SB 106 — State Government.

Summary

(1) The Planning and Zoning Law requires a city or county to adopt a comprehensive, long-term general plan that contains specified mandatory elements, including a housing element. That law requires that the housing element include, among other things, an inventory of land suitable for residential development, as specified, and requires that the inventory be used to identify sites that can be developed for housing within the planning period and that are sufficient to provide for the jurisdiction's share of the regional housing need for all income levels. Until December 31, 2023, that law requires a county that is in the San Francisco-Oakland-Fremont California Metropolitan Statistical Area and that has a population of less than 400,000 to be considered suburban for purposes of determining the densities appropriate to accommodate housing for lower income households. That law requires these counties to utilize the sums existing in their housing trust funds as of June 30, 2013, for affordable housing, as specified. For that same purpose, existing law requires a city that has a population of less than 100,000 and is incorporated within that county to be considered suburban and requires a county or city so classified to make 2 reports, as specified, to the Legislature and the Department of Housing and Community Development. Until December 31, 2023, the Planning and Zoning Law also requires that housing density requirements in place on June 30, 2014, apply within ½ mile of a Sonoma-Marin Area Rail Transit station. This bill would extend the repeal date to December 31, 2028, thereby extending operation of these provisions until that date. The bill would also require a 3rd report, addressing the subsequent 4 years of the housing element cycle and the cycle as a whole and submitted on or before December 31, 2027, from a jurisdiction classified as suburban pursuant to these provisions. By imposing new duties on local officials with respect to application of certain density and report requirements beyond December 31, 2023, this bill would impose a state-mandated local program. (2) Under existing law governing the State Community Development Block Grant Program, the Department of Housing and Community Development is required to distribute federal funds in the form of grants to eligible cities and counties to provide housing and economic development, principally for persons and families of low or moderate income. Existing law declares the Legislature's intent regarding funds allocated to the state pursuant to the federal State Community Development Block Grant Program, which is administered in the state by the Department of Housing and Community Development. This bill would revise and recast the statement of intent to also reference the most efficient use of grant funds. (3) Existing law defines various terms for purposes of administering the federal State Community Development Block Grant Program. This bill would define the term "consolidated plan" for these purposes to mean a 5-year action plan that makes investment decisions based on assessed needs and market conditions. (4) Existing law requires that 30% of the annual allocation of federal State Community Development Block Grant funds be set aside for specified economic development projects and programs administered by the Department of Housing and Community Development, subject to specified criteria. This bill would instead require that 30% of that annual allocation, less department administrative funds, be set aside for these purposes. The bill would specify that if there are insufficient qualified applications for economic development project and program set aside, as determined by the department's review and following the adoption of guidelines, approval, and certain notification requirements, these funds shall be made available to make awards to other qualifying projects and programs submitted by the application deadline. The bill would require the department, on or before June 30, 2018, with consultation with stakeholders, to update a portion of its Grant Management Manual, as specified, and report subsequent amendments to its guidelines to the Department of Finance and Joint Legislative Budget Committee. The bill would additionally require the department, on or before January 1, 2018, to provide links on the department's Internet Web site to applicable federal regulations or guidelines, ensure that program staff are trained on applicable federal law, regulations, or guidelines, and prepare a schedule for the release of a Notice of Funding Availability, as specified. (5) Existing law requires no less than 51% of the funds made available to the department under the federal State Community Development Block Grant Program to be utilized by the department to make grants to eligible cities or counties for the purpose of providing or improving housing opportunities for persons and families of low or moderate income or for purposes directly related to the provision or improvement of housing opportunities for persons and families of low or moderate income, as specified. This bill would instead require at least 51% of the annual allocation of federal Small Cities Community Development Block Grant funds, less administrative funds of the department, to be utilized for those purposes. The bill would require any funds available due to insufficient qualified applications to be available for other projects and programs, as specified. (6) Existing law requires the department to determine, and announce in the applicable Notice of Funding Availability, the maximum grant request limitation for each applicant of which a maximum per year can be used for either general program or economic development applications. Existing law requires the department to inform cities and counties that are eligible for economic development and general program grants of the eligibility criteria and requirements. Existing law provides that applicants for all activities or set-asides, except as specified, are to be evaluated on a first-in, first-served basis. Existing law authorizes a jurisdiction to submit multiyear proposals for a period not to exceed 3 years in duration. This bill would delete these provisions. Existing law requires the department to develop project standards and rating factors that meet specified minimum requirements of federal statutes for all program applications, including economic development assistance grants. This bill would instead apply this provision to all program applications. (7) Existing law requires the department to make every effort to assist communities unable to demonstrate compliance with federal regulations to come into compliance, including providing communities training in revolving loan fund administration through outside contractors. This bill would delete the above provision on providing communities