BILL NUMBER: AB 640	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 19, 2014
	AMENDED IN SENATE  AUGUST 28, 2013
	AMENDED IN SENATE  AUGUST 27, 2013
	AMENDED IN SENATE  JULY 3, 2013
	AMENDED IN SENATE  JUNE 20, 2013
	AMENDED IN ASSEMBLY  MARCH 19, 2013

INTRODUCED BY   Assembly Member Hall

                        FEBRUARY 20, 2013

    An act to add Section 6720 to the Labor Code, relating to
employment, and declaring the urgency thereof, to take effect
immediately.   An act to amend Section 69432.7 of the
Education Code, relating to student financial aid. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 640, as amended, Hall.  Occupational safety and health:
adult films.   Cal Grant Program: renewal awards. 

   The Cal Grant Program establishes the Cal Grant A and B
Entitlement awards, the California Community College Transfer
Entitlement awards, the Competitive Cal Grant A and B awards, the Cal
Grant C awards, and the Cal Grant T awards under the administration
of the Student Aid Commission, and establishes eligibility
requirements for awards under these programs for participating
students attending qualifying institutions.  
   Existing law requires the commission to certify by October 1 of
each year a qualifying institution's latest 3-year cohort default
rate and graduation rate as most recently reported by the United
States Department of Education. Existing law provides that, for
purposes of the 2012-13 academic year, and every academic year
thereafter, an otherwise qualifying institution with a 3-year cohort
default rate that is equal to or greater than 15.5% is ineligible for
initial and renewal Cal Grant awards at the institution. Existing
law provides that an otherwise qualifying institution is ineligible
for an initial or renewal Cal Grant award at the institution if the
institution has a graduation rate of 30% or less for students taking
150% or less of the expected time to complete degree requirements, as
specified, with certain exceptions.  
   This bill would require the commission to establish an appeal
process for an otherwise qualifying institution that fails to satisfy
the 3-year cohort default rate and graduation rate requirements, and
would make nonsubstantive and conforming changes.  
   The California Occupational Safety and Health Act of 1973
establishes certain safety and other responsibilities of employers
and employees. Violations of the act under certain circumstances are
a crime.  
   This bill would require an employer engaged in the production of
an adult film to adopt prescribed practices and procedures to protect
employees from exposure to, and infection by, sexually transmitted
diseases, including engineering and work practice controls, an
exposure control plan, hepatitis B vaccinations, medical monitoring,
and information and training on health and safety. The bill would
define terms for those purposes. Because a violation of the act would
be a crime under certain circumstances, the bill would impose a
state-mandated local program by creating a new crime. 

   This bill would provide that its provisions are severable.
 
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason.  
   This bill would declare that it is to take effect immediately as
an urgency statute. 
   Vote:  2/3  majority  . Appropriation:
no. Fiscal committee: yes. State-mandated local program:  yes
  no  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 69432.7 of the  
Education Code   is amended to read: 
   69432.7.  As used in this chapter, the following terms have the
following meanings:
   (a) An "academic year" is July 1 to June 30, inclusive. The
starting date of a session shall determine the academic year in which
it is included.
   (b) "Access costs" means living expenses and expenses for
transportation, supplies, and books.
   (c) "Award year" means one academic year, or the equivalent, of
attendance at a qualifying institution.
   (d) "College grade point average" and "community college grade
point average" mean a grade point average calculated on the basis of
all college work completed, except for nontransferable units and
courses not counted in the computation for admission to a California
public institution of higher education that grants a baccalaureate
degree.
   (e) "Commission" means the Student Aid Commission.
   (f) "Enrollment status" means part- or full-time status.
   (1) "Part time," for purposes of Cal Grant eligibility, means 6 to
11 semester units, inclusive, or the equivalent.
   (2) "Full time," for purposes of Cal Grant eligibility, means 12
or more semester units or the equivalent.
   (g) "Expected family contribution," with respect to an applicant,
shall be determined using the federal methodology pursuant to
subdivision (a) of Section 69506 (as established by Title IV of the
federal Higher Education Act of 1965, as amended (20 U.S.C. Sec. 1070
et seq.)) and applicable rules and regulations adopted by the
commission.
   (h) "High school grade point average" means a grade point average
calculated on a 4.0 scale, using all academic coursework, for the
sophomore year, the summer following the sophomore year, the junior
year, and the summer following the junior year, excluding physical
education, reserve officer training corps (ROTC), and remedial
courses, and computed pursuant to regulations of the commission.
However, for high school graduates who apply after their senior year,
"high school grade point average" includes senior year coursework.
   (i) "Instructional program of not less than one academic year"
means a program of study that results in the award of an associate or
baccalaureate degree or certificate requiring at least 24 semester
units or the equivalent, or that results in eligibility for transfer
from a community college to a baccalaureate degree program.
   (j) "Instructional program of not less than two academic years"
means a program of study that results in the award of an associate or
baccalaureate degree requiring at least 48 semester units or the
equivalent, or that results in eligibility for transfer from a
community college to a baccalaureate degree program.
   (k) "Maximum household income and asset levels" means the
applicable household income and household asset levels for
participants, including new applicants and renewing recipients, in
the Cal Grant Program, as defined and adopted in regulations by the
commission for the 2001-02 academic year, which shall be set pursuant
to the following income and asset ceiling amounts:
         CAL GRANT PROGRAM INCOME CEILINGS


