Amended in Assembly June 11, 2015

Senate Bill No. 87

Introduced by Committee on Budget and Fiscal Review

January 9, 2015

begin delete An act relating to the Budget Act of 2015. end delete begin insert An act to amend Sections 13332.19, 15816, 15817.1, 15820.903, 15820.913, 15820.922, 15831, 15832, and 15848 of, and to repeal Section 15770.5 of, the Government Code, relating to public works, and making an appropriation therefor, to take effect immediately, bill related to the budget. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 87, as amended, Committee on Budget and Fiscal Review. begin delete Budget Act of 2015. end delete begin insert Public works: building construction. end insert

begin insert

(1) Existing law, except as specified, prohibits any state agency from expending funds appropriated for design-build projects until the Department of Finance and the State Public Works Board have approved performance criteria or performance criteria and concept drawings for the project. Existing law, for these purposes, defines the term “performance criteria” to mean the information that fully describes the scope of the proposed project, as specified. Existing law, for these purposes, defines the term “concept drawings” to mean any schematic drawings or architectural renderings that are prepared, in addition to performance criteria, in the detail necessary to sufficiently describe the state’s needs.

end insert begin insert

This bill would revise the definition of “performance criteria,” for these purposes, to include concept drawings, as specified. The bill would additionally make conforming changes.

end insert begin insert

(2) Existing law establishes the State Public Works Board which consists of the Director of Finance, the Director of Transportation, and the Director of General Services. Existing law authorizes the Director of Transportation and the Director of General Services to appoint a deputy or assistant director in their respective departments to act in their place on the board, as specified.

end insert begin insert

This bill would repeal that authorization.

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(3) Existing law requires the State Public Works Board to notify the Department of General Services whenever the revenues, rentals, or receipts from the operation of a public building that was acquired or constructed by the board are no longer required or pledged for the payment of principal or interest on any of the certificates or revenue bonds of the board. Existing law provides that thereafter, that public building is under the jurisdiction of, and operated and maintained by, the Department of General Services.

end insert begin insert

This bill would repeal this notification requirement and instead require those buildings to return to the jurisdiction of, and be operated and managed by, the state agency that had jurisdiction of the property prior to the board’s financing of the public building. The bill would additionally make conforming changes.

end insert begin insert

Existing law exempts from these provisions any public buildings that are acquired by lease by the board from a state agency, for the purposes of leasing the public building back to the state agency, as specified, and public buildings constructed for lease purchase to the University of California, the Trustees of the California State University, the Board of Governors of the California Maritime Academy, or any community college district. Existing law provides that when the revenues, rentals, or receipts from the operation of any public facility or public building are no longer required or pledged for the payment of principal or interest on the certificates or revenue bonds of the board, title to the public building vests in the Regents of the University of California, the Trustees of the California State University, the Board of Governors of the California Maritime Academy, or the community college district.

end insert begin insert

This bill would repeal these exemption and vesting provisions.

end insert begin insert

(4) Existing law, until July 1, 2015, authorizes the State Public Works Board to acquire public buildings by lease from any state agency, and to lease those public buildings back to the state agency and pledge the revenues, rentals, or receipts to the lease to secure repayment of revenue bonds, notes, or certificates issued by the board for the purpose of facilitating the financing of public buildings, as specified.

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This bill would eliminate the repeal date and require the Department of Finance to report to the Legislature by June 30, 2017, on the effects of this repeal, as specified.

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(5) Existing law requires all revenue bonds issued for state building construction to bear the signature of the Governor, and the facsimile countersignature of the Controller and the Treasurer, as specified. Existing law requires all interest coupons attached to each bond to bear the facsimile signature of the Treasurer, as specified. Existing law specifies that the rate of interest to be born by the bonds need not be uniform for all bonds of the same issue or series or division and provides that the rate may be determined and fixed by the State Public Works Board by resolution adopted at or after the sale of the bonds.

