BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW 
                              Senator Mark Leno, Chair
                                2015 - 2016 Regular 

          Bill No:            AB 1608         Hearing Date:    June 15,  
          2016
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          |Author:   |Committee on Budget                                   |
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          |Version:  |June 13, 2016    Amended                              |
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          |Urgency:  |Yes                    |Fiscal:    |Yes              |
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          |Consultant|Mark Ibele / Anita Lee / Samantha Lui                 |
          |:         |                                                      |
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                             Subject:  State government


          Summary:  This measure makes various statutory changes necessary to  
          implement the state administration related provisions of the  
          Budget Act of 2016.
          
          Background:  As part of the 2015-16 budget package, Assembly Bill 1608  
          makes various statutory changes to implement the budget act.

          Proposed  
          Law:  AB 1608 makes the following statutory changes to implement the  
           2016 -17 budget:
          
           Public Employees' Health Benefit Administrative Costs
           
          1.Conditions the expenditure of administrative expenses in the  
            Public Employees' Health Care Fund (HCF) and in the Public  
            Employees' Contingency Reserve Fund upon approval in the  
            annual budget act. This change discontinues the board of the  
            administration of the Public Employees' Retirement System use  
            of monies in the HCF to pay for other costs determined by the  
            board.

           Private Attorney General Act

           1.Makes various revisions to the Private Attorney General Act  
            (PAGA). This bill includes a $75 filing fee for new case  
            notices and any employer response to such notice, and requires  







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            online filing and transmission of all items submitted to the  
            Labor Workforce Development Agency (LWDA). This bill also  
            requires a copy of proposed settlement to be submitted to LWDA  
            at same that it is submitted to court, and requires parties to  
            provide the LWDA with a copy of the court's judgement. This  
            bill also extends various time lines, including the time LWDA  
            reviews new cases from 30 to 60 days, the time for LWDA to  
            notify parties of intent to investigate violation from 33 to  
            65 days, and provides LWDA with option to send notice to  
            extend the 120 day time limit for investigating and citing the  
            employer by an additional 60 days. The bill sunsets the 60 day  
            extension provision in July 1, 2021.   
            
          Public Works

           1.Extends the time an entity hauling ready-mixed concrete can  
            submit certified payroll records from three to five days. 

          2.Clarifies that the section does not apply to public works  
            contracts that are advertised for bid or awarded prior to July  
            1, 2016.

           Workforce Innovation Opportunity Act Data Sharing . 

          1.Provides the California Workforce Development Board and other  
            state agencies, such as the Chancellor of the California  
            Community Colleges, the California Superintendent of Public  
            Instruction, California Department of Rehabilitation, the  
            California Department of Social Services, access to any  
            relevant quarterly wage data for performance evaluation  
            purposes under the Workforce Innovation Opportunity Act  
            (WIOA), along with other groups, such as the Adult Education  
            Grant Consortia and the community college Strong Workforce  
            Taskforce. This bill also authorizes the Department of  
            Education to share necessary confidential information for  
            performance tracking purposes with the Employment Development  
            Department.

           Revenue and Expenditure Alignment of Various Special Funds  . 

          1.Aligns expenditure authority and special fund revenue from  
            various fees and permits to the appropriate program. 

          2.Remove caps on certain fees to give the Department of  








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            Industrial Relations the flexibility to set fees to cover the  
            costs of regulatory activities. 

          3.Abolishes certain funds with limited purposes and small  
            appropriations and redirect fee revenues to larger, general  
            purpose funds that would pay for program operations going  
            forward.

           State Buildings
           
          1.Establishes the State Project Infrastructure Fund and  
            continuously appropriates the moneys in that fund for state  
            projects, including state buildings and other facilities, and  
            for the state capitol annex project.
               a.     Subjects state projects to the approval and  
                 administrative oversight of the Department of Finance and  
                 the State Public Works Board, and requires the State  
                 Public Works Board to establish the scope, cost, and  
                 delivery method for each state project.
               b.     Authorizes the Joint Rules Committee to pursue the  
                 construction or renovation of a state capitol annex, to  
                 be administered and supervised by the Department of  
                 General Services, subject to review by the State Public  
                 Works Board, pursuant to an agreement with the Joint  
                 Rules Committee.

