BILL ANALYSIS                                                                                                                                                                                                    �






                                                       Bill No:  SB 
          118
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                       Senator Roderick D. Wright, Chair
                           2011-2012 Regular Session
                                 Bill Analysis
          

          SB 118  Author:  Yee
          Amended:  January 4, 2012
          Hearing Date:  January 10, 2012
          Consultant:  Paul Donahue


           SUBJECT  :  State Controller 

           SUMMARY  :  Gives statutory reimbursement authority to the 
          State Controller for work performed by the Office in 
          connection with issuance of state-issued revenue bonds.

           Existing law  :

          1) Requires the State Controller to, among other things, 
          account for scheduled expenditures and report monthly on 
          revenue and each department's expenditures. 

          2) Establishes the means by which the Controller is 
          reimbursed for actual expenses incurred in the 
          administering or review of certain loans, assuring state 
          general obligation bond compliance, and other related and 
          necessary services.

           This bill  : 

          1) Requires the Controller to receive reimbursement for 
          associated expenses incurred in the accounting of 
          expenditures related to the issuance and statewide 
          accounting of revenue bonds.

          2) Authorizes the State Controller's Office to recover 
          outstanding receivable expenses by initiating a request to 
          transfer funds from the responsible agency for related 
          unpaid invoices. 

           COMMENTS  :




          SB 118 (Yee)                                            
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          1)  Purpose of the bill :  The State Controller's Office 
          (SCO) has traditionally entered into an Interagency 
          Agreement with the State Treasurer's Office (STO) that 
          outlines a procedure for the SCO to invoice the STO for 
          actual expenses incurred in connection with services 
          performed by the SCO related to the issuance of revenue 
          bonds by the STO.

          AT the end of FY 2010-11, the STO notified the SCO that it 
          was no longer willing to sign an Interagency Agreement for 
          this purpose.  The SCO has authority to be reimbursed for 
          actual expenses incurred for accounting work related to 
          General Obligation Bonds (Govt. Code � 16724.6), but lacks 
          express statutory authority for reimbursement for similar 
          work it performs related to revenue bonds.  This bill 
          simply provides statutory authority for the SCO to obtain 
          reimbursement for work on revenue bonds.

          2)  Support  :  The State Controller writes in support of the 
          bill that, "at no additional state costs, and by adopting a 
          reimbursement authority in place for the state's general 
          obligation bonds, SB 118 will allow my office to recoup 
          costs incurred for accounting activities related to revenue 
          bond programs, as well as for maintenance after bonds are 
          issued."

           SUPPORT:   

          State Controller 

           OPPOSE:   

          None on file

           FISCAL COMMITTEE:   Senate Appropriations Committee



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          SB 118 (Yee)                                            
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