BILL ANALYSIS                                                                                                                                                                                                    Ó
                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          
          BILL NO:  SB 17                           HEARING:  4/27/11
          AUTHOR:  Blakeslee                        FISCAL:  Yes
          VERSION:  4/7/11                          TAX LEVY:  No
          CONSULTANT:  Ewing                        
                          BUDGET BILLS: PUBLIC REVIEW 
          
          Requires 72-hour posting of budget bill, or implementing 
          legislation, prior to vote to pass the budget.
                           Background and Existing Law
                                         
          The California Constitution directs the Governor to submit 
          to the Legislature, within the first 10 days of a calendar 
          year, a budget for the ensuing fiscal year.  The 
          Constitution authorizes the Legislature to determine the 
          procedures used to submit, approve, and enforce the state 
          budget within the constraints of constitutional 
          requirements.  
                                   Proposed Law  
          Senate Bill 17 requires the Legislature to post on the 
          Internet and make publicly available, for at least 72 
          hours, the budget bill or a bill implementing the budget, 
          before a vote to pass the bill to the Governor for 
          consideration.  
                               State Revenue Impact
           
          No estimate. 
                                     Comments  
          1.   Purpose of the bill  .  Budget negotiations often extend 
          into the middle of the night with amendments considered on 
          short notice.  As a result, policy-makers have little time 
          to review budget language and may not fully understand the 
          implications of the bill.  The accelerated nature of budget 
          discussions impairs the transparency of the budget process. 
           SB 17 addresses those concerns by requiring budget bills 
          to be available for review at least 72-hours before a vote.
          SB 17 - 4/7/11 -- Page 2
          2.   No effect  .  The Constitution empowers the Legislature 
          to determine the procedures used to approve the budget.  
          Under that authority, the Legislature has established a 
          rule-making process governing its procedures.  The courts 
          have ruled that the Legislature cannot, through statute, 
          infringe upon that authority.  In People's Advocate, Inc., 
          et al. v. The Superior Court of Sacramento County (181 Cal. 
          App. 3d 316) the court wrote "Ýs]tatutes do not supersede 
          or control rules or resolutions adopted by the Legislature 
          governing its own affairs, since those matters are within 
          the Legislature's constitutional powers and bind only the 
          house that adopts them, while the statutes are laws 
          addressing the world outside the Legislature and are 
          categorically different from rules and resolutions."  If 
          policymakers want to require a 72-hour period for reviewing 
          the budget bill, that requirement should be established 
          through the rule making process of each house or through a 
          constitutional amendment.  
          3.   Constitutional restrictions have not prevented other 
          legislation  .  Despite court rulings, the Legislature has 
          enacted other legislation governing legislative procedure.  
           Government Code Section 9500 et. seq. includes provisions 
          directing legislative procedures, including statutes 
          directing the language that shall be used in enacting 
          legislation, the office to which bills and other documents 
          should be delivered for engrossing or enrolling, the order 
          in which bills shall be enrolled, and the process for 
          enrolling bills.  The provisions of SB 17 would be no 
          different. 
          4.   Does the version of the budget bill matter  ?  The budget 
          bill typically undergoes many amendments.  An earlier 
          version of the bill referenced the "final language" in the 
          budget bill.  That language was intended to ensure that the 
          72-hour waiting period applied to the language that would 
          be sent to the Governor, and not an earlier version.  That 
          language was removed.  The Committee may want to reinsert 
          that language if the intent is to allow review of the final 
          version of the budget bill and not an earlier version. 
          5.   Transparency and handcuffs  .  Senate Bill 17 creates a 
          waiting period to review the budget bill.  But that delay 
          also could prevent policymakers from acting with urgency.  
          Even minor amendments could trigger sequential 72-hour 
          SB 17 - 4/7/11 -- Page 3
          waiting periods that could substantially delay the budget 
          vote.
          5.   Alternative approaches  .  Senate Bill 17 is intended to 
          ensure that policymakers are informed of the provisions of 
          the budget bill and to improve transparency.  The Committee 
          may want to consider other strategies to achieve these 
          goals.  
             ü    Improved understanding.  The budget process 
               currently includes a review of the Governor's budget 
               by the Legislative Analyst's Office.  That process 
               does not include a review of the final version by the 
               LAO.  The Committee may want to consider directing the 
               LAO to analyze the final version of the bill prior to 
               a vote.   
             ü    Transparency.  The Government Code currently 
               requires the budget bill to be posted online.  But the 
               technical nature of the bill makes it difficult to 
               understand how budget allocations would impact the 
               public.  The Committee may wish to explore strategies 
               to communicate the information in the budget bill to 
               the public in ways that are understandable.  
          5.   Related measures  .  Senate Bill 14 (Wolk) would require 
          the Governor to prepare the budget using performance-based 
          budgeting principles, including linking allocations to 
          goals and performance targets.  (Passed 3-30-11 by Sen. 
          Gov. & Fin., 8-0)
          Senate Bill 15 (DeSaulnier) would require the Governor to 
          prepare spending plans for two fiscal years and project 
          fiscal implications of current spending plans.  (Passed 
          3-30-11 by Sen. Gov. & Fin., 8-0)
          Assembly Bill 27 (Gorell) would require the budget bill to 
          be posted on the Internet for at least 72-hours prior to a 
          vote to pass the bill to the Governor for consideration. 
          AB 430 (Feuer) would require the Governor to prepare 
          spending plans for two fiscal years and project fiscal 
          implications of current spending plans.  
          "Best Practices Budget Accountability Act."  California 
          Forward has sponsored an initiative measure that has been 
          filed with the Secretary of State's office and the Attorney 
          SB 17 - 4/7/11 -- Page 4
          General's office for title and summary.  The measure would 
          require the budget bill and bills implementing the budget 
          bill to be in print for three days before they may be 
          adopted.
                         Support and Opposition  (4/15/11)
           Support  :  California Small Business Association; California 
          Taxpayers Association; City of Del Rey Oaks; City of Sand 
          City; Howard Jarvis Taxpayers Association
          Opposition:  Unknown