BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 1608|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
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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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