BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1788
                                                                  Page  1


           CORRECTED  - 06/02/2010 Technical change (Member name)

          ASSEMBLY THIRD READING
          AB 1788 (Yamada)
          As Introduced  February 10, 2010
          Majority vote 

           WATER, PARKS & WILDLIFE   12-0  APPROPRIATIONS      17-0        
           
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          |Ayes:|Huffman, Fuller,          |Ayes:|Fuentes, Conway, Ammiano, |
          |     |Anderson, Arambula, Tom   |     |                          |
          |     |Berryhill, Blumenfield,   |     |Bradford, Charles         |
          |     |Caballero, De La Torre,   |     |Calderon, Coto,           |
          |     |Bill Berryhill, Bonnie    |     |Davis, Monning, Ruskin,   |
          |     |Lowenthal, Salas, Yamada  |     |Harkey,                   |
          |     |                          |     |Miller, Nielsen, Norby,   |
          |     |                          |     |Skinner,                  |
          |     |                          |     |Solorio, Torlakson,       |
          |     |                          |     |Torrico                   |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Changes the eligibility criteria under which a flood  
          control project may receive increased state funding and makes  
          minor technical corrections.  Specifically,  this bill  :  

          1)Makes a flood control project in an economically disadvantaged  
            area eligible for an increase in state matching funds if the  
            number of families in poverty in that area is at least 150% of  
            the California average.

          2)Corrects the name of the former Reclamation Board to the  
            Central Valley Flood Protection Board.

           EXISTING LAW  : 

          1)Requires specific percentages of nonfederal (i.e., state and  
            local) cost sharing for federal flood control projects.
           
          2)Allows the state to increase the state share of the nonfederal  
            capital costs of a flood control project from 50% to up to 70%  
            if the project would increase the level of flood protection in  
            an area with a median household income that is less than 120 %  








                                                                  AB 1788
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            of the federal poverty level, as defined by the Department of  
            Finance.

          3)Changes the name of the Reclamation Board to the Central  
            Valley Flood Protection Board.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, cost pressures of an unknown amount, but potentially  
          in the millions of dollars.  This is because more flood control  
          projects will qualify for state subvention funding, which is  
          finite.  To the extent the state wishes to fund all these flood  
          control projects, there will be cost pressure to find new fund  
          sources to do so.  (Bond funds or special funds.)

           COMMENTS  :   Under the State Water Resources Law of 1945, the  
          state may participate in funding local flood control projects  
          that are authorized by the Legislature and that meet specified  
          criteria.  State authorization for funding of a flood control  
          project is contingent upon preceding federal statutory  
          authorization of the project.  

          Consistent with state law (AB 1147 (Honda), Chapter 1071,  
          Statutes of 2000), the state must contribute a portion of the  
          capital costs of the non-federal share (meaning the costs paid  
          by state or local governments of federal flood control projects  
          that have been authorized by the state).  In most cases, the  
          state portion is 50% of the non-federal share.  If the area to  
          be benefited by that project is economically disadvantaged, the  
          state can increase its share of the non-federal flood control  
          project costs to up to 70%.

          The determination of whether an area is economically  
          disadvantaged, and therefore qualifies for an increased state  
          payment of the non-federal share, is currently based on a  
          whether a project increases flood protection in an area with a  
          median household income less than 120% of the federal poverty  
          level.  Such a comparison to federal median income levels  
          doesn't take into consideration that, while California average  
          income levels are higher, California costs of living are also  
          higher.

          This bill would determine eligibility for the state to pay up to  
          70% of the non-federal share by comparing the number of families  
          living in poverty in the area to be benefited against the median  








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          percentage of families living in poverty in California.  If the  
          area to be benefited is at least 150% of the California average,  
          it would be eligible.  

          As of 2009, there were about $82 million in claims for  
          subventions for approved flood control projects. There is about  
          $350 million remaining in unappropriated Proposition 1E funds  
          for flood control subventions. 

          Supporters, including numerous local governments, contend this  
          bill would result in increased funding for important flood  
          control projects, especially in areas of the state with  
          relatively high rates of poverty.

          There is no registered opposition to this bill.  


           Analysis Prepared by  :    Tina Cannon Leahy / W., P. & W. / (916)  
          319-2096 


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