Existing law establishes the Office of Planning and Research in the Governors office for the purpose of serving the Governor and the Governors cabinet as staff for long-range planning and research and constituting the comprehensive state planning agency.

This bill would require the Office of Planning and Research, in consultation with the League of California Cities, the California State Association of Counties, and the California Special Districts Association, to convene a statewide, cross-agency Local Assistance and Grant Program Streamlining Workgroup, no later than January 1, 2025, to centralize local assistance and develop a coordinated system to manage available state and federal funding to deliver the maximum number of projects as efficiently as possible. The bill would require the Office of Planning and Research to appoint the workgroup members, as specified. The bill would require the workgroup to develop a report that includes the workgroups findings, plans, and recommendations for short-term, medium-term, and long-term goals, as specified, no later than June 30, 2026. The bill would require the report to be posted on the Office of Planning and Researchs internet website and require the workgroup to provide the report to the Department of Finance and relevant policy and fiscal committees of the Legislature. Subject to appropriation by the Legislature, the bill would require the Office of Planning and Research and any other relevant state entities to implement the workgroups recommendations pursuant to the specified deadlines. The bill would prohibit the implementation of the recommendations without an appropriation by the Legislature.

Existing law establishes the Office of Planning and Research in the Governors office for the purpose of serving the Governor and the Governors cabinet as staff for long-range planning and research and constituting the comprehensive state planning agency.

This bill would require the Office of Planning and Research, in consultation with the League of California Cities, to convene a statewide, cross-agency Local Assistance and Grant Program Streamlining Workgroup, no later than April 30, 2024, January 1, 2025, to centralize local assistance and develop a coordinated system to manage available state and federal funding to deliver the maximum number of projects as efficiently as possible. The bill would require the Office of Planning and Research to appoint the workgroup members, as specified. The bill would require the workgroup to develop a report that includes the workgroups findings, plans, and recommendations for short-term, medium-term, and long-term goals, as specified, no later than January 31, 2025. June 30, 2026. The bill would require the report to be posted on the Office of Planning and Researchs internet website and require the workgroup to provide the report to the Department of Finance and relevant policy and fiscal committees of the Legislature. Subject to appropriation by the Legislature, the bill would require the Office of Planning and Research and any other relevant state entities to implement the workgroups recommendations pursuant to the specified deadlines.

Existing law requires the sheriff and superior court, in counties in which the sheriffs department provides superior court security services, to enter into an annual or multiyear memorandum of understanding for court security services. Existing law requires the sheriff and superior court to meet and confer if necessary to negotiate the terms of a memorandum of understanding pursuant to a specified timeline. Existing law requires the terms of a memorandum of understanding to remain in effect and the sheriff to continue to provide court security until the parties enter into a new memorandum of understanding, as specified.

This bill would make technical, nonsubstantive changes to those provisions.

SENATE COMMITTEE ON

Senator Anthony Portantino, Chair

2023 - 2024 Regular Session

AB 972 (Maienschein) - Local Assistance and Grant Program Streamlining Workgroup

Bill Summary:

AB 972 would require the Governor’s Office of Planning and Research (OPR) to convene a specified statewide, cross-agency Local Assistance and Grant Program Streamlining Workgroup (Workgroup) by January 1, 2025 to centralize local assistance and develop a coordinated system to manage available state and federal funding, as specified. The workgroup must submit a report of findings, plans, and recommendations to the Legislature and Department of Finance (DOF) by June 30, 2026.

Fiscal Impact:

• OPR estimates costs of approximately $534,000 annually for 2.5 PY of staff to organize and manage the Workgroup, conduct research and analysis, facilitate the development of the Workgroup’s findings, plans, and recommendations, and compile and submit the report to DOF and the Legislature. Staff assumes the costs would be incurred by OPR through the 2025-26 fiscal year. (General Fund)
  
• Unknown, likely minor costs for staff at the California Environmental Protection Agency (CalEPA), the Natural Resources Agency (CNRA), DOF, and the Department of Technology (CDT)) to participate in the Workgroup. (General Fund, various special funds)
  
• Unknown significant General Fund cost pressures, likely in the millions annually, to provide funding to implement the recommendations for short-, medium-, and long-term solutions according to the schedule identified in the Workgroup’s report, including the creation of an integrated, statewide, centralized program for assistance and training for local governments, and associated IT solutions. (General Fund)

Background:

Existing law requires the State Clearinghouse, which is located within OPR, to serve as the “State Single Point of Contact” for coordinating state and local review of certain federal community development-related documents, pursuant to Presidential Executive Order 12372. In this capacity, the State Clearinghouse coordinates the review of federal financial assistance applications, federally-required state plans, direct federal development activities, and federal environmental documents. OPR is required to coordinate the development of policies and criteria to ensure that federal grants administered or expended by the state advance statewide environmental goals and objectives.

