BILL ANALYSIS Ó
SB 80
Page 1
SENATE THIRD READING
SB 80 (Budget and Fiscal Review Committee)
As Amended March 14, 2011
2/3 vote. Urgency
SENATE VOTE :Vote not relevant
SUMMARY : Contains necessary statutory and technical changes to
implement changes to the Budget Act of 2011. Specifically, this
bill :
1)Deletes the statutory provision that requires the California
Board of Accountancy (Board) to set renewal fee levels so that
the reserve balance in the Board's contingent fund is equal to
approximately nine months of annual authorized expenditures.
Outstanding loans to the General Fund (GF) can be repaid as
necessary for Board operations, so a lesser reserve can be
maintained without a need to increase fees.
2)Reverts $20 million GF from the Small Business Expansion Fund,
upon receipt of new federal funds in excess of $84.4 million,
anticipated under the federal Small Business Jobs Act of 2010
(15 U.S.C. Sec. 631 et seq.). The $20 million GF to be
reverted was provided to the program by AB 1632 (Committee on
Budget), which was a budget trailer bill to the 2010 Budget
Act. That legislation was enacted prior to notification from
the federal government that an $84.4 million grant is
available for the same purpose. The program provides loan
guarantees to assist small businesses obtain loans from
private lenders.
3)Adds a provision that specifies a loan to the GF that reduces
the balance of the Oil Spill Response Trust Fund below a
statutory threshold, does not obligate the administrator to
resume collection of the oil spill response fee. Outstanding
loans to the GF can be repaid as necessary to repay the Oil
Spill Response Trust Fund, so a lesser reserve can be
maintained without a need to resume fees.
4)Deletes the statutory appropriation of $10 million from the GF
for Williamson Act open space subventions to counties in
2010-11. Repeals the alternative Williamson Act program,
which was added by AB 2530 (Nielsen) Chapter 391 of Statutes
of 2010, and modified by SB 863 (Budget and Fiscal Review
SB 80
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Committee) Chapter 722, Statutes of 2010. The changes added
by AB 2530 (Nielsen) and SB 863(Budget and Fiscal Review
Committee) would have allowed counties to enter into shorter
contracts, nine years instead of 10, or 19 years instead of
20, as applicable. With the shorter contracts, the property
tax loss to the county is reduced.
5)Provides that the California Employees' Retirement System
(CalPERs) shall negotiate with carriers of health benefit
plans to add a core health plan option to the existing
portfolio or implement other measures to achieve ongoing cost
savings beginning in 2012-13, or both. The core health plan
option would provide for essential coverage at lower rates
than existing plans.
6)Adds more-recent budgetary loans to the language in statute
that defines conditions and reporting for budgetary loans made
in 2001-02, 2002-03, and 2003-04. The loans primarily involve
special fund transfers to the GF. Among the conditions are a
requirement that the loans be repaid if the originating fund
is in need of repayment, and the requirement that the loans be
repaid if no longer needed for the receiving fund. Broadens
the existing reporting language to include all outstanding
budgetary loans, and not just those from 2001-02, 2002-03, and
2003-04, and clarifies that the August 1 and February1 reports
on outstanding loans be based on updated information.
7)Directs $101 million annually in 2011-12 through 2015-16 to
the GF from a specified portion of tribal-gaming revenues.
Similar shifts have been approved in the annual budgets since
2008-09. Existing law directs these tribal-gaming revenues to
transportation special funds as an alternative repayment
method for loans from transportation special funds to the GF
in 2001-02 and 2002-03. The existing statute associated with
this revenue includes provisions that the stream of revenue
could be securitized for early repayment of the
transportation-fund loans; however, litigation and other
factors delayed such securitization and it is no longer being
pursued.
8)Extends the timeframe for county reporting requirements, on a
one-time basis, in order to allow for the distribution of
Indian Gaming Mitigation grants previously approved by the
Legislature.
SB 80
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9)Requires the California Victims Compensation and Government
Claims Board to provide notice to the chairpersons of the
committees in each house of the Legislature that consider
appropriations and the annual Budget Act, and the chairperson
of the Joint Legislative Budget Committee, within a specified
period of time prior to allowing either the use of a current
year appropriation to pay claims for prior year costs of
$500,000 or more, or claims from a single provider of goods or
services with respect to a single department that exceed
$500,000 within one year.
10)Adjusts any item of appropriation for departmental support in
the Budget Act of 2010-11 fiscal year to reflect reductions in
the rental rates charged to a state entity by the Department
of General Services (DGS) for the cost of office space in
buildings owned or operated by the DGS.
11)Adopts the three-year look-back statutory changes related to
determination of state eligibility for FedEd extended
unemployment benefits.
12)Reestablishes the Consolidated Work Program Fund in statute
and establishing this fund in the State Treasury, to contain
moneys deposited pursuant to the federal Workforce Investment
Act, and shall be available upon appropriation of the
Legislature.
13)Adds an urgency clause allowing this bill to take effect
immediately upon enactment.
Analysis Prepared by : Daisy Gonzales / BUDGET / (916) 319-2099
FN: 0000060