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This bill would eliminate the requirement that all interest coupons attached to each bond bear the facsimile signature of the Treasurer and all references to interest coupons in these provisions. The bill would additionally provide that a “not to exceed” interest rate may be determined and fixed by the board by resolution adopted prior to or after the sale of the bonds.

end insert begin insert

(6) Existing law requires the highest bid received on the sale of the bonds to be determined by deducting the total amount of the premium bid, if any, from the total amount of the interest that the state would be required to pay from the date of the bonds or the last preceding interest payment date, whichever is latest, to the respective maturity date of the bonds, as specified, and requires the award to be made on the basis of the lowest net interest cost to the state. Existing law requires the Treasurer, upon receipt of a resolution of the State Public Works Board authorizing the issuance of bonds, to provide for the preparation of the bonds in accordance with the resolution. In the case of a public sale, existing law authorizes the Treasurer to sell the bonds at the time, and with the notice, determined by the Treasurer, upon sealed bids, to the bidder whose bid will result in the lowest net interest cost on account of the bonds.

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This bill would instead authorize the Treasurer, for a public sale, to set forth the form and means of bids, and to sell to the bidder whose bid will result in the lowest interest cost to the state on account of the bonds. The bill would set forth the procedures the Treasurer may use to determine the lowest interest cost to the state, including the net interest cost of each bid, or the true interest cost of each bid, as defined.

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(7) Existing law authorizes the Department of Corrections and Rehabilitation, participating counties, and the State Public Works Board to acquire, design, and construct local jail facilities approved by the Board of State and Community Corrections (BSCC). Existing law authorizes the State Public Works Board to issue revenue bonds, notes, or bond anticipation notes in the amounts of $365,771,000 and $854,229,000, in 2 phases, to finance the acquisition, design, and construction, and a reasonable construction reserve, of approved local jail facilities, as specified. Existing law authorizes the State Public Works Board to issue revenue bonds, notes, or bond anticipation notes in the amount of $500,000,000 to finance the acquisition, design, and construction, and a reasonable construction reserve, of approved adult local criminal justice facilities, as defined. The funds derived from those revenue bonds, notes, or bond anticipation notes are continuously appropriated for the purposes described above.

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This bill would decrease the authorization for revenue bonds, notes, or bond anticipation notes in the first phase from $365,771,000 to $340,866,000 and increase the authorization of the 2nd phase from $854,229,000 to $870,074,000. The bill would also increase the authorization to be used for adult local criminal justice facilities from $500,000,000 to $509,060,000.

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(8) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

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This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.

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Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 13332.19 of the end insert begin insert Government Code end insert begin insert is
amended to read: end insert

13332.19.  

(a) For the purposes of this section, the following
definitions shall apply:

(1) “Design-build” means a construction procurement process
in which both the design and construction of a project are procured
from a single entity.

(2) “Design-build project” means a capital outlay project using
the design-build construction procurement process.

(3) “Design-build entity” means a partnership, corporation, or
other legal entity that is able to provide appropriately licensed
contracting, architectural, and engineering services as needed.

(4) “Design-build solicitation package” means the performance
criteria, any concept drawings, the form of contract, and all other
documents and information that serve as the basis on which bids
or proposals will be solicited from the design-build entities.

(5) “Design-build phase” means the period following the award
of a contract to a design-build entity in which the design-build
entity completes the design and construction activities necessary
to fully complete the project in compliance with the terms of the
contract.

(6) “Performance criteria” means the information that fully
describes the scope of the proposed project and includes, but is
not limited to, the size, type, and design character of the buildings
and site; the required form, fit, function, operational requirements,
and quality of design, materials, equipment, and workmanship;
and any other information deemed necessary to sufficiently
describe the begin delete State’s end delete begin insert state’s end insert needs. begin insert Performance criteria may include
concept drawings, which include any schematic drawings or
architectural renderings that are prepared in the detail necessary
to sufficiently describe the state’s needs. end insert

begin delete

(7) “Concept drawings” means any schematic drawings or
architectural renderings that are prepared, in addition to
performance criteria, in such detail as is necessary to sufficiently
describe the state’s needs.

end delete

(b) (1) Except as otherwise specified in subparagraphs (A) to
(D), inclusive, of paragraph (2) funds appropriated for a
design-build project shall not be expended by any begin delete State end delete begin insert state end insert
agency, including, but not limited to, the University of California,
the California State University, the California Community
Colleges, and the Judicial Council, until the Department of Finance
and the State Public Works Board have approved performance
begin delete criteria or performance criteria and concept drawings for the
project. end delete begin insert criteria. end insert

(2) This section shall not apply to any of the following:

(A) Amounts for acquisition of real property, in fee or any lesser
interest.