+--------------------+--------------+--------------+
|                        Cal Grant                 |
|                           A,                     |
|                        C, and T      Cal Grant B |
+--------------------+--------------+--------------+
|Dependent and Independent students with           |
|dependents*                                       |
+--------------------+--------------+--------------+
|Family Size                                       |
+--------------------+--------------+--------------+
|  Six or more             $74,100        $40,700  |
+--------------------+--------------+--------------+
|  Five                    $68,700        $37,700  |
+--------------------+--------------+--------------+
|  Four                    $64,100        $33,700  |
+--------------------+--------------+--------------+
|  Three                   $59,000        $30,300  |
+--------------------+--------------+--------------+
|  Two                     $57,600        $26,900  |
+--------------------+--------------+--------------+
|Independent                                       |
+--------------------+--------------+--------------+
|  Single, no              $23,500        $23,500  |
|dependents                                        |
+--------------------+--------------+--------------+
|  Married                 $26,900        $26,900  |
+--------------------+--------------+--------------+


   *Applies to independent students with dependents other than a
spouse.
          CAL GRANT PROGRAM ASSET CEILINGS


+----------------------+-------------+-------------+
|                         Cal Grant                |
|                             A,                   |
|                          C, and T    Cal Grant B |
+----------------------+-------------+-------------+
|Dependent**                $49,600       $49,600  |
+----------------------+-------------+-------------+
|Independent                $23,600       $23,600  |
+----------------------+-------------+-------------+


