BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 347|
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THIRD READING
Bill No: SB 347
Author: Beall (D), et al.
Amended: 5/7/13
Vote: 21
SENATE PUBLIC SAFETY COMMITTEE : 7-0, 4/2/13
AYES: Hancock, Anderson, Block, De Le�n, Knight, Liu, Steinberg
SENATE APPROPRIATIONS COMMITTEE : 7-0, 5/23/13
AYES: De Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg
SUBJECT : Youth shelters: funding
SOURCE : Santa Clara County
DIGEST : This bill allows a county to avoid repayment
provisions established under the Youth Center and Youth Shelter
Bond Act of 1988 (Act) for funds initially allocated for
shelters for abused and neglected children but was expended for
shelters for runaway or homeless youth, as specified.
ANALYSIS :
Existing law:
1. Establishes the Act, and funding for the Act derived from the
County Correctional Facility Capital Expenditure and Youth
Facility Bond Fund Act of 1988, created pursuant to
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Proposition 86, passed by the voters in November of 1988.
2. Authorizes awards of funds appropriated under the Act to
public or private nonprofit agencies or joint ventures, or
both, for the purpose of acquiring, renovating, constructing,
and purchasing equipment for youth centers or youth shelters.
3. Requires that with respect to the allocation of bond
proceeds, funding for youth shelters will be awarded with at
least 70% to shelters for runaway youth and a maximum of 30%
to shelters for abused and neglected children, as specified.
4. Provides that any money that has been awarded to shelters for
abused or neglected children under this Act, and not
encumbered by July 1, 1992, will be reallocated according to
a supplemental process to be developed by the state when the
unspent funds equals $500,000 or more, as specified.
5. Provides that the state is entitled to "recapture a portion
of state funds from the recipient of a contract if, within 10
years after acquisition, 20 years after completion of
construction, or three to 10 years after renovation, if
either of the following occurs:
A. The recipient of a contract ceases to be a public or
nonprofit agency.
B. The facility is no longer used for youth center or
youth shelter activities.
This bill:
1. Provides counties with the following flexibilities regarding
funds allocated pursuant to the Act.
2. Allows a county to avoid repayment provisions under existing
law where funds initially allocated for shelters for abused
and neglected children were expended for shelters for runaway
or homeless youth, as specified.
3. Authorizes a county to use unexpended funds awarded to a
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shelter for abused and neglected children for the purpose of
acquiring, renovating, constructing, or purchasing equipment
for a shelter for runaway or homeless youth. Requires the
revision of contracts as necessary to implement this
authority.
4. Authorizes a county to use funds received under a contract,
as specified, to provide grant awards to private nonprofit
entities for the acquisition, renovation, construction, or
purchase of equipment for a youth shelter.
Background
In 1988 the voters passed Proposition 86, the County
Correctional Facility Capital Expenditure and Youth Facility
Bond Act of 1988. That measure authorized the state to sell
$500 million in general obligation bonds to raise money for
county correctional facilities, county juvenile facilities,
youth centers and youth shelters, allocated as follows:
$410 million for county correctional facilities.
$65 million for county juvenile facilities.
$25 million for youth centers or youth shelters.
Of the $25 million for youth centers or shelters, the initiative
required that $15 million be available for youth centers, and
$10 million for youth shelters, to be distributed by Juvenile
Justice. This bill allows funds (or derivative proceeds)
allocated or awarded for shelters for abused and neglected
children to be shifted without, essentially, penalty, to
shelters for runaway or homeless youth.
Related Legislation
AB 2737 (Waters, Chapter 1535, Statutes of 1988) created the Act
, establishing the authority and process for awarding the bond
proceeds for youth shelters and youth centers authorized under
Proposition 86.
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FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Near-term loss of revenue of at least $1 million (General
Fund) from the recent sale proceeds of property in Santa
Clara County subject to repayment provisions under current
law. The actual repayment amount, which has yet to be
determined, is the proportion of the current value of the
property equal to the proportional share of state funds
contributed to the original cost of the project.
Potential future loss of revenue of at least $1 million
(General Fund) for funds awarded to San Diego County should
the county violate its contract obligations prior to
September 2014.
SUPPORT : (Verified 5/23/13)
Santa Clara County (source)
Bill Wilson Center
California Alliance of Child and Family Services
California Coalition for Youth
California Council of Community Mental Health Agencies
California Youth Empowerment Movement
Housing California
Housing Trust of Santa Clara County
Mental Health America of California
ARGUMENTS IN SUPPORT : According to the author's office,
Proposition 86 authorized providing funding to up to three
counties, for a maximum of $1 million each, for the construction
of large shelters to serve abused and neglected children. Santa
Clara County was one of two counties to take advantage of the
finding and used the funds to build the Santa Clara County
Children's Shelter.
California Welfare and Institutions Code Section 2010 to 2024
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and Penal Code Section 4496.10 to 4496.19 to provide that with
respect to the former Children's Shelter, County of Santa Clara
is not obligated or required to repay to the Board of State and
Community Corrections any funds used for the construction of the
former Children's Shelter, but rather that upon sale the County
could allocate the amount of its original grant ($1 million)
from sale proceeds to fund County grant awards to qualified
non-profit agencies located within the County of Santa Clara for
the purpose of acquiring, renovating, construction, or
purchasing equipment for runaway and homeless youth shelters.
JG:d 5/24/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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