (2) of subdivision (g).

(z) “Pediatric Research Programs” means scientific research focused on the pediatric population to improve and/or better understand this population's health.

(aa) “OSHPD” means the Office of Statewide Health Planning and Development.

(bb) “Pediatric Services” means services provided for children from birth to age 18. Exceptions to the age limit are allowed up to age 21 for children receiving treatment for a California Children's Services eligible condition as described in Sections 41811 through 41876, Title 2, of the California Code of Regulations.

(cc) “Pediatric Teaching Program” means a program that annually provides medical education for at least eight (rounded to the nearest integer) full-time equivalent pediatric or pediatric subspecialty residents.

(dd) “Pooled Money Investment Board” means the Board established pursuant to Section 16480.1 of the Government Code.

(ee) “Project” means constructing, expanding, remodeling, renovating, furnishing, equipping, financing, or refinancing capital assets, as defined in Section 16727(a) of the Government Code, of a Children's Hospital. Pursuant to the Act, this may include reimbursement for the costs of constructing, expanding, remodeling, renovating, furnishing, equipping, financing or refinancing where these costs are incurred after January 31, 2003. “Project” does not include Costs of Issuance for any financing or refinancing of a Project.

(ff) “Project Period” means a defined beginning and end date approved by the Authority for implementation of the Project.

(gg) “Second Funding Round” means the period of time after June 30, 2014, when Grants may be awarded from unexhausted funds made available pursuant to the Program.

(hh) “Total Grant Funds” means $750 million less Administrative Costs and Costs of Issuance.

(ii) “Uncompensated Indigent Care” means care provided without a patient-specific source funding available to pay for the Pediatric Services rendered.

(jj) “Undercompensated Care” means care provided where a financial shortfall exists between gross expenses and the revenues (or payment) in treating a pediatric patient.

(kk) “University of California Children's Hospital” means a Children's Hospital described in paragraph (1) of subdivision (g).

(ll) “Vulnerable Pediatric Populations” means pediatric patients served by Government Health Insurance Programs and pediatric patients with special health care needs irrespective of insurance status.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. Reference: Sections 1179.10, 1179.11, 1179.21, 1179.22, 1179.23, 1179.24, 1179.30, 1179.38 and 1179.39, Health and Safety Code.

HISTORY

1. New chapter 2 (sections 7030-7050) and section filed 2-11-2005 as an emergency; operative 2-11-2005 (Register 2005, No. 6). A Certificate of Compliance must be transmitted to OAL by 6-13-2005 or emergency language will be repealed by operation of law on the following day.

2. New chapter 2 (sections 7030-7050) and section refiled 5-26-2005 as an emergency; operative 5-26-2005 (Register 2005, No. 21). A Certificate of Compliance must be transmitted to OAL by 9-23-2005 or emergency language will be repealed by operation of law on the following day.

3. Certificate of Compliance as to 5-26-2005 order, including amendment of subsection (d), new subsection (aa), subsection relettering and amendment of newly designated subsections (bb) and (ee)-(ff), transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

4. Amendment of chapter 2 heading and amendment of subsections (a)-(d), (h) and (p) filed 10-7-2009; operative 10-7-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 41).

§7031. Eligible Children's Hospital.

Note • History

(a) Any Children's Hospital shall be eligible to apply for one or more Grants if the following conditions are met:

(1) The Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity has a current, valid general acute care hospital license from the Department of Health Services.

(2) The most Recent Audited Financial Statements of the Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity do not contain any Going Concern Qualifications.

(3) The Children's Hospital has submitted to the Authority a completed Application Form.

(4) The Authority, at its discretion, confirms with OSHPD that the non-University of California Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity has submitted to OSHPD its Annual Disclosure Report for the fiscal year ending between June 30, 2001 and June 29, 2002, on or before July 1, 2003.

(5) If the Children's Hospital proposes to use Grant funds for a Project other than equipment acquisition on certain property, the Children's Hospital shall provide evidence that either:

(A) The Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity owns the property.

(B) The Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity is a lessee under a lease agreement that satisfies Section 7047.

(6) If the Children's Hospital proposes to use Grant funds for a Project that includes architect, design, and/or engineering fees, the Children's Hospital shall provide the Authority with reasonable assurance, at the Authority's discretion, that any of these fees are components of a larger Project that will ultimately benefit the health and welfare of California's sick and/or injured children. The Authority shall rely on timelines associated with the entire Project to assess whether or not the Project will benefit pediatric patients.

(7) If the Children's Hospital proposes to use Grant funds for the acquisition of real property, the Children's Hospital shall provide a valid, current, enforceable contingent purchase and sale agreement or option agreement between the Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity and the owner of the subject property, including evidence that all extensions necessary to keep the agreement current through the Final Allocation have been executed, if applicable. In addition, the Children's Hospital shall provide the Authority with reasonable assurance that the acquisition is a component of a larger Project that will ultimately benefit the health and welfare of California's sick and/or injured children, such as the construction of a new facility to benefit pediatric patients.

(b) If an Applicant does not meet the conditions described in (a), the Applicant shall be deemed ineligible, but may reapply at a time when the Applicant is able to meet the conditions.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. Reference: Sections 1179.11, 1179.22 and 1179.24, Health and Safety Code

HISTORY

1. New section filed 2-11-2005 as an emergency; operative 2-11-2005 (Register 2005, No. 6). A Certificate of Compliance must be transmitted to OAL by 6-13-2005 or emergency language will be repealed by operation of law on the following day.

2. New section refiled 5-26-2005 as an emergency; operative 5-26-2005 (Register 2005, No. 21). A Certificate of Compliance must be transmitted to OAL by 9-23-2005 or emergency language will be repealed by operation of law on the following day.

3. Certificate of Compliance as to 5-26-2005 order, including amendment of section, transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

§7032. Maximum Grant, First Funding Round.

Note • History

No Grant or combination of Grants to any Children's Hospital may exceed the Maximum Grant for the First Funding Round.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. Reference: Sections 1179.22, 1179.23 and 1179.24, Health and Safety Code.

HISTORY

3. Certificate of Compliance as to 5-26-2005 order transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

§7033. Maximum Grant, Second Funding Round.

Note • History

If funds are available pursuant to Section 7042, the process for determining Maximum Grants for the Second Funding Round shall be adopted no later than June 1, 2014.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. Reference: Sections 1179.22, 1179.23 and 1179.24, Health and Safety Code.

HISTORY

3. Certificate of Compliance as to 5-26-2005 order, including amendment of section, transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

§7034. Application Form.

Note • History

A blank Application Form shall be available from the Authority and the Authority's website and may be referred to as the Children's Hospital Program of 2004 Grant Application Form #CHFFA 5, Rev. 01-2009-61, which is hereby incorporated by reference. The Applicant shall submit a completed Application Form in the manner set forth in Sections 7035 and 7036. The Children's Hospital Program of 2004 Overview and Instructions for Grant Application, Form #CHFFA 5A, Rev. 01-2009-61 is hereby incorporated by reference.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. Reference: Sections 1179.22, 1179.24 and 1179.25, Health and Safety Code.

HISTORY

3. Certificate of Compliance as to 5-26-2005 order, including amendment of section, transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

4. Amendment filed 10-7-2009; operative 10-7-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 41).

§7035. Application Form Submission.

Note • History

Application Forms shall be submitted in duplicate to the Authority. The Authority shall accept Application Forms for the First Funding Round on an on-going basis until the funding for the Children's Hospital Program of 2004 is exhausted. Each Applicant may apply for more than one Grant for different Projects until its Maximum Grant for the First Funding Round is reached. If necessary, blank application forms for the Second Funding Round shall be available no later than June 1, 2014.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. Reference: Sections 1179.22 and 1179.24, Health and Safety Code.

HISTORY

3. Certificate of Compliance as to 5-26-2005 order, including amendment of section, transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

4. Amendment filed 10-7-2009; operative 10-7-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 41).

§7036. Content of Application Form.

Note • History

The following items shall accompany the Application Form:

(a) Financial Information. The Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity shall submit its Most Recent Audited Financial Statements.

(b) Organization Information.

(1) If the Applicant is a non-University of California Children's Hospital, the Applicant shall submit both of the following:

(A) A copy of the Applicant's 501(c)(3) determination letter from the Internal Revenue Service and a copy of either the tax-exemption letter or Letter of Good Standing from the Franchise Tax Board. For Children's Hospitals that are operating entities of a California nonprofit corporation, the Internal Revenue Service and Franchise Tax Board Letters are required for the parent corporation.

(B) A copy of the Applicant's Articles of Incorporation and Bylaws. For Children's Hospitals that are operating entities of a California nonprofit corporation, the Articles of Incorporation and Bylaws are required for the parent corporation.

(2) For all Applicants, a copy of its current general acute care hospital license from the Department of Health Services or a copy of the general acute care hospital license of the California nonprofit corporation of which the Children's Hospital is an operating entity.

(d) Agreement and Certification. Within the Application Form and as memorialized in a separate Grant Agreement, the Chief Executive Officer, Chief Financial Officer or other authorized officer of the Applicant, on behalf of the Applicant, shall agree and certify to the following terms and conditions as a requirement of receiving any Grant:

(1) The information contained in the Application Form and attachments is true and correct to the best of its knowledge and belief and understands that any misrepresentation may result in the cancellation of a Grant and other actions permitted by law and the Grant Agreement.

(2) Applicant may be required to return all or a portion of the Grant including any unused investment earnings if the Applicant fails to complete the Project as approved. In cases where the Grant will fund architect, design, or engineering fees or land acquisition costs as part of an approved Project, the Applicant may be required to return all Grant funds and any unused investment earnings if the Authority cannot determine that the associated larger Project has been completed, based on timelines provided within the Application Form.

(3) Grant funds will only be used for the Project described in the Application Form unless a change in the Project is approved in writing by the Authority pursuant to Section 7043.

(4) The Project and financial records of the Applicant's Project are subject to audit and inspection by the Authority and the Bureau of State Audits.

(5) Applicant has disclosed all information requested by the legal status questionnaire.

(6) Applicant will notify the Authority in writing at the time of Project completion with evidence of completion included.

(7) Applicant will provide all documents and information required by law and meet all necessary requirements prior to the release of the Grant.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. Reference: Sections 1179.22, 1179.24, 1179.25 and 1179.32, Health and Safety Code.

HISTORY

3. Certificate of Compliance as to 5-26-2005 order, including amendment of section, transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

§7037. Application Form Evaluation.

Note • History

(a) Application Forms shall be reviewed and evaluated within 60 days from receipt by Authority staff according to the evaluation criteria described in Section 7038.

(b) Applications are due the first business day of each month, with the following exceptions:

(1) For October, applications are due on October 7.

(2) Applications are not accepted in November.

(c) A positive response or combination of positive responses to the legal status questionnaire may result in the applicant becoming ineligible for a Grant.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. References: Sections 1179.22 and 1179.24, Health and Safety Code.

HISTORY

3. Certificate of Compliance as to 5-26-2005 order, including repealer of subsections (b)-(b)(4) and new subsection (b), transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

4. New subsections (b)-(b)(2) and subsection relettering filed 10-7-2009; operative 10-7-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 41).

§7038. Evaluation Criteria.

Note • History

Authority staff shall evaluate each Application Form based on the following criteria.

(a) How well the Project contributes to both of the following:

(1) Expansion or Improvement of Health Care Access by children eligible for Governmental Health Insurance Programs and indigent, underserved, and uninsured children.

(2) Improvement of Child Health Care or Improvement of Pediatric Patient Outcomes.

(b) How well the Applicant does any or all of the following:

(1) Provides Uncompensated Indigent Care or Undercompensated Care to eligible pediatric patients.

(2) Provides services to Vulnerable Pediatric Populations.

(3) Promotes Pediatric Teaching Programs or Pediatric Research Programs.

(1) A project timeline that includes the following:

(A) An expected start date (e.g. construction start date(s) and/or equipment purchase date(s)).

(B) An expected completion date (e.g. construction completion date(s), acquisition completion dates, and/or equipment installation date(s)).

(2) Whether the Project is feasible after a review of all of the following:

(A) For all Projects with the exception of equipment acquisition projects, the Applicant shall submit estimates of Project costs and evidence of property ownership or, if the property is leased to a Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity, a copy of a lease agreement that satisfies the requirements of Section 7047. The Applicant shall also provide building permits and/or executed construction, architect, design and engineering contracts, if available. An Applicant with a Project that does not yet have an executed contract or building permit but is actively in the process of obtaining one shall provide a detailed statement that explains the status of obtaining the document.

(B) For Projects that include the acquisition of real property, the Applicant shall submit a copy of an executed purchase and sale agreement or status of obtaining one or other evidence of site control to the satisfaction of the Authority. In addition, if the Grant will be used to pay for real property acquisition costs as part of a larger Project, the Applicant shall provide a timeline that specifies when the entire Project will be complete.

(C) For equipment acquisition projects, the Applicant shall submit a specific list of items and cost estimates of equipment or copies of invoices, and if applicable, cost estimates of installation of such equipment.

(D) If funding sources other than the Grant are required to complete the Project, the Applicant shall provide proof of the funding source, including but not limited to, commitment letters, board approved capital campaign plans, or any other documentation acceptable to the Authority. Such documentation shall be in accordance with the Project timeline and budget.

(3) Whether implementation of the Project is feasible:

(A) The Applicant shall submit a third-party prepared feasibility study, funding letters or other documentation to demonstrate that the Project will generate sufficient revenues to provide on-going support for new or expanded services and/or research programs. If revenues generated by the Project will be insufficient, the Applicant's revenues shall be sufficient, as determined by Authority staff, to provide on-going support.

(B) When applicable, the Applicant shall submit evidence that it is in compliance with the California Environmental Quality Act and all other applicable laws.

(d) The sources and uses of funds:

(1) The Applicant shall detail all sources of funds required to complete the proposed Project. Sources may include, but are not limited to, the total Grant request, borrowed funds, internal assets, and other sources. If the Project, or a portion of the Project, has been or will be submitted to other lenders or grantors for funding, the Applicant shall list them and the status of their consideration.

(2) The Applicant shall detail the uses of all funds required to complete the proposed Project. The total uses shall not exceed the total of all available fund sources. In some instances, funds from sources other than the Grant may be used for portions of a proposed Project that would otherwise be ineligible for this Grant. In those instances, the Applicant shall describe specifically how the Grant funds, as well as other grants, loans, or internal funds, will be used to ensure Grant funds will not subsidize Project elements not eligible for such funds. Where a Project includes elements required to serve non-pediatric populations, the Grant funds shall be limited only to the proportionate cost of providing care to the pediatric population. The Authority shall determine the appropriate manner in which the proportionate share use will be evaluated.

If a proposed Project will benefit both pediatric and non-pediatric patients, the total Grant for that Project cannot exceed the proportionate share use of the pediatric population. For such Projects, the Authority staff shall determine the amount of Grant funds to be awarded based on proportionate use and any other factors related to improvement of pediatric population care.

(e) The financial capacity of the Applicant based upon a review of the Most Recent Audited Financial Statements supplied pursuant to paragraph (2) of subdivision (a) of Section 7031.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. References: Sections 1179.22, 1179.24 and 1179.25, Health and Safety Code.

HISTORY

3. Certificate of Compliance as to 5-26-2005 order, including amendment of section, transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

4. Amendment filed 10-7-2009; operative 10-7-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 41).

§7039. Notification and Initial Allocation.

Note • History

The Authority shall notify each Applicant in writing, stating the amount of each Initial Allocation.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. Reference: Sections 1179.22, 1179.23 and 1179.24, Health and Safety Code.

HISTORY

3. Certificate of Compliance as to 5-26-2005 order transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

§7040. Appeals.

Note • History

(a) Availability. An Applicant may file an appeal of any Initial Allocation. The grounds for any such appeal shall be limited to Applicant eligibility pursuant to Section 7031 and Section 7037 and whether the proposed expense is for a Project as defined in (ee) of Section 7030. No Applicant may appeal the Authority staff evaluation of, or Initial Allocation to, another Applicant.

(b) Timing. The appeal shall be submitted in writing and shall be received by the Authority not later than ten (10) calendar days following the transmittal date of the notification of Initial Allocation.

(c) Review. The Authority staff shall review the written appeal based upon the existing documentation submitted by the Applicant when the Application Form was filed and any other information the Authority staff requests of the Applicant. The Authority staff shall make a finding as to the merit of the appeal and shall notify the Applicant as to the decision no later than ten (10) calendar days after the receipt of an appeal. In the event that the Authority staff does not approve an appeal, the Applicant may further appeal to the Authority. The Applicant shall notify the Executive Director in writing no later than ten (10) calendar days prior to the next regularly scheduled Authority meeting that the Applicant intends to further appeal to the Authority. Any such appeal shall be presented by the Applicant, in person, at the next regularly scheduled Authority meeting.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. Reference: Sections 1179.22 and 1179.24, Health and Safety Code.

HISTORY

3. Certificate of Compliance as to 5-26-2005 order, including amendment of section, transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

§7041. Approval of Grant and Notification of Grantee.

Note • History

When an Initial Allocation for funding has been determined, Authority staff shall recommend to the Authority at its regularly scheduled meeting, that the Initial Allocation for consideration be approved as a Final Allocation. Any Final Allocation approved by the Authority at the same meeting shall be awarded as Grants to Grantees. Grantees shall be notified within five (5) business days of the same meeting in writing of the Grant approval.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. Reference: Sections 1179.22, 1179.24 and 1179.25, Health and Safety Code.

HISTORY

3. Certificate of Compliance as to 5-26-2005 order transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

§7042. Any Remaining Funds.

Note • History

If there are any remaining funds after the First Funding Round, the Authority may, in its sole discretion, award Grants of those remaining funds to Applicants in the Second Funding Round in a manner that is consistent with the purpose and requirements of the Children's Hospital Program of 2004.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. Reference: Sections 1179.22, 1179.24 and 1179.25, Health and Safety Code.

HISTORY

3. Certificate of Compliance as to 5-26-2005 order transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

4. Amendment filed 10-7-2009; operative 10-7-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 41).

§7043. Approval of Grant Use Change.

Note • History

The Authority or the Authority staff may, on a case-by-case basis, consider a change in the use of the Grant if the Grantee demonstrates, to the Authority or the Authority staff's satisfaction, that the change is consistent with the Act and this chapter.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. Reference: Sections 1179.22, 1179.24 and 1179.25, Health and Safety Code.

HISTORY

3. Certificate of Compliance as to 5-26-2005 order transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

§7044. Grant Agreements.

Note • History

The terms and conditions of a Grant shall be set forth in a Grant Agreement, which shall include, but not be limited to, all of the following terms and conditions:

(a) A Grant amount not greater than $30 million (less Administrative Costs and Costs of Issuance) for University of California Children's Hospitals or $74 million (less Costs of Issuance) for all Non-University of California Children's Hospitals.

(b) A Project Period.

(d) A provision that any unused Grant funds and any unused investment earnings on such Grant funds shall revert to the Authority.

(e) Agreement to comply with the Children's Hospital Program of 2004 and these regulations.

(f) Agreement that the Grantee will defend, indemnify and hold harmless the Authority and the state, and all officers, trustees, agents and employees of the same, from and against any and all claims, losses, costs, damages, or liabilities of any kind or nature, whether direct or indirect, arising from or relating to the Grant, the Project or the Act.

(g) Agreement to comply with state and federal laws outlawing discrimination, including, but not limited to, those prohibiting discrimination because of sex, race, color, ancestry, religion, creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (including cancer or genetic characteristics), sexual orientation, political affiliation, position in a labor dispute, age, marital status, and denial of statutorily-required employment-related leave.

(h) Agreement that continued compliance with Children's Hospital Program of 2004 requirements is the Grantee's responsibility.

(i) Agreement that the Grant shall only be used for Projects as described in Grantee's Application Form and approved by the Authority.

(j) Any audit provisions.

(k) Any provision necessary to ensure that interest on the bonds is tax-exempt.

(l) Agreement that the Grantee will not dispose of any component of the Project before the end of the useful life of that component of the Project.

(m) Any provisions relating to lease agreements pursuant to Section 7047.

(n) Any other provisions required by the Authority.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. References: Sections 1179.22, 1179.24 and 1179.25, Health and Safety Code.

HISTORY

3. Certificate of Compliance as to 5-26-2005 order, including amendment of section, transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

4. Amendment of subsections (e) and (h) filed 10-7-2009; operative 10-7-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 41).

§7045. Release of Funds for Non-University of California Children's Hospitals.

Note • History

(a) No Grant shall be released to a Non-University of California Children's Hospital until the following information has been provided to the satisfaction of Authority staff:

(1) For all Projects with the exception of equipment acquisition or real property acquisition projects, any supporting documentation that was incomplete with the Application Form shall be finalized and submitted along with a copy of the executed construction contract and the building permit.

(2) For Projects that include architect, design and engineering fees to be paid with Grant proceeds, all applicable executed architect, design and engineering contracts.

(3) For real property acquisition Projects, a copy of the executed purchase and sale agreement and a copy of an appraisal, the appraised value of which (when added to the amount of reasonable transaction and closing costs) shall not be less than the sum of the Grant and all other funding sources necessary to acquire the Project. The appraisal shall be no older than six months from the date of the executed purchase and sale agreement and shall be completed by a state certified appraiser.

(5) Evidence that all other funds, if needed, are in place to complete the Project.

(6) Evidence of property ownership for all construction Projects or if the property is leased to a Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity, a copy of a lease agreement that satisfies the requirements of Section 7047.

(7) An executed Grant Agreement.

(8) When applicable, evidence that there are no outstanding issues related to the California Environmental Quality Act and any other applicable law, if this information was not provided with the Application Form.

(b) Documentation provided for the release of Grant funds shall clearly show that the Grant award does not exceed the cost of the Project.

(d) Credit for investment earnings on any previously released portion of Grant shall be paid to the Authority prior to final release of Grant funds to the Grantee.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. Reference: Sections 1179.11, 1179.22, 1179.24 and 1179.25, Health and Safety Code.

HISTORY

3. Certificate of Compliance as to 5-26-2005 order, including amendment of section and Note, transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

4. Amendment of subsections (a)(1) and (a)(3) and redesignation and amendment of portion of subsection (c) as new subsection (d) filed 10-7-2009; operative 10-7-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 41).

§7046. Release of Funds for University of California Children's Hospitals.

Note • History

(a) No Grant shall be released to a University of California Children's Hospital until the following has been provided to the satisfaction of Authority staff:

(1) For all Projects (including Projects with architect, design and engineering fees) with the exception of equipment acquisition projects, all Project documentation of expenditures, including copies of cancelled checks that represent payment to contractors. The Grantee shall provide evidence of property ownership for all Projects or if the property is leased to a Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity, a copy of a lease agreement that satisfies the requirements of Section 7047, if this documentation was not submitted with the Application Form.

If the Grantee does not provide copies of cancelled checks, the Grantee shall provide wire transfers, electronic fund transfers or other evidence acceptable to the Authority in lieu of copies of cancelled checks.

(2) For real property acquisition Projects, a copy of the final closing statement with certification by the title company and a copy of an appraisal, the appraised value of which (when added to the amount of reasonable transaction and closing costs) shall not be less than the sum of the Grant and all other funding sources necessary to acquire the Project. The appraisal shall be completed by a state certified appraiser.

(3) For equipment acquisition Projects, all contracts, purchase orders, invoices and copies of cancelled checks shall be submitted.

(4) When applicable, evidence that there are no outstanding issues relating to the California Environmental Quality Act and any other applicable law, if this information was not provided with Application Form.

(5) An executed Grant Agreement.

(b) Documentation provided for the release of Grant funds shall clearly show that the Grant award did not exceed the cost of the Project.

(c) Grant funds shall be released on a periodic basis, upon receipt of draw requests, based on a listing of expenditures made on the Project and not previously reimbursed.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. Reference: Sections 1179.11, 1179.22, 1179.24 and 1179.25, Health and Safety Code.

HISTORY

3. Certificate of Compliance as to 5-26-2005 order, including amendment of section and Note, transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

4. Amendment of subsection (a)(3) filed 10-7-2009; operative 10-7-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 41).

§7047. Requirements for Construction Projects on Leased Property.

Note • History

(a) If a Children's Hospital proposes to use Grant funds for a Project other than equipment acquisition on property where the Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity is a lessee under a lease agreement, the following requirements shall be satisfied prior to any release of Grant funds pursuant to Sections 7045 or 7046:

(1) The lease agreement shall provide the Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity, as lessee, full access to the site to carry on its healthcare purposes.

(2) The term of the lease agreement must meet one of the following:

(A) The term of the lease agreement shall be at least as long as the useful life of the Project under the Grant.

(B) If the landlord under the lease agreement is an Affiliate, the Term of the lease agreement must be at least 74% of useful life of the Project under the Grant.

(3) A current title report on the site, brought up to date as of the effective date of the lease agreement shall be provided to the Authority. The title report shall show all of the following:

(A) No delinquent taxes or assessments or, if there are delinquent taxes or assessments, these are being contested in good faith and the Children's Hospital has set aside on its books adequate reserves to pay these taxes or assessments.

(B) No easements, exceptions or restrictions on the use of the site that will interfere with or impair the operation of the Project.

(C) No superior liens (deeds of trust or other rights) in the property. If there are any superior liens, they shall be subordinated to the lease agreement. The lease agreement shall provide that any subsequent encumbrance on the property (e.g. deed of trust) or sale of the property shall be subject to the lease agreement.

(4) Any one of the following shall be satisfied:

(A) The lease agreement shall provide for a nominal rent (e.g. $1 per year).

(B) Full rent under the lease agreement shall be paid in a lump sum up front.

(C) The Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity shall covenant in the Grant Agreement to budget for payment of rent each year.

(5) The lease agreement shall provide that the only remedy for any default, including failure to pay rent, by lessee Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity is suit for rent or specific performance to remedy any specific breach. The landlord's remedies for any default by lessee Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity may not include cancellation of lease agreement, retaking of property or eviction of the lessee.

(6) The lease agreement shall provide for either one of the following:

(A) The lessee Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity is obligated to pay all taxes and assessments on the property.

(B) The landlord will provide the lessee Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity with notice of any failure to pay taxes or assessments on the property and an opportunity for the lessee Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity to cure the failure.

(7) The landlord shall demonstrate that the lease agreement is legally authorized and has been properly approved and executed and enforceable against the landlord. The landlord shall provide a legal opinion of qualified counsel to this effect that is acceptable to the Authority.

(8) The lessee Children's Hospital shall demonstrate that the lease agreement is legally authorized and has been properly approved and executed and enforceable against the lessee Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity. Lessee Children's Hospital shall provide a legal opinion of qualified counsel to this effect that is acceptable to the Authority,

(9)(A) Except as provided in (B), the Children's Hospital shall provide a legal opinion that either: 1. the landlord is a special purpose entity which cannot enter bankruptcy proceedings under the federal Bankruptcy Code, or 2. the lease agreement will not be an executory contract and cannot be rejected by the landlord in the event of bankruptcy. The legal opinion shall be acceptable to the Authority.

(B) For so long as the landlord is an Affiliate of lessee Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity. the requirements of (A) do not apply.

(10) The Grant Agreement shall provide that if the lease agreement terminates prior to the end of the useful life of the Project under the Grant and the property that was subject to the lease agreement is not simultaneously re-leased under a new lease agreement that complies with the requirements of this Section 7047 or fee title to the property that was subject to the lease agreement is not simultaneously transferred to the Children's Hospital, the Authority is entitled to recover the Grant funds pursuant to Section 7049.

(11) When a Project on leased property includes improvements to any common areas that are shared with other tenants or areas that are not leased by the lessee Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity under the lease agreement, the Grant funds shall be limited only to the proportionate costs of the Project which exclude the costs related to such areas.

(12) Prior to approval of the Grant by the Authority, the Applicant shall submit the proposed lease agreement for review and demonstrate compliance with all of the above conditions and any other conditions required by the Authority.

(b) For purposes of this section, “Affiliate” means an entity which, directly or indirectly through one or more intermediaries, is controlled by or is under common control with the lessee Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. Reference: Sections 1179.22, 1179.24 and 1179.25, Health and Safety Code.

HISTORY

3. Certificate of Compliance as to 5-26-2005 order, including renumbering of former section 7047 to section 7048 and new section 7047, transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

§7048. Completion of Grant Funded Project.

Note • History

(a) The Grantee shall certify to the Authority that the Project is complete and, to the extent not already provided to the Authority, provide supporting documentation to the satisfaction of the Authority staff as follows:

(1) Construction projects (including Projects with architect, design and engineering fees) require documentation including, but not limited to, copies of the certificate of occupancy and/or notice of completion. Purchase orders, invocies, and cancelled checks shall be submitted. If the Grantee does not provide copies of cancelled checks, the Grantee shall provide wire transfers, electronic fund transfers or other evidence acceptable to the Authority in lieu of copies of cancelled checks.

(2) Real property acquisition Projects require a copy of the final closing statement with certification by the title company.

(3) Equipment acquisition projects require service contracts, purchase orders, invoices and copies of cancelled checks to be submitted.

(b) If the Grantee fails to complete the Project within the Project Period, the Authority may require remedies, including forfeiture and return of the Grant to the Authority.

(c) On a case-by-case basis, the Authority or the Authority staff may extend the Project Period for extraordinary or unavoidable delays where the Grantee can demonstrate that it occurred through no fault of its own.

(d) Documentation provided to establish the completion of a Project shall clearly show that the Grant award did not exceed the cost of the Project.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. Reference: Sections 1179.22, 1179.24 and 1179.25, Health and Safety Code.

HISTORY

3. Certificate of Compliance as to 5-26-2005 order, including renumbering of former section 7048 to section 7049 and renumbering and amendment of former section 7047 to section 7048, transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

4. Amendment of subsections (a)(1) and (a)(3) filed 10-7-2009; operative 10-7-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 41).

§7049. Recovery of Funds for Non-Performance and Unused Funds.

Note • History

(a) If the Authority determines that the use of the Grant funds did not comply with Children's Hospital Program of 2004 requirements and the terms of the Grant Agreement for an approved Project, the Authority may require remedies, including a return of all Grant funds.

In cases where Grant funds paid for a component of a Project that does not specifically benefit pediatric patients, such as architect, design or engineering fees or land acquisition costs, and if the Authority determines that the Grantee did not complete a larger Project as described in the timelines provided with the Application, the Authority may require remedies, including a return of all Grant funds.

If the Project, or any part thereof, funded with Grant funds ceases to be used by the Children's Hospital before the end of the useful life of the Project, the Authority is entitled to recover Grant funds in an amount that bears the same ratio to the value of the Project, or the appropriate part thereof, at the time it ceased to be used by the Children's Hospital as the amount of the Grant bore to the cost of the Project or the appropriate part thereof. For purposes of this paragraph, the value of the Project, or the appropriate part thereof, is determined by mutual agreement of the Authority and the Grant recipient or through an action brought for that purpose in the superior court.

(b) If any portion of the Grant is forfeited to the Authority, the forfeited funds shall be deemed remaining funds for purposes of Section 7042.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. Reference: Sections 1179.22, 1179.24 and 1179.25, Health and Safety Code.

HISTORY

3. Certificate of Compliance as to 5-26-2005 order, including repealer of former section 7049 and renumbering of former section 7048 to section 7049 with amendment of section heading, section and Note, transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

4. Amendment of subsection (a) filed 10-7-2009; operative 10-7-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 41).

§7050. Audits.

Note • History

The Bureau of State Audits and Authority staff may conduct periodic audits to ensure Grantees are using Grants consistent with the Children's Hospital Program of 2004 requirements and the terms of the Grant Agreement for an approved Project. Grantees shall retain all Children's Hospital Program of 2004 documentation and financial data necessary to substantiate the purposes for which the Grant funds were spent for a period of three years after the certification of completion of the Project has been submitted or until June 30, 2017, whichever is later.

NOTE

Authority cited: Sections 1179.22, 1179.24 and 1179.32, Health and Safety Code. Reference: Section 1179.25, Health and Safety Code.

HISTORY

3. Certificate of Compliance as to 5-26-2005 order transmitted to OAL 9-14-2005 and filed 10-27-2005 (Register 2005, No. 43).

4. Amendment filed 10-7-2009; operative 10-7-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 41).

Chapter 2.5. The Children's Hospital Program of 2008

§7051. Definitions.

Note • History

The following words and phrases, as used in this chapter are defined as follows:

(a) “Act” means the Children's Hospital Bond Act of 2008 (Part 6 (commencing with Section 1179.50), Division 1, Health and Safety Code), approved by voters on November 4, 2008.

(b) “Administrative Costs” means actual costs incurred by the Authority and other state agencies as permitted by law for administering the Children's Hospital Program of 2008.

(d) “Application Form” means the written request by an Applicant to the Authority for a Grant under the Children's Hospital Program of 2008, which includes pages 1-9, Attachments A-B and all materials submitted with Form #CHFFA 6, Rev. 01-2009-3, for the First Funding Round. If necessary, the Application Form for the Second Funding Round and requisite regulations shall be developed no later than June 1, 2018.

(f) “Authority” means the California Health Facilities Financing Authority.

(g) “Children's Hospital” means either:

(1) A University of California general acute care hospital described as any one of the following:

(A) University of California, Davis Children's Hospital.

(B) Mattel Children's Hospital at University of California, Los Angeles.

(D) University of California, San Francisco Children's Hospital.

(E) University of California, San Diego Children's Hospital.

(h) “Children's Hospital Program of 2008” means the program resulting from the Act.

(j) “Executive Director” means the Executive Director of the Authority.

(k) “Expansion of Health Care Access” means providing same services to additional patients or net additional or new Pediatric Services to existing or new patients.

(l) “Final Allocation” means a Grant allocation approved by the Authority.

(m) “First Funding Round” means the period of time prior to June 30, 2018.

(p) “Grant” means the distribution of money in the Children's Hospital Bond Act Fund, as defined in Section 1179.53 of the Health and Safety Code, by the Authority to a Children's Hospital for a Project pursuant to the Children's Hospital Program of 2008.

(q) “Grant Agreement” means a written agreement for a Grant entered into between a Grantee and the Authority.

(r) “Grantee” means an Applicant that has received Grant approval by the Authority.

(s) “Improvement of Child Health Care” means an improvement in the timeliness, effectiveness, or quality of care provided to the pediatric population.

(t) “Improvement of Health Care Access” means an increase in the quantity and scope of Pediatric Services provided.

(u) “Improvement of Pediatric Patient Outcomes” means an improvement in the overall health of the pediatric patients receiving treatment or care.

(v) “Initial Allocation” means an Authority staff-level decision granting an allocation.

(w) “Maximum Grant for the First Funding Round” means:

(1) A limit of $39.2 million less Costs of Issuance and Administrative Costs on the total amount of Grants that may be made to any one Children's Hospital that is described in paragraph (1) of subdivision (g).

(2) A limit of $98 million less Costs of Issuance and Administrative Costs on the total amount of Grants that may be made to any one Children's Hospital that is described in paragraph (2) of subdivision (g).

(x) “Most Recent Audited Financial Statements” means the Audited Financial Statements for the most recent fiscal year for which such financial statements are available.

(y) “Non University of California Children's Hospital” means a Children's Hospital described in paragraph (2) of subdivision (g).

(z) “Pediatric Research Programs” means scientific research focused on the pediatric population to improve and/or better understand this population's health.

(aa) “OSHPD” means the Office of Statewide Health Planning and Development.

(dd) “Pooled Money Investment Board” means the Board established pursuant to Section 16480.1 of the Government Code.

(ee) “Project” means constructing, expanding, remodeling, renovating, furnishing, equipping, financing, or refinancing capital assets, as defined in Section 16727(a) of the Government Code, of a Children's Hospital. Pursuant to the Act, this may include reimbursement for the costs of constructing, expanding, remodeling, renovating, furnishing, equipping, financing or refinancing where these costs are incurred after January 31, 2008. “Project” does not include Costs of Issuance for any financing or refinancing of a Project.

(ff) “Project Period” means a defined beginning and end date approved by the Authority for implementation of the Project.

(gg) “Second Funding Round” means the period of time after June 30, 2018, when Grants may be awarded from unexhausted funds made available pursuant to the Program.

(hh) “Total Grant Funds” means $980 million less Administrative Costs and Costs of Issuance.

(ii) “Uncompensated Indigent Care” means care provided without a patient-specific source funding available to pay for the Pediatric Services rendered.

(jj) “Undercompensated Care” means care provided where a financial shortfall exists between gross expenses and the revenues (or payment) in treating a pediatric patient.

(kk) “University of California Children's Hospital” means a Children's Hospital described in paragraph (1) of subdivision (g).

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.50, 1179.51, 1179.54, 1179.55, 1179.56, 1179.57, 1179.59, 1179.67 and 1179.68, Health and Safety Code.

HISTORY

1. New chapter 2.5 (sections 7051-7071) and section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7052. Eligible Children's Hospital.

Note • History

(a) Any Children's Hospital shall be eligible to apply for one or more Grants if the following conditions are met:

(3) The Children's Hospital has submitted to the Authority a completed Application Form.

(5) If the Children's Hospital proposes to use Grant funds for a Project other than equipment acquisition on certain property, the Children's Hospital shall provide evidence that either:

(A) The Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity owns the property.

(B) The Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity is a lessee under a lease agreement that satisfies Section 7068.

(b) If an Applicant does not meet the conditions described in (a), the Applicant shall be deemed ineligible, but may reapply at a time when the Applicant is able to meet the conditions.

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.51, 1179.55 and 1179.57, Health and Safety Code

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7053. Maximum Grant, First Funding Round.

Note • History

No Grant or combination of Grants to any Children's Hospital may exceed the Maximum Grant for the First Funding Round.

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.55, 1179.56 and 1179.57, Health and Safety Code.

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7054. Maximum Grant, Second Funding Round.

Note • History

If funds are available pursuant to Section 7065, the process for determining Maximum Grants for the Second Funding Round shall be adopted no later than June 1, 2018.

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.55, 1179.56 and 1179.57, Health and Safety Code.

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7055. Application Form.

Note • History

A blank Application Form shall be available from the Authority and the Authority's website and may be referred to as the Children's Hospital Program of 2008 Grant Application Form #CHFFA 6, Rev. 01-2009-3, which is hereby incorporated by reference. The Applicant shall submit a completed Application Form in the manner set forth in Sections 7056 and 7057. The Children's Hospital Overview and Instructions for Grant Application, Form #CHFFA 6A, Rev. 01-2009-3 is hereby incorporated by reference.

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.55, 1179.57 and 1179.58, Health and Safety Code.

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7056. Application Form Submission.

Note • History

Application Forms shall be submitted in duplicate to the Authority. The Authority shall accept Application Forms for the First Funding Round on an on-going basis until the funding for the Children's Hospital Program of 2008 is exhausted. Each Applicant may apply for more than one Grant for different Projects until its Maximum Grant for the First Funding Round is reached. If necessary, blank application forms for the Second Funding Round shall be available no later than June 1, 2018.

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.55 and 1179.57, Health and Safety Code.

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7057. Content of Application Form.

Note • History

The following items shall accompany the Application Form:

(b) Organization Information.

(1) If the Applicant is a non-University of California Children's Hospital, the Applicant shall submit both of the following:

(3) Grant funds will only be used for the Project described in the Application Form unless a change in the Project is approved in writing by the Authority pursuant to Section 7064.

(4) The Project and financial records of the Applicant's Project are subject to audit and inspection by the Authority and the Bureau of State Audits.

(5) Applicant has disclosed all information requested by the legal status questionnaire.

(6) Applicant will notify the Authority in writing at the time of Project completion with evidence of completion included.

(7) Applicant will provide all documents and information required by law and meet all necessary requirements prior to the release of the Grant.

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.55, 1179.57, 1179.58 and 1179.61, Health and Safety Code.

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7058. Application Form Evaluation.

Note • History

(a) Application Forms shall be reviewed and evaluated within 60 days from receipt by Authority staff according to the evaluation criteria described in Section 7059.

(b) Applications are due the first business day of each month, with the following exceptions:

(1) For October, applications are due on October 7.

(2) Applications are not accepted in November.

(c) A positive response or combination of positive responses to the legal status questionnaire may result in the applicant becoming ineligible for a Grant.

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.55, 1179.57 and 1179.58, Health and Safety Code.

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7059. Evaluation Criteria.

Note • History

Authority staff shall evaluate each Application Form based on the following criteria.

(a) How well the Project contributes to both of the following:

(1) Expansion or Improvement of Health Care Access by children eligible for Governmental Health Insurance Programs and indigent, underserved, and uninsured children.

(2) Improvement of Child Health Care or Improvement of Pediatric Patient Outcomes.

(b) How well the Applicant does any or all of the following:

(1) Provides Uncompensated Indigent Care or Undercompensated Care to eligible pediatric patients.

(2) Provides services to Vulnerable Pediatric Populations.

(3) Promotes Pediatric Teaching Programs or Pediatric Research Programs.

(1) A project timeline that includes the following:

(A) An expected start date (e.g. construction start date(s) and/ or equipment purchase date(s)).

(B) An expected completion date (e.g. construction completion date(s), acquisition completion dates, and/or equipment installation date(s)).

(2) Whether the Project is feasible after a review of all of the following:

(A) For all Projects with the exception of equipment acquisition projects, the Applicant shall submit estimates of Project costs and evidence of property ownership or, if the property is leased to a Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity, a copy of a lease agreement that satisfies the requirements of Section 7068. The Applicant shall also provide building permits and/or executed construction, architect, design and engineering contracts, if available. An Applicant with a Project that does not yet have an executed contract or building permit but is actively in the process of obtaining one shall provide a detailed statement that explains the status of obtaining the document.

(D) If funding sources other than the Grant are required to complete the Project, the Applicant shall provide proof of the funding source, including but not limited to, commitment letters, board approved capital campaign plans or any other documentation acceptable to the Authority. Such documentation shall be in accordance with the Project timeline and budget.

(3) Whether implementation of the Project is feasible:

(B) When applicable, the Applicant shall submit evidence that it is in compliance with the California Environmental Quality Act and all other applicable laws.

(d) The sources and uses of funds:

(e) The financial capacity of the Applicant based upon a review of the Most Recent Audited Financial Statements supplied pursuant to paragraph (2) of subdivision (a) of Section 7052.

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.55, 1179.57 and 1179.58, Health and Safety Code.

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7060. Notification and Initial Allocation.

Note • History

The Authority shall notify each Applicant in writing, stating the amount of each Initial Allocation.

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.55, 1179.56 and 1179.57, Health and Safety Code.

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7061. Appeals.

Note • History

(a) Availability. An Applicant may file an appeal of the Initial Allocation. The grounds for any such appeal shall be limited to Applicant eligibility pursuant to Section 7052 and Section 7058 and whether the proposed expense is for a Project as defined in (ee) of Section 7051. No Applicant may appeal the Authority staff evaluation of, or Initial Allocation to, another Applicant.

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.55 and 1179.57, Health and Safety Code.

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7062. Approval of Grant and Notification of Grantee.

Note • History

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.55, 1179.57 and 1179.58, Health and Safety Code.

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7063. Any Remaining Funds.

Note • History

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.55, 1179.57 and 1179.58, Health and Safety Code.

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7064. Approval of Grant Use Change.

Note • History

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.55, 1179.57 and 1179.58, Health and Safety Code.

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7065. Grant Agreements.

Note • History

The terms and conditions of a Grant shall be set forth in a Grant Agreement, which shall include, but not be limited to, all of the following terms and conditions:

(a) A Grant amount not greater than $39.2 million (less Administrative Costs and Costs of Issuance) for University of California Children's Hospitals or $98 million (less Administrative Costs and Costs of Issuance) for all Non-University of California Children's Hospitals.

(b) A Project Period.

(d) A provision that any unused Grant funds and any unused investment earnings on such Grant funds shall revert to the Authority.

(e) Agreement to comply with the Children's Hospital Program of 2008 and these regulations.

(h) Agreement that continued compliance with Children's Hospital Program of 2008 requirements is the Grantee's responsibility.

(i) Agreement that the Grant shall only be used for Projects as described in Grantee's Application Form and approved by the Authority.

(j) Any audit provisions.

(k) Any provision necessary to ensure that interest on the bonds is tax-exempt.

(l) Agreement that the Grantee will not dispose of any component of the Project before the end of the useful life of that component of the Project.

(m) Any provisions relating to lease agreements pursuant to Section 7068.

(n) Any other provisions required by the Authority.

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.55, 1179.57 and 1179.58, Health and Safety Code.

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7066. Release of Funds for Non-University of California Children's Hospitals.

Note • History

(a) No Grant shall be released to a Non-University of California Children's Hospital until the following information has been provided to the satisfaction of Authority staff:

(2) For Projects that include architect, design and engineering fees to be paid with Grant proceeds, all applicable executed architect, design and engineering contracts.

(5) Evidence that all other funds, if needed, are in place to complete the Project.

(7) An executed Grant Agreement.

(b) Documentation provided for the release of Grant funds shall clearly show that the Grant award does not exceed the cost of the Project.

(d) Credit for investment earnings on any previously released portion of Grant shall be paid to the Authority prior to final release of Grant funds to the Grantee.

