BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      SB 90


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          SENATE THIRD READING


          SB  
          90 (Committee on Budget and Fiscal Review)


          As Amended  June 16, 2015


          Majority vote.  Budget Bill Appropriation Takes Effect  
          Immediately


          SENATE VOTE:  Vote not relevant


          SUMMARY:  Includes a statutory provision related to general  
          government necessary to enact the 2015 Budget Act.   
          Specifically, this bill:   


           1)Aligns appropriation language contained in the Insurance Law  
            related to debentures with language in the General Obligation  
            (GO) bonds.  This amendment would conform the Insurance Law  
            with GO Bond acts to ensure that debentures are paid on a  
            payable schedule identical to GO bonds.  
          2)Requires the State Treasurer to take appropriate steps to  
            provide that interest on the debentures is exempt from the  
            federal taxation.   


          3)Amends existing law that provides that in the event that the  
            fund fails to pay the principal or interest on debentures  
            issued, then the State Treasurer is required to pay out of  
            money in the State Treasury to instead require the General  
            Fund to pay the funds.










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          4)Provides a one-year extension for the Jobs and Economic  
            Improvement Through Environmental Leadership Act of 2011  
            (Act).  Under current law, the Act created an expedited  
            judicial review procedures under the California Environmental  
            Quality Act (CEQA) for various types of infill site projects,  
            clean renewable energy projects, and clean energy  
            manufacturing projects.


          FISCAL EFFECT:  Statutory changes contained in this bill related  
          to state costs are consistent with the 2015-16 budget package.  


          COMMENTS:  The trailer bill language is technical and ensures  
          that debentures be paid on par with the State's GO bonds.  The  
          proposed change was brought about when the Treasurer's Office  
          was reviewing where the state could be vulnerable.  The impact  
          of the proposed amendment is limited to the California Health  
          Facility Construction Loan Insurance Law contained in Health and  
          Safety Code Sections 129000 through 129355.  Additionally, the  
          trailer bill language would provide a one year extension for the  
          Act.




          Analysis Prepared by:                                             
          Genevieve Morelos / BUDGET / (916) 319-2099  FN: 0001042



















                                                                      SB 90


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