training in revolving loan fund administration. (8) Existing law requires the department to determine and announce, in the applicable Notice of Funding Availability, the maximum amount of grant funds that may be used by eligible small cities and counties for economic development projects and programs and the assessment of housing needs. Existing law requires the department to develop and use certain eligibility criteria and requirements for certain economic development fund applications. Existing law prohibits each applicant from receiving more than 2 grants per year, as specified. This bill would delete the prohibition against receiving more than 2 grants per year. (9) Existing law provides that the guidelines for the distribution of supplemental allocations and federally mandated set-aside funds are not subject to specified statutory provisions and regulations. This bill would authorize the department to adopt guidelines to implement the federal State Community Development Block Grant Program and would provide that any guideline, rule, policy, or standard of general application employed by the department in implementing that program is not subject to the rulemaking requirements of the Administrative Procedure Act, as specified. The bill would provide that the distribution of supplemental or federally mandated set-aside funds is not subject to subsequent guidelines adopted by the department, as specified. (10) Existing law requires the department to set aside a specified amount of program funds for economic development. Any economic development set-aside of funds not encumbered for funding a project by the end of the federal contract period reverts to the general program and set-aside for use for other specified projects. Existing law also requires the department to prepare a separate and discrete training manual and request for proposal for the economic set-aside, as specified. This bill would delete these provisions. The bill would instead require the department to ensure potential applicants have access to instructions that allow them to successfully qualify for the economic development set aside. (11) Existing law, until January 1, 2021, establishes the Supervised Population Workforce Training Grant Program to be administered, as provided, by the California Workforce Development Board. Existing law establishes grant program eligibility criteria for counties and provides that eligible uses for grant funds include, but are not limited to, vocational training, stipends for trainees, and apprenticeship opportunities for the supervised population, which include individuals on probation, mandatory supervision, and postrelease community supervision. Existing law requires the board to develop criteria for the selection of grant recipients and requires the board to ensure that grants are awarded on a competitive basis. Existing law requires the board, by January 1, 2018, to submit a report to the Legislature containing specified information, including an evaluation of the effectiveness of the grant program. This bill would expand the scope of the supervised population served by the program to include persons who are on parole and persons who are supervised by, or under the jurisdiction of, the Department of Corrections and Rehabilitation. The bill would also require the board to be responsible for setting the policy of the grant program and to design the grant program application process to ensure, among other things, that grants are allocated equitably among the grant partners based on services and activities provided in support of the success of participants and that nonprofit community-based organizations are competitive in applying for funds as the lead applicant. The bill would require each application for a grant to include a list of proposed partners and a partnership agreement outlining the actions each party agrees to undertake as part of the project proposed in the application. The bill would also require that an application provide, as appropriate, for a partnership with a lead community-based organization with a track record of success in effectively serving the supervised population. The bill would make other changes to the application process and criteria for the award of grants, including identifying additional applicants who are to be awarded preference. The bill would revise the reporting requirements for evaluating the effectiveness of the grant program, as provided. (12) The Personal Income Tax Law allows various credits against the taxes imposed by that law, including certain credits that are allowed in modified conformity to credits allowed by federal income tax laws. Federal income tax laws allow a refundable earned income tax credit for certain low-income individuals who have earned income from wages, salaries, tips, and other employee compensation plus net earnings from self-employment and who meet certain other requirements. The Personal Income Tax Law, for taxable years beginning on or after January 1, 2015, in modified conformity with federal income tax laws, allows an earned income credit against personal income tax, which is only for earned income from wages, salaries, tips, and other employee compensation, and a payment from the Tax Relief and Refund Account for an allowable credit in excess of tax liability, to an eligible individual that is equal to that portion of the earned income tax credit allowed by federal law as determined by the earned income tax credit adjustment factor, as specified. The Personal Income Tax Law provides that the amount of the credit is calculated as a percentage of the eligible individual's earned income and is phased out above a specified amount as income increases. This bill, for taxable years beginning on or after January 1, 2017, would expand the earned income credit allowed by the Personal Income Tax Law by providing additional conformity with federal income tax law to include net earnings from self-employment in earned income and would revise the calculation factors to expand the credit amount, which would be adjusted annually. Existing law establishes the continuously appropriated Tax Relief and Refund Account and provides that payments required to be made to taxpayers or other persons from the Personal Income Tax Fund are to be paid from that account, including any amount allowable as an earned income credit in excess of any tax liabilities. By authorizing new payments from that account for additional amounts in excess of personal income tax liabilities, this bill would make an appropriation. (13) This bill would make legislative findings and declarations as to the necessity of a special statute for the San Francisco-Oakland-Fremont California Metropolitan Statistical Area and the Counties of Marin and Sonoma. (14) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. (15) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

