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 --