BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                         SB 84|
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                                 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  








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             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  








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             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  








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             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. 









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           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  








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             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  








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             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


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