BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 347
                                                                  Page  1

          Date of Hearing:   August 21, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                      SB 347 (Beall) - As Amended:  May 7, 2013 

          Policy Committee:                             Human  
          ServicesVote:7 - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill allows a county to avoid repayment provisions  
          established under the Youth Center and Youth Shelter Bond Act of  
          1988 for funds initially allocated for shelters for abused and  
          neglected children that were expended for shelters for runaway  
          or homeless youth.

           FISCAL EFFECT  

          1)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, would  
            be 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.

          2)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.

           COMMENTS  

           Purpose and Background . In 1990, the County of Santa Clara  
          applied for, and received, $1 million in funding from  
          Proposition 86 to help fund a new children's shelter.  More  
          recently, the county has decided to sell this property.  Under  
          the terms of the grant, the funding must be returned to the  
          state upon the sale of the property.  









                                                                  SB 347
                                                                  Page  2

          This bill would instead allow the County of Santa Clara to put  
          this funding toward other local uses that would fulfill the  
          original purpose of the grant, which was to fund youth shelters.  
           Specifically, the bill would allow qualified non-profit  
          agencies within the county to apply for funding to acquire,  
          renovate, construct or purchase equipment for runaway youth or  
          homeless youth shelters.  Under this legislation, if the other  
          county that received funding - the County of San Diego - were to  
          close its shelter, it would also be able to redirect its  
          funding.  


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081