BILL NUMBER: SBX3 20 CHAPTERED
BILL TEXT
CHAPTER 3
FILED WITH SECRETARY OF STATE FEBRUARY 20, 2009
APPROVED BY GOVERNOR FEBRUARY 20, 2009
PASSED THE SENATE FEBRUARY 19, 2009
PASSED THE ASSEMBLY FEBRUARY 19, 2009
AMENDED IN ASSEMBLY FEBRUARY 19, 2009
AMENDED IN ASSEMBLY JANUARY 13, 2009
INTRODUCED BY Senator Maldonado
JANUARY 5, 2009
An act to amend and supplement the Budget Act of 2009 by amending
Item 0840-001-0001 of Section 2.00 of that act, relating to the State
Budget, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
I am signing Senate Bill 20 Third Extraordinary Session; however,
I am making the following reductions in the item described herein to
be consistent with the reductions I made to the State Controller's
budget when I signed Senate Bill 1 Third Extraordinary Session, the
2009 Budget Act.
Item 0840-001-0001--For support of the Controller.
56,976,000 55,980,000 51,268,000
(1) 100000-Personal Services..... 111,076,000
99,968,000
(2) 300000-Operating Expenses and Equipment 55,552,000
.... 54,556,000
(3) Reimbursements.... -51,348,000
-48,353,000
(4) Amount payable from the Motor Vehicle Fuel Account,
Transportation Tax Fund (Item 0840-001-0061)... -4,149,000
-3,907,000
(5) Amount payable from the Highway Users Tax Account,
Transportation Tax Fund (Item 0840-001-0062)... -1,184,000
-1,115,000
(6) Amount payable from the Local Revenue Fund (Item
0840-001-0330)... -600,000 -565,000
(7) Amount payable from the Federal Trust Fund (Item
0840-001-0890)... -813,000 -766,000
(8) Amount payable from the State Penalty Fund (Item
0840-001-0903)... -1,332,000 -1,254,000
(9) Amount payable from the Unclaimed Property Fund (Item
0840-001-0970)... -28,250,000 -26,602,000
(10) Amount payable from various other unallocated nongovernmental
cost funds (Retail Sales Tax Fund) (Item 0840-001-0988)...
-242,000 -228,000
(11) Amount payable from the 2006 State School Facilities Fund
(Item 0840-001-6057)... -978,000 -921,000
(12) Amount payable from the Central Service Cost Recovery Fund
(Item 0840-001-9740)... -19,098,000
-17,984,000
(13) Amount payable from other unallocated special funds (Item
0840-011-0494)... -96,000 -90,000
(14) Amount payable from unallocated bond funds (Item
0840-011-0797)... -631,000 -594,000
(15) Amount payable from various other unallocated nongovernmental
cost funds (Item 0840-011-0988)... -90,000
-85,000
(16) Amount payable from the Public Transportation Account, State
Transportation Fund (Section 25.50)... -18,000
-17,000
(17) Amount payable from the Highway Users Tax Account,
Transportation Tax Fund (Section 25.50)... -289,000
-272,000
(18) Amount payable from the Motor Vehicle License Fee Account,
Transportation Tax Fund (Section 25.50)... -16,000
-15,000
(19) Amount payable from the DMV Local Agency Collection Fund
(Section 25.50)...-2,000
(20) Amount payable from the Trial Court Trust Fund (Section
25.50)... -165,000 -155,000
(21) Amount payable from the Timber Tax Fund (Section
25.50)...-1,000
(22) Amount payable from the Public Safety Account, Local Public
Safety Fund (Section 25.50)... -255,000
-240,000
(23) Amount payable from the Local Revenue Fund (Section 25.50)...
-95,000 -90,000
With the above reductions, I hereby approve Senate Bill 20 Third
Extraordinary Session.
ARNOLD SCHWARZENEGGER
SB 20, Maldonado. Budget Act of 2009.
This bill would amend and supplement the Budget Act of 2009 by
revising an item of appropriation for the Controller.
The California Constitution authorizes the Governor to declare a
fiscal emergency and to call the Legislature into special session for
that purpose. The Governor issued a proclamation declaring a fiscal
emergency, and calling a special session for this purpose, on
December 19, 2008.