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.51, 1179.55, 1179.57 and 1179.58, Health and Safety Code.

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7067. Release of Funds for University of California Children's Hospitals.

Note • History

(a) No Grant shall be released to a University of California Children's Hospital until the following has been provided to the satisfaction of Authority staff:

(1) For all Projects (including Projects with architect, design and engineering fees) with the exception of equipment acquisition projects, all Project documentation of expenditures, including copies of cancelled checks that represent payment to contractors. The Grantee shall provide evidence of property ownership for all Projects or if the property is leased to a Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity, a copy of a lease agreement that satisfies the requirements of Section 7068, if this documentation was not submitted with the Application Form.

(3) For equipment acquisition Projects, service contracts, purchase orders, invoices and copies of cancelled checks be submitted.

(5) An executed Grant Agreement.

(b) Documentation provided for the release of Grant funds shall clearly show that the Grant award did not exceed the cost of the Project.

(c) Grant funds shall be released on a periodic basis, upon receipt of draw requests, based on a listing of expenditures made on the Project and not previously reimbursed.

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.51, 1179.55, 1179.57 and 1179.58, Health and Safety Code.

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7068. Requirements for Construction Projects on Leased Property.

Note • History

(2) The term of the lease agreement must meet one of the following:

(A) The term of the lease agreement shall be at least as long as the useful life of the Project under the Grant.

(B) If the landlord under the lease agreement is an Affiliate, the term of the lease agreement must be at least 74% of useful life of the Project under the Grant.

(3) A current title report on the site, brought up to date as of the effective date of the lease agreement shall be provided to the Authority. The title report shall show all of the following:

(B) No easements, exceptions or restrictions on the use of the site that will interfere with or impair the operation of the Project.

(4) Any one of the following shall be satisfied:

(A) The lease agreement shall provide for a nominal rent (e.g. $1 per year).

(B) Full rent under the lease agreement shall be paid in a lump sum up front.

(6) The lease agreement shall provide for either one of the following:

(A) The lessee Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity is obligated to pay all taxes and assessments on the property.

(B) For so long as the landlord is an Affiliate of lessee Children's Hospital or the California nonprofit corporation of which the Children's Hospital is an operating entity, the requirements of (A) do not apply.

(10) The Grant Agreement shall provide that if the lease agreement terminates prior to the end of the useful life of the Project under the Grant and the property that was subject to the lease agreement is not simultaneously re-leased under a new lease agreement that complies with the requirements of this Section 7068 or fee title to the property that was subject to the lease agreement is not simultaneously transferred to the Children's Hospital, the Authority is entitled to recover the Grant funds pursuant to Section 7070.

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.55, 1179.57 and 1179.58, Health and Safety Code.

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7069. Completion of Grant Funded Project.

Note • History

(1) Construction projects (including Projects with architect, design and engineering fees) require documentation including, but not limited to, copies of the certificate of occupancy and/or notice of completion. Purchase orders, invoices, and cancelled checks shall be submitted. If the Grantee does not provide copies of cancelled checks, the Grantee shall provide wire transfers, electronic fund transfers or other evidence acceptable to the Authority in lieu of copies of cancelled checks.

(2) Real property acquisition Projects require a copy of the final closing statement with certification by the title company.

(3) Equipment acquisition projects require service contracts, purchase orders, invoices and copies of cancelled checks to be submitted.

(b) If the Grantee fails to complete the Project within the Project Period, the Authority may require remedies, including forfeiture and return of the Grant to the Authority.

(d) Documentation provided to establish the completion of a Project shall clearly show that the Grant award did not exceed the cost of the Project.

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.55, 1179.57 and 1179.58, Health and Safety Code.

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7070. Recovery of Funds for Non-Performance and Unused Funds.

Note • History

(a) If the Authority determines that the use of the Grant funds did not comply with Children's Hospital Program of 2008 requirements and the terms of the Grant Agreement for an approved Project, the Authority may require remedies, including a return of all Grant funds.

(b) If any portion of the Grant is forfeited to the Authority, the forfeited funds shall be deemed remaining funds for purposes of Section 7063.

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Sections 1179.55, 1179.57 and 1179.58, Health and Safety Code.

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

§7071. Audits.

Note • History

The Bureau of State Audits and Authority staff may conduct periodic audits to ensure Grantees are using Grants consistent with the Children's Hospital Program of 2008 requirements and the terms of the Grant Agreement for an approved Project. Grantees shall retain all Children's Hospital Program of 2008 documentation and financial data necessary to substantiate the purposes for which the Grant funds were spent for a period of three years after the certification of completion of the Project has been submitted or until June 30, 2021, whichever is later.

NOTE

Authority cited: Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code. Reference: Section 1179.58, Health and Safety Code.

HISTORY

1. New section filed 7-31-2009; operative 7-31-2009 pursuant to Government Code section 11343.4 (Register 2009, No. 31).

Chapter 3. The Community Clinic Grant Program of 2005

§7075. Definitions.

Note • History

The following words and phrases, as used in this Chapter are defined as follows:

(a) “Act” -- means the Cedillo-Alarcón Community Clinic Investment Act of 2000, as set forth in Section 15438.6 of the Government Code, as amended by Stats. 2005, ch. 493.

(b) “Applicant” -- means a Clinic applying for Grant funds under the Community Clinic Grant Program of 2005.

(c) “Application Form” -- means the written request by an Applicant to the Authority for a Grant under the Community Clinic Grant Program of 2005, which includes pages 1-15, Attachments A-D and all materials submitted with Form # CHFFA 6 Rev. 10-2005. If necessary, the Application Form for the Second (2nd) Funding Round shall be developed at a future date.

(d) “Audited Financial Statements” -- means an examination and report of the financial activities of an eligible Applicant for fiscal year 2004 (or a more recent audit for the Second (2nd) Funding Round, if necessary), performed by an independent accounting firm under generally accepted accounting principles.

(e) “Authority” -- means the California Health Facilities Financing Authority.

(f) “Authority Staff” -- means employees of the Authority.

(g) “Broad Geographic Distribution” -- means that approximately eight million dollars ($8 million) in Grant funds will be allocated to each of the following four geographic regions for Projects in that region:

1. Central Coast: the counties of Mendocino, Sonoma, Marin, Napa, Solano, Contra Costa, Alameda, Santa Clara, San Benito, Monterey, Santa Cruz, San Mateo, and San Francisco;

2. Los Angeles/Ventura: the counties of Los Angeles and Ventura;

3. Northern/Central: the counties of Del Norte, Humboldt, Siskiyou, Trinity, Shasta, Modoc, Lassen, Tehama, Glenn, Butte, Plumas, Sierra, Yuba, Sutter, Lake, Colusa, Yolo, Sacramento, El Dorado, Placer, Nevada, Amador, Alpine, Calaveras, San Joaquin, Stanislaus, Tuolumne, Mono, Mariposa, Merced, Madera, Fresno, Kings, Tulare, and Inyo;

4. Southern California: the counties of San Luis Obispo, Santa Barbara, Kern, San Bernardino, Orange, Riverside, San Diego, and Imperial.

The balance of funds in excess of $32 million shall be allocated on the basis of total points received by each Applicant, regardless of geographic location.

(h) “Clinic” -- means a “Community Clinic” or “Free Clinic”, as defined by Section 1204(a) of the Health and Safety Code that has been licensed by the State Department of Health Services as of January 1, 2004. “Clinic” also includes a Clinic, as described in Section 1206(c) of the Health and Safety Code, that is exempt from licensure and conducted, maintained or operated by a federally recognized Indian tribe or tribal organization, as defined in Section 450 or 1601 of Title 25 of the United States Code, and which is located on land recognized as tribal land by the federal government.

(i) “Community Clinic Grant Program of 2005” or “program” -- means the program resulting from the Act.

(j) “Commissioner” -- means the California Insurance Commissioner.

(k) “Completed Project” -- means an eligible Project that is completed (in place and fully operational).

(l) “Executive Director” -- means the Executive Director of the Authority.

(m) “Expansion of Services” -- Adding a new service or expanding capacity to an existing service.

(n) “Final Allocation” -- means the amount of funds awarded to an Applicant by the Authority based on an Initial Allocation that has been adjusted according to the total amount of funds available for distribution, Broad Geographic Distribution and any appeals approved by the Authority.

(o) “First (1st) Funding Round” -- means the Funding Round (1st) for which an application is due on the final filing date noticed in the Application Form. Funding available for the First (1st) Funding Round is equal to $35 million ($35,000,000), plus interest earnings on these funds, plus any remaining funds from the Grant program previously authorized and funded by Section 15438.6 of the Government Code, as enacted by Stats. 2000, ch. 99.

(p) “Going Concern Qualification” -- means a finding by an independent accounting firm that the carrying value of an entity's assets will be realized and its liabilities will be liquidated in the ordinary course of continuing business activity.

(q) “Grant” -- means a Final Allocation approved by the Authority.

(r) “Grant Agreement” -- means a separate agreement between the Authority and Grantee which specifies the terms and conditions of the grant as specified in Section 7092

(s) “Grantee” -- means an Applicant that has received Grant approval by the Authority.

(t) “Health Professional Shortage Areas (HPSAs)” -- means those areas or facilities designated as having a shortage of health professionals by the Secretary of the U.S. Department of Health and Human Services in accordance with Section 254e of Title 42 of the United States Code. (Federal law also recognizes facility HPSAs.)

(u) “Improvement of Services” means an improvement in the quality of care provided to existing patients.

(v) “Indigent Care” -- means a ratio calculated by Authority Staff between the number of Indigent patients and the number of total patients that are reported by each Applicant in its 2004 annual report on file with the Office of Statewide Health Planning and Development pursuant to Section 1216 of the Health and Safety Code.

(w) “Initial Allocation” -- means an Authority Staff-level decision granting an allocation to an Applicant based on score and rank, adjusted according to the total amount of funds available for distribution and for Broad Geographic Distribution.

(x) “Medically Underserved Areas (MUAs)” -- means those areas designated as medically underserved by the Secretary of the U.S. Department of Health and Human Services as published in the Federal Register from time to time in accordance with Section 51c.102 of Title 42 of the Code of Federal Regulations.

(y) “Medically Underserved Populations (MUPs)” -- means the population of an urban or rural area designated as medically underserved by the Secretary of the U.S. Department of Health and Human Services in accordance with Section 254b of Title 42 of the United States Code.

(z) “Memorandum of Understanding (MOU)” -- means the agreement entered between the California Insurance Commissioner and the Authority authorizing the Authority to administer this program and providing the basic parameters for the program.

(aa) “Project” -- means the construction, expansion, remodeling, renovating, acquiring, furnishing, or equipping of a Clinic, and includes the removal, installation, and maintenance of electronic and non-electronic equipment, as well as the reasonable costs associated with training personnel on the use of the new equipment. Project does not include normal operating expenditures, non-capital equipment, refinancing, or reimbursement of expenditures prior to the Final Allocation date. No pre-construction costs are allowed, except for eligible permit and planning fees.

(bb) “Project Period” means a defined beginning and end date approved by the Authority for implementation of the Project.

(cc) “Second (2nd) Funding Round” -- means funding of grants after the First Round Funding, subject to funds being available.

(dd) “Special Needs Populations” -- means a population of patients with serious chronic or acute conditions that require an extraordinary level of experience and care to provide health care services that result in extraordinary costs to a Clinic.

(ee) “Total Grant Funds” means $35 million, plus interest earnings on these funds, plus any forfeited funds returned from Grantee's back to the Authority, plus remaining funds from the grant program previously authorized and funded by Section 15438.6 of the Government Code, as enacted by Stats. 2000, ch. 99.

(ff) “Total Net Assets” -- means the total equity of a non-profit organization, representing the difference between its total assets and its total liabilities, as shown on the Applicant's final Audited Financial Statement for 2004, or if not available Federal Income Tax Form 990 for 2004.

(gg) “Uncompensated Care” -- means a population of patients measured as a ratio calculated by Authority Staff comparing self-pay and non-pay patient encounters with total patient encounters, as reported by primary care and specialty clinics with the Office of Statewide Health Planning and Development in accordance with Section 1216 of the Health and Safety Code, as shown in the annual report for 2003.

(hh) “Underinsured Population” -- means the number of patients having partial health insurance coverage and required to self-pay or pay on a sliding scale for all or part of their health care services not provided by their health insurance program or plan.

(ii) “Uninsured Population” -- means a population of patients measured as a ratio calculated by Authority Staff comparing patient encounters from the Child Health and Disability Prevention Program (CHDP), the Medically Indigent Services Program (MISP), the County Medical Services Program (CMSP), the Expanded Access to Primary Care Program (EAPC), other county programs, other state programs, self-pay and non-pay encounters with total patient encounters filed by primary care and specialty clinics with the Office of Statewide Health Planning and Development in accordance with Section 1216 of the Health and Safety Code, as shown in the annual report for 2004.

(jj) “Waiting List -- means a list of Applicants who are waiting for Grant funds, if Grant funds are available after the funding of the First (1st) Funding Round.

(kk) “Working Capital” -- means the excess of current assets over current liabilities, as shown on the Applicant's 2004 Audited Financial Statements or Federal Tax Form 990.

NOTE

Authority cited: Sections 15437 and 15438.6(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

1. New chapter 3 (sections 7075-7099) and section filed 11-28-2005 as an emergency; operative 11-28-2005 (Register 2005, No. 48). A Certificate of Compliance must be transmitted to OAL by 3-28-2006 or emergency language will be repealed by operation of law on the following day.

2. Amendment of subsections (v) and (aa) filed 12-14-2005 as an emergency; operative 12-14-2005 (Register 2005, No. 50). A Certificate of Compliance must be transmitted to OAL by 4-13-2006 or emergency language will be repealed by operation of law on the following day.

3. Repealer of chapter 3 (sections 7075-7079) and repealer of section by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

4. New chapter 3 (sections 7075-7079) and section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7076. Eligible Clinic.

Note • History

(a) A Clinic shall be eligible to apply for a Grant if all of the following conditions are met:

(1) the 2004 Audited Financial Statements of the Clinic do not contain any Going Concern Qualification;

(2) the Project completion timeline is within eighteen (18) months from the date of Final Allocation;

(3) the Clinic has submitted to the Authority a completed Application Form; and

(4) the Clinic has filed an annual report to the Office of Statewide Health Planning and Development pursuant to Section 1216 of the Health and Safety Code, except those Clinics that are exempt from this requirement. Clinics that are exempt from filing annual reports must submit the data as requested by the Authority in Attachment D of Application Form #CHFFA 6, Rev. 10-2005.

(b) If a Clinic does not meet the conditions in subdivision (a), the Clinic shall be deemed ineligible and will not be considered for funding.

(c) If the Clinic proposes to use Grant funds for a Project other than equipment acquisition on certain property, the Clinic shall provide evidence that either:

(1) The Clinic owns the property, or

(2) the Clinic is a lessee under a lease agreement that will continue for at least five years after the Completed Project date.

(d) If the Clinic proposes to use Grant funds for a Project that includes permit fees, project planning fees, or land acquisition costs, the Clinic shall provide the Authority with reasonable assurance, at the Authority's discretion, that any of these are components of a larger Project that will meet the program objectives.

NOTE

Authority cited: Sections 15437 and 15438.6(d), Government Code. Reference: Sections 15438(q) and 15438.6(b), (c), (d), (g) and (j), Government Code.

HISTORY

1. New section filed 11-28-2005 as an emergency; operative 11-28-2005 (Register 2005, No. 48). A Certificate of Compliance must be transmitted to OAL by 3-28-2006 or emergency language will be repealed by operation of law on the following day.

2. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

3. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7077. Eligible Project.

Note • History

Grants shall be used for purposes as defined under “Project” in Section 7075.

NOTE

Authority cited: Sections 15437 and 15438.6(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

3. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7078. Maximum Grant, First Funding Round.

Note • History

No Grant shall exceed two hundred fifty thousand dollars ($250,000) per Clinic. If an organization consists of or is affiliated with more than one Clinic, then each eligible Clinic may receive Grant funds of up to two hundred and fifty thousand dollars ($250,000). However, no organization along with its affiliates may receive Grant funds in excess of seven hundred and fifty thousand dollars ($750,000). If an organization receives Grant funds in excess of two hundred and fifty thousand dollars ($250,000) as permitted by this section, the entire amount may be expended among approved projects, as reflected in the organization's Application(s).

NOTE

Authority cited: Sections 15437 and 15438.6(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

3. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7079. Maximum Grant, Second Funding Round.

Note • History

If Grants are awarded pursuant to Section 7089, the process for determining Maximum Grants for the Second Funding Round shall be adopted at a future date.

NOTE

Authority cited: Sections 15437 and 15438.6(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

3. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7080. Application Form/Submission.

Note • History

Blank Application Forms are available from the Authority and the Authority's website and may be referred to as the Community Clinic Grant Program of 2005 Grant Application Form #CHFFA 6, Rev. 10-2005, which is hereby incorporated by reference. The Applicant shall submit a completed Application Form in the manner set forth in Sections 7081 and 7082 of this chapter. The Community Clinic Grant Program of 2005 Overview and Instructions for Grant Application, Form #CHFFA 6, Rev. 10-2005 are hereby incorporated by reference.

NOTE

Authority cited: Sections 15437 and 15438.6(d), Government Code. Reference: Sections 15438(q) and 15438.6(b), (d) and (j), Government Code.

HISTORY

2. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

3. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7081. Application Form Submission.

Note • History

(a) Application Forms shall be submitted in duplicate to the Authority. Applications must be received on or before 5:00 pm on the final filing date noticed in the Application Form. Application Forms received after the final filing date/time will not be accepted for review or evaluation and will be returned to the Applicant by mail. Application Forms shall be considered complete and final as of the date received. The Authority Staff shall NOT accept additional written information after the application is received, for purposes of evaluating the Application Form, unless requested by the Authority.

(b) When the Applicant is part of or is affiliated with an organization that consists of or is affiliated with more than one Clinic, the Applicant's Application Form shall list all Clinics that are part of or affiliated with the Applicant.

NOTE

Authority cited: Sections 15437 and 15438(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

3. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7082. Content of Application Form.

Note • History

The following information shall accompany the Application Form:

(a) Financial Information. Applicants shall submit a copy of their 2004 final Audited Financial Statements (drafts not permitted). If an Applicant certifies that an audit was NOT completed for the year 2004, the Applicant shall submit a copy of its 2004 Federal Tax Return -- Form 990

(b) Organizational information. Applicants shall submit:

(1) a copy of their tax-exemption letter from both the Internal Revenue Service and the State Franchise Tax Board; and

(2) a copy of their most recent license or licenses (if the application references other licensed clinics), or notification of exemption from licensure, from the State Department of Health Services.

(d) Agreement and Certification. The Applicant shall agree and certify to the following terms and conditions as a requirement of receiving any Grant. The agreement and certification shall be executed by the Executive Director or Chief Executive Officer, Chief Financial Officer, or other authorized officer of the Applicant, on behalf of the Applicant. The authorized officer of the Applicant shall agree and certify to the following terms and conditions as a requirement of receiving any Grant:

(1) The information contained in the Application Form and attachments is true and correct to the best of his or her knowledge and belief and understands that any misrepresentation may result in the cancellation of a Grant and other actions permitted by law and the Grant Agreement.

(2) The Applicant may be required to return all or a portion of the Grant if the Applicant fails to complete the Project as approved. In cases where the Grant will fund permit fees, planning fees, or land acquisition costs as part of an approved Project, the Applicant may be required to return all Grant funds if the Authority cannot determine the associated larger Project has been completed, based on the timelines provided within the Application Form.

(3) Grant funds will be used only for the Project described in the Application Form, unless a change in the Project is approved in writing by the Authority or Authority Staff pursuant to Section 7090.

(4) If a Federal Tax Return Form 990 was submitted in lieu of an Audited Financial Statement, no audit of financial statements was performed for 2004.

(5) The financial records of the Project are subject to audit and inspection by the Authority, California Department of Insurance or its designee, and/or the Commissioner.

(6) The Applicant has disclosed all information requested in the legal status questionnaire.

(7) The Applicant will notify the Authority in writing at the time of Project completion with evidence of completion included.

(8) The Applicant will provide all documents and information required by law and meets all necessary requirements prior to release of the Grant.

NOTE

Authority cited: Sections 15437 and 15438(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Amendment of subsection (d)(4) filed 12-14-2005 as an emergency; operative 12-14-2005 (Register 2005, No. 50). A Certificate of Compliance must be transmitted to OAL by 4-13-2006 or emergency language will be repealed by operation of law on the following day.

3. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

4. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7083. Application Form Evaluation.

Note • History

(a) Application Forms shall be reviewed and evaluated by Authority Staff within 60 days from the filing deadline according to the evaluation criteria described in Section 7084.

NOTE

Authority cited: Sections 15437 and 15438(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

3. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7084. Evaluation Criteria.

Note • History

Authority Staff using a point system, with a maximum of 165 points, will evaluate Grant Applications. Authority Staff shall evaluate each Application Form based on the following criteria:

(a) Population served. (Maximum sixty (60) points).

(1) Uncompensated Care

The Applicants shall be awarded points based on the amount of Uncompensated Care provided to patients, as reflected by the ratio between the number of Uncompensated Care encounters and the number of total patient encounters that were reported by each Applicant in its 2004 annual report on file with the Office of Statewide Health Planning and Development pursuant to Section 1216 of the Health and Safety Code.

SCORING -- The Applicants shall be placed in one of three tiers based on the ratios as calculated by Authority Staff. The Applicants scoring in the upper tier shall receive fifteen (15) points. The Applicants scoring in the middle tier shall receive nine (9) points. The Applicants scoring in the lower tier shall receive zero (0) points.

(2) Indigent Care

The Applicants shall be awarded points based on the amount of care provided to Indigent patients (at or below 200% of the Federal poverty level) as reflected by the ratio between the number of Indigent patients and the number of total patients that are reported by each Applicant in its 2004 annual report on file with the Office of Statewide Health Planning and Development pursuant to Section 1216 of the Health and Safety Code.

(3) Care to the Uninsured Populations

The Applicants shall be awarded points based on the amount of care provided to the uninsured, as reflected by the ratio between the number of uninsured patient encounters and the number of total patient encounters that were reported by each Applicant in its 2004 annual report on file with the Office of Statewide Health Planning and Development pursuant to Section 1216 of the California Health and Safety Code.

(4) Care to the Underserved Populations

These areas include Health Professional Shortage Areas (HPSAs), Medically Underserved Areas (MUAs), or Medically Underserved Populations (MUPs).

SCORING -- Applicants located in federally designated shortage areas shall receive ten (10) points.

(5) Special Needs Populations

Applicants must include third party statistical data to demonstrate the nature and severity of the special needs.

SCORING -- Applicants who serve a Special Needs Population shall receive five (5) points.

(b) Proposed services. (Maximum fifty (50) points) (Points may be awarded under either (1) or (2) but not both.)

Each Applicant shall describe the proposed Project and provide supporting documentation that explains:

(1) How well the proposed Project will expand services to the indigent, underinsured, and uninsured populations, which will be evaluated by the following:

(A) Extent to which the proposed Project reflects a superior understanding and prioritization of community needs, community problems or barriers to accessing health care services within the community, that have been documented by third party sources. (Maximum twenty (20) points)

(B) Amount and importance to community of new services that the Project proposes to provide. (Maximum twenty (20) points)

(C) Extent to which Applicant justifies achievable and convincing outcomes, and methods that will effectively monitor and evaluate those outcomes. (Maximum ten (10) points)

(2) If the Project will not result in net additional or new services to existing or new patients, how well the proposed Project will maintain or improve existing services to indigent, underinsured, and uninsured populations, which will be evaluated by the following: (Maximum forty (40) points)

(A) Extent to which the proposed Project reflects a superior understanding and prioritization of community needs, community problems or barriers to accessing health care services within the community that have been documented by third party sources. (Maximum fifteen (15) points)

(B) Amount and importance to community of services that the Project proposes to maintain that otherwise might be eliminated, or extent to which the proposed Project will improve existing services. (Maximum fifteen (15) points)

(C) Extent to which Applicant demonstrates achievable and convincing outcomes, and methods that will effectively monitor and evaluate those outcomes. (Maximum ten (10) points)

Authority Staff shall review each Applicant's 2004 Audited Financial Statements (or 2004 Federal Tax Form 990) and shall assign points based on the Total Net Assets and Working Capital of the Applicant.

(1) The Total Net Assets of each Applicant shall be evaluated as follows:

Total Net Assets Points

Less than or equal to $250,000 10

$250,000-$500,000 5

$500,000-$750,000 3

$750,000 and above 0

(2) The Working Capital of each Applicant shall be evaluated as follows:

Percent Of Project Points

Less than or equal to 10% 10

11%-30% 5

31%-40% 3

41% and above 0

(d) Project timeline/readiness/feasibility (Maximum of 35 points).

(1) Authority Staff shall determine how well each Applicant demonstrates project timelines/readiness and feasibility based upon the following:

(A) A Project timeline that includes the following (not scored, but required):

1. An expected start date (e.g., construction start date(s) and/or equipment purchase date(s)).

2. An expected completion date (e.g., construction completion date(s), acquisition completion dates, and/or equipment installation date(s)).

3. Problems anticipated in implementing the Project and how problems will be managed to ensure timely completion.

(B) Project readiness after a review of all of the following: (Maximum twenty (20) points)

1. For all Projects with the exception of equipment acquisition Projects, each Applicant shall submit estimates of Project costs and evidence of property ownership or, if the property is leased by a Clinic, a copy of the lease agreement extends at least 5 years from the Completed Project date. The Applicant shall also provide building permits and/or executed construction contracts, if available. An Applicant with a Project that does not yet have an executed construction contract or building permit, but is actively in the process of obtaining one, shall provide a detailed statement that explains the status of obtaining the document.

2. For Projects that include the acquisition of real property, each Applicant shall submit a copy of an executed purchase and sale agreement/option agreement (or status of obtaining one) or other evidence of site control to the satisfaction of the Authority.

3. For equipment acquisition Projects, each Applicant shall submit a specific list of items and cost estimates of equipment or copies of invoices, and if applicable, cost estimates of equipment removal, installation and implementation.

4. If funding sources other than the Grant are required to complete the Project, each Applicant shall provide approval or commitment letters from the other funding sources, confirming that the funding is secured and available in accordance with the Project timeline and budget.

1. Each Applicant shall submit plans for Project implementation that includes credible staffing, operations and reimbursement figures. If the Project will result in an expansion of services, the Applicant shall provide an organization chart identifying key personnel for the expanded services.

2. Each Applicant shall submit a prepared feasibility study, funding letters or other documentation, such as the minutes of the Board of Director meeting in which the project was approved, to demonstrate that the Project will generate sufficient revenues to provide on-going support for new or expanded services and/or research programs. If revenues generated by the Project will be insufficient, the Applicant's revenues shall be sufficient as determined by Authority Staff to provide on-going support.

(D) If the Authority Staff determines at its discretion that the Applicant does not demonstrate timeliness, readiness, or feasibility, applicant MAY NOT be eligible for grant funding.

(e) The sources and uses of funds (not scored but required):

(2) The Applicant shall detail the uses of all funds required to complete the proposed Project. The total uses shall not exceed the total of all available fund sources.

NOTE

Authority cited: Sections 15437 and 15438(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Amendment of subsections (a)(2) and (d)(1)(D) filed 12-14-2005 as an emergency; operative 12-14-2005 (Register 2005, No. 50). A Certificate of Compliance must be transmitted to OAL by 4-13-2006 or emergency language will be repealed by operation of law on the following day.

3. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

4. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7085. Initial Allocation.

Note • History

The Authority Staff shall rank the Application Forms based on the highest scores received. In the event that more than one Applicant has the same score, Authority Staff shall assign those Applicants the same ranking. The Executive Director shall make an Initial Allocation to the Applicants, taking into account the ranking of all Applicants, the total amount of funds requested and the total amount of funds available. In the event total funds requested exceed total funds available, the Executive Director shall make an Initial Allocation according to the following allocation schedule:

(a) The Authority shall allocate available funds to the highest-ranking Applicants, equal to 100 percent of the Applicant's Grant request, to be known as Rank # 1.

(b) The Applicants who score below Rank # 1, will be maintained on a Waiting List, and may be eligible for funding in the Second (2nd) Funding Round, if funds are available.

(c) In the event that Applicants score the same points, Authority Staff will determine ranking based on points scored in the following order: population served, proposed services, financial capacity, and project readiness.

NOTE

Authority cited: Sections 15437 and 15438(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Amendment of subsection (c) filed 12-14-2005 as an emergency; operative 12-14-2005 (Register 2005, No. 50). A Certificate of Compliance must be transmitted to OAL by 4-13-2006 or emergency language will be repealed by operation of law on the following day.

3. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

4. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7086. Broad Geographic Distribution.

Note • History

(a) After the Initial Allocations are made, the Executive Director shall ensure that a minimum of eight million dollars ($8,000,000) has been initially allocated for Projects in each of four (4) regions, including the Central Coast, Los Angeles/Ventura, Northern/Central and Southern California. If any region receives less than eight million dollars ($8,000,000) in total Grant funds, the Initial Allocation to the regions with excessive funds shall be reduced in an amount sufficient to mitigate the deficiency in any region receiving insufficient funds. To accomplish this purpose, funds shall be re-allocated from the lowest scored Applicants in the region with excessive funds to the highest scored Applicants that did not receive Grant funds under the Initial Allocation in the region with insufficient funds.

(b) The distribution of the Total Grant Funds in excess of $32 million allocated to particular regions shall be based solely on points scored by each Applicant, regardless of the Applicant's geographic locations.

(c) In the event that an Applicant appeals to the Authority and the Authority approves the appeal, the funding for the approved appeal will come from excess funding described in subdivision (b) of this Section. To accomplish this purpose, funds shall be re-allocated from the lowest scored Applicants that were identified as eligible for the excess funding.

NOTE

Authority cited: Sections 15437 and 15438(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Amendment of subsection (b) filed 12-14-2005 as an emergency; operative 12-14-2005 (Register 2005, No. 50). A Certificate of Compliance must be transmitted to OAL by 4-13-2006 or emergency language will be repealed by operation of law on the following day.

3. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

4. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7087. Notification of Initial Allocation.

Note • History

When the Initial Allocation of funds has been made to Applicants after taking into account the total amount of funds available, and adjusted to allow for Broad Geographic Distribution, the Authority shall notify each Applicant in writing, stating their score and proposed amount of the Initial Allocation, or the Applicant's position on the Waiting List, if applicable.

NOTE

Authority cited: Sections 15437 and 15438(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

3. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7088. Appeals.

Note • History

(a) Availability. An Applicant may file an appeal of any Initial Allocation. The grounds for any such appeal shall be limited to Applicant eligibility pursuant to Sections 7076 and 7083 No Applicant may appeal the Authority Staff evaluation of an Initial Allocation to another Applicant.

(b) Timing. The appeal shall be submitted in writing and must be received by the Authority no later than ten (10) calendar days following the transmittal date of the notification of Initial Allocation.

(c) Review. The Authority Staff shall review the written appeal based upon the existing documentation submitted by the Applicant when the Application Form was filed. The Authority Staff shall make a finding as to the merit of the appeal and shall notify the Applicant as to the decision no later than ten (10) calendar days after receipt of the appeal. The decision of Authority Staff may be further appealed to the Authority, by written notification to the Executive Director and personal appearance before the Authority. The Executive Director shall notify the Applicant of the date of the Authority meeting at which the matter will be considered.

(d) Successful appeals. If the Authority approves Grant funding to an Applicant on appeal, the funding for the Applicant's Project shall be secured by amending the Initial Allocation, which may result in a reduction or elimination of Grant funds awarded to lower scoring Applicants who would have otherwise received Grant funds. If this occurs, the lower scoring Applicants will be placed on the Applicant Waiting List.

NOTE

Authority cited: Sections 15437 and 15438(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Amendment of subsection (a) filed 12-14-2005 as an emergency; operative 12-14-2005 (Register 2005, No. 50). A Certificate of Compliance must be transmitted to OAL by 4-13-2006 or emergency language will be repealed by operation of law on the following day.

3. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

4. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7089. Approval of Grant and Notification of Grantees.

Note • History

When Initial Allocations have been determined, after taking into account the total funds available, Broad Geographic Distribution and any appeals considered by the Authority, Authority Staff shall recommend to the Authority at its regularly scheduled meeting that the Initial Allocations be approved as Final Allocations. Any Final Allocation approved by the Authority shall be awarded as Grants. Grantees shall be notified within five (5) business days in writing of the amount of the Grant approval.

NOTE

Authority cited: Sections 15437 and 15438(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

3. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7090. Any Remaining Funds.

Note • History

If there are any remaining funds after the First (1st) Funding Round, the Authority may, in its sole discretion, award Grants to those Applicants on the Waiting List in a Second (2nd) Funding Round. After funding Grants to Applicants on the Waiting List, the Authority may, in its sole discretion, award Grants in a manner that is consistent with the purpose and requirements of the program.

NOTE

Authority cited: Sections 15437 and 15438.6(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

3. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7091. Approval of Grant Use Change.

Note • History

The Authority or the Authority Staff may, on a case-by-case basis, consider a change in the use of the Grant if the Grantee demonstrates, to the Authority or the Authority Staff's satisfaction, that the change is consistent with the program.

NOTE

Authority cited: Sections 15437 and 15438.6(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

3. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7092. Grant Agreements.

Note • History

The terms and conditions of a Grant shall be set forth in a Grant Agreement, which shall include, but not be limited to, all of the following terms and conditions:

(a) A Grant amount not greater than the maximum Grant amount shown under Section 7078.

(b) A Project Period. The project period may be extended at the discretion of the Authority, pursuant to Section 7095.

(d) A provision that any unused funds and any unused investment earnings on such Grant funds shall revert to the Authority.

(e) Agreement to comply with the Community Clinic Grant Program of 2005 and these regulations.

(g) Agreement to comply with state and federal laws outlawing discrimination, including, but not limited to those prohibiting discrimination because of sex, race, color, ancestry, religion, creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (including cancer or genetic characteristics), sexual orientation, political affiliation, position in a labor dispute, age, marital status, and denial of statutorily-required employment-related leave.

(h) Agreement that continued compliance with Community Clinic Grant Program of 2005 requirements is the Grantee's responsibility.

(i) Agreement that the Grant shall only be used for Projects as described in Grantee's Application Form and approved by the Authority.

(j) Any audit provisions.

(k) Agreement that the Grantee will not dispose of any component of the Project before the end of the useful life of that component of the Project.

(l) Any provisions relating to lease agreements pursuant to Section 7094.

(m) Any other provisions required by the Authority.

NOTE

Authority cited: Sections 15437 and 15438(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Amendment of subsection (g) and repealer and new Note filed 12-14-2005 as an emergency; operative 12-14-2005 (Register 2005, No. 50). A Certificate of Compliance must be transmitted to OAL by 4-13-2006 or emergency language will be repealed by operation of law on the following day.

3. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

4. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7093. Release of Funds.

Note • History

(a) No Grant funds shall be released to a Grantee until the following information has been provided to the satisfaction of Authority Staff:

(1) For construction projects, any supporting documentation that was incomplete with the Application Form shall be finalized and submitted along with a copy of the executed construction contract and the building permit.

(2) For real property acquisition Projects, a copy of the executed purchase and sale agreement/option agreement and a copy of an appraisal reflecting that the appraised value of the real property (when added to the amount of reasonable transaction and closing costs) is not less than the sum of the Grant and all other funding sources necessary to acquire the Project. The appraisal shall be no older than six months and shall be completed by a state certified appraiser.

(3) For all construction Projects, evidence of property ownership or if the property is leased to a Clinic, a copy of the lease agreement that satisfies the requirement of Section 7094. Construction contracts in excess of $25,000 require copies of three (3) bids, exceptions to this policy will be considered on a case by case basis, with adequate justification.

(4) For equipment acquisition Projects, any supporting documentation that was incomplete when the Application Form was submitted or not provided at that time shall be finalized and submitted along with a list of items to be purchased and all purchase orders. Any single equipment, furnishing, or information technology item in excess of $25,000 requires copies of three (3) bids, exceptions to this policy will be considered on a case-by-case basis, with adequate justification.

(5) Evidence that all other funds, if needed, are in place to complete Project.

(6) An executed Grant Agreement.

(7) When applicable, evidence that there are no outstanding issues related to the California Environmental Quality Act or any other applicable laws, if this information was not provided with the Application Form.

(8) Completed Grant Disbursement Forms.

(b) Grantee shall provide this information within twelve (12) months of the date of Final Allocation for the corresponding funding round or the grant will be forfeited to the Authority except in cases where the recipient demonstrates, to the satisfaction of the Authority, extraordinary circumstances that prevent the recipient from meeting this requirement.

(c) Documentation provided for the release of Grant funds shall clearly show that the Grant award does not exceed the cost of the Project.

(d) Grant funds shall be released in one (1) lump disbursement only, with exceptions to be approved on a case-by-case basis by the Authority Staff.

(e) The Authority shall retain 10 percent of the Final Allocation amount for each applicant until adequate Project completion documentation has been provided.

NOTE

Authority cited: Sections 15437 and 15438.6(d), Government Code. Reference: Sections 15438(t) and 15438.6, Government Code.

HISTORY

2. Amendment of subsections (a)(3) and (b) filed 12-14-2005 as an emergency; operative 12-14-2005 (Register 2005, No. 50). A Certificate of Compliance must be transmitted to OAL by 4-13-2006 or emergency language will be repealed by operation of law on the following day.

3. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

4. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7094. Requirements for Construction Projects on Leased Property.

Note • History

If a Clinic proposes to use Grant funds for a Project other than equipment acquisition on property where the Clinic is a lessee under a lease agreement, the following requirements shall be satisfied prior to any release of Grant funds pursuant to Sections 7093:

(1) The lease agreement shall provide the Clinic full access to the site to carry on its healthcare purposes. The term of the lease agreement must be at least 5 years.

(2) The Grant Agreement must provide that if the lease agreement is terminated prior to the term provided in (1) above, the Authority is entitled to recover the Grant funds pursuant to Section 7096.

(3) No Projects on leased property shall include improvements to any common areas that are shared with other tenants or areas that are not leased by the lessee Clinic under the lease agreement.

(4) Prior to approval of the Grant by the Authority, the Applicant shall submit the proposed lease agreement for review.

NOTE

Authority cited: Sections 15437 and 15438.6(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. New Note filed 12-14-2005 as an emergency; operative 12-14-2005 (Register 2005, No. 50). A Certificate of Compliance must be transmitted to OAL by 4-13-2006 or emergency language will be repealed by operation of law on the following day.

3. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

4. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7095. Completion of Grant Funded Project.

Note • History

(a) The Grantee shall certify to the Authority that the Project is complete and, to the extent not already provided to the Authority, provide supporting documentation as follows:

1. Construction Projects require documentation including, but not limited to, copies of the certificate of occupancy, final payment certification by the architect, final payment request from the contractor and corresponding copies of cancelled checks or other documentation supporting payment.

2. Real property acquisition Projects require a copy of the final closing statement with certification by the title company.

3. Equipment acquisition Projects require complete packages of purchase orders, invoices and copies of cancelled checks or other documentation supporting payment.

(b) If the Grantee fails to complete the Project within eighteen (18) months from the Final Allocation date (plus any Authority or Authority Staff approved extensions), the Authority may require remedies, including forfeiture and return of the Grant to the Authority.

(c) On a case-by-case basis, the Authority or the Authority Staff may approve a time extension beyond 18 months for extraordinary or unavoidable delays where the Grantee can demonstrate that it occurred through no fault of its own.

(d) Documentation provided to establish the completion of a Project should clearly show that the Grant award did not exceed the cost of the Project.

(e) Upon receipt of acceptable documentation exhibiting project completion, the Authority shall release the 10 percent retention of Grant funds to the Grantee.

NOTE

Authority cited: Sections 15437 and 15438(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

3. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7096. Recovery of Funds for Non-Performance and Unused Funds.

Note • History

(a) If the Authority determines that Grants were not used consistent with the Community Clinic Grant Program of 2005 requirements and the terms of the Grant Agreement for an approved Project, the Authority may require remedies, including a return of all Grant funds.

(b) In cases where Grant funds paid for a component of a Project that does not specifically benefit Program targeted patients, such as permit fees, planning fees, or land acquisition costs, and if the Authority determines the Grantee did not complete a larger Project as described in the timelines provided with the Application, the Authority may require remedies, including a return of all Grant funds.

(c) If any portion of the Grant is forfeited to the Authority, the forfeited funds shall be allocated to the highest scoring Applicant that did not receiving an Allocation.

NOTE

Authority cited: Sections 15437 and 15438(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

3. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7097. Audits.

Note • History

The Authority Staff, California Department of Insurance or its designee, Commissioner, or Bureau of State Audits may conduct periodic audits/site visits to ensure Grantees are using Grant funds consistent with approved Projects. Grantees shall retain all Program documentation and financial data necessary to substantiate the purposes for which the Grant funds were spent for a period of three (3) years after the certification of completion of the Project has been submitted.

NOTE

Authority cited: Sections 15437 and 15438.6(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

3. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7098. Reporting Requirements.

Note • History

(a) The Authority shall provide notice to the Commissioner upon approving or denying any application from any Clinic. The Authority shall provide annual reports to the Commissioner and shall include at a minimum, total dollars awarded in Grants, description of each Project funded in the period reported upon, the amount awarded to each Applicant, as well as a list of all Applicants who did not receive assistance and the reasons for such denial.

(b) Pursuant to Section 15438.6(i) of the Government Code, the Authority shall report to the Joint Legislative Budget Committee on the recipients of grant funds, the total amount of each grant and the purpose for which each grant was awarded.

NOTE

Authority cited: Sections 15437 and 15438(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Amendment of subsection (a) and new Note filed 12-14-2005 as an emergency; operative 12-14-2005 (Register 2005, No. 50). A Certificate of Compliance must be transmitted to OAL by 4-13-2006 or emergency language will be repealed by operation of law on the following day.

3. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

4. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

§7099. Administration of the Program.

Note • History

Wellpoint Health Networks Inc. has made a one-time $35 million contribution payable to the Authority, who will administer and distribute funds for the program. Per agreement, all of the $35 million, plus interest earned on those funds shall be used for Grants to Applicants. No funds shall be used for any other purpose, including administration of the program.

NOTE

Authority cited: Sections 15437 and 15438(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.

HISTORY

2. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

3. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

Chapter 4. California Health Access Model Program

Article 1. Demonstration Project Grants

§7100. Definitions.

Note • History

For purposes of this Article, unless otherwise indicated, the words and phrases defined in section 15432 of the Government Code shall have the same meaning where used herein. In addition, the following words and phrases shall have the meaning as described below:

“Applicant” means an entity that has been determined by Authority staff to meet the requirements of sections 7102 and 7103, has been invited to submit and has submitted a Grant Application.

“Authority” means the California Health Facilities Financing Authority.

“Commitment Letter” means a letter prepared by the Authority pursuant to section 7108 and which expresses the Authority's commitment to provide grant funds to an Applicant following compliance with the conditions and requirements contained therein.

“Community Settings” means places where vulnerable populations live and/or congregate, including but not limited to, schools, adult or child day care centers, community centers, and residential care facilities.

“Cost” or “Costs” means project-related expenses identified in an Application and which are subsequently approved by the Authority.

“Demonstration Project” means a project designed to demonstrate innovative methods for delivering cost-effective, quality Health Care Services that improve access to health care for Vulnerable Populations or Communities and enhance health outcomes.

“Grant Agreement” means an agreement between the Authority and a Grantee that consists of the terms and conditions as required pursuant to section 7109 and pursuant to which grant funds will be disbursed.

“Grantee” means an Applicant that has been awarded a Demonstration Project grant and has executed a Grant Agreement as required by the Authority.

“Health Care Services” means services, including, but not limited to, medical, mental, dental or preventive services for the diagnosis, care, prevention and treatment of human illness, or individuals with physical, mental or developmental disabilities.

“Interested Party” means an entity that has submitted a Letter of Interest.

“Letter of Interest” means a letter submitted by an Interested Party that complies with the requirements of Section 7104.

“Partnership” means two or more entities working in collaboration on a Demonstration Project designed to address health care access for Vulnerable Populations in Community Settings.

“Vulnerable Populations or Communities” means places or groups of people in California with special risks for poor health status and fewer available Health Care Services and other resources.

NOTE

Authority cited: Sections 15437, 15438(a) and 15438.10(b), Government Code. Reference: Section 15438.10, Government Code.

HISTORY

1. New chapter 4, article 1 (sections 7100-7112) and section filed 2-7-2013; operative 2-7-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 6).

§7101. Purpose.

Note • History

(a) Pursuant to Government Code section 15438.10, the Authority shall award up to a total of $1,500,000 in grants to one or more eligible Demonstration Projects designed to:

(1) demonstrate cost-effective and innovative methods of delivering quality Health Care Services;

(2) improve access to health care, including preventive services, for Vulnerable Populations or Communities; and

(3) enhance health outcomes.

(b) The purpose of this Article is to provide for a process by which grant funds will be allocated to an eligible Demonstration Project or Projects.

