BILL ANALYSIS �
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 1466|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 1466
Author: Assembly Budget Committee
Amended: 6/25/12 in Senate
Vote: 21
ASSEMBLY FLOOR : Not relevant
SUBJECT : General Government Omnibus Budget Trailer Bill
SOURCE : Author
DIGEST : This bill provides the necessary statutory
references to enact the 2012-13 Budget related to General
Government, as specified in the analysis below.
ANALYSIS : This bill includes the following provisions:
1. National Mortgage Settlement Proceeds . Creates a
deposit fund for the receipt of certain direct payments
from the National Mortgage Settlement. Allows the
Director of the Department of Finance (DOF), in
accordance with legislative intent, to offset General
Fund (GF) expenditures during the 2011-12, 2012-13, and
2012-14 fiscal years.
2. 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
CONTINUED
AB 1466
Page
2
audits will still be a requirement prior to an airport
entity collecting the specified fee.
3. Oversight and Audit Responsibilities of DOF . Ensures
that DOF retains its internal oversight audit
responsibilities.
4. Authorizes the Sale of Capital Area Development
Authority (CADA) Properties . Authorizes the Department
of General Services to sell specified parcels of
property that are leased by the department to CADA. The
proceeds of the sale would be deposited into the GF or
the Deficit Recovery Fund.
5. 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.
6. Proposition 1B Transit and Waterborne Programs .
Enhances oversight responsibilities of the disposition
of Proposition 1B related funds by the California
Emergency Management Agency (CalEMA) and allows for
CalEMA to take into account when funding projects the
ability of a project to expend funds within a specified
timeframe.
7. Technology Agency Project Oversight . Enables the
California Technology Agency to develop and apply
uniform criteria on high risk projects in order to
reduce project risk and the potential for cost
increases.
8. 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 (CVSO) related operations.
9. 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.
CONTINUED
AB 1466
Page
3
10. University of California (UC) Capital Outlay Interim
Financing Costs Reimbursement by the Public Works Board
(PWB). Authorizes PWB to provide repayment from state
bond proceeds to the UC for the interim financing costs
of capital outlay projects that have been approved by
the Legislature. Under existing 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.
11. 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.
12. Reduction for Employee Compensation . As required by a
memorandum of understanding or by direction of the
Department of Human Resources (CalHR) for excluded
employees, specifies state employees shall participate
in the Personal Leave Program 2012 (PLP 2012) for the
period from July 1, 2012, to June 30, 2012. Under the
provisions of this bill, an employee participating in
the PLP 2012 shall receive a reduction in pay not
greater than five percent and, in exchange, receive
eight hours of PLP 2012 leave credits on the first day
of each monthly pay period. For those state employees
not subject to the PLP 2012, requires CalHR to adopt a
plan to furlough those employees one workday per
calendar month for the period July 1, 2012, to June 30,
2013. Requires that reductions for employee
compensation for the period from July 1, 2012, to June
30, 2013, apply to employees of the State Compensation
Insurance Fund. These statutory changes further
implement Control Section 3.90 of the Budget Act of
CONTINUED
AB 1466
Page
4
2012, which achieves employee compensation-related
savings of $402 million GF.
13. Administrative Costs for Financial Information System
for California . Modifies the definition of
administrative costs to include amounts expended by the
Financial Information System for California.
Administrative costs are defined as amounts required for
supervision and administration of state government for
services to state agencies. Existing law requires DOF
to determine, and the State Controller to notify, a
state agency of the amount deemed to be the fair share
of administrative costs due and payable from each state
agency.
14. Credit Enhancement Fees . Deletes the sunset date for
language that places a 3% cap on amounts appropriated
for fees, costs, and other similar expenses incurred in
connection with any credit enhancement or liquidity
agreement on bonds payable from the State's General
Fund. After the June 30, 2013 sunset, the cap will fall
to 2%. The cap was temporarily raised to 3% in budget
legislation adopted in 2009. Market conditions could
necessitate retention of the 3% cap and allow flexible
overall terms possible for state borrowing.
15. Repeal of the Filipino Employee Survey Mandate . Repeals
the Filipino Employee Survey Mandate, a state mandate
that had been suspended since 1990.
16. Financial Information Systems for California (FI$Cal) .
Improves annual legislative reporting requirements for
FI$Cal, including benefits from the project that were
achieved during the reporting period, and updates on the
progress of meeting specific project objectives.
17. Capital Investment Incentive Program . Expands the
ability of a city, county, or a city and a county to pay
an investment incentive, to include qualified research
and development facilities until July 1, 2013. Capital
investment incentives are amounts up to the amount of ad
valorem property taxes paid by the qualified research
and development facility, less 25%.
CONTINUED
AB 1466
Page
5
18. Mandate Suspensions . Specifies that local government
mandates suspended in the 2012-13 Budget Act shall also
be suspended in 2013-14 and 2014-15, and there shall be
no appropriation for payment of reimbursement claims
submitted for fiscal years 2012-13, 2013-14 and 2014-15.
19. Excise Tax Sunset Elimination . Removes the sunset date
from the shift to the GF of excise taxes on gasoline
purchased for certain uses, thus allowing the shift of
these excise tax revenues to flow to the GF
indefinitely.
20. ALRB General Counsel Allocation . Shifted funding from
the Board Administration budget item to the General
Counsel Administration budget item within the
Agricultural Labor Relations Board. This shift is cost
neutral to the GF and is necessary to help the General
Counsel oversee union representation elections among
farmworkers.
Comments
This bill enacts various provisions to support the 2012
Budget Act, and among other things, improves oversight of
state technology procurement, enacts changes to help bring
more federal benefits to veterans, and makes changes to
allow for a structurally-balanced budget for the next four
years.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Senate Budget and Fiscal Review Committee
analysis, creates a special deposit fund that will allow
the state to use $410.6 million from the National Mortgage
Settlement to offset GF costs, allows for the sale of state
property that can be deposited into the GF, and helps
provide for a balanced budget in future years by removing
the sunset date regarding excise taxes on gasoline
purchased for specific uses and extending a suspension of
local mandates.
DLW:m 6/26/12 Senate Floor Analyses
CONTINUED
AB 1466
Page
6
SUPPORT/OPPOSITION: NONE RECEIVED
**** END ****
CONTINUED