BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 1476
          Author:   Assembly Budget Committee
          Amended:  8/28/14 in Senate
          Vote:     21


           SENATE BUDGET & FISCAL REVIEW COMMITTEE  :  13-2, 8/14/14
          AYES:  Leno, Nielsen, Beall, Berryhill, Block, Corbett, Jackson,  
            Liu, Mitchell, Monning, Roth, Torres, Wyland
          NOES:  Anderson, Morrell
          NO VOTE RECORDED:  Hancock

           SENATE BUDGET & FISCAL REVIEW COMMITTEE  : 9-3, 8/29/14
          AYES: Leno, Beall, Block, Corbett, Jackson, Liu, Monning, Roth,  
            Torres
          NOES: Nielsen, Morrell, Wyland
          NO VOTE RECORDED: Anderson, Berryhill, Hancock, Mitchell

           ASSEMBLY FLOOR  :  Not relevant


           SUBJECT  :    Budget Act of 2014

           SOURCE  :     Author


           DIGEST  :    This bill amends the Budget Act of 2014 by revising  
          various items of appropriation and making other necessary  
          changes. 

           ANALYSIS  :    The Legislature passed the 2014 Budget Act (SB 852,  
          Senate Budget and Fiscal Review Committee, Chapter 25) on June  
          15, 2014.  The legislation was signed by the Governor on June  
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          20, 2014.  This bill provides for certain technical adjustments  
          to various Budget items, clarifications of Budget Bill language,  
          and additional appropriations.

          This bill provides for the following:

           1.K-12 Education Administrator Induction Programs  .  Clarifies  
            that $600,000 in one-time carryover funds, provided to support  
            administrator induction programs approved by the Commission on  
            Teacher Credentialing (CTC), are to be transferred to the CTC  
            by the Department of Education (CDE).  Further, specifies that  
            CDE shall not use any of the funds for indirect administrative  
            costs. 

           2.K-12 High-Speed Network  .  Re-appropriates $26.7 million to  
            CDE, for allocation to the K-12 High-Speed Network, for  
            specified activities related to Internet network connectivity.

           3.Special Education Expenditures  .  Re-appropriates $12.9 million  
            for CDE to allocate to local educational agencies for special  
            education-related expenditures.  This action is necessary in  
            order to implement the Legislature's approval of the  
            Governor's proposed appropriation of $12.9 million in  
            one-time, rather than ongoing, Proposition 98 funds for  
            special education.

           4.State Preschool Program Rate  .  Specifies that the part-day,  
            per-student rate for the state preschool program is $22.28  
            per-day, rather than $22.81.  This reflects the 5% rate  
            increase that was agreed upon as part of the 2014-15 Budget  
            (rather than a 7% increase that was erroneously included).

           5.Child Care Facilities Revolving Fund  .  Specifies that $10  
            million in Proposition 98 General Fund for facilities-related  
            loans to state preschool program providers must be transferred  
            to the Child Care Facilities Revolving Fund.  The amendment  
            ensures that this funding remains in the revolving fund,  
            rather than reverting.

           6.Regional Market Rate  .  Clarify that the regional market rate,  
            which is used to reimburse child care providers who accept  
            vouchers, is set at the 85th percentile of the 2009 Regional  
            Market Rate Survey, as reduced by a deficit factor of 10.11%.   
            This amendment aligns the deficit factor to the amount of  

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            funding appropriated in SB 852 (Senate Budget and Fiscal  
            Review Committee, 
          Chapter 25, Statutes of 2014).

           7.Office of Planning and Research  .  Eliminates $5 million in  
            funding from the Office of Planning and Research budget, for  
            social innovation bonds designed to reduce prison recidivism.   
            The $5 million will be shifted to the Board of State and  
            Community Corrections in AB 1479 (Budget), the public safety  
            clean-up trailer bill, for the same purpose. 

           8.Department of Transportation, Intercity Rail Contracts  .   
            Increases the appropriation for the intercity passenger rail  
            service operated by Amtrak to reflect the previously approved  
            $10.4 million increase in operating expenses.

           9.Judicial Branch  .  Appropriates $27 million from the Judicial  
            Branch's Immediate and Critical Needs Account for preliminary  
            plans and working drawings for the New Sacramento Court House.

           10.County Probation Departments  .  Clarifies that additional  
            funding provided to county probation departments is intended  
            as a limited-term increase to address the population increase  
            that resulted from the Three Judge Panel court issued order on  
            February 10, 2014.

