BILL ANALYSIS Ó SB 836 Page 1 SENATE THIRD READING SB 836 (Committee on Budget and Fiscal Review) As Amended June 12, 2016 Majority vote. Budget Bill Appropriation Takes Effect Immediately SENATE VOTE: Vote not relevant SUMMARY: Contains necessary statutory and technical changes to implement the Budget Act of 2016 related to General Government. Specifically, this bill: 1)Authorizes the State Board of Optometry to, notwithstanding any other law, issue a citation containing an order of abatement, an order to pay an administrative fine not to exceed $50,000, or both, as specified. 2)Authorizes the Governor to appoint a spectacle lens dispenser or contact lens dispenser as a member for appointments made to the Board of Optometry on or after January 1, 2016. 3)Transfers duties relating to government claims and government accounts from the California Victim Compensation and Government Claims Board to the Department of General Services (DGS) and the Controller as specified. SB 836 Page 2 4)Authorizes DGS to assign any matter related to the statutory powers and duties transferred by this bill to the Office of Risk and Insurance Management or to any office so designated. 5)Aligns references to the California Victim Compensation and Government Claims Board or the State Board of Control in the Government Claims Act and other related provisions to instead refer to the DGS and the Controller. 6)Renames the board the California Victim Compensation Board and make conforming name changes in provisions related to the board's duties regarding the compensation of victims and derivative victims of crimes. 7)Increases from $25,000 to $100,000 the estimated cost threshold for the requirement that DGS pass upon and approve or reject all plans for construction or alteration of any school building. 8)Increases the amounts in existing law, where the estimated costs of the reconstruction or alteration of , or an addition to, any school building exceeds $100,000, but does not exceed $225,000, a licensed structural engineer would be required to examine the proposed project as specified. 9)Authorizes DGS to increase the dollar amount on an annual basis, commencing January 1, 2018, according to an inflationary index governing construction costs. 10)Authorizes the Department of Finance (DOF) to allocate and charge a fair share of the administrative costs to all funds directly, and would require the DOF to certify to the SB 836 Page 3 Controller the amount determined to be the fair share of the administrative costs due and payable from each fund. 11)Replaces the FI$Cal Service Center with the Department of FI$Cal, with specified duties, and makes conforming changes. 12) Eliminates the FI$Cal Executive Partner and establish the Director of FI$Cal, who would be appointed by, and serve at the pleasure of the Governor, subject to Senate confirmation. 13)Extends the authorization of the 21st Century Project for one year, until June 30, 2017. 14)Requires the 12 commissioners who are appointed by the Governor to the California Travel and Tourism Commission, to elect the chairperson and the 24-industry selected commissioners to elect the vice chairperson. 15)Authorizes the Joint Rules Committee to pursue the construction of a state capitol building annex or the restoration, rehabilitation, renovation, or reconstruction of the existing State Capitol Building Annex. Requires that the work performed be administered and supervised by the DGS. Provides a streamlined California Environmental Quality Act process for the Capitol Annex. 16)Establishes the State Project Infrastructure Fund and continuously appropriates the money in that fund for state projects. 17)Subjects other state projects to the approval and SB 836 Page 4 administrative oversight of the Department of Finance and the State Public Works Board. Requires the Department of Finance on behalf of DGS to provide notices to the Joint Legislative Budget Committee and requires DGS to submit on a quarterly basis, a report on the status of each state project. 18)Requires only costs that have been audited by the Controller, to be used for a reasonable reimbursement methodology that is based on, in whole or in part, costs that have been included in claims submitted to the Controller for reimbursement. Includes a sunset of three years for the new process with a review at year to the appropriate policy committees. 19)Requires the expenditure for administrative expenses of moneys in the Public Employees' Health Care Fund or the account for administrative expenses in the Public Employees' Contingency Reserve Fund on approval in the annual Budget Act. 20)Changes the taxable years from January 1, 2015, and before January 1, 2030, to January 1, 2016, and before January 1, 2031, with regard to the New Advanced Strategic Aircraft Program. 21)Allows expenses that are paid for by the California Competes Tax Credit Committee to be reviewed and evaluated by Governor's Office of Business and Economic Development when processing applications. 