BILL ANALYSIS                                                                                                                                                                                                    �



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 288|
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                                    CONSENT


          Bill No:  SB 288
          Author:   Negrete McLeod (D)
          Amended:  3/29/11
          Vote:     21

           
           SENATE GOVERNANCE & FINANCE COMMITTEE  :  8-0, 4/6/11
          AYES:  Wolk, Huff, DeSaulnier, Fuller, Hancock, Hernandez, 
            La Malfa, Liu
          NO VOTE RECORDED:  Kehoe


           SUBJECT :    Local government:  independent special 
          districts

           SOURCE  :     California Special Districts Association


           DIGEST  :    This bill authorizes an independent special 
          district to establish, by resolution, a revolving fund in 
          an amount that does not exceed 110 percent of one-twelfth 
          of the district's adopted budget for the fiscal year.

           ANALYSIS  :    In 1976, the Legislature authorized 
          independent special districts to establish a $1,000 petty 
          cash fund to pay for routine expenditures, like utility 
          bills (AB 2997 �Mobley and Duffy], Chapter 333, Statutes of 
          1976).  This authority applied only to districts that used 
          the county treasury as the holding place for the districts' 
          funds.  In 1982, the Legislature authorized public cemetery 
          districts to establish revolving funds in an amount not to 
          exceed 110 percent of one-twelfth of the districts' adopted 
          budget for the fiscal year (AB 2388 �Kelley], Chapter 629, 
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          Statutes of 1982).  In 1990, AB 3179 (N. Waters), Chapter 
          1002, granted the same authority to mosquito abatement and 
          vector control districts.

          This bill authorizes an independent special district to 
          establish, by resolution, a revolving fund in an amount 
          that does not exceed 110 percent of one-twelfth of the 
          district's adopted budget for the fiscal year.  This bill 
          requires the resolution establishing the revolving fund to 
          designate:

           The purposes for which the fund may be expended.
           The district officer who is responsible for keeping 
            receipts and making disbursements. 
           The necessity for the fund.
           The maximum amount of the fund.

           Comments  

          This bill creates consistency among the enabling acts of 
          independent special districts.  The $1,000 revolving fund 
          limit has not been increased since 1976, and the authority 
          for establishing larger funds exists only for public 
          cemetery and mosquito abatement and vector control 
          districts.  Public cemetery districts and mosquito 
          abatement and vector control special districts have used 
          larger revolving funds for more than 20 years.  Authorizing 
          all independent special districts to establish larger 
          revolving funds can help them pay their routine 
          expenditures more efficiently and expediently.  The 110 
          percent of one-twelfth of the district's adopted budget is 
          just over one month's worth of expenditures. 

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No   
          Local:  No

           SUPPORT  :   (Verified  4/6/11)

          California Special Districts Association (source)
          California Association of Public Cemeteries



          AGB:mw  4/7/11   Senate Floor Analyses 







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                         SUPPORT/OPPOSITION:  SEE ABOVE

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