BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 1477|
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                                 THIRD READING


          Bill No:  AB 1477
          Author:   Assembly Budget Committee  
          Amended:  8/24/12 in Senate
          Vote:     21

           
           SENATE BUDGET & FISCAL REVIEW COMMITTEE  :  10-4, 8/23/12
          AYES:  Leno, Alquist, DeSaulnier, Hancock, Liu, Lowenthal, 
            Negrete McLeod, Simitian, Wolk, Wright
          NOES:  Emmerson, Fuller, Gaines, La Malfa
          NO VOTE RECORDED:  Anderson, Evans
           
          ASSEMBLY FLOOR  :  Not relevant


          SUBJECT  :    2012-13 Budget Act:  Trailer Bill

           SOURCE  :     Author


           DIGEST  :    This bill amends the Budget Act of 2012 by 
          revising various items of appropriation and making other 
          changes in the Budget Act of 2012, including the Childrens 
          Health and Human Services Special Fund, California Police 
          Activities League, California State University, University 
          of California Capital Outlay Projects Provisional Language, 
          Reduction for Employee Compensation, Public Utilities 
          Commission Special Fund Allocations, Renewable Resources 
          Trust Fund, Parks and Recreation Water and Wastewater 
          Projects, Parks and Recreation National Parks Agreements, 
          Vote-by-mail Ballots and Election Results Statements, 
          CalWORKs, and K-12 Education Mandate Reimbursements.

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           Senate Floor Amendments  of 8/24/12 add support to the 
          Department of Transportation and make changes to the 
          California State University provision.


           ANALYSIS  :    The Senate Budget and Fiscal Review Committee 
          staff state, the majority of this bill make minor, 
          technical corrections to the Budget Act of 2012.  This bill 
          also includes the following major changes to the Budget Act 
          of 2012:

          1.  Children's Health and Human Services Special Fund  .  
             Appropriates an additional $183 million (Children's 
             Health and Human Services Special Fund) to the Healthy 
             Families Program for 2012-13.  This additional 
             appropriation is scheduled across Item 4280 (Managed 
             Risk Medical Insurance Board, Healthy Families Program) 
             and reflects a total appropriation of $968.7 million 
             (total funds) for the Healthy Families Program.  With 
             the additional $183 million, the total amount 
             appropriated within the Children's Health and Human 
             Services Special Fund will be $191.8 million.

             The revenues for the Children's Health and Human 
             Services Special Fund are generated from the gross 
             premiums tax on Health Plans participating in the 
             Medi-Cal Managed Care Program as originally enacted in 
             AB 1422, Statutes of 2009.  However, the authority for 
             this tax expired as of July 1, 2012.  

             Legislation to reauthorize this tax is proceeding this 
             session and AB 1479 has a contingency clause that the 
             additional $183 million (Children's Health and Human 
             Services Special Fund) appropriation is operative only 
             if revenues as specified are obtained for this purpose.  


          2.  California Police Activities League  .  Appropriates 
             $123,000 to the California Police Activities League to 
             fund programs and services.  The resources for this 
             appropriation were collected pursuant to a check-off 
             contribution option placed on the personal income tax 
             return.


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          3.  University of California Capital Outlay Projects 
             Provisional Language  .  Adds budget bill provisional 
             language that was inadvertently omitted from 
             appropriations of 1992 and 1996 General Obligation bond 
             funds for construction of Phase 2 Infrastructure 
             Improvements at UC Santa Cruz.  The provisional 
             language, which has been included in the past several 
             budgets on GO-bond funded UC capital outlay projects, 
             authorizes expenditure of any savings as specified and 
             requires payment of prevailing wage rates.

          4.  Reduction for Employee Compensation  .  Amends existing 
             budget control section language to ratify the addenda 
             with statewide Bargaining Units 2 (CASE), 7 (CSLEA), and 
             10 (CAPS), which were submitted to the Joint Legislative 
             Budget Committee by July 1, 2012.  These additional 
             addenda, similar to those ratified in the 2012 Budget 
             Act for other statewide bargaining units, specify that 
             state employees in Bargaining Units 2, 7, and 10 have 
             agreed to participate in the Personal Leave Program 2012 
             (PLP 2012) for the period from July 1, 2012, to June 30, 
             2012.  These changes further implement Control Section 
             3.90 of the Budget Act of 2012, which achieves employee 
             compensation-related savings of $402 million GF.

          5.  Public Utilities Commission Special Fund Allocations  .  
             Adjusts special fund allocations at the commission to 
             reflect revised fund balances and caseload projections.

          6.  Renewable Resources Trust Fund  .  Re-establishes an 
             annual audit of the fund by the Office of State Audits 
             and Evaluations that was inadvertently deleted in 
             previous legislation.

          7.  Parks and Recreation Water and Wastewater Projects  .  
             Extends the encumbrance period for previously 
             appropriated water and wastewater projects.  This will 
             allow the department to use these funds for projects to 
             keep parks from closing due to adverse actions caused by 
             water pollution violations.

          8.  Parks and Recreation National Parks Agreements  .  
             Provides appropriation authority to the department 
             specifically for funding received by the federal 

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             government for parks where they have taken over full or 
             partial funding of operations.

          9.  Vote-by-mail Ballots and Election Results Statements  .  
             Due to the closure of several Postal Distribution 
             Centers, the receipt of vote-by-mail ballots may be 
             negatively impacted.  This provision would provide the 
             Department of Finance with $5 million to reimburse 
             County Registrars for costs related to changes in law 
             requiring registrars to count absentee ballots 
             postmarked on or before the date of an election. 

          10.  CalWORKs  .  Makes a technical adjustment to the 
             cost-per-case with respect to employment services in the 
             CalWORKs welfare-to-work program.  Funds this adjustment 
             through the early reversion of $80 million that was 
             appropriated for CalWORKs in the 2011-12 fiscal year.

          11.  K-12 Education Mandate Reimbursements  .  Adds 
             reimbursement funding for several small mandates, most 
             of which were inadvertently left out of the budget.  
             Amendments provide $1,000 each for five mandates.  

          12.  Department of Transportation (Caltrans)  .  Provides 
             additional support for the (Caltrans) of $7.7 million 
             through expenditure adjustments to the State Highway 
             Account and additional reimbursements largely from local 
             government agencies for the funding of project 
             initiation documents (PIDs), which are preliminary 
             planning documents that include the estimated cost, 
             scope and schedule for the project.  This reflects a 
             compromise regarding the funding of PIDs relating to 
             locally-sponsored highway capital projects on the state 
             highway system.  

             Includes Budget Bill language that:  (a) exempts PID 
             development and oversight services reimbursed by local 
             government agencies from state overhead charges for cost 
             recovery; and, (b) directs Caltrans streamline the 
             cooperative work agreement process related to PIDs 
             development and oversight.

          2.  California State University (CSU).   Authorizes the CSU 
             Chancellor to transfer balances from extension programs 

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             in order to also mitigate the impacts of reductions in 
             tuition fee revenues to state-supported instructional 
             programs.  The August 22, 2012, amendments to this bill 
             authorized the CSU Chancellor to transfer balances from 
             extension programs in order to mitigate only the impacts 
             of GF reductions to state-supported instructional 
             programs regardless of whether the "trigger cuts" 
             authorized in subdivision (a) of Section 3.62 of the 
             Budget Act of 2012 were operational.  

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No


          DLW:k  8/25/12   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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