BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 85
                                                                  Page  1


          SENATE THIRD READING
          SB 85 (Budget and Fiscal Review Committee)
          As Amended  June 12, 2013
          Majority vote.  Budget Bill Appropriation Takes Effect  
          Immediately
           
          SUMMARY  :  Contains provisions related to transportation  
          necessary to implement the 2013-14 Budget package.  Specially,  
           this bill  :

          1)Creates a direct payment account for debt service from weight  
            fees, rather than using weight fees to reimburse the General  
            Fund.  The direct payment would improve the credit rating for  
            these bonds and allow the state to issue bonds at yields 40-50  
            basis points lower than other General Obligation (GO) bonds.

          2)Continues the dedication of certain special fund revenues  
            associated with transportation to debt service payments  
            associated with transportation projects. 

          3)Includes language to specify cash accounting methods for  
            special funds.

          4)Provides the High Speed Rail Authority with authority to  
            establish a process and rules for the relocations of utilities  
            outside the right-of-way for the High-Speed Rail project.  The  
            process is modeled after procedures already in place for the  
            California Department of Transportation (Caltrans) projects.

          5)Contains an appropriation allowing this bill to take effect  
            immediately upon enactment.

           FISCAL EFFECT  :  The provisions of this bill result in an ongoing  
          savings of $67 million General Fund, which are included in the  
          overall architecture of the 2013-14 budget package.

           COMMENT  :  This bill is the transportation budget trailer bill  
          associate with the 2013-14 Budget package.  It makes necessary  
          changes to statute to achieve these savings and also to improve  
          the overall state's financial position in terms of cash  
          management and credit rating of state bonds.


           Analysis Prepared by  :   Christian Griffith / BUDGET / (916)  








                                                                  SB 85
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          319-2099


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