Bill Text: CA AB1506 | 2009-2010 | Regular Session | Amended

California Assembly Bill 1506 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: State funds: registered warrants.

Spectrum: Bipartisan Bill

Status: (Vetoed) 2010-09-30 - Vetoed by Governor. [AB1506 Detail]

Download: California-2009-AB1506-Amended.html

BILL NUMBER: AB 1506	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 10, 2010
	AMENDED IN SENATE  MARCH 17, 2010
	AMENDED IN ASSEMBLY  AUGUST 31, 2009
	AMENDED IN ASSEMBLY  JULY 1, 2009
	AMENDED IN ASSEMBLY  JUNE 29, 2009
	AMENDED IN ASSEMBLY  MAY 14, 2009

INTRODUCED BY   Assembly Member Anderson
   (Coauthors: Assembly Members Adams, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield, Brownley,
Buchanan, Caballero, Charles Calderon, Carter, Conway, Cook, Coto,
Davis, DeVore, Duvall, Emmerson, Eng, Fletcher, Fong, Fuller, Gaines,
Galgiani, Garrick, Gilmore, Hagman, Hall, Harkey, Hernandez, Hill,
Huber, Jeffries, Jones, Knight, Lieu, Logue, Bonnie Lowenthal,
Mendoza, Miller, Nava, Nestande, Niello, Nielsen, John A. Perez, V.
Manuel Perez, Portantino, Ruskin, Saldana, Silva, Skinner, Smyth,
Solorio, Audra Strickland, Swanson, Torlakson, Torres, Torrico, Tran,
Villines, and Yamada)
   (Coauthors: Senators Aanestad, Ashburn, Cox, Denham,
Hollingsworth, Strickland, and Wyland)

                        FEBRUARY 27, 2009

   An act to add and repeal Section 17203.6 of the Government Code,
relating to state funds, and declaring the urgency thereof, to take
effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1506, as amended, Anderson. State funds: registered warrants.
   Existing law prescribes procedures for the issuance of registered
warrants and provides that a registered warrant is acceptable and may
be used as security for the performance of any public or private
trust or obligation.
   This bill would, if the Controller makes a specified
determination, require a state agency to accept, from a person or
entity, a registered warrant  or other similar evidence of
indebtedness  issued by the Controller  and 
endorsed by that payee, at full face value, for the payment of any
obligations owed by that payee to that state agency.
   The bill would specify that its requirements do not apply to
certain obligations and would require the Controller, on or before
the September 1 following the conclusion of a fiscal year in which a
state agency is required to accept registered warrants  or
similar evidence of indebtedness  pursuant to  the
bill's requirements   these provisions  , to submit
a report to the Joint Legislative Budget Committee.
   The bill would make its provisions inoperative on July 1, 2012,
and would repeal them on January 1, 2013.
   This bill would declare that it is to take effect immediately as
an urgency statute.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 17203.6 is added to the Government Code, to
read:
   17203.6.  (a) Except as provided in subdivision (c), upon the
Controller making the determination specified in subdivision (b), a
state agency shall accept from a person or entity a registered
warrant  or other similar evidence of indebtedness 
issued by the Controller that is endorsed by that payee, at full face
value, for the payment of any obligations owed by that payee to that
state agency.
   (b) The requirements of subdivision (a) shall become operative
only if the Controller determines that all of the following
conditions are satisfied:
   (1) The acceptance of registered warrants will not jeopardize the
ability of the state to issue regular warrants for education
programs, debt service, state payroll, pensions, In-Home Supportive
Services, Medi-Cal providers, or any other payment required by
federal law, the California Constitution, or a court order.
   (2) The acceptance of registered warrants will not result in a net
cost to the state. For purposes of this paragraph, the calculation
of "net cost" includes, but is not limited to, all of the following
factors:
   (A) Interest savings related to redemption of the registered
warrant  or other form of indebtedness  .
   (B) Interest costs related to any new registered warrants 
or other forms of indebtedness  issued to replace the
registered warrant  or other form of indebtedness 
accepted for payment of an obligation to the state.
   (C) Costs related to any other internal or external borrowing
required to offset the loss of resources due to acceptance of the
registered warrants  or other forms of indebtedness 
for payment of an obligation to the state.
   (D) Foregone interest earnings related to loss of payments due to
acceptance of the registered warrants  or other forms of
indebtedness  for payment of an obligation to the state.
   (E) Significant new administrative costs to state agencies related
to acceptance of registered warrants  or other forms of
indebtedness  for payment of an obligation to the state.
   (c) Subdivision (a) shall not apply to an obligation owed by a
payee for payments subject to the immediate deposit standard
contained in Section 3304(a)(3) of the Federal Unemployment Tax Act
(26 U.S.C. Sec. 3304(a)(3)) or Section 303(a)(4) of the Social
Security Act (42 U.S.C. Sec. 303(a)(4)).
   (d) On or before the September 1 following the conclusion of a
fiscal year in which a state agency is required to accept registered
warrants  or similar evidence of indebtedness 
pursuant to subdivision (a), the Controller shall submit a report to
the Joint Legislative Budget Committee that contains all of the
following information:
   (1) The amount of warrants received  or other forms of
indebtedness received  by state agencies.
   (2) The effect of the acceptance of these warrants on the state's
cashflow and financial  well being   well-being
 , including any net costs or savings, based on factors
specified in subparagraphs (A) to (E), inclusive, of paragraph (2) of
subdivision (b), and any impacts on state payments required by
federal law, the California Constitution, or a court order.
   (e) This section shall become inoperative on July 1, 2012, and, as
of January 1, 2013, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2013, deletes or
extends the dates on which it becomes inoperative and is repealed.
  SEC. 2.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   In order to allow the residents of the state to pay for all
obligations owed to the state, while the state is issuing registered
 warrants, or other similar debt instruments, which are, in
fact, "IOUs" issued by the state, it is necessary that this act take
effect   warrants, it is necessary that this act 
 take effect  immediately.