BILL ANALYSIS                                                                                                                                                                                                    



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          ASSEMBLY THIRD READING


          AB  
          1348 (Irwin)


          As Amended  January 14, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Jobs            |9-0  |Eduardo Garcia, Kim,  |                    |
          |                |     |Brough, Brown, Chau,  |                    |
          |                |     |Chu, Gipson, Irwin,   |                    |
          |                |     |Mathis                |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |17-0 |Gomez, Bigelow,       |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Holden,       |                    |
          |                |     |Jones, Quirk, Wagner, |                    |
          |                |     |Weber, Wood           |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          SUMMARY:  Expands the positions and duties of the State  








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          Clearinghouse to include a federal grant administrator.  Among  
          other duties, the federal grant administrator serves as the  
          state's primary point of contact for information on federal  
          grants related to community, economic, and local development.   
          On or before January 1, 2018, and annually thereafter, the  
          federal grant administrator is required to prepare a summary of  
          his or her activities, including a list of federal grants  
          received by the state and local governments during the report  
          period, as specified.
          EXISTING LAW requires the State Clearinghouse, which is located  
          within the Governor's Office of Planning and Research, to serve  
          as the "State Single Point of Contact" for coordinating state  
          and local review of certain federal community  
          development-related documents, pursuant to Presidential  
          Executive Order 12372.  In this capacity, the State  
          Clearinghouse coordinates the review of federal financial  
          assistance applications, federally required state plans, direct  
          federal development activities, and federal environmental  
          documents. 


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, implementation of this bill incurs General Fund (GF)  
          administrative costs of approximately $200,000 for fiscal year  
          (FY) 2017-18, and ongoing GF costs of approximately $180,000, to  
          support the federal grant administrator position and associated  
          duties.  The higher costs in the first year are attributed to  
          necessary Web site updates.


          COMMENTS:  Grants are becoming an increasing part of the federal  
          government's process for advancing new federal policies.   
          According to the federal Office of Management and Budget,  
          federal outlays for grants to state and local governments  
          increased from $91 billion in 1980 ($224 billion in constant  
          dollars) to approximately $546 billion in the 2013 federal  
          fiscal year.  










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          While historically, states have utilized their budget and fiscal  
          offices to track and manage federal funds, a growing number of  
          states are examining how to take a more proactive approach to  
          this shift in federal program delivery.  One model being  
          considered is the establishment of a Federal Grant Office.  In  
          February 2015, the National Conference of State Legislatures  
          (NCSL) testified before the Assembly Jobs, Economic Development,  
          and the Economy Committee (JEDE) on the establishment and use of  
          these offices.  In addition to helping the state identify a  
          greater number of federal grant opportunities, the NCSL  
          representative identified a number of other Federal Grant Office  
          advantages, including:


          1)Providing training opportunities to state and local grant  
            writers and managers;


          2)Setting a standard for better oversight and management  
            practices;


          3)Strengthening the state's network of public and private sector  
            grant professionals;


          4)Reducing the time local governments and nonprofits spend  
            researching new grant opportunities and tracking oversight and  
            reporting requirements;


          5)Serving as a key constituent referral point for state  
            legislative and United States (U.S.) Congressional offices;  
            and


          6)Reviewing requests for letters of support from state agencies,  
            other government entities, and the private sector.









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          State Rankings:  On a per capita basis, California ranks in the  
          middle (24th) with $1,719 per capita as compared to the national  
          average of $1,625.  Chart 1 displays federal grant spending for  
          selected states.





             --------------------------------------------------------------- 
            |    FY 2014 Per Capita Federal Spending on Selected Grants     |
            |                                                               |
            |                                                               |
             --------------------------------------------------------------- 
            |--------------+--------------+--------------+--------------+--------------+--------------+--------------|
            |     Rank     |    State     |  Amount Per  |              |     Rank     |    State     |  Amount Per  |
            |              |              |    Capita    |              |              |              |    Capita    |
            |              |              |              |              |              |              |              |
            |              |              |              |              |              |              |              |
            |--------------+--------------+--------------+--------------+--------------+--------------+--------------|
            |      1       | District of  |    $4,343    |              |      --      | U.S. Average |    $1,625    |
            |              |   Columbia   |              |              |              |              |              |
            |              |              |              |              |              |              |              |
            |              |              |              |              |              |              |              |
            |--------------+--------------+--------------+--------------+--------------+--------------+--------------|
            |      4       |   New York   |    $2,666    |              |      35      |   Arizona    |    $1,513    |
            |              |              |              |              |              |              |              |
            |              |              |              |              |              |              |              |
            |--------------+--------------+--------------+--------------+--------------+--------------+--------------|
            |      8       | Mississippi  |    $2,157    |              |      36      |    Texas     |    $1,509    |
            |              |              |              |              |              |              |              |
            |              |              |              |              |              |              |              |
            |--------------+--------------+--------------+--------------+--------------+--------------+--------------|
            |      11      |    Maine     |    $1,852    |              |      45      |  Washington  |    $1,233    |
            |              |              |              |              |              |              |              |
            |              |              |              |              |              |              |              |
            |--------------+--------------+--------------+--------------+--------------+--------------+--------------|
            |      18      |    Oregon    |    $1,790    |              |      47      |   Florida    |    $1,184    |








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            |              |              |              |              |              |              |              |
            |              |              |              |              |              |              |              |
            |--------------+--------------+--------------+--------------+--------------+--------------+--------------|
            |      24      |  California  |    $1,719    |              |      51      |    Nevada    |    $1,069    |
            |              |              |              |              |              |              |              |
            |              |              |              |              |              |              |              |
             -------------------------------------------------------------------------------------------------------- 
             --------------------------------------------------------------- 
            |    Source:  NCSL and the Federal Funds Information for States |
            |(February 28, 2014)                                            |
            |                                                               |
            |                                                               |
            |                                                               |
            |                                                               |
            |                                                               |
             --------------------------------------------------------------- 


          According to research presented at the JEDE hearing, the  
          District of Columbia, Arizona, Massachusetts, Maryland, Nevada,  
          and Rhode Island have Federal Grant Offices with a number of  
          other states considering their adoption.   For state's wanting  
          to establish centralized grant offices, NCSL recommends that  
          states begin with three core components: a designated point of  
          contact for federal grants; an annual report to track federal  
          fund activities; and a Web site to share critical information.   
          This bill proposes these initial steps toward a more proactive  
          approach to federal grant making.   


          Analysis Prepared by:                          Toni Symonds /  
          J., E.D., & E. / (916) 319-2090                  FN: 0002573















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