(B) Amounts for equipment or minor capital outlay projects.

(C) Amounts appropriated for performance begin delete criteria and concept
drawings. end delete begin insert criteria. end insert

(D) Amounts appropriated for preliminary plans, if the
appropriation was made prior to January 1, 2005.

(c) Any appropriated amounts for the design-build phase of a
design-build project, where funds have been expended on the
design-build phase by any begin delete State end delete begin insert state end insert agency prior to the approval
of the performance criteria begin delete or the performance criteria and concept
drawings end delete by the State Public Works Board, and all amounts not
approved by the board under this section shall be reverted to the
fund from which the appropriation was made. A design-build
project for which a capital outlay appropriation is made shall not
be put out to design-build solicitation until the bid package has
been approved by the Department of Finance. A substantial change
shall not be made to the performance criteria begin delete or to performance
criteria and concept drawings end delete as approved by the board and the
Department of Finance without written approval by the Department
of Finance. The Department of Finance shall approve any proposed
bid or proposal alternates set forth in the design-build solicitation
package.

(d) The State Public Works Board may augment a design-build
project in an amount of up to 20 percent of the capital outlay
appropriations for the project, irrespective of whether any such
appropriation has reverted. For projects authorized through multiple
fund sources, including, but not limited to, general obligation bonds
and lease-revenue bonds, to the extent permissible, the Department
of Finance shall have full authority to determine which of the fund
sources will bear all or part of an augmentation. The board shall
defer all augmentations in excess of 20 percent of the amount
appropriated for each design-build project until the Legislature
makes additional funds available for the specific project.

(e) In addition to the powers provided by Section 15849.6, the
State Public Works Board may further increase the additional
amount in Section 15849.6 to include a reasonable construction
reserve within the construction fund for any capital outlay project
without augmenting the project. The amount of the construction
reserve shall be within the 20 percent augmentation limitation.
The board may use this amount to augment the project, when and
if necessary, after the lease-revenue bonds are sold to ensure
completion of the project.

(f) Any augmentation in excess of 10 percent of the amounts
appropriated for each design-build project shall be reported to the
Chairperson of the Joint Legislative Budget Committee, or his or
her designee, 20 days prior to board approval, or not sooner than
whatever lesser time the chairperson, or his or her designee, may
in each instance determine.

(g) (1) The Department of Finance may change the
administratively or legislatively approved scope for major
design-build projects.

(2) If the Department of Finance changes the approved scope
pursuant to paragraph (1), the department shall report the changes
and associated cost implications to the Chairperson of the Joint
Legislative Budget Committee, the chairpersons of the respective
fiscal committees, and the legislative members of the State Public
Works Board 20 days prior to the proposed board action to
recognize the scope change.

(h) The Department of Finance shall report to the Chairperson
of the Joint Legislative Budget Committee, the chairpersons of the
respective fiscal committees, and the legislative members of the
State Public Works Board 20 days prior to the proposed board
approval of performance criteria begin delete or performance criteria and
concept drawings end delete for any project when it is determined that the
estimated cost of the total design-build project is in excess of 20
percent of the amount recognized by the Legislature.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 15770.5 of the end insert begin insert Government Code end insert begin insert is repealed. end insert

begin delete

15770.5.  

Notwithstanding any other provision of law, the
Director of Transportation and the Director of General Services
may appoint a deputy or assistant director in their respective
departments to act in their place on the board, irrespective of
whether the deputy or assistant director holds a position specified
in subdivision (g) of Section 4 of Article VII of the California
Constitution, and irrespective of whether there is to be more than
one person representing a director at a meeting of the board. While
serving on the board, the representative shall have all the powers
of the director he or she is representing, including the right to be
counted in a quorum, to participate in the proceedings of the board,
and to vote on all matters. The director shall be responsible for the
representative’s acts to the same extent that the director is
responsible for the deputy or assistant director’s acts when
performing his or her official duties.

end delete

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 15816 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

15816.  

