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  
          immediately upon enactment. 








                                                                SB 86
                                                                Page  2



         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


        *This bill is pending in the Assembly Budget Committee.  


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