BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           579 (Huber)
          
          Hearing Date:  7/23/2009        Amended: 6/30/2009
          Consultant:  Bob Franzoia       Policy Vote: G O 9-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 579 would require the Bureau of State Audits  
          (BSA) to annually, upon appropriation by the Legislature, audit  
          the workload of at least two boards or commissions comprised of  
          board members or commissioners to whom the state pays an annual  
          salary for their services.  The BSA would be required to making  
          findings for each board or commission audited regarding the  
          workload of that board or commission to work to fulfill his or  
          her duties.  The BSA would be required to complete these audits  
          and make these findings by December 31 of each year and to make  
          them available to the Legislature and the Governor.  The BSA  
          would be required to audit the workload of the Integrated Waste  
          Management Board (IWMB) and the Unemployment Insurance Appeals  
          Board (UIAB) by December 31, 2010.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           Workload audits
              IWMB               $100 to $125                     Special*
              UIAB                          $100 to $125           
          Special**                                     
                                 Unknown, likely similar costs ongoing  
          inGeneral/
                                 future years subject to  
          appropriationSpecial

          * Integrated Waste Management Account
          ** Unemployment Insurance Administration Fund (See Staff  
          Comments)
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          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.

          The UIAB is principally funded through the Employment  










          Development Department's (EDD) UI Administration Fund (88.9  
          percent in 2008-09).  This is an employer paid payroll tax used  
          to administer unemployment benefit and tax appeal hearings.  The  
          State Disability Insurance Fund, an employee paid payroll tax,  
          provides 9.4 percent of the funding and is used to administer  
          disability benefit and tax appeal hearings.  The EDD Contingent  
          Fund and the General Fund each contribute less than one percent.  
           The UIAB is removed from EDD operative structure as the UIAB  
          rules on benefit and tax issues through claimants and employer  
          appeals from EDD decisions.   (In 2008, the BSA audited  
          (2008-103) the UIAB and noted its weak policies and practices  
          could undermine employment opportunity and lead to the misuse of  
          state resources.)

          To comply with Joint Rule 37.4 (b) which requires that any bill  
          requiring action by the BSA shall contain an appropriation for  
          the cost of any study or audit staff recommends this bill be  
          amended to appropriate $125,000 from the IWMA and $125,000 from  
          the Unemployment Insurance Administration Fund to the BSA for  
          the purposes of this bill.