BILL ANALYSIS Ó AB 117 Page 1 (Without Reference to File) CONCURRENCE IN SENATE AMENDMENTS AB 117 (Committee on Budget) As Amended June 16, 2015 Majority vote. Budget Bill Appropriation Takes Effect Immediately -------------------------------------------------------------------- |ASSEMBLY: |51-27 |(March 23, |SENATE: | |(June 19, 2015) | | | |2015) | | | | | | | | | | | | | | | | | | -------------------------------------------------------------------- (vote not relevant) (vote not available) Original Committee Reference: BUDGET SUMMARY: Includes a statutory provision related to general government necessary to enact the 2015 Budget Act. Specifically, this bill: 1)Aligns appropriation language contained in the Insurance Law related to debentures with language in the General Obligation (GO) bonds. This amendment would conform the Insurance Law AB 117 Page 2 with GO Bond acts to ensure that debentures are paid on a payable schedule identical to GO bonds. 2)Requires the State Treasurer to take appropriate steps to provide that interest on the debentures is exempt from the federal taxation. 3)Amends existing law that provides that in the event that the fund fails to pay the principal or interest on debentures issued, then the State Treasurer is required to pay out of money in the State Treasury to instead require the General Fund to pay the funds. 4)Provides a one-year extension for the Jobs and Economic Improvement Through Environmental Leadership Act of 2011 (Act). Under current law, the Act created an expedited judicial review procedures under the California Environmental Quality Act (CEQA) for various types of infill site projects, clean renewable energy projects, and clean energy manufacturing projects. FISCAL EFFECT: Statutory changes contained in this bill related to state costs are consistent with the 2015-16 budget package. COMMENTS: The trailer bill language is technical and ensures that debentures be paid on par with the State's General Obligation bonds. The proposed change was brought about when the Treasurer's Office was reviewing where the state could be vulnerable. The impact of the proposed amendment is limited to the California Health Facility Construction Loan Insurance Law contained in Health and Safety Code Sections 129000 through 129355. Additionally, the trailer bill language would provide a one year extension for the Act. Analysis Prepared by: Genevieve Morelos / BUDGET / (916) 319-2099 FN: AB 117 Page 3 0000991