BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 118
                                                                  Page  1

          Date of Hearing:   June 12, 2012

              ASSEMBLY COMMITTEE ON BUSINESS, PROFESSIONS AND CONSUMER 
                                     PROTECTION
                                 Mary Hayashi, Chair
                      SB 118 (Yee) - As Amended:  April 26, 2012

           SENATE VOTE  :   35-0
           
          SUBJECT  :   State Controller's Office: reimbursement for 
          expenses.

           SUMMARY  :   Requires a state agency to reimburse the Controller 
          for accounting costs incurred for revenue bonds, and requires 
          the Controller to invoice the state agency for those costs.

           EXISTING LAW  requires that the Treasurer, Controller, and the 
          Department of Finance to be reimbursed for actual expenses 
          incurred in the administration of state general obligation (GO) 
          bonds. �Government Code (GC) Section 16724.6]

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           Purpose of this bill  .  According to the author's office, 
          "Historically, the State Controller's Office (SCO) has had an 
          interagency agreement with the State Treasurer's Office (STO) 
          that allowed the SCO to bill the STO for actual expenses 
          incurred related to bond work.  The STO would reimburse the SCO 
          and then seek reimbursement from the respective state agency.  
          At the end of Fiscal Year (FY) 2010-11, the STO informed the SCO 
          that they no longer wanted to engage in the interagency 
          agreement.  

          "The SCO has the authority to be reimbursed for actual expenses 
          incurred for accounting work related to GO bonds, per GC Section 
          16724.6.  The SCO performs accounting tasks related to GO bonds, 
          as well as for revenue bonds, but has no authority in law to be 
          directly reimbursed for the expenses incurred while performing 
          accounting work related to revenue bonds.  

          "This bill requires the Controller to invoice a state agency for 
          the costs associated with the accounting of expenditures related 
          to revenue bonds, and requires the state agency to pay the 








                                                                  SB 118
                                                                  Page  2

          invoice." 

           Background  .  Existing law requires that the Controller be 
          reimbursed for actual expenses incurred in the administration of 
          state GO bonds.  This bill requires that the SCO be directly 
          reimbursed by a state agency for accounting costs incurred for 
          revenue bonds. 
          
           Support  .  According to the California State Controller, "At no 
          additional state cost, and by adopting a reimbursement authority 
          similar to that currently 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."

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California State Controller
          California State Treasurer
           
            Opposition 
           
          None on file. 

           Analysis Prepared by  :    Joanna Gin / B.,P. & C.P. / (916) 
          319-3301