NOTE

Authority cited: Sections 15437, 15438(a) and 15438.10(b), Government Code. Reference: Section 15438.10, Government Code.

HISTORY

1. New section filed 2-7-2013; operative 2-7-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 6).

§7102. Eligible Applicant.

Note • History

(a) The following entities are eligible to apply for a Demonstration Project grant on its own behalf or on behalf of a Partnership:

(1) A nonprofit or public health facility;

(2) An association that represents nonprofit health care facilities or providers of Health Care Services;

(3) A health care advocacy organization that represents underserved or medically Vulnerable Populations or Communities; or

(4) A nonprofit or public institution of higher education or other nonprofit or public research entity.

(b) The following entities are not eligible to apply or receive funding for a Demonstration Project grant but may participate in a Partnership:

(1) For profit entities and associations or organizations that represent them.

(2) National and out-of-state entities, unless such entities have an established and significant presence within California, as determined by the Authority, and further only if such entities can demonstrate that the Demonstration Project is located in California and that all grant funds will be expended in California.

(3) A health facility that has had tax-exempt bonds issued by the Authority on its behalf, unless such health facility qualifies as a “small and rural hospital” pursuant to section 124840 of the Health and Safety Code.

(1) It complies with subdivisions (a) and (b) of this section;

(2) It has a track record of success in coordinating and managing grant-funded projects; and

(3) It or a partner participating with the Applicant on the Demonstration Project has an established track record of successful projects and partnerships designed to change systems and policies to improve health care delivery.

NOTE

Authority cited: Sections 15437, 15438(a) and 15438.10(b), Government Code. Reference: Section 15438.10, Government Code.

HISTORY

1. New section filed 2-7-2013; operative 2-7-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 6).

§7103. Minimum Requirements for an Eligible Demonstration Project.

Note • History

(a) To be eligible for consideration, a proposed Demonstration Project must include the following elements:

(1) an innovative model of Health Care Service delivery it is currently demonstrating and evaluating;

(2) community or institutional settings in which the Health Care Service will be demonstrated;

(3) specific, Vulnerable Populations or Communities which the Health Care Service is designed to benefit;

(4) evidence that the Demonstration Project is underway to the extent that demonstration sites are currently delivering care and collecting data under the model being demonstrated, and that goals for the Demonstration Project can be substantially achieved within eighteen months after a grant is awarded;

(5) a focus on prevention and early intervention within a continuum of quality health care that includes disease management;

(6) a strong evaluation and/or research plan to measure improved access and/or health outcomes and to assess the cost-effectiveness of the model;

(7) financial support that, in addition to a grant that may be awarded by the Authority, will be sufficient to complete an evaluation that analyzes the results of the Demonstration Project and reaches conclusions regarding the replication of the Health Care Service delivery model;

(8) potential opportunities to replicate the model in multiple communities in California and to leverage additional funding to support replication and sustainability of the model if the outcomes of the Demonstration Project warrant expansion; and

(9) a Partnership that collectively has the capacity to develop, implement, and evaluate the Demonstration Project, and promote and assist with the replication of the model. The Partnership may include, but need not be limited to:

(A) nonprofit and/or public health facilities to provide services at demonstration locations;

(B) institutions of higher education or other research institutions to provide or guide research and/or evaluation; or

(C) organizations that address public policy issues to assist in affecting policy changes needed for the sustainability and replication of the Demonstration Project model.

NOTE

Authority cited: Sections 15437, 15438(a) and 15438.10(b), Government Code. Reference: Section 15438.10, Government Code.

HISTORY

1. New section filed 2-7-2013; operative 2-7-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 6).

§7104. Letter of Interest to Apply for Demonstration Grant.

Note • History

(a) No later than 30 days following the effective date of this Article, the Authority will post information on its website (www. treasurer.ca.gov/chffa) regarding the process by which Interested Parties may submit Letters of Interest, including the deadline for submitting the Letters of Interest. To be considered eligible to apply for a Demonstration Project grant, an Interested Party must submit a Letter of Interest, plus two copies, by hand-delivery or mail to the Authority's Sacramento Office, by the posted deadline, which shall be 60 days after the date of the Authority's posting to its website. Alternatively, one copy of the Letter of Interest may be emailed as a PDF attachment to the Authority at chffa@treasurer.ca.gov so that the Authority receives the Letter of Interest no later than the time and date indicated in the Authority's notice. Letters of Interest received after the posted deadline or which are insufficient for Authority staff to determine the eligibility of the Applicant pursuant to section 7102 or the Demonstration Project pursuant to section 7103 will not be considered.

(b) The Letter of Interest must be limited to ten pages and include the following information:

(1) Amount of grant funds requested.

(2) Brief description of how grant funds are proposed to be used.

(3) Description of the Demonstration Project.

(4) Description of phases and projected timeline for the Demonstration Project including, at a minimum, current status, milestones for evaluation of the success of the model, and timing of the completion of the Demonstration Project.

(5) Specific information that describes how the Interested Party meets the Eligible Applicant requirements in section 7102.

(6) Specific information that describes how the proposed Demonstration Project meets the minimum requirements for an Eligible Demonstration Project in Section 7103.

(7) A statement signed by an individual authorized to commit the Applicant and Partnership attesting to the accuracy of the information contained in the Letter of Interest and the Applicant and Partnership's intent to comply with the Authority's requirements if awarded a Demonstration Project grant.

NOTE

Authority cited: Sections 15437, 15438(a) and 15438.10(b), Government Code. Reference: Section 15438.10, Government Code.

HISTORY

1. New section filed 2-7-2013; operative 2-7-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 6).

§7105. Evaluation of Demonstration Project Letters of Interest.

Note • History

(a) Following the deadline for submission of Letters of Interest, Authority staff shall have up to 60 days to evaluate submitted Letters of Interest as described in this section. Authority staff will:

(1) Determine whether each Letter of Interest was received by the deadline and includes all required information;

(2) Determine whether each remaining Letter of Interest has been submitted by an Eligible Applicant, as described in Section 7102; and

(3) For each Letter of Interest submitted by an Eligible Applicant, Authority staff will then determine whether the Letter of Interest meets the Minimum Requirements for an Eligible Demonstration Project as described in Section 7103.

(b) Solely at the discretion of the Authority staff, Interested Parties that meet the requirements of Sections 7102 and 7103 will be invited to submit an Application.

NOTE

Authority cited: Sections 15437, 15438(a) and 15438.10(b), Government Code. Reference: Section 15438.10, Government Code.

HISTORY

1. New section filed 2-7-2013; operative 2-7-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 6).

§7106. Demonstration Project Application Requirements.

Note • History

(a) No more than 30 days following the evaluation provided for in section 7105, the Authority will post to its website (www.treasurer.ca.gov/chffa) a list of the Interested Parties that will be invited to submit an application for grant funding. The Authority will also notify the Interested Parties invited to submit an application by email or mail. The notice will include information regarding the deadline for submission of an Application, which shall be 60 days from the date of the notice, and the required format for the Application, including the maximum number of pages. Applications received after the posted deadline or not submitted in the required format will not be considered.

(b) At a minimum, to be considered by the Authority, an Application must include:

(1) a more detailed description of the elements required for a Letter of Interest as described in section 7104;

(2) a proposed budget in line item detail for Authority grant funds, if awarded to the Applicant, including a description of the specific purposes for which grant funds will be used;

(3) a description of other funding sources, including amount, source, and a description of restrictions of use placed on those funds, if any;

(4) a description of significant barriers to completion of the Demonstration Project and the Applicant's plan for overcoming those barriers;

(5) a description of significant barriers to replication of the service delivery model, including policy challenges, and the Applicant's plan for overcoming those barriers;

(6) a description of the proposed role the Applicant and its partners will have in the replication phase;

(7) a description of any available data that has already been produced that addresses the likely success of the Demonstration Project and its replicability;

(8) a list of references to journal articles and other reputable sources, if any, that support the model's design;

(9) Memoranda of understanding among partners and letters of support, if any;

(10) if any of the partners are ineligible to receive grant funding pursuant to section 7102(b), a description of the steps the Applicant will take to ensure that such partners will not receive grant funds; and

(11) information regarding the legal status of the Applicant and the partners collaborating with the Applicant on the Demonstration Project, including such information as investigations, audits, and civil or criminal matters that may raise questions regarding the Applicant's legal or financial viability or that of the Applicant's partners.

NOTE

Authority cited: Sections 15437, 15438(a) and 15438.10(b), Government Code. Reference: Section 15438.10, Government Code.

HISTORY

1. New section filed 2-7-2013; operative 2-7-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 6).

§7107. Evaluation of Demonstration Project Grant Application.

Note • History

(a) Following the deadline for submission of Applications, Authority staff shall evaluate the Applications based on the following criteria:

(1) The likelihood of success of the Demonstration Project in improving access cost-effectively and/or enhancing health care outcomes for the identified Vulnerable Populations or Communities (30%);

(2) The likelihood of success in replication of the service delivery model (20%);

(3) The level of expertise and resources of the Applicant and its partners (20%);

(4) The quality of the evaluation and research component of the Demonstration Project (15%); and

(5) The level of commitment from other entities, including funding, personnel, and other resources (15%).

(b) The Authority reserves the right for Authority staff to request additional information and conduct interviews and/or site visits with some or all of the Applicants to assist in its evaluation of the Applications.

NOTE

Authority cited: Sections 15437, 15438(a) and 15438.10(b), Government Code. Reference: Section 15438.10, Government Code.

HISTORY

1. New section filed 2-7-2013; operative 2-7-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 6).

§7108. Award of Demonstration Project Grants and Commitment Letter.

Note • History

(a) A maximum of $1.5 million in grant funds may be disbursed by the Authority to successful Applicants. The Authority reserves the right to award all available grant funds to one Applicant, award multiple grants totaling a maximum of $1.5 million to multiple Applicants, or to not award any grant to any Applicant.

(b) Upon completion of the Application evaluation described in section 7107, the Authority board, at an open meeting held in compliance with the Bagley-Keene Open Meeting Act (commencing at Government Code section 11120), shall make the final determination regarding the award of Demonstration Project Grants.

(c) The Authority shall notify the successful Applicant(s) by a letter committing the Authority to provide grant funds so long as the Applicant strictly complies with the terms and conditions contained in the Commitment Letter. The Commitment Letter shall include all of the following:

(1) Name(s) of the Grantee.

(2) Grant amount.

(3) The date when the commitment expires.

(4) A description of the Costs to be funded by the grant.

(5) Disbursement of funds is conditional on execution of a Grant Agreement and other conditions as deemed appropriate by the Authority.

(6) A statement that the Authority reserves the right to modify or cancel the commitment upon failure of the Applicant to execute a Grant Agreement that includes all of the terms and conditions set forth in the Commitment Letter or otherwise required by this Article, or if the Authority becomes aware of any matter which, if known at the time of Application review and approval, would have resulted in the Application not being approved.

NOTE

Authority cited: Sections 15437, 15438(a) and 15438.10(b), Government Code. Reference: Section 15438.10, Government Code.

HISTORY

1. New section filed 2-7-2013; operative 2-7-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 6).

§7109. Demonstration Project Grant Agreement(s).

Note • History

(a) The terms and conditions of a Demonstration Project grant shall be set forth in a Grant Agreement executed by the Grantee and the Authority and shall include, but not be limited to, all of the following terms:

(1) That grant funds may only be expended within California;

(2) That grant funds may supplement but not supplant existing financial and/or resource commitments;

(3) The grant amount approved by the Authority;

(4) A description of the Costs determined to be eligible by the Authority and that the Grantee agrees to use grant funds only for such Costs;

(5) That the Grantee will use grant funds only for purposes described in its Application;

(6) The term of the Grant Agreement which shall coincide with the Demonstration Project's projected completion date as indicated in the Application;

(7) That grant funds shall be disbursed consistent with the provisions of section 7110;

(8) That any health facility as defined in Government Code section 15432(d) that participates in the Demonstration Project may not claim the funding provided by the Authority toward meeting its community benefit and charity care obligations;

(9) That any health facility as defined in Government Code section 15432(d), other than such health facility that qualifies as a “small and rural hospital” pursuant to Section 124840 of the Health and Safety Code, that has received bond financing from the Authority shall not receive any of the grant funds;

(10) That the Grantee will comply with the Authority's statutes and regulations;

(11) That the Grantee shall defend, indemnify and hold harmless the Authority and the State, and all officers, trustees, agents and employees of the same, from and against any and all claims, losses, costs, damages, or liabilities of any kind or nature, whether direct or indirect, arising from or relating to the grant, the Demonstration Project or this program;

(12) That the Grantee will comply with laws outlawing discrimination including, but not limited to those prohibiting discrimination because of sex, race, color, ancestry, religion, creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition, sexual orientation, political affiliation, position in a labor dispute, age, marital status, and denial of statutorily-required employment-related leave;

(13) That compliance with the program requirements is the Grantee's responsibility;

(14) That Authority staff may perform site visits during the term of the Grant Agreement;

(15) Reporting Requirements as described in section 7110;

(16) Audit provisions; and

(17) Any other provision agreed to by the Grantee and Authority.

NOTE

Authority cited: Sections 15437, 15438(a) and 15438.10(b), Government Code. Reference: Section 15438.10, Government Code.

HISTORY

1. New section filed 2-7-2013; operative 2-7-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 6).

§7110. Demonstration Project Reporting Requirements; Release of Funds.

Note • History

(a) Grantee shall provide quarterly status reports to the Authority that shall include:

(1) A description of activities performed for the Demonstration Project for the previous three months;

(2) A spreadsheet detailing expenditures and copies of invoices and cancelled checks or other documentation satisfactory to the Authority of incurred Costs covered by grant funds that shows those expenditures were project-related and consistent with Cost information submitted in the Application and/or projections described in Section 7110(a)(3);

(3) Documentation such as contracts, purchase orders, or other evidence satisfactory to the Authority that demonstrates projected Costs in the next quarter to be covered by grant funds and a request for disbursement of grant funds based on that documentation.

(4) A summary of data and/or preliminary evaluation results available to date;

(5) A description of remaining work to be completed for the Demonstration Project and an estimated time schedule for completion of that work;

(6) A description of whether the Demonstration Project is within proposed budget and, if not, the reasons for any differences and what actions will be taken to insure that the Demonstration Project has sufficient funding for completion; and

(7) An updated assessment of barriers to successful replication of the Demonstration Project's delivery model.

(b) The quarterly status reports required pursuant to subsection (a) of this section shall be provided within 45 days following the completion of the quarters ending on March 30, June 30, September 30, and December 31, of each year during the term of the Grant Agreement, except the report for the final quarter, when section 7111(a) final report requirements apply.

(c) The Authority shall not disburse funds unless the Applicant has executed a Grant Agreement and any other documents, as required to verify to the satisfaction of the Authority any information asserted in the Applicant's Application, and is in compliance with all conditions precedent to disbursement contained in the aforementioned agreement.

(d) Upon execution of the Grant Agreement, 25% of the grant funds for which the Demonstration Project is eligible shall be disbursed to the Grantee. Following each subsequent quarter and compliance with the reporting requirement contained in this section, to the satisfaction of the Authority, additional grant funds may be disbursed based on the documentation provided in the Grantee's quarterly report for projected Costs. In addition, to the extent already-disbursed grant funds were insufficient to cover documented project-related, approved expenditures, the Authority may disburse additional grant funds to cover those Costs.

(e) Grant funds disbursement shall be no more frequently than quarterly and shall be made only following receipt and approval by the Authority of each quarterly report.

(f) Each disbursement request shall be submitted in conjunction with the applicable quarterly report.

(g) Failure to comply with the reporting requirements contained in this section shall result in the Authority withholding requested fund disbursements.

(h) Upon receipt of the documentation described in this section 7110, the Authority, in its sole discretion, shall authorize the disbursement of funds to the Grantee.

NOTE

Authority cited: Sections 15437, 15438(a) and 15438.10(b), Government Code. Reference: Section 15438.10, Government Code.

HISTORY

1. New section filed 2-7-2013; operative 2-7-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 6).

§7111. Completion of Grant Funded Projects; Records Retention.

Note • History

(a) Upon completion of the Demonstration Project, the Grantee shall certify to the Authority within 45 days that the Demonstration Project is complete and provide a final report that describes the results of the Demonstration Project, recommending whether or not to proceed with a replication grant program, and describing conditions and resources needed for successful replication.

(b) If the Grantee fails to complete the Demonstration Project within the term of the Grant Agreement, the Authority may require remedies, including forfeiture and return of grant funds to the Authority.

(c) On a case-by-case basis, the Authority or the Authority staff may extend the term of the Grant Agreement for extraordinary or unavoidable delays where the Grantee can demonstrate that it occurred through no fault of its own.

(d) Grantees shall retain all program and financial data necessary to substantiate the purposes for which the funds were spent for a period of three years after the certification of completion of the Demonstration Project has been submitted. Grantees shall provide supporting documentation (e.g., progress reports, work plans, program budgets, receipts, etc.) upon request to the Authority staff or auditors or other consultants retained by the Authority to review the Demonstration Project.

NOTE

Authority cited: Sections 15437, 15438(a) and 15438.10(b), Government Code. Reference: Section 15438.10, Government Code.

HISTORY

1. New section filed 2-7-2013; operative 2-7-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 6).

§7112. Recovery of Funds for Non-Performance and Unused Funds.

Note • History

(a) If the Authority determines that the use of the grant funds did not comply with program requirements or the terms of the Grant Agreement for an approved Demonstration Project, the Authority may require remedies, including a return of all grant funds.

(b) At the conclusion of the term of the Grant Agreement, any unexpended grant funds committed to the Demonstration Project shall be retained by the Authority.

NOTE

Authority cited: Sections 15437, 15438(a) and 15438.10(b), Government Code. Reference: Section 15438.10, Government Code.

HISTORY

1. New section filed 2-7-2013; operative 2-7-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 6).

Division 11. California Pollution Control Financing Authority

(Originally Printed 3-25-73)

FOREWORD

The authorization for the State of California to issue Pollution Control Revenue Bonds was passed by a vote of the people November 7, 1972 (Proposition 3). Enabling legislation (Assembly Bill 1925, Knox) was passed by the State Legislature during the 1972 Regular Session. It was approved by the Governor and filed with the Secretary of State on December 19, 1972 (Chapter 1257, Statutes of 1972), and was titled the California Pollution Control Financing Authority Act. The effective date of Chapter 1257 was March 7, 1973. Several amendments were made by Assembly Bill 542, Knox (Chapter 277, Statutes of 1973) which was effective August 15, 1973. Further amendments have been made by Assembly Bill 4108, Knox (Chapter 1473, Statutes of 1974), Assembly Bill 2126, Knox (Chapter 1165, Statutes of 1975, Assembly Bill 1758, Lewis (Chapter 957, Statutes of 1975), Assembly Bill 2105, Dills (Chapter 1381, Statutes of 1976), Assembly Bill 3750, Knox (Chapter 1384, Statutes of 1976), Assembly Bill 855, Knox (Chapter 650, Statutes of 1977), Assembly Bill 1558, Hart (Chapter 1082, Statutes of 1977), Assembly Bill 121, Lewis (Chapter 1195, Statutes of 1977), Assembly Bill 980, Knox (Chapter 839, Statutes of 1979), Assembly Bill 2646, Bates (Chapter 794, Statutes of 1980), and Senate Bill 216, Boatwright (Chapter 1091, Statutes of 1981). The legislation relating to the Act and the Authority is contained in Division 27 of the Health and Safety Code (commencing with Section 44500).

Article 1. General Provisions

§8001. Objectives.

Note • History

The California Pollution Control Financing Authority shall act in such a manner as to achieve the objectives outlined in Sections 44501 and 44502 of the Health and Safety Code.

NOTE

Authority cited: Section 44525, Health and Safety Code. Reference: Division 27, commencing with Sections 44500, et. seq., Health and Safety Code.

HISTORY

1. New Chapter 11 (Sections 8001-8048, not consecutive) filed 8-21-73 as procedural and organizational; effective upon filing (Register 73, No. 34).

2. Amendment to section and NOTE filed 2-17-77; effective thirtieth day thereafter (Register 77, No. 8).

Article 2. Definitions

§8020. Terms/Definitions.

Note • History

The following terms and definitions shall be used in the manner described below, when used in this Chapter.

(a) “Act” means the California Pollution Control Financing Authority Act, Division 27, commencing with Section 44500 of the Health and Safety Code.

(b) “Applicant” means the person, company, corporation, partnership, entity or group of entities requesting financing pursuant to Section 8031 of these Regulations.

(d) “Authority Fund” means the California Pollution Control Financing Authority Fund.

(e) “Bonds” means any negotiable bonds, notes, debentures, or other securities which the Authority is authorized to issue pursuant to the Act.

(f) “Chair” or “Chairman” means the Chairman of the California Pollution Control Financing Authority.

(g) “Conventional loan” means any loan agreement, note or other evidence of indebtedness entered into with or issued by an applicant to a bank, thrift or other financial institution or firm which is regularly in the business of extending credit, and which is not related to the applicant.

(h) “Effective Interest Rate” means the actual cost payable by an applicant to obtain financing. The cost includes the cost of issuing the bond or completing a conventional loan, cost of obtaining a letter of credit, surety, insurance policy or other credit enhancement, and the interest rate payable on the bond or conventional loan.

(i) “Executive Director” means the Executive Director of the California Pollution Control Financing Authority.

(j) “Member” means a member of the California Pollution Control Financing Authority.

(k) “Request” means the application form and documents related thereto on which the Authority accepts requests for financing.

(l) “Small Business” means any person, company, corporation, partnership or entity that is classified as a small business pursuant to any of the size standards set forth in Title 13, Code of Federal Regulations, Part 121, Subpart A (1-1-94 Edition), which are incorporated herein by reference, or any person, company, corporation, partnership or entity that (together with affiliates) employs no more than 500 employees.

(m) “Small Business Assistance Fund” means the fund established by the Authority in Section 8041 pursuant to Health and Safety Code Section 44548.

NOTE

Authority cited: Section 44520, Division 27, Health and Safety Code. Reference: Sections 44520, 44526 and 44548, Division 27, Health and Safety Code.

HISTORY

1. Amendment of subsection (a) filed 3-8-74; effective thirtieth day thereafter (Register 74, No. 10).

2. Amendment filed 2-17-77; effective thirtieth day thereafter (Register 77, No. 8).

3. Amendment filed 2-21-80; effective thirtieth day thereafter (Register 80, No. 8).

4. Amendment filed 6-3-83; effective thirtieth day thereafter (Register 83, No. 23).

5. Amendment filed 7-3-86; effective upon filing pursuant to Government Code section 11346.2(d) (Register 86, No. 27).

6. Amendment of subsection (k) filed 3-19-92 as an emergency; operative 3-19-92 (Register 92, No. 13). A Certificate of Compliance must be transmitted to OAL 7-17-92 or emergency language will be repealed by operation of law on the following day.

7. Certificate of Compliance as to 3-19-92 order transmitted to OAL 7-30-92 and filed 9-9-92 (Register 92, No. 37).

8. Amendment of subsection (k) filed 4-8-93 as an emergency; operative 4-8-93 (Register 93, No. 15). A Certificate of Compliance must be transmitted to OAL 10-5-93 pursuant to Health and Safety Code section 44520 or emergency language will be repealed by operation of law on the following day.

9. Certificate of Compliance as to 4-8-93 order transmitted to OAL 8-10-93 and filed 9-7-93 (Register 93, No. 37).

10. Editorial correction of History 8 (Register 93, No. 37).

11. Amendment filed 1-31-94 as an emergency; operative 1-31-94 (Register 94, No. 5). A Certificate of Compliance must be transmitted to OAL by 7-30-94, pursuant to Health and Safety Code section 44520, or emergency language will be repealed by operation of law on the following day.

12. Amendment refiled 7-21-94 as an emergency, including additional amendment of subsection (l); operative 7-31-94 (Register 94, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-27-95 pursuant to Health and Safety Code section 44520 or emergency language will be repealed by operation of law on the following day.

13. Certificate of Compliance as to 7-21-94 order including amendment of subsection (l) transmitted to OAL 1-26-95 and filed 3-9-95 (Register 95, No. 10).

Article 3. General Provisions Relating to Authority Actions

§8030. Meetings.

Note • History

(a) Regular meetings of the Authority will be held on the third Wednesday of each month at Sacramento, California unless the Authority orders a change in meeting dates.

(b) The Chairman shall designate the location of the meeting in the notice calling such meeting.

NOTE

Authority cited: Section 44520, Division 27, Health and Safety Code. Reference: Sections 44520 and 44534, Division 27, Health and Safety Code; and Section 11125, Government Code.

HISTORY

1. Repealer of former Article 3 (Sections 8030-8032) and renumbering and amendment of former Article 4 (Sections 8040-8048, not consecutive) to Article 3 (Sections 8030-8038, not consecutive) filed 6-3-83; effective thirtieth day thereafter (Register 83, No. 23). For prior history, see Registers 82, No. 2; 80, No. 8; 77, No. 8; and 74, No. 10.

§8031. Requests for Financing.

Note

The Authority will accept requests for financing in a form approved by the Executive Secretary. Requests for Financing forms may be obtained by writing to the Authority office located in either the City of Sacramento or Los Angeles.

NOTE

Authority cited: Sections 44526, Division 27, Health and Safety Code. Reference: Sections 44520 and 44534, Division 27, Health and Safety Code.

§8032. Acceptance of Requests.

Note

In determining its acceptance or denial of requests for financing, either in whole or in part, the Authority may take into consideration such factors as: (1) certification and recommendation of the appropriate environmental authority, (2) location of the proposed project, (3) nature of the proposed project, (4) time of receipt of request for financing, (5) any other factors the Authority may deem pertinent.

NOTE

Authority cited: Section 44520, Division 27, Health and Safety Code. Reference: Sections 44520 and 44531-44539, Division 27, Health and Safety Code.

§8033. Application Fees.

Note

A check drawn on a responsible bank or trust company in the amount of .0005 (one twentieth of one percent) of the amount of financing requested with a minimum of $250.00 and a maximum of $5,000.00, shall be made payable to “CPCFA Fund” and shall accompany each request for financing. Such fees provide for review and processing of the application and are nonrefundable. The application fees shall be applied to the payment of general fees if the project is financed.

NOTE

Authority cited: Section 44520, Division 27, Health and Safety Code. Reference: Sections 44520, 44525 and 44526, Division 27, Health and Safety Code.

§8034. General Fees.

Note • History

The Authority charges the following fees for reasonable and necessary administrative and program expenses connected with the sale of bonds:

(a) Where the financing requested is not eligible for allocation of volume cap pursuant to 26 U.S.C. Section 146, the Authority charges a fee for reasonable and necessary administrative and program expenses connected with the sale of the bonds. For an applicant who is not a small business as defined in Section 8020, the fee shall be one tenth of one percent (.001) of the face value of the bonds issued. In addition, the Authority will charge an annual fee each year for the life of the financial assistance in the amount of five one-hundredths of one percent (.0005) of the remaining balance of the financial assistance, with a minimum annual fee of $1,000 and a maximum annual fee of $75,000.

(b) In all other financings, the fee shall be two tenths of one percent (.002) of the face value of the bonds issued.

(c) The applicant shall also reimburse the Authority for all reasonable and necessary out of pocket expenses which the Authority may incur at the applicant's request and all other expenses direct or indirect, properly allocable to the proposed financing. Unless paid out of the proceeds of the bonds issued, all fees for a particular proposed financing shall be paid by the applicant and deposited in the Authority Fund. The Authority shall be authorized to use general fees deposited in the Authority Fund to support Authority programs, including, but not limited to, the Capital Access Loan Program authorized by Article 7 of this Division 11.

NOTE

Authority cited: Section 44520, Division 27, Health and Safety Code. Reference: Sections 44520, 44525 and 44537.5, Division 27, Health and Safety Code.

HISTORY

1. Amendment filed 9-15-94; operative 9-15-94 pursuant to Government Code section 11346.2(d) (Register 94, No. 37).

2. Amendment filed 9-10-96; operative 10-10-96 (Register 96, No. 37).

3. Amendment filed 12-18-2000 as an emergency pursuant to Health and Safety Code section 44520; operative 1-1-2001 (Register 2000, No. 51). A Certificate of Compliance must be transmitted to OAL by 7-2-2001 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 12-18-2000 order transmitted to OAL 6-14-2001 and filed 7-26-2001 (Register 2001, No. 30).

5. Amendment filed 10-27-2009 as an emergency; operative 10-27-2009 (Register 2009, No. 44). A Certificate of Compliance must be transmitted to OAL by 4-26-2010 or emergency language will be repealed by operation of law on the following day.

6. Reinstatement of section as it existed prior to 10-27-2009 emergency amendment by operation of Government Code section 11346.1(f) (Register 2010, No. 18).

7. Amendment refiled 4-29-2010 as an emergency; operative 4-29-2010 (Register 2010, No. 18). A Certificate of Compliance must be transmitted to OAL by 7-28-2010 or emergency language will be repealed by operation of law on the following day.

8. Amendment refiled 7-13-2010 as an emergency; operative 7-13-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 10-11-2010 or emergency language will be repealed by operation of law on the following day.

9. Certificate of Compliance as to 7-13-2010 order transmitted to OAL 9-23-2010 and filed 11-4-2010 (Register 2010, No. 45).

§8035. Small Business Assistance Fund Fees.

Note • History

(a) The Authority shall charge an applicant who is not a public agency or a small business as defined in Section 8020 a fee in addition to the fees required by Sections 8033 and 8034. The additional fee shall fund the Small Business Assistance Fund (SBAF). The amount of the fee shall be sixty-six one-hundredths of one percent (.0066) of the face value of any tax exempt bonds issued and three tenths of one percent (.003) of the face value of any taxable bonds issued; provided, that in connection with the issuance of taxable bonds for which the .003 fee is charged, if such taxable bonds are refinanced with or converted to tax exempt bonds, the applicant shall pay an additional fee for deposit into the Small Business Assistance Fund in the amount of thirty-six one-hundredths of one percent (.0036) of the face value of such taxable bonds. In the case of refunding or conversion of bonds, the fee percentage applicable on the date the original bonds were issued will be used to determine if additional SBAF fees are collectable. If the company did not pay a SBAF fee originally, the current fee percentage will apply to refundings or conversions. If federal tax law or other legal provisions prevent the imposition of the above fees, each fee shall be the maximum that can legally be charged.

(b) The Authority shall refund a portion of the fee charged pursuant to subdivision (a) of this section if the occurrence of a subsequent event causes the original fee to exceed the amount allowed by federal tax law provisions, causing the bonds to lose their tax exempt status. The refund shall be the difference between the original fee charged and the maximum fee subsequently determined to be chargeable by bond counsel approved by the Authority.

(c) The Authority shall refund a portion of the fee charged if, in the judgment of the Authority, the amount in the Small Business Assistance Fund account exceeds the amount needed to operate the Small Business Assistance Fund program and to assist small businesses obtain financing. If the Authority makes a refund pursuant to this subdivision, the amount of the refund payable to each applicant shall be computed by multiplying the total amount to be refunded by the percentage each applicant contributed in fees to the total fees collected pursuant to this section.

(d) If an applicant refinances existing bonds with the issuance of new bonds, it shall receive a credit against the fee charged pursuant to this section in an amount equal to the net Small Business Assistance Fund fees paid on the earlier bonds.

NOTE

Authority cited: Sections 44520 and 44548, Health and Safety Code. Reference: Section 44548, Health and Safety Code.

HISTORY

1. New section filed 7-3-86; effective upon filing pursuant to Government Code section 11346.2(d) (Register 86, No. 27).

2. Amendment of subsection (a) filed 9-15-94; operative 9-15-94 pursuant to Government Code section 11346.2(d) (Register 94, No. 37).

3. Amendment of subsection (a) filed 9-10-96; operative 10-10-96 (Register 96, No. 37).

4. Amendment of subsection (a) filed 6-1-98 as an emergency; operative 6-1-98 (Register 98, No. 23). A Certificate of Compliance must be transmitted to OAL by 9-29-98 or emergency language will be repealed by operation of law on the following day.

5. Reinstatement of section as it existed prior to 6-1-98 emergency amendment by operation of Government Code section 11346.1(f) (Register 98, No. 52).

6. Amendment of subsection (a) filed 12-23-98; operative 12-23-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 52).

7. Amendment of subsection (a) filed 10-27-2009 as an emergency; operative 10-27-2009 (Register 2009, No. 44). A Certificate of Compliance must be transmitted to OAL by 4-26-2010 or emergency language will be repealed by operation of law on the following day.

8. Reinstatement of section as it existed prior to 10-27-2009 emergency amendment by operation of Government Code section 11346.1(f) (Register 2010, No. 18).

9. Amendment of subsection (a) refiled 4-29-2010 as an emergency; operative 4-29-2010 (Register 2010, No. 18). A Certificate of Compliance must be transmitted to OAL by 7-28-2010 or emergency language will be repealed by operation of law on the following day.

10. Amendment of subsection (a) refiled 7-13-2010 as an emergency; operative 7-13-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 10-11-2010 or emergency language will be repealed by operation of law on the following day.

11. Certificate of Compliance as to 7-13-2010 order transmitted to OAL 9-23-2010 and filed 11-4-2010 (Register 2010, No. 45).

12. Amendment of subsection (a) and Note filed 7-23-2012; operative 7-23-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 30).

§8035.5. Equipment Only Bond Financing Program.

Note • History

(a) The Authority hereby establishes the Equipment Only Bond Financing Program to encourage bond financing for small businesses to meet their equipment purchasing needs.

In order to participate in the program, applicants must make the following covenants when they submit their request for financing:

(1) Bonds must have a final maturity of 12 years or less.

(2) At least 90% of the net project fund of the proposed bond issue must be used to finance equipment, rolling stock and the like with expected economic lives of no more than 10 years. No real estate, improvements thereto, buildings or the like are eligible.

(3) Bond counsel and disclosure counsel fees are limited to $45,000 collectively.

(4) Applicant's financing consultant fees are limited to 0.5% of par.

(5) Applicant's underwriter fees are limited to 0.7% of par.

(6) Applicant's counsel and co-counsel fees are limited to $12,500 collectively.

(b) The Authority will waive the fee as defined in §8035(a).

(d) Unless extended by the Authority, the program will expire on the earlier of two years from the effective date of regulation, or until such time as the 7-day variable rate demand tax-exempt rates are at least 1.25% lower than the 30-day LIBOR rate for a period of ninety days.

NOTE

Authority cited: Section 44520, Health and Safety Code. Reference: Section 44548, Health and Safety Code.

HISTORY

1. New section filed 3-7-2011 as an emergency; operative 3-7-2011 (Register 2011, No. 10). A Certificate of Compliance must be transmitted to OAL by 9-6-2011 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 3-7-2011 order transmitted to OAL 8-16-2011 and filed 9-28-2011 (Register 2011, No. 39).

§8036. Notice of Fees.

Note • History

(a) The Authority shall mail notice to each applicant within thirty days of the effective date of this regulation setting out the fee chargeable pursuant to Section 8035. Thereafter, the Authority shall mail notice to each applicant when the Authority adopts its final resolution authorizing the sale of bonds for financing the applicant's project. If the applicant believes federal tax law provisions mandate a lower fee than that noticed by the Authority, it shall submit, no less than five days before the closing of the bond sale, an opinion of approved bond counsel setting out the maximum, allowable fee. The Authority shall charge the fee set out in the opinion.

(b) If bonds issued by the Authority bear a variable interest rate, the Authority may collect the fee in installments. The first installment shall be based on the maximum fee allowable under federal tax law provisions assuming the bonds bear the maximum interest rate provided for by the bonds. Further installments shall be payable at the discretion of the Authority when actual interest rates on the bonds can be determined.

NOTE

Authority cited: Section 44520, Division 27, Health and Safety Code. Reference: Section 44548, Division 27, Health and Safety Code.

HISTORY

1. Change without regulatory effect renumbering former Section 8036 to Section 8037 and new Section 8036 filed 7-3-86; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 86, No. 27).

2. Amendment of subsection (b) filed 12-23-98; operative 12-23-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 52).

§8037. Issuance of Bonds.

Note • History

The Authority will adopt all necessary resolutions to approve or deny any request for financing. Approval may be made contingent upon appropriate certification.

The form of bonds, any resolution or resolutions authorizing such bonds, any trust agreement securing such bonds and any agreement relating to the purchase, sale or lease of the facilities financed with such bonds, shall be agreed upon to the mutual satisfaction of the Authority and applicant.

NOTE

Authority cited: Section 44520, Division 27, Health and Safety Code. Reference: Articles 4 and 5, Division 27, Health and Safety Code.

HISTORY

1. Change without regulatory effect renumbering former Section 8037 to Section 8038, and renumbering former Section 8036 to Section 8037 filed 7-3-86; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 86, No. 27).

§8038. Certification.

Note • History

The applicant will obtain any and all appropriate certificates from affected environmental agencies and submit all such certificates to the Authority prior to adoption of a Final Resolution for the issuance of bonds. If appropriate, a statement should be submitted stating why any approval or certificate has not been obtained or is unnecessary.

NOTE

Authority cited: Section 44520, Division 27, Health and Safety Code. Reference: Sections 44520 and 44533, Division 27, Health and Safety Code.

HISTORY

1. Change without regulatory effect renumbering former Section 8038 to Section 8039 and renumbering former Section 8037 to Section 8038 filed 7-3-86; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 86, No. 27).

§8039. Public Purposes.

Note • History

The Authority is not organized for profit and no part of its net earnings shall inure to the benefit of any private person.

NOTE

Authority cited: Section 44520, Division 27, Health and Safety Code. Reference: Section 44520, Division 27, Health and Safety Code.

HISTORY

1. Change without regulatory effect renumbering former Section 8038 to Section 8039 filed 7-3-86; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 86, No. 27).

Article 4. Provisions Relating to Small Business Financings

§8040. Small Business Financing Program. [Repealed]

Note • History

NOTE

Authority cited: Section 44520, Division 27, Health and Safety Code. Reference: Sections 44520 and 44537.5, Division 27, Health and Safety Code.

HISTORY

1. Renumbering of former Article 4 (Sections 8040-8048, not consecutive) to Article 3 (Sections 8030-8038, not consecutive), and renumbering of former Article 5 (Section 8050) to Article 4 (Section 8040) filed 6-3-83 (Register 83, No. 23). For prior history, see Registers 80, No. 26; 80, No. 8; 78, No. 6; 77, No. 8; and 74, No. 10.

2. Repealer filed 8-28-87; operative 9-27-87 (Register 87, No. 35).

§8041. Small Business Assistance Fund Established.

Note • History

The Authority hereby establishes the Small Business Assistance Fund to assist small businesses to obtain pollution control or other financing as authorized by Health and Safety Code Section 44548.

NOTE

Authority cited: Section 44520, Division 27, Health and Safety Code. Reference: Section 44548, Division 27, Health and Safety Code.

HISTORY

1. New section filed 7-3-86; effective upon filing pursuant to Government Code section 11346.2(d) (Register 86, No. 27).

2. Amendment filed 3-19-92 as an emergency; operative 3-19-92 (Register 92, No. 13). A Certificate of Compliance must be transmitted to OAL 7-17-92 or emergency language will be repealed by operation of law on the following day.

3. Certificate of Compliance as to 3-19-92 order transmitted to OAL 7-30-92 and filed 9-9-92 (Register 92, No. 37).

4. Amendment filed 1-31-94 as an emergency; operative 1-31-94 (Register 94, No. 5). A Certificate of Compliance must be transmitted to OAL by 7-30-94, pursuant to Health and Safety Code section 44520, or emergency language will be repealed by operation of law on the following day.

5. Amendment refiled 7-21-94 as an emergency; operative 7-31-94 (Register 94, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-27-95 pursuant to Health and Safety Code section 44520 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 7-21-94 order including amendment of section transmitted to OAL 1-26-95 and filed 3-9-95 (Register 95, No. 10).

§8042. Eligibility for Assistance.

Note • History

(a) An applicant, to be eligible for assistance, shall meet the following criteria:

(1) It shall be a small business as defined in Section 8020.

(2) It shall seek financing for a project that complies with the Act (commencing with Health and Safety Code Section 44500).

(3) In connection with assistance in accordance with Section 8043 of this article, it shall seek financing that is no less than $500,000.

(4) It shall demonstrate a financial capability to make debt service payments and shall provide such collateral security (in the form of deeds of trust, security agreements, reserves, third party guarantees or other methods) as may be required by the holders of the bonds, the lender in a conventional loan, and the Authority as guarantor.

(b) An applicant shall receive assistance, provided sufficient funds are available, when the following conditions are satisfied:

(1) The Authority has accepted the applicant's request for financing pursuant to Section 8032.

(2) The Authority has determined that the applicant is eligible pursuant to subdivision (a) of this section.

(3) The Authority issues bonds to finance the applicant's project or the Authority approves a guarantee of a conventional loan which will finance the applicant's project.

(c) This section shall not apply where the financing requested is not eligible for the allocation of volume cap pursuant to 26 U.S.C. Section 146.

NOTE

Authority cited: Section 44520, Division 27, Health and Safety Code. Reference: Section 44548, Division 27, Health and Safety Code.

HISTORY

1. New section filed 7-3-86; effective upon filing pursuant to Government Code section 11346.2(d) (Register 86, No. 27).

2. Amendment of subsection (a)(3) filed 4-8-93 as an emergency; operative 4-8-93 (Register 93, No. 15). A Certificate of Compliance must be transmitted to OAL 10-5-93 pursuant to Health and Safety Code section 44520 or emergency language will be repealed by operation of law on the following day.

3. Certificate of Compliance as to 4-8-93 order transmitted to OAL 8-10-93 and filed 9-7-93 (Register 93, No. 37).

4. Editorial correction of History 2 (Register 93, No. 37).

5. Amendment of subsections (a)(4) and (b)(3) filed 1-31-94 as an emergency; operative 1-31-94 (Register 94, No. 5). A Certificate of Compliance must be transmitted to OAL by 7-30-94, pursuant to Health and Safety Code section 44520, or emergency language will be repealed by operation of law on the following day.

6. Amendment of subsections (a)(4) and (b)(3) refiled 7-21-94 as an emergency; operative 7-31-94 (Register 94, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-27-95 pursuant to Health and Safety Code section 44520 or emergency language will be repealed by operation of law on the following day.

7. Editorial correction of History 6 (Register 95, No. 10).

8. Certificate of Compliance as to 7-21-94 order including amendment of subsection (a)(3) transmitted to OAL 1-26-95 and filed 3-9-95 (Register 95, No. 10).

9. New subsection (c) filed 10-27-2009 as an emergency; operative 10-27-2009 (Register 2009, No. 44). A Certificate of Compliance must be transmitted to OAL by 4-26-2010 or emergency language will be repealed by operation of law on the following day.

10. Reinstatement of section as it existed prior to 10-27-2009 emergency amendment by operation of Government Code section 11346.1(f) (Register 2010, No. 18).

11. New subsection (c) refiled 4-29-2010 as an emergency; operative 4-29-2010 (Register 2010, No. 18). A Certificate of Compliance must be transmitted to OAL by 7-28-2010 or emergency language will be repealed by operation of law on the following day.

12. New subsection (c) refiled 7-13-2010 as an emergency; operative 7-13-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 10-11-2010 or emergency language will be repealed by operation of law on the following day.

13. Certificate of Compliance as to 7-13-2010 order transmitted to OAL 9-23-2010 and filed 11-4-2010 (Register 2010, No. 45).

§8043. Assistance.

Note • History

In addition to other assistance which the Authority shall be authorized to provide in accordance with this division:

(a) The Authority shall be authorized to provide any part or combination of the assistance described below, but the Authority shall not be required to provide any particular form of assistance to any applicant. The Authority shall be authorized to provide the form or forms of assistance that, in its judgment, will most effectively assist the applicant to (i) achieve financing for the project; (ii) obtain a bond rating of “A” from a national bond rating service if bonds are issued publicly; and (iii) obtain an effective interest rate for all or a portion of the term of the financing which, in the Authority's judgment, is comparable at the time of financing to the prevailing market rates which would be paid by larger businesses for similar types of financing (but for any conventional loan not lower than the “prime rate” then prevailing):

(1) Pay for the reasonable costs of issuing bonds or obtaining conventional loans. For bond issues, these costs include bond counsel fees, underwriter or placement agent fees or discount and related expenses, printing fees, fees due to other state agencies, accounting fees, consultant's fees, and other expenses directly related to the issuance of bonds that are normally paid from the proceeds of a bond issued at the time of closing. For conventional loans, these costs include counsel fees, loan origination fees, consultant's fees, and other costs normally incurred in obtaining a commercial loan. The costs of issuing bonds or obtaining conventional loans shall not include expenses incurred by the applicant for other attorney fees, staff time, or other expenses related to the application for financing.

(2) Provide financial assistance to reduce the annual fees or premium for a letter of credit, surety bond, insurance policy, or other credit enhancement.

(3) Guarantee to the bond holder, conventional lender or provider of a letter of credit, surety, insurance policy, or other credit enhancement all or a portion of the indebtedness; provided, however, that in no event shall the aggregate amount of such guarantees outstanding at any time with respect to any applicant exceed $2,000,000.

