BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 84| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 84 Author: Committee on Budget and Fiscal Review Amended: 6/16/15 Vote: 21 SENATE FLOOR: Not relevant ASSEMBLY FLOOR: Not available SUBJECT: State government SOURCE: Author DIGEST: This bill, as part of the 2015-16 Budget package, makes various statutory changes to implement the Budget Act. Assembly Amendments delete the Senate version of the bill and insert the current language. ANALYSIS: This bill includes the following key changes: 1) District Hospitals. Clarifies the identification requirements contract employees that perform services specifically in the emergency department of a district hospital. 2) Surplus Property. Requires that agricultural district associations report their real property information to the SB 84 Page 2 Department of General Services, and includes additional reporting requirements associated with the disposition of surplus property. 3) Merger of Missing Children Reward Program with the Restitution Fund. Existing law establishes the Missing Children Reward Fund, which authorizes the California Victim Compensation and Government Claims Board to make cash rewards from the fund to persons that provide information leading to the location of any child listed in the missing children registry. This bill transfers any remaining funds from the Missing Children Reward Fund to the Restitution Fund, and authorizes the provision of cash rewards from the Restitution Fund. 4) Statewide Disability Access. Requires local entities collecting fees associated with the Certified Access Specialist Program (CASP) to report their activities associated with the administration of the program to the Division of the State Architect. The Division of the State Architect would then be responsible for developing a report identifying the total amount of fees collected by each city, county, or city and county. 5) Hazardous Material by Rail. Requires that the Office of Emergency Services, in consultation with relevant local and state agencies, develop and adopt a state fire service and rescue emergency mutual aid plan that would serve as an annex to the State Emergency Plan. This bill also creates the Regional Railroad Accident Preparedness Response Force within the Office of Emergency Services. The force would be responsible for providing response capabilities in the event of the release of hazardous materials that were being transported by rail. This bill also requires that the Director of the Office of Emergency Services establish a schedule of fees to be paid by any entity owning any of the 25 most hazardous materials, as defined. The fee must be fair, and the Director is required to consider the adjustment of the fee structure every three years. This bill creates an advisory committee that is responsible for the consultation of the fee. This bill creates the Regional Railroad Accident Preparedness and Immediate Response Fund within the state SB 84 Page 3 treasury, where the collection of the fees would be deposited, and limits the collection into the fund at $10 million annually, and a total amount not to exceed $20 million. 6) Human Trafficking Victim Assistance Fund. Creates the Human Trafficking Victim Assistance Fund within the State Treasury. The Office of Emergency Services would be responsible for the administration of the fund, and would distribute grants to non-profit organizations that meet certain criteria. 7) 21st Century Project. Existing law authorizes the State Controller to access funds within the State Treasury for the purposes of implementing a new human resources management system - referred to as the 21st Century Project. This bill provides the State Controller with authority to access funds within the State Treasury until June 30, 2016. 8) Public Employees' Retirement Provisions. The Public Employees' Retirement Law (PERL) permits a retired person to serve as an elected official without reinstatement from retirement or a loss of benefits, provided that his or her retirement allowance is suspended to the extent that the allowance is based on service in that elective office. The PERL also permits a person retired for disability to serve without reinstatement if the person is below the retirement age for persons in the job and he or she is not disabled for employment. In this circumstance, the PERL prohibits service in the same member classification and requires reduction of the person's disability retirement pension during their employment to an amount that, when added, to his or her compensation equals the maximum compensation earned by a person holding the position that he or she held at retirement. This bill reenacts these provisions regarding service after retirement, on or after the effective date of the California Public Employees' Pension Reform Act of 2013 (PEPRA). 9) Additional Appointments. Further defines the term "additional appointment", and requires the Department of Human Resources to adopt policies to advise state agencies regarding the procedures and appropriate use of additional SB 84 Page 4 appointments. 10)Electronic Recording. The Electronic Recording Delivery Act of 2004 allows for a county recorder, after certain criteria have been met, to create an electronic recording delivery system for digitized and electronic records, which are subject to system certification, regulation, and oversight by the Attorney General. Existing law authorizes the Attorney General to charge a fee directly to a vendor for the purposes described above. Existing law requires that fees paid to the Attorney General are to be deposited into the Electronic Recording Authorization Account, which is a Special Deposit Fund within the State Treasury. This bill redesignates the Electronic Recording Authorization Account in the Special Deposit Fund as the Electronic Recording Authorization Fund within the State Treasury. 