LEGISLATIVE COUNSEL'S DIGEST


SB 74, as amended, Committee on Budget and Fiscal Review.
Budget Act of 2009. State finances.
(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 2/3 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 XIX B 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.
This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2009.

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Comments/questions on SB 74 (Committee on Budget and Fiscal Review): State finances.