(4) Provide financial assistance to reduce the interest rate on conventional loans or bonds by not more than two percent (2%).

(b) The Authority alone is authorized to approve assistance. The commitment to provide assistance shall be valid only when it is included in a written contract executed by both the Authority and applicant or group of applicants.

NOTE

Authority cited: Section 44520, Division 27, Health and Safety Code. Reference: Section 44548, Division 27, Health and Safety Code.

HISTORY

1. New section filed 7-3-86; effective upon filing pursuant to Government Code section 11346.2(d) (Register 86, No. 27).

2. Amendment of subsections (b)(2) and (b)(3), repealer of subsection (c) and subsection relettering, and new subsection (e) filed 4-8-93as an emergency; operative 4-8-93 (Register 93, No. 15). A Certificate of Compliance must be transmitted to OAL 10-5-93 pursuant to Health and Safety Code section 44520 or emergency language will be repealed by operation of law on the following day.

3. Certificate of Compliance as to 4-8-93 order transmitted to OAL 8-10-93 and filed 9-7-93 (Register 93, No. 37).

4. Editorial correction of History 2 (Register 93, No. 37).

5. Amendment filed 1-31-94 as an emergency; operative 1-31-94 (Register 94, No. 5). A Certificate of Compliance must be transmitted to OAL by 7-30-94, pursuant to Health and Safety Code section 44520, or emergency language will be repealed by operation of law on the following day.

6. Amendment refiled 7-21-94 as an emergency; operative 7-31-94 (Register 94, No. 29). A Certificate of Compliance must be transmitted to OAL by 1-27-95 pursuant to Health and Safety Code section 44520 or emergency language will be repealed by operation of law on the following day.

7. Certificate of Compliance as to 7-21-94 order including new first paragraph, amendment of subsections (a), (a)(1) and (a)(3) and repealer of subsection (d) transmitted to OAL 1-26-95 and filed 3-9-95 (Register 95, No. 10).

8. Amendment of subsections (a)(3) and (b) filed 10-27-2009 as an emergency; operative 10-27-2009 (Register 2009, No. 44). A Certificate of Compliance must be transmitted to OAL by 4-26-2010 or emergency language will be repealed by operation of law on the following day.

9. Reinstatement of section as it existed prior to 10-27-2009 emergency amendment by operation of Government Code section 11346.1(f) (Register 2010, No. 18).

10. Amendment of subsections (a)(3) and (b) refiled 4-29-2010 as an emergency; operative 4-29-2010 (Register 2010, No. 18). A Certificate of Compliance must be transmitted to OAL by 7-28-2010 or emergency language will be repealed by operation of law on the following day.

11. Amendment of subsections (a)(3) and (b) refiled 7-13-2010 as an emergency; operative 7-13-2010 (Register 2010, No. 29). A Certificate of Compliance must be transmitted to OAL by 10-11-2010 or emergency language will be repealed by operation of law on the following day.

12. Certificate of Compliance as to 7-13-2010 order, including repealer of subsection (b) and subsection relettering, transmitted to OAL 9-23-2010 and filed 11-4-2010 (Register 2010, No. 45).

§8044. Small Business Loans.

Note • History

In connection with small business loans made in accordance with California Code of Regulations, Title 10, Chapter 6.81 (commencing with Section 4610) adopted by the California Department of Commerce pursuant to California Health and Safety Code Section 44520(b), the Authority acknowledges said regulations and shall undertake to perform its obligations set forth therein. If any inconsistency exists between said regulations and this article, the provisions of said regulations shall apply. In addition, in connection with such small business loans, the following shall apply:

(a) Notwithstanding anything in Section 8043 to the contrary, the Authority shall be authorized to establish the loan guarantee percentage it deems necessary to facilitate the provision of such small business loans.

(b) The Authority shall be authorized to waive fees it charges pursuant to Section 8034 for all applicants approved for such small business loans.

NOTE

Authority cited: Section 44520(b), Health and Safety Code. Reference: Sections 44533(b) and 44548(c), Health and Safety Code; Section 15335, Government Code.

HISTORY

1. New section filed 3-19-92 as an emergency; operative 3-19-92 (Register 92, No. 13). A Certificate of Compliance must be transmitted to OAL 7-17-92 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 3-19-92 order including amendment of first paragraph transmitted to OAL 7-30-92 and filed 9-9-92 (Register 92, No. 37).

Article 5. California Loans for Environmental Assistance Now

§8050. Definitions.

Note • History

The following definitions shall govern construction of Article 5 and Article 6.

(a) “Agency” means a public entity authorized under federal, state or local law to issue an Authorization in connection with Pollution Control Requirements.

(b) “Applicant” means an entity applying for a Loan.

(d) “Assessment Report” means a report prepared by a Coordinator pursuant to Section 8053(c) of these regulations.

(e) “Authority” means the California Pollution Control Financing Authority, organized and existing under and by virtue of Division 27 (commencing with Section 44500) of the California Health and Safety Code.

(f) “Authorization” means a permit, order or other authority to construct or authority to construct and operate a Project.

(g) “Bonds” means any series of bonds, notes or other evidence of indebtedness issued by the Authority, a portion of the proceeds of which are used to fund Loans.

(h) “Borrower” means an Applicant whose Loan has been approved and who has executed a Loan Agreement.

(i) “Contractor” means an entity who has contracted with the Authority to undertake loan packaging, servicing and related activities pursuant to these regulations.

(j) “Coordinator” means an entity which receives and processes applications and disburse funds pursuant to these regulations. The Coordinator for any given Application shall be authorized to be either the Authority's staff or a Contractor, if one or more have contracted with the Authority, that receives the Applicant's complete and signed Application pursuant to Section 8053 of these regulations.

(k) “Eligible Costs” means reasonable and necessary Project costs associated with the following:

(1) Acquisition or construction of the Project, including labor installation and construction costs if such installation and construction are performed by a contractor (as defined in Section 7026 of the California Business and Professions Code) licensed in accordance with Sections 7065 through 7077 of the California Business and Professions Code.

(2) Design, engineering, architectural, consulting, real estate appraisal, legal and other related costs and fees necessary to the Environmental Audit and to the acquisition or construction of the Project.

(3) Preparation costs, including obtaining acquisition or construction cost estimates, preliminary design and engineering work, planning costs and any other expense reasonably required in order to obtain an Authorization.

(4) The Loan fees and Environmental Audit.

(l) “Environmental Assessment” means an assessment of environmental conditions made pursuant to Title 14, Division 11, Article 6, Section 8060 of the California Code of Regulations.

(m) “Environmental Audit” means an investigation into the Applicant's production operations and its compliance with federal, state and local environmental laws, regulations and rulings.

(n) “Hazardous Material” means a hazardous waste, hazardous material, toxic substance, solid waste, water pollutant, air pollutant, air contaminant or related material, including any pesticide or petroleum products, waste, substance, pollutant or contaminant that is or becomes the subject of regulation by any federal, state or local governmental authority or agency with respect to air, water or soil quality.

(o) “Loan” means a loan made in accordance with the procedures set forth in Article 5 and Article 6.

(p) “Loan Agreement” means any agreement for a Loan entered into between a Borrower and the Coordinator.

(q) “Pollution Requirements” means any law, rule or regulation by an agency pertaining to Hazardous Material.

(r) “Project” means the equipment, control technology, production practice or facility for which a Loan is being sought and that is designed to either bring the Applicant into compliance with Pollution Requirements or to reduce Hazardous Material emission or generation.

(s) “Security” means any collateral pursuant to a Loan Agreement. No Loan Agreement shall include the following types of collateral:

(1) Raw land, or land with buildings that will require demolition in order to make use of the property;

(2) Land or buildings contaminated by Hazardous Materials;

(3) Real property located outside California; and

(4) Existing liens on real property exceeding seventy-five percent (75%) of the appraised value. Any appraisal submitted in connection with these regulations shall be no more than six months old at the time of submission.

(t) “Small Business” means that term as defined in Title 4, Division 11, Article 2, Section 8020 of the California Code of Regulations.

NOTE

Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 44533(b) and 44548, Health and Safety Code.

HISTORY

1. New article 5 and section filed 10-11-94; operative 11-10-94 (Register 94, No. 41). For prior history, see Register 94, No. 14.

§8051. Eligibility.

Note • History

An Applicant shall be eligible for a Loan when the Coordinator determines that:

(a) the Applicant is a Small Business that has been operating and engaged in substantially the same activity for a minimum of three (3) years prior to the time the Application is submitted to the Coordinator;

(b) The Applicant demonstrates the ability to repay the Loan from operational cash flow.

(c) Adequate Security exists to secure the Loan on the terms and conditions required by these regulations and agreed to by the Applicant.

(d) The Loan is requested to fund a Project located in California.

(e) The Applicant has an after tax net income in at least two (2) of the last three (3) full years of operation.

NOTE

Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 44533(b) and 44548, Health and Safety Code.

HISTORY

1. New section filed 10-11-94; operative 11-10-94 (Register 94, No. 41).

§8052. Loan Terms.

Note • History

The terms and conditions of a Loan shall include all of the following:

(a) An interest rate not to exceed one percent (1%) greater than the net interest cost on the Bonds issued in connection with a Loan, or if no bonds are so issued, not to exceed five percent (5%) greater than the interest rate payable at the time of a Loan on moneys in the state's surplus money investment fund. As used in this subsection, “net interest cost” is determined by dividing the total interest payments for the Bonds (reduced by any premium or accrued interest and increased by any discount) by the product of the issue price (which is the par amount of the Bonds less any discount and increased by any premium) and the weighted maturity of the issue (which is the average maturity of the issue weighted to reflect the dollar amount of each particular maturity).

(b) A maximum Loan amount no greater than seven hundred and fifty thousand dollars ($750,000).

(d) A Loan term not to exceed eight (8) years; provided that no term shall exceed the final maturity of the Bonds.

(e) The Loan is fully amortized.

(f) A Loan fee of two percent (2%) of the amount of the Loan or five hundred dollars ($500), whichever is greater, to be paid to the Authority.

(g) Late charges in the event of a default.

(h) Any other provision agreed to by the parties.

NOTE

Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 44533(b) and 44548, Health and Safety Code.

HISTORY

1. New section filed 10-11-94; operative 11-10-94 (Register 94, No. 41).

§8053. Application Availability, Submission and Coordinator Review.

Note • History

(a) Applications shall be available from the Authority's staff and from any Contractor. Applicants can obtain a list of Contractor(s) or a copy of the Application by contacting the Authority's staff at the following address: California Pollution Control Financing Authority, 915 Capital Mall, Room 466, Sacramento, California, 95814 Attention: CLEAN Program, or by phoning (916) 654-5610. The Application shall contain the information set forth in Section 8054. The Applicant shall submit one (1) complete and signed Application to a Coordinator.

(b) The Coordinator shall review each Application in accordance with Section 8051. If the Coordinator determines that the Application is incomplete, the Coordinator shall provide assistance to the Applicant in completing the Application. No later than sixty (60) days following receipt of a complete Application, the Coordinator shall either:

(1) Notify the Applicant that the Application is ineligible; or

(2) Notify the Applicant that the Application is eligible.

(c) When the Coordinator acts pursuant to (b)(2) of this Section, it shall ensure that the Application is complete, and, shall deliver or mail to the Authority the original Application and an Assessment Report. The Assessment Report shall consist of the following:

(1) Name and address of Applicant and any guarantors of the Loan;

(2) Loan amount;

(3) Description of the Project;

(4) Monthly payment, loan fee and estimated interest rate;

(5) Primary and secondary repayment sources;

(6) Security;

(7) Description of Applicant's business (including location);

(8) Discussions of Applicant's management structure and qualifications;

(9) Financial analysis addressing Applicant's ability to repay the Loan;

(10) Evidence that Applicant is a Small Business;

(11) Discussion of potential environmental risks in connection with the Project; and

(12) Loan conditions and requirements.

NOTE

Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 44533(b) and 44548, Health and Safety Code.

HISTORY

1. New section filed 10-11-94; operative 11-10-94 (Register 94, No. 41).

§8054. Application Content.

Note • History

An Application shall include all of the following:

(a) The Applicant name, address, telephone number, federal tax identification number, type of business, Standard Industrial Classification Number as set forth in Standard Industrial Classification Manual, 1987, United States Office of Management and Budget, and the date the business was established.

(b) The Applicant owner(s), including the Applicant owner's spouse's name if such spouse is an owner, and guarantor name, if any, with the following information for each such owner and guarantor: business telephone number, home street address, employer's name and address, amount of time at current employment and position held. “Owner” for purposes of this section means any person holding a beneficial interest of ten percent (10%) or more of the stock issued by, or other ownership interest in, the Applicant.

(1) A description of the Project including its useful economic life, the estimated construction period, components, costs and whether it is primarily intended to meet pending Pollution Requirements or to reduce Hazardous Material generally.

(2) The Project location.

(3) A copy of the Authorization, if available, and a copy of the application for the Authorization and any other materials submitted to an Agency in connection with the Authorization.

(d) Information the Applicant deems sufficient to demonstrate that the Applicant is able to provide adequate Security and to repay the Loan, including tax returns, history of any insolvency, status of any tax audits or lawsuits and the existence and solvency of any guarantors.

(e) The proposed Loan amount and term.

(f) The Applicant's financial statement for the most recent fiscal year and financial statements for the previous three (3) fiscal years.

(g) A financial certification form (Financial Statement Certification, 3/92 revision) signed by each person or entity furnishing any financial statement. The form consists of the following statement:

“The attached financial statement of the undersigned dated _____ is hereby furnished to you for the purpose of procuring and establishing credit from time to time with you and is to be regarded as a complete and truthful statement of the undersigned's financial condition on the date indicated.

“The undersigned authorizes you (1) to make inquiries about the content of the attached financial statement, including contacting credit reporting agencies and (2) to provide credit information about the obligations of the undersigned to credit reporting agencies or in response to other inquiries.

Signed:_____ Date _____.”

(h) The signature of Applicant owner(s) to the Application, with the following statement:

“I represent and declare that the information provided in this application is true and a correct statement of my current financial condition. Any existing or threatened litigation, claim or circumstance which might reasonably be expected to affect my condition in the future is fully described below or in an attached statement.

“I will immediately notify you in writing if there is a material change in my financial condition. The absence of such notification shall constitute a new and continuing affirmation of my financial condition as described, upon which you may continue to fully rely.

“I agree that present and future obligations to you are authorized to be made immediately due and payable, at your sole discretion, if (1) I, or any guarantor of any of my obligations, at any time discontinues business, becomes insolvent, enters into bankruptcy or dies, (2) a writ of attachment, garnishment, execution or other similar legal process is issued against my property, (3) any act for the collection of delinquent taxes is taken against me, (4) any representation to you by me or a guarantor of my obligations proves to be misleading or untrue, (5) I fail to notify you of any material change in my financial condition or there is a materially adverse change in my financial condition, including any change in Security, (6) I sell or transfer any interest in my current business, or (7) any other action or condition for which present or further obligations shall be authorized to be made immediately due and payable and that has been agreed to or not objected to by me, occurs or is met.

You are authorized to verify the information contained in this application with any third party.

I understand that my spouse, if any, is not required to be a borrower or a guarantor unless he or she also is an owner of the business.

I have reviewed the above statement and understand the foregoing representations and covenants.

Date_____ Signature _____.”

(i) If Security includes real property, a legal description of such property, an appraisal of the property, a preliminary title report and if the property is other than residential, four (4) units or less, a fifty (50)-year recorded document guarantee. The title report must utilize the American Land Title Association (“ALTA”) Loan Policy, revision 1987, or the California Land Title Association Standard Coverage Policy, revision 1988, and each must contain ALTA endorsements 100 and 101. The company issuing the title policy and document guarantee must be licensed by the California Department of Insurance to issue insurance in California. If the property is zoned and used as residential for four units or less, the appraiser must be licensed by either the American Institute as a Single Family Real Estate Appraiser or licensed by the California Office of Real Estate Appraisers. All other real property must be appraised by an individual licensed by the American Institute as a Member of the American Institute or certified by the California Office of Real Estate Appraisers.

(j) If Applicant leases the facility where the Project will be located, a copy of the lease for the facility.

(k) If Applicant has subsidiaries or affiliates whose financial statements are not otherwise consolidated with those of the Applicant, a current financial statement from each such subsidiary or affiliate for the most recent fiscal year.

(l) If the Loan amount exceeds two hundred and fifty thousand dollars ($250,000), Applicant financial projects for the eighteen (18)-month period following Loan approval.

(m) If projected Project costs exceed the requested Loan amount, proposed sources of funding for such additional costs.

(n) A completed Environmental Assessment.

NOTE

Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 44533(b) and 44548, Health and Safety Code.

HISTORY

1. New section filed 10-11-94; operative 11-10-94 (Register 94, No. 41).

§8055. Environmental Audit.

Note • History

The Coordinator shall be authorized to undertake or cause to be undertaken an Environmental Audit, including an Environmental Assessment, in connection with the Applicant and Applicant facilities where the Project is to be located and any other non-residential real property or other facility to be used as Security. The costs of such Environmental Audit shall be authorized to be paid by the Applicant or in such other manner as is agreed to by the Applicant.

NOTE

Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 44533(b) and 44548, Health and Safety Code.

HISTORY

1. New section filed 10-11-94; operative 11-10-94 (Register 94, No. 41).

§8056. Coordinator Recommendation.

Note • History

(a) The Coordinator shall prepare a loan summary which shall summarize the Application, Environmental Audit and Assessment Report and shall include a section stating whether the Application is eligible, and list the proposed terms, including proposed Security, and special conditions of the Loan. The summary also shall list the percentage of the Loan which will be used to fund a Project where the Agency is the South Coast Air Quality Management District.

(b) When the Coordinator has received a complete Application, has completed the Assessment Report pursuant to Section 8053(c), has prepared a loan summary pursuant to Section 8056(a), and has received an Environmental Audit described in Section 8055 (if authorized or undertaken by the Coordinator), then the Application File is complete.

(c) Within ten (10) days of when an Applicant's Application File becomes complete as described in Section 8056(b), the Coordinator shall deliver or mail a letter (i) to the Authority and (ii) to the Applicant, stating that either:

(1) The Coordinator determined that the Application was eligible for further Authority review, and that the Application has been forwarded to or is being reviewed by the Authority; or

(2) The Coordinator determined that the Application was ineligible for specified reasons, and that the Applicant can appeal the decision to the Authority, pursuant to Section 8057(b).

NOTE

Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 40448.6, 44533(b) and 44548, Health and Safety Code.

HISTORY

1. New section filed 10-11-94; operative 11-10-94 (Register 94, No. 41).

§8057. Authority Approval.

Note • History

(a) Upon receipt of a letter from the Coordinator pursuant to Section 8056, the Authority shall be authorized to approve the Application when:

(1) It received the recommendation to that effect from the Coordinator pursuant to Section 8056(c) or when it approves an appeal pursuant to Section 8057(b);

(2) The Environmental Audit supports or does not materially adversely affect the decision to make the Loan; and

(3) Funds are available.

(b) If the Coordinator has determined that an Application is not eligible, the Applicant may appeal by filing a written appeal with the Authority. The appeal must be received by the Authority not later than twenty (20) days from the date stated on the Section 8056(c)(2) letter and must address each of the issues set forth in the letter. The Authority shall review the appeal and deliver to the Coordinator a written decision within thirty (30) days following the Authority's first regularly scheduled meeting following receipt of the appeal. In making its determination, the Authority shall review the written appeal, Application, Environmental Audit, Assessment Report and Coordinator recommendation (which materials shall be supplied to the Authority by the Coordinator). There are no further administrative appeals following this decision.

(c) Where any of the conditions and requirements in subsection (a) have not been met, the Authority shall deny the Loan request and inform the Coordinator with respect to the specific actions, if any, the Applicant must take to reapply.

(d) No later than forty-five (45) days from the date upon which the Coordinator delivers or mails the letter pursuant to Section 8056(c), the Coordinator shall notify the Applicant of the decision, along with any explanation required by subsection (c); provided, however, that in the case of an appeal, the Applicant shall be notified not later than twenty (20) days following receipt by the Coordinator of the written decision of the Authority made pursuant to Section 8057(b). If the Loan is approved, the notification shall consist of a letter committing the Authority to provide Loan funds so long as the Applicant strictly complies with the terms and conditions contained therein.

(e) The commitment letter described in subsection (d) shall include the following:

(1) Borrower's and any guarantor's name(s).

(2) Loan amount and term.

(3) Interest rate and loan fee.

(4) Disbursement process, including a statement that Loan proceeds shall be disbursed on a reimbursement basis.

(5) Proposed Security, together with appropriate method for placing a lien on and insuring same.

(6) A requirement that the Applicant execute environmental indemnity agreements in favor of the Authority, the State of California, and the Contractor, if any, fully indemnifying against loss or damage due to Hazardous Material. Such indemnity shall not be secured by the deed of trust or other Loan documents.

(7) Insurance requirements.

(8) Conditions and covenants.

(9) Prepayment conditions, if any.

(10) The date when the commitment expires.

(11) A statement that the Authority, by and through the Coordinator, reserves the right to modify or cancel its commitment upon failure of the Applicant to execute a Loan Agreement that includes all of the terms and conditions set forth in the letter of commitment, or if it becomes aware of any matter which, if known at the time of Loan review or approval, would have resulted in the Application not being approved. Such matters include:

(A) A determination that the Application was prepared incorrectly, contains incorrect information or omits required information.

(B) Business circumstances that would negatively affect the Applicant's ability to rely or collateralize the Loan.

(f) If the Authority approves the Application, the Authority or the Coordinator shall be authorized to enter into a Loan Agreement that embodies the terms specified in the commitment letter described in subsection (e).

(g) If the Authority denies the Application, the Applicant shall have no right to administratively appeal the decision, but may reapply for a Loan at any time.

(h) The Authority shall be authorized to give priority to Applications for Loans for Projects intended to meet Pollution Control Requirements pending or enacted but not yet effective.

NOTE

Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 44533(b) and 44548, Health and Safety Code.

HISTORY

1. New section filed 10-11-94; operative 11-10-94 (Register 94, No. 41).

§8058. Loan Disbursement.

Note • History

Following the execution of a Loan Agreement, compliance with all conditions precedent to disbursement contained in the Loan Agreement and the issuance of an Authorization, the Coordinator shall disburse funds as follows:

(a) The Borrower shall sign and submit to the Coordinator invoices from entities providing materials and services for Eligible Costs covered by the Loan Agreement.

(b) Upon receipt of the signed invoice, the Coordinator shall authorize the disbursement of Loan funds to the Borrower.

NOTE

Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 44533(b) and 44548(c), Health and Safety Code.

HISTORY

1. New section filed 10-11-94; operative 11-10-94 (Register 94, No. 41).

Article 6. Environmental Assessment

§8060. Environmental Assessment.

Note • History

An environmental assessment shall consist of completion of the following form (Revision 3/92):

Applicant:

Applicant's address:

Address of property for which this Environmental Assessment is being completed (property which shall be the security for loans, or if none, property where the project will be located) (the “Subject Property”):

List the street address, use & ownership interest in any other property owned by Applicant (e.g. 100 Main Street, Los Angeles, 3 year rental as warehouse space):

Name(s) of Individual(s) completing this questionnaire, their position(s) with the Applicant, the responsibilities and duties in this position(s), and their tenure with Applicant:

The following questions are necessary to provide the California Pollution Control Financing Authority (the “Authority”), its staff, and/or any entities contracting with the Authority in connection herewith (the “Coordinator”) with information concerning the environmental condition of the Subject Property. The Authority or the Coordinator will require the person(s) completing this statement to certify that the statement is true and constitutes an accurate account of all known environmental matters related to the Subject Property and its vicinity. The Authority or the Coordinator will rely on these answers as knowing representations of the Subject Property's condition.

The questions should be answered by one or more persons who are most knowledgeable about the Subject Property. Such persons will be expected to conduct a “reasonable inquiry.” The term “reasonable inquiry” shall include a thorough examination of the Subject Property and all property records in the Applicant's possession or reasonably available to the Applicant, as well as all matters into which Applicant has inquired for any purpose, or has had the right or duty to inquire into, supervise or monitor. “Reasonable inquiry” shall not require an environmental audit or the hiring of a consultant to respond to these questions or a title search of County property records.

The Authority or the Coordinator may conduct an independent investigation of the answers supplied in this statement at the Applicant's expense. If such an investigation reveals problem areas not disclosed in this statement, the loan decision may be delayed.

The Authority's or the Coordinator's provision of or reliance on this statement shall not constitute a commitment to lend funds, nor shall it limit the Authority's or the Coordinator's right to conduct a site investigation at the Applicant's expense prior to issuing a loan commitment.

The Applicant should disclose all known existing or potential environmental issues when answering the following questions. The Authority or the Coordinator is aware that businesses which will apply for the loan program generate Hazardous Material. When fully disclosed, the existence of Hazardous Material on the Subject Property will not necessarily result in an automatic loan denial. The Authority or the Coordinator, in its sole discretion, shall consider other factors as listed in the regulations when determining whether the proposed loan meets the program's goals and the Authority's or the Coordinator's acceptable liability risk.

Exhibit A contains definitions of the terms used in this statement which will aid the Applicant in determining the scope of each question.

If insufficient space is provided for your response, provide an attachment to the questionnaire and label the attachment with the number of the question you are continuing to answer.

A. SCOPE OF APPLICANT'S “REASONABLE INQUIRY”

1. Have you conducted an investigation of the Subject Property, including any records or employees' knowledge concerning the Subject Property in preparing your responses to these questions?

Yes

If yes, state how this inquiry was conducted and what issues and sources were examined:

B. PROPERTY INFORMATION

1. Current and Former Owners of and Uses on the Subject Property and Vicinity:

(a) Give the name of the present owner and state the current use of the Subject Property:

Year acquired:

(b) Do you know who has owned the Subject Property prior to the current owner?

Yes

If “yes,” state the names of all such former owners, the approximate dates of their ownership and their uses of the Subject Property (note especially any manufacturing or industrial uses, and any uses which required the use, storage, or disposal of Hazardous Material):

Yes

Do not know

If yes, state the names of present and former tenants, easement holders, etc. and their uses of the Subject Property (note especially any manufacturing or industrial uses, and any uses which required the use, storage, or disposal of Hazardous Material):

(d) Are there or have there been any manufacturing or industrial activities or any activities involving the use, storage, or disposal of Hazardous Material, pesticides or petroleum products within 1500 feet from the borders of the Subject Property?

Yes

Do not know

If yes, please describe:

(e) What is the current zoning for the Subject Property?

(f) Do you know any prior zonings of the Subject Property?

Yes

If yes, please list the prior zonings and the dates each such zoning was in effect.

(g) Are you aware of any previous environmental assessments, audits or inspections of the Subject Property by any government entity, consultant or other party?

Yes

If yes, please describe and attach as Attachment A any reports, studies, plans or other documents related thereto.

2. Current or Proposed Use of Subject Property

(a) Please describe all current and proposed activities which Applicant intends to conduct on the Subject Property:

(b) Is Hazardous Material handled, used, stored, manufactured, treated, released or disposed of in the course of these activities?

Yes

If yes, specify for each substance how it is used, stored, manufactured or treated (as applicable), and in what approximate quantity. Attach as Attachment B a list of such substances, copies of all applicable permits, safety data sheets, and copies of Hazardous Material manifests.

(c) Does the activity on the Subject Property require equipment cleaning or degreasing or removal of residues of Hazardous Material from equipment?

Yes

If yes, list the substances and wastes, and describe how the substances and wastes of this cleaning or removal process are disposed of?

(d) Please briefly describe the process flow of Applicant's operations at the Subject Property (e.g. raw materials unloaded at rear loading dock, formed into widgets inside the main building, finished widgets transported off site by trucks at front loading dock, raw material scrap stored in bins & picked up by trucks transporting materials to recycling center). Identify all points at which Hazardous Material is handled, accumulated, stored, treated, transferred, released or disposed of. Attach as Attachment C a process flow diagram.

3. Physical Description of Property

(a) Please describe all structures on the Subject Property (including approximate age) and attach as Attachment D a facility map:

(b) Are there, or have there been any tanks, sumps, ponds, lagoons and other containments (whether under or above ground, inside or outside of any structure) on the Subject Property?

Yes

If yes, please attach as Attachment E a list describing such containments (including their size, age, and location) and, where possible, list all substances known to be (or have been) stored or deposited therein.

(c) How and how often are these containers and storage areas checked for leaks or spills? For those containments no longer in use, describe how the containment was closed and attach as Attachment E all supporting documentation.

(d) Have any barrels, cans, bags or other containers which have at any time contained Hazardous Material (whether empty or not) been stored or discarded on the Subject Property (whether outside, buried or within a structure)?

Yes

Do not know

If yes, please describe and list methods and location of storage and disposal:

(e) Are there any refuse, storage or other disposal areas on the Subject Property?

Yes

If yes, please describe and locate on the Attachment D facilities map such facilities and describe the procedures for storage, collection, and disposal of refuse utilized at the facility:

(f) How are empty containers and other garbage from activities on the Subject Property disposed of?

(g) Do any of the structures, paved areas and other work areas contain floor drains or other direct connections to drainage areas, sump, septic systems, or public sewer facilities?

Yes

If yes, please describe the drainage system, and the manner in which it is currently used in the Applicant's operation:

4. Building Materials & Components

(a) Were any of the structures on the Subject Property constructed, remodeled, or renovated between the years of 1920 and 1980?

Yes

If yes, please describe the construction, remodeling or renovation:

(b) Do any of the structures or improvements on the Subject Property contain asbestos materials (whether incorporated in structures or stored on site) such as ceiling tiles, flooring, insulation, furnace protection, fireproofing materials, duct tape, etc.?

Yes

Do not know

If yes, please describe (including age, condition and location):

Yes

If yes, attach the report as Attachment G.

(d) Are there any transformers, capacitors or other electrical equipment in use or stored on site?

Yes

Do not know

If yes, please list:

C. Regulatory Information & History

1. Are there any permits or variances required for the waste or wastewater discharge arising from the current or proposed activities on the Subject Property?

Yes

Do not know

If “yes” please list permit or variance number, agency, date of issuance, date of expiration, if any, and attach a copy as Attachment H:

2. Are there any permits or variances necessary for the air emissions caused by current or proposed activities on the Subject Property?

Yes

Do not know

If yes, please give permit number, agency and date of issuance, date of expiration, if any, and attach a copy as Attachment I:

3. Are there any permits or variances necessary for underground tanks, sumps or other containments on the Subject Property?

Yes

Do not know

If yes, please list permit or variance number, agency and date of issuance, date of expiration, if any, and attach a copy as Attachment J:

4. Are any permits or variances necessary for Hazardous Material treatment, storage or disposal activities undertaken at the Subject Property?

Yes

Do not know

If yes, please list permit number, agency and date of issuance, date of expiration, if any, and attach a copy as Attachment K:

5. Are any other permits or variances necessary relative to the use, storage, handling, transportation or disposal of chemicals or other substances on the Subject Property?

Yes

Do not know

If yes, please list permit number(s), agency(ies) and date(s) of issuance, date of expiration, if any, and attach a copy as Attachment L:

6. Has any government agency issued any letter, notice or verbal communication indicating that it intended to investigate or seek information concerning environmental matters relating to the Subject Property?

Yes

Do not know

If yes, please specify and attach a copy as Attachment M:

7. Has any Hazardous Material ever been spilled, deposited, leaked, leached, disposed of or otherwise placed on or in the Subject Property?

Yes

If yes, please specify, and detail response and cleanup activities undertaken including any governmental agencies contacted, and attach as Attachment N copies of any reports, studies, plans or other documents generated:

8. Is the Subject Property or any activity conducted thereon in violation of or subject to penalty under any law, ordinance, rule or regulation relating to Hazardous Material, or the protection of the environment?

Yes

If yes, please specify and explain:

9. Has the Subject Property been designated, listed or identified in any manner by the United States Environmental Protection Agency (the “EPA”) or any other governmental agency as a Hazardous Material disposal or removal site, superfund or cleanup site or candidate for removal or closure pursuant to any federal, state, or local law?

Yes

If yes, please describe:

Attach as Attachment O copies of any warnings, citations, notices of violation, enforcement actions and administrative and judicial complaints or orders, and correspondence related to any Hazardous Material or environmental law or regulation.

10. Are you aware of any litigation or threatened litigation pertaining to the Subject Property?

Yes

If yes, please describe and attach as Attachment P a copy of any pleading:

E. Applicant Information:

For each Applicant, and each enterprise involved in operations on the Subject Property, list the following:

1. EPA identification numbers:

2. Ongoing or threatened environmental cleanup activities for which the Applicant is or may be subject to lawsuit, demand, liability, or responsibility for the conduct of cleanup or payment of cleanup costs:

(c) List all related businesses of the Applicant. As used herein, the term “related” means that the Applicant owns 51% of another business, or another business owns 51% of the Applicant.

As the present owner of the Subject Property or an interest therein, or as an officer or as a general partner of the present owner of the Subject Property (or the duly authorized representative of such owner), the undersigned, and each of them, individually certifies that he or she is familiar with the Subject Property and with all of the operations presently conducted on the Subject Property, has made a reasonable inquiry into the present and former uses and activities conducted on the Subject Property, the present and former uses and activities conducted within the vicinity of that property, and all other matters relevant to a full disclosure of all environmental concerns and issues relative to the Subject Property, and that, to the best of the knowledge, information and belief of the undersigned, the information disclosed above is complete, true and correct. The undersigned acknowledges that the Coordinator intends to rely upon the disclosure made above or attached hereto in determining whether and on what terms it will make a loan to Applicant.

________APPLICANT

By: ________

Title: ________

Date Signed: ________

Exhibit A

1. The term “Hazardous Material” shall have the meaning ascribed thereto to Title 10, Chapter 6.81, Section 8050(m) of the California Code of Regulations.

2. The term “permit” shall include any permit, registration, certification or other filing or action which must be obtained from, or filed with any government agency, or is otherwise required in order for the applicant for a loan to conduct operations, or own or operate any equipment or facility.

Exhibit B

The assessment asks for several attachments. Please clearly identify all attachments, and circle the below letters which correspond to the attachments enclosed. The descriptions are merely for reference, the full description of materials to be attached is listed in the assessment itself.

Attachment Assessment # Description

A B.1.(g) Previous environmental

assessments

B B.2.(b) List of hazardous substances

C B.2.(d) Process flow diagram

D B.3.(a) Facility map

E B.3.(b) Containment list

F B.3.(c) Closed containment

documentation

G B.4.(c) Asbestos reports

H C.1. Waste or wastewater

discharge permits

I C.2. Air emission permits

J C.3. Underground tank permits

K C.4. Hazardous waste permits

L C.5. Chemical permits

M C.6. Government Agency

environmental

correspondence

N C.7. Release onto Subject Property

O C.9. Government listing of

Subject Property

P C.10. Litigation

NOTE

Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 44533(b) and 44548, Health and Safety Code.

HISTORY

1. New article 6 and section filed 10-11-94; operative 11-10-94 (Register 94, No. 41).

Article 7. Capital Access Program for Small Businesses

§8070. Definitions.

Note • History

In addition to the definitions in Section 8020, the following terms shall have the following definitions, unless the context requires otherwise:

(a) “Borrower” means a Qualified Business which obtains a Qualified Loan from a Participating Financial Institution.

(b) “Contribution” means any or all eligible funds deposited to a Loss Reserve Account.

(c) “Executive Director” means the Executive Director of the California Pollution Control Financing Authority, or his or her designee from time to time.

(d) “Fees” or “Fee” and “Premiums” or “Premium” means a non-refundable fees or fee as set forth in Health and Safety Code Section 44559.4(c).

(e) “Financial Institution” means an institution as set forth in Health and Safety Code Section 44559.1(d). Financial Institution also includes microbusiness lenders, as defined in Section 13997.2 of the Government Code that make small business loans and require a minimum of four hours of preloan business technical and/or credit assistance to borrowers and a minimum of two hours of postloan assistance each year, and are subject to an audit requirement by its Federal or State regulated funding source.

(f) “Independent Contributor” means any individual, company, corporation, institution, foundation, utility, government agency or other entity, including any consortium of these persons or entities, whether public or private (but excluding any Borrower), that, pursuant to the provisions of this Article, deposits Contributions to a Loss Reserve Account.

(g) “Individual” means a natural person, together, if applicable, with any of his or her spouse, parents, siblings or children or the parents or spouse of any of them.

(h) “Law” means Article 8 (commencing with Section 44559) of Chapter 1 of Division 27 of the California Health and Safety Code, as amended from time to time.

(i) “Loss Reserve Account” means an account held by a Program Trustee or by any Participating Financial Institution that is established and maintained by the Authority for the benefit of a Participating Financial Institution for the purposes set forth in Section 8073 and Section 8078.2.

(j) “Matching Contribution” means a contribution to a Loss Reserve Account as set forth in Health and Safety Code Section 44559.4(d).

(k) “Money Market Fund” means an open-ended management investment company regulated under the Investment Company Act of 1940, as amended, which values its securities pursuant to Section 270.2a-7 of Title 17 of the Code of Federal Regulations.

(l) “Participating Financial Institution” means a Financial Institution that has been approved by the Authority to enroll Qualified Loans in the Program and has agreed to all terms and conditions set forth in the Law and this Article and as may be required by any applicable federal law providing matching funding.

(m) “Passive Real Estate Ownership” means ownership of real estate for the purpose of deriving income from speculation, trade or rental, but does not include any of the following:

(1) The ownership of that portion of real estate being used or intended to be used for the operation of the business of the owner of the real estate; or

(2) The ownership of real estate for the purpose of construction or renovation, until the completion of the construction or renovation phase.

For purposes of clause (1) above, the Borrower must be using or planning to use upon acquisition or construction of a building, at least 51 percent of the space in an existing building or at least 67 percent of the space in a newly constructed building. The requirements of clause (1) above will be deemed to be satisfied when a Participating Financial Institution makes a Qualified Loan to an Individual, or to a partnership or trust wholly owned or controlled by one or more Individuals, for the purpose of financing property that will be leased to a Qualified Business that is wholly owned by those same Individuals, and in such case the Qualified Loan will be deemed to be made also to such Qualified Business.

(n) “Primary business location in California” means that a business will be deemed to be located in California if either:

(1) a majority of the employees of the business are located in California; or

(2) the Executive Director determines that the Primary business location is in California by finding that the average of the “Payroll Factor” as defined in Revenue and Taxation Code Section 25132, the “Income Factor” as defined in Revenue and Taxation Code Section 25128, and the “Sales Factor” as defined in Revenue and Taxation Code Section 25134 is greater than 50 percent.

(o) “Primary economic effect in California” means, as applied to a business activity, that either of the following conditions exists:

(1) At least 51 percent of the total revenues of the business activity are generated in California; or

(2) At least 51 percent of the total jobs of the business activity are created or retained in California.

(p) “Program” means the Capital Access Loan Program for Small Businesses established pursuant to the Law.

(q) “Program Trustee” means a bank or trust company, or the State Treasurer, chosen by the Authority from time to time to hold or administer some or all of the Loss Reserve Accounts.

(r) “Qualified Business” and “Small Business Concern” means a business as set forth in Health and Safety Code Section 44559.1 subdivisions (i) and (m), that is not dominant in its field of operation, and that together with affiliates, has 500 or fewer employees.

(s) “Qualified Loan” means a loan or a portion of a loan made by a Participating Financial Institution to a Qualified Business for any business activity that has its Primary economic effect in California. A Qualified Loan may be made in the form of a line of credit, in which case the Participating Financial Institution shall specify the amount of the line of credit to be covered under the Program, which may be equal to the maximum commitment under the line of credit or an amount that is less than the maximum commitment. A Qualified Loan may be made in the form of a TRAC Lease when the Loan Loss Reserve Account is funded from an Independent Contributor. “Qualified Loan” does not include any of the following:

(1) A loan for the construction or purchase of residential housing.

(2) A loan to finance Passive Real Estate Ownership.

(3) A loan for the refinancing of debt already held by the Participating Financial Institution other than a prior Qualified Loan enrolled under the Program, except to the extent of any increase in the outstanding balance.

(4) A loan, the proceeds of which will be used

(A) to provide any of the following facilities, regardless of the source of funds used for the Authority's matching contribution: massage parlor, hot tub facility, racetrack, facility primarily used for gambling or to facilitate gambling, or store whose principal business is the sale of alcoholic beverages for consumption off premises, bars, a store or other facility whose principal business is the sale of firearms, a store or other facility whose principal business is the manufacture or sale of tobacco or tobacco products, escort service, nudist camp, adult entertainment (including strip clubs, adult book stores, and businesses whose principal business is the sale of pornography), gun club, shooting range or gallery.

(B) to provide any of the following facilities when the Authority's matching contributions will be paid for with fees from the issuance of tax-exempt bond sales, all items listed in (A) and: private or commercial golf course, country club, spas that provide massage services, tennis club, skating facility (including roller skating, skateboard, and ice skating), racquet sports facility (including any handball or racquetball court), suntan facility, airplane, aircraft, skybox (or other private luxury box), health club facility.

(C) in any manner that could cause the interest on any bonds previously issued by the Authority to become subject to federal income tax, as specified in writing to all Participating Financial Institutions by the Executive Director.

(5) any loan or portion thereof to the extent the same loan or portion thereof has been, is being, or will be enrolled in any other government program substantially similar to the Program.

(6) any loan that exceeds $5,000,000.

(7) any loan or portion thereof to the extent that enrollment of the loan will cause the Borrower (including all related entities among which a common enterprise exists) to have a total enrolled principal amount in excess of $2,500,000 at any Participating Financial Institution over a three-year period.

(t) “Severely Affected Community” means any area classified as an enterprise zone pursuant to the Enterprise Zone Act, Chapter 12.8 (commencing at Section 7070) of Division 7 of Title 1 of the California Government Code; any area, as designated by the Executive Director, contiguous to the boundaries of a military base designated for closure pursuant to Public Law 101-150, as amended; and any other comparable economically distressed geographic area so designated by the Executive Director from time to time.

(u) “Small Business Assistance Fund” means a fund of that name created by the Authority.

(v) “Standards” means the criteria to be used by an Independent Contributor in assisting businesses through the Program.

(w) “TRAC Lease” means “Terminal Rental Adjustment Clause” as defined in Section 7701(h)(3) of Title 26 of the United States Code.

NOTE

Authority cited: Sections 44520 and 44559.5(f), Division 27, Health and Safety Code. Reference: Sections 44559.1, 44559.2, 44559.3, 44559.4, 44559.5, 44559.7, 44559.9 and 44559.12, Division 27, Health and Safety Code.

HISTORY

1. New article 7 and section filed 3-21-94 as an emergency; operative 3-21-94 (Register 94, No. 12). This filing was deemed an emergency by Health and Safety Code section 44520(b). A Certificate of Compliance must be transmitted to OAL by 9-19-94 or the emergency regulation will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 3-21-94 order including amendment of subsections (n)(3) and (p) and Note transmitted to OAL 9-16-94 and filed 10-31-94 (Register 94, No. 44).

3. Amendment of subsections (d) and (e), new subsections (f) and (g) and subsection relettering, amendment of newly designated subsection (i), new subsections (j)-(k)(2) and subsection relettering, amendment of newly designated subsections (l) and (m)(2), repealer of former subsections (m)(3)-(m)(3)(B), amendment of newly designated subsections (t)-(v), new subsection (w), and amendment of Note filed 2-6-96 as an emergency pursuant to Health and Safety Code section 44520(b); operative 2-6-96 (Register 96, No. 6). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-5-96 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 2-6-96 order, including amendment of subsection (d), new subsection (k), subsection relettering, and amendment of newly designated subsection (r), transmitted to OAL 8-2-96 and filed 9-10-96 (Register 96, No. 37).

5. Amendment of subsections (d), (f) and (l)(1) filed 12-23-98; operative 12-23-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 52).

6. Amendment of subsections (e), (t) and (t)(4)(A) filed 2-24-2000 as an emergency pursuant to Health and Safety Code section 44520; operative 2-24-2000 (Register 2000, No. 8). A Certificate of Compliance must be transmitted to OAL by 8-22-2000 or emergency language will be repealed by operation of law on the following day.

7. Certificate of Compliance as to 2-24-2000 order transmitted to OAL 8-21-2000 and filed 10-2-2000 (Register 2000, No. 40).

8. Repealer of subsections (l)-(l)(2), subsection relettering and amendment of newly designated subsection (s)(4)(A) filed 12-18-2000 as an emergency pursuant to Health and Safety Code section 44520; operative 1-1-2001 (Register 2000, No. 51). A Certificate of Compliance must be transmitted to OAL by 7-2-2001 or emergency language will be repealed by operation of law on the following day.

9. Certificate of Compliance as to 12-18-2000 order transmitted to OAL 6-14-2001 and filed 7-26-2001 (Register 2001, No. 30).

10. Change without regulatory effect redesignating former section (e) as new subsection (e)(1) and adding subsections (e)(2)-(3) filed 10-29-2001 pursuant to section 100, title 1, California Code of Regulations (Register 2001, No. 44).