Existing law, as enacted by AB 1348 (Irwin), Chap. 444/2016, establishes the position of federal grant administrator within the State Clearinghouse to serve as the state’s primary point of contact for information on federal grants. Among other things, the federal grant administrator is authorized to work with state and local government officials, nonprofits, foundations, higher education institutions, and other interested parties on applying for and managing federal grants, and to provide training to encourage and improve the ability to pursue and manage federal grants.

Existing law, as enacted by AB 2252 (Limón), Chap. 318/2018, requires the California State Library (CSL) to create a centralized location where entities seeking state grants could find information on all state-related grant programs. The law requires the CSL to create an interactive website identifying every grant administered by the state, and requires state agencies to register every grant they administer with the CSL before opening a solicitation or award process for distribution of the grant.

Proposed Law:

AB 972 would require OPR to convene a statewide, cross-agency Workgroup to develop plans for centralizing local assistance, and report recommendations to the Legislature and DOF. Specifically, this bill would:

• Require OPR, in consultation with the League of California Cities (League), the California State Association of Counties (CSAC), and the California Special Districts Association (CSDA), to convene a statewide, cross-agency Workgroup by January 1, 2025 to centralize local assistance and develop a coordinated system to manage available state and federal funding, as specified.
• Require the Workgroup to prioritize the unique needs of under-resourced and disadvantaged communities and consider ways to achieve more equitable distribution of funds.
• Require OPR to chair the Workgroup and appoint Workgroup members, including representatives from CalEPA, CNRA, DOF, CDT, the League, CSAC, CSDA, and 14 city and county members of various sizes and characteristics, as specified.
• Require the Workgroup to consider, but not be limited to, developing plans and recommendations that accomplish any of the following:
  • Creation, coordination, and implementation of an integrated, statewide, centralized program for assistance and training to local governments in grant application development, project management, implementation, and monitoring.
  • Identify substantially similar state climate resiliency and other environmental or natural resources programs to enable the state to implement a single application, with aligned scoring criteria and deadlines, for making coordinated awards under all programs, pursuant to the specified timelines.
  • Identify information technology solutions to improve processes, support uniform applications, and manage data.
• Require the Workgroup to develop a report that includes its findings, plans, and recommendations by June 30, 2026 that includes short-, medium-, and long-term solutions that can be accomplished by January 31, 2027, July 1, 2027, and July 1, 2028, respectively.
• Require the Workgroup to submit the report to the Legislature and DOF, and post it on OPR’s website.
• Disband the Workgroup as of June 30, 2026.
• Prohibit the implementation of the Workgroup’s recommendations, as specified in the report, without an appropriation by the Legislature.
  

Related Legislation:

AB 1348 (Irwin), Chap. 444/2016, established the position of federal grant administrator within the State Clearinghouse at OPR to serve as the state’s primary point of contact for information on federal grants. The bill also required the federal grant administrator to prepare an annual summary that includes specified information regarding federal grant funding.

-- END --

SENATE COMMITTEE ON GOVERNANCE AND FINANCE

Senator Anna M. Caballero, Chair

2023 - 2024 Regular

Local Assistance and Grant Program Streamlining Workgroup

Requires the Governor’s Office of Planning and Research to convene a statewide, cross-agency Local Assistance and Grant Program Streamlining Workgroup.

Background

The Governor’s Office of Planning and Research (OPR) is the state’s chief planning agency and advises local governments on their planning responsibilities. It serves as a resource for land use planning and provides guidance on the California Environmental Quality Act. In recent years, it has begun working on climate risks and high-road economic development issues.

As a result of AB 2252 (Limón, 2018), the California State Library (CSL) created a centralized location where entities seeking state grants could find information on all state-related grant programs. The law required the CSL to create an interactive website identifying every grant administered by the state – and required state agencies to register every grant they administer with the CSL before opening a solicitation or award process for distribution of the grant.

According to a report issued by the CSL in 2022, it collaborated with more than 50 state agencies, departments, commissions, and bureaus that award grants or loans on a competitive or first-come, first-served basis. Fifty-nine state agencies posted available grants on the website and beginning later this year, post-award data will be available to show where grants have been distributed throughout California.

Another coordinated grant program effort was created in 2020 by AB 434 (Daly). This measure aligned six rental housing programs with the Multifamily Housing Program (MHP), to allow the state Department of Housing and Community Development (HCD) to implement a single application and scoring system for making coordinated awards under all seven programs.

The author hopes to use the work group created by this bill to develop a similar coordinated approach to help local governments more easily apply for environmental and natural resources-related grant programs, as well as create a more centralized system for providing technical assistance to local governments.