          2.Requires the Department of Finance to provide specified  
            notices to the Joint Legislative Budget Committee regarding  
            state projects, including a notice prior to the establishment  
            of the scope, cost, and delivery method. Requires the  
            Department of General Services to submit a quarterly report to  
            the status of each state project established by the State  
            Public Works Board to the Joint Legislative Budget Committee  
            and to the chairpersons of the Senate Committee on Budget and  
            Fiscal Review and the Assembly Committee on Budget.

          3.Regarding the capitol annex project, requires the Judicial  
            Council to adopt a rule establishing procedures applicable to  
            actions or proceedings brought to review, set aside, void, or  
            annul the certification of the environmental impact report  
            (EIR) for the project, or the granting of any approvals that  
            require the actions or proceedings be resolved, within 270  
            days of certification of the record of proceedings. Requires  
            draft and final EIR for the project to each include a notice  








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            containing specified information relating to required  
            procedures for judicial actions challenging the certification  
            of the EIR or the approval of the project described in the  
            EIR. Requires the lead agency to conduct an informational  
            public workshop and hold a public hearing on the draft EIR,  
            and prohibits a court from enjoining the construction or  
            operation of specified components of the project unless the  
            court makes specified findings.

          4.Transfers $1.3 billion from the General Fund to the State  
            Project Infrastructure Fund to be allocated upon direction of  
            the Director of Finance to the Controller, with $1.0 billion  
            allocated on or after July 1, 2016, and the remaining $300  
            million allocated after July 1, 2017, with funds to be used  
            for the construction or renovation of the state capitol annex  
            and for state projects.

           Amusement Park Ride  

          1.Eliminates redundant amusement park ride inspections, and  
            allows the Division of Occupational Safety and Health at the  
            Department of Industrial Relations to exercise its statutory  
            authority to inspect permanent amusement rides after receiving  
            notification of an injury accident and temporary amusement  
            rides when a ride is disassembled, moved, and reassembled.

           Tax Measures

           1.Clarifies that the Governor's Office of Business and Economic  
            Development (GO-Biz), may consider various criteria in  
            awarding tax credits pursuant to the he California Competes  
            program, including the following:
               a.     The financial solvency of the taxpayer and the  
                 taxpayer's ability to finance its proposed expansion.
               b.     The taxpayer's current and prior compliance with  
                 federal and state tax laws.
               c.     Current and prior litigation involving the taxpayer.
               d.     The reasonableness of the fee arrangement between  
                 the taxpayer and any third party providing any services  
                 related to the credit.
               e.     Any other factors deemed necessary for the purposes  
                 of accountability, transparency, and effectiveness.

          2.Due to a delay in the award of the contract by the federal  








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            government, extends by one-year to January 1, 2031, the  
            ability to claim a tax credit under the corporation tax  
            available to qualified taxpayers (prime contractor or major  
            first-tier contractor) for wages paid related to the new  
            advanced strategic aircraft program.

           Department of FI$Cal

           1.Establishes a new Department of FI$Cal (Financial Information  
            System for California), the state's single integrated  
            financial management system. It eliminates the executive  
            partner position and establishes the director for FI$Cal,  
            appointed by the Governor and subject to Senate confirmation.  
            FI$Cal would be located with the Government Operations Agency  
            upon acceptance of the system by the Director of Finance.  
           
           Other

           1.Makes other technical and conforming changes in law, related  
            to renaming the California Victim Compensation and Government  
            Claims Board (VCGCB) to the California Victim Compensation  
            Board and shifting the government claims portion of the VCGCB  
            to the Department of General Services.  
            
           2.Extends the period of time to June 30, 2017 for the State  
            Controller's Office 21st Century Project, consolidating state  
            payroll activities, for the purpose of completing final wind  
            down and assessment activities.

          3.Adjusts the role of the director, and the selection process  
            for the chair and vice-chair, of the California Travel and  
            Tourism Commission. 

          4.Requires that until July 1, 2019, the establishment of a  
            reasonable reimbursement methodology for reimbursing mandates  
            costs to local governments and school districts, be based on  
            audited costs of claims submitted to the State Controller. 

          Fiscal  
          Effect:  The funding related to the changes in this bill is contained  
          in the 2016-17 budget. In addition, the bill provides an  
          appropriation of $1.3 billion for the purposes of construction  
          or renovation of state buildings.
          








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          Support:   None on file. 
          
          Opposed:  None on file.
          

          
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