11. Amendment of subsection (d) filed 12-29-2005 as an emergency pursuant to Health and Safety Code section 44520(b); operative 12-29-2005 (Register 2005, No. 52). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 6-27-2006 or emergency language will be repealed by operation of law on the following day.

12. Certificate of Compliance as to 12-29-2005 order transmitted to OAL 4-21-2006 and filed 6-1-2006 (Register 2006, No. 22).

13. New subsection (e)(3), subsection renumbering, amendment of subsection (f), new subsection (s)(5) and amendment of subsection (v) filed 1-22-2008 as an emergency; operative 1-22-2008 (Register 2008, No. 4). A Certificate of Compliance must be transmitted to OAL by 7-21-2008 or emergency language will be repealed by operation of law on the following day.

14. Certificate of Compliance as to 1-22-2008 order, including amendment of subsection (j) and repealer of subsections (j)(A)-(j)(B)(2), transmitted to OAL 5-30-2008 and filed 7-14-2008 (Register 2008, No. 29).

15. Amendment of subsection (d), redesignation and amendment of former subsection (e)(1) as subsection (e), repealer of subsections (e)(2)-(4), new subsection (s)(6) and amendment of Note filed 2-11-2009 as an emergency; operative 2-11-2009 (Register 2009, No. 7). A Certificate of Compliance must be transmitted to OAL by 8-10-2009 or emergency language will be repealed by operation of law on the following day.

16. Certificate of Compliance as to 2-11-2009 order transmitted to OAL 5-29-2009 and filed 6-23-2009 (Register 2009, No. 26).

17. Amendment of subsection (s)(4)(A) filed 12-17-2009 as an emergency; operative 12-17-2009 (Register 2009, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-15-2010 or emergency language will be repealed by operation of law on the following day.

18. Amendment of subsection (s)(4)(A) refiled 6-21-2010 as an emergency; operative 6-21-2010 (Register 2010, No. 26). A Certificate of Compliance must be transmitted to OAL by 9-20-2010 or emergency language will be repealed by operation of law on the following day.

19. Repealer of 6-21-2010 operative amendment of subsection (s)(4)(A) by operation of law; operative 9-21-2010 (Register 2010, No. 40).

20. Amendment of subsection (s)(4)(A) refiled 9-29-2010 as an emergency; operative 9-29-2010 (Register 2010, No. 40). A Certificate of Compliance must be transmitted to OAL by 12-28-2010 or emergency language will be repealed by operation of law on the following day.

21. Amendment of subsection (r), repealer of subsections (r)(1)-(2), amendment of subsection (s)(6), new subsection (s)(7), repealer of subsection (v) and subsection relettering filed 11-29-2010 as an emergency; operative 11-29-2010 (Register 2010, No. 49). A Certificate of Compliance must be transmitted to OAL by 5-31-2011 or emergency language will be repealed by operation of law on the following day.

22. Certificate of Compliance as to 9-29-2010 order transmitted to OAL 11-24-2010 and filed 1-6-2011 (Register 2011, No. 1).

23. Amendment of subsections (d), (r) and (s)(4)(A), new subsection (s)(4)(B) and subsection relettering filed 3-7-2011 as an emergency; operative 3-7-2011 (Register 2011, No. 10). A Certificate of Compliance must be transmitted to OAL by 9-6-2011 or emergency language will be repealed by operation of law on the following day.

24. Notice of repeal and deletion of 11-29-2010 emergency amendment by operation of Government Code section 11346.1(f) (Register 2011, No. 33).

25. Amendment of subsection (r), repealer of subsections (r)(1)-(2), amendment of subsections (s)(4)(B) and (s)(6), new subsection (s)(7), repealer of subsection (v) and subsection relettering filed 8-16-2011; operative 8-16-2011 pursuant to Government Code section 11343.4(c) (Register 2011, No. 33).

26. Certificate of Compliance as to 3-7-2011 order transmitted to OAL 7-29-2011 and filed 8-16-2011 (Register 2011, No. 33).

27. Amendment of subsections (j), (s), (s)(4)(A) and (s)(7) and new subsection (w) filed 11-7-2011 as an emergency; operative 11-7-2011 (Register 2011, No. 45). A Certificate of Compliance must be transmitted to OAL by 5-7-2012 or emergency language will be repealed by operation of law on the following day.

28. Certificate of Compliance as to 11-7-2011 order, including amendment of Note, transmitted to OAL 2-22-2012 and filed 2-29-2012 (Register 2012, No. 9).

29. Amendment of subsection (e) filed 3-2-2012 as an emergency; operative 3-2-2012 (Register 2012, No. 9). A Certificate of Compliance must be transmitted to OAL by 8-29-2012 or emergency language will be repealed by operation of law on the following day.

30. Repealer of definition of “Early Stage Loan,” new definition of “Contribution” and amendment of definitions of “Independent Contributor,” “Loss Reserve Account” and “Standards” filed 6-25-2012 as an emergency; operative 6-25-2012 (Register 2012, No. 26). A Certificate of Compliance must be transmitted to OAL by 12-24-2012 or emergency language will be repealed by operation of law on the following day.

31. Certificate of Compliance as to 3-2-2012 order transmitted to OAL 6-13-2012 and filed 7-26-2012 (Register 2012, No. 30).

32. Certificate of Compliance as to 6-25-2012 order transmitted to OAL 12-20-2012 and filed 2-4-2013 (Register 2013, No. 6).

§8071. Application by Financial Institution.

Note • History

(a) A Financial Institution seeking to participate in the Program will complete a registration application provided by the Authority.

The application shall include the following information:

(1) name of applicant Financial Institution.

(2) name, address and telephone number of contact person.

(3) combined capital and surplus as of the end of the Financial Institution's most recent fiscal year.

(4) number of lending branches.

(5) certification that the applicant Financial Institution is not subject to a cease and desist order or other regulatory sanction with the appropriate federal or state regulatory body, which would impair its ability to participate in the Program, and the name of that body.

(6) a full description of the board of directors, including number, race, ethnicity and gender of its members.

(7) the Financial Institution's rating from a nationally recognized credit rating agency which assesses the financial soundness and stability of financial institutions.

(8) the Financial Institution's agreement to follow the Program's procedures as set forth in the Law and this Article.

(9) the Financial Institution's agreement to permit an audit of any of its records relating to enrolled Qualified Loans, during normal business hours on its premises, by the Authority or its agents, and to supply such other information concerning enrolled Qualified Loans as shall be requested by the Executive Director.

(10) acknowledgment by the Financial Institution that the Authority and the State will have no liability to the Participating Financial Institution under the Program except from funds deposited in the Loss Reserve Account for the Participating Financial Institution.

(b) Upon receipt of a completed application, the Executive Director will within 10 days review and determine whether additional information is required, or whether the application is sufficient to permit the applicant to be a Participating Financial Institution. The Executive Director's decision whether an application is sufficient shall be final.

(c) A Participating Financial Institution shall be authorized to request the Authority to establish two or more Loss Reserve Accounts for such institution, so that the institution shall be able to allocate any Qualified Loan enrolled under Section 8072 to whichever Loss Reserve Account it designates.

NOTE

Authority cited: Sections 44520 and 44559.5(f), Division 27, Health and Safety Code. Reference: Section 44559.2, Division 27, Health and Safety Code.

HISTORY

1. New section filed 3-21-94 as an emergency; operative 3-21-94 (Register 94, No. 12). This filing was deemed an emergency by Health and Safety Code section 44520(b). A Certificate of Compliance must be transmitted to OAL by 9-19-94 or the emergency regulation will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 3-21-94 order including amendment of Note transmitted to OAL 9-16-94 and filed 10-31-94 (Register 94, No. 44).

3. Amendment of subsections (a)(2), (a)(5) and (b) filed 2-6-96 as an emergency pursuant to Health and Safety Code section 44520(b); operative 2-6-96 (Register 96, No. 6). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-5-96 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 2-6-96 order transmitted to OAL 8-2-96 and filed 9-10-96 (Register 96, No. 37).

5. Amendment of subsection (a)(9) filed 12-29-2005 as an emergency pursuant to Health and Safety Code section 44520(b); operative 12-29-2005 (Register 2005, No. 52). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 6-27-2006 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 12-29-2005 order transmitted to OAL 4-21-2006 and filed 6-1-2006 (Register 2006, No. 22).

7. Amendment of subsection (c) filed 6-25-2012 as an emergency; operative 6-25-2012 (Register 2012, No. 26). A Certificate of Compliance must be transmitted to OAL by 12-24-2012 or emergency language will be repealed by operation of law on the following day.

8. Certificate of Compliance as to 6-25-2012 order transmitted to OAL 12-20-2012 and filed 2-4-2013 (Register 2013, No. 6).

§8072. Loan Enrollment.

Note • History

(a) The terms and conditions of Qualified Loans, including interest rates, fees and other conditions, shall be determined solely by agreement of the Participating Financial Institution and the Borrower.

(b) A Participating Financial Institution shall be authorized to enroll under the Program all or a part of any Qualified Loan:

(1) by notifying the Authority in writing, within 15 business days after the Qualified Loan is made, that it is enrolling a Qualified Loan. For purposes of this section, the date on which the Participating Financial Institution makes a Qualified Loan is the date on which the Participating Financial Institution first disburses proceeds of the Qualified Loan to the Borrower; and

(2) by transmitting to the Authority the Fees collected from the Participating Financial Institution and the Borrower, or from an Independent Contributor on behalf of the Borrower and/or the Authority, in connection with the Qualified Loan, and by providing written evidence that the Fees have been deposited in a Loss Reserve Account held by either the Participating Financial Institution or the Program Trustee.

(1) Borrower name, D/B/A (if any), and the business address.

(2) Brief description of the Borrower's business and regular activties, either the SIC Code(s) or the NAICS Code(s) applicable to such business, and the amount of its annual revenues.

(3) Whether this business has been open for two years or more, and is owned by one of the following: a woman, minority, or veteran.

(4) Brief summary of the intended use of the proceeds of the Qualified Loan.

(5) Amount of the Qualified Loan being enrolled (and indication if less than the full amount of the Qualified Loan is being enrolled) and the lender loan number.

(6) Type of the Qualified Loan (e.g., line of credit, term loan, TRAC Lease).

(7) Date of the Qualified Loan.

(8) Interest rate applicable to the Qualified Loan.

(9) Term or maturity date of the Qualified Loan.

(10) Geographic location of the Qualified Business and the location of the facilities being financed if different.

(11) Whether the Qualified Business or the location of the facilities being financed is in a Severely Affected Community.

(12) Whether the loan is secured.

(13) Whether the loan is a refinancing, and if so, whether the prior loan was enrolled under the Program, and whether the amount of the loan was increased as part of the refinancing.

(14) Agreed amount of the Fees payable by each of the Borrower and the Participating Financial Institution.

(15) Whether any portion of the Fees payable by the Borrower or the Contribution was or is to be paid by an Independent Contributor; the identity of such Independent Contributor; and a certification that the Independent Contributor has approved the use of its funds to pay such Fees or Contribution in connection with the Qualified Loan.

(16) Number of persons currently employed by the Borrower, and number of jobs expected to be created, retained or affected by the Qualified Loan.

(17) Certification that the loan is a Qualified Loan, and that the business receiving the Qualified Loan is a Qualified Business.

(18) Certification that the Qualified Loan is for a business activity that has its Primary economic effect in California.

(19) Certification that, upon request of the Executive Director, the Participating Financial Institution will provide information from the financial records of the Borrower, and that the Participating Financial Institution has obtained the consent of the Borrower to such disclosure.

(20) Certification that the Participating Financial Institution has obtained a written representation from the Borrower that it has no legal, beneficial or equitable interest in the Fees or the Contribution.

(21) Certification that the enrolled amount of the loan does not exceed $2,500,000.

(22) Certification that the Participating Financial Institution has notified the Borrower if the Participating Financial Institution's share of the Fees for the Qualified Loan have been paid by the Borrower.

(23) Acknowledgment that the lending activities of the Participating Financial Institution are subject to any applicable safety and soundness standards as set forth in applicable federal banking regulations.

The Participating Financial Institution shall be authorized to base the information requested by subsections (4), (16), (17), (18) and (21) above upon representations made to it by the Borrower; provided that no such Borrower representation may be relied upon if it is known to be false by the lending officer(s) at the Participating Financial Institution who are directly involved in the negotiation of the Qualified Loan.

(24) Certification that the Participating Financial Institution has obtained a written representation from the Borrower that it has secured or made application for all applicable licenses or permits needed to conduct business.

(25) Certification from the Participating Financial Institution that it has not, and will not, enroll the same loan or portion thereof in any other government program substantially similar to the Program.

(d) If a Borrower seeking a loan from a Participating Financial Institution has less than a majority of its employees in California, the Participating Financial Institution shall be authorized to submit information to, and seek a determination from, the Executive Director that such Borrower has its Primary business location in California. Such determination shall be made by the Executive Director within 10 days of receipt of a written request from a Participating Financial Institution containing information about the business activities of the proposed Borrower.

(e) If a Borrower seeking a Qualified Loan from a Participating Financial Institution is an employee, member, director, officer, principle shareholder, or affiliate of the Participating Financial Institution, the terms and the conditions of the Qualified Loan and the internal procedures used to approve the Qualified Loan must comply with the following requirements:

(1) If the Participating Financial Institution is a federal-chartered bank, the Qualified Loan must be made in accordance with all applicable federal banking laws that regulate conflicts of interests and insider transactions and Sections 371c, 371c-1, 375a, and 375b of the Title 12 of the United States Code, and Sections 215.4 of Title 12 of the Code of Federal Regulations.

(2) If the Participating Financial Institution is a state-chartered bank, the Qualified Loan must be made in accordance with all applicable state banking laws that regulate conflicts of interests and insider transactions and Section 3370 et seq. of the Financial Code, and Sections 10.19300 to 10.19302 of Title 10 of the California Code of Regulations.

(3) If the Participating Financial Institution is a federal-chartered savings association, the Qualified Loan must be made in accordance with all applicable federal banking laws that regulate conflicts of interests and insider transactions and Section 1468 of Title 12 of the United States Code.

(4) If the Participating Financial Institution is a state-chartered savings association, the Qualified Loan must be made in accordance with all applicable state banking laws that regulate conflicts of interests and insider transactions and Sections 6503 and 6529 of the Financial Code.

(5) If the Participating Financial Institution is a federal-chartered credit union, the Qualified Loan must be made in accordance with all applicable federal banking laws that regulate conflicts of interests and insider transactions and Sections 1757 and 1761c of Title 12 of the United States Code and Section 701.21(d) of Title 12 of the Code of Federal Regulations.

(6) If the Participating Financial Institution is a state-chartered credit union, the Qualified Loan must be made in accordance with all applicable state banking laws that regulate conflicts of interests and insider transactions and Section 15050 of the Financial Code.

(7) If the Participating Financial Institution is a not-for-profit certified community development financial institution (CDFI), the Qualified Loan must be made in accordance with all applicable federal banking laws that regulate conflicts of interests and insider transactions and Sections 1805.807 of Title 12 of the Code of Federal Regulations.

(8) If the Participating Financial Institution is a lending institution as described in Section 44559.1(d)(2) of the Health and Safety Code, the Qualified Loan must be made in accordance with any applicable federal laws that regulate conflicts of interests and insider transactions and Section 120.140 of Title 13 of the Code of Federal Regulations.

(f) The Participating Financial Institution shall pre-qualify with the Authority any qualified loan with a principal amount of $500,000 or more. Pre-qualifications shall be valid for six (6) months.

(g) The Authority shall, upon receipt of documentation and Fees from the Participating Financial Institution, enroll the Qualified Loan if the Executive Director determines that the Qualified Loan meets the requirements of the Law and this Article. The Executive Director shall notify the Participating Financial Institution of enrollment within 15 business days after receipt by the Authority of all documentation and Fees required by the Law and/or this Article. The Executive Director's determination whether a loan shall be enrolled in the Program shall be final. The Executive Director shall be authorized to review an application for enrollment submitted by a Participating Financial Institution in advance of the making of the loan, and notify the institution whether such loan meets the requirements of the Law and this Article.

(h) Upon enrollment of a Qualified Loan, the Contribution shall be transferred for deposit in the Loss Reserve Account (1) by the Authority or (2) by an Independent Contributor, and the Program Trustee shall notify the Participating Financial Institution of the transfer and of the source of funds from which the transfer was made.

(i) If the amount is increased, or previously enrolled CalCAP loans are combined, a new loan enrollment form shall be submitted, and Fees (if applicable) shall be transmitted or deposited pursuant to Section 8072(b)(2) based on the increased amount.

(j) Without regard to the terms of the loan, the term of enrollment in the Program shall not exceed ten years.

NOTE

Authority cited: Sections 44520 and 44559.5(f), Division 27, Health and Safety Code. Reference: Sections 44559.2 and 44559.4, Division 27, Health and Safety Code.

HISTORY

2. Certificate of Compliance as to 3-21-94 order including amendment of subsection (c)(20), new subsections (g) and (h) and amendment of Note transmitted to OAL 9-16-94 and filed 10-31-94 (Register 94, No. 44).

3. Amendment of subsections (b)(1), (b)(2) and (c)(2), new subsections (c)(3) and (c)(4) and subsection renumbering, amendment of newly designated subsection (c)(6), new subsections (c)(8) and (c)(9), amendment of newly designated subsections (c)(11) and (c)(14), new subsection (c)(15), amendment of newly designated subsections (c)(16), (c)(17), (c)(19) and (c)(22), amendment of subsections (d) and (e), new subsection (f) and subsection relettering, and amendment of newly designated subsections (g) and (h) filed 2-6-96 as an emergency pursuant to Health and Safety Code section 44520(b); operative 2-6-96 (Register 96, No. 6). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-5-96 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 2-6-96 order, including amendment of subsections (c)(4), (c)(15), (c)(17) and (c)(22), and new subsections (c)(23)-(24), transmitted to OAL 8-2-96 and filed 9-10-96 (Register 96, No. 37).

5. Amendment of subsections (a), (b)(2), (c)(2), (c)(3), (c)(15), (c)(19), (c)(22), (d), (e), (h) and (i) filed 12-23-98; operative 12-23-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 52).

6. Amendment of subsections (c)(1)-(3), (c)(19) and (c)(21) filed 2-24-2000 as an emergency pursuant to Health and Safety Code section 44520; operative 2-24-2000 (Register 2000, No. 8). A Certificate of Compliance must be transmitted to OAL by 8-22-2000 or emergency language will be repealed by operation of law on the following day.

7. Certificate of Compliance as to 2-24-2000 order transmitted to OAL 8-21-2000 and filed 10-2-2000 (Register 2000, No. 40).

8. Repealer of subsection (c)(19), subsection renumbering, amendment of newly designated subsection (c)(23) and subsection (d), repealer of subsection (f), subsection relettering and amendment of Note filed 12-18-2000 as an emergency pursuant to Health and Safety Code section 44520; operative 1-1-2001 (Register 2000, No. 51). A Certificate of Compliance must be transmitted to OAL by 7-2-2001 or emergency language will be repealed by operation of law on the following day.

9. Certificate of Compliance as to 12-18-2000 order transmitted to OAL 6-14-2001 and filed 7-26-2001 (Register 2001, No. 30).

10. Amendment of subsections (b)(1) and (g) filed 8-8-2002 as an emergency pursuant to Health and Safety Code section 44520(b); operative 8-8-2002 (Register 2002, No. 32). A Certificate of Compliance must be transmitted to OAL by 2-4-2003 or emergency language will be repealed by operation of law on the following day.

11. Certificate of Compliance as to 8-8-2002 order transmitted to OAL 2-3-2003 and filed 3-6-2003 (Register 2003, No. 10).

12. Amendment of subsection (c)(2), new subsections (e)-(e)(8) and subsection relettering filed 12-29-2005 as an emergency pursuant to Health and Safety Code section 44520(b); operative 12-29-2005 (Register 2005, No. 52). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 6-27-2006 or emergency language will be repealed by operation of law on the following day.

13. Certificate of Compliance as to 12-29-2005 order transmitted to OAL 4-21-2006 and filed 6-1-2006 (Register 2006, No. 22).

14. Amendment of subsections (b)(1), (b)(21) and (b)(23) and new subsections (b)(24)-(26) and (e)(9) filed 1-22-2008 as an emergency; operative 1-22-2008 (Register 2008, No. 4). A Certificate of Compliance must be transmitted to OAL by 7-21-2008 or emergency language will be repealed by operation of law on the following day.

15. Certificate of Compliance as to 1-22-2008 order, including amendment of subsection (f), transmitted to OAL 5-30-2008 and filed 7-14-2008 (Register 2008, No. 29).

16. Amendment of subsection (c)(21), redesignation of former subsection (e)(9) as subsection (f) and subsection relettering filed 2-11-2009 as an emergency; operative 2-11-2009 (Register 2009, No. 7). A Certificate of Compliance must be transmitted to OAL by 8-10-2009 or emergency language will be repealed by operation of law on the following day.

17. Certificate of Compliance as to 2-11-2009 order transmitted to OAL 5-29-2009 and filed 6-23-2009 (Register 2009, No. 26).

18. Amendment of subsections (f) and (i) and new subsection (k) filed 12-17-2009 as an emergency; operative 12-17-2009 (Register 2009, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-15-2010 or emergency language will be repealed by operation of law on the following day.

19. Amendment of subsection (f) and (i) and new subsection (k) refiled 6-21-2010 as an emergency, including additional amendments to subsections (c)(23), (e)(8) and (i); operative 6-21-2010 (Register 2010, No. 26). A Certificate of Compliance must be transmitted to OAL by 9-20-2010 or emergency language will be repealed by operation of law on the following day.

20. Repealer of 6-21-2010 operative amendment of subsections (f) and (i) and adoption of new subsection (k) by operation of law; operative 9-21-2010 (Register 2010, No. 40).

21. Amendment of subsections (f) and (i) and new subsection (k) refiled 9-29-2010 as an emergency; operative 9-29-2010 (Register 2010, No. 40). A Certificate of Compliance must be transmitted to OAL by 12-28-2010 or emergency language will be repealed by operation of law on the following day.

22. Amendment of subsection (c)(21), repealer of subsection (j) and subsection relettering filed 11-29-2010 as an emergency; operative 11-29-2010 (Register 2010, No. 49). A Certificate of Compliance must be transmitted to OAL by 5-31-2011 or emergency language will be repealed by operation of law on the following day.

23. Certificate of Compliance as to 9-29-2010 order transmitted to OAL 11-24-2010 and filed 1-6-2011 (Register 2011, No. 1).

24. Amendment of subsections (c)(1)-(2), repealer and new subsection (c)(3) and amendment of subsections (c)(5)-(6) and (c)(22) filed 3-7-2011 as an emergency; operative 3-7-2011 (Register 2011, No. 10). A Certificate of Compliance must be transmitted to OAL by 9-6-2011 or emergency language will be repealed by operation of law on the following day.

25. Notice of repeal and deletion of 11-29-2010 emergency amendment by operation of Government Code section 11346.1(f) (Register 2011, No. 33).

26. Amendment of subsections (c)(1) and (c)(21), repealer of subsection (j) and subsection relettering filed 8-16-2011; operative 8-16-2011 pursuant to Government Code section 11343.4(c) (Register 2011, No. 33).

27. Certificate of Compliance as to 3-7-2011 order transmitted to OAL 7-29-2011 and filed 8-16-2011 (Register 2011, No. 33).

28. Amendment of subsections (c)(3), (c)(6) and (c)(9) and repealer of subsection (c)(26) filed 11-7-2011 as an emergency; operative 11-7-2011 (Register 2011, No. 45). A Certificate of Compliance must be transmitted to OAL by 5-7-2012 or emergency language will be repealed by operation of law on the following day.

29. Certificate of Compliance as to 11-7-2011 order transmitted to OAL 2-22-2012 and filed 2-29-2012 (Register 2012, No. 9).

30. Amendment of subsections (c)(15), (c)(20) and (h) filed 6-25-2012 as an emergency; operative 6-25-2012 (Register 2012, No. 26). A Certificate of Compliance must be transmitted to OAL by 12-24-2012 or emergency language will be repealed by operation of law on the following day.

31. Amendment of subsections (b)(1) and (g) filed 2-11-2013 as an emergency; operative 2-11-2013 (Register 2013, No. 7). A Certificate of Compliance must be transmitted to OAL by 8-12-2013 or emergency language will be repealed by operation of law on the following day.

§8073. Loss Reserve Accounts.

Note • History

(a) Upon the Executive Director's acceptance of an application under Section 8071, the Authority shall establish a Loss Reserve Account for that Participating Financial Institution for the following purposes:

(1) to receive all Fees deposited by the Participating Financial Institution, Borrowers and/or Independent Contributors;

(2) to receive Matching Contributions deposited by the Authority and/or Independent Contributors; and

(3) to pay claims in accordance with Section 8074.

(b) The Loss Reserve Account shall, in the Authority's sole determination, be held by the Participating Financial Institution or by a Program Trustee.

(c) Any Loss Reserve Account held in a Participating Financial Institution shall be an interest-bearing demand account or deposit account at a banking institution, or a Money Market Fund approved by the Executive Director, or a combination thereof, and earning a rate of interest that would be expected of accounts of similar type and size. The Loss Reserve Account shall be insured by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund, or the Securities Investor Protection Corporation, as appropriate, to the extent permitted by law. The Authority shall not deposit any Loss Reserve Account with a Participating Financial Institution if:

(1) there are any charges by the Participating Financial Institution for the establishment or maintenance of the Loss Reserve Account at such Financial Institution; or

(2) at the time the Loss Reserve Account is established with the Participating Financial Institution, it has a rating below “75” from IDC Financial Publishing Inc.'s Bank Financial Quarterly, S&L-Savings Bank Financial Quarterly, or Credit Union Financial Profiles; or it has a rating of “C” or below from LACE Financial Corp; or it has a rating below “11” from Highline Inc.'s Bank Quarterly or S&L Quarterly or successor publication approved by the Executive Director.

(d) All moneys in a Loss Reserve Account are property of the Authority (subject to the Participating Financial Institution's right to receive a portion of the remaining balance in the Loss Reserve Account upon its withdrawal from the Program pursuant to Section 8076 and subject to subsection (e) below). Interest or income earned on moneys credited to the Loss Reserve Account shall be deemed to be part of the Loss Reserve Account. The Executive Director shall be authorized to withdraw from the loss reserve all interest and income that has been credited to the loss reserve account as set forth in Health and Safety Code Section 44559.3(d). The Executive Director shall be authorized to return to a Participating Financial Institution any fees improperly deposited in a Loss Reserve Account.

(e) Notwithstanding any other provision of this article, the Executive Director shall be authorized, with the approval of the applicable Participating Financial Institution, to assign, transfer, pledge or create security interests in all or a portion of any Loss Reserve Account to any other entity or entities (including a trustee of a securitization trust or trusts) in connection with the securitization of all or a portion of the Participating Financial Institution's loans enrolled in the Program.

(f) The Participating Financial Institution shall provide information to the Authority regarding the status of accounts, enrolled loans, claims and recoveries upon request.

NOTE

Authority cited: Sections 44520 and 44559.5(f), Division 27, Health and Safety Code. Reference: Sections 44559.3 and 44559.8, Division 27, Health and Safety Code.

HISTORY

2. Certificate of Compliance as to 3-21-94 order including amendment of subsections (a) and (d) and Note transmitted to OAL 9-16-94 and filed 10-31-94 (Register 94, No. 44).

3. Amendment of subsections (a)(1) and (2), (b) and (d) filed 2-6-96 as an emergency pursuant to Health and Safety Code section 44520(b); operative 2-6-96 (Register 96, No. 6). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-5-96 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 2-6-96 order, including amendment of subsections (c)-(c)(1), transmitted to OAL 8-2-96 and filed 9-10-96 (Register 96, No. 37).

5. Amendment of subsections (c) and (d) filed 12-23-98; operative 12-23-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 52).

6. Amendment of subsection (d), new subsection (e) and amendment of Note filed 2-24-2000 as an emergency pursuant to Health and Safety Code section 44520; operative 2-24-2000 (Register 2000, No. 8). A Certificate of Compliance must be transmitted to OAL by 8-22-2000 or emergency language will be repealed by operation of law on the following day.

7. Certificate of Compliance as to 2-24-2000 order transmitted to OAL 8-21-2000 and filed 10-2-2000 (Register 2000, No. 40).

8. Amendment of subsection (c) filed 12-29-2005 as an emergency pursuant to Health and Safety Code section 44520(b); operative 12-29-2005 (Register 2005, No. 52). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 6-27-2006 or emergency language will be repealed by operation of law on the following day.

9. Certificate of Compliance as to 12-29-2005 order transmitted to OAL 4-21-2006 and filed 6-1-2006 (Register 2006, No. 22).

10. Amendment of subsections (c) and (c)(2) filed 1-22-2008 as an emergency; operative 1-22-2008 (Register 2008, No. 4). A Certificate of Compliance must be transmitted to OAL by 7-21-2008 or emergency language will be repealed by operation of law on the following day.

11. Certificate of Compliance as to 1-22-2008 order transmitted to OAL 5-30-2008 and filed 7-14-2008 (Register 2008, No. 29).

12. Amendment of subsection (d) filed 12-17-2009 as an emergency; operative 12-17-2009 (Register 2009, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-15-2010 or emergency language will be repealed by operation of law on the following day.

13. Amendment of subsection (d) refiled 6-21-2010 as an emergency; operative 6-21-2010 (Register 2010, No. 26). A Certificate of Compliance must be transmitted to OAL by 9-20-2010 or emergency language will be repealed by operation of law on the following day.

14. Repealer of 6-21-2010 operative amendment of subsection (d) by operation of law; operative 9-21-2010 (Register 2010, No. 40).

15. Amendment of subsection (d) refiled 9-29-2010 as an emergency; operative 9-29-2010 (Register 2010, No. 40). A Certificate of Compliance must be transmitted to OAL by 12-28-2010 or emergency language will be repealed by operation of law on the following day.

16. Amendment of subsection (c)(2) filed 11-29-2010 as an emergency; operative 11-29-2010 (Register 2010, No. 49). A Certificate of Compliance must be transmitted to OAL by 5-31-2011 or emergency language will be repealed by operation of law on the following day.

17. Certificate of Compliance as to 9-29-2010 order transmitted to OAL 11-24-2010 and filed 1-6-2011 (Register 2011, No. 1).

18. Notice of repeal and deletion of 11-29-2010 emergency amendment by operation of Government Code section 11346.1(f) (Register 2011, No. 33).

19. Amendment of subsection (c)(2) filed 8-16-2011; operative 8-16-2011 pursuant to Government Code section 11343.4(c) (Register 2011, No. 33).

20. New subsection (f) filed 11-7-2011 as an emergency; operative 11-7-2011 (Register 2011, No. 45). A Certificate of Compliance must be transmitted to OAL by 5-7-2012 or emergency language will be repealed by operation of law on the following day.

21. Certificate of Compliance as to 11-7-2011 order transmitted to OAL 2-22-2012 and filed 2-29-2012 (Register 2012, No. 9).

§8074. Claim for Reimbursement.

Note • History

(a) A Participating Financial Institution shall notify the Authority within 120 days after it has charged off all or part of a Qualified Loan as a result of a default.

(b) A Participating Financial Institution shall be authorized to make a claim for reimbursement of a loss from the enrolled portion of a Qualified Loan prior to the liquidation of collateral, or to realization on personal or other financial guarantees or from other sources. A Participating Financial Institution may also defer, for a period not to exceed 180 days from the date of the charge off, at its sole discretion, making a claim for reimbursement, but still must inform the Authority of charge off status within 120 days.

(c) The Authority shall pay claims within 30 days of receipt of a completed claim request; provided, however, that the Executive Director shall be authorized to reject a claim if it is determined that the representations and warranties provided by the Participating Financial Institution pursuant to Section 8072 at the time of enrolling the Qualified Loan were false. The Authority shall be authorized, upon providing written notice to the Participating Financial Institution, to defer payment of claims up to an additional 30 days if the Authority requires more information in order to determine if the claim shall be paid.

(d) Claim reimbursement shall not exceed the enrolled amount of the qualified loan or loans that form the basis for the claim, except when reasonable out-of-pocket expenses are claimed. In the event only a portion of the loan was enrolled, reimbursement of interest and out-of-pocket expenses will be limited to the ratio of the enrolled portion to the total loan amount.

(e) To make a claim, the Participating Financial Institution shall submit a claim form to the Authority which shall include the following information:

(1) Name and number of the Participating Financial Institution.

(2) Name, address and telephone number of contact person.

(3) Name of the business receiving the defaulted Qualified Loan.

(4) Amount and date of the Qualified Loan and the Authority's loan number.

(5) Date of default.

(6) Amount of default.

(7) Amount of claim and breakdown of components of the claim between principal, interest, and reasonable out-of-pocket expenses of collection or preservation of collateral, accompanied by documentation of such expenses.

(8) Certification that notice was filed with the Authority as required by Section 8074(a) above within 120 days of the date the Participating Financial Institution charged the Qualified Loan off on its books, and certification that such charge off was made in a manner consistent with the Participating Financial Institution's usual methods for taking action on loans which are not enrolled as Qualified Loans under the Program.

(9) Statement whether the loan is secured, and whether the Participating Financial Institution has commenced enforcement proceedings.

(10) If two or more claims are filed simultaneously by one Participating Financial Institution, a statement of the priority of payment of the claim compared to the other claims in the event the Loss Reserve Account is not sufficient to pay all claims.

(11) Statement whether the Qualified Loan qualifies under Section 8074(g).

(f) Except as provided in Section 8074(g) below, if a Qualified Loan suffers a loss and at the time of the Participating Financial Institution's claim there are insufficient funds in the Loss Reserve Account to cover the total amount of the claim, the Participating Financial Institution shall be able to withdraw all of the amount in the Loss Reserve Account at the time of the claim, to cover the loss to the fullest extent possible, but it shall thereafter not be eligible to obtain any further reimbursement relating to that claim.

(g) If a Qualified Loan suffers a loss, and at the time of the claim there is not enough money in the Loss Reserve Account to fully cover the loss, the Participating Financial Institution shall be able to withdraw all of the amount in the Loss Reserve Account at the time of the claim, to cover the loss to the fullest extent possible. If the Participating Financial Institution then continues making Qualified Loans under the Program and the Loss Reserve Account is replenished, the Participating Financial Institution shall be authorized to withdraw funds from the Loss Reserve Account at a subsequent time in order to fully cover the earlier claim, provided that the amount subsequently withdrawn to cover the earlier claim cannot exceed 75 percent of the amount in the Loss Reserve Account immediately prior to such subsequent withdrawal.

(h) If subsequent to the payment of a claim by the Authority, the Participating Financial Institution recovers from the Borrower, from liquidation of collateral or from any other source, amounts for which the Participating Financial Institution was reimbursed by the Authority, the Participating Financial Institution shall promptly pay to the Authority for deposit in the Loss Reserve Account, the amount received, net of reasonable and customary costs of collection, that in aggregate exceeds the amount needed to fully cover the Participating Financial Institution's loss on the Qualified Loan (including the portion of a Qualified Loan which is not enrolled in the Program). Recoveries which exceed reimbursements to the Loss Reserve Account may be retained by the Participating Financial Institution.

NOTE

Authority cited: Sections 44520 and 44559.5(f), Division 27, Health and Safety Code. Reference: Section 44559.5, Division 27, Health and Safety Code.

HISTORY

2. Certificate of Compliance as to 3-21-94 order including amendment of subsections (a), (b), (e)(8), (h) and Note transmitted to OAL 9-16-94 and filed 10-31-94 (Register 94, No. 44).

3. Amendment of subsections (a)-(c), repealer of former subsection (d) and subsection relettering, amendment of newly designated subsection (d)(8), new subsection (e) and subsection relettering, amendment of newly designated subsection (f), repealer of subsection (g) and relettering, and amendment of newly designated subsection (g) filed 2-6-96 as an emergency pursuant to Health and Safety Code section 44520(b); operative 2-6-96 (Register 96, No. 6). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-5-96 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 2-6-96 order, including amendment of subsection (c), transmitted to OAL 8-2-96 and filed 9-10-96 (Register 96, No. 37).

5. Amendment of subsections (a), (c) and (d)(4) filed 12-23-98; operative 12-23-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 52).

6. New subsection (d)(12) filed 8-8-2002 as an emergency pursuant to Health and Safety Code section 44520(b); operative 8-8-2002 (Register 2002, No. 32). A Certificate of Compliance must be transmitted to OAL by 2-4-2003 or emergency language will be repealed by operation of law on the following day.

7. Certificate of Compliance as to 8-8-2002 order, including further amendment of subsection (d)(12), transmitted to OAL 2-3-2003 and filed 3-6-2003 (Register 2003, No. 10).

8. Amendment of subsections (b) and (d)(7) filed 12-29-2005 as an emergency pursuant to Health and Safety Code section 44520(b); operative 12-29-2005 (Register 2005, No. 52). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 6-27-2006 or emergency language will be repealed by operation of law on the following day.

9. Certificate of Compliance as to 12-29-2005 order transmitted to OAL 4-21-2006 and filed 6-1-2006 (Register 2006, No. 22).

10. New subsection (d) and subsection relettering filed 12-17-2009 as an emergency; operative 12-17-2009 (Register 2009, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-15-2010 or emergency language will be repealed by operation of law on the following day.

11. New subsection (d) and subsection relettering refiled 6-21-2010 as an emergency, including additional amendments to subsection (d); operative 6-21-2010 (Register 2010, No. 26). A Certificate of Compliance must be transmitted to OAL by 9-20-2010 or emergency language will be repealed by operation of law on the following day.

12. Repealer of 6-21-2010 operative adoption of subsection (d), including 6-21-2010 amendments, and subsection relettering by operation of law; operative 9-21-2010 (Register 2010, No. 40).

13. New subsection (d), including 6-21-2010 amendments, and subsection relettering refiled 9-29-2010 as an emergency; operative 9-29-2010 (Register 2010, No. 40). A Certificate of Compliance must be transmitted to OAL by 12-28-2010 or emergency language will be repealed by operation of law on the following day.

14. Amendment of subsections (e)(11) and (f) filed 11-29-2010 as an emergency; operative 11-29-2010 (Register 2010, No. 49). A Certificate of Compliance must be transmitted to OAL by 5-31-2011 or emergency language will be repealed by operation of law on the following day.

15. Certificate of Compliance as to 9-29-2010 order transmitted to OAL 11-24-2010 and filed 1-6-2011 (Register 2011, No. 1).

16. Notice of repeal and deletion of 11-29-2010 emergency amendment by operation of Government Code section 11346.1(f) (Register 2011, No. 33).

17. Amendment of subsections (e)(11) and (f) filed 8-16-2011; operative 8-16-2011 pursuant to Government Code section 11343.4(c) (Register 2011, No. 33).

18. Amendment of subsections (a)-(b), (d) and (d)(8), repealer of subsection (d)(12) and amendment of subsection (g) filed 11-7-2011 as an emergency; operative 11-7-2011 (Register 2011, No. 45). A Certificate of Compliance must be transmitted to OAL by 5-7-2012 or emergency language will be repealed by operation of law on the following day.

19. Certificate of Compliance as to 11-7-2011 order transmitted to OAL 2-22-2012 and filed 2-29-2012 (Register 2012, No. 9).

§8075. Subrogation.

Note • History

(a) The Authority will be subrogated to the rights of the Participating Financial Institution in collateral, personal guarantees and all other forms of security for the Qualified Loan that have not been realized upon by the Participating Financial Institution, when the Participating Financial Institution's loss has been fully covered by payment of a loss claim, or by a combination of payment of a loss claim and recovery from the Borrower, liquidation of collateral, or from other sources.

(b) At the time of subrogating its rights, the Participating Financial Institution shall provide the Authority with all original security agreements, any documents evidencing title to real property, certificates of title, guarantees, and any other documents representing security for the Qualified Loan, duly recorded and perfected, and accompanied by enforceable assignments and conveyances to the Authority, unless such security documents also secure indebtedness to the Participating Financial Institution which was not covered by the Qualified Loan. In such latter case, the Participating Financial Institution shall enter into an intercreditor agreement with the Authority, providing that the Participating Financial Institution shall be entitled to recover under such security documents, to the extent possible, the full amount of its loss on any indebtedness not covered by the Qualified Loan but secured by the same collateral as the Qualified Loan; the balance of any amounts recovered under such security documents shall be deposited in the Loss Reserve Account. The Participating Financial Institution shall provide regular reports, as requested by the Executive Director, concerning its activities in collecting moneys owed from a defaulted Borrower.

(c) The Executive Director shall be authorized to enter into agreements with any Participating Financial Institution to provide for such institution to act as the Authority's agent to secure recovery under any collateral or security documents to which the Authority has been subrogated.

NOTE

Authority cited: Sections 44520 and 44559.5(f), Division 27, Health and Safety Code. Reference: Section 44559.2, Division 27, Health and Safety Code.

HISTORY

2. Certificate of Compliance as to 3-21-94 order including amendment of subsection (b) and Note transmitted to OAL 9-16-94 and filed 10-31-94 (Register 94, No. 44).

§8076. Termination and Withdrawal from Program.

Note • History

(a) A Participating Financial Institution shall be authorized to withdraw from the Program after giving written notice to the Authority. Such notice shall specify either:

(1) that the Participating Financial Institution waives any further interest in the Loss Reserve Account (including for the reason that all Qualified Loans covered by the Loss Reserve Account have been repaid); or

(2) that the Participating Financial Institution will not enroll any further loans under the Program but that the Loss Reserve Account shall continue in existence to secure all Qualified Loans enrolled prior to such notice.

(b) After receipt of a notice under subsection (a)(1) or receipt of a certificate from a Participating Financial Institution which has withdrawn from the Program pursuant to subsection (a)(2), certifying that all Qualified Loans secured by the Loss Reserve Account have been repaid and that there are no pending claims for reimbursement under Section 8074, the remaining balance in the Loss Reserve Account shall be distributed to the Authority; provided that with respect to moneys deposited in the Loss Reserve Account after January 1, 1999 (and assuming all claims made after January 1, 1999 are first allocated to moneys on deposit prior to that date), such moneys shall be distributed to the Authority and to the Participating Financial Institution in the amount of the Authority Share and the Participating Financial Institution Share, respectively. For purposes of this Section 8076, “Authority Share” means the ratio of the contributions made by the Authority (or any Independent Contributor on behalf of the Authority) to the Loss Reserve Account in question from January 1, 1999 to the date of calculation, to the total amount of contributions made to such Loss Reserve Account during that period, and “Participating Financial Institution Share” means 100 minus the Authority Share.

(c) The Executive Director shall be authorized to terminate participation of a Participating Financial Institution in the Program, by notice in writing, upon the occurrence of any of the following:

(1) entry of a cease and desist order, regulatory sanction, or any other action against the Participating Financial Institution by a regulatory agency that may impair its ability to participate in the Program;

(2) failure of the Participating Financial Institution to abide by the Law or this Article; or

(3) failure of the Participating Financial Institution to enroll any Qualified Loans under the Program for a period of one year.

(4) Provision of false or misleading information regarding the Participating Financial Institution to the authority, or failure to provide the authority with notice of material changes in submitted information regarding the Participating Financial Institution.

In the event of such termination, the Participating Financial Institution shall not be authorized to enroll any further Qualified Loans, but all previously enrolled Qualified Loans shall continue to be covered by the Loss Reserve Account until they are paid, claims are filed, or the Participating Financial Institution withdraws from the Program pursuant to Section 8076(a)(1).

(d) If for a consecutive 12-month period the amount in the Loss Reserve Account continuously exceeds the outstanding balance of all the Participating Financial Institution's Qualified Loans made since the beginning of the Program, the Executive Director shall be authorized to withdraw any such excess to bring the Loss Reserve Account down to an amount equal to 100 percent of the outstanding balance, in the following manner: (i) first, distributions shall be made to the Authority up to an amount allocable to the moneys on deposit in the Loss Reserve Account on January 1, 1999 (assuming all claims made after January 1, 1999 are first allocated to moneys on deposit prior to that date) and (ii) further distributions shall be made to the Authority and to the Participating Financial Institution based on the Authority Share and the Participating Financial Institution Share, respectively.

NOTE

Authority cited: Sections 44520 and 44559.5(f), Division 27, Health and Safety Code. Reference: Section 44559.2, Division 27, Health and Safety Code.

HISTORY

2. Certificate of Compliance as to 3-21-94 order including amendment of Note transmitted to OAL 9-16-94 and filed 10-31-94 (Register 94, No. 44).

3. Amendment of subsection (d) filed 2-6-96 as an emergency pursuant to Health and Safety Code section 44520(b); operative 2-6-96 (Register 96, No. 6). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-5-96 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 2-6-96 order transmitted to OAL 8-2-96 and filed 9-10-96 (Register 96, No. 37).

5. Amendment of subsections (b) and (d) filed 12-23-98; operative 12-23-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 52).

6. Amendment of subsection (c)(1) filed 12-29-2005 as an emergency pursuant to Health and Safety Code section 44520(b); operative 12-29-2005 (Register 2005, No. 52). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 6-27-2006 or emergency language will be repealed by operation of law on the following day.

