BILL ANALYSIS Ó AB 706 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 706 (Bonilla) As Amended August 31, 2015 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |80-0 |(June 1, 2015) |SENATE: |40-0 |(September 3, | | | | | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: A. & A.R. SUMMARY: Establishes the California AmeriCorps Science, Technology, Engineering and Math (Cal AmeriCorps STEM) program in state government. The Senate amendments: 1)Authorize the Cal AmeriCorps STEM program administrator, CaliforniaVolunteers (Cal Volunteers), to form a tax-exempt public benefit nonprofit foundation, or other qualified tax-exempt entity, to raise revenues and receive financial support from public or private sources, for the purpose of undertaking or funding authorized activities. 2)Require financial support for the nonprofit foundation to be used solely for governmental purposes approved by Cal AB 706 Page 2 Volunteers for activities within its authority. 3)Delete the requirement that an applicant provide proof of incurred student debt as a condition of eligibility for participating in Cal AmeriCorps STEM. 4)Provide that the mission of the Cal Volunteers nonprofit foundation authorized in this bill is to support the funding of Cal AmeriCorps STEM programming and administrative costs, and to support any other priorities set by the Governor or Cal Volunteers. 5)Limit participation in the Cal AmeriCorps STEM program to a maximum of 40 members for the first three years, and specify that program size would be determined by available funding in future years. 6)Cap nonprofit foundation administrative costs at $100,000 annually. 7)Prohibit General Fund (GF) moneys from being used for Cal AmeriCorps STEM. 8)Make other technical and clarifying changes. EXISTING LAW establishes Cal Volunteers in the Governor's Office to manage programs and initiatives for service and volunteerism. FISCAL EFFECT: According to the Senate Appropriations Committee: 1)Initial costs to Cal Volunteers would be in the range of $80,000 for one personnel year (PY) of staff to administer the AB 706 Page 3 California AmeriCorps STEM program, based upon an initial cap of 40 members for the first three years. Cal Volunteers estimates the need for 2.2 PY, at a cost of approximately $180,000, to implement and administer the program if the program grows to 150 members in future years. (General Fund (GF) and/or private funds) 2)Cal Volunteers estimates a need for $200,000 and one PY to staff the nonprofit foundation, but the bill limits administrative expenditures of the foundation to $100,000 per year. (GF and/or private funds) 3)Program costs would depend on the number of members participating in the program and the demand for STEM programs. For the first three years, the program is limited to 40 members, which would require approximately $1 million in non-GF program funds. If there is sufficient funding available, Cal Volunteers estimates a need for approximately $3.6 million in program funds if there are 150 members and 10 grantees. (Private funds, federal funds, local matching funds) COMMENTS: Senate amendments specify the mission of the nonprofit foundation that Cal Volunteers is authorized to establish under this bill; impose an initial three-year cap of 40 participants in the Cal AmeriCorps STEM program; and, aim to reduce program costs. Analysis Prepared by: Cassie Royce / A. & A.R. / (916) 319-3600 FN: 0001900 AB 706 Page 4