BILL ANALYSIS                                                                                                                                                                                                    Ó






                  SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
                                Mark Leno, Chair
                                        
          Bill No:       AB 1495
          Author:        Committee on Budget
          As Amended:    June 13, 2012
          Consultant:    Jennifer Troia, Brady Van Engelen, Catherine 
          Freeman
          Fiscal:        Yes
          Hearing Date:  June 14, 2012
          
          Subject:  Budget Act of 2012

          Summary:  Contains necessary changes to implement the 
          Budget Act of 2012. 
          
          Proposed Law:  

          1)Mortgage Settlement Funds:  Authorizes a loan of $50 
            million from the National Mortgage Settlement deposit 
            fund to the General Fund.  These funds would be utilized 
            to offset Department of Justice costs.  This is a $50 
            million dollar reduction to the total amount of the loan 
            that was previously included in the proposed 2012 Budget 
            Act.

          2)State Highway Account Loan Repayment:  Rejects the 
            proposed delay in the repayment of existing $150 million 
            and $135 million loans from the State Highway Account to 
            2014, leaving the current repayment dates in place.

          3)State Highway Account Loan:  Institutes a new loan from 
            the State Highway Account of $50 million that would be 
            repaid by June 30, 2016, upon order of the Director of 
            Finance.

          4)CalWORKs:  Recognizes $104.8 million General Fund savings 
            from streamlining administration of the CalWORKs 
            welfare-to-work program in cases where families are 
            receiving assistance on behalf of children only (with no 
            aided adults).  Under existing law, counties are required 
            to annually redetermine the children's eligibility for 
            CalWORKs benefits.  The adult who is receiving the 
            assistance on behalf of the children is, however, 
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            required to report to the county, orally or in writing, 
            specified changes that could affect the amount of aid to 
            which the children are entitled.  Recent legislation (AB 
            6, Chapter 501, Statutes of 2011) requires counties to 
            convert from this quarterly to a semi-annual reporting 
            system (SAR) no later than October 1, 2013.  The savings 
            reflected in this bill assume that the frequency of 
            reporting in these cases would instead become annual.

          5)Beverage Container Recycling Fund:  Rejects the proposed 
            delay of $99.4 million Beverage Container Recycling Fund 
            loan payments from the 2003 and 2006 budget acts.

          6)General Fund Revenues Control Section 35.50.  Provides an 
            update to the Budget Control Section 35.50 regarding 
            General Fund Revenues to $93.3 billion.
               
          7)Department of Conservation Provisional Language.  Removes 
            a provision mistakenly included in the Budget related to 
            hydraulic fracturing.  This provision was included in 
            last year's Budget and erroneously added to the Budget 
            Bill.

          Support:   Unknown

          Opposed:  Unknown

















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