This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on December 19, 2008,
pursuant to the California Constitution.
This bill would become operative only if AB 1 or SB 1 of the Third
Extraordinary Session is enacted and becomes effective on or before
July 1, 2009.
This bill would declare that it is to take effect immediately as
an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Item 0840-001-0001 of Section 2.00 of the Budget Act of
2009 is amended to read:
0840-001-0001--For support of the Controller. 55,980,000
Schedule:
(1) 100000-Personal
Services.............. 111,076,000
(2) 300000-Operating
Expenses and
Equipment............. 54,556,000
(3) Reimbursements........ -51,348,000
(4) Amount payable from
the Motor Vehicle
Fuel Account,
Transportation Tax
Fund (Item 0840-001-
0061)................. -4,149,000
(5) Amount payable from
the Highway Users Tax
Account,
Transportation Tax
Fund (Item 0840-001-
0062)................. -1,184,000
(6) Amount payable from
the Local Revenue
Fund (Item 0840-001-
0330)................. -600,000
(7) Amount payable from
the Federal Trust
Fund (Item 0840-001-
0890)................. -813,000
(8) Amount payable from
the State Penalty
Fund (Item 0840-001-
0903)................. -1,332,000
(9) Amount payable from
the Unclaimed
Property Fund (Item
0840-001-0970)........ -28,250,000
(10) Amount payable from
various other
unallocated
nongovernmental cost
funds (Retail Sales
Tax Fund) (Item 0840-
001-0988)............. -242,000
(11) Amount payable from
the 2006 State School
Facilities Fund (Item
0840-001-6057)........ -978,000
(12) Amount payable from
the Central Service
Cost Recovery Fund
(Item 0840-001-9740).. -19,098,000
(13) Amount payable from
other unallocated
special funds (Item
0840-011-0494)........ -96,000
(14) Amount payable from
unallocated bond
funds (Item 0840-011-
0797)................. -631,000
(15) Amount payable from
various other
unallocated
nongovernmental cost
funds (Item 0840-011-
0988)................. -90,000
(16) Amount payable from
the Public
Transportation
Account, State
Transportation Fund
(Section 25.50)....... -18,000
(17) Amount payable from
the Highway Users Tax
Account,
Transportation Tax
Fund (Section 25.50).. -289,000
(18) Amount payable from
the Motor Vehicle
License Fee Account,
Transportation Tax
Fund (Section 25.50).. -16,000
(19) Amount payable from
the DMV Local Agency
Collection Fund
(Section 25.50)....... -2,000
(20) Amount payable from
the Trial Court Trust
Fund (Section 25.50).. -165,000
(21) Amount payable from
the Timber Tax Fund
(Section 25.50)....... -1,000
(22) Amount payable from
the Public Safety
Account, Local Public
Safety Fund (Section
25.50)................ -255,000
(23) Amount payable from
the Local Revenue
Fund (Section 25.50).. -95,000
Provisions:
1. The funding provided in Item 0840-
001-0970 shall be in lieu of the
appropriation in Section 1564 of
the Code of Civil Procedure for
all costs, expenses, or
obligations connected with the
administration of the Unclaimed
Property Law, with the exception
of payment of owners' or holders'
claims pursuant to Section 1540,
1542, 1560, or 1561 of the Code of
Civil Procedure, or of payment of
the costs of compensating
contractors for locating and
recovering unclaimed property due
the state.
2. Of the claims received for
reimbursement of court-ordered or
voluntary desegregation programs
pursuant to Article 6 (commencing
with Section 41540) of Chapter 3.2
of Part 24 of Division 3 of Title
2 of the Education Code, the
Controller shall pay only those
claims that have been subjected to
audit by school districts in
accordance with the Controller's
procedures manual for conducting
audits of education desegregation
claims. Furthermore, the
Controller shall pay only those
past-year actual claims for
desegregation program costs that
are accompanied by all reports
issued by the auditing entity,
unless the auditing entity was the
Controller.
3. The Controller may, with the
concurrence of the Director of
Finance and the Chairperson of the
Joint Legislative Budget
Committee, bill affected state
departments for activities
required by Section 20050 of the
State Administrative Manual,
relating to the administration of
federal pass-through funds.
