BILL ANALYSIS
SB 856
Page 1
SENATE THIRD READING
SB 856 (Budget and Fiscal Review Committee)
As Amended October 7, 2010
2/3 vote. Urgency
SENATE VOTE :Vote not relevant
SUMMARY : Contains necessary statutory and technical changes to
implement changes to the Budget Act of 2010. Specifically, this
bill :
1)Increases the fee on Enterprise Zones from $10 to $15 in order
to cover the full cost of administering the Enterprise Zone
Program.
2)Restricts the Department of Financing from allocating funds
appropriated for the Citizens Redistricting Commission until:
a) The State Auditor has randomly drawn names of eight
individuals who shall serve on the Commission pursuant to
law; and,
b) Thirty day's after submission of their intent to expend
those funds.
3)Adds a requirement to the existing statutorily required 2013
audit of the Bureau of Private Post-secondary Education to
review the bureau's staffing level and expertise in relation
to their statutory responsibilities.
4)Authorizes the healing arts boards under the Department of
Consumer Affairs, including the Dental and Medical Boards of
California, to employ individuals, other than peace officers,
to perform investigative services and to serve as experts.
5)Requires the Department of Finance to provide 30 day
notification to the Joint Legislative Budget Committee prior
to finalizing a contract for the BreEZe project (the
integrated enterprise-wide enforcement and licensing system
described in the department's strategic plan).
6)Requires the Department of Consumer Affairs to report to the
Chair of the Joint Legislative Budget Committee on whether the
licensing positions for the healing arts boards remain
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necessary after implementation of the project.
7)Forgives a $15 million loan made to the San Diego National
Sports Training Foundation for construction of an Olympic
Training Facility. The lien on the facility was removed in
the 1998 budget, and the Foundation (a non-profit
organization) has no ability to repay the loan.
8)Reclassifies the Tax Credit Allocation Fee Account to place it
in the correct fund classification.
9)Increases the authorized amount the State Treasurer's Office
may collect from the Local Agency Investment Fund (LAIF) to
allow them to cover their full administrative costs.
10)Revised the Prompt Payment Act to provide uniformity to how
the State handles payments and penalties for late payments.
It specifies that state agencies have to pay refunds or other
undisputed payments due to individuals within 45 days after
receipt of a notice of refund due. It also provides
uniformity in the penalty for late payments, generally at a
rate of 10% above the US Prime Rate on June 30 of the prior
fiscal year.
11)Allows the State Treasurer's Office to redeem matured bonds
and coupons that are 10 years or more past their call date
when presented for payment by the bondholder.
12)Eliminates the practice of the State providing funds to
locals to make-up the difference between new Vehicle License
Fees on trailers as compared to the old calculation.
13)Authorizes a county, city, city and county, or special
district to charge prospective employees or volunteers at
parks, playgrounds, recreational centers, or beaches for the
costs associated with the existing screening requirement.
14)Authorizes specific entities to request that Commission on
State Mandates adopt a new test claim decision to supersede a
previously adopted test claim. It would authorize the
commission to adopt a new test claim decision only upon a
showing that the state's liability for the previously adopted
test claim decision has been modified based on a subsequent
change in law.
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15)Recasts the existing requirements regarding the posting of
agendas and the description of items to be discussed at
meetings of legislative bodies of local agencies as best
practices that could, at the discretion of the legislative
body, be used to implement the constitutional provisions
regarding access to information.
16)Eliminates the obsolete section of code regarding the
Manufacturing Technology Program, which has not been in
existence for years.
17)Authorizes the Department of Industrial Relations to enter
into an agreement with Employment Development Department to
collect penalties and wage assessments from employers, as part
of the Automated Collection Enhancement System implementation.
Requires employers, beginning with the first calendar quarter
of 2011, to file with the Director of the Employment
Development Department a quarterly return of paid unemployment
insurance taxes. Eliminates the requirement that an employer
file an annual reconciliation form with the Director beginning
in calendar year 2012.
18)Eliminates the continuous appropriation for the
Apprenticeship Training Contribution Fund and instead
specifies that all money in the fund be used for
apprenticeship training and to pay the expenses of the
Division of Apprenticeship Standards, under the Department of
Industrial Relations.
19)Revises the method for fee payment by state agencies to the
State Public Works Enforcement Fund, a special fund
continuously appropriated for the purposes of the Department
of Industrial Relations' enforcement of prevailing wage
requirements applicable to public works.
20) Extends from April 3, 2011 to September 3, 2011, the
time period within which the Employment Development Department
is required to implement changes related to the establishment
of unemployment compensation benefit claims under the
Alternative Base Period Program.
21) Increases the fee for a general liquor license by 15%, from
$12,000 to $13,800 and adds an annual adjustment per the
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Consumer Price Index. The proposed fee adjustment is
projected to generate increased revenue of $788,400 to address
the Alcoholic Beverage Control Fund's structural deficit.
22) Increases Catering and Event Authorization fees from
$10 to $25. Upon full implementation, the fee increases would
generate an estimated $256,500 in new revenues to address the
Alcoholic Beverage Control Fund's structural deficit.
23) Allows the Department of Justice to continue to share crime
law enforcement data with the Western States Information
Network, which is the regional program for the sharing of law
enforcement databases for Alaska, California, Hawaii, Oregon,
and Washington.
24) Captures $13.7 million in General Fund savings in
2009-10 resulting from fee revenue that now supports the
state's forensic labs AB 3 X8 (Committee on Budget), Chapter
3, Statutes of 2009-2010 8th Extraordinary Session.
25) Provides $30 million from the Indian Gaming Special
Distribution Fund to provide grants to local government
agencies impacted by tribal gaming.
26) Allows for the Franchise Tax Board to provide social
security numbers to CalPERS so they can begin receiving
federal reimbursement funds on behalf of their members.
CalPERS has been approved to receive federal funds to assist
in offsetting the cost of early retiree reinsurance costs and
their dependents per the Early Retiree Reinsurance Program.
27)Specifies that the Imperial Irrigation District (IID) can
fulfill its reserve account requirements under an existing
loan guarantee with funds held in the Imperial Irrigation
District Infrastructure Guarantee Trust Account. Additionally,
this bill requires that the California Infrastructure Bank
(I-Bank) loan guarantee for IID borrowing for water
conservation improvements be initiated if funds due to be
transferred to IID from San Diego County Water District are
reduced, eliminated or delayed.
28)Authorizes the Technology Services Receiving Fund (TSRF) to
receive revenues for services rendered by the office of the
Office of the Chief Information Officer (OCIO) and allows OCIO
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to collect payments from public agencies for services
requested from, rather than contracted for, the OCIO.
Additionally, this bill revises the conditions used to
determine whether a balance remains in the TSRF at the end of
a fiscal year to limit the amount that is used to determine a
reduction in billing rates.
29)Requires that if a proposed state service contract contains
an information technology component that would normally be
subject to oversight by the State Chief Information Officer,
it shall be subject to review, approval, and oversight by the
State Chief Information Officer.
30) Exempts, until January 1, 2012, institutions that offer
flight instruction or an institution that offer Federal
Aviation Administration certified educational programs in
aircraft maintenance from filing applications for approval to
operate.
31)Urgency Clause. Declares this bill take effect immediately
as an urgency statute.
Analysis Prepared by : Sara C. Bachez / BUDGET / (916) 319-2099
FN: 0007191