BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1029 (Hertzberg) - California Debt and Investment Advisory  
          Commission:  accountability reports
          
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          |Version: April 27, 2016         |Policy Vote: GOV. & F. 7 - 0    |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: May 27, 2016      |Consultant: Mark McKenzie       |
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          Bill  
          Summary:  SB 1029 would require state and local agencies to  
          submit an annual report to the California Debt and Investment  
          Advisory Committee (CDIAC) that includes debt issuances,  
          outstanding debt, and use of proceeds over the reporting period,  
          as specified.  The bill would also require CDIAC to track and  
          report on all state and local outstanding debt until it is fully  
          repaid or redeemed.


          *********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
             The following information is revised to reflect amendments 
                      adopted by the committee on May 27, 2016




          Fiscal  
          Impact:  
           CDIAC administrative costs of approximately $132,000 in the  
            first two years (1 PY), $261,000 in years three and four (2  
            PY), and $393,000 annually thereafter (3 PY) for  new  







          SB 1029 (Hertzberg)                                    Page 1 of  
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            positions to receive, review, process, and include reported  
            data on new debt issuances in its database.  (California Debt  
            and Investment Advisory Commission Fund)

           CDIAC indicates that any one-time costs for systems upgrades  
            would be minor and absorbable.  Staff notes that there could  
            be future cost pressures to the extent the bill authorizes  
            CDIAC to develop alternative reporting methods for data  
            collection.  CDIAC indicates it would absorb any future costs  
            for these upgrades.  (California Debt and Investment Advisory  
            Commission Fund)


          Author  
          Amendments:  Limit the bill to only require state and local  
          agencies to report annually on debt issued on or after January  
          21, 2017, rather than reporting on all outstanding and  
          prospective debt issuances.


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