BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 86
                                                                  Page  1


          SENATE THIRD READING
          SB 86 (Budget and Fiscal Review Committee)
          As Amended  June 12, 2013
          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 2013 relating to general government.  
           Specifically,  this bill:  

          1)Extends the liquidation period from June 30, 2015, to June 30,  
            2017, for funds previously appropriated from the Regional,  
            Planning, Housing and Infill (ILG) Incentive Account and the  
            Transit Oriented Development (TOD) Implementation Fund under  
            Proposition 1C.

          2)Requires the Department of Housing and Community Development  
            to amend the guidelines with revised performance-based  
            milestones and to evaluate the revised performance-guidelines  
            on a project by project basis.  

          3)Prepares for the end of the triple flip by outlining a process  
            to provide compensation to cities and counties once the  
            mechanism is no longer needed to pay for the Economic Recovery  
            Bonds, including redefining the fiscal adjustment period,  
            requiring the Director of Finance to estimate when the  
            notification to the State Board of Equalization is likely to  
            occur, and requiring the Director of Finance to revise the  
            countywide adjustment once notification occurs.

          4)Requires any taxpayer who participates in an out-of-state  
            Like-Kind Exchange to file an informational return form with  
            the Franchise Tax Board when the property acquired in the  
            exchange is located outside of California. 

          5)Allocates any moneys allocated and appropriated that become  
            disencumbered and redeposited in the Transit-Oriented  
            Development Account during fiscal year 2013-14.  This is  
            technical modification to be consistent with AB 1585 (John A.  
            P�rez), Chapter 777, Statutes of 2012.  

          6)Contains an appropriation allowing this bill to take effect  








                                                                  SB 86
                                                                  Page  2


            immediately upon enactment. 

           COMMENTS  :  This bill enacts various provisions to support the  
          2013 Budget Act, and among other things, extends the liquidation  
          period for previously appropriated ILG and TOD Proposition 1C  
          funds, and provides a process for the end of the triple flip.  


           Analysis Prepared by  :    Genevieve Morelos / BUDGET / (916)  
          319-2099


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