BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 854|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
UNFINISHED BUSINESS
Bill No: SB 854
Author: Senate Budget and Fiscal Review Committee
Amended: 6/12/14
Vote: 21
PRIOR VOTES NOT RELEVANT
ASSEMBLY FLOOR : Not available
SUBJECT : Budget Act of 2014: State and local government
SOURCE : Author
DIGEST : This bill makes various statutory changes necessary
to implement the general government-related provisions of the
Budget Act of 2014.
Assembly Amendments delete the Senate version of the bill, which
expressed legislative intent to enact statutory changes relating
to the Budget Act, and instead add the current language.
ANALYSIS : This bill includes the following key changes:
1. Transfers unencumbered funds within the State School
Deferred Maintenance Fund to the State School Utilization
Fund for the administration of the Leroy F. Greene School
Facilities Act of 1998.
2. Establishes that, beginning July 1, 2014, a contractor or
subcontractor would be required to register with the
CONTINUED
SB 854
Page
2
Department of Industrial Relations, pay an initial
nonrefundable registration fee of $300, pay an annual renewal
fee each July 1 thereafter, and as part of the registration
process, provide specified information to establish the
contractor's eligibility to be registered. Fee revenues will
be used for the reasonable costs of administering the
registration and qualification of contractors, the costs and
obligations associated with administration and enforcement
requirements related to prevailing wage responsibilities, and
public works projects monitoring and enforcement duties of
the Labor Commissioner.
3. Transfers authority for the management of state records from
the Department of General Services to the Secretary of State.
4. Authorizes the Department of Technology to require and
collect monthly payments for services provided to client
agencies.
5. Repeals the January 1, 2015, sunset date for the Department
of Technology.
6. Clarifies the names of various state entities.
7. Establishes a new State-County Assessor Partnership Program,
using a grant approach funded at $7.5 million. The program
is designed to improve property tax assessment for purposes
of the local property tax collections. Currently, neither
local schools nor the state contribute to local property tax
administration costs. Schools benefit from the property tax,
and the revenues offset state Proposition 98 costs. The
pilot program is funded for three years and requires a county
funding match equivalent to the state grant amount.
8. Contains provisions that allow for the distribution of local
property taxes that otherwise would continue to be impounded.
Under current law, certain property taxes, collected
pursuant to the supplemental roll, cannot legally be
distributed to local governments if all a county's school
districts are basic aid. The bill addresses this technical
issue and allow for the distribution of these "stranded"
property taxes. When all of a county's K-12 schools are
basic aid, the property tax that currently cannot be
CONTINUED
SB 854
Page
3
distributed to these schools, would be redistributed to the
county, County Office of Education, Community Colleges,
cities, and special districts. The distribution would be
proportionate to each affected taxing entity's share of the
"AB 8 base."
9. Clarifies that the Department of Finance, the Controller,
the Treasurer, and the Department of General Services are to
collaboratively develop, implement, and maintain, the
Financial Information System of California (FI$Cal) to be
used upon full implementation by all state departments and
agencies. Creates a FI$Cal Consolidated Payment Fund for the
distribution of consolidated payments to payees that would
have otherwise been appropriated through the State Treasury.
This bill also includes a requirement that a background check
be conducted on all individuals that are employees,
prospective employees, subcontractors, volunteers, or
vendors, prior to working within specific offices of the
FI$Cal service center.
10.Extends the Controller's authority to procure, modify, and
implement the 21st Century Project, a human resource
management system, until June 30, 2015.
11.Current law requires that upon completion of a capital
outlay project, or a design-build project, any remaining
funds in the construction reserve fund must be used to offset
rental payments. This bill contains a provision that would
delete the offset requirement for both capital outlay and
design-build projects.
12.Existing law authorizes the Victims Compensation and
Government Claims Board to administer, upon appropriation by
the Legislature, a grant program to Trauma Recovery Centers.
This bill makes the Trauma Recovery Center grant program,
administered by the Victims Compensation and Government
Claims Board, permanent.
13.The Local Agency Investment Fund, operated by the State
Treasurer, allows agencies to invest funds not needed for
immediate purposes. As a result of low-interest rates, the
earnings used to pay for administering the fund are
inadequate to cover administrative costs. This bill
increases the maximum amount of earnings that may be used to
CONTINUED
SB 854
Page
4
cover these costs when certain conditions exist.
14.Limits specified costs for issuing commercial paper notes to
three percent of the maximum principal amount of commercial
paper notes that could be purchased, and are outstanding at
any one time, pursuant to an agreement, or 0.25% of the
highest sum of the maximum principle amount authorized by
certain resolutions.
15.Provides for a phased application of salary increases to
managers and supervisors of State Bargaining Unit 9 and State
Bargaining Unit 10, effective July 1, 2014.
16.Establishes an account in the Public Employees' Reserve Fund
for the deposit of contributions towards premiums.
17.Abolishes the California Housing Trust Fund, and transfers
the remaining balance, assets, liabilities, and encumbrances
to the Housing Rehabilitation Loan Fund. This bill also
abolishes the School Facilities Fee Assistance Fund, and
designates the General Fund as the successor fund for any
loan repayments. Both of the abolished funds are
administered by the Department of Housing and Community
Development.
18.Identifies the Department of Housing and Community
Development as an eligible recipient of up to $11 million in
Proposition 1C funding, for the rehabilitation and deferred
maintenance of state-owned migrant centers through the Office
of Migrant Services.
19.Removes the direct appropriation to the California Military
Museum, and, instead appropriates the funds to the Military
Department for the purposes of operating the California State
Military Museum and Resource Center.
20.Existing law provides that the express factual findings made
by a court in considering a petition for habeas corpus is
binding on the Attorney General, the factfinder, and the
California Victim Compensation and Government Claims Board.
This bill clarifies that the court, for purposes of those
provisions governing binding factual allegations and express
factual findings, is defined as either state or federal
court.
CONTINUED
SB 854
Page
5
21.Existing law establishes the Victim-Witness Assistance Fund,
to be administered by the Office of Emergency Services. Funds
within the account are to be made available to any public, or
private, non-profit agency, for the assistance of victims and
witnesses. This bill clarifies that these funds are to be
used for any purpose that supports victims.
22.Deletes the requirement that Orange County maintain two
auditors, a provision that was unique to Orange County.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: Yes
According to the Senate Budget and Fiscal Review Committee, this
bill appropriates $2,000,000 from the General Fund to the
Governor's Office of
Business and Economic Development on a one-time basis to be used
to draw down federal funding in support of the Small Business
Center Network Program. The funds shall remain for encumbrance
and expenditure until June 30, 2017.
AB:nl 6/15/14 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
**** END ****
CONTINUED