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HomeMy WebLinkAboutMINUTES - 03021999 - C37 6.37 TO: BOARD OF SUPERVISORS Contra PHIL BATCHELOR, COUNTY ADMINISTRATORCosta County DATE., February 2$, 1999 SUBJECT: LEGISLATION. AE 551 (LONGVILLE) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)S BACKGROUND AND JUSTIFICATION RECOMMENDATION: ADOPT a position in SUPPORT of AB 551 by Assemblyman John Longville of San Bernardino County which would require the State to pay interest to local agencies on funds in the Fooled Money Investment Account which is derived from funds in the account during a period of time that, except for a delay in enactment of the State Budget, would have been transferred to those local agencies. BACKGROUND: The Board of Supervisors has no specific provision in its 1999 Legislative Program addressing the problem which occurs when, because of a delay in the enactment of a State Budget, local agencies must continue to pay bills and, in effect, advance money to the State. However, this has been a real issue in past years and the Board has expressed its frustration that it must, in effect, loan money to the State by continuing to provide services when reimbursement for those services is delayed by the delay in enacting a State Budget. Assemblyman Longville has introduced AB 551 which, as introduced, would require that any money in the Pooled Money Investment Account which is there solely because of a delay in the enactment of a State Budget and, absent that delay,would have been released to local agencies, to pay the interest the account gains because of that delay to local agencies. CONTINUED ON ATTACHMENT: YES SIGNATURE: — RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SICvNATURE S: -4999 �+ ACTION OF BOARD ON H APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT— m ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. ATTESTED, March 2 s 1999 Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF cc: SUPERVISORS AND COUNTY ADUIN!STRATOR s B DEPUTY Since AB 551 appears to address a problem which affects the County negatively on a fairly regular basis, it is recommended that the Board amend its 1999 Legislative Program to add this issue and to indicate its support of AB 551. cc: County Administrator Auditor-Controller Tony Enea, Senior [deputy County Administrator Assemblyman John Longville Room 3129 State Capitol Sacramento, CA 95814 Les Spahnn Heim, Noack, Kelly & Spahnn 1121 L Street, Suite 190 Sacramento, CA 95814 -2- CALIFORNIA LEGISLATURE-1999-2000 REGULAR SESSION ASSEMBLY BILL No. 551 Introduced by Assembly Member Longville (Principal coauthor. Assembly Member Steinberg) February 18, 1999 An act to add Section 16481.3 to the Government Code, relating to state funds, and malting an appropriation therefor. LEGISLATIVE COUNSEVS DIGEST AB 551, as introduced, Longville. State funds, interest. Existing law provides for the investment of money in the State Treasury, generally, by the Pooled :Money Investment Board, in the fooled Money Investment Account. Interest earned and increments derived from these investments are distributed to the Surplus Money Investment Fund and the General Fund. This bill would appropriate to local governmental agencies any interest earned or increment derived from funds in the account during a period of time that, except for a delay in enactment of the state budget, would have been transferred to those local govemmental agencies. Vote: 2I3. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no. The people of the State of California do enact as follows: 1 SECTION 1. Section 16481.3 is added to the 2 Government Code, to read: 99 AB 551 —2- 1 16481.3. Notwithstanding any other provision in this 2 article to the contrary, any interest earned or increment 3 derived from funds deposited in the Pooled Money 4 Investment Account during a period of time that, except 5 for a delay in enactment of the state budget, would have 6 been transferred to an agency of local government, as 7 defined in subdivision {d} of Section 8 of Article XIII B of 8 the California Constitution, is hereby appropriated to the 9 Controller for allocation to those local agencies, on a pro 10 rata basis. C 99