BILL ANALYSIS �
AB 2227
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Date of Hearing: May 1, 2014
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
AB 2227 (Quirk) - As Amended: April 23, 2014
SUBJECT : Citizens Oversight Board: implementation
SUMMARY : Establishes procedures and guidance for the Citizens
Oversight Board (COB) created by The California Clean Energy
Jobs Act (Prop. 39).
EXISTING LAW :
1)Pursuant to Prop. 39, which was approved by the voters at the
November 6, 2012 statewide general election:
a) Repeals prior law allowing multistate businesses to
choose a formula for calculating their California income or
franchise tax liability and, instead, requires those
businesses, starting in 2013, to utilize the "single sales
factor" (SSF) method of determining their taxable income.
b) Establishes the COB, composed of nine members appointed
by the State Treasurer, the State Controller, and the
Attorney General, as specified. The COB is tasked with:
i) Annually reviewing all expenditures from the Clean
Energy Job Creation Fund (Fund);
ii) Commission and review an annual independent audit of
the Fund and of a selection of projects completed to
assess the effectiveness of the expenditures;
iii) Publish a complete accounting of all expenditures
annually; and,
iv) Submit an evaluation of the program to the
Legislature that identifies any changes needed to meet
the directives.
c) Dedicates $550 million or 50 percent of the annual
increase in revenues from the SSF, whichever is less,
annually for five fiscal years (2013-14 through 2017-18) to
the Fund for projects that create energy efficiency and
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clean energy jobs in California, upon appropriation by the
Legislature. The funding may include:
i) Energy efficiency and clean energy installations at
public schools, universities and colleges, and other
public buildings;
ii) Job training and workforce development on clean
energy and energy efficiency programs; and,
iii) Financing and technical assistance to fund Property
Assessed Clean Energy (PACE) programs.
2)Pursuant to SB 73 (Committee on Budget), Chapter 29, Statutes
of 2013:
a) Specifies the allocation of Prop. 39 funding available
for energy efficiency projects at K-12 schools and
community college districts.
b) Requires the California Energy Commission (CEC), in
consultation with the California Department of Education
(CDE), the Chancellor of California Community College
districts, and the Public Utilities Commission, to develop
guidelines for contracts, as specified.
c) Appropriates $28 million from Prop. 39 funds to the
State Energy Conservation Assistance Account (ECAA) for
energy efficiency loans.
d) Appropriates $3 million from Prop. 39 funds to the
California Workforce Investment Board to develop and
implement a competitive grant program for organizations
that prepare disadvantaged youth or veterans for
employment.
THIS BILL :
1)Requires that funding for the COB "shall be provided in the
annual Budget Act."
2)Specifies that COB members serve for a four-year term and may
be reappointed for two additional terms.
3)Requires that the COB principal office be located in the
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Treasurer's office in Sacramento.
4)Specifies procedures for COB meetings and requires COB to meet
at least quarterly.
5)Authorizes COB to elect a chair and vice chair. Specifies
that the chair oversee meetings, work with staff to ensure COB
resolutions are carried out, call special meetings if
necessary, appoint committee chairs, coordinate the hiring of
staff and consultants, and other duties as specified.
6)States that the duties of the COB under the bill are "in
addition to, and in conjunction with" the duties specified in
Prop. 39, including:
a) Review and evaluate the progress and status of projects;
b) Prepare, approve, and distribute annual reports of its
activities, findings, and recommendations to the Governor,
Legislature, and the public; and,
c) Establish procedures for the preparation and
distribution of the annual reports.
7)Authorizes the chair to approve expenses of the COB, as
specified.
8)Authorizes the chair to testify before state bodies only if
approved by the COB.
9)Specifies that the COB operate in accordance with Robert's
Rules of Order.
FISCAL EFFECT : Unknown
COMMENTS :
1)Background . The COB was established by voters in Prop. 39 and
consists of nine members; three members are to be appointed
each by the State Controller, the State Treasurer, and the
Attorney General. To date, the Controller and Treasurer have
appointed members. The purpose of the COB is to review Fund
expenditures, commission and review annual independent audits
of the Fund and selected projects, publish an accounting of
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annual expenditures, and submit a program evaluation to the
Legislature.
While Prop. 39 created the COB and its purpose; it was largely
silent on the structure, procedures, and other details
relating to COB operations.
On December 19, 2013, CEC published Proposition 39: California
Clean Energy Jobs Act -2013 Program Implementation Guidelines
in accordance with SB 73. The guidelines define how the
state plans to implement Prop. 39, provide information on the
types of awards and proposal requirements, explain screening
and evaluation criteria, describe the standards that will be
used to evaluate project proposals, and outline the award
process.
2)This bill . According to the author, "this legislation
provides all the necessary detail for the board to accomplish
its mission." This bill establishes general governance
requirements for the operations of the COB.
3 Suggested amendments . This bill contains a number of
provisions that the committee may wish to amend to make them
consistent with other state boards and advisory committees and
ensure that COB member expenses are reimbursed appropriately.
Specifically, the committee may wish to adopt the following
amendments :
a) This bill requires that COB funding be provided in the
annual Budget Act. This provision should be amended to
specify that funding for COB shall be provided upon
appropriation by the Legislature in the annual Budget Act.
b) This bill does not establish a sunset for the COB, even
though Prop. 39 only allocates funds through the 2017-18
fiscal year. The committee may wish to specify that the
provisions of the bill become inoperative on July 1, 2019
and, as of January 1, 2020, are repealed, unless a later
enacted statute deletes or extends that date.
c) Specify that the activities of COB staff shall not be
duplicative of ongoing efforts at the CEC and CDE.
d) Remove the word "active" in reference to the number of
members that constitute a quorum.
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e) Clarify that COB members may submit reimbursement
requests for actual and necessary expenses incurred in the
performance of their duties after the expenses are
incurred.
f) Clarify that any committees formed by the COB must also
comply with the Bagley-Keene Open Meeting Act.
g) Require COB approval of the chair's determination of the
"definition and scope" and the "status, purpose, and
authority" of any committees formed.
h) Clarify that the actions of the COB are limited to the
duties that were established by, rather than "in addition
to" Prop. 39.
i) Strike out the requirement that the chair must have COB
approval to testify before a state body. If the chair is
asked to testify at a legislative hearing, or other state
meeting, his or her presence should not require approval of
the full COB.
j) Authorize the chair and COB to establish rules of
operation for the COB and committees consistent with rules
and practices applicable to similar state boards, rather
than requiring COB to adhere to Roberts Rules of Order.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092