BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 1495|
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                                 THIRD READING


          Bill No:  AB 1495
          Author:   Assembly Budget Committee
          Amended:  6/14/12 in Senate
          Vote:     21

           
           SENATE BUDGET & FISCAL REVIEW COMMITTEE  :  11-0, 6/14/12
          AYES:  Leno, Alquist, DeSaulnier, Evans, Hancock, Liu, 
            Lowenthal, Negrete McLeod, Simitian, Wolk, Wright
          NO VOTE RECORDED:  Emmerson, Anderson, Fuller, Gaines, La 
            Malfa
           
          ASSEMBLY FLOOR  :  Not relevant


           SUBJECT  :    2012-13 Budget Trailer Bill:  Budget Junior

           SOURCE  :     Author


           DIGEST  :    This bill revises items of appropriation, loans, 
          and transfers of moneys specified in AB 1464 or SB 1004.  
          These items include:  Mortgage Settlement Funds, State 
          Highway Account Loan Repayment, State Highway Account Loan, 
          CalWORKs, Beverage Container Recycling Fund, General Fund 
          Revenues Control Section 35.50, and Department of 
          Conservation Provisional Language.

           ANALYSIS  :    

          This bill:

          1.  Mortgage Settlement Funds  .  Authorizes a loan of $50 
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             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, 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 (Fuentes), Chapter 501, Statutes of 
             2011) requires counties to convert from this quarterly 
             to a semi-annual reporting system 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  .  







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             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.

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


          DLW:k  6/14/12   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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