Proposed Law

Assembly Bill 972 requires OPR, in consultation with the League of California Cities, to convene a workgroup by January 1, 2025, to centralize local assistance and develop a coordinated system to manage available state and federal funding. The workgroup must:

• Prioritize the unique needs of under-resourced and disadvantaged communities.
• Consider approaches to achieve a more equitable distribution of funding.
• Be appointed by OPR and serve without compensation.
• Meet as often as is necessary to develop robust, informed plans and recommendations.
• Include, but not be limited to, the following members:
  • OPR, which will chair the workgroup
  • The California Environmental Protection Agency (CalEPA)
  • The Natural Resources Agency
  • The Department of Finance (DOF)
  • The Department of Technology
  • A city with a population of fewer than 50,000
  • A city with a population between 50,000 and 149,999
  • A city with a population between 150,000 and 249,999
  • A city with a population of more than 250,000
  • A rural city
  • A suburban city
  • An urban city
  • The League of California Cities
• Disband as of June 30, 2026.

The workgroup members may include, but not be limited to, other partners or representatives of entities involved in grant application development, project management, implementation, and monitoring.

The workgroup must, at a minimum, consider developing plans and recommendations that accomplish any of the following:

• Creating, coordinating, and implementing an integrated, statewide, centralized program for assistance and training to local governments in grant application development, project management, implementation, and monitoring.
• Identifying substantially similar state climate resiliency and other environmental or natural resources programs to enable the state to create a single application, with aligned scoring criteria and deadlines, for making coordinated awards under all programs.
• Identify information technology solutions to improve processes, support uniform applications, and manage data.

The workgroup must develop a report that includes the workgroup’s findings, plans, and recommendations by June 30, 2026 that includes:

• Short-term solutions that can be accomplished by January 31, 2027.
• Medium-term solutions that can be accomplished by July 1, 2027.
• Long-term solutions that can be accomplished by July 1, 2028

The workgroup must post its report on OPR’s internet website and provide it to DOF and relevant policy and fiscal committees of the Legislature. Subject to appropriation by the Legislature, OPR and any other relevant state entities are required to implement the workgroup’s recommendations pursuant to the deadlines noted above.

State Revenue Impact

No estimate.

Comments

1. Purpose of the bill. According to the author, “At the state level, local assistance efforts are largely conducted by individual grant programs, and, although centrally located via the California State Library’s Grants Portal, nearly all state grant programs have unique and widely varied procedures for application and scoring. Further, although best practices for local assistance have been developed and published by the Strategic Growth Council, local assistance efforts are not uniformly conducted across state departments, offices, boards, commissions, and agencies.

“Local municipalities often lack the resources, staff capacity, implementation experience, and technical expertise to apply for and secure competitive statewide targeted grant funding. Additionally, like other sectors, California cities are facing staffing shortages, a wave of early retirement, and other workforce stressors on existing municipal staff. Streamlined application processes and robust, uniform local assistance from the state is crucial for cities to effectively access state funding opportunities.”

2. Membership has its privileges. The measure creates a workgroup with a very detailed set of members from state agencies and city governments. While the bill does allow other members to be added, it does not guarantee seats for county or special district officials. More broadly, the Committee may wish to consider whether the workgroup should be expanded or whether the bill should simply direct OPR to establish a workgroup and give it free reign to appoint the membership.

To ensure counties and special districts are represented on the workgroup, the Committee may wish to add the following entities to the list ending on Page 3, Line 24, as well as make other necessary conforming changes to the document:

• A county with a population of fewer than 75,000,
• A county with a population between 75,000 and 249,999.
• A county with a population between 250,000 and 749,999.
• A county with a population of more than 750,000.
• A rural county.
• A suburban county.
• An urban county.
• The California State Association of Counties.
• The California Special Districts Association.

3. Automatic implementation without legislative review? The bill requires, subject to appropriation, OPR and other relevant state entities to implement all of the workgroup’s recommendations contained in the report delivered to the Legislature. The Committee may wish to consider if this is appropriate, given there isn’t a way to forecast what those recommendations may be. One way to clarify this and still tie any implementation of recommendations to a legislative appropriation would be to re-craft the language on Page 4, Lines 22-25 to read:

(h) The Office of Planning and Research and any other relevant state entities shall not implement the workgroup’s recommendations pursuant to the deadlines included in subdivision (f) absent an appropriation by the Legislature.

Assembly Actions

Assembly Local Government Committee: 8-0

Assembly Appropriations Committee: 11-0

Assembly Floor: 80-0

Support and Opposition

(6/23/23)

Support: League of California Cities (Sponsor)
City of Norwalk
City of San Marcos
City of Thousand Oaks

Opposition: None submitted.

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ASSEMBLY THIRD READING

ATR Bill Id:AB 972

Author:(Maienschein)

As Amended Ver:May 18, 2023

Majority vote

SUMMARY

Requires the Office of Planning and Research (OPR) to convene a statewide, cross-agency Local Assistance and Grant Program Streamlining Workgroup (workgroup).

