BILL ANALYSIS                                                                                                                                                                                                    





          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1348 (Irwin) - State Clearinghouse
          
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          |Version: January 14, 2016       |Policy Vote: G.O. 11 - 0        |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: June 20, 2016     |Consultant: Mark McKenzie       |
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          This bill meets the criteria for referral to the Suspense File.



          Bill  
          Summary:  AB 1348 would establish the position of federal grant  
          administrator within the State Clearinghouse at the Governor's  
          Office of Planning and Research (OPR) to serve as the state's  
          primary point of contact for information on federal grants. The  
          bill would also require the federal grant administrator to  
          prepare an annual summary that includes specified information  
          regarding federal grant funding.


          Fiscal  
          Impact:  
           OPR costs in the range of $200,000 to $300,000 annually for  
            two new positions and associated administrative costs.  
            (General Fund)








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           Unknown, potential increases in federal funds to state and  
            local entities, to the extent the bill results in more  
            competitive federal grant applications.


          Background:  Existing law requires the State Clearinghouse, which is  
          located within OPR, 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.  OPR is required to coordinate the development of  
          policies and criteria to ensure that federal grants administered  
          or expended by the state advance statewide environmental goals  
          and objectives.

          Existing law requires the State Controller and all state  
          agencies receiving federal funds to keep an accurate account of  
          those moneys, and establishes the Federal Trust Fund within the  
          State Treasury for deposit of all federal funds, as specified.   
          The expenditure of moneys within the Federal Trust Fund is under  
          the direction of the related state agency, pursuant to the any  
          conditions prescribed by the Director of Finance. 




          Proposed Law:  
            AB 1348 would establish the position of federal grant  
          administrator within the State Clearinghouse at the Governor's  
          Office of Planning and Research (OPR) to serve as the state's  
          primary point of contact for information on federal grants  
          related to community, economic, and local development.  The bill  
          authorizes the federal grant administrator to do any of the  
          following:
           Work with state and local government officials, nonprofits,  
            foundations, higher education institutions, and other  
            interested parties on applying for and managing federal  
            grants.
           Identify state government employees with expertise in federal  
            grant management.
           Support the establishment of a statewide network of  







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            individuals who serve as points-of-contact for federal grant  
            opportunities, as specified.
           Provide or facilitate the provision of in-person and online  
            training to encourage and improve the ability to pursue and  
            manage federal grants.
           Develop and maintain information on OPR's Internet Web site  
            related to new federal grant opportunities, grant management  
            best practices, and other resources to support state, local  
            government, and nonprofit efforts to pursue and manage federal  
            grants.

          AB 1348 would also require the federal grant administrator to  
          prepare an annual summary of the state's federal grant funding,  
          beginning on or before January 1, 2018, that tracks the  
          following during the report year:

           The number of federal grants awarded to the state, including  
            grants awarded during the three years prior to the  
            establishment of the federal grant administrator.
           The number of completed federal grant applications submitted  
            by the state.
           Total federal dollars received by the state through federal  
            grants.
           Total federal grant dollars expended by the state.
           Total federal grand dollars received by school districts and  
            local governments in the state.
           The number of training sessions hosted by the federal grant  
            administrator and attendance at those events.
           Other relevant information regarding federal grant activities  
            within the state, as determined by the federal grant  
            administrator.


          Staff  
          Comments:  Currently, the State Clearinghouse tracks the flow of  
          federal resources to ensure compliance with federal  
          requirements.  This bill would require more active involvement  
          from dedicated staff to coordinate state and local efforts to  
          pursue and manage federal grant funds.  OPR indicates that the  
          bill will require the establishment of a federal grant  
          administrator position and one an additional position, with  
          combined salaries of approximately $165,000, plus an additional  
          $35,000 in resources for training, outreach, and travel  
          expenses.  Costs for personnel benefits and operating  
          expenditures and equipment will likely add an additional $60,000  







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          to $80,000 in annual costs.  As a result of increased  
          coordination among state and local government officials  
          regarding the pursuit of federal grants and other funding  
          opportunities, this bill is likely to result in some increases  
          in federal funding for the state, the magnitude of which is  
          unknown.


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