BILL ANALYSIS Ó
AB 114
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(Without Reference to File)
CONCURRENCE IN SENATE AMENDMENTS
AB
114 (Committee on Budget)
As Amended June 11, 2015
Majority vote. Budget Bill Appropriation Takes Effect
Immediately
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|ASSEMBLY: | |(March 23, |SENATE: | |(June 15, 2015) |
| | |2015) | | | |
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(vote not relevant) (vote not available)
Original Committee Reference: BUDGET
SUMMARY: Makes statutory changes related to public works that
are necessary to implement the 2015-16 budget package.
Specifically, this bill:
1)Eliminates a sunset on the Public Works Board's (Board)
authority to issue lease-revenue bonds for asset transfer
authority.
AB 114
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2)Clarifies that the jurisdiction of State properties for which
the Department of General Services (DGS) has no
responsibility.
3)Makes technical and clarifying changes to conform statute with
current practice regarding the sale of bonds by the Treasurer.
4)Adjusts the authorized amount of funding for local public
safety infrastructure bond, as authorized by AB 900 (Solorio),
Chapter 7, Statutes of 2007, so that the first phase of
funding is decreased from $366 million to $341 million and the
second phase of funding is increased from $854 million to $870
million.
5)Increases the authorization to be used for adult local
criminal justice facilities, pursuant to SB 1022 (Budget and
Fiscal Review Committee), Chapter 42, Statutes of 2012, from
$500 million to $509 million.
FISCAL EFFECT: This bill increases the total authorization for
adult local criminal justice facilities by $9 million.
COMMENTS: This budget trailer bill implements statutory changes
related to public works that were adopted as part of the 2015-16
budget process. The proposed Trailer Bill Language eliminates a
July 1, 2015, sunset on the Board's current authority to
authorize lease-revenue bonds for asset transfer authority. The
asset transfer authority allows the Board to sell bonds on a
completed project (and encumber that facility) and use the bond
proceeds to fund the design and or construction of another
legislatively authorized project(s). The language also proposes
to correct jurisdiction of property going to DGS for which DGS
has no responsibility and instead directs the property directly
to the department with jurisdiction, allowing that department to
retain title upon the final payment of a lease revenue bond.
This amendment results in increased governmental efficiency by
eliminating paperwork to correct the unintended consequences of
the statute as currently worded. This bill contains other
technical changes such as changing the criteria the Board uses
to evaluate projects and the methodology for the sale of bonds
by the Treasurer.
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1)This bill would also decrease the authorization for revenue
bonds, notes, or bond anticipation notes as authorized for the
first phase of funding pursuant to AB 900 from $366 million to
$341 million and increase the amount authorized in the second
phase of AB 900 funding from $854 million to $870 million.
2)This bill would also increase the authorization to be used for
adult local criminal justice facilities, pursuant to SB 1022,
from $500 million to $509 million.
Analysis Prepared by:
Christian F. Griffith / BUDGET / (916) 319-2099
FN:
0000935