SB 74 — State finances.

Summary

(1) Existing law requires the Controller to draw warrants on the State Treasury in favor of the county treasurer of each county in each month of each year in prescribed amounts and in a prescribed manner. This bill would revise the schedule pursuant to which the Controller draws these warrants and the amount of the warrants. (2) The Quality Education Investment Act of 2006 authorizes school districts and other local educational agencies to apply to the Superintendent of Public Instruction to receive funding to allocate to elementary and secondary schools and charter schools that are ranked in either decile 1 or 2 on the 2005 API for use in performing various specified measures to improve academic instruction and pupil academic achievement. Three hundred million dollars is appropriated from the General Fund for purposes of the act with $450,000,000, for each of the 2008–09 to 2013–14 fiscal years, inclusive, to be allocated to community colleges and to school districts, and chartering authorities that have eligible schools. This bill would require, commencing with the 2009–10 fiscal year, that the payments of the annual amount not be made sooner than October 8 of the fiscal year. (3) Existing law, the California Prompt Payment Act, requires a state agency that acquires property or services pursuant to a contract with a business to make payment to the person or business on the date required by the contract, or be subject to a late payment penalty. The act provides that the maximum time from state agency receipt of an undisputed invoice to issuance of a warrant for payment is 45 calendar days. The act requires the payment of specified penalties to the claimant if the state agency fails to submit a correct claim schedule to the Controller by the required payment approval date, or if the Controller fails to make a payment within 15 calendar days of receipt of the claim schedule from the state agency, as specified. This bill would require late payment penalties to be paid to the claimant if payment is not issued within 45 calendar days from state agency receipt of an undisputed invoice, but would require the state agency and Controller to pay those penalties only when a payment is not issued within 45 calendar days from state agency receipt of the undisputed invoice, and the state agency fails to submit a correct claim schedule by the required payment approval date, or the Controller fails to make a payment within 15 calendar days of receipt of the claim schedule from the state agency. The bill would define "payment" for purposes of these provisions. (4) The California Lottery Act establishes the State Lottery Fund. The act, an initiative measure, provides that certain provisions may be changed by a bill that furthers the purposes of the act and is passed by a 23 vote of each house of the Legislature and signed by the Governor. The act, until September 30, 2009, authorizes the Controller to loan moneys in the State Lottery Fund to the General Fund and requires the payment of interest at a specified rate on all moneys loaned to the General Fund. This bill would delete the September 30, 2009, repeal date for those provisions authorizing the loan of moneys from the State Lottery Fund, thereby extending their operation indefinitely. This bill would declare that it furthers the purposes of the California State Lottery Act. (5) Existing law authorizes the Director of Finance, to defer payment of General Fund moneys, in a cumulative amount not to exceed $500,000 annually, appropriated to the University of California in the annual Budget Act, as specified. This bill would additionally authorize the Director of Finance to defer payments of General Fund moneys in July through September 2009 in an amount not to exceed $750,000,000, appropriated to the University of California in the Budget Act of 2009, as specified. The bill would specify the schedule of payments for the amount deferred, as specified. The bill would also authorize the Director of Finance to defer payments of General Fund moneys in July 2009 in an amount not to exceed $290,000,000, appropriated to the California State University in the Budget Act of 2009, as specified. That deferred payment would be made in October 2009. (6) Existing law releases a person from a debt owed to the Franchise Tax Board, under specified conditions, including that the Franchise Tax Board is discharged from collecting the debt which is less than $250. This bill would increase the amount of the debt that the Franchise Tax Board is discharged from collecting to less than $500. (7) Existing law does not require a state agency to collect a tax, license, fee, or money owed to the state, under specified conditions, including that the amount to be collected is $250 or less. This bill would increase that amount to $500 or less. (8) Existing law, the Accounts Receivable Management Act, requires each state agency, department, and office to allocate collection resources by giving highest priority to accounts with the highest expected return. This bill would authorize these state entities to impose a reasonable fee for the actual costs of its collection of past due accounts, and require them to submit an annual report to the Controller of its accounts receivables and discharged accounts. (9) Existing law, pursuant to Article XIXB of the California Constitution, creates the Transportation Investment Fund, which receives a portion of gasoline sales tax revenues that are deposited in the General Fund. Moneys in the Transportation Investment Fund are allocated to various transportation purposes, including the state transportation improvement program, local streets and roads, and mass transportation. Existing law requires the Controller to transfer and apportion these funds on a quarterly basis. This bill would suspend and defer, until May 31, 2010, the quarterly apportionments from the Transportation Investment Fund for local streets and roads that are scheduled to be made in October 2009 and January 2010. The bill would authorize a city or county to temporarily make use of any cash balance in its city or county road fund, including certain transportation bond act funds, for local street and road maintenance, provided that the cash is replaced once the payments from the Transportation Investment Fund are received. (10) Existing law appropriates $540,000,000 from the General Fund to the Board of Governors of the California Community Colleges for apportionments to community college districts for expenditure during the 2009–10 fiscal year and defers the disbursal of those funds until July of the 2009–10 fiscal year. Existing law makes an identical appropriation for expenditure during the 2010–11 fiscal year and defers the disbursal of those funds until July of the 2010–11 fiscal year. This bill would increase those appropriations and deferments to $655,000,000 with $57,500,000 of those appropriations and deferments representing the April apportionment and $57,500,000 representing the May apportionment. (11) Existing law defers to July the payment of $115,000,000 of the apportionments to community college districts for each of the months of January and February and $55,000,000 of the apportionments to community college districts for each of the months of March and April. This bill, in addition, would defer to July the payment of $57,500,000 of the apportionments to community college districts for each of the months of April and May. (12) This bill would declare that it is to take effect immediately as an urgency statute.