Major Provisions

1. Requires OPR, in consultation with the League of California Cities, to convene the workgroup no later than January 1, 2025.
2. Provides that the purpose of the workgroup is to centralize local assistance and develop a coordinated system to manage available state and federal funding to deliver the maximum number of projects as efficiently as possible in order to confront the effects of fragmented, decentralized state funding opportunities and in recognition of the importance of state and local partnerships.
3. Requires the workgroup to prioritize the unique needs of underresourced and disadvantaged communities and to take into consideration achieving more equitable distribution of funding.
4. Requires workgroup members to be appointed by OPR and serve without compensation, and specifies the composition of the workgroup.
5. Disbands the workgroup as of June 30, 2026.
6. Provides that the workgroup shall consider, but is not limited to, developing plans and recommendations that accomplish any of the following:
   1. Creation, coordination, and implementation of an integrated, statewide, centralized program for assistance and training to local governments in grant application development, project management, implementation, and monitoring.
   2. Identify substantially similar state climate resiliency and other environmental or natural resources programs to enable the state to implement a single application, with aligned scoring criteria and deadlines, for making coordinated awards under all programs, pursuant to the timeline specified in 7), below.
   3. Identify information technology solutions to improve processes, support uniform applications, and manage data.
7. Requires the workgroup to develop a report that includes the workgroup's findings, plans, and recommendations no later than June 30, 2026. The report shall include all of the following:
   1. Short-term solutions that can be accomplished by January 31, 2027.
   2. Medium-term solutions that can be accomplished by July 1, 2027.
   3. Long-term solutions that can be accomplished by July 1, 2028
8. Requires the workgroup to post the report on OPR's internet website and provide the report to the Department of Finance (DOF) and relevant policy and fiscal committees of the Legislature.
9. Requires, subject to appropriation by the Legislature, OPR and any other relevant state entities to implement the workgroup's recommendations pursuant to the deadlines specified in 7), above.

COMMENTS

AB 2252 (Limón), Chapter 318, Statutes of 2018, enacted the Grant Information Act of 2018, and required the California State Library (Library) to create a funding opportunities Internet Web portal (Portal) that provides a centralized location for grant seekers to find state grant opportunities. The bill required the Portal to include an interactive website that includes, at minimum, information identifying every grant administered by the state and any incentive opportunities allocated by statute or in the annual budget that will provide local assistance funds.

The bill required the website to be accessible and provide helpful information to a diverse set of potential applicants and other entities that are working to support and benefit disadvantaged and low-income communities. It also required each state agency, on or before July 1, 2020, to register every grant the state agency administers with the Library before commencing a solicitation or award process for distribution of the grant.

Each state agency must provide information regarding each grant that assists the Library with cataloging the distribution of grants and provides potential applicants with understandable and consistent information about available funding opportunities. Each state agency must provide a link to the Library's Portal on their Internet Web sites, and must provide for the acceptance of electronic proposals for any grant administered by the agency.

AB 434 (Daly), Chapter 192, Statutes of 2020, aligned six rental housing programs with the Multifamily Housing Program, to enable the state Department of Housing and Community Development to implement a single application and scoring system for making coordinated awards under all seven programs.

According to the Author

At the state level, local assistance efforts are largely conducted by individual grant programs, and, although centrally located via the California State Library's Grants Portal, nearly all state grant programs have unique and widely varied procedures for application and scoring. Further, although best practices for local assistance have been developed and published by the Strategic Growth Council, local assistance efforts are not uniformly conducted across state departments, offices, boards, commissions, and agencies.

Local municipalities often lack the resources, staff capacity, implementation experience, and technical expertise to apply for and secure competitive statewide targeted grant funding. Additionally, like other sectors, California cities are facing staffing shortages, a wave of early retirement, and other workforce stressors on existing municipal staff. Streamlined application processes and robust, uniform local assistance from the state is crucial for cities to effectively access state funding opportunities.

Arguments in Support

The League of California Cities, sponsor of this measure, writes, "At the state level, local assistance efforts are largely conducted by individual grant programs, and, although centrally located via the California State Library's Grants Portal, nearly all state grant programs have unique and widely varied procedures for application and scoring. Further, although best practices for local assistance have been developed and published by the Strategic Growth Council, local assistance efforts are not uniformly conducted across state departments, offices, boards, commissions, and agencies.

"Local municipalities often lack the resources, staff capacity, implementation experience, and technical expertise to apply for and secure competitive statewide targeted grant funding. Additionally, like other sectors, California cities are facing staffing shortages, a wave of early retirement, and other workforce stressors on existing municipal staff. Streamlined application processes and robust, uniform local assistance from the state is crucial for cities to effectively access state funding opportunities.

