BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 453
                                                                  Page  1

          Date of Hearing:   April 17, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                 AB 453 (Mullin) - As Introduced:  February 19, 2013

          Policy Committee:                              Local  
          GovernmentVote: 8-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill adds local agency formation commissions (LAFCOs) to  
          the list of eligible applicants for Strategic Growth Council  
          financial assistance, including grants and loans for developing,  
          adopting and implementing a regional plan or other planning  
          instrument to support the planning and development of  
          sustainable communities.

           FISCAL EFFECT  

          1)Increased cost pressures resulting from expanding eligibility  
            for sustainable community loans and grants, (Prop 84 bond  
            funds and special funds).

          2)Negligible costs for the administration of the grant program.

           COMMENTS  

           1)Purpose  .  LAFCOs play an important role in achieving the broad  
            goals of the Strategic Growth Council.  Increased funding  
            would allow LAFCO to prepare more comprehensive studies in  
            collaboration with regional transportation agencies.   This  
            bill allows LAFCOs to apply for planning grants.

           2)Background  .  Proposition 84, the Safe Drinking Water, Water  
            Quality and Supply, Flood Control, River and Coastal  
            Protection Bond Act of 2006, included $90 million for planning  
            grants and incentives including revolving loan programs and  
            other methods to encourage the development of regional and  
            local land use plans.









                                                                  AB 453
                                                                  Page  2

            Of the approximately $63 million allocated for the Sustainable  
            Communities Planning Grants program, 93 grants totaling more  
            than $50 million have been awarded to cities, counties, and  
            regional agencies. There is approximately $16 million  
            remaining to distribute in a third and final round.

           3)Strategic Growth Council.   SB 732 (Steinberg, 2008), created  
            the Strategic Growth Council and requires the council to  
            manage and award financial assistance to Councils of  
            Governments (COGs), Metropolitan Planning Organizations  
            (MPOs), Regional Transportation Planning Agencies (RTPAs),  
            cities, counties, and Joint Powers Authorities (JPAs) to  
            develop, adopt, or implement  regional plans.

            The Department of Conservation administers the Sustainable  
            Communities Planning Grant and Incentive Program, on behalf of  
            the Strategic Growth Council. This program implements the  
            goals of SB 732 to foster the development of sustainable  
            communities throughout California.  It is designed to help  
            local governments meet the challenges of adopting land use  
            plans and integrating strategies in order to transform  
            communities and create long-term prosperity.  

           4)Local Agency Formation Commissions (LAFCOs)  .  LAFCOs are  
            required to complete a MSR prior to a sphere of influence  
            update.  MSRs are comprehensive in nature and examine growth  
            and population projections, present and planned capacity of  
            public facilities, infrastructure needs or deficiencies  
            related to sewer, water and fire protection, and the financial  
            ability of agencies to provide services.    





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