(a) When any public building has been acquired or
constructed by the board, and the revenues, rentals, or receipts
from the operation of the public building are no longer required
or pledged for the payment of principal or interest on any of the
certificates or revenue bonds of the board undertaken under this
part, begin delete the board shall forthwith notify the Department of General
Services of that fact, and thereafter end delete the public building shall be
under the jurisdiction of, and operated and maintained by, the
begin delete Department of General Services. end delete begin insert state agency that had jurisdiction
of the property prior to the board’s financing of the public building. end insert

begin delete

(b) Subdivision (a) shall not apply to any public facility used
pursuant to Section 15817.1 by, or to any public building
constructed for lease-purchase, to the Regents of the University
of California, the Trustees of the California State University, the
Board of Governors of the California Maritime Academy, or any
community college district, pursuant to this part. When the
revenues, rentals, or receipts from the operation of any public
facility or public building are no longer required or pledged for
the payment of principal or interest on the certificates or revenue
bonds of the board, title to the public building shall vest in the
Regents of the University of California, the Trustees of the
California State University, the Board of Governors of the
California Maritime Academy, or the community college district.

end delete begin delete

(c)

end delete

begin insert (b) end insert  If at any time funds are available by law to retire any
certificates or revenue bonds issued to defray the cost of any public
building, these funds shall be applied to the redemption of
certificates or revenue bonds secured by the rentals and revenues
from that public building.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 15817.1 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

15817.1.  

(a) Exclusively for the purpose of facilitating the
financing of public buildings pursuant to this part through the
issuance of revenue bonds, notes, or certificates by the board, and
notwithstanding any other law, the board may acquire by lease
from any begin delete State end delete begin insert state end insert agency public buildings identified by, and
under the jurisdiction or control of, the begin delete State end delete begin insert state end insert agency, and, in
that connection, the board may then lease those public buildings
back to the begin delete State end delete begin insert state end insert agency and may pledge the revenues, rentals,
or receipts to the lease to secure the repayment of revenue bonds,
notes, or certificates issued by the board. The board is not required
to apply the proceeds of the board’s bonds, notes, or certificates
to acquire, design, construct, or otherwise improve the same public
buildings that are leased pursuant to this section. In each case, the
lease shall provide rental provisions, term, payment, security,
default, remedy, and other terms or provisions as may be specified
in the lease or other agreement or agreements between the board
and the begin delete State end delete begin insert state end insert agency and may provide for the substitution of
other public buildings for the public buildings initially leased by
the board and the begin delete State end delete begin insert state end insert agency pursuant to this section. The
public buildings that are leased pursuant to this section may be
existing public buildings, as determined by the board and the begin delete State end delete
begin insert state end insert agency, and which the board and the begin delete State end delete begin insert state end insert agency also
determine to have both of the following:

(1) A fair rental value that is consistent with the principal
amount of the bonds, notes, or certificates of the board authorized
to be issued for the purpose of providing the financing of public
buildings pursuant to this part.

(2) An economic useful life that is not shorter than the final
maturity of the bonds, notes, or certificates of the board authorized
to be issued for the purpose of providing the financing of public
buildings pursuant to this part.

(b) These determinations by the board and the begin delete State end delete begin insert state end insert agency
pursuant to subdivision (a) shall be final and conclusive.

(c) A lease made pursuant to this section does not require the
approval of the Director of General Services.

(d) The board or a begin delete State end delete begin insert state end insert agency may utilize subdivision
(a) in connection with the issuance of any revenue bonds, notes,
or certificates previously authorized but not issued, or any revenue
bonds, notes, or certificates authorized subsequent to the effective
date of the act adding this subdivision.

begin delete

(e) The acquisition by lease authority provided in this section
shall become inoperative on July 1, 2015, unless a later enacted
statute, that is enacted before that date, deletes or extends that date.
Leases made pursuant to this authority prior to July 1, 2015, shall
continue in full force and effect in accordance with their applicable
terms. Any acquisitions made and bonds issued pursuant to this
authority prior to July 1, 2015, shall be deemed binding and valid.

end delete begin insert

(e) On or before June 30, 2017, the Department of Finance
shall report to the fiscal committees of the Legislature the following
regarding the removal of the July 1, 2015, inoperative date from
the asset transfer authority of the board. The report shall include,
but is not limited to, all of the following:

end insert begin insert

(1) The number of times the asset transfer authority has been
invoked.

end insert begin insert

(2) The aggregate amount of financing secured through asset
transfers.

end insert begin insert

(3) An estimate of the financing savings realized through the
use of asset transfers.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 15820.903 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

15820.903.  

