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 ----------------------------------------------------------------- |Author: |Committee on Budget | |----------+------------------------------------------------------| |Version: |June 13, 2016 Amended | ----------------------------------------------------------------- ---------------------------------------------------------------- |Urgency: |Yes |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Mark Ibele / Anita Lee / Samantha Lui | |: | | ----------------------------------------------------------------- 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 AB 1608 (Committee on Budget) Page 2 of ? 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 AB 1608 (Committee on Budget) Page 3 of ? 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 AB 1608 (Committee on Budget) Page 4 of ? 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 $300 million allocated after July 1, 2017, with funds to be used for the construction or renovation of the state capitol annex and for state projects. Amusement Park Ride 1.Eliminates redundant amusement park ride inspections, and allows the Division of Occupational Safety and Health at the Department of Industrial Relations to exercise its statutory authority to inspect permanent amusement rides after receiving notification of an injury accident and temporary amusement rides when a ride is disassembled, moved, and reassembled. Tax Measures 1.Clarifies that the Governor's Office of Business and Economic Development (GO-Biz), may consider various criteria in awarding tax credits pursuant to the he California Competes program, including the following: a. The financial solvency of the taxpayer and the taxpayer's ability to finance its proposed expansion. b. The taxpayer's current and prior compliance with federal and state tax laws. c. Current and prior litigation involving the taxpayer. d. The reasonableness of the fee arrangement between the taxpayer and any third party providing any services related to the credit. e. Any other factors deemed necessary for the purposes of accountability, transparency, and effectiveness. 2.Due to a delay in the award of the contract by the federal AB 1608 (Committee on Budget) Page 5 of ? government, extends by one-year to January 1, 2031, the ability to claim a tax credit under the corporation tax available to qualified taxpayers (prime contractor or major first-tier contractor) for wages paid related to the new advanced strategic aircraft program. Department of FI$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. AB 1608 (Committee on Budget) Page 6 of ? Support: None on file. Opposed: None on file. -- END --