BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2227
                                                                  Page  1

          Date of Hearing:   May 14, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     AB 2227 (Quirk) - As Amended:  May 7, 2014 

          Policy Committee:                              Natural  
          ResourcesVote:9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill establishes procedures and guidance for the Citizens  
          Oversight Board (COB) created by the Califorinia Clean Energy  
          Jobs Act (Proposition 39).  Specifically, this bill: 

          1)Locates the COB in the State Treasurer's office (STO) in  
            Sacramento and requires meetings to be duly noticed and open  
            to the public.  Requires COB to hold at least four meetings  
            per year or as often as the chair or board deems necessary.

          2)Specifies COB members serve four-year terms, and may be  
            reappointed for two additional terms.  Authorizes the COB to  
            select a chair and vice chair and delineates duties and  
            responsibilities.

           FISCAL EFFECT  

          Initial increased costs for the STO in the range of $300,000 to  
          $500,000 to staff the COB and perform the required audits,  
          evaluations, and reports.  Ongoing annual costs of up to  
          $300,000 (Proposition 39 funds).

           COMMENTS  

           1)Purpose.   According to the author, this bill establishes  
            general government requirements for the COB and provides the  
            detail necessary to accomplish its mission.

           2)Background.    Proposition 39 was approved by the voters in  
            2012.  Each year for five years, Proposition 39 dedicates $550  
            million or 50% (whichever is less) of the annual increase in  








                                                                  AB 2227
                                                                  Page  2

            revenues resulting from requiring multi-state businesses to  
            use the single-sales factor when calculating their California  
            tax liability. The funds may be used for projects that create  
            energy efficiency and clean energy jobs in California.  

            Proposition 39 established the COB to consist of a total of  
            nine members; three members 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 expenditures, commission  
            and review audits, publish an accounting of 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.  
             
          3)California Energy Commission Guidelines.   Last year's budget  
            required the California Energy Commission (CEC), in  
            consultation with the Department of Education, the Public  
            Utilities Commission, and the Chancellor of the Community  
            Colleges, to develop guidelines for Proposition 39.  

             On December 19, 2013, CEC published Proposition 39: California  
            Clean Energy Jobs Act -2013 Program Implementation Guidelines.  
             The guidelines define how the state plans to implement the  
            program including providing information on the types of awards  
            and proposal requirements, defining screening and evaluation  
            criteria and outlining the award process.  
             


            Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
            319-2081