(a) The SPWB may issue up to begin delete three hundred
sixty-five million seven hundred seventy-one thousand dollars
($365,771,000) end delete begin insert three hundred forty million eight hundred sixty-six
thousand dollars ($340,866,000) end insert in revenue bonds, notes, or bond
anticipation notes, pursuant to Chapter 5 of Part 10b of Division
3 of Title 2 (commencing with Section 15830) to finance the
acquisition, design, or construction, and a reasonable construction
reserve, of approved local jail facilities described in Section
15820.901, and any additional amount authorized under Section
15849.6 to pay for the cost of financing.

(b) Proceeds from the revenue bonds, notes, or bond anticipation
notes may be utilized to reimburse a participating county for the
costs of acquisition, preliminary plans, working drawings, and
construction for approved projects.

(c) Notwithstanding Section 13340, funds derived pursuant to
this section and Section 15820.902 are continuously appropriated
for purposes of this chapter.

(d) This section shall become inoperative on June 30, 2017, and
no project may be commenced after that date; however, projects
that have already commenced by that date may be completed and
financed with bonds issued pursuant to this chapter.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 15820.913 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

15820.913.  

(a) The SPWB may issue up to begin delete eight hundred
fifty-four million two hundred twenty-nine thousand dollars
($854,229,000) end delete begin insert eight hundred seventy million seventy-four
thousand dollars ($870,074,000) end insert in revenue bonds, notes, or bond
anticipation notes, pursuant to Chapter 5 of Part 10b of Division
3 of Title 2 (commencing with Section 15830) to finance the
acquisition, design, or construction, and a reasonable construction
reserve, of approved local jail facilities described in Section
15820.911, and any additional amount authorized under Section
15849.6 to pay for the cost of financing.

(b) Proceeds from the revenue bonds, notes, or bond anticipation
notes may be used to reimburse a participating county for the costs
of acquisition, preliminary plans, working drawings, and
construction for approved projects.

(c) Notwithstanding Section 13340, funds derived pursuant to
this section and Section 15820.912 are continuously appropriated
for purposes of this chapter.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 15820.922 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

15820.922.  

(a) The board may issue up to begin delete five hundred million
dollars ($500,000,000) end delete begin insert five hundred nine million sixty thousand
dollars ($509,060,000) end insert in revenue bonds, notes, or bond
anticipation notes, pursuant to Chapter 5 (commencing with Section
15830) to finance the acquisition, design, and construction,
including, without limitation, renovation, and a reasonable
construction reserve, of approved adult local criminal justice
facilities described in Section 15820.92, and any additional amount
authorized under Section 15849.6 to pay for the cost of financing.

(b) Proceeds from the revenue bonds, notes, or bond anticipation
notes may be used to reimburse a participating county for the costs
of acquisition, design, and construction, including, without
limitation, renovation, for approved adult local criminal justice
facilities.

(c) Notwithstanding Section 13340, funds derived pursuant to
this section and Section 15820.921 are continuously appropriated
for purposes of this chapter.

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 15831 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

15831.  

All bonds issued under this part shall bear the facsimile
signature of the Governor and the facsimile countersignature of
the Controller and the Treasurer, and the bonds shall be signed,
countersigned, and endorsed by the officers who shall be in office
on the date of issuance thereof, and each of the bonds shall bear
an impress of the Great Seal of the State of California. begin delete Interest
coupons attached to each bond shall bear the facsimile signature
of the Treasurer who shall be in office on the date of the bond to
which the coupons pertain. end delete The bonds begin delete or coupons end delete so signed,
countersigned, endorsed, and sealed, when sold, are valid although
the sale thereof be made at a date or dates upon which the officers
having signed, countersigned, and endorsed the begin delete bonds or coupons, end delete
begin insert bonds, end insert or any or either of the officers, shall have ceased to be the
incumbents of the offices held by them at the time of signing,
countersigning, or endorsing the begin delete bonds or coupons. end delete begin insert bonds. end insert Each
bond issued under this part, if subject to call or redemption prior
to maturity, shall contain a recital to that effect.