7. Certificate of Compliance as to 12-29-2005 order transmitted to OAL 4-21-2006 and filed 6-1-2006 (Register 2006, No. 22).

8. New subsection (c)(4) filed 2-11-2009 as an emergency; operative 2-11-2009 (Register 2009, No. 7). A Certificate of Compliance must be transmitted to OAL by 8-10-2009 or emergency language will be repealed by operation of law on the following day.

9. Certificate of Compliance as to 2-11-2009 order transmitted to OAL 5-29-2009 and filed 6-23-2009 (Register 2009, No. 26).

§8077. Reports of Regulatory Agencies.

Note • History

The Executive Director shall be authorized to seek information directly from any federal or state regulatory agency concerning any Participating Financial Institution participating in the Program.

NOTE

Authority cited: Sections 44520 and 44559.5(f), Division 27, Health and Safety Code. Reference: Section 44559.2, Division 27, Health and Safety Code.

HISTORY

2. Certificate of Compliance as to 3-21-94 order including amendment of Note transmitted to OAL 9-16-94 and filed 10-31-94 (Register 94, No. 44).

§8078. Participation in the Program by Certain Public or Private Entities.

Note • History

(a) The Authority shall be authorized to permit any individual, company, corporation, institution, utility, government agency or other entity, including any consortium of these persons or entities, to become an Independent Contributor after such person or entity

(1) submits to the Authority its Standards; provided that the Authority shall not enforce compliance by the Independent Contributor with its Standards;

(2) represents to the Authority that it will not enter into an exclusive arrangement with a particular Participating Financial Institution, but that it is prepared to work with any Participating Financial Institution under the Program;

(3) agrees to indemnify the Authority against any loss, liability or claim arising from the use of the Independent Contributor's funds in the Program;

(4) represents to the Authority that it understands and intends to abide by the provisions of the Law and this Article with regard to its participation in the Program; and

(5) deposits with the Program Trustee an initial amount of at least $15,000 to be used to pay Fees payable by Borrowers and/or Contributions in connection with Qualified Loans, or receives a written waiver from the Executive Director of this requirement.

(6) agrees to reimburse the Authority for any reasonable costs related to the Independent Contributor's participation in the program, unless waived by the Authority.

(b) An Independent Contributor shall advise the Authority at any time the Standards provided to the Authority pursuant to Section 8078(a)(1) above are changed.

(c) The Authority shall be authorized to terminate an Independent Contributor's participation in the Program at any time, upon written notice, for any cause, including, but not limited to, failure to maintain a minimum deposit of at least $5,000 with the Program Trustee. An Independent Contributor shall be authorized to terminate its participation in the Program at any time, upon written notice.

(d) An Independent Contributor must pay all fees of the Program Trustee attributable to the funds that the Independent Contributor deposits with the Program Trustee.

(e) Fees and Contributions paid by Independent Contributors shall not be subject to the maximums set forth in Health and Safety Code Section 44559.4(c).

NOTE

Authority cited: Sections 44520 and 44559.5(f), Division 27, Health and Safety Code. Reference: Sections 44525, 44526, 44559.3 and 44559.9, Division 27, Health and Safety Code.

HISTORY

1. Renumbering of former section 8078 to section 8079 and new section 8078 filed 2-6-96 as an emergency pursuant to Health and Safety Code section 44520(b); operative 2-6-96 (Register 96, No. 6). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-5-96 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 2-6-96 order, including amendment of subsections (a) and (d), new subsection (a)(3), subsection renumbering, and amendment of newly designated subsection (a)(5), transmitted to OAL 8-2-96 and filed 9-10-96 (Register 96, No. 37).

3. Amendment of subsection (a)(5) filed 12-23-98; operative 12-23-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 52).

4. New subsections (a)(6) and (e) and amendment of Note filed 2-11-2009 as an emergency; operative 2-11-2009 (Register 2009, No. 7). A Certificate of Compliance must be transmitted to OAL by 8-10-2009 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 2-11-2009 order transmitted to OAL 5-29-2009 and filed 6-23-2009 (Register 2009, No. 26).

6. Amendment of subsections (a)(5) and (e) filed 6-25-2012 as an emergency; operative 6-25-2012 (Register 2012, No. 26). A Certificate of Compliance must be transmitted to OAL by 12-24-2012 or emergency language will be repealed by operation of law on the following day.

7. Certificate of Compliance as to 6-25-2012 order transmitted to OAL 12-20-2012 and filed 2-4-2013 (Register 2013, No. 6).

§8078.1. Preferred Lenders.

Note • History

(a) Where an Independent Contributor elects to pay the matching contribution and the borrower's fee or the matching contribution and all fees and funds are available, designated Participating Financial Institutions can participate as preferred lenders and process, close, service, and liquidate California Capital Access Program guaranteed loans with reduced requirements for documentation to and prior approval by the Authority.

(b) Before it can operate as a preferred lender, the Participating Financial Institution must:

(1) Submit for review and approval by the Authority a preferred lender supplemental lender enrollment agreement, which will specify a term not to exceed two years. The application shall include the following information:

(A) name of applicant Financial Institution.

(B) name, address and telephone number of contact person.

(D) number of lending branches.

(E) certification that the applicant Financial Institution is not subject to a cease and desist order or other regulatory sanction with the appropriate federal or state regulatory body, which would impair its ability to participate in the Program, and the name of that body.

(F) a full description of the board of directors, including number, race, ethnicity and gender of its members.

(G) the Financial Institution's rating from a nationally recognized credit rating agency which assesses the financial soundness and stability of financial institutions.

(H) the Financial Institution's agreement to follow the Program's procedures as set forth in the Law and this Article.

(I) the Financial Institution's agreement to permit an audit of any of its records relating to enrolled Qualified Loans, during normal business hours on its premises, by the Authority or its agents, and to supply such other information concerning enrolled Qualified Loans as shall be requested by the Executive Director.

(J) acknowledgment by the Financial Institution that the Authority and the State will have no liability to the Participating Financial Institution under the Program except from funds deposited in the Loss Reserve Account for the Participating Financial Institution.

(2) Demonstrate a satisfactory performance history with the California Capital Access Program.

(3) Provide the Authority with a plan which clearly outlines how the Participating Financial Institution will train individuals authorized to submit loans for enrollment in the Program.

(c) Upon receipt of a completed application, the Executive Director will within 10 days review and determine whether additional information is required, or whether the application is sufficient to permit the applicant Financial Institution to participate. The Executive Director's decision whether an application is sufficient shall be final.

(d) When the supplemental lender enrollment agreement expires, the Authority may recertify a Participating Financial Institution for an additional term not to exceed two years. Prior to recertification, the Authority will review a Participating Financial Institution's loans, policies and procedures.

(e) Except as specified in this paragraph and paragraph (f), section 8072 shall not apply to the enrollment of a Qualified Loan by a preferred lender. A Participating Financial Institution is required to notify the Authority within ten (10) business days of its approval of a preferred lender's loan by submitting to the Authority loan appropriate documentation, as set forth in California Code of Regulations Title 4, Division 11, Section 8072(a), (b)(1), (c), (d), (e), (g), (h), and (i) signed by the Participating Financial Institution authorized representatives. Upon receipt of the appropriate documentation for a Qualified Loan by the Authority and Trustee, the Matching Contribution shall he transferred for deposit in the Loss Reserve Account by an Independent Contributor, and the Program Trustee shall notify the Participating Financial Institution of the transfer and the source of funds from which the transfer was made.

(f) The Authority shall, upon receipt of documentation from the Participating Financial Institution, verify the enrollment of and provide a California Capital Access Program loan number for the Qualified Loan if the Executive Director determines that the Qualified Loan meets the requirements of the Law and this Article. The Executive Director shall notify the Participating Financial Institution of enrollment within 10 business days after receipt by the Authority of all documentation required by the Law and/or this Article. The Executive Director's determination whether a loan shall be enrolled in the Program shall be final.

(g) If the Executive Director determines that the Qualified Loan does not meet the requirements of the Law and this Article the Authority will notify the Participating Financial Institution detailing the issue and requesting reimbursement of the contribution related to the Qualified Loan.

(h) The Participating Financial Institution is responsible for all loan decisions regarding creditworthiness. The Participating Financial Institution is also responsible for confirming that all loan closing decisions are correct, and that it has complied with all requirements of the Law and Program regulations.

(i) The Authority may review the performance of a Participating Financial Institution with respect to its preferred lender status.

(j) The Authority may suspend or revoke a preferred lender status upon written notice to the Participating Financial Institution providing the reasons at least 10 business days prior to the effective date of the suspension or revocation. Reasons for suspension or revocation include lender violations of applicable statutes, regulations or Authority policies and procedures.

NOTE

Authority cited: Sections 44520 and 44559.5(f), Division 27, Health and Safety Code. Reference: Sections 44559, 44559.1, 44559.2, 44559.3, 44559.4, 44559.5, 44559.7 and 44559.9, Division 27, Health and Safety Code.

HISTORY

1. New section filed 2-11-2009 as an emergency; operative 2-11-2009 (Register 2009, No. 7). A Certificate of Compliance must be transmitted to OAL by 8-10-2009 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 2-11-2009 order transmitted to OAL 5-29-2009 and filed 6-23-2009 (Register 2009, No. 26).

§8078.2. Federal Capital Access Program and Funding.

Note • History

(a) Where the Contribution comes from funds provided under the State Small Business Credit Initiative enacted pursuant to the Small Business Jobs Act (H.R. 5297, Public Law No. 111-240) the following shall apply, notwithstanding any other provision of this article, to the extent allowed by the Small Business Jobs Act (H.R. 5297, Public Law No. 111-240) (Small Business Jobs Act):

(b) “Participating Financial Institution” also includes all those listed in Health and Safety Code Section 44559.1(d) and all certified community development financial institutions whether or not organized for profit.

(1) the loan will be used for a business purpose;

(2) the loan will not be used to repay delinquent federal or state income taxes unless the borrower has a payment plan in place with the relevant taxing authority;

(3) the loan will not be used to repay taxes held in trust or escrow;

(4) the loan will not be used to reimburse funds owed to any owner, including any equity injection or injection of capital for the business' continuance;

(5) the loan will not be used to purchase any portion of the ownership interest of any owner of the business;

(6) the loan will not be used for business purposes prohibited by the U.S. Treasury;

(7) the loan will not be used to finance ineligible businesses;

(8) no principal of the borrowing entity has been convicted of a sex offense against a minor (as such terms are defined in section 111 of the Sex Offender Registration and Notification Act 42 U.S.C. §16911); and

(9) the Borrower is not:

(A) an executive officer, director, or principal shareholder of the Participating Financial Institution;

(B) a member of the immediate family of an executive officer, director, or principal shareholder of the Participating Financial Institution; or

(C) a related interest of such executive officer, director, principal shareholder, or member of the immediate family of the Participating Financial Institution.

(d) Ineligible businesses include, but are not limited to, the following business types:

(1) a business engaged in speculative activities that develop profits from fluctuations in price rather than through the normal course of trade, such as wildcatting for oil and dealing in commodities futures, unless those activities are incidental to the regular activities of the business and part of legitimate risk management strategies to guard against price fluctuations related to the regular activities of the business;

(2) a business that earns more than half of its annual net revenue from lending activities; unless the business is a non-bank or non-bank holding company certified as a Community Development Financial Institution;

(3) a business engaged in pyramid sales plans, where a participant's primary incentive is based on the sales made by an ever-increasing number of participants;

(4) a business engaged in activities that are prohibited by federal law or applicable law in the jurisdiction where the business is located or conducted. Included in these activities is the production, servicing, or distribution of otherwise legal products that are to be used in connection with an illegal activity, such as selling drug paraphernalia or operating a motel that knowingly permits illegal prostitution; or

(5) a business engaged in gambling enterprises, unless the business earns less than one-third of its annual net revenue from lottery sales.

(6) other businesses that may be restricted by federal fund law or the Department of Treasury.

(e) The Participating Financial Institution must provide written assurance affirming the following:

(1) the Qualified Loan has not been made in order to place under the protection of the CalCAP prior debt that is not covered under CalCAP and that is or was owed by the Borrower to the Participating Financial Institution or to an affiliate of the Participating Financial Institution;

(2) the Qualified Loan is not a refinancing of a loan previously made to the borrower by the Participating Financial Institution or an affiliate of the Participating Financial Institution;

(3) no principal of the Participating Financial Institution has been convicted of a sex offense against a minor (as such terms are defined in Section 111 of the Sex Offender Registration and Notification Act (42 U.S.C. §16911));

(4) the Participating Financial Institution will make available to the Treasury Inspector General all books and records related to the use of the Allocated Funds, subject to the Right of Financial Privacy Act (12 U.S.C. §3401 et seq.) as applicable; and

(5) the Participating Financial Institution is in compliance with the requirements of 31 C.F.R. §103.121.

(f) Federal capital access funds shall not be used for the following:

(1) activities that relate to acquiring or holding passive investments such as commercial real estate ownership, the purchase of securities; and lobbying activities as defined in Section 3(7) of the Lobbying Disclosure Act of 1995. P.L. 104-65, as amended;

(2) financing a non-business purpose;

(3) covering the unguaranteed portions of an SBA loan unless CalCAP receives prior written consent of the U.S. Treasury;

(4) supporting existing extension of credit, including but not limited to prior loans, lines of credit or other borrowings that were previously made available as part of a state small business credit enhancement program.

(g) The federal Matching Contribution shall be equal to the sum of the Fees paid by the Borrower and Participating Financial Institution, unless another amount is allowed by the Small Business Jobs Act.

(h) No more than $5,000,000 shall be borrowed by any one Borrower using the State Small Business Credit Initiative funds, unless another amount is allowed by the Small Business Jobs Act.

(i) Any Borrower or Participating Financial Institution fees assessed by the Authority as allowed by the Small Business Jobs Act may be deposited in a Loss Reserve Account.

(j) Claims for reimbursement may be processed according to the requirements of the Small Business Jobs Act.

NOTE

Authority cited: Sections 44520 and 44559.5(f), Health and Safety Code. Reference: Sections 44559.2, 44559.4 and 44559.11, Health and Safety Code.

HISTORY

2. Amendment of section and Note filed 5-31-2011 as an emergency; operative 5-31-2011 (Register 2011, No. 22). A Certificate of Compliance must be transmitted to OAL by 11-28-2011 or emergency language will be repealed by operation of law on the following day.

3. Certificate of Compliance as to 3-7-2011 and 5-31-2011 orders, including amendment of subsections (c)(8), (e)(3)-(4) and (f)(2), transmitted to OAL 7-29-2011 and filed 8-16-2011 (Register 2011, No. 33).

4. Amendment of subsections (a), (g) and (h) and new subsections (i)-(k) filed 6-25-2012 as an emergency; operative 6-25-2012 (Register 2012, No. 26). A Certificate of Compliance must be transmitted to OAL by 12-24-2012 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 6-25-2012 order, including amendment of subsection (g), repealer and new subsection (i), repealer of subsection (j) and subsection relettering, transmitted to OAL 12-20-2012 and filed 2-4-2013; amendments effective 2-4-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 6).

§8079. Codes for Qualified Businesses. [Repealed]

Note • History

NOTE

Authority cited: Sections 44520 and 44559.5(f), Division 27, Health and Safety Code. Reference: Section 44559.2, Division 27, Health and Safety Code.

HISTORY

2. Certificate of Compliance as to 3-21-94 order including amendment of Note transmitted to OAL 9-16-94 and filed 10-31-94 (Register 94, No. 44).

3. Renumbering and amendment of former section 8078 to section 8079 filed 2-6-96 as an emergency pursuant to Health and Safety Code section 44520(b); operative 2-6-96 (Register 96, No. 6). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-5-96 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 2-6-96 order transmitted to OAL 8-2-96 and filed 9-10-96 (Register 96, No. 37).

5. Amendment of first paragraph filed 12-23-98; operative 12-23-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 52).

6. Repealer filed 12-18-2000 as an emergency pursuant to Health and Safety Code section 44520; operative 1-1-2001 (Register 2000, No. 51). A Certificate of Compliance must be transmitted to OAL by 7-2-2001 or emergency language will be repealed by operation of law on the following day.

7. Certificate of Compliance as to 12-18-2000 order transmitted to OAL 6-14-2001 and filed 7-26-2001 (Register 2001, No. 30).

Article 8. Designation and Disclosure of Confidential Information

§8080. Designation of Confidential Information.

Note • History

No confidential information, or information that is the subject of a pending application, shall be disclosed except as provided by Section 8082, unless disclosure is ordered by a court of competent jurisdiction.

(a) Any Applicant, Participating Financial Institution or Borrower as defined in Section 8070 giving custody or ownership of information to the Authority may request that such information be designated confidential information and not publicly disclosed, but failure to so indicate at the time the information is submitted to the Authority is not a waiver of the right to request confidentiality later. A request for confidential designation shall:

(1) be on a sheet or sheets separate from but attached to the information;

(2) specifically indicate those parts of the information which should be kept confidential;

(3) state the length of time the information should be kept confidential, and provide justification for the length of time;

(4) cite and discuss (i) the provisions of the Public Records Act (California Government Code 6250 et seq.) or other law that allows the Authority to keep the information confidential, and (ii) the public interest in nondisclosure of the information. If it is believed that the record should not be disclosed because it contains trade secrets or its disclosure would otherwise cause loss of a competitive advantage, the request shall also state the specific nature of the advantage and how it would be lost, including the value of the information to the requesting party, and the ease or difficulty with which the information could be legitimately acquired or duplicated by others;

(5) state whether and how the information is kept confidential by the requesting party and whether it has ever been disclosed to a person other than an employee of the requesting party, and if so under what circumstances;

(6) contain the following certification executed by the person primarily responsible for preparing the request: “I certify under penalty of perjury that the information contained in this request for confidential designation is true, correct, and complete to the best of my knowledge, and that I am authorized to make this request and certification on behalf of [name of entity]”; and

(7) specify whether the person submitting the request wishes the information returned or disclosed upon a denial of confidential designation; information returned to requesting party shall not be considered or reviewed as part of any application for bonds, or other financial assistance or participation in the Capital Access Program.

(b) If the information contains information which the requesting party has received from another party who has demanded or requested that the requesting party maintain the confidentiality of the information, the requesting party shall address the items in Section 8080(a) to the greatest extent possible and shall explain the request made by the original party and the reasons expressed by the original party.

(c) An incomplete request shall be returned to the requesting party with a statement of its defects. The information for which confidentiality was requested shall not be disclosed for thirty (30) days after return of the request to the requesting party to allow a new request to be submitted.

(d) If a requesting party's prior request for confidential designation of substantially similar information has been granted, a request for confidential designation shall be deemed granted if the request contains a certification that the information submitted is substantially similar and that all facts and circumstances relevant to the granting or approval of the prior request are unchanged.

(e) The Executive Director shall determine if a request for confidential designation should be granted. A request shall be granted unless the requesting party has failed to make any reasonable claim that the Public Records Act or other provision of law authorizes the Authority to keep the information confidential, and upon a finding by the Executive Director that there is a public interest in nondisclosure of the information. The Executive Director shall be authorized, within thirty (30) days after receipt of a request, to require the requesting party to submit any additional information necessary to rule on the request. If the additional information is not received by the Authority within fourteen (14) days after the date of the request for additional information, the Executive Director shall deny the request. The Executive Director's determination shall be in writing and shall be mailed no later than sixty (60) days after receipt of a request or thirty (30) days after receipt of additional information, whichever is later. There shall be no administrative appeal from the Executive Director's decision. The information sought to be designated confidential shall not be available for inspection or copying for a period of 30 days after the denial of a request, during which time the requesting party may appeal such denial to a court of competent jurisdiction.

NOTE

Authority cited: Section 44520, Division 27, Health and Safety Code. Reference: Section 44537.5 and 44548, Division 27, Health and Safety Code.

HISTORY

1. New article 8 (sections 8080-8083) and section filed 12-23-98; operative 12-23-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 52).

§8081. Disclosure of Confidential Information.

Note • History

(a) The Executive Director shall be authorized to disclose information determined confidential pursuant to Section 8080 to:

(1) Agency employees whose agency work requires inspection of the information.

(2) Persons under contract to the Authority whose work for the Authority requires inspection of the information and who agree to keep the information confidential.

(3) Other governmental bodies which have a need for the information related to their official functions and which agree to keep the information confidential and to disclose the information only to those employees whose agency work requires inspection of the information. The Executive Director shall be permitted to request and agree on behalf of the Authority to maintain the confidentiality of other agencies' confidential information.

(4) Any person, provided that either (i) the requesting party has consented in writing to the disclosure, or (ii) the Executive Director, after prior notice to the requesting party and opportunity for the requesting party to be heard, determines that such information is not exempt from disclosure under the Public Records Act and the public interest in disclosure of such information outweighs the public interest in nondisclosure.

(b) The Executive Director shall advise the requesting party of the disclosure to persons in subsections (a), (2), (3) and (4) of this Section 8081 of information determined confidential pursuant to Section 8080.

NOTE

Authority cited: Section 6253(a), Government Code; and Section 44520, Division 27, Health and Safety Code. Reference: Section 44537.5 and 44548, Division 27, Health and Safety Code.

HISTORY

1. New section filed 12-23-98; operative 12-23-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 52).

§8082. Security of Confidential Information.

Note • History

The Executive Director is responsible for maintaining the security of confidential information.

NOTE

Authority cited: Section 6253(a), Government Code; and Section 44520, Division 27, Health and Safety Code. Reference: Section 44537.5 and 44548, Division 27, Health and Safety Code.

HISTORY

1. New section filed 12-23-98; operative 12-23-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 52).

§8083. Delegation of Authority and Responsibilities.

Note • History

The Executive Director shall be authorized to delegate any authority, duties or responsibilities under this Article to any employee of the Authority.

NOTE

Authority cited: Section 6253(a), Government Code; and Section 44520, Division 27, Health and Safety Code. Reference: Section 44537.5 and 44548, Division 27, Health and Safety Code.

HISTORY

1. New section filed 12-23-98; operative 12-23-98 pursuant to Government Code section 11343.4(d) (Register 98, No. 52).

Article 9. California Recycle Underutilized Sites (Cal ReUSE) Program

Subarticle 1. CALReUSE Brownfield Assessment Program

§8090. Definitions.

Note • History

In addition to the definitions set forth in Section 8102, the following definitions shall govern construction of this Article.

(a) “Applicant” means any for-profit or not-for-profit organization, school district, participating party as defined in California Health and Safety Code Section 44506, or public agency as defined in California Health and Safety Code Section 44509 applying for a Loan, Infill Loan, or Infill Grant.

(b) “Application” means the information referred to in Section 8092 or Section 8093.

(c) “Authority” means the California Pollution Control Financing Authority, organized and existing under and by virtue of Division 27 (commencing with Section 44500) of the California Health and Safety Code.

(d) “Borrower” means an Applicant whose Loan or Infill Loan has been approved and who has executed a Loan Agreement.

(e) “Brownfield” means a real estate parcel, or improvements located on the parcel, or both that parcel and the improvements, which is abandoned, idled, or underused, due to real or perceived environmental contamination, including, but not limited to, soil or groundwater contamination, the presence of underground storage tanks, or the presence of asbestos or lead paint on the parcel or in the improvements located on the parcel.

(f) “Brownfield Project” means a project for the site assessment and characterization of, and/or Planning for Remediation of Hazardous Material at a Brownfield.

(g) “Census Designated Place” means a place designated as a census designated place by the Bureau of the Census.

(h) “Consultant” means an environmental professional as defined in 40 CFR, Section 312.10.

(i) “Development Entity” means an entity engaged in the development of real estate.

(j) “Economically Distressed Community” means a community that the Applicant demonstrates to the satisfaction of the Strategic Partner is any one or more of the following:

(1) A community with an unemployment rate equal to or greater than 125% of the statewide average based on the California Employment Development Department's most recent annual average for sub-county areas.

(2) A community with median family income of less than 80% of the statewide average based on the most recent census data available for cities or Census Designated Places. (If no city or Census Designated Place level data is available, or if the Applicant chooses to identify an area that is smaller than a city or Census Designated Place, such as census tract or tracts, smaller areas will be used.)

(3) A community with a poverty rate equal to or greater than 110% of the statewide average based on the most recent census data available for cities or Census Designated Places. (If no city or Census Designated Place level data is available, or if the Applicant chooses to identify an area that is smaller than a city or Census Designated Place, such as census tract or tracts, smaller areas will be used.)

(4) A state designated Enterprise Zone (including a Local Agency Military Base Recovery Area, Manufacturing Enhancement Area or Targeted Tax Area).

(5) A federally designated Empowerment Zone pursuant to 26 U.S.C. Section 1392, Enterprise Community pursuant to 26 U.S.C. Section 1392, or Renewal Community pursuant to Section 1400E of Title 26 of the United States Code.

(6) A redevelopment project area adopted pursuant to California Health and Safety Code Sections 33000 et seq., where the Strategic Partner determines that the project area meets the definition of blighted area contained in California Health and Safety Code Section 33030.

(7) A city or county with a military base designated for closure pursuant to the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100-526), the Defense Base Closure and Realignment Act of 1990 (Public Law 101-510), or any subsequent closure approved by the President of the United State without objection by the Congress. The provision will apply to proposed projects within two miles of a military base closure in an urban setting and to proposed projects within five miles of a military base closure in a rural setting.

(k) “Eligible Costs” means reasonable and necessary Brownfield Project costs, including but not limited to costs associated with any of the following:

(1) Site assessment and characterization.

(2) Technical Assistance.

(3) Planning for Remediation of Hazardous Material.

(4) Obtaining access to a Brownfield to conduct a Brownfield Project.

(5) The costs of the Oversight Agency and other governmental oversight incurred by the borrower that is related to the site assessment and characterization, and Planning for Remediation of Hazardous Material.

(l) “Enterprise Zone” means any area within a city, county, or a city and county that is designated as an enterprise zone in accordance with the provisions of Section 7073 of the California Government Code.

(m) “Executive Director” means the Executive Director of the California Pollution Control Financing Authority.

(n) “Feasibility Study” means the identification and evaluation of technically feasible and effective Remedial Action alternatives to protect public health and the environment at a Brownfield for purposes of developing a Remedial Action Plan.

(o) “Final Report” means a written document prepared by an Independent Consultant that describes the Independent Consultant's findings resulting from the site assessment and characterization, Planning for Remediation of Hazardous Material, and/or technical assistance performed by the Independent Consultant in connection with a Brownfield.

(p) “Forgiven Loan” means a Loan for which repayment of all, or a portion, of the Loan is forgiven upon the conditions set forth in Section 8097.

(q) “Hazardous Material” means a hazardous material as defined in Section 25260(d) of the California Health and Safety Code.

(r) “Hazardous Waste Reporting Laws” means any and all state, federal and local laws, including, without limitation, statutes, rules, regulations, ordinances, administrative orders, judicial orders or consent decrees, requiring the reporting to any governmental, quasi-governmental or regulatory entity of any release, threatened release, presence or existence of a Hazardous Material or any similar substance or material into the environment.

(s) “Independent Consultant” means a Consultant who meets all of the following requirements:

(1) The Consultant is not an employee of, general or limited partner or a shareholder in, or have any other ownership or management interest in the Borrower, a known responsible party, or a prospective buyer of the Brownfield;

(2) The Consultant does not receive any source of income from the Borrower, a known responsible party, or a prospective buyer of the Brownfield, other than the payment of fees for professional services unless the Consultant is acting in his or her capacity as an employee of a governmental entity; and

(3) The Consultant does not accept, or agree to accept, any payment that is in any way contingent upon the outcome of a Final Report.

(t) “Loan” means a loan made in accordance with the procedures set forth in this Article 9.

(u) “Loan Agreement” means a written agreement for a Loan entered into between a Borrower and the Strategic Partner, or where the Strategic Partner is the Borrower, between the Borrower and the Authority.

(v) “Local Agency Military Base Recovery Area” means any military base or former military base or portion thereof that is designated as a local agency military base recovery area under the Local Agency Military Base Recovery Area Act (Cal. Govt. C. Section 7105, et seq.).

(w) “Manufacturing Enhancement Area” means an area designated as a manufacturing enhancement area pursuant to California Government Code Section 7073.8.

(x) “Match” means the Strategic Partner's financial contribution to the Brownfield Project in an amount equal to 25 percent (25%) of the Loan amount. Match also means a monetary contribution and/or related costs of overhead and staffing in amounts and percentages of each as set forth in the written agreement between the Strategic Partner and the Authority, by a Strategic Partner or other entity involved with the Brownfield Project.

(y) “Oversight Agency” means any agency with the lawful authority to oversee assessment activities, review and approve Cleanup Plans, oversee Remedial Actions and provide confirmation as to the completion of Remedial Actions required to return Brownfield properties to economically beneficial use consistent with the intended development of the Brownfield.

(z) “Planning for Remediation of Hazardous Material” means conducting a Feasibility Study, conducting a Remedial Investigation, or preparing a Remedial Action Plan or Cleanup Plan.

(aa) “Public Infrastructure” means facilities accessible to the public that may include, but are not limited to, public roads, sewers, drainage, water, natural gas and/or electricity, telephone, and transportation services.

(ab) “Remedial Action Plan” or “Cleanup Plan” means a plan approved by the Oversight Agency for performing a Remedy or taking a Remedial Action.

(ac) “Remedial Investigation” means those actions necessary to determine the full extent of a Hazardous Material at a Brownfield, identify the public health and environment threat posed by the Hazardous Material, collect data on possible remedies, and otherwise evaluate the Brownfield, for purposes of developing a Remedial Action Plan.

(ad) “Remedy” or “Remedial Action” means any action taken to remove, correct, cleanup, mitigate, remediate or abate a release of Hazardous Materials.

(ae) “Small Business” has the same meaning as in Section 8020 of Title 4 of the California Code of Regulations.

(af) “Strategic Partner” means an entity chosen by the Authority in accordance with Section 8100 and Section 8102.11 that receives and processes Applications or Infill Applications, provides Technical Assistance, disburses funds, or provides administrative services to Borrowers for purposes of this Article pursuant to a written agreement with the Authority. In the event the Authority does not contract with a Strategic Partner, or elects to act as a Strategic Partner pursuant to Section 8102.10(d), Strategic Partner means the Authority. Under certain circumstances, the Strategic Partner may be the Applicant, the Borrower, or the Grantee. In the event the Strategic Partner is an Applicant, Borrower, or Grantee, the Authority shall be the Strategic Partner as to the Application, Loan, Infill Application, Infill Loan or Infill Grant.

(ag) “Targeted Tax Area” means an area designated as a targeted tax area in accordance with the provisions of California Government Code Section 7097.

(ah) “Technical Assistance” means information, education, training and assistance provided to an Applicant, Borrower, or Grantee by a Strategic Partner or its agent regarding Brownfield site assessment and characterization, Planning for Remediation of Hazardous Material, implementation of a Cleanup Plan and environmental regulation. Technical Assistance does not include any actions that would constitute participation in the management of property as defined in Section 25548.1 of the California Health and Safety Code or in 42 U.S.C. Section 9601(20)(F). Unless a Strategic Partner is a governmental entity that is exercising its regulatory authority under other applicable laws, regulations, inter-agency agreements, or governmental programs, a Strategic Partner shall not participate in the management of property as defined in Section 25548.1 of the California Health and Safety Code or in 42 U.S.C. Section 9601(20)(F).

NOTE

Authority cited: Section 44520, Health and Safety Code. Reference: Sections 25260(d), 25548.1, 44500, 44501, 44502, 44504.1, 44505, 44506, 44507, 44508, 44509, 44520, 44525.7, 44526(h), 44526(i), 44537.5, 44548(a), 44548(b), 53545 and 53545.14, Health and Safety Code.

HISTORY

1. New article 9 (sections 8090-8101) and section filed 8-13-2001 as an emergency; operative 8-13-2001 (Register 2001, No. 33). Pursuant to Health and Safety Code section 44520, a Certificate of Compliance must be transmitted to OAL by 2-11-2002 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 8-13-2001 order, including amendment of subsections (u)(1) and (u)(2), transmitted to OAL 2-8-2002 and filed 3-21-2002 (Register 2002, No. 12).

3. New subarticle 1 heading and amendment of section and Note filed 2-29-2008 as an emergency; operative 2-29-2008 (Register 2008, No. 9). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-27-2008 or emergency language will be repealed by operation of law on the following day.

4. New subarticle 1 heading and amendment of section and Note refiled 8-25-2008 as an emergency; operative 8-27-2008 (Register 2008, No. 35). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 11-24-2008 or emergency language will be repealed by operation of law on the following day.

5. New subarticle 1 heading and amendment of section and Note refiled 11-24-2008 as an emergency, including further amendment of subsections (af) and (ag); operative 11-24-2008 (Register 2008, No. 48). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 2-23-2009 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 11-24-2008 order transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8091. Brownfield Project Loan Eligibility.

Note • History

An Applicant shall be eligible for a Loan when the Strategic Partner determines all of the following:

(a) The Applicant submits an Application that meets the requirements of Section 8092;

(b) The Applicant proposes a Brownfield Project;

(d) The Applicant demonstrates the ability to retain, or is, a Development Entity;

(e) If the Loan and Match together does not finance all costs of the Brownfield Project, the Applicant identifies a funding source or financial means to finance the costs of the Brownfield Project not covered by the Loan;

(f) The Applicant identifies a potential funding source or financial means to repay the Loan;

(g) The Applicant demonstrates the ability to gather likely sources of capital to develop the Brownfield;

(h) The Applicant has not been convicted of a felony or misdemeanor involving the regulation of Hazardous Materials, including, but not limited to, a conviction of a felony or misdemeanor under California Health and Safety Code Section 25395.13; and

(i) Any affirmative responses provided in Section 8092(m) do not materially impugn the integrity of the Borrower or will not adversely affect the Borrower's ability to comply with these regulations.

NOTE

Authority cited: Section 44520, Health and Safety Code. Reference: Sections 25395.13, 44501, 44502, 44504.1, 44505, 44506, 44507, 44508, 44520, 44525.7, 44526(h), 44526(i), 44537.5, 44548(a), 44548(b), 53545 and 53545.14, Health and Safety Code.

HISTORY

1. New section filed 8-13-2001 as an emergency; operative 8-13-2001 (Register 2001, No. 33). Pursuant to Health and Safety Code section 44520, a Certificate of Compliance must be transmitted to OAL by 2-11-2002 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 8-13-2001 order transmitted to OAL 2-8-2002 and filed 3-21-2002 (Register 2002, No. 12).

3. Amendment of subsection (i), repealer of subsections (j)-(j)(4) and amendment of Note filed 2-29-2008 as an emergency; operative 2-29-2008 (Register 2008, No. 9). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-27-2008 or emergency language will be repealed by operation of law on the following day.

4. Amendment of subsection (i), repealer of subsections (j)-(j)(4) and amendment of Note refiled 8-25-2008 as an emergency; operative 8-27-2008 (Register 2008, No. 35). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 11-24-2008 or emergency language will be repealed by operation of law on the following day.

5. Amendment of subsection (i), repealer of subsections (j)-(j)(4) and amendment of Note refiled 11-24-2008 as an emergency; operative 11-24-2008 (Register 2008, No. 48). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 2-23-2009 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 11-24-2008 order transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8092. Brownfield Project Application Content.

Note • History

An Application shall include all of the following:

(a) The Applicant's name, address, telephone number, federal tax identification number, type of business or entity, the date the business or entity was established.

(b) Whether the Applicant qualifies as a Small Business.

(d) If the Applicant is not the owner of the Brownfield, evidence of:

(1) The Applicant's legal interest in the Brownfield;

(2) Permission of the owner of the Brownfield for the Applicant or the Applicant's agent(s) to have access to the Brownfield (governmental action already taken or that is expected to be taken prior to disbursement of loan proceeds to gain access or control of the Brownfield will be deemed to be permission to have access to the Brownfield); and

(3) Permission of the owner of the Brownfield for the Applicant or the Applicant's agent(s) to perform a Brownfield Project on the Brownfield (governmental action already taken or that is expected to be taken prior to disbursement of loan proceeds to gain access or control of the Brownfield will be deemed to be permission to perform a Brownfield Project on the Brownfield).

(e) Information regarding the Brownfield for which the Loan is being requested, including:

(1) A description of the Brownfield including:

(A) the location of the Brownfield, including the street address, city, county, assessor parcel number(s), and/or or legal description of the Brownfield;

(B) evidence of the Brownfield's location in an Economically Distressed Community, if applicable;

(C) a site layout that includes the location and dimensions of any existing buildings, utilities, and other pertinent features, if available;

(D) the current use and zoning of the Brownfield;

(E) the current land uses and zoning of adjacent property and the surrounding neighborhood;

(F) identification of Public Infrastructure and its proximity to the Brownfield;

(G) previous use of the Brownfield;

(H) known and suspected Hazardous Material located at the Brownfield;

(I) proposed reuse of the Brownfield, if known;

(J) the estimated time period for completion, components, and costs of the Brownfield Project; and

(K) the goals and objectives of and the benefit to the community from the Brownfield Project or development of the Brownfield.

(2) Development timetable for the Brownfield.

(3) A description of obstacles to reuse of the Brownfield (e.g., regulatory issues, complex remediation, liability, and/or marketability).

(4) Identification of local regulatory and land use jurisdictions within which the proposed Brownfield Project is located.

(5) A description of community involvement and local government support for the Brownfield Project.

(f) A description of the Applicant's experience managing projects similar to the one proposed and the qualifications of key personnel involved.

(g) Identification of a person that meets the definition of an Independent Consultant that will perform the activities necessary to complete the Brownfield Project.

(h) Identification of the proposed Oversight Agency if the proposed Loan will be used to finance Planning for Remediation of Hazardous Material.

(i) Identification of potential funding sources for:

(1) Completion of the Brownfield Project.

(2) Development of the Brownfield.

(3) Repayment of the Loan.

(j) A description of requested Eligible Costs to be financed by the Loan.

(k) The requested Loan amount and term.

(l) Information demonstrating ability to provide Match for the Loan.

(m) Information regarding any past or current bankruptcies, loan defaults, foreclosures, convictions, or criminal, civil or administrative investigations, orders, proceedings, litigation, settlements, or judgments, by or involving the Borrower or to which Borrower is or was a party.

(n) A signed, notarized statement from the Applicant whereby the Applicant agrees to all of the following:

(1) To provide Application-related documentation to the Strategic Partner upon request;

(2) That the Application will be evaluated according to Authority regulations, and that a Loan is not an entitlement;

(3) That information submitted to the Strategic Partner or the Authority is subject to the California Public Records Act; and

(4) Under penalty of perjury, that all information provided to the Strategic Partner or the Authority is true and correct, and that the Applicant has an affirmative duty to notify the Strategic Partner or the Authority of changes causing information in the Application or other submittals to become false.

NOTE

Authority cited: Section 44520, Health and Safety Code. Reference: Sections 44501, 44502, 44504.1, 44505, 44506, 44507, 44508, 44520, 44525.7, 44526(h), 44526(i), 44537.5, 44548(a), 44548(b), 53545 and 53545.14, Health and Safety Code.

HISTORY

2. Certificate of Compliance as to 8-13-2001 order, including amendment of subsections (d)(2) and (d)(3), transmitted to OAL 2-8-2002 and filed 3-21-2002 (Register 2002, No. 12).

3. Amendment of subsections (e)(1)(A)-(B) and amendment of Note filed 2-29-2008 as an emergency; operative 2-29-2008 (Register 2008, No. 9). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-27-2008 or emergency language will be repealed by operation of law on the following day.

4. Amendment of subsections (e)(1)(A)-(B) and amendment of Note refiled 8-25-2008 as an emergency; operative 8-27-2008 (Register 2008, No. 35). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 11-24-2008 or emergency language will be repealed by operation of law on the following day.

5. Amendment of subsections (e)(1)(A)-(B) and amendment of Note refiled 11-24-2008 as an emergency; operative 11-24-2008 (Register 2008, No. 48). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 2-23-2009 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 11-24-2008 order transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8093. Application Availability, Submission and Strategic Partner Review.

Note • History

(a) Loan Applications shall be available from the Authority's staff or from any Strategic Partner. Applicants can obtain a list of Strategic Partners or a copy of the Application by contacting the Authority's staff at the following address: California Pollution Control Financing Authority, 915 Capitol Mall, Room 457, Sacramento, California, 95814 Attention: California Recycle Underutilized Sites (CALReUSE) Program, or by telephoning (916) 654-5610. The Application shall contain the information set forth in Section 8092. The Applicant shall submit one (1) complete and signed Application to a Strategic Partner.

(b) The Strategic Partner shall review each Application in accordance with the provisions of this Article. No later than forty-five (45) days following receipt of an Application, the Strategic Partner shall in writing either:

(1) Notify the Applicant that the Application is approved;

(2) Notify the Applicant that the Application is denied and the reasons for the denial; or

(3) Notify the Applicant if the Application remains incomplete and describe what additional information the Applicant needs to submit to complete the Application. If the Strategic Partner determines that any document submitted in the Application is not adequate, the Application shall be deemed incomplete.

(d) Loan Interest Rate. The Strategic Partner will provide an interest rate quote that will be valid for 90 days. If the Loan is executed within those 90 days, the Borrower may choose the quoted interest rate, or the interest rate the day the loan is executed. If the Loan Agreement has not been executed within this time period, the Borrower will be quoted a new interest rate by the Strategic Partner under the terms described herein.

NOTE

HISTORY

2. Certificate of Compliance as to 8-13-2001 order transmitted to OAL 2-8-2002 and filed 3-21-2002 (Register 2002, No. 12).

3. Amendment of subsections (a) and (b) and amendment of Note filed 2-29-2008 as an emergency; operative 2-29-2008 (Register 2008, No. 9). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-27-2008 or emergency language will be repealed by operation of law on the following day.

4. Amendment of subsections (a) and (b) and amendment of Note refiled 8-25-2008 as an emergency; operative 8-27-2008 (Register 2008, No. 35). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 11-24-2008 or emergency language will be repealed by operation of law on the following day.

5. Amendment of subsections (a) and (b) and amendment of Note refiled 11-24-2008 as an emergency; operative 11-24-2008 (Register 2008, No. 48). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 2-23-2009 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 11-24-2008 order, including new subsections (c) and (d), transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8094. Loan Approval and Commitment Letter.

Note • History

(a) Loan Approval.

(1) The Strategic Partner shall be authorized to approve an Application when:

(A) The Application is complete and meets all of the requirements of Section 8091; and

(B) Funds are available.

(2) The Strategic Partner shall give priority to Applications for Loans as follows:

(A) First, for Brownfields not currently listed on the National Priorities List pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Section 9605(a)(8)(B)) or for Brownfields that are currently listed on the National Priorities List pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Section 9605(a)(8)(B)) for which no viable responsible party has been identified:

i. First, to Brownfields located in Economically Distressed Communities;

ii. Second, to Brownfields located in areas with existing Public Infrastructure; and

iii. Third, to other Brownfields.

(B) Second, for Brownfields that are currently listed on the National Priorities List pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Section 9605(a)(8)(B)) and for which a viable responsible party has been identified:

i. First, to Brownfields located in Economically Distressed Communities;

ii. Second, to Brownfields located in areas with existing Public Infrastructure; and

iii. Third, to other Brownfields.

(b) For purposes of this section, Responsible Party means any entity identified in 42 U.S.C. Sections 9607(a)(2), 9607(a)(3) and 9607(a)(4).

(c) Commitment Letter. If the Loan is approved, the Strategic Partner shall notify the Applicant by a letter committing the Authority to provide Loan funds so long as the Applicant strictly complies with the terms and conditions contained therein. The commitment letter shall include at least all of the following:

(1) Name(s) of the Borrower and any guarantor.

(2) Loan amount and term.

(3) A description of Eligible Costs to be financed by the Loan.

(4) Description of Match, including amount and type.

(5) Interest rate and any required loan fees.

(6) A requirement that any evidence described in Section 8092 as being expected prior to the disbursement of loan proceeds shall be received as a condition to disbursement of loan proceeds.

(7) Disbursement process, including a statement that Loan proceeds shall be disbursed on a reimbursement basis.

(8) Insurance requirements.

(9) Conditions and covenants.

(10) The date when the commitment expires.

(11) A statement that the Authority reserves the right to modify or cancel the commitment upon failure of the Applicant to execute a Loan Agreement that includes all of the terms and conditions set forth in the commitment letter, or if the Authority or the Strategic Partner becomes aware of any matter which, if known at the time of Loan review or approval, would have resulted in the Application not being approved. Such matters may include, but will not be limited to:

(A) A determination that the Application was prepared incorrectly, contains incorrect information or omits required information.

(B) Business circumstances that would negatively affect the Applicant's ability to repay the Loan.

NOTE

HISTORY

2. Certificate of Compliance as to 8-13-2001 order, including new subsection (b)(6) and subsection renumbering, transmitted to OAL 2-8-2002 and filed 3-21-2002 (Register 2002, No. 12).

3. Repealer of subsections (a)(2)(A)-(C), new subsections (a)(2)(A)-(B)iii. and (b), subsection relettering and amendment of Note filed 2-29-2008 as an emergency; operative 2-29-2008 (Register 2008, No. 9). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-27-2008 or emergency language will be repealed by operation of law on the following day.

