BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1403


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          Date of Hearing:  April 29, 2015


               ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT


                                   Ed Chau, Chair


          AB 1403  
          (Maienschein) - As Amended April 7, 2015


          SUBJECT:  Housing:  joint powers agreement


          SUMMARY:  Allows one or more private, non-profit 501 (c) (3)  
          corporations that provide services to homeless persons for the  
          prevention of homelessness to form a joint powers agency (JPA),  
          or enter into a joint powers agreement, with one or more public  
          agencies.  Specifically, this bill:  


          1)Defines "frequent user coordinated care housing services" to  
            mean housing combined with other supportive services for  
            homeless persons identified by a city or county as the most  
            costly, frequent users of publicly funded emergency services. 


          2)Defines "supportive services" as including, but not limited  
            to, a combination of subsidized permanent housing, intensive  
            case management, medical and mental health care, substance  
            abuse treatment, employment services, and benefits advocacy. 


          3)Allows one or more private, non-profit 501 (c) (3)  
            corporations that provide services to homeless persons for the  
            prevention of homelessness to form a JPA or enter into a joint  
            powers agreement with one or more public agencies.








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          4)Gives the JPA formed by the non-profit(s) and public agency(s)  
            all the powers under the Joint Powers Authority Act except the  
            newly formed agency will not have the power to incur debt. 


          5)Provides that the purpose of the JPA or joint powers agreement  
            is to encourage and ease the sharing of information between  
            public agencies and non-profit corporations necessary to  
            identify the most costly, frequent users of publicly funded  
            emergency services in order to provide frequent user  
            coordinated care housing services to homeless persons or to  
            prevent homelessness.


          6)Provides that the JPA formed will be governed by a board of  
            directors with the members determined by the participating  
            public agency or agencies. 


          7)Provides that the representation of private nonprofit  
            corporations on the JPA board will not be more than 50% of the  
            membership.  


          8)Provides that a housing element analysis of any special  
            housing needs may include an analysis of the need for frequent  
            user coordinated care housing services. 


          EXISTING LAW:  


          1)The Joint Exercise of Powers Act authorizes two or more public  
            agencies by agreement to jointly exercise any power common to  
            the contracting parties, including, but not limited to, the  
            authority to levy a fee, assessment, or tax, even though one  
            or more of the contracting agencies may be located outside  








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            this state (Government Code 6502). 
          2)Requires every city and county to prepare and adopt a general  
            plan containing seven mandatory elements, including a housing  
            element (Government Code Sections 65300 and 65302).

          3)Requires a jurisdiction's housing element to identify and  
            analyze existing and projected housing needs, identify  
            adequate sites with appropriate zoning to meet the housing  
            needs of all income segments of the community, and ensure that  
            regulatory systems provide opportunities for, and do not  
            unduly constrain, housing development (Government Code Section  
            65583).

          4)Requires cities and counties located within the territory of a  
            metropolitan planning organization (MPO) to revise their  
            housing elements every eight years following the adoption of  
            every other regional transportation plan.  Cities and counties  
            in rural non-MPO regions must revise their housing elements  
            every five years (Government Code 65588).

          FISCAL EFFECT:  Unknown. 


          COMMENTS: 


           Background  : The Joint Exercise of Powers Act provides the basic  
          legal authority for public entities to create and use JPAs. A  
          JPA is a new government entity created by the member agencies  
          but is legally independent from them.  Like a joint powers  
          agreement in which one agency administers the terms of the  
          agreement, a JPA exercises powers common to the member agencies  
          and those powers are outlined in the joint powers agreement.   
          Examples of areas where JPAs are commonly used include  
          groundwater management, road construction, habitat conservation,  
          airport expansion, stadium construction, mental health  
          facilities construction, educational programs, employee benefit  
          services, insurance coverage, and regional transportation  
          projects. 








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          JPAs are formed voluntarily by action of their member agencies  
          and can exercise only those powers that are common to their  
          member agencies. JPA meetings are open and are subject to the  
          Ralph M. Brown Act.  As a legally separate public agency a JPA  
          can sue or be sued, hire staff, obtain financing to build public  
          facilities, and manage properties. 


          Public agencies authorized to enter into joint powers agreements  
          include the federal government or any federal department or  
          agency, this state, another state or any state department or  
          agency, a 


          county, county board of education, county superintendent of  
          schools, city, public corporation, public district, regional  
          transportation commission of this state or another state, a  
          federally recognized Indian tribe, or any joint powers  
          authority.  Special legislation can also authorize certain  
          nongovernmental organizations to participate in joint powers  
          agreements, even though they are not public agencies. For  
          instance, to help nonprofit hospitals keep pace with changes in  
          the health care industry, the Legislature has allowed them to  
          enter joint powers agreements to provide health care services in  
          Fresno, Contra Costa, Kings, Tuolumne, San Diego, and Tulare  
          counties. Another enacted bill allowed mutual water companies to  
          enter joint powers agreements with public water agencies. 





          AB 1403 would authorize a nonprofit corporation that provides  
          services to homeless persons or for the prevention of  
          homelessness to form a JPA or enter into a joint powers  
          agreement with one or more public agencies.  The purpose of the  
          JPA or agreement would be to encourage and ease information  








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          sharing between the public agencies and nonprofit corporations  
          specifically to identify frequent users of publicly funded  
          emergency services in order to provide those users coordinated  
          care services.  


          


          Purpose of this bill  : According to the author, AB 1403 is needed  
          to ease the ability of local government agencies and interested  
          private, nonprofits to share information amongst each other to  
          identify the most costly homeless individuals and more easily  
          provide the appropriate services necessary to reduce  
          homelessness. 





           Differences between this new agency and a JPA  :  Under existing  
          law, JPAs can issue debt and the member agencies could levy  
          taxes or assessments and contribute those revenues to the JPA's  
          operation.   This bill would prohibit the new JPA formed under  
          this bill from incurring debt. This bill also provides that the  
          representation of private nonprofit corporations on the JPA  
          board will not be more than 50% of the membership.  


            Housing element provisions  :  Every local government is required  
          to prepare a housing element as part of its general plan.  The  
          housing element process starts when HCD determines the number of  
          new housing units a region is projected to need at all income  
          levels (very low-, low-, moderate-, and above-moderate income)  
          over the course of the next housing element planning period to  
          accommodate population growth and overcome existing deficiencies  
          in the housing supply.  This number is known as the regional  
          housing needs assessment (RHNA).  The Council of Governments  
          (COG) for the region, or HCD for areas with no COG, then assigns  








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          a share of the RHNA number to every city and county in the  
          region based on a variety of factors.


          In preparing its housing element, a city or county must show how  
          it plans to accommodate its share of the RHNA.  The housing  
          element must include an inventory of sites already zoned for  
          housing. A city or county is required to analyze any special  
          housing needs for the elderly, persons with disabilities, large  
          families, farmworkers, female head of households, and persons in  
          need of emergency shelter.  


          AB 1403 would require the analysis to include the needs for  
          frequent user coordinated care housing services.  Frequent user  
          coordinated care housing services is defined as housing combined  
          with other supportive services for homeless persons that the  
          city or county has identified as the most costly, frequent users  
          of publicly funded emergency services.  Supportive services  
          could include but are not limited to a combination of subsidized  
          permanent housing, intensive case management, medical and mental  
          health care, substance abuse treatment, employment services, and  
          benefits advocacy. 


           


           REGISTERED SUPPORT / OPPOSITION:




          Support


          Housing California










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          Easter Seals




          Opposition


          None on file




          Analysis Prepared by:Lisa Engel / H. & C.D. / (916) 319-2085