BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 114|
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THIRD READING
Bill No: AB 114
Author: Committee on Budget
Amended: 6/11/15 in Senate
Vote: 21
SENATE BUDGET & FISCAL REVIEW COMMITTEE: 15-0, 6/15/15
AYES: Leno, Nielsen, Allen, Beall, Block, Hancock, Mitchell,
Monning, Moorlach, Nguyen, Pan, Pavley, Roth, Stone, Wolk
NO VOTE RECORDED: Anderson
ASSEMBLY FLOOR: Not relevant
SUBJECT: Public works: building construction
SOURCE: Author
DIGEST: This bill is necessary for the enactment of the 2015
Budget Act and makes various changes relating to public works
and debt.
ANALYSIS: This bill makes certain technical and clarifying
changes to facilitate the financing of capital projects.
Specifically, this bill:
1)Reduces the amount of authorized revenue bonds, notes, or bond
anticipation notes that may be issued to finance the
acquisition, design or construction of approved certain local
jail facilities from $365.8 million to $340.9 million;
increases the amount of authorized revenue bonds, notes, or
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Page 2
bond anticipation notes that may be issued to finance the
acquisition, design or construction of approved other local
jail facilities from $854.2 million to $870.1 million; and
increases the amount of authorized revenue bonds, notes, or
bond anticipation notes that may be issued to finance the
acquisition, design or construction of approved adult local
criminal justice facilities from $500.0 million to $509.1
million.
2)Expands the performance criteria for public works projects to
include concept drawings, which may include schematic or
architectural renderings.
3)Repeals the provisions allowing for the appointment of
deputies to the State Public Works Board (SPWB) by the
Director of Transportation and the Director of General
Services.
4)Adopts new rules for the conveyance of a public building to
the state agency that had jurisdiction of the property prior
to the SPWB financing, once the facility is no longer required
as pledge for payment.
5)Removes the sunset date of July 1, 2015, for the provision
that allows the SPWB to enter into an asset transfer and lease
for purposes of securing the payment of debt service and
facilitate the completion of public works projects. Requires
the Department of Finance to report to the fiscal committees
of the Legislature, on the use of this asset transfer
authority by the SPWB by June 30, 2017.
6)Eliminates dated provisions of law that relate to coupon
bonds, adjusts provisions relating to the determination of the
net interest costs to the state of bond financing, and
increases flexibility with respect to issuance of bonds based
on par values and how bids are submitted to the State
Treasurer.
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7)Specifies that the method for determining the lowest interest
cost bid by the State Treasurer shall be limited to either the
net interest cost method (determined to be the total amount of
interest, less the total amount of the premium, plus the total
amount of the discount) or the true interest cost method
(determined to be the nominal interest rate when compounded
semiannually, used to discount debt service payments to the
date of the bonds).
8)Effectuates certain other technical changes regarding
administrative processes for public works projects.
FISCAL EFFECT: Appropriation: Yes Fiscal
Com.:YesLocal: No
SUPPORT: (Verified 6/12/15)
None received
OPPOSITION: (Verified 6/12/15)
None received
Prepared by:Mark Ibele / B. & F.R. / (916) 651-4103
6/15/15 13:06:11
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