   **Applies to independent students with dependents other than a
spouse.


   The commission shall annually adjust the maximum household income
and asset levels based on the percentage change in the cost of living
within the meaning of paragraph (1) of subdivision (e) of Section 8
of Article XIII B of the California Constitution. The maximum
household income and asset levels applicable to a renewing recipient
shall be the greater of the adjusted maximum household income and
asset levels or the maximum household income and asset levels at the
time of the renewing recipient's initial Cal Grant award. For a
recipient who was initially awarded a Cal Grant for an academic year
before the 2011-12 academic year, the maximum household income and
asset levels shall be the greater of the adjusted maximum household
income and asset levels or the 2010-11 academic year maximum
household income and asset levels. An applicant or renewal recipient
who qualifies to be considered under the simplified needs test
established by federal law for student assistance shall be presumed
to meet the asset level test under this section. Prior to disbursing
any Cal Grant funds, a qualifying institution shall be obligated,
under the terms of its institutional participation agreement with the
commission, to resolve any conflicts that may exist in the data the
institution possesses relating to that individual.
   (  l  ) (1) "Qualifying institution" means an institution
that complies with paragraphs (2) and (3) and is any of the
following:
   (A) A California private or independent postsecondary educational
institution that participates in the  federal  Pell Grant
Program and in at least two of the following federal campus-based
student aid programs:
   (i) Federal Work-Study.
   (ii) Perkins Loan Program.
   (iii)  Federal  Supplemental Educational Opportunity
Grant Program.
   (B) A nonprofit institution headquartered and operating in
California that certifies to the commission that 10 percent of the
institution's operating budget, as demonstrated in an audited
financial statement, is expended for purposes of institutionally
funded student financial aid in the form of grants, that demonstrates
to the commission that it has the administrative capacity to
administer the funds, that is accredited by the Western Association
of Schools and Colleges, and that meets any other state-required
criteria adopted by regulation by the commission in consultation with
the Department of Finance. A regionally accredited institution that
was deemed qualified by the commission to participate in the Cal
Grant Program for the 2000-01 academic year shall retain its
eligibility as long as it maintains its existing accreditation
status.
   (C) A California public postsecondary educational institution.
   (2) (A) The institution shall provide information on where to
access California license examination passage rates for the most
recent available year from graduates of its undergraduate programs
leading to employment for which passage of a California licensing
examination is required, if that data is electronically available
through the Internet Web site of a California licensing or regulatory
agency. For purposes of this paragraph, "provide" may exclusively
include placement of an Internet Web site address labeled as an
access point for the data on the passage rates of recent program
graduates on the Internet Web site where enrollment information is
also located, on an Internet Web site that provides centralized
admissions information for postsecondary educational systems with
multiple campuses, or on applications for enrollment or other program
information distributed to prospective students.
   (B) The institution shall be responsible for certifying to the
commission compliance with the requirements of subparagraph (A).
   (3) (A) The commission shall certify by October 1 of each year the
institution's latest three-year cohort default rate and graduation
rate as most recently reported by the United States Department of
Education.
   (B) For purposes of the 2011-12 academic year, an otherwise
qualifying institution with a three-year cohort default rate reported
by the United States Department of Education that is equal to or
greater than 24.6 percent shall be ineligible for initial and renewal
Cal Grant awards at the  institution, except as provided in
subparagraph (F).   institutio   n. 
   (C) For purposes of the 2012-13 academic year, and every academic
year thereafter, an otherwise qualifying institution with a
three-year cohort default rate that is equal to or greater than 15.5
percent, as certified by the commission on October 1, 2011, and every
year thereafter, shall be ineligible for initial and renewal Cal
Grant awards at the  institution, except as provided in
subparagraph (F).   institution. 
   (D) (i) An otherwise qualifying institution that becomes
ineligible under this paragraph for initial and renewal Cal Grant
awards shall regain its eligibility for the academic year for which
it satisfies the requirements established in subparagraph (B), (C),
or  (G)   (F)  , as applicable.
   (ii) If the United States Department of Education corrects or
revises an institution's three-year cohort default rate or graduation
rate that originally failed to satisfy the requirements established
in subparagraph (B), (C), or  (G)   (F)  ,
as applicable, and the correction or revision results in the
institution's three-year cohort default rate or graduation rate
satisfying those requirements, that institution shall immediately
regain its eligibility for the academic year to which the corrected
or revised three-year cohort default rate or graduation rate would
have been applied.
   (E) An otherwise qualifying institution for which no three-year
cohort default rate or graduation rate has been reported by the
United States Department of Education shall be provisionally eligible
to participate in the Cal Grant Program until a three-year cohort
default rate or graduation rate has been reported for the institution
by the United States Department of Education. 
   (F) (i) An institution that is ineligible for initial and renewal
Cal Grant awards at the institution under subparagraph (B), (C), or
(G) shall be eligible for renewal Cal Grant awards for recipients who
were enrolled in the ineligible institution during the academic year
before the academic year for which the institution is ineligible and
who choose to renew their Cal Grant awards to attend the ineligible
institution. Cal Grant awards subject to this subparagraph shall be
reduced as follows:  
   (I) The maximum Cal Grant A and B awards specified in the annual
Budget Act shall be reduced by 20 percent.  
   (II) The reductions specified in this subparagraph shall not
impact access costs as specified in subdivision (b) of Section 69435.
 
