BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1031
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          SENATE THIRD READING
          SB 1031 (Budget and Fiscal Review Committee)
          As Amended  August 23, 2012
          Majority vote.  Budget Bill Appropriation Takes Effect 
          Immediately 

           SENATE VOTE  :Vote not relevant  
           
           SUMMARY  :  Amends the 2012-13 Budget Act, which was adopted on 
          June 15, 2012, in AB 1464 (Blumenfield), Chapter 21, Statutes of 
          2012.  Specifically,  this bill  : 

          1)Includes a $29 million fund shift in the local assistance 
            budget item under the Judicial Branch.  One item was correctly 
            increased; however, the other budget item was mistakenly not 
            reduced.

          2)Extends the encumbrance period by two years to allow the 
            Department of Parks and Recreation to expend $6 million for 
            water, wastewater, and sewer system capital outlay projects in 
            state parks.

          3)Authorizes up to $2 million from the State Parks and 
            Recreation Fund (SPRF) for park operations at Del Norte Coast 
            Redwoods State Parks, Samuel P. Taylor State Park, and Tomales 
            Bay State Park.  Fees for these parks are collected by the 
            National Parks Services per federal agreements and deposited 
            in SPRF.  

          4)Provides that the Department of Finance shall conduct an audit 
            of the Renewable Resource Trust Fund and its related accounts 
            and provide a final audit report to the Legislature no later 
            than June 30, 2013.  This audit was inadvertently deleted in 
            the Resources Trailer Bill, SB 1018 (Budget and Fiscal Review 
            Committee), Chapter 39, Statutes of 2012. 

          5)Reduces the Budget appropriation for three Public Utilities 
            Commission programs: 

             a)   Universal Lifeline Telephone Service Trust 
               Administrative Committee Fund - $75 million reduction;

             b)   Deaf and Disabled Telecommunications Program 
               Administrative Committee Fund - $22 million reduction; and,








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             c)   California Teleconnect Fund Administration Committee 
               Fund - $15 million reduction.

             d)   These reductions are necessary to correct reporting 
               errors, which overstated use of these programs.

          6)Corrects a technical error in the 2012 Budget Act (that 
            resulted from the transfer of the Office of Family Planning 
            from the Department of Public Health to the Department of 
            Health Care Services), within which the General Fund 
            appropriations for the Office of Family Planning are 
            overstated by $2.035 million.

          7)Addresses an error in the 2012 Budget Act (that resulted from 
            the elimination of the Department of Mental Health (DMH) and 
            related transfer of programs and appropriations from DMH to 
            other departments), which transferred the balances of the DMH 
            appropriations to the Department of Health Care Services to 
            liquidate the appropriations and inadvertently excluded this 
            one appropriation.

          8)Corrects a technical error in the 2012 Budget Act that 
            resulted from the transfer of the Every Woman Counts (EWC) 
            program from the Department of Public Health to the Department 
            of Health Care Services, which inadvertently excluded 
            amendments to budget bill language needed to transfer the EWC 
            General Fund reappropriation language from one department to 
            the other.

          9)Reflects increased revenue from an extension to the gross 
            premiums tax on managed care organizations, which will not 
            take effect if such an extension does not occur, and this 
            revenue is not realized.

          10)Makes technical, no-cost corrections to the California Work 
            Opportunity and Responsibility to Kids (CalWORKs) Single 
            Allocation.  The Single Allocation provides funding for 
            counties' welfare-to-work services.  The corrections shift 
            unexpended funding from 2011-12 to the 2012-13 budget items, 
            allowing counties to fully serve and re-engage cases.  

          11)Removes the Student Records mandate from the list of 
            suspended mandates and adds a corresponding $1,000 








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            appropriation.  

          12)Adds four current and active mandates, which had been 
            unintentionally not included in the 2012 Budget Act, and 
            corresponding $1,000 appropriation for each mandate.  

          13)Includes budget bill provisional language, which has been 
            included in the past several budgets on General Obligation 
            bond funded University of California capital outlay projects, 
            to authorize expenditure of any savings as specified and 
            requires payment of prevailing wage rates. 

          14)Reinstates the expectation that the California State 
            University (CSU) will enroll a total of 331,716 state 
            supported full-time equivalent students during the 2012-13 
            academic year.  This enrollment target does not include 
            nonresident students and students enrolled in non-state 
            supported summer programs.  As a condition of receipt of state 
            General Fund in 2012-13, requires CSU to report to the 
            Legislature and to the Director of Finance by May 1, 2013, on 
            whether it has met the enrollment goal. 

          15)Provides the CSU a one-time authority, effective only for the 
            2012-13 fiscal year, to transfer funds from the State 
            University Continuing Education Revenue Fund or any other 
            revenues received from extension programs to mitigate impacts 
            to state-supported instructional programs that would result 
            from reductions in state General Fund appropriations or from 
            reductions in student fee revenues for support of the 
            university.  As a condition of this one-time authority, 
            requires CSU to report to the Legislature and to the Director 
            of Finance by June 30, 2013, on the impact of any transfer on 
            self-supporting instructional programs and related fees and 
            the use of any transferred funds. 

          16)Corrects a drafting error that inadvertently referenced the 
            Department of Education instead of the Board of Governors of 
            the California Community Colleges in the mandated programs 
            block grant budget item.
          17)Increases reimbursement authority to allow California 
            Department of Transportation (Caltrans) to charge local 
            transportation agencies for the development and oversight of 
            Project Initiation Documents (PIDs).  Local agencies will be 
            charged only for direct costs.








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          18)Provides appropriation authority to allow the Controller to 
            distribute California Police Activity League funds that are 
            collected through a tax check-off box.

          19)Provides $5 million General Fund to the Department of Finance 
            to distribute to counties for allowable costs associated with 
            the November 6, 2012, statewide election.

          20)Provides Control Section 3.90:  Ratifies addenda to the 
            contracts of Bargaining Units 2, 7 and 10 to reflect 
            reductions to employee compensation pursuant to the 2012 
            Budget Act.  In all, 19 bargaining units agreed to 
            compensation reductions.

          21)Contains an appropriation allowing this bill to take effect 
            immediately upon enactment.

           COMMENTS  :  This bill amends the original 2012-13 Budget Act, AB 
          1464 (Blumenfield), Chapter 21, Statutes of 2012, to reflect 
          technical corrections and other conforming changes. 


           Analysis Prepared by  :    Sara Bachez / BUDGET / (916) 319-2099


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