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