The rate of interest to be borne by the bonds need not be uniform
for all bonds of the same issue or series or begin delete division end delete begin insert maturity end insert and
begin insert a “not to exceed” interest rate end insert may be determined and fixed by
the board by resolution adopted begin delete at end delete begin insert prior to end insert or after the sale of the
bonds. begin delete The highest bid received on the sale of the bonds shall be
determined by deducting the total amount of the premium bid (if
any) from the total amount of interest which the state would be
required to pay from the date of the bonds or the last preceding
interest payment date, whichever is latest, to the respective maturity
dates of the bonds then offered for sale at the coupon rate or rates
specified in the bid, and the award shall be made on the basis of
the lowest net interest cost to the state. end delete The Treasurer, when
authorized by resolution of the board, may sell bonds begin insert above, below,
or end insert at begin delete less than end delete their par or face value.

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 15832 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

15832.  

Upon receipt of a resolution of the board authorizing
the issuance of bonds, the Treasurer shall provide for their
preparation in accordance with the resolution. The bonds authorized
to be issued shall be sold by the Treasurer, at public sale or at
private sale, as directed by the board. In the case of public sale,
(1) the bonds shall be sold by the Treasurer, at such time as may
be fixed by him or her, and upon such notice as he or she may
deem advisable, upon begin delete sealed bids, end delete begin insert bids submitted to the Treasurer
in the form and by the means specified by the Treasurer, end insert to the
bidder whose bid will result in the lowest begin delete net end delete interest cost on
account of such bonds, and (2) if no bids are received, or if the
Treasurer determines that the bids are not satisfactory, the Treasurer
may reject all bids received, if any, and either readvertise or sell
the bonds at private sale. begin insert For purposes of this chapter, the method
for determining the lowest interest cost bid shall be determined
by the Treasurer and shall be limited to either the net interest cost
method or the true interest cost method determined by the bids as
submitted in accordance with the notice of sale. The net interest
cost of each bid shall be determined by ascertaining the total
amount of interest that the state would be required to pay under
that bid, from the date of the bonds to the respective maturity dates
of the bonds then offered for sale, at the interest rate or rates
specified in the bid, less the total amount of the premium, if any,
or plus the total amount of the discount, if any, offered by the bid.
The bid under which the amount ascertained is the least shall be
deemed to be the bid resulting in the lowest net interest cost. Under
the true interest cost method, the bonds shall be awarded to the
bidder submitting the lowest interest rate bid determined by the
nominal interest rate that, when compounded semiannually and
used to discount the debt service payments on the bonds to the
date of the bonds, results in an amount equal to the price bid for
the bonds, excluding interest accrued to the date of delivery. end insert

Temporary or interim bonds, certificates, or receipts of any
denomination begin delete whatever and with or without coupons attached
thereto, end delete begin insert whatever, end insert to be signed by the Treasurer, may be issued
and delivered until the definitive bonds are executed and available
for delivery. Signature of the Treasurer may be by signature stamp.

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 15848 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

15848.  

Notwithstanding Section 13340 or any other provision
of law, the amount as may be necessary to pay the rent of any
agency occupying space in a facility authorized to be acquired or
constructed under the State Building Construction Act of 1955 or
a facility leased by a state agency pursuant to a joint powers
agreement in accordance with Chapter 5 (commencing with Section
6500) of Division 7 of Title 1 is hereby appropriated each fiscal
year payable from the fund in the State Treasury from which that
agency derives its appropriation for support and shall become
available only if the rental payments are due during a period that
the state is operating without funds appropriated by the Budget
Act for that fiscal year or if the amount required to pay the rental
payments has not been included in the Budget Act for that fiscal
year and the Department of Finance certifies to the Controller that
sufficient funds are available for the support of the agency for that
portion of the facility that has been provided for its use and the
facility or portion thereof is available for the use and occupancy
of the agency. This appropriation shall be inoperative as to any
facility begin delete that is transferred to the end delete begin insert for which end insert jurisdiction begin delete of the
Department of General Services pursuant to subdivision (a) of
Section 15816, to any facility transferred to a state agency pursuant
to a joint powers agreement, or to any facility the title of which
has vested in the Regents of the University of California, the
Trustees of the California State University, the Board of Governors
of the California Maritime Academy, or any community college
district pursuant to subdivision (b) of end delete begin insert has been transferred pursuant
to end insert Section 15816.

begin insert

begin insert SEC. 11. end insert   

end insert begin insert

This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact statutory
changes relating to the Budget Act of 2015.

end delete