California Budget Bill Unique Provisions – Part VIII

California’s state budget is the largest in the nation and also represents the largest bill in terms of page length and number of provisions. While its provisions are too numerous to cover, there are a number of them that are unique and readers should be aware of. This article is the eighth and last in the series.

So what are some of these unique provisions of the California budget law?

Gubernatorial veto

This section deals with what happens when the governor uses his line item veto power to reduce or eliminate appropriations. Below is an example of the language included in the state budget bill:

SEC. 33.00.

If the Governor, pursuant to Section 10 of Article IV of the California Constitution, in approving parts of this Act, vetoes, removes or reduces any item of appropriation in this act, such veto, removal or reduction shall not affect the other parts of the Act. this Act and such other parts of this Act, so approved, shall have the same effect in law as if no vetoed or deleted items had been present in this Act, and as if no reduced item had been reduced.

Severability Provision

This section is a standard severability clause to ensure that even if a court strikes down one or more parts of California’s budget law, the remaining parts will remain in full effect. Below is an example of the language included in the state budget bill:

SEC. 34.00.

If any part of this Act is held to be unconstitutional, that decision shall not affect the validity of any other part of this Act. The Legislature hereby declares that it would enact this Act and every part thereof notwithstanding that any other part should be declared unconstitutional.

Recovery of compensation

The purpose of this section (section 35.35) is to ensure that departments are required to make all reasonable efforts to promptly collect refunds or amounts due from other funds or departments or to collect amounts in advance. This section of the California Budget Act is intended to meet financial needs. It allows payments to be made between departments by transferring funds and allows short-term cash loans. Below is an example of the language included in the state budget bill:

(b) Notwithstanding any other law, if a department affected by the implementation of FI$Cal demonstrates to the Treasury Department that it is unable to collect refunds or amounts due from other funds or departments as provided in subsection (a), and if the department temporarily short of cash, the Chief Financial Officer may authorize a short-term cash loan from the General Fund or from other funds administered or used by the requesting department. The cash loan is subject to repayment terms that may be prescribed by the Ministry of Finance. Interest charges may be waived under subdivision e) of § 16314 of the Government Code. Within 10 days after approval, the Chief Financial Officer shall notify the Joint Legislative Appropriations Committee of loans approved under this subsection.

General returns of the fund

This section defines and provides for the General Fund and its revenues. Specifically, “General Fund Revenue” means the total resources available to the General Fund for a fiscal year before any transfer to or withdrawal from the Budget Stabilization Account. Additionally, this section. This section of the California budget bill also contains a number of important estimates. Below is an example of language in a recent state budget bill:

(b) For purposes of subsection (g) of section 12 of article IV of the California Constitution, the estimate of General Fund revenue for fiscal year 2022-2023 under this Act, as approved by the Legislature, is $246,703,000,000.

(c) For purposes of paragraph (2) of subsection (a) of section 20 of article XVI of the California Constitution, “general fund receipts” are defined as receipts and transfers before any transfer to or withdrawal from the budget stabilization account.

(d) Pursuant to subsection (h) of section 20 of article XVI of the California Constitution, the following estimates are provided:

(1) For the purposes of paragraph (2) of subsection (a) of section 20 of article XVI of the California Constitution, an amount equal to 1.5 percent of the General Fund revenue for fiscal year 2022-2023 is $3,239,000,000.

(2) For the purposes of clause (ii) of subparagraph (B) of paragraph (1) of subsection (b) of section 20 of article XVI of the California Constitution, the capital gain income that exceeds 8 percent of the General Fund tax revenues of the fiscal year 2022-23 is 5,854,000 000$.

(3) For purposes of subsection (F) of paragraph (1) of subsection (b) of section 20 of article XVI of the California Constitution, the amount of the transfer to the budget stabilization account in fiscal year 2022-2023 is $2,958,000,000.

(4) For purposes of clause (ii) of subparagraph (B) of paragraph (2) of subsection (b) of section 20 of article XVI of the California Constitution, the updated estimate of capital gains revenues that exceed 8 percent of the general fund tax revenue for fiscal year 2021-22 is $10,499,000,000.

(5) For purposes of subsection (G) of paragraph (2) of subsection (b) of section 20 of article XVI of the California Constitution, the first appropriation of the transfer to the budget stabilization account for fiscal year 2021-2022 is $2,240,000,000.

(6) For purposes of clause (ii) of subparagraph (B) of paragraph (2) of subsection (b) of section 20 of article XVI of the California Constitution, the updated capital gains income that exceeds 8 percent of the General Fund tax revenue for fiscal year 2020-21 is 8,683 $000,000.

(7) For purposes of subsection (G) of paragraph (2) of subsection (b) of section 20 of article XVI of the California Constitution, the second appropriation of the transfer to the budget stabilization account for fiscal year 2020-21 is $2,304,000,000.

Funds for the budget deficit savings account

This section establishes the amount per fiscal year to be transferred to the budget deficit and infrastructure savings account. Below is an example of language in a recent state budget bill:

SEC. 35.70.

Notwithstanding any other law, by June 30, 2023, 50 percent of all revenue from any fiscal year 2021–22 and 2022–23 from General Fund revenue above the revenue forecast under the 2022 Budget Act is not required to fund essential and number requirements of programs approved in 2022. budget package, extraordinary expenditures authorized by law and constitutional obligations, including but not limited to obligations under Proposition 98 and Proposition 2, will be transferred to the Budget Deficit and Infrastructure Savings Account.

Budget proposal and other budget-related bills

These sections state that California’s budget law is that set forth in the state constitution, along with a list of “other laws that provide appropriations related to the budget law.” This is necessary to comply with Proposition 25, which was passed by the voters, to allow for a majority vote in favor of the state budget bill and related bills. The draft law on the state budget contains the following:

SEC. 38.00.

This act is a budget bill within the meaning of subsection (e) of section 12 of article IV of the California Constitution and takes effect immediately.

SEC. 39.00.

The Legislature hereby finds and declares that the following bills are additional bills that provide items related to the budget proposal within the meaning of subsection (e) of section 12 of article IV of the California Constitution: AB 178, AB 180, AB 181, AB 182, AB 183 , AB 184, AB 185, AB 186, AB 187, AB 188, AB 189, AB 190, AB 191, AB 192, AB 193, AB 194, AB 1919, 88 AB 199, AB 200, AB 201, AB 202, SB 178, SB 180, SB 181, SB 182, SB 183, SB 184, SB 185, SB 186, SB 187, SB 189, SB 1819, SB 192, SB 193, SB 194, SB 195, SB 196, SB 197 , SB 198, SB 199, SB 200, SB 201 and SB 202.

Budget Name Index

Also included in the California budget law is the “Index by Budget Title” found in Section 99 of the State Budget Law. This section contains a list of all items and related provisions of the State Budget Act by organization in alphabetical order with the numerical code of the organization concerned.

The organization code is the first four digits of any item number in this act. “For ease of reference, the item items in this act are arranged in numerical order, and all item items for any organization are contiguous.”

Index of control sections

Also included in the California Budget Code is an “Index for Control Sections” found in Section 99.50 of the State Budget Code. This section contains an index of the general parts of the Act on the State Budget. And these sections “serve to define terms and identify limitations on the items contained therein [state budget] act.”

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