Bill Text

• Amended 06/25/09 - Amended Assembly Current pdf June 25, 2009
• Introduced 01/20/09 - Introduced pdf January 20, 2009
• SB74 View text html

Action History

1. January 19, 2010

   Stricken from Senate file.

2. June 30, 2009

   Senate refuses to concur in Assembly amendments. (Ayes 25. Noes 14. Page 1553.)

3. June 30, 2009

   Urgency clause refused adoption.

4. June 29, 2009

   (Ayes 23. Noes 13. Page 1525.)

5. June 29, 2009

   Reconsideration granted.

6. June 29, 2009

   Motion to reconsider made by Senator Ducheny.

7. June 29, 2009

   Senate Rule 43 suspended. (Ayes 23. Noes 13. Page 1524.)

8. June 29, 2009

   Senate refuses to concur in Assembly amendments. (Ayes 23. Noes 14. Page 1524.)

9. June 29, 2009

   Urgency clause refused adoption.

10. June 25, 2009

    (Ayes 34. Noes 0. Page 1468.)

11. June 25, 2009

    Reconsideration granted.

12. June 25, 2009

    Motion to reconsider made by Senator Ducheny.

13. June 25, 2009

    Senate refuses to concur in Assembly amendments. (Ayes 24. Noes 14. Page 1467.)

14. June 25, 2009

    Urgency clause refused adoption.

15. June 25, 2009

    In Senate.

16. June 25, 2009

    Read third time. Urgency clause adopted. Passed. (Ayes 73. Noes 2. Page 2253.) To Senate.

17. June 25, 2009

    Read third time. Amended. (Page 2253.)

18. June 15, 2009

    Read second time. To third reading.

19. June 11, 2009

    Placed on second reading file.

20. April 16, 2009

    In Assembly. Read first time. Held at Desk.

21. April 16, 2009

    Read third time. Passed. (Ayes 22. Noes 14. Page 513.) To Assembly.

22. April 02, 2009

    Read second time. To third reading.

23. April 01, 2009

    Placed on second reading file.

24. April 01, 2009

    Withdrawn from committee.

25. January 29, 2009

    To Com. on RLS.

26. January 22, 2009

    Read first time.

27. January 21, 2009

    From print. May be acted upon on or after February 20.

28. January 20, 2009

    Introduced. To Com. on RLS. for assignment. To print.

Sponsors

• Committee on Budget and Fiscal Review · Primary

Votes

Subjects