BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 533
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          Date of Hearing:   May 11, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                 AB 533 (Yamada) - As Introduced:  February 15, 2011 

          Policy Committee:                              Aging and Long 
          Term Care    Vote:                            6 - 0 
                        Human Services                        6 - 0 

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              

           SUMMARY  

          This bill establishes a continuous appropriation from the 
          Federal Trust Fund for two programs serving the elderly and 
          disabled when the state budget has not been enacted by July 1. 
          Specifically, this bill: 

          1)Establishes a continuous appropriation to the California 
            Department of Aging (CDA) for the Area Agencies on Aging 
            (AAAs) and to the California Department of Rehabilitation 
            (DOR) for the Independent Living Centers (ILCs). 

          2)Authorizes the Department of Finance to reduce the applicable 
            Budget Act allocations by the amount paid out pursuant to this 
            bill. 

           FISCAL EFFECT  

          The proposed continuous appropriation of Federal Trust Funds to 
          CDA and DOR in the absence of an enacted state budget is 
          contrary to the general policy of this Committee to avoid 
          continuous appropriations. More than $500 million in Federal 
          Trust Funds per year are disbursed for these two departments 
          combined. 

           COMMENTS  

           1)Rationale  . This bill would create a continuous appropriation 
            for CDA and DOR if the state budget is not enacted by July 1. 
            The proposed 2011-12 budget includes $152.4 million in Federal 
            Trust Funds ($182 million all funds) for the CDA. The proposed 








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            2011-12 budget includes approximately $348.4 million in 
            Federal Trust Funds ($416 million all funds) for DOR.

           2)Background  . CDA administers the federal Older Americans Act 
            and 33 AAAs statewide serve as local administrators of an 
            array of services to elderly Californians.  DOR assists 
            Californians with disabilities to obtain and retain employment 
            and maximize their ability to live independently in their 
            communities. DOR also provides technical assistance and 
            training and via 29 ILCs statewide.

           3)Prior Legislation  . In recent years, numerous bills have sought 
            to authorize or require continuous appropriations for specific 
            programs or departments during periods of budget impasse. All 
            of the following measures were held on this committee's 
            Suspense File:

             a)   AB 256 (Huff) of 2007, AB 697 Oropeza of 2005, and AB 
               1443 (Murray) of 2003, to continuously appropriate all fuel 
               tax revenue for transportation purposes.

             b)   AB 322 (Anderson) of 2007 and AB 1928 (Berg) in 2006, to 
               continuously appropriate federal funds to the Departments 
               of Aging and Rehabilitation to support specific activities.

             c)   AB 1125 (Hern�ndez) of 2009, AB 1523 (Soto) of 2007, AB 
               742 (Jones) of 2005, and AB 1535 (Bermudez) of 2003, to 
               continuously appropriate funds to pay all state employee 
               salaries and benefits.

             d)   AB 1604 (Saldana) of 2005 to continuously appropriate GF 
               to support the California Community College system.

             e)   AB 273 (Bogh) of 2003 to continuously appropriate GF to 
               pay state peace officers' salaries.

            AB 1699 (Hern�ndez) of 2010, which continuously appropriate 
            funds to pay all state employee salaries and benefits, passed 
            this committee, but was subsequently amended to become an 
            urgency measure and failed in the Senate.

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081 










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