No billing may be sent to
affected departments sooner than
30 days after the Chairperson of
the Joint Legislative Budget
Committee has been notified by the
Director of Finance that he or she
concurs with the amounts specified
in the billings.
4. (a) Notwithstanding
subdivision (b) of Section
1531 of the Code of Civil
Procedure, the Controller
may publish notice in any
manner that the Controller
determines reasonable,
provided that (1) none of
the moneys used for this
purpose is redirected from
funding for the
Controller's audit
activities, (2) no
photograph is used in the
publication of notice, and
(3) no elected official's
name is used in the
publication of notice.
(b) No funds appropriated in
this act may be expended
by the Controller to
provide general
information to the public,
other than holders (as
defined in subdivision (e)
of Section 1501 of the
Code of Civil Procedure)
of unclaimed property,
concerning the unclaimed
property program or
possible existence of
unclaimed property held
by the Controller's
office, except for
informational
announcements to the news
media, through the
exchange of information on
electronic bulletin
boards, or no more than
$50,000 per year to inform
the public about this
program in activities
already organized by the
Controller for other
purposes. This restriction
does not apply to sending
individual notices to
property owners (as
required by the Code of
Civil Procedure).
5. Of the moneys appropriated to the
Controller in this act, the
Controller shall not expend more
than $500,000 to conduct
posteligibility fraud audits of
the Supplemental Security
Income/State Supplementary Payment
Program.
6. The Commission on State
Mandates shall provide, in
applicable parameters and
guidelines, as follows:
(a) If a local agency or
school district contracts
with an independent
contractor for the
preparation and submission
of reimbursement claims,
the costs reimbursable by
the state for that purpose
shall not exceed the
lesser of (1) 10 percent
of the amount of the
claims prepared and
submitted by the
independent contractor, or
(2) the actual costs that
would necessarily have
been incurred for that
purpose if performed by
employees of the local
agency or school district.
(b) The maximum amount of
reimbursement provided in
subdivision (a) may be
exceeded only if the local
agency or school district
establishes, by
appropriate documentation,
that the preparation and
submission of these claims
could not have been
accomplished without
incurring the additional
costs claimed by the local
agency or school district.
7. The funds appropriated to the
Controller in this item may not be
expended for any performance
review or performance audit except
pursuant to specific statutory
authority. It is the intent of the
Legislature that audits conducted
by the Controller, or under the
direction of the Controller, shall
be fiscal audits that focus on
claims and disbursements, as
provided for in Section 12410 of
the Government Code. Any report,
audit, analysis, or evaluation
issued by the Controller for the
2009-10 fiscal year shall cite the
specific statutory or
constitutional provision
authorizing the preparation and
release of the report, audit,
analysis, or evaluation.
8. The Controller shall deliver his
or her monthly report on General
Fund cash receipts and
disbursements within 10 days after
the close of each month to the
Joint Legislative Budget
Committee, the fiscal committees
of the Legislature, the Department
of Finance, the Treasurer's
office, and the Legislative
Analyst's Office.
9. For purposes of the review and
payment of any claim for
reimbursement by local government
submitted pursuant to Section
54954.4 of the Government Code,
the Controller shall use the
procedures that were in effect at
the time the claim was
submitted.
10. Pursuant to subdivision (c) of
Section 1564 of the Code of Civil
Procedure, the Controller shall
transfer all moneys in the
Abandoned Property Account in
excess of $50,000 to the General
Fund no less frequently than at
the end of each month. This
transfer shall include unclaimed
Proposition 103 insurance rebate
moneys pursuant to Section 1861.01
of the Insurance Code and Section
1523 of the Code of Civil
Procedure.
11. The Controller shall provide to
the Department of Finance, the
Chairperson of the Joint
Legislative Budget Committee, and
the chairpersons of the fiscal
committees of each house of the
Legislature a report that provides
the following details by mandate:
the level of claims requested; the
amount reduced by the initial desk
audit; the amount paid; the amount
recouped; and the results of a
final audit and subsequent funding
adjustments. The report is due on
June 30, 2010, and will cover the
fourth quarter of the 2008-09
fiscal year and the first three
quarters of the 2009-10 fiscal
year.
