BILL ANALYSIS Ó
------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 118|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 445-6614 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
UNFINISHED BUSINESS
Bill No: SB 118
Author: Yee (D)
Amended: 8/6/12
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
SENATE FLOOR : 35-0, 1/23/12
AYES: Alquist, Anderson, Berryhill, Blakeslee, Calderon,
Corbett, Correa, De León, DeSaulnier, Dutton, Emmerson,
Fuller, Gaines, Hancock, Harman, Hernandez, Huff, Kehoe,
Leno, Lieu, Liu, Lowenthal, Negrete McLeod, Padilla,
Pavley, Price, Rubio, Simitian, Steinberg, Strickland,
Vargas, Walters, Wolk, Wright, Yee
NO VOTE RECORDED: Cannella, Evans, La Malfa, Runner,
Wyland
ASSEMBLY FLOOR : 79-0, 8/16/12 (Consent) - See last page
for vote
SUBJECT : State Controllers Office: reimbursement for
expenses
SOURCE : Author
CONTINUED
SB 118
Page
2
DIGEST : This bill requires a state agency to reimburse
the State Controller for accounting costs incurred for
revenue bonds, and requires the State Controller to invoice
the state agency for those costs.
Assembly Amendments make clarifying changes.
ANALYSIS : This bill requires each state agency to
reimburse the State Controller for the costs associated
with any accounting of expenditures incurred in connection
with any revenue bonds, not otherwise covered by the cost
of issuance or the administrative pro rata assessment
collected annually from each department, by or on behalf of
such agency as well as any other accounting services
performed by the State Controller until such time as the
bonds are redeemed. The State Controller is to invoice the
state agency issuing the bonds for the costs incurred and
the state agency shall pay the invoice unless disputed.
Background
Existing law requires that the State Controller be
reimbursed for actual expenses incurred in the
administration of state general obligation (GO) bonds.
This bill requires that the State Controller's Office (SCO)
be directly reimbursed by a state agency for accounting
costs incurred for revenue bonds.
Comments
Purpose of the bill . According to the author's office,
"Historically, the State Controller's Office (SCO) has had
an interagency agreement with the State Treasurer's Office
(STO) that allowed the SCO to bill the STO for actual
expenses incurred related to bond work. The STO would
reimburse the SCO and then seek reimbursement from the
respective state agency. At the end of Fiscal Year (FY)
2010-11, the STO informed the SCO that they no longer
wanted to engage in the interagency agreement.
"The SCO has the authority to be reimbursed for actual
expenses incurred for accounting work related to GO bonds,
per GC ÝGovernment Code] Section 16724.6. The SCO performs
accounting tasks related to GO bonds, as well as for
revenue bonds, but has no authority in law to be directly
CONTINUED
SB 118
Page
3
reimbursed for the expenses incurred while performing
accounting work related to revenue bonds.
"This bill requires the Controller to invoice a state
agency for the costs associated with the accounting of
expenditures related to revenue bonds, and requires the
state agency to pay the invoice."
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Assembly Appropriations Committee, there
are no new costs associated with this legislation. In
2010-11, the SCO was reimbursed approximately $175,000 for
revenue bond accounting work. Reimbursement was made
through an interagency agreement with the STO. Under this
bill, the SCO would be able to bill departments directly
for their costs.
SUPPORT : (Verified 8/17/12)
California State Controller
California State Treasurer
ARGUMENTS IN SUPPORT : According to the California State
Controller, "At no additional state cost, and by adopting a
reimbursement authority similar to that currently 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."
ASSEMBLY FLOOR : 79-0, 8/16/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani,
Beth Gaines, Galgiani, Garrick, Gatto, Gordon, Gorell,
Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Roger
Hernández, Hill, Huber, Hueso, Huffman, Jeffries, Jones,
Knight, Logue, Bonnie Lowenthal, Ma, Mansoor, Mendoza,
Miller, Mitchell, Monning, Morrell, Nestande, Nielsen,
CONTINUED
SB 118
Page
4
Norby, Olsen, Pan, Perea, V. Manuel Pérez, Portantino,
Silva, Skinner, Smyth, Solorio, Swanson, Torres, Valadao,
Wagner, Wieckowski, Williams, Yamada, John A. Pérez
NO VOTE RECORDED: Lara
DLW:m 8/17/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED