BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 7X8|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
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|327-4478 | |
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THIRD READING
Bill No: AB 7X8
Author: Assembly Budget Committee
Amended: 2/17/10 in Senate
Vote: 27 - Urgency
ASSEMBLY FLOOR : Not relevant
SUBJECT : 2009-10 Budget Trailer Bill: public resources
SOURCE : Author
DIGEST : This bill provides the necessary statutory
changes in the area of public resources in order to address
the fiscal emergency declared by Governor Schwarzenegger
pursuant to the California Constitution.
Senate Floor Amendments of 2/17/10 replace intent language
to enact statutory changes relating to the Budget Act of
2009 with language that provides statutory changes in the
area of public resources in order to address the fiscal
emergency declared by Governor Schwarzenegger pursuant to
the California Constitution.
ANALYSIS : The California Constitution authorizes the
Governor to declare a fiscal emergency and to call the
Legislature into special session for that purpose. The
Governor issued a proclamation declaring a fiscal
emergency, and calling a special session for this purpose,
on January 8, 2010.
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This is the public resources trailer bill for purposes of
the fiscal emergency special session declared by the
Governor, including provisions to address the following
issues:
1. Beverage Container Recycling Program . Makes various
changes to improve the fiscal stability and performance
of the program, including the following:
A. Accelerates by 30 days (from 90 to 60 days)
payments by beverage distributors of the California
Redemption Value (CRV). Results in approximately
$100 million one-time revenue increase in current
year. Provides beer distributors with flexibility by
not requiring first accelerated CRV payments until
April 30. Additionally, places June 30, 2012, sunset
on acceleration.
B. Authorizes the Department of Resources, Recycling,
and Recovery to make program payments retroactive to
January 1, 2010. Currently, various program
participants are subject to a 100 percent
proportionate reduction in payments.
C. Sets expenditure priorities by suspending various
continuous appropriations for calendar years 2010 and
2011, thus achieving approximately $28 million in
current year savings, and approximately $56 million
in fiscal year 2010-11 savings. The suspensions and
estimated savings are as follows:
(1) Nonprofit competitive grants - $1.5
million/year =
$825,000 current year savings
(2) Public Education & Information - $5
million/year = $2.75 million current year savings
(3) Market Development & Expansion - $20
million/year = $11 million current year savings
(4) Community Beverage Container Grants - $20
million/year = $4.4 million current year savings
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D. Caps processing fee offsets for calendar years
2010 and 2011 for each beverage container type at
2008 levels. Results in approximately $9 million
current year and $18 million full-year savings.
E. In order to achieve increased program
effectiveness:
(1) Reduces quality incentive expenditures from
$15 million to $10 million, and targets all $10
million at glass
(2) Increases plastic market development
payments from $5 million to $10 million
F. Requires at least 90-day notice of any future
proportionate reduction.
G. States legislative intent that fund proceeds are
not to be used (borrowed, loaned, etc.) for any
purpose but the Beverage Container Recycling Program.
H. Makes various technical amendments to various
outdated code sections.
2. State Water Pollution Control Revolving Fund (SWPCRF) .
Enables California to access an estimated $145 million
in federal funds by authorizing the State Water
Resources Control Board (SWRCB) to issue grants, forgive
loan principal and provide other types of assistance
from specified federal SWPCRF funds, in conformance with
federal law. This amendment is narrowly tailored to
apply only to federal funds specifically allocated for
SWPCRF grants and would not authorize the use of future
or existing "revolving" funds for other purposes. SB
27X3 (Negrete McLeod), Chapter 25, Statutes of 2009-10,
Third Extraordinary Session, provided the SWRCB with
similar authority with respect to American Recovery and
Reinvestment Act funds.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
CTW:mw 2/17/10 Senate Floor Analyses
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SUPPORT/OPPOSITION: NONE RECEIVED
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