"Climate resiliency, natural resources, and environmental quality programs are nearly always funding with a combination of federal, state, and local resources. Cities are left to compete for scarce funding and stack various grant opportunities which increases the complexity and decreases the likelihood of successfully securing grant program funding. By aligning procedures of the financing programs under the purview of the California Natural Resources Agency and the California Environmental Protection Agency, AB 972 will help stretch limited funding as far as possible and bolster efforts to address shared state and local climate resiliency goals."

Arguments in Opposition

None on file.

FISCAL COMMENTS

According to the Assembly Appropriations Committee:

1. OPR estimates one-time General Fund (GF) costs of $481,000 for two positions to organize and facilitate the workgroup and to produce the report, including recommendations, to the Legislature.
2. Costs of an unknown amount, likely minor, to the California Natural Resources Agency, CalEPA, DOF, and the Department of Technology to participate in the workgroup.
3. Ongoing GF cost pressures of an unknown amount, likely minor, to implement the workgroup's recommendations, pursuant to the deadlines in the bill.

VOTES

ASM LOCAL GOVERNMENT: 8-0-0

YES: Aguiar-Curry, Dixon, Boerner, Pacheco, Ramos, Robert Rivas, Waldron, Wilson

ASM APPROPRIATIONS: 11-0-5

YES: Holden, Bryan, Calderon, Wendy Carrillo, Mike Fong, Hart, Lowenthal, Papan, Pellerin, Weber, Ortega

ABS, ABST OR NV: Megan Dahle, Dixon, Mathis, Robert Rivas, Sanchez

UPDATED

VERSION: May 18, 2023

CONSULTANT: Angela Mapp / L. GOV. / (916) 319-3958 FN: 0000456

Date of Hearing: May 17, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 972

Author:(Maienschein) – As Amended Ver:March 23, 2023

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires the Office of Planning and Research (OPR) to convene a statewide, cross-agency Local Assistance and Grant Program Streamlining Workgroup (workgroup).

Specifically, this bill:

1. Requires OPR, in consultation with the League of California Cities, to convene the workgroup no later than April 30, 2024, for the purpose of centralizing local assistance and developing a coordinated system to manage available state and federal funding in order to confront the effects of fragmented, decentralized state funding opportunities and in recognition of the importance of state and local partnerships.
2. Requires the workgroup to prioritize the unique needs of under-resourced and disadvantaged communities and to take into consideration achieving more equitable distribution of funding.
3. Requires workgroup members to be appointed by OPR, and to include representatives from OPR, the California Natural Resources Agency, California Environmental Protection Agency (CalEPA), the Department of Finance (DOF), the Department of Technology, the League of California Cities, and cities of specified populations and designations.
4. Requires the workgroup to consider, including but not limited to, developing plans and recommendations that accomplish any of the following:
   1. Creation, coordination, and implementation of an integrated, statewide, centralized program for assistance and training to local governments in grant application development, project management, implementation, and monitoring.
   2. Identify substantially similar state climate resiliency and other environmental or natural resources programs to enable the state to implement a single application, with aligned scoring criteria and deadlines, for making coordinated awards under all programs, pursuant to the timeline specified in 6), below.
   3. Identify information technology solutions to improve processes, support uniform applications, and manage data.
5. Requires the workgroup to develop a report that includes the workgroup’s findings, plans, and recommendations no later than January 31, 2025. Requires the report to include short-term, medium-term and long-term solutions to be accomplished by January 31, 2027.
6. Requires the workgroup to post the report on OPR’s internet website and provide the report to DOF and relevant policy and fiscal committees of the Legislature.
7. Requires, subject to appropriation by the Legislature, OPR and any other relevant state entities to implement the workgroup’s recommendations pursuant to the deadlines specified in 5), above.

FISCAL EFFECT:

1. OPR estimates one-time General Fund (GF) costs of $481,000 for two positions to organize and facilitate the workgroup and to produce the report, including recommendations, to the Legislature.
2. Costs of an unknown amount, likely minor, to the California Natural Resources Agency, CalEPA, DOF, and the Department of Technology to participate in the workgroup.
3. Ongoing GF cost pressures of an unknown amount, potentially substantial, to implement the workgroup’s recommendations, pursuant to the deadlines in the bill.

COMMENTS:

1. Purpose. This bill is sponsored by the League of California Cities, who writes:

At the state level, local assistance efforts are largely conducted by individual grant programs, and, although centrally located via the California State Library’s Grants Portal, nearly all state grant programs have unique and widely varied procedures for application and scoring. Further, although best practices for local assistance have been developed and published by the Strategic Growth Council, local assistance efforts are not uniformly conducted across state departments, offices, boards, commissions, and agencies. Local municipalities often lack the resources, staff capacity, implementation experience, and technical expertise to apply for and secure competitive statewide targeted grant funding. Streamlined application processes and robust, uniform local assistance from the state is crucial for cities to effectively access state funding opportunities.