4. Repealer of subsections (a)(2)(A)-(C), new subsections (a)(2)(A)-(B)iii. and (b), subsection relettering and amendment of Note refiled 8-25-2008 as an emergency; operative 8-27-2008 (Register 2008, No. 35). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 11-24-2008 or emergency language will be repealed by operation of law on the following day.

5. Repealer of subsections (a)(2)(A)-(C), new subsections (a)(2)(A)-(B)iii. and (b), subsection relettering and amendment of Note refiled 11-24-2008 as an emergency; operative 11-24-2008 (Register 2008, No. 48). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 2-23-2009 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 11-24-2008 order transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8095. Loan Terms.

Note • History

The terms and conditions of a Loan shall be set forth in a Loan Agreement executed by the Borrower and shall include, at a minimum, all of the following terms and conditions:

(a) A fixed interest rate equal to the Six Month London Interbank Offered Rate (LIBOR) but not less than two percent (2%).

(b) A Loan amount not greater than three hundred thousand dollars ($300,000) or where the proposed use of the Brownfield is for an Infill Development Project as defined in Section 8102, the maximum loan amount shall be five hundred thousand dollars ($500,000) for Eligible Costs with respect to a Brownfield. The Authority may waive the maximum Loan amount upon finding that it is in the public interest and advances the purposes of the program. For purposes of this subdivision, contiguous or related parcels included in a Brownfield Project that are owned or controlled by the same Borrower shall together be deemed to constitute one Brownfield.

(d) Principal and interest to become due and payable in full upon the earliest of:

(1) Issuance of either a grading permit or a building permit for the Brownfield

(2) Sale or transfer (including, without limitation, an option to purchase or a contract of purchase) of all or part of the Brownfield;

(3) The maturity date set forth in the Loan Agreement, which date shall not be more than thirty-six (36) months after the date of the Loan; or

(4) The occurrence of an event of default under the Loan Agreement.

(e) Evidence that the cash portion of the Match will be met at closing of the Loan and a description of and acknowledgment of credit for any non-cash portion of the Match;

(f) Disbursement and repayment procedures pursuant to Section 8096;

(g) A provision that any unused Loan funds shall revert to the Authority;

(h) Default provisions including, but not limited to, interest from and after the date of default at a rate of ten percent (10%) per annum;

(i) Agreement to comply with the Authority's program statutes and regulations;

(j) Agreement that the Borrower will defend, indemnify and hold harmless the Authority and the State, and all officers, trustees, agents and employees of the same, from and against any and all claims, losses, costs, damages, or liabilities of any kind or nature, whether direct or indirect, arising from or relating to the Loan, the Brownfield or this program, including but not limited to, any and all claims, losses, costs, damages, or liabilities arising from or related to the presence, release, threatened release, investigation or remediation of Hazardous Material of the Brownfield;

(k) Agreement to comply with laws outlawing discrimination including, but not limited to those prohibiting discrimination because of sex, race, color, ancestry, religion, creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer or genetic characteristics), sexual orientation, political affiliation, position on a labor dispute, age, marital status, and denial of statutorily-required employment-related leave;

(l) Agreement that continued compliance with program requirements is the Borrower's responsibility;

(m) Agreement that if the Loan is used for Eligible Costs pursuant to Section 8090(k)(1) and/or Section 8090(k)(3), that the Borrower will cause the Independent Consultant to prepare a Final Report;

(n) Agreement that the Borrower will provide or cause to be provided to the Strategic Partner a copy of the Final Report within 30 days of completion of the Final Report;

(o) Agreement that the Borrower will comply with all Hazardous Waste Reporting Laws applicable to the Brownfield or resulting from the contents of the Final Report;

(p) Agreement that the Borrower will deliver to the Strategic Partner within 90 days after Borrower's receipt of the Final Report a certification to the Authority in writing and under penalty of perjury all of the following:

(1) That the Borrower is informed of and understands all Hazardous Waste Reporting Laws applicable to the Brownfield and the contents of the Final Report;

(2) Whether there was a reporting requirement under any of the Hazardous Waste Reporting Laws applicable to the Brownfield or resulting from the contents of the Final Report;

(3) That the Borrower has made all the reports required by the Hazardous Waste Reporting Laws applicable to the Brownfield or resulting from the contents of the Final Report in the manner and within the time periods required by such Hazardous Waste Reporting Laws; and

(4) To whom and when the report was made.

(q) Agreement that Borrower's failure to comply with any Hazardous Waste Reporting Law applicable to the Brownfield or resulting from the contents of the Final Report, or failure to deliver the certification required by Section 8095(p) within the time period required, will constitute an event of default under the Loan resulting in all of the principal and interest on the Loan becoming immediately due and payable.

(r) If the Loan is for Planning for Remediation of Hazardous Materials, agreement that upon entering into the Loan Agreement, the Borrower will identify an Oversight Agency that will oversee and approve the activities that constitute Planning for Remediation of Hazardous Materials;

(s) Agreement by the Borrower to comply with all applicable law, including but not limited to statutes, rules, regulations, administrative orders and agreements, and judicial orders or consent decrees that apply to the Brownfield, related to or arising from assessment, characterization and remediation of a Brownfield, including but not limited to those requiring the preparation of a description of Hazardous Material on the Brownfield and those requiring oversight and supervision to assure the adequacy of any Feasibility Study, Remedial Investigation or Remedial Action Plan by the Oversight Agency;

(t) Agreement that if the Borrower recovers damages from a person who is liable for the release, threatened release, presence or existence of a Hazardous Material at the Brownfield, any money so recovered shall be used first to repay the Loan, except that the Borrower shall be permitted to retain fees and costs incurred in recovering the damages; and

(u) Any other provision agreed to by the parties.

NOTE

HISTORY

2. Certificate of Compliance as to 8-13-2001 order, including amendment of subsections (b), (d)(2) and (k), transmitted to OAL 2-8-2002 and filed 3-21-2002 (Register 2002, No. 12).

3. Amendment of subsections (a), (b) and (p)(4) and amendment of Note filed 2-29-2008 as an emergency; operative 2-29-2008 (Register 2008, No. 9). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-27-2008 or emergency language will be repealed by operation of law on the following day.

4. Amendment of subsections (a), (b) and (p)(4) and amendment of Note refiled 8-25-2008 as an emergency; operative 8-27-2008 (Register 2008, No. 35). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 11-24-2008 or emergency language will be repealed by operation of law on the following day.

5. Amendment of subsections (a), (b) and (p)(4) and amendment of Note refiled 11-24-2008 as an emergency; operative 11-24-2008 (Register 2008, No. 48). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 2-23-2009 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 11-24-2008 order, including amendment of subsection (a), transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8096. Conditions of Funds Disbursement, Funds Disbursement and Loan Repayment Procedures.

Note • History

(a) Conditions of Funds Disbursement. The Strategic Partner shall not disburse Loan funds unless all of the following conditions are met:

(1) All funds for completing the Brownfield Project are obtained and available for use.

(2) All terms and conditions contained in the commitment letter described in 8094(c) are satisfied;

(3) Execution of a Loan Agreement, Promissory Note and any other documents, as required, and compliance with all conditions precedent to disbursement contained in the Loan Agreement.

(b) Funds Disbursement. The Strategic Partner shall cause funds to be disbursed as follows:

(1) The Borrower shall sign and submit to the Strategic Partner a signed invoice documenting the service or procedure performed from entities providing materials and services for Eligible Costs covered by the Loan Agreement.

(2) Upon receipt of the signed invoice, the Strategic Partner, in its sole discretion, shall authorize the disbursement of Loan funds to the Borrower:

(A) First, from the cash portion of the Match until depleted, and

(B) Second, from the funds of the Authority committed by the Authority for the Loan.

(c) Loan Repayment Procedures. The Strategic Partner shall cause any Brownfield Project loan repayment proceeds received from the Borrower to be delivered promptly upon receipt by the Strategic Partner to the following entities in the following order:

(1) First, to the Authority until the funds advanced by the Authority for the Loan, or a Forgiven Loan, are repaid in full, with interest, and

(2) Second, to the Strategic Partner to repay any loan to the Borrower by the Strategic Partner in connection with the Brownfield Project, if applicable.

NOTE

HISTORY

2. Certificate of Compliance as to 8-13-2001 order transmitted to OAL 2-8-2002 and filed 3-21-2002 (Register 2002, No. 12).

3. Amendment of Note filed 2-29-2008 as an emergency; operative 2-29-2008 (Register 2008, No. 9). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-27-2008 or emergency language will be repealed by operation of law on the following day.

4. Amendment of Note refiled 8-25-2008 as an emergency; operative 8-27-2008 (Register 2008, No. 35). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 11-24-2008 or emergency language will be repealed by operation of law on the following day.

5. Amendment of Note refiled 11-24-2008 as an emergency, including further amendment of subsection (a)(2); operative 11-24-2008 (Register 2008, No. 48). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 2-23-2009 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 11-24-2008 order transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8097. Loan Extensions, Loan Forgiveness and Conditions for Forgiven Loans.

Note • History

(a) Loan Extensions. Upon written request received from the Borrower, the maturity of a Loan may be extended by the Strategic Partner if both of the following conditions are met:

(1) The Borrower clearly demonstrates that it is unable to complete the Brownfield Project by the end of the Loan term, and

(2) The Borrower clearly demonstrates how the Brownfield Project can be completed in the additional time requested.

(b) Loan Forgiveness. Upon written request from the Borrower, a Loan may be forgiven by the Strategic Partner if the Borrower, acting reasonably and in good faith, fails to complete the Brownfield Project or proceed with development of the Brownfield.

(1) The Borrower's execution of a written agreement whereby:

(A) The Borrower promises that in the event the Borrower subsequently causes (i) the issuance of either a grading permit or a building permit for the Brownfield or (ii) sells or transfers (including, without limitation, an option to purchase or a contract of purchase) all or part of the Brownfield, the Borrower will repay the forgiven balance of the Loan (and the Strategic Partner shall receive and deliver such funds in accordance with Section 8096(c)); and

(B) The Borrower promises that if it recovers damages from a person who is liable for the release, threatened release, presence or existence of a Hazardous Material at the Brownfield, any money so recovered shall be used first by the Borrower to repay the forgiven balance of the Loan, except that the Borrower shall be permitted to retain fees and costs incurred in recovering the damages.

(2) The Borrower's delivery of documentation to the Strategic Partner evidencing that the Borrower has complied with all applicable laws, including but not limited to statutes, rules, and regulations, administrative orders and agreements, judicial orders, and consent decrees that apply to the Brownfield and relate to or arise from the site assessment and characterization, Planning for Remediation of Hazardous Materials, and remediation of the Brownfield. Such documentation shall include evidence that the Borrower has complied with any applicable requirement to obtain oversight and approval from an Oversight Agency.

(3) The Borrower's delivery of the Final Report to the Strategic Partner as required by Section 8095(n).

(4) The Borrower's delivery to the Strategic Partner of the certification as required by Section 8095(p).

NOTE

HISTORY

2. Certificate of Compliance as to 8-13-2001 order, including amendment of subsections (a) and (c)(1)(A), transmitted to OAL 2-8-2002 and filed 3-21-2002 (Register 2002, No. 12).

5. Amendment of Note refiled 11-24-2008 as an emergency; operative 11-24-2008 (Register 2008, No. 48). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 2-23-2009 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 11-24-2008 order transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8098. Strategic Partner Reports and Records Retention.

Note • History

(a) A Strategic Partner shall provide the following quarterly reports to the Authority no later than the fifteenth day of April, July, October, and January for the quarters ending in March, June, September and December, respectively:

(1) Applications Received Report. This report shall include the following information:

(A) A listing of identified Brownfield Projects for which Applications have been submitted and for which funding is anticipated during the next six months.

(B) Identification of whether proposed Brownfield Projects are located in Economically Distressed Communities.

(2) Request for Funds Report. This report shall include the following information for each Brownfield Project to be funded during the next three months:

(A) A description of the Brownfield Project.

(B) Identification of whether the Brownfield Project is located in an Economically Distressed Community.

(D) Identification of whether the Applicant qualifies as a Small Business.

(E) Requested Loan amount for Brownfield Project.

(F) Description of Eligible Costs to be funded for the Brownfield Project.

(G) Proposed Loan term.

(H) Description of Match for the Brownfield Project including the source and amount of Match.

(I) Identification of total amount of loan funds requested for the quarter.

(3) Brownfields Projects Status Report. This report shall describe the current status of each Brownfield Project for which a Loan (including a Loan for which the Strategic Partner is the Borrower) remains outstanding including:

(A) A description of activities performed at the Brownfield for the previous three months.

(B) A statement of whether the Strategic Partner has received the Final Report and, if so, a summary of the Final Report that was received during the previous three months.

(4) Outstanding Loans Report. This report shall describe the current repayment status of every Loan (including a Loan where the Strategic Partner is the Borrower) including:

(A) Name of Borrower.

(B) Identification of whether the Borrower is a Small Business.

(D) Name of Brownfield Project.

(E) Street Address of the Brownfield.

(F) Draw down on Match.

(G) Current payments.

(H) Total Loan repayment status.

(I) If a Loan is extended:

(i) The date that the Loan was extended, and

(ii) The current Loan amount and term.

(J) If a Loan is a Forgiven Loan:

(i) The date that the Loan was forgiven, and

(ii) The amount forgiven.

(5) Other reports and documents as reasonably requested by the Authority.

(b) Brownfields Development Status Report. A Strategic Partner shall provide an annual report to the Authority that shall describe the current status of the development of each Brownfield for which a Loan (including a Loan where the Strategic Partner is the Borrower) was made including:

(1) A description of the proposed use for the Brownfield.

(2) A detailed description of development activities performed at the Brownfield for the previous year.

(3) Upon completion of development of the Brownfield, a description of the final use for the property.

(c) Records Retention. A Strategic Partner shall retain the Application, all documents that were submitted by the Borrower with the Application, and all documents pertaining to the Loan and the Brownfield Project for at least six years after the later of the termination of the Loan, or the completion of actions and the resolution of all issues, that arise as a result of any litigation, claim, negotiation or audit concerning the Loan Agreement or an agreement executed pursuant to Section 8097(c)(1).

NOTE

HISTORY

2. Certificate of Compliance as to 8-13-2001 order, including repealer of subsection (a)(1)(D), transmitted to OAL 2-8-2002 and filed 3-21-2002 (Register 2002, No. 12).

3. Amendment of subsections (a), (a)(1)(B), (a)(2)(B) and (a)(3)(B)-(C) and amendment of Note filed 2-29-2008 as an emergency; operative 2-29-2008 (Register 2008, No. 9). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-27-2008 or emergency language will be repealed by operation of law on the following day.

4. Amendment of subsections (a), (a)(1)(B), (a)(2)(B) and (a)(3)(B)-(C) and amendment of Note refiled 8-25-2008 as an emergency; operative 8-27-2008 (Register 2008, No. 35). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 11-24-2008 or emergency language will be repealed by operation of law on the following day.

5. Amendment of subsections (a), (a)(1)(B), (a)(2)(B) and (a)(3)(B)-(C) and amendment of Note refiled 11-24-2008 as an emergency; operative 11-24-2008 (Register 2008, No. 48). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 2-23-2009 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 11-24-2008 order transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8099. Technical Assistance.

Note • History

(a) Upon request of an Applicant or Borrower, the Strategic Partner may provide Technical Assistance to assist in the assessment and characterization of a Brownfield Project.

(b) Technical Assistance provided by a Strategic Partner during the assessment phase of the Brownfield Project may count as Match for the Brownfield Project, but may not be reimbursed with Loan funds.

NOTE

HISTORY

2. Certificate of Compliance as to 8-13-2001 order transmitted to OAL 2-8-2002 and filed 3-21-2002 (Register 2002, No. 12).

3. Amendment of subsections (a) and (b), repealer of subsection (c) and amendment of Note filed 2-29-2008 as an emergency; operative 2-29-2008 (Register 2008, No. 9). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-27-2008 or emergency language will be repealed by operation of law on the following day.

4. Amendment of subsections (a) and (b), repealer of subsection (c) and amendment of Note refiled 8-25-2008 as an emergency; operative 8-27-2008 (Register 2008, No. 35). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 11-24-2008 or emergency language will be repealed by operation of law on the following day.

5. Amendment of subsections (a) and (b), repealer of subsection (c) and amendment of Note refiled 11-24-2008 as an emergency; operative 11-24-2008 (Register 2008, No. 48). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 2-23-2009 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 11-24-2008 order, including amendment of subsection (a), transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8100. Strategic Partner Eligibility and Selection Criteria.

Note • History

(a) A governmental agency or public or private entity shall be eligible to participate as a Strategic Partner and Strategic Partners will be selected by the Authority based upon the following eligibility and selection criteria:

(1) Demonstrated ability to provide Technical Assistance to a Development Entity;

(2) Demonstrated understanding of the economic and real estate development processes;

(3) Demonstrated understanding of environmental assessment and remediation requirements;

(4) Demonstrated understanding of Brownfield regulatory and reporting requirements; and

(5) Demonstrated partnership experience.

(b) The services to be provided by a Strategic Partner pursuant to Section 8090(af) and Section 8090(ah) hereof shall be provided as an independent contractor pursuant to a written agreement to be entered into by and between the Strategic Partner and the Authority.

(c) An entity may not act as a Strategic Partner as to any Brownfield for which such entity is a responsible party as defined by Section 25323.5 of the California Health and Safety Code. However, as to any such Brownfield, the entity may be an Applicant and Borrower, and the Authority shall be the Strategic Partner with respect to such Application and Loan.

NOTE

Authority cited: Section 44520, Health and Safety Code. Reference: Sections 25323.5, 44501, 44502, 44504.1, 44505, 44506, 44507, 44508, 44520, 44525.7, 44526(h), 44526(i), 44537.5, 44548(a), 44548(b), 53545 and 53545.14, Health and Safety Code.

HISTORY

2. Certificate of Compliance as to 8-13-2001 order transmitted to OAL 2-8-2002 and filed 3-21-2002 (Register 2002, No. 12).

6. Certificate of Compliance as to 11-24-2008 order, including amendment of subsection (b), transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8101. Strategic Partner as Applicant and/or Borrower.

Note • History

The following shall apply in all cases where the Strategic Partner is the Applicant or the Borrower or in the event the Strategic Partner is unable to act relative to an Applicant due to a conflict of interest as defined in the Political Reform Act (Government Code Sections 81000 through 91014):

(a) The Authority shall act as the Strategic Partner as to the Application and Loan.

(b) If the Authority is the Strategic Partner, the Executive Director shall be authorized to:

(1) Determine whether the Applicant shall be eligible for a Loan pursuant to Section 8091.

(2) Review the Application and notify the Applicant pursuant to Section 8093.

(3) Approve the Loan and notify the Applicant pursuant to Section 8094.

(4) Cause funds to be disbursed to the Borrower pursuant to Section 8096.

(5) Determine whether a Loan shall be extended or forgiven pursuant to Section 8097.

NOTE

HISTORY

2. Certificate of Compliance as to 8-13-2001 order transmitted to OAL 2-8-2002 and filed 3-21-2002 (Register 2002, No. 12).

3. Amendment of section and Note filed 2-29-2008 as an emergency; operative 2-29-2008 (Register 2008, No. 9). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-27-2008 or emergency language will be repealed by operation of law on the following day.

4. Amendment of section and Note refiled 8-25-2008 as an emergency; operative 8-27-2008 (Register 2008, No. 35). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 11-24-2008 or emergency language will be repealed by operation of law on the following day.

5. Amendment of section and Note refiled 11-24-2008 as an emergency; operative 11-24-2008 (Register 2008, No. 48). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 2-23-2009 or emergency language will be repealed by operation of law on the following day.

6. Certificate of Compliance as to 11-24-2008 order, including amendment of subsection (a), transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

Subarticle 2. CalReUSE Remediation Program.

§8102. Brownfield Infill Project Program Definitions.

Note • History

In addition to, or in place of the definitions contained in Section 8090, the following definitions shall govern construction of the Brownfield Infill Project Program.

(a) “Brownfield Infill Project” means a project within an Infill Area involving the Remedy, Remedial Action, mitigation and clean-up of Hazardous Material, at a Brownfield, including assessment and site characterization regarding Hazardous Materials first uncovered in the course of mitigation or remediation funded by an Infill Grant or Infill Loan.

(b) “Brownfield Remediation Completion Document” means a written verification from an Oversight Agency stating that the Remedial Work performed was adequate in the remediation of Hazardous Materials at the Brownfield Infill Project.

(1) Certification that the Borrower or Grantee implemented the final remedy in accordance with the approved Cleanup Plan, and that the work was done in accordance with all applicable laws and regulations.

(2) Certification that the Brownfield Infill Project has been completed in compliance with the California Environmental Quality Act (CEQA) (Public Resources Code Sections 21000-21177) and the State CEQA guidelines contained in Section 15000 et seq. of Title 14 of the California Code of Regulations.

(3) A final description of the Remedial Work conducted on the Brownfield Infill Project, including but not limited to:

(A) A description of the Remedial Work conducted on the Brownfield Infill Project;

(B) Copies of all necessary permits relating to the Brownfield Infill Project;

(D) A description of the public outreach conducted relating to the Brownfield Infill Project.

(4) Provision of a copy of the Brownfield Remediation Completion Document the Borrower or Grantee received from the appropriate Oversight Agency.

(5) Where the remediation and/or Cleanup Plan includes Ongoing Operation and Maintenance, a copy of a plan, approved by the Oversight Agency that ensures that the required mitigation measure will remain in operation for the required time and a copy of the agreement creating a trust or escrow account for the funds.

(d) “Completed Infill Development Project,” “Completion of the Infill Development Project,” or “Complete the Infill Development Project” means the point at which the development of the Brownfield is completed, and the Applicant has received a certificate of occupancy, or its equivalent, from the appropriate local public agency.

(e) “Completed Infill Development Project Report” means a report submitted to the Strategic Partner which includes the Applicant's certification of a Completed Infill Development Project which will include, but is not limited to:

(1) A description of the Completed Infill Development Project, including a comparison to the Applicant's description pursuant to Section 8102.2;

(2) A certificate of occupancy, or the equivalent building permit or legal document from the appropriate local government agency; and

(3) A copy of the Regulatory Agreement or Recorded Covenant, if applicable.

(f) “Eligible Brownfield Infill Project Cost” means costs associated with the removal or abatement of Hazardous Materials and Remedial Work related to the Cleanup Plan, pursuant and in accordance with Health and Safety Code Section 44526(h)(1), including, but not limited to:

(1) Cleanup, mitigation, remediation, mid-project assessment and characterization, and other costs, including development costs as required by the Oversight Agency;

(2) Technical Assistance;

(3) The Costs of the Oversight Agency and other Governmental oversight incurred by the Borrower and/or Grantee that is associated with the Remedial Actions related to the Brownfield Infill Project;

(4) No more than twenty percent (20%) of the requested Infill Loan or Infill Grant amount may be spent on environmental insurance premiums; and

(5) Planning, construction, equipment and installation that may require operation and maintenance, beyond the term of the Infill Loan or Infill Grant.

(g) “Grantee” means an Applicant whose Infill Application has been approved and who has executed an Infill Grant Agreement.

(h) “Infill Application” means the provision by the Applicant of the information requested in Section 8102.2.

(i) “Infill Area” means a contiguous area that has been previously developed that is located within an established urban and/or rural neighborhoods or communities, where those neighborhoods or communities are already served with streets, water, sewer and other public services.

(j) “Infill Development Project” means a development project within an Infill Area, consistent with Regional and Local Land Use Plans, which produces or Promotes Residential Development or Mixed Use Development.

(k) “Infill Grant” means a grant made in accordance with procedures in Sections 8102.1, and 8102.4.

(l) “Infill Grant Agreement” means a written agreement for an Infill Grant entered into between:

(1) An Applicant and the Authority; or

(2) A Strategic Partner and the Authority pursuant to Section 8102.12.

(m) “Infill Loan” means a loan made in accordance with the procedures in Sections 8102.1 and 8102.4.

(n) “Infill Loan Agreement” means a written agreement for an Infill Loan entered into between:

(1) An Applicant and the Authority; or

(2) A Strategic Partner and the Authority pursuant to Section 8102.12.

(o) “Ineligible Brownfield Infill Project Costs” includes, but is not limited to:

(1) Costs not authorized by Health and Safety Code Section 44526(h)(1);

(2) Monitoring and data collection necessary to apply for, or comply with, environmental permits under other federal and state laws, unless such permit is required by the Cleanup Plan;

(p) “Mixed Use Development” means a development project including residential use and at least one other type of use in a building or set of buildings. Along with residential, included uses can be, but are not limited to some combination of commercial, industrial, office, institutional, or other land uses.

(q) “Ongoing Operation and Maintenance” means those activities initiated or continued at a Brownfield Infill Project beyond the term of the Infill Loan Agreement or Infill Grant Agreement that is deemed necessary by the Oversight Agency in order to protect public health or safety or the environment, to maintain the effectiveness of the Remedial Work at the Brownfield Infill Project, or to achieve or maintain the standards and objectives established and approved by the Oversight Agency.

(r) “Promotes Residential Development or Mixed Use Development” means a development project that is directly related to and necessary for the development of new Residential Development or Mixed Use Development within an Infill Area and required by the local governing body.

(s) “Recorded Covenant” means a covenant recorded on an Infill Brownfield Development Project which receives an Infill Grant:

(1) Ensuring the affordability of rental units for a term of at least fifty-five (55) years; or

(2) Including either a resale restriction for at least thirty (30) years or equity sharing upon resale for ownership units.

(t) “Regional and Local Land Use Plan(s)” means at least one of the following:

(1) The adopted general plan of city, county, or city and county, in which the Infill Development Project resides;

(2) The housing element of the city, county, or city and county, in which the Infill Development Project resides;

(3) A project area redevelopment plan;

(4) A regional blueprint plan;

(5) A capital improvement plan; or

(6) A regional transportation plan or a transportation corridor plan.

(u) “Regulatory Agreement” means a recorded legal agreement between the Applicant and a public agency that determines the restrictions and terms of affordability of the housing units created by the Infill Development Project.

(v) “Remedial Work” means the performance of the activities outlined and required by the Oversight Agency of the Brownfield Infill Project.

(w) “Residential Development” means a project with the primary purpose of providing housing.

(x) “Responsible Party” means any entity identified in 42 U.S.C. Sections 9607(a)(2), 9607(a)(3) and 9607(a)(4).

(y) “Supplemental Infill Application” means the provision by the Applicant of the information requested in Section 8102.2 that was not previously provided pursuant to Section 8092, which must include:

(1) Certification that the information provided by the Applicant pursuant to Section 8092 is current and updated;

(2) The Applicant provides the certification of information pursuant to Section 8102.2(l) and Section 8102.2(m).

NOTE

Authority cited: Section 44520, Health and Safety Code. Reference: Sections 44501, 44502, 44504.1, 44505, 44506, 44507, 44508, 44520, 44525, 44525.7, 44526(h), 44526(h)(1), 44526(i), 44537.5, 44548(a), 44548(b), 53545 and 53545.14, Health and Safety Code.

HISTORY

1. New subarticle 2 (sections 8102-8102.15) and section filed 2-29-2008 as an emergency; operative 2-29-2008 (Register 2008, No. 9). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-27-2008 or emergency language will be repealed by operation of law on the following day.

2. New subarticle 2 (sections 8102-8102.15) and section refiled 8-25-2008 as an emergency; operative 8-27-2008 (Register 2008, No. 35). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 11-24-2008 or emergency language will be repealed by operation of law on the following day.

3. New subarticle 2 (sections 8102-8102.15) and section refiled 11-24-2008 as an emergency, including further amendment of subsection (c)(2); operative 11-24-2008 (Register 2008, No. 48). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 2-23-2009 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 11-24-2008 order, including amendment of subsections (a), (f)(4)-(5), (j), (l)(1) and (n)(1), repealer of subsections (l)(2)-(3) and (n)(2)-(3), subsection renumbering and amendment of subsection (r) and Note, transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8102.1. Infill Grant and Infill Loan Eligibility.

Note • History

(a) An Applicant shall be eligible for an Infill Grant or Infill Loan when the Strategic Partner determines all of the following:

(1) The Applicant submits an Infill Application that meets the requirements of Section 8102.2;

(2) The Applicant proposes a Brownfield Infill Project within an Infill Area;

(3) The Applicant submits a Remedial Action Plan or Cleanup Plan that has been approved by an appropriate Oversight Agency;

(4) The Applicant submits a Phase I assessment report consistent with Title 40, Part 312 of the Code of Federal Regulations;

(5) The Infill Grant or Infill Loan is requested to fund all or a portion of Eligible Brownfield Infill Project Costs associated with a Brownfield Infill Project;

(6) The Applicant demonstrates the ability to retain, or is, a development entity;

(7) If the requested Infill Grant or Infill Loan does not finance all costs of the Brownfield Infill Project, the Applicant identifies an alternative funding source or other financial means to finance the costs of the Brownfield Infill Project not covered by the Infill Grant or Infill Loan;

(8) The Applicant demonstrates that the Infill Development Project produces or Promotes Residential Development or Mixed Use Development;

(9) The Applicant demonstrates that the Infill Development Project is consistent with Regional and Local Land Use Plan(s);

(10) The Applicant identifies the funding sources to develop the Infill Development Project ;

(11) The Applicant has not been convicted of a felony or misdemeanor involving the regulation of Hazardous Materials, including, but not limited to, a conviction of a felony or misdemeanor under California Health and Safety Code Section 25395.13; and

(12) Any affirmative responses provided in Section 8102.2(l) do not materially impugn the integrity of the Applicant or will not adversely affect the Applicant's ability to comply with these regulations.

(b) The determination of eligibility by a Strategic Partner does not constitute approval of an Infill Application. No award can be made unless the Strategic Partner's recommendation is subsequently ratified by the Authority.

NOTE

HISTORY

1. New section filed 2-29-2008 as an emergency; operative 2-29-2008 (Register 2008, No. 9). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 8-27-2008 or emergency language will be repealed by operation of law on the following day.

2. New section refiled 8-25-2008 as an emergency; operative 8-27-2008 (Register 2008, No. 35). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 11-24-2008 or emergency language will be repealed by operation of law on the following day.

3. New section refiled 11-24-2008 as an emergency; operative 11-24-2008 (Register 2008, No. 48). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 2-23-2009 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 11-24-2008 order, including amendment of subsections (a)(4) and (a)(8), transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8102.2. Infill Application Content.

Note • History

An Infill Application shall include all of the following information, and indicate the source of information in circumstances in which the Applicant is not the primary source.

(a) The Applicant's name, address, telephone number, federal tax identification number, type of business or entity, the date the business or entity was established, the name of the owners of the business or entity, and the percentage of ownership of the business or entity.

(b) Whether the Applicant is applying for an Infill Grant and/or an Infill Loan and the necessary information establishing eligibility for the grant or loan applied for.

(d) If the Applicant is not the owner of the Brownfield, evidence of the Applicant's legal interest in the Brownfield through:

(A) An executed lease agreement or lease option for the length of time the Brownfield Infill Project and Infill Development Project will be regulated under this program between the Applicant and the owner of the subject property; or

(B) An executed disposition and development agreement between the Applicant and a public agency; or

(C) A valid, current, and enforceable contingent purchase and sale agreement, conveyance agreement or option agreement between the Applicant and the owner of the subject property, including evidence that all extensions necessary to keep agreement current through the date of the award; or

(D) Valid, current and enforceable purchase and sale agreements, contingent purchase and sale agreements, conveyance agreements, option agreements in combination between the Applicant, a third party and the owner of the subject property such that the Authority can determine that upon an award the Applicant has a right to acquire the subject property; or

(E) Site control may also be demonstrated where a local agency has documented its intention to acquire the site, or portion of the site, through eminent domain proceedings through an order of possession or resolution duly adopted by the agencies governing body.

(e) Information regarding the Oversight Agency and Cleanup Plan, including:

(1) Identification of the Oversight Agency and staff member that is assigned to the Brownfield Infill Project, including name, phone number, address, and email address.

(2) A copy of the draft Cleanup Plan submitted to the Oversight Agency.

(3) A copy of the All Appropriate Inquiries report prepared in compliance with the requirements of Title 40, Part 312 of the Code of Federal Regulations.

(f) Information regarding the Brownfield for which the Infill Grant or Infill Loan is being requested, including:

(1) A description of the Brownfield Infill Project including:

(A) The location of the Brownfield, including the site address, parcel number and area of the Brownfield site;

(B) A description of the portions of the Brownfield site which will be dedicated to housing, commercial, retail, open space and other uses;

(D) Evidence of the Brownfield's location within an Economically Distressed Community, if applicable;

(E) A site layout that includes the location and dimensions of any existing buildings, utilities, and other pertinent features, if available;

(F) The current use and zoning of the Brownfield;

(G) The current land uses and zoning of adjacent property and the surrounding neighborhood;

(H) Identification of Public Infrastructure and its proximity to the Brownfield; and

(I) The estimated time period for completion, components, and costs of the Brownfield Infill Project.

(2) A description of the proposed Infill Development Project including, but not limited to:

(A) Evidence the Infill Development Project is consistent with Regional or Local Land Use Plans, or where consistency depends on pending changes to the plans, the Applicant may submit a letter from the local planning director demonstrating the local governing agency's support for the Infill Development Project.

(B) Evidence the proposed Infill Development Project Promotes Infill Residential or Mixed Use Development, including:

i. The number of housing units to be created;

ii. Where affordable housing is proposed, the depth and duration of the affordability of the housing units;

iii. Description of area jobs, community amenities and transit;

iv. Description of the population the Infill Development Project will serve;

v. If the final characteristics of the Infill Development Project are dependent on pending financing, the Applicant must include descriptions of any intended alternative development as it relates to the final characteristics of the Infill Development Project. Where alternative Infill Development Projects are submitted, the alternative receiving the lowest score according to the criteria set forth in Section 8102.14 will be used to rank the Infill Application.

(D) The goals and objectives of, and the benefit to the community from, the Infill Development Project.

(3) A description of obstacles to the reuse of the Brownfield (e.g., regulatory issues, complex remediation, liability, and/or marketability).

(4) A listing of the various permits and approvals reasonably expected to be required from the local regulatory land use jurisdictions and agencies, including contact information and status of the permit applications.

(5) A description of community involvement and local government support for the Brownfield Infill Project and Infill Development Project.

(g) A description of the Applicant's experience managing projects similar to the one proposed and the qualifications of key personnel involved.

(h) Identification and contact information of the primary persons and their roles and responsibilities for performing and overseeing the activities necessary to complete the Brownfield Infill Project.

(i) Identification of potential funding sources for:

(1) Completion of the Brownfield Infill Project;

(2) Completion of the Infill Development Project; and

(3) Repayment of the Infill Loan (if applicable).

(j) A description of requested Eligible Brownfield Infill Project Costs to be financed by the Infill Grant or Infill Loan.

(k) The requested Infill Grant or Infill Loan amount and term.

(l) Information regarding bankruptcies, loan defaults, foreclosures, convictions, or criminal, civil or administrative investigations, orders, proceedings, litigation, settlements, or judgments relating to land development or brownfield cleanup, by or involving the Applicant or to which Applicant is or was a party within the ten years immediately preceding the Infill Application.

(m) A signed, notarized statement from the Applicant whereby the Applicant agrees to all of the following:

(1) To provide Infill Application-related documentation to the Strategic Partner upon request;

(2) That the Infill Application will be evaluated according to Authority regulations, and that an Infill Grant or Infill Loan is not an entitlement;

(3) That information submitted to the Strategic Partner or the Authority is subject to the California Public Records Act (Government Code Sections 6250, et seq.); and

(4) Under penalty of perjury, that all information provided to the Strategic Partner or the Authority is true and correct, and that the Applicant has an affirmative duty to notify the Strategic Partner and Authority of changes causing information in the Infill Application or other submittals to become false.

(n) A description of the jobs, including type, estimated date of commencement and length of duration, that will be caused by:

(1) The Brownfield Infill Project;

(2) The construction of the Infill Development Project; and

(3) The Infill Development Project upon its completion.

(o) The Applicant's anticipated timeline for submitting disbursement requests (requests for funds) if the application request is awarded, denoting the estimated amount, month and year of all anticipated disbursement requests within the term of the Infill Grant and/or Infill Loan.

NOTE

HISTORY

4. Certificate of Compliance as to 11-24-2008 order, including amendment of subsections (a) and (d), repealer of subsections (d)(1)-(3) and new subsections (d)(A)-(E) and (n)-(o), transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8102.3. Infill Application Availability, Submission and Strategic Partner Review.

Note • History

(a) Applicants can obtain information regarding application procedures by contacting the Authority's staff at the following address: California Pollution Control Financing Authority, 915 Capitol Mall, Room 457, Sacramento, California, 95814 Attention: California Recycle Underutilized Sites (CALReUSE) Program, or by telephoning (916) 654-5610.

(b) The Applicant shall submit two (2) complete and signed Infill Applications to a Strategic Partner.

(d) The Strategic Partner shall review each Infill Application in accordance with the provisions of this Subarticle. No later than forty-five (45) days following receipt of a completed Infill Application, the Strategic Partner shall in writing either:

(1) Notify the Applicant that the Infill Application is being recommended to the Authority for approval;

(2) Notify the Applicant that the Infill Application is not being recommended to the Authority and the reasons for the denial; or

(3) Notify the Applicant that the Infill Application remains incomplete and describe what additional information the Applicant needs to submit to complete the Infill Application. If the Strategic Partner determines that any document submitted in the Infill Application is not adequate, the Infill Application shall be deemed incomplete.

(e) If an Applicant has previously been a Borrower under the Site Assessment Program set forth in Subarticle 1 as to the same Brownfield for which funding is now sought under this Subarticle, the Applicant shall submit a Supplemental Infill Application for either an Infill Loan or Infill Grant under the same conditions identified in Sections 8102.3(b), 8102.3(c) and 8102.3(d).

NOTE

HISTORY

3. New section refiled 11-24-2008 as an emergency, including amendment of subsection (e); operative 11-24-2008 (Register 2008, No. 48). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 2-23-2009 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 11-24-2008 order, including amendment of subsections (d)(1)-(2), transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8102.4. Infill Grants and Infill Loans.

Note • History

(a) Infill Grants, Infill Loans or combined Infill Grants and Loans to the same entity for the same Brownfield Infill Project and subject to the same Cleanup Plan shall not be less than fifty thousand ($50,000) nor more than five million dollars ($5,000,000). The Authority may waive the minimum or maximum upon a finding that it is in the public interest and advances the purposes of the program.

(b) Infill Grants may be awarded to Applicants to the extent the proposed Infill Development Project includes not less than fifteen percent (15%) affordable units as set forth in Health and Safety Code Sections 53545.13(c)(2)(C) and 53545.13(c)(2)(D). In addition, the proposed Infill Development Project must meet the density requirements set forth in Health and Safety Code Section 53545.13(c)(3).

(1) Housing for homeless populations.

(2) Housing for special needs populations as defined in Section 10325(g)(4) of Title 4 of the California Code of Regulations.

(3) Single Room Occupancy (SRO) housing as defined in Section 10325(g)(3) of Title 4 of the California Code of Regulations.

(4) United States Department of Housing and Urban Development Section 202 Supportive Housing for the Elderly.

(5) United States Department of Housing and Urban Development Section 811 Supportive Housing for Person with Disabilities.

(6) Housing for families with special needs that require temporary relocation.

(d) Infill Grants shall not be awarded to any Responsible Party.

(e) In awarding Infill Grants and Infill Loans the Authority shall prioritize applications into tiers as follows:

(1) Sites not currently listed on the National Priorities List pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Section 9605(a)(8)(B)) and sites that are currently listed on the National Priorities List pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Section 9605(a)(8)(B)), for which no viable Responsible Party has been identified shall be accorded first priority.

(2) Sites currently listed on the National Priorities List pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Section 9605(a)(8)(B)) for which a viable Responsible Party has been identified shall be accorded second priority.

(f) The following proposed Infill Development Projects may be eligible for an Infill Loan at an interest rate equal to the Six Month London Interbank Offered Rate (LIBOR) but not less than two percent (2%) which shall be fixed at the time of the execution of the Loan Agreement:

(1) Any proposed Infill Development Project that is eligible for an Infill Grant.

(2) Any proposed Infill Development Project that Promotes Residential or Mixed Use Development.

(g) Where the specifics of a proposed Infill Development Project are uncertain at the time of application, the Infill Application will be considered as one for an Infill Loan pursuant to paragraph (f). The Infill Loan Agreement will contain a conversion feature that will allow the loan to be converted to an Infill Grant pursuant to paragraphs (b) and (c). Any conversion will be adjusted back to the date of execution and is dependent on a Regulatory Agreement with an appropriate public agency or a Recorded Covenant.

(h) An Infill Development Project that in and of itself does not produce housing units, but Promotes Residential or Mixed Use Development, will be eligible to receive the financial terms of the Residential Development or Mixed Use Development that the Infill Development Project is related to, and necessary for.

NOTE

HISTORY

3. New section refiled 11-24-2008 as an emergency, including amendment of subsection (c)(2); operative 11-24-2008 (Register 2008, No. 48). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 2-23-2009 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 11-24-2008 order, including amendment of subsections (a), (e), (f)(2), (g) and (h) and repealer of subsection (i), transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8102.5. Infill Grant and Infill Loan Approval.

Note • History

(a) Upon recommendation from the Strategic Partner, the Authority may approve an Infill Application. The Strategic Partner may recommend approval upon a determination that:

(1) The Infill Application is complete and satisfies the requirements of Section 8102.2;

(2) The proposed Infill Development Project meets the requirements of Sections 8102.1 and 8102.4;

(3) The Infill Application has been scored according to the criteria set forth in Section 8102.14.

(b) An Applicant may submit an Infill Application where its Remedial Action Plan or Cleanup Plan has been submitted to, but has not yet been approved by, the appropriate Oversight Agency. Upon receipt of an Infill Application that is complete except for the inclusion of a Remedial Action Plan or Cleanup Plan approved by the appropriate Oversight Agency, the Strategic Partner shall conduct a preliminary review and inform the Applicant the Infill Application is complete contingent upon receipt of a Remedial Action Plan or Cleanup Plan approval from the appropriate Oversight Agency.

Notice from the Strategic Partner that the Infill Application is complete does not constitute approval or create any obligation to fund an Infill Grant or Infill Loan. Where the Infill Grant or Infill Loan is ultimately funded however, any Eligible Brownfield Infill Costs may be reimbursed back to the date the Infill Application was deemed complete by the Strategic Partner.

(c) Upon approval of an Infill Application by the Authority, the Strategic Partner shall notify the Applicant by a letter committing the Authority to provide Infill Grant or Infill Loan funds so long as the Applicant strictly complies with the terms and conditions contained therein. The commitment letter shall include at least all of the following:

(1) Name of the Applicant and any guarantor;

(2) Amount and term of the Infill Grant or Infill Loan;

(3) A description of Eligible Brownfield Infill Costs to be financed by the Infill Grant or Infill Loan;

(4) Interest rate, if applicable;

(5) A requirement that any evidence described in Section 8102.2 as being expected prior to the disbursement of loan proceeds shall be received as a condition to disbursement of Infill Grant or Infill Loan proceeds;

(6) A description of the disbursement process, including a statement that Infill Grant or Infill Loan proceeds shall be disbursed on a reimbursement basis;

(7) Insurance requirements, if any;

(8) Conditions and covenants;

(9) The date when the commitment expires;

(10) A statement that the Authority reserves the right to modify or cancel the commitment upon failure of the Applicant to execute an Infill Grant Agreement or Infill Loan Agreement that includes all of the terms and conditions set forth in the commitment letter, or if the Authority or the Strategic Partner becomes aware of any material fact which, if known at the time of Infill Grant or Infill Loan review or approval, would have resulted in the Infill Application not being approved, including but not limited to:

(A) A determination that the Infill Application was prepared incorrectly, contains incorrect information or omits required information; or

(B) Any change in business circumstances that would negatively affect the Applicant's ability to repay the Infill Loan or complete the Infill Development Project.

(11) The commitment letter will reserve the Applicant's award until the Cleanup Plan or Remedial Action Plan is approved by the Oversight Agency and the necessary Infill Grant Agreement or Infill Loan Agreement can be executed.

(12) A commitment letter is valid for twelve (12) months. If the Applicant's Cleanup Plan or Remedial Action Plan has not been approved by an Oversight Agency upon expiration of the commitment letter:

(A) The Authority may extend the term of any commitment letter upon a finding that it is in the public interest and advances the purposes of the program.

(B) The award may be deemed to be unencumbered and will revert to the Authority.

(C) The Applicant may be required to re-submit its Infill Application to be considered for any subsequent Infill Grant or Infill Loan.

(d) In approving an Infill Application, the Authority may elect to proceed in a series of funding rounds in which specified amounts will be made available for allocation. In the alternative, the Authority may make the entire amount available for allocation in one continuous process. The Authority will make its decision in this regard and meeting schedule known as early as practicable in any calendar year in which funds are available.