           11.University of California (UC) and California State University  
            (CSU)  .  Provides $100 million General Fund ($50 million to  
            each the UC and CSU) for one-time purposes, including deferred  
            maintenance, and includes Legislature intent that, if the  
            economy continues to recover and General Fund revenues exceed  
            projections, the augmentation shall become on-going.

           12.UC and CSU Sustainability Plans  .  Clarifies goal-setting  
            requirements of sustainability plans that must be developed by  
            the UC and CSU.  In addition, specifies that the CSU is to  
            submit the plan to the Governor and the Legislature by  
            November 30, 2014.  This requirement was inadvertently omitted  
            from 
          SB 852.

           13.California Community Colleges Student Equity Plans  .   
            Clarifies provisional language by specifying that $70 million  
            is to be allocated by the California Community College's (CCC)  

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            pursuant to Student Equity Plans.

           14.California Community Colleges Matching Requirement  .  Removes  
            a dollar-for-dollar district match requirement for CCC  
            architectural barrier removal.  The Budget Act attempted to  
            remove all matching requirements from the physical plant and  
            instructional equipment categorical.  This matching  
            requirement was inadvertently left in SB 852.

           15.California Community Colleges Disabled Student Program  .   
            Reduces the amount of CCC Disabled Student Program funding  
            earmarked for education at state developmental centers from  
            $1.7 million to $1 million.  The number of centers that are  
            funded through this program has been reduced from three to  
            two.

           16.Employment Training Fund  .  Appropriates $10 million from the  
            Employment Training Fund for the Employment Training Panel.

           17.State Vision Costs  .  Appropriates $878,000 ($441,000 General  
            Fund) to update vision costs in Item 9800, pursuant to the  
            Affordable Care Act.  These costs were mistakenly omitted from  
            SB 852 when requesting increases for overall statewide  
            healthcare costs.

           18.Unaccompanied Undocumented Minors  .  Adds $3 million General  
            Fund ($2.9 million for local assistance and $100,000 for state  
            operations) to the Department of Social Services'  
            appropriation for contracts with qualified non-profit legal  
            organizations to provide legal counsel to unaccompanied  
            undocumented minors who are transferred to the care and  
            custody of the federal Office of Refugee Resettlement and  
            present in California. 

           19.Information Technology Reporting Requirements  .  Clarifies  
            that planned risk/issue mitigation reporting requirements are  
            the responsibility of the department implementing the  
            information technology project, rather than the California  
            Department of Technology. 

           20.Environmental Justice Grants  .  Clarifies funding for  
            environmental justice grants, appropriated to the Secretary  
            for Environmental Protection, is contingent upon revenues  
            received.

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           21.Marijuana Enforcement  .  Clarifies that funds appropriated for  
            marijuana enforcement, from the waste discharge permit fund,  
            are subject to separate accounting.

           22.Intervenor Compensation  .  Clarifies the appropriation related  
            to intervenor compensation and allows for the appropriation of  
            funding to Avondale Glen Elder Neighborhood Association.

           23.Groundwater Management  .  Includes an appropriation for  
            $500,000 for Salinas Valley groundwater management that was  
            inadvertently omitted from the Budget bill.

           24.Governor's Office of Emergency Services  .  Includes an  
            appropriation of $10 million for support of the Office of  
            Emergency Services for administrative costs associated with  
            the implementation of the railroad tank car hazardous material  
            fee pursuant to separate legislation.

           25.Public Utilities Commission  .  Includes a loan of $10 million  
            from the High-Cost Fund-B Administrative Committee Fund to the  
            Office of Emergency Services.  The loan is required to be  
            repaid no later than July 1, 2017.

           Comments

           On August 14, 2014, the Senate Budget and Fiscal Review  
          Committee heard and passed AB 1476 on a 13-2 vote.  AB 1476 was  
          re-referred to the Committee to review amendments pertaining to  
          UC and CSU; unaccompanied undocumented minors; the Governor's  
          Office of Emergency Services; and, the Public Utilities  
          Commission.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Budget and Fiscal Review Committee,  
          contains various minor appropriations, corrects for a $10.5  
          million under-appropriation, corrects an error made to a rate  
          adjustment, and corrects certain other appropriations contained  
          in the 2014-15 Budget.

           SUPPORT  :   (Verified  8/29/14)


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          California Immigrant Policy Center
          Catholic Charities of California United
          Friends Committee on Legislation of California
          Latino Coalition for a Healthy California
          League of United Latin American Citizens
          National Council of Jewish Women - California
          United Farm Workers


          JA:e  8/28/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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