Legislative Update — July 9, 1998

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In a related action, the Assembly and Senate both approved a 1 year ¼¢ reduction in the State sales tax. The Governor in his usual imperious way vetoed the bill before the ink was dry. This action is part of a presumed necessary ritual to final agreement on the ultimate tax package.

On the bond front, a new stirring took place late Wednesday, when Assembly Speaker Villaraigosa offered a set of amendments to SB 50 (O'Connell) that were actually amended into the bill. Several previous sets of amendments proposed for that bill were never actually amended into it. None of this Assembly activity on SB 50 should be construed to reflect Senator O'Connell's views on a school bond. He is unfortunate or fortunate enough to have a relatively germane bill on the Assembly 3^rd reading file, which makes it an easy target for the current series of Assembly histrionics.

This form of SB 50 has a lot to like for those who would like to see a bond placed on the November 1998 ballot which is unencumbered by the contentious issues of developer fees, program reform and local bond approval levels that have accompanied previous proposals. The bill provides a $4.5 billion bond of which $1.25 billion would be for higher education during the 1998-2000 period. The odds of this bill leaving the Assembly Floor are long, but it also is part of a perceived necessary step to bring the issue to conclusion. It is also aimed at beating the July 13^th deadline for making the regular November 1998 ballot. Most observers believe that the August 27^th deadline for a supplemental November ballot is the real deadline. Current plans are that SB 50 will be considered on the Assembly Floor some time tomorrow.

PREBID QUALIFICATION BILL CANDIDATE FOR 28.8 — AB 1921 (Scott) the bill to authorize prebid qualification for community college construction projects is scheduled for a hearing in the Senate Appropriations Committee on Monday, July 13^th. CCFC has been dogging the Senate Appropriations Committee staff to clear the bill from the Committee under Senate Rule 28.8. This rule allows bills to be sent to the Senate Floor without a hearing if the bill has minimal cost and makes no appropriation. AB 1921 clearly meets the parameters of this rule, but the rule is employed at the discretion of the committee chair. Even if a hearing is required, there appears to be no opposition to the current form of the bill.