12. To the extent authorized by
existing law, the Controller shall
recoup the amount of any
unallowable mandate claim costs
resulting from desk or field
audits of such claims.
13. The Controller's estimate of the
state's liability for
postemployment benefits prepared
to comply with Governmental
Accounting Standards Board (GASB)
Statement 45 shall include, in
addition to all other items
required under the accounting
statement: (a) an identification
and explanation of any significant
differences in actuarial
assumptions or methodology from
any relevant similar types of
assumptions or methodology used by
the Public Employees' Retirement
System to estimate state pension
obligations; and (b) alternative
calculations of the state's
liability for other postemployment
benefits using different long-term
rates of investment return
consistent with a hypothetical
assumption that the state will
begin to deposit 100 percent or a
lesser percent, respectively, of
its annual required contribution
under GASB Statement 45 to a
retiree health and dental benefits
trust fund beginning in the 2007-
08 fiscal year. This provision
shall not obligate the state to
change the practice of funding
health and dental benefits for
annuitants currently required
under state law.
14. The funds appropriated to the
Controller in this item may not be
expended on additional actuarial
valuations, beyond the annual
actuarial valuation, for other
postemployment benefits, prior to
obtaining concurrence in writing
from the Department of Finance.
The additional actuarial
valuations shall only be performed
to the extent resources exist, or
if funds are provided by the
requesting agency.
15. The Controller shall provide the
Chairperson of the Joint
Legislative Budget Committee and
the chairpersons of the fiscal
committees in each house of the
Legislature a report on the Human
Resources Management System
specifying the dollars expended on
the program in the previous fiscal
year and over the life of the
program and any known savings that
have occurred in the prior fiscal
year, to be submitted annually but
no later than August 30 of each
year. The report should compare
the known savings with the most
recent estimate of projected
savings and explain the
methodology by which the savings
were calculated.
16. The Controller shall deliver
yearend financial data as
specified by the Department of
Finance, for the fiscal year just
ended, in hard copy and electronic
format, by October 15 of each year
and periodically as requested by
the Department of Finance. This
information is necessary for the
Department of Finance to determine
the proper beginning balance of
the current fiscal year for
budgetary purposes. To ensure
timely completion of the yearend
financial data, the Controller
should enforce provisions in
Section 12461.2 of the
Government Code and emphasize in
its regulation the deadline the
yearend financial statements are
due from the operating departments
to the Controller.
17. In the event new postage rates by
the United States Postal Service
are adopted, but not in time for
inclusion in the 2009-10 May
Revision, and the State
Controller's Office notifies the
Department of Finance with their
estimates of the increased postage
costs within 15 calendar days of
the adoption of new rates, the
Director of Finance may authorize
expenditures in excess of the
amount appropriated in this item
by an amount necessary to fund the
postage increase. This
authorization shall occur not less
than 15 days after the Department
of Finance notifies the
Chairperson of the Joint
Legislative Budget Committee.
18. The $345,000 loaned to the Local
Agency Self Insurance Authority
(LASIA), pursuant to Chapter 1327,
Statutes of 1986, will not be
required to be repaid.
19. It is the intent of the
Legislature that this item contain
zero funds for the purchase of
modular furniture for the
previously approved Cannery
Business Park Lease
Renewal/Expansion Project.
SEC. 2. This act addresses the fiscal emergency declared by the
Governor by proclamation on December 19, 2008, pursuant to
subdivision (f) of Section 10 of Article IV of the California
Constitution.
SEC. 3. Section 1 of this act shall become operative only if the
Budget Act of 2009, Assembly Bill 1 of the Third Extraordinary
Session, as amended in the Senate on February 14, 2009, or Senate
Bill 1 of the Third Extraordinary Session, as amended in the Assembly
on February 15, 2009, is enacted and becomes effective on or before
July 1, 2009.
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 that the necessary adjustments by this act to the
appropriations in the Budget Act of 2009 for support of state
government for the 2009-10 fiscal year be made as soon as possible,
it is necessary that this act take effect immediately.
____ CORRECTIONS
Governor's message--Page 1.
____