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More Budget Trailer Bills Amended and Heard in Committee this Week

August 30, 2013
The Legislature amended multiple bills this week to clean up the 2013–14 Budget.
Bills that are marked with an asterisk (*) in the summaries below were quickly passed by the budget committees on Thursday and are expected to be heard next week on the Senate and Assembly floors. All bills will need to return to the house of origin for a concurrence vote.

*AB 101/*SB 95: Budget Bill Jr.
Includes the line item changes that are necessary to implement the trailer bills listed below as well as technical clean up amendments from the main budget bill (AB 110, Chapter 20, Statutes of 2013).
AB 102/*SB 96: Public Resources
Makes a variety of changes to environmental and resource programs, including:
  • Requires funds allocated to the Lower-Emission School Bus Program shall be prioritized to retrofit or replace the most polluting school buses in small air districts first and then to medium air districts as defined by the California Air Resources Board.
  • Requires the California Public Utilities Commission to develop and implement the Electric Program Investment Charge program to award funds for projects that will benefit electricity ratepayers and lead to technological advancement and breakthroughs to overcome the barriers that prevent the achievement of the state’s statutory energy goals.
  • Amends the Renewable Resource Trust Fund to provide funding for the New Solar Homes Partnership (NSHP). NSHP provides financial incentives to encourage the installation of eligible solar energy systems on new residential construction. It is focusing efforts on new residential buildings and seeks to achieve 400 megawatts of distributed solar photovoltaic electric capacity by the end of 2016.
  • Amends the Property Assessed Clean Energy Program (PACE) to allow the authority to develop and administer a PACE risk mitigation program for PACE loans to increase their acceptance in the marketplace and protect against the risk of default and foreclosure.
  • Requires the California Public Utilities Commission to conduct a zero-based budget for all of its programs by Jan. 10, 2015. The zero-based budget shall be completed for the entire Commission, rather than on a division-by-division basis.
  • Limits the California Public Utilities Commission’s ability to form a “non-state entity,” as defined, with moneys other than moneys that would otherwise belong to the public utility’s shareholders.
AB 102 failed to pass when taken up this week by the Senate Budget and Fiscal Review Committee.
AB 103/*SB 97: Education (Local Control Funding Formula)
Clean up language for the Local Control Funding Formula, including changes to grants to charter schools, Proposition 39 funding for schools, and former redevelopment funding for schools.
AB 104/*SB 98: Public Health
Technical corrections and clarifications to health and human services budget trailer bills. 
*AB 105/*SB 99: Active Transportation Program
Creates the Active Transportation Program by combining funding from the federal Transportation Alternative Program funding, $21 million of federal Highway Safety Improvement funding, and specified funds in the State Highway Account. This program will replace the federal Transportation Alternative Program, Bicycle Transportation Account, the Safe Routes to Schools Program, and the recreational trails program. The bill also includes placeholder language to allow ATP to receive funding from Cap-and-Trade revenues in the future.
The funding, which totals $129.5 million in 2013–14, will be divided between the state and the regions subject to guidelines that will be adopted by the California Transportation Commission. The bill requires that 25 percent of all program funds benefit disadvantage communities. Safe Routes to Schools are guaranteed at least $24 million, with at least $7.2 million of that going to non-infrastructure programs.  
The Environmental Enhancement and Mitigation Program will remain a standalone program, which is a change from the Governor’s January budget proposal. 
*SB 100: General Government
Contains changes and technical corrections to a variety of general government law, including census tracks, Executive Officer exemptions for a 501(c)(5), and income tax credits for purchases of qualified property in an enterprise zone prior to Jan. 1, 2014. Also specifies that the director of the Governor’s Office of Business and Economic Development will serve as the chair of the California Competes Tax Credit Committee and clarifies that a state legislator may not sit on the committee.
*AB 107/*SB 101: Health
Makes technical corrections to health-related budget trailer bills. Also appropriates private foundation and matching federal funding received for Medi-Cal application assisters and outreach grants for counties.
*SB 102: State Employees: Memoranda of Understanding
Contains required provisions to amend various Memoranda of Understanding with state employees to reflect recent agreements with the Governor.
*SB 105: Corrections
Contains the Governor’s prison plan, which would utilize community corrections facilities and out-of-state prisons. For more information, please see “Governor’s Prison Plan Supported by the League among Other Local Government and Public Safety Groups.”

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