Bill Text

• Chaptered 07/21/17 - Chaptered Current pdf July 21, 2017
• Enrolled 07/07/17 - Enrolled pdf July 07, 2017
• Amended 06/15/17 - Amended Assembly pdf June 15, 2017
• Amended 06/13/17 - Amended Assembly pdf June 13, 2017
• Introduced 01/11/17 - Introduced pdf January 11, 2017
• SB106 View text html

Action History

1. July 21, 2017

   Chaptered by Secretary of State. Chapter 96, Statutes of 2017.

2. July 21, 2017

   Approved by the Governor.

3. July 12, 2017

   Enrolled and presented to the Governor at 12 p.m.

4. July 06, 2017

   Assembly amendments concurred in. (Ayes 27. Noes 9. Page 1894.) Ordered to engrossing and enrolling.

5. June 22, 2017

   In Senate. Concurrence in Assembly amendments pending.

6. June 22, 2017

   Read third time. Passed. (Ayes 56. Noes 13. Page 2308.) Ordered to the Senate.

7. June 20, 2017

   Read second time. Ordered to third reading.

8. June 19, 2017

   Ordered to second reading.

9. June 19, 2017

   Withdrawn from committee.

10. June 19, 2017

    Assembly Rule 96 suspended. (Ayes 46. Noes 19. Page 2250.)

11. June 15, 2017

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.

12. June 13, 2017

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.

13. June 05, 2017

    Referred to Com. on BUDGET.

14. May 11, 2017

    In Assembly. Read first time. Held at Desk.

15. May 11, 2017

    Read third time. Passed. (Ayes 26. Noes 9. Page 1037.) Ordered to the Assembly.

16. May 09, 2017

    Read second time. Ordered to third reading.

17. May 08, 2017

    Ordered to second reading.

18. May 08, 2017

    Withdrawn from committee. (Ayes 26. Noes 11. Page 982.)

19. January 19, 2017

    Referred to Com. on B. & F.R.

20. January 12, 2017

    From printer. May be acted upon on or after February 11.

21. January 11, 2017

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

• Committee on Budget and Fiscal Review · Primary

Votes

Subjects