   (ii) This subparagraph shall become inoperative on July 1, 2013.
 
   (G) 
    (F)  For purposes of the 2012-13 academic year, and
every academic year thereafter, an otherwise qualifying institution
with a graduation rate of 30 percent or less for students taking 150
percent or less of the expected time to complete degree requirements,
as reported by the United States Department of Education and as
certified by the commission pursuant to subparagraph (A), shall be
ineligible for initial and renewal Cal Grant awards at the
institution, except as provided for in  subparagraphs (F) and
(I).   subparagraph (H).  
   (H) 
    (G)  Notwithstanding any other law, the requirements of
this paragraph shall not apply to institutions with 40 percent or
less of undergraduate students borrowing federal student loans, using
information reported to the United States Department of Education
for the academic year two years before the year in which the
commission is certifying the three-year cohort default rate or
graduation rate pursuant to subparagraph (A). 
   (I) 
    (H)  Notwithstanding subparagraph  (G),
  (F),  an otherwise qualifying institution with a
three-year cohort default rate that is less than 10 percent and a
graduation rate above 20 percent for students taking 150 percent or
less of the expected time to complete degree requirements, as
certified by the commission pursuant to subparagraph (A), shall
remain eligible for initial and renewal Cal Grant awards at the
institution through the 2016-17 academic year. 
   (J) 
    (I)  The commission shall do all of the following:
   (i) Notify initial Cal Grant recipients seeking to attend, or
attending, an institution that is ineligible for initial and renewal
Cal Grant awards under subparagraph (C) or  (G) 
 (F)  that the institution is ineligible for initial Cal
Grant awards for the academic year for which the student received an
initial Cal Grant award.
   (ii) Notify renewal Cal Grant recipients attending an institution
that is ineligible for initial and renewal Cal Grant awards at the
institution under subparagraph (C) or  (G)   (F)
 that the student's Cal Grant award will be reduced by 20
percent, or eliminated, as appropriate, if the student attends the
ineligible institution in an academic year in which the institution
is ineligible.
   (iii) Provide initial and renewal Cal Grant recipients seeking to
attend, or attending, an institution that is ineligible for initial
and renewal Cal Grant awards at the institution under subparagraph
(C) or  (G)   (F)  with a complete list of
all California postsecondary educational institutions at which the
student would be eligible to receive an unreduced Cal Grant award.

