BILL ANALYSIS Ó
SB 1006
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SENATE THIRD READING
SB 1006 (Budget and Fiscal Review Committee)
As Amended June 25, 2012
Majority vote. Budget Bill Appropriation Takes Effect
Immediately
SENATE VOTE :Vote not relevant
SUMMARY : Contains necessary statutory and technical changes to
implement the Budget Act of 2012 relating to general government.
Specifically, this bill :
1)Creates a deposit fund for direct payments from the National
Mortgage Settlement. Allows the Director of Finance, in
accordance with legislative intent, to offset General Fund
(GF) expenditures during the 2011-12, 2012-13, and 2012-14
fiscal years.
2)Deletes the requirement for the State Controller to review
independent audits necessary to collect specified fees related
to rental car companies and customer facilities. The
independent audits will still be a requirement prior to an
airport entity collecting the specified fee.
3)Eliminates the sunset date on a requirement that places a 3%
cap on amounts appropriated for fees, costs, and other similar
expenses incurred in connection with any credit enhancement or
liquidity agreement on bonds payable from the state's GF.
4)Authorizes the Department of General Services to sell
specified parcels of property that are leased by the
department to the Capital Area Development Authority. The
proceeds of the sale would be deposited into the GF or the
Deficit Recovery Fund.
5)Enhances oversight responsibilities regarding Proposition 1B
funds dispersed by the California Emergency Management Agency
and allows for CalEMA to use the ability of a project to
expend funds within a specified timeframe as a factor when
awarding funds.
6)Modifies the definition of administrative costs due and
payable from each state agency to the Central Service Cost
Recovery Fund to include the Financial Information System for
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California.
7)Enables the California Technology Agency to develop and apply
uniform criteria on high risk projects in order to reduce
project risk and the potential for cost increases.
8)Corrects a technical oversight that eliminated the oversight
and audit responsibilities of the Department of Finance.
9)Improves annual legislative reporting requirements for the
Financial Information System for California, including
benefits from the project that were achieved during the
reporting period, and updates on the progress of meeting
specific project objectives.
10)Allows the State Public Works Board to reimburse any debt
service related to obligations issued or entered into by the
Regents of the University of California as interim financing
for a public building of the University of California that is
authorized to be financed.
11)Specifies that local government mandates suspended in the
2012-13 Budget Act shall also be suspended in 2013-14 and
2014-15, and there shall be no appropriation for payment of
reimbursement claims submitted for fiscal years 2012-13,
2013-14 and 2014-15.
12)Specifies that state employees shall participate in the
Personal Leave Program 2012 (PLP 2012), either as required by
a memorandum of understanding or by direction of the
California Department of Human Resources (CalHR) for excluded
employees. Under the provisions of this bill, an employee
participating in the PLP 2012 shall receive a reduction in pay
not greater than 5% and, in exchange, receive eight hours of
PLP 2012 leave credits on the first day of each monthly pay
period. For those state employees not subject to the PLP
2012, requires CalHR to adopt a plan to furlough those
employees one workday per calendar month for the period July
1, 2012, to June 30, 2013. Requires that reductions for
employee compensation for the period from July 1, 2012, to
June 30, 2013, apply to employees of the State Compensation
Insurance Fund. These statutory changes further implement
Control Section 3.90 of the Budget Act of 2012, which achieves
employee compensation-related savings of $402 million GF.
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13)Repeals the Filipino Employee Survey Mandate, a state mandate
that had been suspended since 1990.
14)Expands the ability of a city, county or a city and a county
to attract qualified research and development facilities by
paying an investment incentive until July 1, 2013. Capital
investment incentives are amounts up to the amount of ad
valorem property taxes paid by the qualified research and
development facility, less 25%.
15)Increases penalty for specified criminal offenses to fund the
operations of the Department of Justice forensic laboratories.
16)Provides "clean-up" language to remove from statute the
Franchise Tax Board's authority to collect delinquent accounts
for the Department of Industrial Relations (DIR). This
statutory authority is no longer needed; as of January 31,
2012, the Employment Development Department's Automated
Collection Enhancement System is collecting all delinquent
accounts for the DIR.
17)Revises the formula utilized by the Department of Veterans
Affairs to provide payments to County Veterans Service Offices
(CVSOs) to incentivize the offices' work helping veterans
receive federal benefits. Also directs the department to
review CVSOs and produce a best-practices manual to help
improve CVSO performance.
18)Allows the California Technology Agency to utilize a
negotiated process on Information Technology related
procurement contracts if certain criteria are met.
19)Removes the sunset date from the shift to the GF of excise
taxes on gasoline purchased for certain uses, thus allowing
the shift of these excise tax revenues to flow to the GF
indefinitely.
20) Directs the Agriculture Labor Relations Board to shift
$200,000 from the board's baseline appropriation to the
board's General Counsel. This is cost neutral to the
General Fund.
21)Contains an appropriation allowing this bill take effect
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immediately upon enactment.
FISCAL EFFECT : Creates a special deposit fund that will allow
the state to use $410.6 million from the National Mortgage
Settlement to offset GF costs, allows for the sale of state
property that can be deposited into the GF, and helps provide
for a balanced budget in future years by removing the sunset
date regarding excise taxes on gasoline purchased for specific
uses and extending a suspension of local mandates.
COMMENTS : This bill enacts various provisions to support the
2012 Budget Act, and among other things, improves oversight of
state technology procurement, enacts changes to help bring more
federal benefits to veterans, and makes changes to allow for a
structurally-balanced budget for the next four years.
Analysis Prepared by : Mark Martin / BUDGET / (916) 319-2099
FN: 0004202