BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1608|
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THIRD READING
Bill No: AB 1608
Author: Committee on Budget
Amended: 6/14/16 in Senate
Vote: 21
SENATE BUDGET & FISCAL REVIEW COMMITTEE: 11-5, 6/15/16
AYES: Leno, Beall, Block, Glazer, Hancock, Mitchell, Monning,
Pan, Pavley, Roth, Wolk
NOES: Nielsen, Anderson, Moorlach, Nguyen, Stone
NO VOTE RECORDED: Allen
ASSEMBLY FLOOR: Not relevant
SUBJECT: State government
SOURCE: Author
DIGEST: This bill makes various statutory changes necessary to
implement the state administration-related provisions of the
Budget Act of 2016.
ANALYSIS: This bill 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
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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
2) 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 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. This bill sunsets the 60 day extension provision in
July 1, 2021.
Public Works
3) Extends the time an entity hauling ready-mixed concrete can
submit certified payroll records from three to five days.
4) 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.
5) Provides the California Workforce Development Board and
other state agencies, such as the Chancellor of the
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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.
6) Aligns expenditure authority and special fund revenue from
various fees and permits to the appropriate program.
7) Remove caps on certain fees to give the Department of
Industrial Relations the flexibility to set fees to cover the
costs of regulatory activities.
8) 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
9) 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
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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.
10)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.
11)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
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.
12)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 State Controller, with $1.0
billion allocated on or after July 1, 2016, and the remaining
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$300 million allocated after July 1, 2017, with funds to be
used for the construction or renovation of the state capitol
annex and for state projects.
Amusement Park Ride
13)Eliminates redundant amusement park ride inspections, and
allows the Division of Occupational Safety and Health at the
Department of Industrial Relations to exercise its statutory
authority to inspect permanent amusement rides after
receiving notification of an injury accident and temporary
amusement rides when a ride is disassembled, moved, and
reassembled.
Tax Measures
14)Clarifies that the Governor's Office of Business and
Economic Development (GO-Biz), may consider various criteria
in awarding tax credits pursuant to the he California
Competes program, including the following:
a) The financial solvency of the taxpayer and the
taxpayer's ability to finance its proposed expansion.
b) The taxpayer's current and prior compliance with
federal and state tax laws.
c) Current and prior litigation involving the taxpayer.
d) The reasonableness of the fee arrangement between the
taxpayer and any third party providing any services
related to the credit.
e) Any other factors deemed necessary for the purposes of
accountability, transparency, and effectiveness.
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15)Due to a delay in the award of the contract by the federal
government, extends by one-year to January 1, 2031, the
ability to claim a tax credit under the corporation tax
available to qualified taxpayers (prime contractor or major
first-tier contractor) for wages paid related to the new
advanced strategic aircraft program.
Department of FI$Cal
16)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
17)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.
18)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.
19)Adjusts the role of the director, and the selection process
for the chair and vice-chair, of the California Travel and
Tourism Commission.
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20)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: Appropriation: Yes Fiscal
Com.:YesLocal: Yes
SUPPORT: (Verified6/15/16)
None received
OPPOSITION: (Verified6/15/16)
None received
Prepared by:Farra Bracht/Mark Ibele/Anita Lee/Samantha Lui / B.
& F.R. / (916) 651-4103
6/17/16 14:58:01
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