BILL ANALYSIS �
SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
Mark Leno, Chair
Bill No: AB 1459
Author: Committee on Budget
As Amended: June 12, 2014
Consultant: Brady Van Engelen, Mark Ibele and Farra
Bracht
Fiscal: Yes
Hearing Date: June 15, 2014
Subject: Budget Act of 2014: General Government Omnibus
Trailer Bill
Summary: This measure makes various statutory changes
necessary to implement the general government-related
provisions of the Budget Act of 2014.
Background: As part of the 2014-15 budget package, AB 1459
makes various statutory changes to implement the budget
act.
Proposed Law: This bill includes the following key
changes:
1. Transfers unencumbered funds within the State
School Deferred Maintenance Fund to the State School
Utilization Fund for the administration of the Leroy
F. Greene School Facilities Act of 1998.
2. Establishes that, beginning July 1, 2014, a
contractor or subcontractor would be required to
register with the Department of Industrial Relations,
pay an initial nonrefundable registration fee of $300,
pay an annual renewal fee each July 1 thereafter, and
as part of the registration process, provide specified
information to establish the contractor's eligibility
to be registered. Fee revenues will be used for the
reasonable costs of administering the registration and
qualification of contractors, the costs and
obligations associated with administration and
enforcement requirements related to prevailing wage
responsibilities, and public works projects monitoring
and enforcement duties of the Labor Commissioner.
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3. Transfers authority for the management of state
records from the Department of General Services to the
Secretary of State.
4. Authorizes the Department of Technology to require
and collect monthly payments for services provided to
client agencies.
5. Repeals the January 1, 2015, sunset date for the
Department of Technology.
6. Clarifies the names of various state entities.
7. Establishes a new State-County Assessor Partnership
Program, using a grant approach funded at $7.5
million. The program is designed to improve property
tax assessment for purposes of the local property tax
collections. Currently, neither local schools nor the
state contribute to local property tax administration
costs. Schools benefit from the property tax, and the
revenues offset state Proposition 98 costs. The pilot
program is funded for three years and requires a
county funding match equivalent to the state grant
amount.
8. Contains provisions that allow for the distribution
of local property taxes that otherwise would continue
to be impounded. Under current law, certain property
taxes, collected pursuant to the supplemental roll,
cannot legally be distributed to local governments if
all a county's school districts are basic aid. The
bill would address this technical issue and allow for
the distribution of these "stranded" property taxes.
When all of a county's K-12 schools are basic aid, the
property tax that currently cannot be distributed to
these schools, would be redistributed to the county,
County Office of Education, Community Colleges,
cities, and special districts. The distribution would
be proportionate to each affected taxing entity's
share of the "AB 8 base."
9. Clarifies that the Department of Finance, the
Controller, the Treasurer, and the Department of
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General Services are to collaboratively develop,
implement, and maintain, the Financial Information
System of California (FI$Cal) to be used upon full
implementation by all state departments and agencies.
Creates a FI$Cal Consolidated Payment Fund for the
distribution of consolidated payments to payees that
would have otherwise been appropriated through the
State Treasury. This bill also includes a requirement
that a background check be conducted on all
individuals that are employees, prospective employees,
subcontractors, volunteers, or vendors, prior to
working within specific offices of the FI$Cal service
center.
10. Extends the Controller's authority to procure,
modify, and implement the 21st Century Project, a
human resource management system, until June 30, 2015.
11. Current law requires that upon completion of a
capital outlay project, or a design-build project, any
remaining funds in the construction reserve fund must
be used to offset rental payments. This bill contains
a provision that would delete the offset requirement
for both capital outlay and design-build projects.
12. Existing law authorizes the Victims Compensation
and Government Claims Board to administer, upon
appropriation by the Legislature, a grant program to
Trauma Recovery Centers. This bill would make the
Trauma Recovery Center grant program, administered by
the Victims Compensation and Government Claims Board,
permanent.
13. The Local Agency Investment Fund, operated by the
State Treasurer, allows agencies to invest funds not
needed for immediate purposes. As a result of
low-interest rates, the earnings used to pay for
administering the fund are inadequate to cover
administrative costs. This bill would increase the
maximum amount of earnings that may be used to cover
these costs when certain conditions exist.
14. Limits specified costs for issuing commercial paper
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notes to three percent of the maximum principal amount
of commercial paper notes that could be purchased, and
are outstanding at any one time, pursuant to an
agreement, or 0.25 percent of the highest sum of the
maximum principle amount authorized by certain
resolutions.
15. Provides for a phased application of salary
increases to managers and supervisors of State
Bargaining Unit 9 and State Bargaining Unit 10,
effective July 1, 2014.
16. Establishes an account in the Public Employees'
Reserve Fund for the deposit of contributions towards
premiums.
17. Abolishes the California Housing Trust Fund, and
transfers the remaining balance, assets, liabilities,
and encumbrances to the Housing Rehabilitation Loan
Fund. This bill also abolishes the School Facilities
Fee Assistance Fund, and designates the General Fund
as the successor fund for any loan repayments. Both of
the abolished funds are administered by the Department
of Housing and Community Development.
18. Identifies the Department of Housing and Community
Development as an eligible recipient of up to $11
million in Proposition 1C funding, for the
rehabilitation and deferred maintenance of state-owned
migrant centers through the Office of Migrant
Services.
19. Removes the direct appropriation to the California
Military Museum, and, instead appropriates the funds
to the Military Department for the purposes of
operating the California State Military Museum and
Resource Center.
20. Existing law provides that the express factual
findings made by a court in considering a petition for
habeas corpus is binding on the Attorney General, the
factfinder, and the California Victim Compensation and
Government Claims Board. This bill would clarify that
the court, for purposes of those provisions governing
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binding factual allegations and express factual
findings, is defined as either state or federal court.
21. Existing law establishes the Victim-Witness
Assistance Fund, to be administered by the Office of
Emergency Services. Funds within the account are to be
made available to any public, or private, non-profit
agency, for the assistance of victims and witnesses.
This bill clarifies that these funds are to be used
for any purpose that supports victims.
22. Deletes the requirement that Orange County maintain
two auditors, a provision that was unique to Orange
County.
Fiscal Effect: Appropriates $2,000,000 from the General
Fund to the Governor's Office of Business and Economic
Development on a one-time basis to be used to draw down
federal funding in support of the Small Business Center
Network Program. The funds shall remain for encumbrance and
expenditure until June 30, 2017.
Support: Unknown.
Opposed: Unknown.
Comments:
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