(e) The Authority will consider the following criteria in decisions allocating and approving to fund an Infill Application:

(1) The availability of program funds;

(2) Program priority as identified in Section 8102.4(e);

(3) Public benefits, including but not limited to those evaluated pursuant to Section 8102.14;

(4) Geographic distribution targets as identified in Section 8102.15; and

(f) If program funds are not available, the Authority may pre-approve funding of an Infill Application conditioned upon:

(1) Program funds being available at a future date; and

(2) Reconfirmation of the award by the Authority; and

(3) The Infill Application is subject to all other provisions of this Article.

NOTE

HISTORY

4. Certificate of Compliance as to 11-24-2008 order, including amendment of subsections (c)(11)-(12) and new subsections (d)-(f)(3), transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8102.6. Infill Grant and Infill Loan Terms.

Note • History

(a) The terms and conditions of an Infill Grant or Infill Loan shall be set forth in an Infill Grant Agreement or Infill Loan Agreement executed by the Grantee or Borrower and shall include, at a minimum, all of the following terms and conditions:

(1) A requirement that the Grantee or Borrower will submit a letter from the Oversight Agency approving the Cleanup Plan before any funds will be disbursed;

(2) A requirement that the first draw on the funds be made within twelve (12) months of the execution of the Infill Grant Agreement or Infill Loan Agreement;

(3) A requirement that all Remedial Work will be completed and Completion of the Infill Development Project within the term of the Infill Grant or Infill Loan, not to exceed six (6) years from the time of the first draw;

(4) A provision allowing the Strategic Partner to extend the term of the Infill Loan or Infill Grant by as much as two years as set forth in Section 8102.8;

(5) Disbursement and repayment procedures pursuant to Section 8102.7;

(6) A provision that any unused Infill Grant or Infill Loan funds shall revert to the Authority at the end of the term of the Infill Grant Agreement or Infill Loan Agreement;

(7) A certification by the Grantee or Borrower that the Infill Development Project meets the eligibility requirements of Section 8102.1(a) and a description of the Infill Development Project that conforms to Section 8102.2(f)(2).

(8) Agreement that upon Completion of the Infill Development Project the Grantee or Borrower will submit a Completed Infill Development Project Report.

(9) Agreement to comply with the Authority's program statutes and regulations;

(10) Agreement that the Grantee or Borrower is and will remain for the term of the Infill Loan or Infill Grant in compliance with all laws regulations and rules applicable to the project.

(11) Agreement that the Brownfield Infill Project and the Infill Development Project will comply with the California Environmental Quality Act (Public Resources Code Sections 21000, et seq.) and the State CEQA guidelines contained in Sections 15000, et seq. of Title 14 of the California Code of Regulations.

(12) Agreement that the funds of the Infill Loan or Infill Grant will be used only for Eligible Brownfield Infill Project Costs as defined in Section 8102(f).

(13) Agreement that the Grantee or Borrower will work with the Oversight Agency identified in the Infill Grant Agreement or Infill Loan Agreement.

(14) Certification that the Grantee or Borrower has and will maintain any and all required insurance policies for the term of the Infill Loan or Infill Grant.

(15) Agreement that the Grantee or Borrower will defend, indemnify and hold harmless the Authority and the State, and all officers, trustees, agents and employees of the same, from and against any and all claims, losses, costs, damages, or liabilities of any kind or nature, whether direct or indirect, arising from or relating to the Infill Grant or Infill Loan, the Brownfield Infill Project, the Infill Development Project or this program, including but not limited to, any and all claims, losses, costs, damages, or liabilities arising from or related to the presence, release, threatened release, investigation or remediation of Hazardous Material of the Brownfield Infill Project;

(16) Agreement to comply with laws outlawing discrimination including, but not limited to those prohibiting discrimination because of sex, race, color, ancestry, religion, creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer or genetic characteristics), sexual orientation, political affiliation, position in a labor dispute, age, marital status, and denial of statutorily-required employment-related leave;

(17) Agreement that continued compliance with program requirements is the responsibility of the Grantee or Borrower;

(18) Agreement that the Grantee or Borrower will timely provide all required reports and notices to the Strategic Partner during the term of the Infill Loan or Infill Grant and until Completion of the Infill Development Project;

(19) Agreement that the Grantee or Borrower will provide or cause to be provided to the Strategic Partner a copy of the Brownfield Remediation Final Report within 30 days of completion of the Brownfield Remediation Final Report;

(20) Agreement that, except as provided by Section 8102.6(a)(25)(F) and Section 8102.6(a)(26), Grantee or Borrower's failure to comply with any law, regulation or rule applicable to the Brownfield Infill Project and Infill Development Project, or failure to deliver any certification required by Section 8102.6 within the time period required, will constitute an event of default under the Infill Grant or Infill Loan Agreement.

(21) Agreement by the Grantee or Borrower to comply with all applicable laws, including but not limited to statutes, rules, regulations, administrative orders and agreements, and judicial orders or consent decrees that apply to the Brownfield Infill Project, related to or arising from assessment, characterization and remediation of a Brownfield, including but not limited to those requiring the preparation of a description of Hazardous Material on the Brownfield and those requiring oversight and supervision to assure the adequacy of any Feasibility Study, Remedial Investigation, Remedial Action Plan, or Remedial Work by the Oversight Agency.

(22) Agreement that upon being informed, or finding, that information supplied by the Grantee or Borrower, any person acting on behalf of the Grantee or Borrower, or any team member identified in the Infill Application, is false or no longer true, and the Grantee or Borrower has not notified the Authority or the Strategic Partner, the Authority may invoke the default provisions or false information provisions, as it deems appropriate.

(23) Agreement that upon a finding by the Strategic Partner or the Authority that the Borrower or Grantee has provided false material information to the Strategic Partner or Authority may result in any of the following:

(A) Acceleration of repayment of the Infill Loan;

(B) Conversion of the Infill Grant to an Infill Loan, and the possible accelerated repayment of the Infill Loan;

(C) A finding that the Borrower or Grantee is in default of its Infill Grant Agreement or Infill Loan Agreement and may be subject to the provisions of paragraph (a)(25);

(D) Notification of state and local entities of Grantee or Borrower's provision of false information; or

(E) The Borrower or Grantee being ineligible for future financing under the CALReUSE program.

(24) Provision that the Borrower or Grantee will be deemed in default of its Infill Grant Agreement or Loan Agreement under any of the following conditions:

(A) Failure of the Borrower or Grantee to comply with the terms of the Infill Loan Agreement or Infill Grant Agreement;

(B) Failure of the Borrower or Grantee to complete the Infill Development Project, as described in the Infill Grant Agreement or Infill Loan Agreement, within the term of the Infill Grant Agreement or Infill Loan Agreement, including any extensions; or

(25) Agreement that upon default, the Borrower(s) or Grantee(s) may be subject to one or more of the following:

(A) A requirement that the Borrower or Grantee repay the loan or grant plus 10% per annum becoming immediately due and payable;

(B) The Authority may inform other governmental agencies of the default;

(D) A requirement that the Borrower or Grantee make a one time payment of up to 25 percent of the Infill Loan or Infill Grant award; or

(E) The Authority may waive any default upon a finding that it is in the public interest and advances the purposes of the program.

(F) The immediate conversion of expended Infill Grant funds becoming subject to the terms of an Infill Loan pursuant to Section 8102.4 which may then be immediately due and payable.

(G) The Authority's seizure or un-encumbrance of any unexpected Infill Grant or Infill Loan Funds.

(26) A Provision that the Borrower or Grantee will have a reasonable opportunity to cure before the Borrower or Grantee is deemed in default.

(27) A provision binding the Grantee to make best efforts to collect from any Responsible Party and to convey any payments received to refund the Infill Grant.

(28) Agreement that under the circumstances that the Oversight Agency of the Brownfield Infill Project changes subsequent to the approval of a financial award, the Grantee or Borrower will notify the Strategic Partner and the Authority, and submit a revised Cleanup Plan prior to receiving any additional funding under the Infill Loan Agreement or Infill Grant Agreement.

(29) A requirement that the Borrower or Grantee enter into a Regulatory Agreement or Recorded Covenant with the Authority.

(30) Any other provisions agreed to by the parties.

NOTE

HISTORY

4. Certificate of Compliance as to 11-24-2008 order, including amendment of subsections (a)(3), (a)(20) and (a)(23)(A), new subsection (a)(23)(B), amendment of subsection (a)(25)(A), repealer of subsection (a)(25)(B), new subsections (a)(25)(F)-(G) and (a)(28)-(29) and subsection relettering and renumbering, transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8102.7. Conditions of Funds Disbursement, Funds Disbursement and Loan Repayment Procedures.

Note • History

(a) Conditions of Funds Disbursement. The Authority shall not disburse Infill Grant or Infill Loan funds unless all of the following conditions are met:

(1) All other funds for completing the Brownfield Infill Project are identified and committed for use;

(2) All terms and conditions contained in the commitment letter described in Section 8102.5(c) are satisfied;

(3) Execution of an Infill Loan Agreement, Infill Grant Agreement, promissory note and any other documents, as required, and compliance with all conditions precedent to disbursement contained in the Infill Grant Agreement or Infill Loan Agreement.

(b) Funds Disbursement. The Authority shall cause funds to be disbursed as follows:

(1) The Borrower or Grantee shall sign and submit to the Strategic Partner a signed invoice documenting the service or procedure performed from entities providing materials and services for Eligible Brownfield Infill Project Costs covered by the Infill Loan Agreement or Infill Grant Agreement.

(2) Upon receipt of the signed invoice, review and a determination of Eligible Brownfield Infill Project Costs, the Strategic Partner shall make a recommendation to the Authority regarding the funding of the disbursement request.

(3) The Authority will authorize the disbursement of Infill Loan or Infill Grant funds to the Applicant from the funds of the Authority committed by the Authority for the Infill Grant or Infill Loan.

(4) Disbursements shall be made no more frequently than once per calendar month.

(c) Loan Repayment Procedures. The Strategic Partner shall cause any Infill Loan repayment proceeds received from the Borrower to be delivered promptly upon receipt by the Strategic Partner to the following entities in the following order:

(1) First, to the Authority until the funds advanced by the Authority for the Infill Loan, including any accrued interest, are repaid in full, and

(2) Second, to the Strategic Partner to repay any loan to the Borrower by the Strategic Partner in connection with the Brownfield Infill Project, if applicable.

NOTE

HISTORY

3. New section refiled 11-24-2008 as an emergency, including amendment of subsections (a)(2) and (b)(3); operative 11-24-2008 (Register 2008, No. 48). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 2-23-2009 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 11-24-2008 order, including amendment of subsections (a), (b) and (b)(2), new subsection (b)(3) and subsection renumbering, transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8102.8. Infill Loan and Infill Grant Extensions.

Note • History

(a) Infill Loan or Infill Grant Extensions. Upon written request received from the Applicant, the term of an Infill Loan or Infill Grant may be extended by Executive Director of the Authority if both of the following conditions are met:

(1) The Applicant clearly demonstrates that it is unable to complete the Brownfield Infill Project or the Infill Development Project by the end of the Infill Loan or Infill Grant term, and

(2) The Applicant clearly demonstrates how the Brownfield Infill Project or Infill Development Project can be completed in the additional time requested.

(b) No Infill Loan or Infill Grant may be extended for more than two years except by the Authority which may grant additional extensions upon a finding that it is in the public interest and furthers the purposes of the program.

NOTE

HISTORY

4. Certificate of Compliance as to 11-24-2008 order, including amendment of subsection (a), transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8102.9. Strategic Partner Reports and Records Retention.

Note • History

(a) A Strategic Partner shall provide the following quarterly reports to the Authority: no later than the fifteenth day of April, July, October, and January for the quarters ending in March, June, September and December, respectively:

(1) Applications Received Report. This report shall include the following information:

(A) A listing of identified Brownfield Infill Projects for which Infill Applications have been submitted and for which funding is anticipated during the next six months;

(B) Identification of whether the proposed Brownfield Infill Project meets the various criteria outlined in Section 8102.1(a);

(D) Requested award amount and type;

(E) Description of the anticipated Infill Development Project, including the total number of housing units created, the number of affordable units and the depth and duration of affordability;

(F) Indication of whether the Brownfield Infill Project is located within an Economically Distressed Community;

(G) Anticipated timeline of completion of the Brownfield Infill Project;

(H) Anticipated timeline of completion of the Infill Development Project;

(I) Previous use of the Brownfield and known contaminants; and

(J) Applicant's identified Oversight Agency.

(2) Request for Funds Report. This report shall include the following information for each Brownfield Infill Project to be funded during the next three months:

(A) A description of the Brownfield Infill Project;

(B) Identification of whether the Brownfield Infill Project meets the various criteria and priorities outlined in Section 8102.1(a);

(D) Requested Infill Loan or Infill Grant amount for the Brownfield Infill Project;

(E) Description of Eligible Brownfield Infill Project Costs to be funded for the Brownfield Infill Project.

(F) Proposed Infill Loan or Infill Grant term.

(G) Identification of the combined total amount of Infill Grant or Infill Loan funds requested for the quarter.

(3) Brownfield Infill Projects Status Report. This report shall describe the current status of each Brownfield Infill Project for which an Infill Loan and/or Infill Grant (including an Infill Loan and/or Infill Grant for which the Strategic Partner is the Applicant) remains outstanding including:

(A) A description of activities performed at the Brownfield Infill Project for the previous three months.

(B) A statement of whether or not the Strategic Partner has received the Brownfield Remediation Final Report and, if so, a summary of the Brownfield Remediation Final Report that was received during the previous three months.

(4) Outstanding Infill Loans and Infill Grants Report. This report shall describe the current status of every Infill Loan and Infill Grant (including those where the Strategic Partner is the Borrower or Grantee) including:

(A) Name of the Borrower or Grantee;

(B) Whether the award is an Infill Grant or an Infill Loan;

(D) Whether the Borrower or Grantee is a Small Business;

(E) Identification of whether the Borrower or Grantee is a Strategic Partner;

(F) Name of Brownfield Infill Project;

(G) Street Address of the Brownfield;

(H) Draws on outstanding Infill Loans and Infill Grants;

(I) Current payments;

(J) Total Infill Loan repayment status;

(K) If the term of any Infill Loan or Infill Grant is extended:

(i) The date of the extension; and

(ii) The current Infill Loan or Infill Grant amount and term.

(5) Other reports and documents as reasonably requested by the Authority.

(b) Brownfield Infill Development Project Status Report. A Strategic Partner shall provide an annual report no later than February 1st of each year to the Authority that shall describe the current status of the development of each Brownfield Infill Project for which an Infill Loan or Infill Grant (including an Infill Loan or Infill Grant where the Strategic Partner is the Applicant) was made including:

(1) A description of the Infill Development Project, including, but not limited to the total number of residential units, densities, the number of affordable units and the depth and duration of the affordability.

(2) A detailed description of development activities performed at the Brownfield for the previous year.

(3) Upon completion of the Infill Development Project, a description of the final use for the property.

(c) Records Retention. A Strategic Partner shall retain the Application, all documents that were submitted by the Applicant with the Application, and all documents pertaining to the Infill Loan or Infill Grant and the Brownfield Infill Project for at least six years after the later of the termination of the Infill Loan or Infill Grant, or the completion of actions and the resolution of all issues, that arise as a result of any litigation, claim, negotiation or audit concerning the Infill Loan Agreement or Infill Grant Agreement executed pursuant to Section 8102.6. Upon completion of the six years, the Strategic Partner shall submit all documents to the Authority for record keeping.

NOTE

HISTORY

4. Certificate of Compliance as to 11-24-2008 order, including amendment of subsections (a), (a)(1)(G) and (c), transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8102.10. Allocation of Funds to Strategic Partners. [Repealed]

Note • History

NOTE

HISTORY

4. Certificate of Compliance as to 11-24-2008 order repealing section transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8102.11. Strategic Partner Eligibility and Selection Criteria.

Note • History

(a) A governmental agency or public or private entity acting alone or in combination with others, shall be eligible to participate as a Strategic Partner. Strategic Partners will be selected by the Authority based upon the following eligibility and selection criteria:

(1) Demonstrated ability to provide Technical Assistance to a Development Entity;

(2) Demonstrated understanding of the economic and real estate development processes specifically as applied to proposed Brownfield Infill Projects and Infill Development Projects;

(3) Demonstrated understanding of environmental assessment and remediation requirements;

(4) Demonstrated understanding of Brownfield regulatory and reporting requirements;

(5) Demonstrated experience in evaluating the economic viability of proposed Brownfield Infill Projects and Infill Development Projects; and

(6) Demonstrated partnership experience.

(b) The services to be provided by a Strategic Partner pursuant to Section 8090(af) hereof shall be provided as an independent contractor pursuant to a written agreement to be entered into by and between the Strategic Partner and the Authority. The Authority shall utilize the processes and statutes governed by state contracting law in its selection of Strategic Partner(s).

(c) An entity may not act as a Strategic Partner as to any Brownfield for which the entity is a responsible party as defined by Section 25323.5 of the California Health and Safety Code. However, as to any such Brownfield, the entity may be an Applicant, or Borrower, and the Authority shall be the Strategic Partner with respect to the Infill Application, Infill Loan.

(d) In addition to or in lieu of contracting with a Strategic Partner, the Authority may at any time elect to act as a Strategic Partner in providing all of the services set forth in Section 8090(af).

NOTE

HISTORY

4. Certificate of Compliance as to 11-24-2008 order, including amendment of subsections (a) and (b), transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8102.12. Strategic Partner as Applicant, Borrower, and/or Grantee.

Note • History

(a) Notwithstanding any decision to act as a Strategic Partner pursuant to Section 8102.11(d), the following shall apply in all cases where the Strategic Partner is the Applicant, Borrower or Grantee or in the event the Strategic Partner is unable to act relative to an Applicant due to a conflict of interest as defined in the Political Reform Act (Government Code Sections 81000 through 91014):

(1) The Authority shall be the Strategic Partner as to the Infill Application and Infill Grant or Infill Loan.

(2) If the Authority is the Strategic Partner, the Executive Director shall be authorized to:

(A) Determine whether the Applicant shall be eligible for an Infill Loan or Infill Grant pursuant to Section 8102.1.

(B) Review the Infill Application and notify the Applicant pursuant to Section 8102.3 and 8102.5.

(D) Cause funds to be disbursed to the Applicant pursuant to Section 8102.7.

(E) Determine whether an Infill Loan or Infill Grant shall be extended pursuant to Section 8102.8.

NOTE

HISTORY

4. Certificate of Compliance as to 11-24-2008 order transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8102.13. Technical Assistance.

Note • History

Upon request of an Applicant, Borrower, or Grantee the Strategic Partner may provide Technical Assistance to assist in the remediation of a Brownfield Infill Project. Technical Assistance costs charged by the Strategic Partner must be pre-approved by the Authority.

NOTE

HISTORY

4. Certificate of Compliance as to 11-24-2008 order, including amendment of section, transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8102.14. Scoring Criteria.

Note • History

All Infill Applications will be scored based upon the following criteria:

(a) Readiness to Proceed: maximum of 40 points.

(1) The Applicant has demonstrated that environmental review can be completed and all necessary entitlements can be received from the local jurisdictions within two years of receiving the award: 10 points.

(2) Excluding tax credit equity and tax exempts bonds, funding commitments are in place, or financing application are under review, for the Infill Development Project. (Partial points available equivalent to the percentage of funding committed or under review, e.g. 80% of funding under committed or under review =8 points): 10 points.

(3) The Infill Development Project has local community and government support: 10 points.

(4) Cleanup Plan has been approved by Oversight Agency: 5 points

(5) Applicant has necessary governmental permits in place, including but not limited to grading, encroachment, right of way, demolition, and air quality permits and excluding the building permit. (Partial points available, e.g. 80% of necessary permits under review =80% of 5 points.): 5 points

(b) Location within an Economically Distressed Community: 30 points

(1) At least 15% of the Infill Development Project's total housing units are comprised of either rental units made available to households earning no more than 50% of Area Median Income or for-sale units made available to households earning no more than 110% of Area Median Income: 5 points

(2) At least 15% of the Infill Development Project's total housing units are comprised of either rental units made available to households earning no more than 40% of Area Median Income or for-sale units made available to households earning no more than 100% of Area Median Income: 10 points

(d) Percentage of affordable units pursuant to Section 8102.4(b) or supportive housing pursuant to Section 8102.4(c): maximum of 15 points

(1) less than 30% but greater than 15 % of the total number of units: 5 points

(2) Equal to or more than 30% but less than 50% of the total number of units: 10 points

(3) Equal to or more than 50% of the total number of units: 15 points

(e) Utilization of Green Building Methods: 5 points

(1) LEED Certified: 5 Points

(2) Exceeding Title 24 Standards by 30 percent: 5 points

(3) A minimum of 60 GreenPoint Rating points: 5 points

(f) The Cleanup Plan for the Brownfield Infill Project does not require Ongoing Operation and Maintenance: 5 points

(g) In tie-breaker situations, applications will be prioritized based on their effective use of Infill Grant or Infill Loan dollars, measured by a ratio of the amount of the financial award requested pursuant to Section 8102.4(a) per Residential Housing unit created by the Infill Development Project. The highest number of housing units created per dollar of the requested financial award will be given priority.

NOTE

HISTORY

3. New section refiled 11-24-2008 as an emergency, including amendment of subsection (e)(1); operative 11-24-2008 (Register 2008, No. 48). Pursuant to Health and Safety Code section 44520(b), a Certificate of Compliance must be transmitted to OAL by 2-23-2009 or emergency language will be repealed by operation of law on the following day.

4. Certificate of Compliance as to 11-24-2008 order, including amendment of section, transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

§8102.15. Geographic Distribution Targets.

Note • History

The Brownfield remediation program has the following targets for geographical distribution of funds:

(a) Fresno, Kern, Kings, Madera, Merced, San Joaquin, Stanislaus and Tulare Counties -- ten percent (10%);

(b) Los Angeles, Imperial, Orange, Riverside, San Bernardino and San Diego Counties -- fifty-nine percent (59%);

NOTE

HISTORY

4. Certificate of Compliance as to 11-24-2008 order transmitted to OAL 1-7-2009 and filed 2-23-2009 (Register 2009, No. 9).

Article 10. Sustainable Communities Grant and Loan Program-Grants

§8110. Definitions.

Note • History

The following definitions shall govern construction of Article 10.

(a) “Alternative Funding Sources” means the Applicant's internal sources of funds typically used to fund projects similar to the Applicant's Project and other state, federal, local or private sources of funds that are be available for similar projects.

(b) “Applicant” means any county, city and county, or city applying for program funding. The Applicant may partner with a public entity including, but not limited to, a redevelopment agency or joint powers authority.

(d) “Authority” means the California Pollution Control Financing Authority, organized and existing under and by virtue of Division 27 (commencing with Section 44500) of the California Health and Safety Code.

(e) “Economically Distressed” means high unemployment levels, low-income levels, and/or high poverty.

(f) “Executive Director” means the Executive Director of the California Pollution Control Financing Authority.

(g) “Eligible Costs” means reasonable and necessary Project costs that may include, but not be limited to, costs associated with any of the following:

(1) The planning and implementation processes for programs, plans (e.g., general plans, or portions thereof; specific plans, or portions thereof; alternative transportation studies; finance plans; redevelopment plans; engineering studies; the hiring of consultants to assist in the planning process; or similar type expenses).

(2) Costs associated with funding projects such as a community center, park enhancements, or infrastructure improvements that are key elements of a comprehensive community or neighborhood sustainable development project.

(3) Costs associated with facilitating public involvement (e.g., public hearings, information meetings, or similar type activities) related to developing policies, programs and projects.

(4) Costs associated with hiring technical experts to identify, assess, and complete applications for state, federal and private economic assistance programs that fund sustainable development and sound environmental policies and programs.

(5) Travel, telephone, postage and similar administrative expenses directly related to the project.

(6) Staff time (including staff training expenses) directly related to the Project.

(h) “First Priority” means Applicants that establish a case that there exists a Lack of Resources to complete their Projects.

(i) “Grant” means a grant made in accordance with the procedures set forth in this Article 10.

(j) “Grantee” means an Applicant whose Grant has been approved and has executed a Grant Agreement.

(k) “Grant Agreement” means a written agreement for a Grant entered into between a Grantee and the Authority.

(l) “Ineligible Cost” means funds for expenses associated with:

(1) Work completed prior to Grant funding.

(2) Replacement of otherwise existing sources of funding for existing staff positions.

(m) “Infill Development” means development or redevelopment of unused, underutilized, or existing properties within established urban and/or rural neighborhoods or communities, where those neighborhoods or communities are already served with streets, water, sewer and other public services.

(n) “Lack of Resources” means that Alternative Funding Sources are unavailable to fund all, or a portion, of the Project for which program funds are being sought as demonstrated by an Applicant pursuant to section 8112(d)(2) hereof.

(o) “Outside Reviewer” means an individual that meets all of the following requirements:

(1) Does not have any direct or beneficial interest in real property located in any Project Area(s) included in an Application;

(2) Is not the owner or employee of, the holder of a management position in, or in receipt of or in expectation of the receipt of income from any entity located, or otherwise having any business or property interest in any Project Ares(s) included in an Application;

(3) Does not accept, or agree to accept, any payment that is in any way contingent upon the outcome of a report, evaluation, assessment, analysis, or award of a Grant or Loan in connection with an Application.

(p) “Project” means the Applicant's proposal for one or more of the following:

(1) Developing and implementing policies, programs and projects that reduce pollution hazards and the degradation of the environment within existing neighborhoods/communities;

(2) Assisting one or more California neighborhoods that are Economically Distressed;

(3) Promoting Infill Development.

(q) “Project Area” means a defined geographical area for which an Applicant proposes a Project or which the Applicant demonstrates will benefit from the Project.

(r) “Project Period” means a defined beginning and end date for implementation of the Project by which time all program funds must be expended.

(s) “Sustainable Development” means a Project that meets one or more of the following objectives:

(1) Develops and implements growth policies, programs and projects that reduce pollution hazards and the degradation of the environment;

(2) Promotes Infill Development;

(3) Promotes economic development within Economically Distressed communities;

(4) Promotes land use and policies, programs and projects that support alternative transportation options;

(5) Ensures a proper mix of business and housing, including affordable housing, in communities and neighborhoods;

(6) Balances job growth with new housing;

(7) Encourages communities centered around civic spaces;

(8) Ensures more efficient, well-planned higher density use of land; and

(9) Protects environmental resources.

NOTE

Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 44501, 44502, 44526(g) and 44526(i), Health and Safety Code.

HISTORY

1. New article 10 (sections 8110-8117) and section filed 5-13-2002 as an emergency; operative 5-13-2002 (Register 2002, No. 20). A Certificate of Compliance must be transmitted to OAL by 9-10-2002 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 5-13-2002 order transmitted to OAL 7-31-2002 and filed 9-12-2002 (Register 2002, No. 37).

§8111. Funding Eligibility.

Note • History

(a) An Applicant may be eligible to receive funding when the Authority determines that:

(1) The Applicant has submitted an Application that meets the requirements of Section 8112.

(2) The Applicant proposes a Project;

(3) The funds are requested to finance Eligible Costs associated with a Project;

(4) The Applicant demonstrates the ability to gather likely sources of capital to complete the Project.

(5) The Applicant receives a minimum passing score as set forth in section 8113(d) hereof.

(b) Applicants may submit only one Application for program funds.

NOTE

Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 44501, 44502, 44526(g) and 44526(i), Health and Safety Code.

HISTORY

1. New section filed 5-13-2002 as an emergency; operative 5-13-2002 (Register 2002, No. 20). A Certificate of Compliance must be transmitted to OAL by 9-10-2002 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 5-13-2002 order transmitted to OAL 7-31-2002 and filed 9-12-2002 (Register 2002, No. 37).

§8112. Project Application Content.

Note • History

The Application shall include all of the following information:

(a) An Application checklist that generally describes the type and order of information that must be provided to ensure that the Applicant submits a complete Application package.

(b) An Application cover sheet with:

(1) The Project name;

(2) Applicant information including (a) Applicant name(s), address(es), telephone numbers and (b) contact person name, title and telephone numbers;

(3) Project location information including city, county, zip code and Project Area descriptions including Project site address(es), if applicable;

(4) Funding information including requested funding amount, type of funding requested (i.e., Grant and/or Loan), other non-program funding amount(s) and total cost of Project; and

(5) Applicant certification that declares under the penalty of perjury that the information contained in the Application, exhibits, and attachments is true and correct to the best of Applicant's knowledge and belief and that Applicant understands that misrepresentation may result in the cancellation of the approved funding, and other actions, which the Authority may take.

(6) A statement that the Authority reserves the right to request additional information for its review.

(c) A Project description that includes (a) a description of the Project's expected outcomes and benefits and (b) cross-references to any supporting documentation, such as plans, pictures, drawings or other relevant information, included with the Application.

(d) An eligibility and funding priority worksheet that:

(1) Includes a description of which eligibility criteria the Project meets and how the Project qualifies under the criteria described in section 8110(p) hereof; and

(2) Includes a description of whether there exists a Lack of Resources to develop and implement sustainable development and other sound environmental policies, programs and projects. In order to receive funding priority, Applicants must make a case as to the reason(s) that Alternative Funding Sources are not available, or are insufficient, for the Project by describing:

(A) any Alternative Funding Sources that may ordinarily be available for the Project and the actions that have been taken to access such Alternative Funding Sources for the Project and

(B) why Alternative Funding Sources are unavailable or are insufficient for the Project.

(e) Project evaluation information with supporting documentation that:

(1) Describes how the Project promotes one or more Sustainable Development objectives (75 points).

(2) Describes how the Project promotes economic development within Economically Distressed communities (30 points) including:

(A) whether the project creates, or assists in creating employment for existing residents;

(B) whether the project improves the infrastructure and or the quality of life of the community/neighborhood to enhance its economic competitiveness;

(C) whether the project builds on or establishes relationships with local employment and training entities (e.g. One Stop Career Center, Pilot Regional Collaborative under the Regional Workforce Preparation and Economic Development Act, Workforce Investment Board, the Employment Development Department, and others) to link local job seekers with employment opportunities.

(3) Describes how the Project incorporates creative approaches (15 points) including:

(A) whether the Project provides a creative solution to an existing or a projected problem or demonstrates a new or innovative approach to planning and/or implementation;

(B) whether the Project involves multiple jurisdictions (more than one county or city, or federal, state, regional, or local government); and

(4) Describes the likelihood that the Project's expected outcomes will be implemented (15 points) including:

(A) Identification and discussion of the financial feasibility, the practicality, the timing and the probability of implementing the Project's expected outcomes (e.g., the plan, idea or strategy being advanced by the Project); and

(B) Identification of community support for the Project's expected outcomes. This may include letters of support from community interests and co-sponsors that specifically reference community needs and the expected impacts of the Project. It may also include news articles, petitions, and any other representative information.

(5) A description of how the Project demonstrates applicability to other communities by identifying the applicability and transferability of the proposed Project elements to other communities (15 points).

(f) Project budget sheet that identifies all Eligible Costs and Ineligible Costs for the proposed Project including:

(1) Identifying the cost category;

(2) A description of the activities associated with the cost;

(3) Indication of whether the cost will be paid from program funding and/or Alternative Funding Sources;

(4) Indication of total cost(s) for that category.

(g) A detailed Project timeline for implementing and completing the proposed Project. The timeline should identify the activities, benchmarks, and products to be produced.

(h) Complete resumes of all staff and/or consultants who will be involved in implementing the Project described in the Application.

(i) Supporting Project documentation (maps, surveys, reports, etc.).

NOTE

Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 44501, 44502, 44526(g) and 44526(i), Health and Safety Code.

HISTORY

2. Certificate of Compliance as to 5-13-2002 order transmitted to OAL 7-31-2002 and filed 9-12-2002 (Register 2002, No. 37).

§8113. Application Availability and Submission, Project Selection Process and Project Evaluation Process.

Note • History

(a) Application Availability. The Application shall contain the information set forth in Section 8112.

(b) Application Submission. Applications must be submitted in duplicate to the Authority by the application deadlines published by the Authority. The first Application deadline shall occur in June 2002; thereafter, Application deadlines shall occur at least on a semi-annual basis until program funding is exhausted.

(1) First determine if the Application meets the First Priority for funding.

(2) Next screen applications that meet the First Priority threshold to determine:

(A) Applicant eligibility, and

(B) Project eligibility.

(3) Evaluate and rank on a competitive basis Applications designated First Priority per the criteria in section (d) hereof. Authority staff may include additional Outside Reviewers to assist with scoring Applications.

(4) Screen and evaluate Applications not designated as First Priority as follows:

(A) After Applications that satisfy the First Priority designation are evaluated and ranked per subsection (c)(3) hereof and

(B) If Authority staff's funding recommendations to the Authority board for First Priority Applicants do not exceed the maximum funding availability for the program. If additional funding is available, the remaining Applications will be screened to determine Applicant and Project eligibility and will be evaluated as described in subsection (c)(3) above.

(d) Project Evaluation Process. Authority staff shall evaluate and score Applications on a competitive basis. Each Application will be evaluated based on how well the project:

(1) Demonstrates Sustainable Development-75 points (50% of Score);

(2) Contributes to economical development within Economically Distressed communities-30 points (20% of Score);

(3) Incorporates creative approaches-15 points (10% of Score);

(4) Demonstrates likelihood that the Project's expected outcome(s) will be implemented-15 points (10% of Score); and

(5) Demonstrates applicability to other communities-15 points (10% of Score).

Projects must receive a minimum score of 70% (i.e., receive at least 105 of 150 points) to receive funding. Those Projects that receive a score of less than 70% will be ineligible to receive any funding.

(e) All Applications that receive a minimum score of 70% as evaluated by Authority staff shall be submitted to the Executive Director who will determine which Projects to recommend to the Authority for funding based on the Authority staff's evaluation. The Executive Director shall notify the Applicant by fax that either:

(1) The Applicant's Project will be recommended for grant funding to the Authority; or

(2) The Applicant's Project will not be recommended for grant funding to the Authority.

(f) The Authority staff may invite Outside Reviewers to review, evaluate and score Applications pursuant to this section. To the extent Outside Reviewers are utilized, no fewer than two Outside Reviewers will review any one Application.

NOTE

Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 44501, 44502, 44526(g) and 44526(i), Health and Safety Code.

HISTORY

2. Certificate of Compliance as to 5-13-2002 order transmitted to OAL 7-31-2002 and filed 9-12-2002 (Register 2002, No. 37).

§8114. Authority Approval and Commitment Letter.

Note • History

(a) Authority Approval. No later than ninety (90) days following receipt of an Application, the Executive Director will determine which Projects to recommend to the Authority for grant funding pursuant to section 8113(e) hereof. The Authority shall make the final determination as to which Applications will receive program funding. The Authority shall notify each Applicant whether or not its Application has been approved for funding.

(b) Commitment Letter. If funding is approved, the Authority shall notify the Applicant by a letter committing the Authority to provide Grant funds so long as the Applicant strictly complies with the terms and conditions contained therein. The commitment letter shall include all of the following:

(1) Name(s) of the Grantee.

(2) Grant amount and term.

(3) A description of Eligible Costs to be financed.

(5) Disbursement process, including a statement that proceeds shall be disbursed on a reimbursement basis.

(6) Conditions and covenants.

(7) The date when the commitment expires.

(8) Such other items as may relate specifically to a Project and/or Applicant.

(9) A statement that the Authority reserves the right to modify or cancel the commitment upon failure of the Applicant to execute a Grant Agreement that includes all of the terms and conditions set forth in the commitment letter, or if the Authority becomes aware of any matter which, if known at the time of Application review or approval, would have resulted in the Application not being approved.

NOTE

Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 44501, 44502, 44526(g) and 44526(i), Health and Safety Code.

HISTORY

2. Certificate of Compliance as to 5-13-2002 order transmitted to OAL 7-31-2002 and filed 9-12-2002 (Register 2002, No. 37).

§8115. Grant Agreements.

Note • History

The terms and conditions of a Grant shall be set forth in a Grant Agreement executed by the Borrower and shall include all of the following terms and conditions:

(a) A Grant amount not greater than three hundred fifty thousand dollars ($350,000) for Eligible Costs with respect to a Project;

(b) A Grant disbursement period not to exceed thirty-six (36) months from the execution date of the Grant Agreement;

(d) A provision that any unused Grant funds shall revert to the Authority;

(e) Agreement to comply with the Authority's program statutes and regulations;

(f) Agreement that the Grantee will defend, indemnify and hold harmless the Authority and the State, and all officers, trustees, agents and employees of the same, from and against any and all claims, losses, costs, damages, or liabilities of any kind or nature, whether direct or indirect, arising from or relating to the Grant, the Project or this program;

(g) Agreement to comply with laws outlawing discrimination including, but not limited to those prohibiting discrimination because of sex, race, color, ancestry, religion, creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer or genetic characteristics), sexual orientation, political affiliation, position in a labor dispute, age, marital status, and denial of statutorily-required employment-related leave;

(h) Agreement that continued compliance with program requirements is the Grantee's responsibility;

(i) Agreement that the Grant shall only be used for Eligible Costs as described in the Grantee's Application;

(j) Any other provision agreed to by the parties.

NOTE

Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 44501, 44502, 44526(g) and 44526(i), Health and Safety Code.

HISTORY

2. Certificate of Compliance as to 5-13-2002 order transmitted to OAL 7-31-2002 and filed 9-12-2002 (Register 2002, No. 37).

§8116. Conditions of Funds Disbursement, Funds Disbursement.

Note • History

(a) Conditions of Funds Disbursement. The Authority shall not disburse funds unless the Applicant has executed a Grant Agreement and any other documents, as required to verify to the satisfaction of the Authority any information asserted in the Applicant's Application, and is in compliance with all conditions precedent to disbursement contained in the aforementioned agreement.

(b) Funds Disbursement. The Authority shall cause funds to be disbursed as follows:

(1) For Eligible Costs covered by the Grant Agreement, the Grantee shall sign and submit to the Authority either:

(a) a signed invoice documenting the service or procedure performed from entities providing materials and services, or

(b) documentation of pending expenditure to receive funds on a prospective basis

(2) Upon receipt of the documentation described in subsection (b)(1) hereof, the Authority, in its sole discretion, shall authorize the disbursement of funds to the Grantee.

NOTE

Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 44501, 44502, 44526(g) and 44526(i), Health and Safety Code.

HISTORY

2. Certificate of Compliance as to 5-13-2002 order transmitted to OAL 7-31-2002 and filed 9-12-2002 (Register 2002, No. 37).

§8117. Reports, Certificate of Completion and Records Retention.

Note • History

(a) Reports. A Grantee shall provide quarterly status reports to the Authority that shall include:

(1) A description of activities performed for the Project for the previous three months;

(2) An estimated time schedule for completion of the Project;

(3) A description of remaining work to be completed for the Project; and

(4) A description of whether the Project is meeting the proposed budget and if not the reasons for any differences and what actions will be taken to insure that the Project will be completed.

(b) Certificate of Completion. Upon completion of the Project, a Grantee shall certify to the Authority that the Project is complete and provide a final report that describes the result(s) of the Project.

(c) Records Retention. Recipients shall retain all program and financial data necessary to substantiate the purposes for which the funds were spent for a period of three years after the certification of completion of the project has been submitted. Recipients shall provide supporting documentation (e.g. progress reports, project work plan, program budget, receipts, etc.) upon request to the Authority staff.

NOTE

Authority cited: Section 44520(a), Health and Safety Code. Reference: Sections 44501, 44502, 44526(g) and 44526(i), Health and Safety Code.

HISTORY

2. Certificate of Compliance as to 5-13-2002 order transmitted to OAL 7-31-2002 and filed 9-12-2002 (Register 2002, No. 37).

Article 11. Sustainable Communities Grant and Loan Program-Loans

§8118. Definitions.

Note • History

The following definitions shall govern construction of Article 11.

(e) “Borrower” means an Applicant whose Loan has been approved and who has executed a Loan Agreement.

(f) “Economically Distressed” means high unemployment levels, low-income levels, and/or high poverty.

(g) “Executive Director” means the Executive Director of the California Pollution Control Financing Authority.

(h) “Eligible Costs” means reasonable and necessary Project costs that may include, but not be limited to, costs associated with any of the following:

(3) Costs associated with facilitating public involvement (e.g., public hearings, information meetings, or similar type activities) related to developing policies, programs and projects.

(5) Travel, telephone, postage and similar administrative expenses directly related to the project.

(6) Staff time (including staff training expenses) directly related to the Project.

(i) “First Priority” means Applicants that establish a case that there exists a Lack of Resources to complete their Projects.

(j) “Ineligible Cost” means funds for expenses associated with:

(1) Work completed prior to loan funding.

(2) Replacement of otherwise existing sources of funding for existing staff positions.

(k) “Infill Development” means development or redevelopment of unused, underutilized, or existing properties within established urban and/or rural neighborhoods or communities, where those neighborhoods or communities are already served with streets, water, sewer and other public services.

(l) “Lack of Resources” means that Alternative Funding Sources are unavailable to fund all, or a portion, of the Project for which program funds are being sought as demonstrated by an Applicant pursuant to section 8120(d)(2) hereof.

(m) “Loan” means a loan made in accordance with the procedures set forth in this Article 11.

(n) “Loan Agreement” means a written agreement for a Loan entered into between a Borrower and the Authority.

(o) “Outside Reviewer” means an individual that meets all of the following requirements:

(1) Does not have any direct or beneficial interest in real property located in any Project Area(s) included in an Application

(p) “Project” means the Applicant's proposal for one or more of the following:

(1) Developing and implementing policies, programs and projects that reduce pollution hazards and the degradation of the environment within existing neighborhoods/communities;

(2) Assisting one or more California neighborhoods that are Economically Distressed;

(3) Promoting Infill Development.

(q) “Project Area” means a defined geographical area for which an Applicant proposes a Project or which the Applicant demonstrates will benefit from the Project.

(r) “Project Period” means a defined beginning and end date for implementation of the Project by which time all program funds must be expended.

(s) “Sustainable Development” means a Project that meets one or more of the following objectives:

(1) Develops and implements growth policies and programs that reduce pollution hazards and the degradation of the environment;

(2) Promotes Infill Development to revitalize communities;

(3) Promotes economic development within Economically Distressed communities;

(4) Promotes land use policies, programs and projects that support alternative transportation options;

(5) Ensures a proper mix of business and housing, including affordable housing, in communities and neighborhoods;

(6) Balances job growth with new housing;

(7) Encourages communities centered around civic spaces;

(8) Ensures more efficient, well-planned higher density use of land; and

(9) Protects environmental resources.

NOTE

Authority cited: Sections 44520(a) and 44520(c), Health and Safety Code. Reference: Sections 44501, 44502, 44526(g) and 44526(i), Health and Safety Code.

HISTORY

1. New article 11 (sections 8118-8125) and section filed 5-13-2002 as an emergency; operative 5-13-2002 (Register 2002, No. 20). A Certificate of Compliance must be transmitted to OAL by 11-12-2002 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 5-13-2002 order transmitted to OAL 7-31-2002 and filed 9-12-2002 (Register 2002, No. 37).

§8119. Funding Eligibility.

Note • History

(a) An Applicant may be eligible to receive funding when the Authority determines that:

(1) The Applicant has submitted an Application that meets the requirements of Section 8120.

(2) The Applicant proposes a Project;

(3) The funds are requested to finance Eligible Costs associated with a Project;

(4) The Applicant demonstrates the ability to gather likely sources of capital to complete the Project.

(5) The Applicant receives a minimum passing score as set forth in section 8121 hereof.

(b) Applicants may submit only one Application for program funds.

NOTE

Authority cited: Sections 44520(a) and 44520(c), Health and Safety Code. Reference: Sections 44501, 44502, 44526(g) and 44526(i), Health and Safety Code.

HISTORY

1. New section filed 5-13-2002 as an emergency; operative 5-13-2002 (Register 2002, No. 20). Pursuant to Health and Safety Code section 44520(c) a Certificate of Compliance must be transmitted to OAL by 11-12-2002 or emergency language will be repealed by operation of law on the following day.

2. Editorial correction adding inadvertently omitted History 1 (Register 2002, No. 37).

3. Certificate of Compliance as to 5-13-2002 order transmitted to OAL 7-31-2002 and filed 9-12-2002 (Register 2002, No. 37).

§8120. Project Application Content.

Note • History

The Application shall include all of the following information:

(a) An Application checklist that generally describes the type and order of information that must be provided to ensure that the Applicant submits a complete Application package.

(b) An Application cover sheet with:

(1) The Project name;

(2) Applicant information including (a) Applicant name, address, telephone numbers and (b) contact person name, title and telephone numbers;

(3) Project location information including city, county, zip code, Project Area descriptions and Project site address(es), if applicable;

(4) Funding information including requested funding amount, type of funding requested (i.e., Grant and/or Loan), other non-program funding amount(s) and total cost of Project; and

(6) A statement that the Authority reserves the right to request additional information for its review.

(d) An eligibility and funding priority worksheet that:

(1) Includes a description of which eligibilty criteria the Project meets and how the Project qualifies under the criteria described in section 8118(p) hereof; and