1. State Library Grants Portal. AB 2252 (Limón), Chapter 318, Statutes of 2018, enacted the Grant Information Act of 2018, and required the California State Library (Library) to create a funding opportunities Internet Web portal (Portal) that provides a centralized location for grant seekers to find state grant opportunities. The bill required the Portal to include an interactive website that includes, at minimum, information identifying every grant administered by the state and any incentive opportunities allocated by statute or in the annual budget that will provide local assistance funds.

AB 2252 required the Portal to be accessible and provide helpful information to a diverse set of potential applicants and other entities working to support and benefit disadvantaged and low-income communities. AB 2252 also required each state agency, by July 1, 2020, to register every grant the state agency administers with the Library before commencing a solicitation or award process for distribution of the grant. Each state agency must also provide a link to the Library’s Portal on its website, and provide for the acceptance of electronic proposals for any grant administered by the agency.

According to the Library’s Annual Report for 2021-2022, 59 state agencies posted grants on the Portal and 109,501 applications were submitted for opportunities available on the Portal. Beginning July 2023, post-award data will be available for further analysis of the how and where grants are distributed in the state.

Although state grant listings are centralized in the Portal, advocates argue that most grants still have unique applications, program requirements and differing access to technical assistance, making it difficult for many local agencies to effectively apply for and secure grant funding. This bill requires OPR to convene a workgroup to coordinate assistance efforts, create a single application and make other improvements to the application process.

1. Related Legislation. AB 519 (Schiavo) creates an Affordable Housing Finance Workgroup to streamline the state’s application process for affordable housing financing programs. AB 519 is pending in this committee.

Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081

Date of Hearing: April 26, 2023

ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT

Cecilia Aguiar-Curry, Chair

ABPCA Bill Id:AB 972 (

Author:Maienschein) – As Amended Ver:March 23, 2023

SUBJECT: Local Assistance and Grant Program Streamlining Workgroup.

SUMMARY: Requires the Office of Planning and Research (OPR) to convene a statewide, cross-agency Local Assistance and Grant Program Streamlining Workgroup (workgroup). Specifically, this bill:

1. Requires OPR, in consultation with the League of California Cities, to convene the workgroup no later than April 30, 2024.
2. Provides that the purpose of the workgroup is to centralize local assistance and develop a coordinated system to manage available state and federal funding to deliver the maximum number of projects as efficiently as possible in order to confront the effects of fragmented, decentralized state funding opportunities and in recognition of the importance of state and local partnerships.
3. Requires the workgroup to prioritize the unique needs of underresourced and disadvantaged communities and to take into consideration achieving more equitable distribution of funding.
4. Requires workgroup members to be appointed by OPR and serve without compensation.
5. Requires workgroup members to include, but not be limited to, representatives from the following entities and stakeholders:
   1. OPR.
   2. The California Environmental Protection Agency (CalEPA) and, as necessary and appropriate as deemed by the workgroup chair, representatives of its boards, departments, and offices.
   3. The Natural Resources Agency and, as necessary and appropriate as deemed by the workgroup chair, its departments, representatives of its conservancies, and commissions.
   4. The Department of Finance (DOF).
   5. The Department of Technology.
   6. A city with a population of fewer than 50,000.
   7. A city with a population between 50,000 and 149,999.
   8. A city with a population between 150,000 and 249,999.
   9. A city with a population of more than 250,000.
   10. A rural city.
   11. A suburban city.
   12. An urban city.
   13. The League of California Cities.
6. Allows workgroup members to include, but not be limited to, other partners or representatives of entities involved in grant application development, project management, implementation, and monitoring, as needed.
7. Requires the workgroup to be chaired by the representative from OPR.
8. Requires the workgroup to meet as often as is necessary to develop robust, informed plans and recommendations.
9. Disbands the workgroup as of January 31, 2025.
10. Provides that the workgroup shall consider, but is not limited to, developing plans and recommendations that accomplish any of the following:
    1. Creation, coordination, and implementation of an integrated, statewide, centralized program for assistance and training to local governments in grant application development, project management, implementation, and monitoring.
    2. Identify substantially similar state climate resiliency and other environmental or natural resources programs to enable the state to implement a single application, with aligned scoring criteria and deadlines, for making coordinated awards under all programs, pursuant to the timeline specified in 11), below.
    3. Identify information technology solutions to improve processes, support uniform applications, and manage data.
11. Requires the workgroup to develop a report that includes the workgroup’s findings, plans, and recommendations no later than January 31, 2025. The report shall include all of the following:
    1. Short-term solutions that can be accomplished by June 30, 2025.
    2. Medium-term solutions that can be accomplished by January 31, 2026.
    3. Long-term solutions that can be accomplished by January 31, 2027.
12. Requires the workgroup to post the report on OPR’s internet website and provide the report to DOF and relevant policy and fiscal committees of the Legislature.
13. Requires, subject to appropriation by the Legislature, OPR and any other relevant state entities to implement the workgroup’s recommendations pursuant to the deadlines specified in 11), above.
14. States that local government assistance is a critical tool for advancing equity and shared state and local policy goals by increasing access to state funding programs and other opportunities for the state’s most underresourced and historically underinvested communities. As such, it becomes increasingly necessary to coordinate and align local assistance resources to ensure that every community has the same opportunity to compete for the funding that is available to meet those goals.
15. States that local municipalities often lack the resources, staff capacity, implementation experience, and technical expertise to apply for and secure competitive statewide targeted grant funding. Additionally, like other sectors, California cities are facing staffing shortages, a wave of early retirement, and other workforce stressors on existing municipal staff. In order for cities to effectively access state funding opportunities, streamlined application processes and robust, uniform local assistance from the state is crucial.

