BILL ANALYSIS Ó Bill No: SB 118 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Roderick D. Wright, Chair 2011-2012 Regular Session Bill Analysis SB 118 Author: Yee Amended: January 4, 2012 Hearing Date: January 10, 2012 Consultant: Paul Donahue SUBJECT : State Controller SUMMARY : Gives statutory reimbursement authority to the State Controller for work performed by the Office in connection with issuance of state-issued revenue bonds. Existing law : 1) Requires the State Controller to, among other things, account for scheduled expenditures and report monthly on revenue and each department's expenditures. 2) Establishes the means by which the Controller is reimbursed for actual expenses incurred in the administering or review of certain loans, assuring state general obligation bond compliance, and other related and necessary services. This bill : 1) Requires the Controller to receive reimbursement for associated expenses incurred in the accounting of expenditures related to the issuance and statewide accounting of revenue bonds. 2) Authorizes the State Controller's Office to recover outstanding receivable expenses by initiating a request to transfer funds from the responsible agency for related unpaid invoices. COMMENTS : SB 118 (Yee) Page 2 1) Purpose of the bill : The State Controller's Office (SCO) has traditionally entered into an Interagency Agreement with the State Treasurer's Office (STO) that outlines a procedure for the SCO to invoice the STO for actual expenses incurred in connection with services performed by the SCO related to the issuance of revenue bonds by the STO. AT the end of FY 2010-11, the STO notified the SCO that it was no longer willing to sign an Interagency Agreement for this purpose. The SCO has authority to be reimbursed for actual expenses incurred for accounting work related to General Obligation Bonds (Govt. Code § 16724.6), but lacks express statutory authority for reimbursement for similar work it performs related to revenue bonds. This bill simply provides statutory authority for the SCO to obtain reimbursement for work on revenue bonds. 2) Support : The State Controller writes in support of the bill that, "at no additional state costs, and by adopting a reimbursement authority in place for the state's general obligation bonds, SB 118 will allow my office to recoup costs incurred for accounting activities related to revenue bond programs, as well as for maintenance after bonds are issued." SUPPORT: State Controller OPPOSE: None on file FISCAL COMMITTEE: Senate Appropriations Committee ********** SB 118 (Yee) Page 3