BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 706


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          706 (Bonilla)


          As Amended  August 31, 2015


          Majority vote


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          |ASSEMBLY:  |80-0  |(June 1, 2015) |SENATE: |40-0  |(September 3,    |
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          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  








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            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  








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            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


















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