11)Drought Housing Relocation Assistance. Authorizes the Housing and Community Development Department to provide temporary assistance, under certain circumstances, for persons moving out of a housing unit due to a lack of potable water resulting from the drought. This program sunsets on June 30, 2017. Makes Office of Migrant Services housing centers available for rent by persons or families rendered homeless or at risk of becoming homeless as a result of the drought. 12)Earthquake Loss Mitigation. Recognizes the existence of the California Residential Mitigation Program (CRMP), a joint powers authority created by an agreement in 2012 between the California Earthquake Authority and the Office of Emergency Services. This bill requires that the CRMP design and implement a grant program that will be provided to qualifying homeowners to defray costs associated with a seismic retrofit. 13)Inspection Prioritization. Requires the Division of Occupational Safety and Health to prioritize the investigation of accidents that involve death or serious injury and complaints that allege serious violation over non-serious complaints. SB 84 Page 5 14)Conveyance Inspections. Suspends, for fiscal year 2015-16, the fee for annual inspection of elevators. In fiscal year 2016-17, and every year thereafter, the Director of Industrial Relations, upon concurrence from the Department of Finance, would have the authority to suspend or reduce the fee on a one-time basis when the funds are sufficient in the Elevator Safety Account to meet its purpose. 15)Public Contracts: Public Bidding. Authorizes a specific contract between the Office of Planning and Research, the University of California Regents, or an auxiliary organization of the California State University to include a subcontract that is not subject to certain bidding requirements until January 1, 2019. 16)California Immigrant Integration. Establishes the Director of Immigrant Integration, under the Office of the Governor, and provides statewide leadership on the administration, assessment, and planning efforts of immigrant integration efforts in California. This bill also creates the immigrant integration fund within the State Treasury. 17)Collection of Charges by Franchise Tax Board. Expands the types of vehicle-related charges that are collected by the Franchise Tax Board (FTB) to include unpaid tolls, toll evasion penalties, or any related administrative or service fees. Under current law, the FTB is responsible for collecting certain delinquencies related to vehicles including registration fees, transfer fees, and parking violation penalties. 18)Prepaid Mobile Telephony Service Surcharge. Addresses certain aspects regarding the administration of the Prepaid Mobile Telephony Service Surcharge (MTS). Specifically, the proposal would: 19)De Minimis Amount. Establishes that retailers with MTS annual sales of less than $15,000 are not required to collect the surcharge or local charge, and allows the Department of Finance to adjust this threshold as necessary. 20)General Fund Loan Authorization. Allows for a loan from the SB 84 Page 6 General Fund to address cash flow issues and specifies that the loan is to be repaid in the same fiscal year, or delayed until six months after the adoption of the budget act in the subsequent fiscal year. 21)Technical Changes and Clarifications. Specifies the accounts and funds for the deposit of the surcharge and local charge revenues, clarifies dates regarding the imposition of rates, and indicates the means by which service suppliers are notified of rates. 22)Financial Integrity and Accountability. Updates the oversight and internal control activities of state agencies to reflect appropriate levels and focus of internal controls, as these relate to the Financial Integrity and State Manger's Accountability Act (FISMAA) of 1983. The updates incorporate additional guidance provided by the Government Accountability Office (GAO) as set forth in the agency's Standards for Internal Control in the Federal Government, regarding internal controls, effectively, and reliable reporting information, and compliance with applicable laws and regulations. Specific changes include: a) Expanding internal controls to fiscal, operational, programmatic, strategic, as well as other factors. b) Mandating objectivity and systematic review for activities related to various monitoring processes. c) Specifying the essential components of an effective internal control system (to include Control Environment, Risk Assessment, Control Activities, Information and Communication and Monitoring. d) Limiting the recipients of the biennial report, to the Legislature, State Auditor, Controller, Director of Finance, plus the Secretary of Government Operations. 1) Local Government Mandates. Requires the Department of Finance, the Secretary of State and the Legislative Analyst's Office to convene a working group to evaluate alternative for funding election mandates, with Department of Finance to SB 84 Page 7 release a report of the findings by September 1, 2016. Directs Department of Finance to survey county election practices during years of a statewide general election and report the results of the survey to the Legislature by April of the following year. 2) State Banking Practices. Allows an eligible bank that has been selected by the State Treasurer for the safekeeping of funds, and has its headquarters outside of California, to submit letters of credit hat are drawn on its regional federal home loan bank as security for deposits in demand accounts. Regarding securities to be deposited as security, receipts for securities, delivery of securities, or safekeeping of securities, expands from the Federal Reserve Bank of San Francisco to any federal reserve bank, the participation in such activities. FISCAL EFFECT: Appropriation: Yes Fiscal Com.:YesLocal: Yes SUPPORT: (Verified6/19/15) None received OPPOSITION: (Verified6/19/15) None received Prepared by:Brady Van Engelen / B. & F.R. / (916) 651-4103 6/19/15 10:48:01 **** END **** SB 84 Page 8