   (iv) (I) Establish an appeal process for an otherwise qualifying
institution that fails to satisfy the three-year cohort default rate
and graduation rate requirements in subparagraphs (C) and (F),
respectively.  
   (II) In assessing whether to grant an appeal, the commission may
consider cohort size and the likelihood of an otherwise qualifying
institution regaining eligibility in the academic year next following
the institution's loss of eligibility.  
   (K) 
    (J)  By January 1, 2013, the Legislative Analyst shall
submit to the Legislature a report on the implementation of this
paragraph. The report shall be prepared in consultation with the
commission, and shall include policy recommendations for appropriate
measures of default risk and other direct or indirect measures of
quality or effectiveness in educational institutions participating in
the Cal Grant Program, and appropriate scores for those measures. It
is the intent of the Legislature that appropriate policy and fiscal
committees review the requirements of this paragraph and consider
changes thereto.
   (m) "Satisfactory academic progress" means those criteria required
by applicable federal standards published in Title 34 of the Code of
Federal Regulations. The commission may adopt regulations defining
"satisfactory academic progress" in a manner that is consistent with
those federal standards. 
  SECTION 1.    Section 6720 is added to the Labor
Code, to read:
   6720.  (a) The Legislature finds and declares that the protection
of workers in the adult film industry is the responsibility of
multiple layers of government, with the department being responsible
for worker safety and the county being responsible for protecting the
public health. Therefore, this section shall not be construed to
prohibit a city, county, or city and county from implementing a local
ordinance regulating the adult film industry, provided that nothing
in the local ordinance contradicts any provision of this section.
   (b) For purposes of this section, the following definitions shall
apply:
   (1) "Adult film" means any commercial film, video, multimedia, or
other recorded representation during the production of which
performers actually engage in sexual intercourse, including oral,
vaginal, or anal penetration.
   (2) "Employee" means a person who is an employee or independent
contractor, regardless of whether the person is shown in the adult
film, who, during the production of the adult film, performs sexual
intercourse, including oral, vaginal, or anal penetration.
   (3) "Employer" means a company, partnership, corporation, or
individual engaged in the production of an adult film. There shall be
a rebuttable presumption that the name on the material for
commercial distribution is the employer unless there is evidence to
the contrary as demonstrated through contractual or employment
records.
   (4) "Sexually transmitted disease" or "STD" means any infection
commonly spread by sexual conduct, including, but not limited to,
HIV/AIDS, gonorrhea, syphilis, chlamydia, hepatitis, genital human
papillomavirus infection, and genital herpes.
   (c) An employer shall maintain engineering and work practice
controls sufficient to protect employees from exposure to blood and
any potentially infectious materials, in accordance with Section 5193
of Title 8 of the California Code of Regulations. Engineering and
work practice controls shall include, but are not limited to, the
following:
   (1) Simulation of sex acts using acting, production, and
postproduction techniques.
   (2) Provision of and required use of condoms and other protective
barriers whenever acts of vaginal or anal intercourse are filmed.
   (3) The provision of condom-safe water-based or silicone-based
lubricants to facilitate the use of condoms.
   (4) Plastic and other disposable materials to clean up sets.
   (5) Sharps containers for disposal of contaminated sharps,
including, but not limited to, any blades, wires, or broken glass.
   (d) An employer shall maintain an exposure control plan in
accordance with Section 5193 of Title 8 of the California Code of
Regulations. An employer shall not be required to comply with any
provision related to establishing and maintaining a sharps injury
log, or any provision regarding regulated waste.
   (e) An employer shall make available the hepatitis B vaccination
and all medical followup required by Section 5193 of Title 8 of the
California Code of Regulations, for any employee engaged in the
production of adult films, at the employer's expense.
   (f) An employer shall designate a custodian of records for
purposes of this section. A copy of the original production shall be
retained by the custodian of records.
   (g) An employer shall pay the costs of required medical
monitoring, such as STD testing, and keep confidential employee
records.
   (h) (1) An employer shall adopt, implement, maintain, and update,
as required, a written health and safety program that meets the
requirements of the Injury and Illness Prevention Program and the
bloodborne pathogens standard, described, respectively, in Sections
3203 and 5193 of Title 8 of the California Code of Regulations.
   (2) An employer shall provide a training program in accordance
with Section 5193 of Title 8 of the California Code of Regulations.
The training requirements of this subdivision may be satisfied by
proof that the employee has received appropriate training at another
workplace or from an appropriate third party approved by the
department in the prior 12 months.
   (i) This section shall not be construed to require condoms,
barriers, or other personal protective equipment to be visible in the
final product of an adult film.
   (j) The Legislature finds and declares that screening for STDs is
a critical public health measure and should be employed wherever
possible, including the adult film industry. Therefore, this section
shall not be construed to impede or replace STD screening of all
employees, as defined in paragraph (2) of subdivision (b), pursuant
to STD screening protocols established by the federal Centers for
Disease Control and Prevention, the State Department of Public
Health, and the public health department in the county where the
filming occurs.  
  SEC. 2.    The provisions of this act are
severable. If any provision of this act or its application is held
invalid, that invalidity shall not affect other provisions or
applications that can be given effect without the invalid provision
or application.  
  SEC. 3    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.  
  SEC. 4.    This act is an urgency statute
necessary for the immediate preservation of the public peace, health,
or safety within the meaning of Article IV of the Constitution and
shall go into immediate effect. The facts constituting the necessity
are:
   In order to protect workers in the adult film industry from an
imminent threat to public health as soon as possible, it is necessary
that this act take effect immediately.