BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 118|
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THIRD READING
Bill No: SB 118
Author: Yee (D)
Amended: 1/12/12
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMM. : 10-0, 1/10/12
AYES: Wright, Anderson, Berryhill, Cannella, Corbett, De
León, Evans, Hernandez, Padilla, Yee
NO VOTE RECORDED: Calderon, Strickland, Wyland
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : State Controllers Office: reimbursement for
expenses
SOURCE : Author
DIGEST : This bill requires each state agency to
reimburse the State Controller for the costs associated
with the accounting of expenditures related to the issuance
and sale of revenue bonds, and authorizes the State
Controller to recover the costs by direct transfer from the
responsible agency.
ANALYSIS :
Existing law:
1. Requires the State Controller to, among other things,
account for scheduled expenditures and report monthly on
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revenue and each department's expenditures.
2. Establishes the means by which the State 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 each state agency to reimburse the State
Controller for the costs associated with the accounting
of expenditures related to the issuance and sale of
revenue bonds.
2. Authorizes the State Controller's Office (SCO) to
recover the costs by direct transfer from the
responsible agency.
Comments
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 Fiscal Year 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 (Government Code
Section 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 1/17/12)
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State Controller
OPPOSITION : (Verified 1/17/12)
Department of Finance
ARGUMENTS IN SUPPORT : The State Controller writes 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."
ARGUMENTS IN OPPOSITION : The Department of Finance
writes:
"Finance is opposed to this bill because this is a
budgetary issue that should be addressed through the
normal budget development process. It is also not clear
if a statutory change is necessary.
"The bill does not place a limit on the amount SCO could
collect from the affected departments and would not
provide the Administration and the Legislature the
opportunity to make recommendations on the requested
resources on an annual basis.
"Historically, the State Treasurer's Office (STO) has had
an interagency agreement with the SCO that allowed the
SCO to bill the STO for actual expenses incurred related
to issuance and statewide accounting for revenue bond
sales transactions. At the end of fiscal year 2010-11,
the STO discontinued the interagency agreement,
indicating that the SCO should bill departments
directly."
PQ:mw 1/18/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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