22)Requires that the notice to the agency of a filing under the Private Attorneys General Act (PAGA) of 2004 be provided online, accompanied by a reasonable filing fee not to exceed a specified amount that would be deposited into the Labor and Workforce Development Fund to cover the administrative costs of processing the notice. For cases filed on or after July 1, SB 836 Page 5 2016, extends the timeframe for the agency to notify the employer and employee that it does not intend to investigate the alleged violation. Entitles an employee who prevails in an action under these provisions to also recover his or her filing fees, as well as the currently provided reasonable attorneys' fees and costs. 23)Requires that a proposed PAGA settlement agreement to be also sent to the Labor and Workforce Development Agency, as well as the court, as required by existing law. Provides that the court review and approve any penalties sought as a part of a proposed settlement of a claim. Until July 2021, authorizes the Agency to extend the time to complete its investigation by 60 days when the Agency determines an extension is necessary and issues a notice. 24)Requires permit fees and certain other revenues that are currently deposited into the Entertainment Work Permit Fund to instead be deposited in the Labor Enforcement and Compliance Fund. Abolishes the Entertainment Work Permit Fund and transfer moneys in, and assets, liabilities, revenues, expenditures, and encumbrances of, that fund to the Labor Enforcement and Compliance Fund. 25)Requires the money not used from the Farmworker Remedial Account by the Labor Commissioner to fund the Farm Labor Contractor Enforcement Unit and the Farm Labor Contractor License Verification Unit that currently is credited to the General Fund to be paid instead into the Labor Enforcement and Compliance Fund. Existing law requires farm labor contractors to pay license fees to the commissioner and continuously appropriates a portion of the fee revenues for enforcement and verification purposes. 26)Requires all moneys collected for filing fees and licenses SB 836 Page 6 from talent agencies be credited to the Labor Enforcement and Compliance Fund, and that fines collected for violations be credited to the General Fund. Current law requires all funds to be paid into the State Treasury and credited to the General Fund. 27)Requires the filing fees for the Child Performer Services Permit program to be deposited in the Labor Enforcement and Compliance Fund, instead of the Child Performer Services Permit Fund (permit fund) that exists under current law. Abolishes the permit fund and transfer any moneys in the permit fund and any assets, liabilities, revenues, expenditures, and encumbrances of that fund to the Labor Enforcement and Compliance Fund. 28)Extends the time required of the entity hauling or delivering ready-mixed concrete to submit employee payroll records to the party that engaged the entity from within three days to within five days. Provides that these provisions do not apply to public works contracts advertised for bid or awarded prior to July 1, 2016. 29)Removes the specific amount in law of $250 for the registration fee collected by the Labor Commissioner from car washing and polishing industry employers and authorizes the periodic adjustment of the fee, except as specified, in an amount sufficient to fund all direct and indirect costs to administer and enforce current labor law. Fixes the annual fee for deposit in the Car Wash Worker Restitution Fund in an amount equaling 20% of the registration fee. 30)Requires fee and permit moneys paid by a person employing an industrial homeworker and a person doing industrial homework to be paid into the Labor Enforcement and Compliance Fund. Currently these moneys are paid into the State Treasury. SB 836 Page 7 31)Requires the Division of Occupational Safety and Health to set the fees to be charged for permits and registrations for specific types of construction, demolition, and work in mines and tunnels, as well as for employers or contractors who engage in certain asbestos-related work, in amounts reasonably necessary to cover the costs involved in administering the permitting and registration programs and requires all permit and registration fees collected to be deposited in the Occupational Safety and Health Fund. 32)Revises provisions related to the design, erection, construction, installation, material alteration, inspection, testing, maintenance, repair, service, and operation of specific conveyances and their associated parts, and requires the associated certification and licensing program fees to be based on costs to the Division of Occupational Safety and Health of administering those programs, including direct costs and a reasonable percentage attributable to the indirect costs of the Division for administering those provisions. 33)Removes the term "aerial" in provisions in current law governing the permit and inspection program for aerial passenger tramways and instead refers only to "passenger tramways." Requires the Division of Occupational Safety and Health to fix and collect fees for inspection of passenger tramways to cover direct costs and a reasonable percentage attributable to the indirect costs of the division for administering those provisions. Removes the cap on the processing fee and requires those fees to be deposited in the Occupational Safety and Health Fund instead of the Elevator Safety Account, and transfers specific moneys in the Elevator Safety Account to the Occupational Safety and Health Fund, together with any assets, liabilities, revenues, expenditures, and encumbrances of that fund attributable to the program, the portable amusement ride inspection program, and the Permanent SB 836 Page 8 Amusement Ride Safety Inspection Program. 