FISCAL EFFECT: This bill is keyed fiscal.

COMMENTS:

1. Bill Summary. This bill requires OPR to establish a workgroup comprised of representatives from the California Natural Resources Agency, CalEPA, DOF, the Department of Technology, and multiple city representatives to consider developing plans and recommendations that accomplish any of the following:
   1. Creation, coordination, and implementation of an integrated, statewide, centralized program for assistance and training to local governments in grant application development, project management, implementation, and monitoring.
   2. Identify substantially similar state climate resiliency and other environmental or natural resources programs to enable the state to implement a single application, with aligned scoring criteria and deadlines, for making coordinated awards under all programs.
   3. Identify information technology solutions to improve processes, support uniform applications, and manage data.

The workgroup must develop a report that includes the workgroup’s findings, plans, and recommendations no later than January 31, 2025. The report must include all of the following:

• 1. Short-term solutions that can be accomplished by June 30, 2025.
  2. Medium-term solutions that can be accomplished by January 31, 2026.
  3. Long-term solutions that can be accomplished by January 31, 2027.

The workgroup must post the report on OPR’s internet website and provide it to DOF and relevant policy and fiscal committees of the Legislature. This bill requires OPR and any other relevant state entities to implement the workgroup’s recommendations, subject to appropriation by the Legislature. The bill disbands the workgroup as of January 31, 2025.

This bill is sponsored by the League of California Cities.

1. Author’s Statement. According to the author, “At the state level, local assistance efforts are largely conducted by individual grant programs, and, although centrally located via the California State Library’s Grants Portal, nearly all state grant programs have unique and widely varied procedures for application and scoring. Further, although best practices for local assistance have been developed and published by the Strategic Growth Council, local assistance efforts are not uniformly conducted across state departments, offices, boards, commissions, and agencies.

“Local municipalities often lack the resources, staff capacity, implementation experience, and technical expertise to apply for and secure competitive statewide targeted grant funding. Additionally, like other sectors, California cities are facing staffing shortages, a wave of early retirement, and other workforce stressors on existing municipal staff. Streamlined application processes and robust, uniform local assistance from the state is crucial for cities to effectively access state funding opportunities

1. State Library Grants Portal. AB 2252 (Limón), Chapter 318, Statutes of 2018, enacted the Grant Information Act of 2018, and required the California State Library (Library) to create a funding opportunities Internet Web portal (Portal) that provides a centralized location for grant seekers to find state grant opportunities. The bill required the Portal to include an interactive website that includes, at minimum, information identifying every grant administered by the state and any incentive opportunities allocated by statute or in the annual budget that will provide local assistance funds.

The bill required the website to be accessible and provide helpful information to a diverse set of potential applicants and other entities that are working to support and benefit disadvantaged and low-income communities. It also required each state agency, on or before July 1, 2020, to register every grant the state agency administers with the Library before commencing a solicitation or award process for distribution of the grant.

Each state agency must provide information regarding each grant that assists the Library with cataloging the distribution of grants and provides potential applicants with understandable and consistent information about available funding opportunities, including, but not limited to, all of the following:

• 1. The title of the grant opportunity and grant identification number.
  2. The revenue source allocated to fund the grant.
  3. The purpose of the grant.
  4. A brief description of the grant, including, but not limited to, the mechanism used to announce the availability of funding.
  5. Any eligibility requirements, including, but not limited to, any matching funds requirements.
  6. Geographic limitations, if any.
  7. A description of the total available grant funding, the number of awards, and the amounts per award.
  8. The period of time covered by the grant.
  9. The date the grant will be issued.
  10. The deadline for proposals to be submitted.
  11. Internet address for electronic submission of the proposal.
  12. Contact information of a staff member responsible for communicating the grant requirements.

Each state agency must provide a link to the Library’s Portal on their Internet Web sites, and must provide for the acceptance of electronic proposals for any grant administered by the agency.

