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, and General
Fund Revenues Control Section 35.50. This bill also
deletes language from the main Budget Bill relating to
fracking. This bill becomes operative only if AB 1464 or
SB 1004 is enacted as the Budget Act of 2012.
ANALYSIS :
This bill:
CONTINUED
AB 1495
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2
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, 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.
AB 1495
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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.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
DLW:k1 6/14/12 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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