BILL ANALYSIS Ó SB 85 Page 1 SENATE THIRD READING SB 85 (Budget and Fiscal Review Committee) As Amended June 12, 2013 Majority vote. Budget Bill Appropriation Takes Effect Immediately SUMMARY : Contains provisions related to transportation necessary to implement the 2013-14 Budget package. Specially, this bill : 1)Creates a direct payment account for debt service from weight fees, rather than using weight fees to reimburse the General Fund. The direct payment would improve the credit rating for these bonds and allow the state to issue bonds at yields 40-50 basis points lower than other General Obligation (GO) bonds. 2)Continues the dedication of certain special fund revenues associated with transportation to debt service payments associated with transportation projects. 3)Includes language to specify cash accounting methods for special funds. 4)Provides the High Speed Rail Authority with authority to establish a process and rules for the relocations of utilities outside the right-of-way for the High-Speed Rail project. The process is modeled after procedures already in place for the California Department of Transportation (Caltrans) projects. 5)Contains an appropriation allowing this bill to take effect immediately upon enactment. FISCAL EFFECT : The provisions of this bill result in an ongoing savings of $67 million General Fund, which are included in the overall architecture of the 2013-14 budget package. COMMENT : This bill is the transportation budget trailer bill associate with the 2013-14 Budget package. It makes necessary changes to statute to achieve these savings and also to improve the overall state's financial position in terms of cash management and credit rating of state bonds. Analysis Prepared by : Christian Griffith / BUDGET / (916) SB 85 Page 2 319-2099 FN: 0001166