CA Legislative Explainer: Suspense File Process

CA Legislative Explainer: Suspense File Process By Chris Micheli

The two Appropriations Committees in the California Legislature have a unique procedure they each use called the “Suspense File.” Basically, any bill which has been keyed “fiscal” by the Office of Legislative Counsel is re-referred to the fiscal committee in each house, which is called the Appropriations Committee, unless that measure is placed on consent or the amount of the bill’s fiscal impact is below a certain threshold established by the respective committees. 

Under the rules of both houses of the Legislature (the Assembly and Senate), the Committees on Appropriations may maintain a suspense file, to which bills may be referred by a vote of a majority of the members of the committee that are present and voting, pending further consideration by the committee.

A bill may be taken off the suspense file and heard upon two days’ notice published in the Assembly or Senate Daily File by a vote of a majority of the members of the committee present and voting.

 

The "Suspense File" that is used by the Appropriations Committees in the Senate and Assembly is done as a means of managing their bill loads, easily numbering in the hundreds. While the intent behind the Suspense File makes sense in concept, which is to consider all of the fiscal-related bills at a single time, the practical implications of determining which bills stay or leave the Suspense File are often mysterious.

 

The stated intent of the Suspense File is to consider all of the bills with a fiscal impact above a certain threshold at the same time (i.e., vote on all of the fiscal bills once all of them have been heard and are before the committee members on a single day). In this way, the fiscal committee can make decisions on all of the bills that have a fiscal impact at one time, rather than each week when they meet during the course of the Legislative Session.

In the Assembly Appropriations Committee, the bills referred to the Suspense File are those with a fiscal impact of $150,000 or more from any fund source in any fiscal year and any bill in which the primary purpose is to create a task force, commission, work group, a report, or a study. All of these categories meet the criteria for referral to the committee’s Suspense File.

In the Senate Appropriations Committee, the bills referred to the Suspense File are those bills that would have a fiscal impact in any single fiscal year from the General Fund (including general obligation bond funds) or from private funds of $50,000 or more. Also referred to the Suspense File are pilot project bills if the statewide implementation of the project or program would result in a fiscal impact of $50,000 or more in any single fiscal year from the General Fund or private funds. In addition, all bills are sent to the Suspense File that would have a fiscal impact in any single fiscal year of $150,000 or more from any special account or fund or bills that would have a fiscal impact in any single fiscal year of $50,000 or more from any special account or fund where a two-thirds vote may be required to increase revenue to such account or fund.

One exception to this rule (i.e., the bill is not sent to the Suspense File) is for a deficiency or supplemental appropriations bill authored by the chair of the Senate or the Assembly Budget Committee, as well as claims or judgments and settlements bills authored by the chair of the Senate or the Assembly Appropriations Committee.

For purposes of the rules applicable to the Assembly and Senate Appropriations Committees, “fiscal impact” is generally defined to include cost increases, cost pressures, revenue decreases, increases in appropriations subject to limitation that are restricted in their use and result from increases in tax proceeds, and reductions in the State’s appropriations limit.

In both the Assembly and Senate Appropriations Committees, the bill authors do not testify at the Suspense File hearing. Instead, the committee members simply vote on the measures before them without any additional testimony. In fact, in most instances, bills that have been placed on the Suspense File do not have any testimony presented on the bill.

 

The Assembly Appropriations Committee dispenses with all bills at the Suspense File hearing and the bills are passed, passed as amended, or held. The bills held on Suspense are considered dead. On the other hand, the Senate Appropriations Committee only announces bills for which there will be a vote. No action is taken on bills that are held on Suspense.

 

During the first year of the 2-year Session, both Appropriations Committees utilize a fourth category of action: they distinguish between those bills that are simply held on Suspense (which are dead for the year) and those bills that are held on Suspense as 2-year bills, which will be considered again the following January prior to the house of origin deadline on January 31 of the second year.

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