BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 119|
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THIRD READING
Bill No: AB 119
Author: Assembly Budget Committee
Amended: 6/8/11 in Senate
Vote: 21
PRIOR VOTE NOT RELEVANT
SUBJECT : Budget Act of 2011: General Government
SOURCE : Author
DIGEST : This bill makes statutory changes necessary to
implement the General Government portions of the 2011-12
budget.
Senate Floor Amendments of 6/8/11 delete the prior version
of the bill which stated the intent of the Legislature to
enact statutory changes relating to the 2011 Budget Act.
ANALYSIS : This is the General Government Budget Trailer
Bill. It contains provisions necessary to implement the
2011-12 budget, including these key changes:
1. California Technology Agency Mandated Reports . Improves
reporting and information sharing related to the
continued implementation of the 2009 Governor's
Reorganization Plan No. 1 (GRP), which consolidated
information technology policy and project development
under the now-California Technology Agency, by expanding
current reporting to include such metrics as cost and
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risk avoidance and any impediments to the continued
implementation of the GRP. In addition, a copy of the
annual report on information technology savings will be
required to be transmitted to the Joint Legislative
Budget Committee and fiscal committees of both houses of
the Legislature.
2. 21st Century Project Sunset Date Extension . Extends by
three years the existing statutory authority of the
State Controller's Office to assess a variety of state
funds to support the completion of the 21st Century
Project, which will replace the state's existing
statewide human resource management systems in order to
improve management processes and fulfill payroll and
reporting obligations accurately and on time. Existing
law would repeal this authority on June 30, 2011; these
amendments would extend the date until June 30, 2014, a
date consistent with the completion of the 21st Century
Project.
3. Transfer the Commission on Employment of People With
Disabilities to the Department of Rehabilitation .
Effective January 1, 2012, transfers the Commission on
Employment of People with Disabilities from the
Employment Development Department (EDD) to the
Department of Rehabilitation (DOR). This proposal is
part of a larger Administration proposal to reduce state
government and achieve 2011-12 savings of $244 million
General Fund(GF) ($158 million other funds).
Transferring the Commission to DOR would allow it to
operate more efficiently and would achieve half-year
savings of $403,000 (other funds) and 3.3 personnel
years and assumes a reduction of seven of the 11
positions that currently support the Commission.
4. Eliminate the Economic Strategy Panel . Effective
January 1, 2012, eliminates the Economic Strategy Panel
which is currently supported by the EDD and Department
of Industrial Relations as part of the Labor and
Workforce Development Agency (LWDA) budget. This
proposal is part of a larger Administration proposal to
reduce state government and achieve 2011-12 savings of
$244 million GF ($158 million other funds). Eliminating
the Panel achieves half-year savings of $79,000 (other
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funds) and 0.7 personnel years. California has ten
separate boards, commissions, programs, divisions,
councils, and panels tasked with economic and workforce
development. This proposal would eliminate one of the
four entities currently within LWDA tasked with economic
and workforce development.
5. Local Agency Formation Commission Mandate . Makes minor
technical amendments to the requirements that special
districts file written statements with Local Agency
Formation Commissions (LAFCOs) concerning what classes
of services those special districts provide. By instead
requiring in law that LAFCOs determine this information,
the reimbursable state mandate on special district is
repealed and the State both avoids future costs and
defers a 2011-12 GF budget payment of $277,000. This
bill still allows LAFCOs to require that special
districts submit the written statements. State and
local governments would also avoid the bureaucratic
expenses of filing mandate claims, reviewing mandate
claims, and auditing mandate claims.
6. Consumer Participation Program Sunset Extension .
Provides a six-year extension to the sunset for the
Consumer Participation Program within the Department of
Managed Health Care. The new sunset date would be set
at January 1, 2018.
7. Extend Statutory Deadline for Completion of Alternate
Base Period (ABP) Project . Provides a seven-month
extension of the current statutory deadline of September
3, 2011, to April 2, 2012, for the ABP project. The ABP
project will implement the programming changes necessary
to provide an ABP for individuals who do not monetarily
qualify for a Unemployment Insurance (UI) claim using
the current base period year by allowing workers to
qualify for a UI claim by using an ABP that is based on
the most recent four completed calendar quarters at the
time of filing a claim. The Administration estimates
this change will allow 26,000 unemployed individuals per
year to qualify for approximately $69 million in UI
benefits up to three months earlier than would be
possible under the existing base period. The ABP
project is completely dependent on the completion of the
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Single Client Database (SCDB) project, which has
experienced delays in the last six months. The EDD
reports that the SCDB project is on track to be
completed in November 2011. The ABP statutory deadline
was legislatively-created; a seven-month extension to
April 2012 will still allow the ABP project to be
completed in advance of the federal implementation
deadline of September 2012.
8. Repeals California Victims Compensation and Government
Claims Board (Board) Reporting Requirement . Repeals
previous General Government Trailer Bill action, SB 80
(Senate Budget and Fiscal Review Committee), Chapter 11,
Statutes of 2011, that required the Board to provide
notice to the chairpersons of the committees in each
house of the Legislature that consider appropriations
and the annual Budget Act, and the Chairperson of the
Joint Legislative Budget Committee, within a specified
period of time prior to allowing either the use of a
current year appropriation to pay claims for prior year
costs of five hundred thousand dollars ($500,000) or
more, or claims from a single provider of goods or
services with respect to a single department that
exceeds five hundred thousand dollars ($500,000) within
one year.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
PQ:kc 6/8/11 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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