BILL NUMBER: AB 186	AMENDED
	BILL TEXT

	AMENDED IN SENATE  SEPTEMBER 4, 2009

INTRODUCED BY   Committee on Budget (Evans (Chair), Arambula, Beall,
Blumenfield, Brownley, Caballero, Carter, De La Torre, Feuer, Hill,
Huffman, Monning, Ruskin, and Swanson)

                        FEBRUARY 2, 2009

    An act relating to the Budget Act of 2009.  
An act to repeal and add S   ections 12472.5 and 13302 of,
and to repeal, add, and repeal Section 22864.1 of, the Government
Code, relating to state employees. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 186, as amended, Committee on Budget.  Budget Act of
2009.   State employees: payroll: health care. 

   (1) Existing law requires that, on and after January 1, 2010,
payments to employees made through the Uniform State Payroll System
for a pay period ending on June 30 of each year shall be on or after
July 1, provided that employees, in any event, be paid promptly.
 
   This bill would require that, on and after January 1, 2010,
payments to employees made through the Uniform State Payroll System
for a master payroll paid on June 30 of each year shall be issue
dated on July 1.  
   (2) Existing law requires the Department of Finance to install and
supervise an accounting system for state agencies. Existing law
requires, in regard to this system, that the payments to employees
made in July through the Uniform State Payroll System for services
rendered prior to July 1 of each year are to be considered payables
incurred in the fiscal year in which the warrant is issued. 

   This bill would provide that payments to employees made through
the Uniform State Payroll System, as specified, with an issue date
each year of July 1 shall be considered payables incurred in the
fiscal year in which the payment is issue dated.  
   (3) Existing law authorizes the Board of Administration of the
Public Employees' Retirement System to use reserves generated by one
or more self-funded health benefit plans to reduce the premiums
charged for enrollment in one or more separate self-funded health
benefit plans offered by the board, as specified.  
   This bill would make technical changes to that authorization.
 
   This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2009. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 12472.5 of the  
Government Code   is repealed.  
   12472.5.  Notwithstanding any other law, on and after January 1,
2010, payments to employees made through the Uniform State Payroll
System for a pay period ending on June 30 of each year shall be on or
after July 1, provided that employees shall, in any event, be paid
promptly. 
   SEC. 2.    Section 12472.5 is added to the  
Government Code   , to read:  
   12472.5.  Notwithstanding any other law, on and after January 1,
2010, payments to employees made through the Uniform State Payroll
System for master payroll paid on June 30 of each year shall be issue
dated on July 1, provided that employees shall, in any event, be
paid promptly. 
   SEC. 3.    Section 13302 of the   Government
Code   is repealed.  
   13302.  The accounting system devised as provided in Section 13300
shall provide, with respect to the General Fund and other
governmental funds, for the following:
   (a) The accrual of expenditures as of the end of each fiscal year
on the basis of payables incurred, excluding accrued interest on
general obligation bonded indebtedness.
   (b) (1) The accrual of revenues at the end of the fiscal year if
the underlying transaction has occurred as of the last day of the
fiscal year, the amount is measurable, and the actual collection will
occur either during the current period or after the end of the
current period but in time to pay current year-end liabilities.
   (2) Cash in agency trust accounts within the centralized State
Treasury system that is in transit to the State Treasury, accrued
interest receivable, and accounts receivable shall be accrued as of
the end of each fiscal year.
   (c) For the purposes of financial reporting, the following apply:
   (1) A payable exists when goods or services have been delivered
and the state is required to pay for those goods or services, and an
encumbrance exists when a valid obligation against an appropriation
has been created.
   (2) All funds appropriated shall be identified as either expended,
payable, encumbered (exclusive of payables), or unencumbered, as
further defined by the California Fiscal Advisory Board, and the
total of these shall equal the total appropriation.
   (d) (1) Notwithstanding any other law, and except as provided in
paragraph (2), payments to employees made in July through the Uniform
State Payroll System for services rendered prior to July 1 of each
year shall be considered payables incurred in the fiscal year in
which the warrant is issued.
   (2) Notwithstanding paragraph (1), for purposes of calculating
maintenance of effort expenditures under Section 8 of Article XVI of
the California Constitution, or for purposes of calculating funds
used by a program during the fiscal year, payments made in July may
be counted towards the prior fiscal year. 
   SEC. 4.    Section 13302 is added to the  
Government Code   , to read:  
   13302.  The accounting system devised as provided in Section 13300
shall provide, with respect to the General Fund and other
governmental funds, for all of the following:
   (a) The accrual of expenditures as of the end of each fiscal year
on the basis of payables incurred, excluding accrued interest on
general obligation bonded indebtedness.
   (b) (1) The accrual of revenues at the end of the fiscal year if
the underlying transaction has occurred as of the last day of the
fiscal year, the amount is measurable, and the actual collection will
occur either during the current period or after the end of the
current period but in time to pay current year-end liabilities.
   (2) Cash in agency trust accounts within the centralized State
Treasury system that is in transit to the State Treasury, accrued
interest receivable, and accounts receivable shall be accrued as of
the end of each fiscal year.
   (c) For the purposes of financial reporting, all of the following
shall apply:
   (1) A payable exists when goods or services have been delivered
and the state is required to pay for those goods or services, and an
encumbrance exists when a valid obligation against an appropriation
has been created.
   (2) All funds appropriated shall be identified as either expended,
payable, encumbered (exclusive of payables), or unencumbered, as
further defined by the California Fiscal Advisory Board, and the
total of these shall equal the total appropriation.
   (d) (1) Notwithstanding any other law, and except as provided in
paragraph (2), payments to employees made through the Uniform State
Payroll System as described in Section 12472.5 with an issue date
each year of July 1 shall be considered payables incurred in the
fiscal year in which the payment is issue dated.
   (2) Notwithstanding paragraph (1), for purposes of calculating
maintenance of effort expenditures under Section 8 of Article XVI of
the California Constitution, or for purposes of calculating funds
used by a program during the fiscal year, payments made on July 1 may
be counted towards the prior fiscal year. 
   SEC. 5.    Section 22864.1 of the  
Government Code   is repealed.  
   22864.1.  (a) This part does not limit the board's authority to
use reserves generated by one or more self-funded benefit plans to
reduce or otherwise pay the premiums charged for enrollment in one or
more separate self-funded health benefit plans offered by the board.
(b) This section shall remain in effect only until June 30, 2010, and
as of that date is repealed, unless a later enacted statute, that is
enacted before June 30, 2010, deletes or extends that date.

   SEC. 6.    Section 22864.1 is added to the  
Government Code   , to read:  
   22864.1.  (a) This part does not limit the board's authority to
use reserves generated by one or more self-funded benefit plans to
reduce or otherwise pay the premiums charged for enrollment in one or
more separate self-funded health benefit plans that are offered by
the board.
   (b) This section shall remain in effect only until June 30, 2010,
and as of that date is repealed, unless a later enacted statute, that
is enacted before June 30, 2010, deletes or extends that date. 

  SECTION 1.    It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2009.