BILL ANALYSIS �
SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
Mark Leno, Chair
Bill No: AB 1466
Author: Committee on Budget
As Amended: June 13, 2012
Consultant: Brady Van Engelen
Fiscal: Yes
Hearing Date: June 14, 2012
Subject: General Government Omnibus Trailer Bill
Summary: Statutory changes necessary to implement the
General Government related provisions of the Budget Bill.
Proposed Law: This bill includes the following key changes
necessary to implement the General Government related
provisions of the Budget Act:
National Mortgage Settlement Proceeds. Creates a deposit
fund for the receipt of certain direct payments from the
National Mortgage Settlement. Allows the Director of
Finance, in accordance with legislative intent, to offset
General Fund expenditures during the 2011-12, 2012-13, and
2012-14 fiscal years.
Deletes Requirement for State Controller to perform review
of Airport Fee Audits. Deletes the requirement for the
State Controller to review independent audits necessary to
collect specified fees related to rental car companies and
customer facilities. The independent audits will still be a
requirement prior to an airport entity collecting the
specified fee.
Revision of the Commission of the Status of Women and
Girls. Restructures the mission and construct of the
Commission on the Status of Women and Girls.
Oversight and Audit Responsibilities of the Department of
Finance. Ensures that the Department of Finance retains
its internal oversight audit responsibilities.
Authorize the sale of CADA properties. Authorizes the
Department of General Services to sell specified parcels of
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property that are leased by the department to the Capital
Area Development Authority. The proceeds of the sale would
be deposited into the General Fund or the Deficit Recovery
Fund.
DNA Penalty Assessment. Increases the amount of state-only
penalty to $4 for every $10, or part of $10 of those
payments for specified criminal offenses. Funds are
utilized to fund the operations of the Department of
Justice forensic laboratories.
Proposition 1B Transit and Waterborne Programs. Enhances
oversight responsibilities of the disposition of
Proposition 1B related funds by the California Emergency
Management Agency and allow for CalEMA to take into account
when funding projects the ability of a project to expend
funds within a specified timeframe.
Commission on Uniform State Laws. Consolidates the
Commission on Uniform State Laws within the Legislative
Counsel Bureau.
Elimination of the Fair Employment and Housing Commission.
Consolidates the Fair Employment and Housing Commission
within the Department of Fair Employment and Housing and
constructs a council within the Department that would
conduct public hearings and take regulatory action when
necessary. Also allows the courts to award reasonable
attorney's fees and costs to the Department. Creates a
special fund for the deposit of awarded costs that, upon
appropriation by the Legislature, transfer to the General
Fund or support departmental functions.
Eliminate Technology Services Advisory Board. Repeals
provisions establishing the Technology Services Board.
Currently, the Secretary of the California Technology
Agency is required to submit the proposed rates of the
Office of Technology Services' to the board for
consideration. The Secretary is also required to submit any
rate change to the Department of Finance.
Technology Agency Project Oversight. Enables the
California Technology Agency to develop and apply uniform
criteria on high risk projects in order to reduce project
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risk and the potential for cost increases.
Eliminate the Electronic Funds Transfer Task Force.
Eliminates a Task Force that was responsible for devising a
plan on the development and implementation of a new payment
dispersal system using electronic funds transfer
technology. AB 1585 (Chapter 7, Statutes of 2010) defined
the report as obsolete thus making the Task Force mission
obsolete.
CVSO Funding and Review. Revises the formula utilized by
the Department of Veterans Affairs to ensure that a more
qualitative rather than quantitative measure is utilized to
disburse funds to support County Veteran Service Officer
related operations.
Negotiated Process for the California Technology Agency.
Allows the California Technology Agency to utilize a
negotiated process on Information Technology related
procurement contracts if certain criteria are met.
Transfer State Mediation and Conciliation Services to
Public Employment Relations Board. Makes the necessary
conforming, technical changes to statue to effectuate the
transfer of the State Mediation and Conciliation Service
from the Department of Industrial Relations to the Public
Employment Relations Board. This is one several government
efficiency proposals contained in the 2012 Budget Act.
This request has a net-zero budget impact between the two
budget items but results in the reduction of one
limited-term position.
University of California Capital Outlay Interim Financing
Costs Reimbursement by the Public Works Board. Authorizes
the Public Works Board (PWB) to provide repayment from
state bond proceeds to UC for the interim financing costs
of capital outlay projects that have been approved by the
Legislature. Under current law, reimbursement is limited
to only the principal amount financed. With this change,
UC would be able to provide interim financing for the list
of projects that have been approved by the Legislature, but
for which bonds have not been sold, thereby allowing these
projects to move forward.
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Department of Industrial Relations Reorganization:
Consolidated Public Works Enforcement. Eliminates the
Division of Labor Statistics and Research and establishes
consolidated public works enforcement within the Division
of Labor Standards Enforcement within the Department of
Industrial Relations. This is one several government
efficiency proposals contained in the 2012 Budget Act.
This consolidation will result in the reduction of one
position and on-going savings of $231,000 GF.
Employment Development Department: Automated Collection
Enhancement System Technical Statutory Clean-up. Provides
for the necessary "clean-up" to remove from statute the
Franchise Tax Board's authority to collect delinquent
accounts for the Department of Industrial Relations (DIR).
This statutory authority is no longer needed; as of January
31, 2012, the Employment Development Department's Automated
Collection Enhancement System is collecting all delinquent
accounts for DIR.
California Unemployment Insurance Appeals Board Reforms.
Reduces the size of the California Unemployment Insurance
Appeal Board by two members (from a total of seven to five)
and increases the qualifications of the Board members to
require that they, at a minimum, be an attorney and have
one year of experiences in conducting judicial hearings or
five years of experience in the practice of law. This is
one of several government efficiency proposals contained in
the 2012 Budget Act. The proposal also retains the Board
level review of the appeals caseload and eliminates vacant
positions; when combined with the reduction in the size of
the Board, results in savings of $1.2 million (other funds)
in 2013-14 and on-going.
Administrative Costs for Financial Information System for
California. Modifies the definition of administrative
costs to include amounts expended by the Financial
Information System for California (FI$CAL). Administrative
costs are defined as amounts required for supervision and
administration of state government for services to state
agencies. Existing law requires the Department of Finance
to determine, and the Controller to notify, a state agency
of the amount deemed to be the fair share of administrative
costs due and payable from each state agency.
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Credit Enhancement Fees. Deletes the sunset date for
language that places a 3-percent cap on amounts
appropriated for fees, costs, and other similar expenses
incurred in connection with any credit enhancement or
liquidity agreement on bonds payable from the State's
General Fund. After the June 30, 2013 sunset, the cap will
fall to 2 percent. The cap was temporarily raised to 3
percent in budget legislation adopted in 2009. Market
conditions could necessitate retention of the 3-percent cap
and allow flexible overall terms possible for State
borrowing.
Voluntary Investment Program. Allows local governments,
school districts and special districts to deposit money
into a fund within the state treasury for the state to use
for cash flow purposes.
Repeal of the Filipino Employee Survey Mandate. Repeals the
Filipino Employee Survey Mandate, a state mandate that had
been suspended since 1990.
Financial Information Systems for California. Improves
annual legislative reporting requirements for the Financial
Information System for California, including benefits from
the project that were achieved during the reporting period,
and updates on the progress of meeting specific project
objectives.
Fiscal Effect: This bill should not result in any changes
to the budget act in related budget actions.
Support: Unknown
Opposed: Unknown
Comments: This bill provides the necessary statutory
references to enact the 2012-13 budget related to General
Government.
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