AB 2252 required the Library to provide an annual report to the Legislature on the effectiveness of the Portal. According to the Library’s Annual Report for July 1, 2021-July 1, 2022, “The California Grants Portal (grants.ca.gov), born out of the Grant Information Act of 2018 (Stats. 2018, Ch. 318), launched on July 1, 2020. To create this user-centered one-stop-shop funding destination, the California State Library collaborated with more than 50 state agencies, departments, commissions, and bureaus that award grants or loans on a competitive or first-come basis.

“Comparing data from fiscal year 2020-2021 to 2021-2022, the Grants Portal saw growth in the number of visitors to the portal (18%), the number of grant and loan opportunities posted to the portal (37%), as well as the number of California state government entities posting their opportunities on the portal (13%).

According to the report, 59 state agencies posted grants on the Portal and 487 opportunities were available on the Portal. Grant opportunities by topic show 41% of opportunities fell under the Environment & Water category, 37% of opportunities fell under the Disadvantaged Communities category, 20% of opportunities fell under the Health & Human Services category, 19% of opportunities fell under the Education category, and 19% fell under the Housing, Community and Economic Development category.

The report identifies how agencies determine available funding per opportunity, and notes the average amount of estimated funds available per opportunity was $68,504,201, and the median amount of estimated funds available per opportunity was $5,000,000. The report shows 1,317,936 users visited the Portal between July 1, 2021, and July 1, 2022. It also notes that 9% of visitors used the California Small Business COVID-19 Relief Grant page, 16% visited the Grants Portal homepage, and 75% visited the main grants search page. According to the report, 109,501 applications were submitted for opportunities available on the Portal.

The report states, “Starting July 2023, post-award data will be available, offering a first-ever look at how and where grants are distributed throughout California. This crucial new set of data is an opportunity to create greater public awareness of this tool as we continue to learn more about how ongoing agency data stewardship results in successful, positive granting processes throughout the State of California. Given that 49% of grant proposals are accepted via online submission and 32% by email, each year we learn more about how users are experiencing the portal, and in turn, we improve our user experience to increase equitable access to grant opportunities.

1. Housing Grant Programs. AB 434 (Daly), Chapter 192, Statutes of 2020, aligned six rental housing programs with the Multifamily Housing Program (MHP), to enable the state Department of Housing and Community Development (HCD) to implement a single application and scoring system for making coordinated awards under all seven programs.

According to the Assembly Housing and Community Development Committee’s analysis of AB 434, “The state has been working in recent years to align its housing programs. MHP – HCD’s flagship rental housing program – either prioritizes four percent tax credits or requires them, depending on the type of project. TCAC, CDLAC, and the California Housing Finance Agency (CalHFA) have implemented a joint application for the Mixed Income Program, which helps finance construction of new affordable multifamily housing projects (funded by SB 2, Atkins, 2017). And budget trailer bill legislation this year (AB 83, 2020) directs HCD, TCAC, and CDLAC to ‘develop a coordinated system to manage available state funding and private activity bonds to deliver the maximum number of units as efficiently as possible to very low and extremely low income households.’

“This bill amends statutes relating to six specialty rental housing programs under HCD to align eligibility criteria, scoring, and deadlines for these programs with MHP. This would enable HCD to implement a single application and scoring system for making coordinated awards under all seven programs. The author and sponsors envision that under this streamlined process, applicants would select which specialty programs they are applying for based on the populations they intend to serve. HCD would use a single scoring and tiebreaker system to rank applications and fund projects in ranked order, using funds from the specialty programs as requested. Once specialty program funds are exhausted, the top ranked applicants would receive MHP funds as a replacement until funds are exhausted.”

1. Arguments in Support. The League of California Cities, sponsor of this measure, writes, “At the state level, local assistance efforts are largely conducted by individual grant programs, and, although centrally located via the California State Library’s Grants Portal, nearly all state grant programs have unique and widely varied procedures for application and scoring. Further, although best practices for local assistance have been developed and published by the Strategic Growth Council, local assistance efforts are not uniformly conducted across state departments, offices, boards, commissions, and agencies.

“Local municipalities often lack the resources, staff capacity, implementation experience, and technical expertise to apply for and secure competitive statewide targeted grant funding. Additionally, like other sectors, California cities are facing staffing shortages, a wave of early retirement, and other workforce stressors on existing municipal staff. Streamlined application processes and robust, uniform local assistance from the state is crucial for cities to effectively access state funding opportunities.

“Climate resiliency, natural resources, and environmental quality programs are nearly always funding with a combination of federal, state, and local resources. Cities are left to compete for scarce funding and stack various grant opportunities which increases the complexity and decreases the likelihood of successfully securing grant program funding. By aligning procedures of the financing programs under the purview of the California Natural Resources Agency and the California Environmental Protection Agency, AB 972 will help stretch limited funding as far as possible and bolster efforts to address shared state and local climate resiliency goals.”

1. Arguments in Opposition. None on file.

REGISTERED SUPPORT / OPPOSITION:

Support

League of California Cities [SPONSOR]

Opposition

None on file

Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958