BILL ANALYSIS Ó 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