34)Requires the Division of Occupational Safety and Health to collect crane certifier fees, but newly requires all the fees for the examination and licensing of crane certifiers to be set to cover the costs of administering the examination and licensing program, and authorizes the inclusion of direct costs and a reasonable percentage attributable to the indirect costs of the Division for administration. Requires that fees be deposited in the Occupational Safety and Health Fund instead of the Elevator Safety Account or the General Fund. 35)Removes an existing $15 cap on a permit processing fee, and requires all fees relating to tanks, boilers, and pressure vessels to be in amounts sufficient to cover the Division of Occupational Safety and Health's direct and indirect costs for administering these provisions. Expands the fees paid into the Pressure Vessel Account to include all fees, not only inspection fees, collected under those tank, boiler, and pressure vessel provisions. 36)Requires the Division of Occupational Safety and Health to set fees relating to amusement rides, initially by emergency regulation, in amounts necessary to cover costs for administering those provisions, and authorizes the inclusion of direct costs and a reasonable percentage attributable to the indirect costs of the Division for administration. Requires that fees be deposited in the Occupational Safety and Health Fund instead of the Elevator Safety Account and requires the division to post the amusement ride safety report on its Internet Web site instead of submitting it to the Department of Food and Agriculture, and makes the inclusion of route location information discretionary as part of that report. 37)Requires the Division of Occupational Safety and Health to SB 836 Page 9 collect fees currently required to cover the Permanent Amusement Ride Safety Inspector Program to include direct and reasonable indirect costs for administration. Requires the Division to impose a penalty equal to 100% of the initial fee if a person owning or having custody, management, or operation of a permanent amusement ride fails to pay any fee required under the program within 60 days after the date of notification by the division. Requires that fees be deposited in the Occupational Safety and Health Fund instead of the Elevator Safety Account. 38)Revises provisions related to licensing, licensure renewal, and certification of tunnel and mine safety for explosive blasters, gas testers, and safety representatives administered by the Division of Occupational Safety and Health to require the Division to set fees to include direct costs and a reasonable percentage attributable to the indirect costs of the Division for administration, and to deposit those fees in the Occupational Safety and Health Fund instead of the General Fund. 39)Requires that fees collected by the Division of Occupational Safety and Health relating to the certification of asbestos consultants and site surveillance technicians be deposited in the Occupational Safety and Health Fund instead of the Asbestos Training and Consultant Certification Fund. Abolishes the Asbestos Training and Consultant Certification Fund. 40)Exempts the Division of Occupational Safety and Health from the requirement to conduct an operational inspection of a permanent amusement ride in conjunction with an inspection of records if a qualified safety inspector employed by the Division has already inspected the operation of the ride in connection with the execution of the current annual certificate of compliance. 41)Requires the Director of the Employment Development Department to permit the use of information in his or her SB 836 Page 10 possession to enable the California Workforce Development Board, the Chancellor of the California Community Colleges, the Superintendent of Public Instruction, the Department of Rehabilitation, the State Department of Social Services, the Bureau for Private Postsecondary Education, the Department of Industrial Relations, Division of Apprenticeship Standards, and the Employment Training Panel to access any relevant quarterly wage data necessary for the evaluation and reporting of their respective program performance outcomes. 42)Authorize the State Department of Education to share the social security numbers of adults participating in adult education programs with the Employment Development Department, and requires the Employment Development Department to keep the information confidential and only use it to track the labor market progress of program participants, as specified. FISCAL EFFECT: Transfers $1.3 billion from the General Fund to the State Project Infrastructure Fund over two years. COMMENTS: This bill contains necessary statutory and technical changes to implement the Budget Act of 2016 related to General Government. Analysis Prepared by: Jazmin Hicks, Nicole Vazquez, Genevieve Morelos / BUDGET / (916) 319-2099 FN: 0003432 SB 836 Page 11