BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          AB 1403           Hearing Date:    6/16/2015 
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          |Author:   |Maienschein                                           |
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          |Version:  |4/7/2015                                              |
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          |Urgency:  |No                     |Fiscal:      |No              |
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          |Consultant|Alison Dinmore                                        |
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          SUBJECT:  Housing:  joint powers agreement


            DIGEST:  This bill allows one or more private, nonprofit  
          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.  

          ANALYSIS:
          
          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 the state.

          2)  Requires every city and county to prepare and adopt a  
            general plan containing seven mandatory elements, including a  
            housing element.

          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. 







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          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. 


          This bill:

          1)  Allows one or more private, nonprofit 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.  The JPA shall be  
            a public entity, but shall not have the power to incur debt.

          2)  Requires the JPA or agreement created by this bill to  
            encourage and ease the sharing of information between public  
            agencies and nonprofit corporations necessary to identify the  
            most costly, frequent users of publicly funded emergency  
            services to provide frequent user coordinated care housing  
            services to homeless persons or to prevent homelessness.

          3)  Requires the JPA or agreement created by this bill to be  
            governed by a board of directors.  The composition of the  
            board shall be determined by the participating public agency  
            or agencies.  The representation of nonprofit 501(c)(3)  
            corporations shall not exceed 50% of the board membership. 

          4)  Provides that a housing element analysis of any special  
            needs by a city or county may include an analysis of the need  
            for frequent user coordinated care housing services. 

          5)  For the purposes of Housing Element Law, defines the  
          following terms: 

             a)   "Frequent user coordinated care housing services" means  
               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. 
             b)   "Supportive services" include, but are not limited to, a  
               combination of subsidized, permanent housing, intensive  
               case management, medical and mental health care, substance  








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               abuse treatment, employment services, and benefits  
               advocacy.   

          COMMENTS:

          1)Purpose of the 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 or prevent homelessness.
          
          2)  Joint Exercise of Powers Act.  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.   
            Joint powers are exercised when the public officials of two or  
            more agencies agree through a formal joint powers agreement to  
            establish a joint approach or create another legal entity to  
            work on a common problem, fund a project, or act as a  
            representative body for a specific activity.  All manner of  
            federal, state, and local public agencies can agree to  
            exercise joint powers.  JPAs can exercise only those powers  
            that are common to their member agencies and outlined in the  
            joint powers agreement, and all meetings are open and are  
            subject to the Ralph M. Brown Act.  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.  

            Special legislation can authorize certain non-governmental  
            entities to participate in JPAs, even though they are not  
            public agencies.  For example, to help nonprofit hospitals  
            keep pace with changes in the health care industry, the  
            Legislature permitted them to enter into JPAs to provide  
            health care services in Fresno (AB 1785, Reyes, Chapter 55,  
            Statutes of 2002); Contra Costa (AB 3097, Campbell, Chapter  
            148, Statutes of 1996); Tulare, Kings, and San Diego County  
            (SB 850, Kelley, Chapter 432, Statutes of 1997); and Tuolomne  
            (AB 2717, House, Chapter 227, Statutes of 2000) counties.   
            Additionally, AB 2014 (Cortese, Chapter 250, Statutes of 1994)  
            permitted mutual water companies to enter into JPAs with water  
            agencies.  This bill would allow supportive housing providers  








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            to partner with government entities in the same way as water  
            agencies and hospitals. 

          3)  Distinction between other JPAs and this bill.  Under  
            existing law, JPAs can issue debt and member agencies can levy  
            taxes or assessments and contribute those revenues to the  
            JPAs' operations.  This bill would prohibit these new JPAs  
            from incurring debt.  Unlike other JPAs, this bill also  
            provides that representation of nonprofit corporations on the  
            JPA board of directors will not be more than 50% of the board  
            membership. 
          
          4)  Housing element provisions.  The Planning and Zoning Law  
            requires cities and counties to prepare and adopt a general  
            plan, including a housing element, to guide the future growth  
            of a community.  The general plan must contain seven elements,  
            one of which is the housing element.  Following a staggered  
            schedule, cities and counties located within the territory of  
            an MPO must revise their housing elements every eight years,  
            and cities and counties in rural non-MPO regions must revise  
            their housing elements every five years.  These five- and  
            eight-year cycles are known as the housing element planning  
            period.  

            Before each revision, each city and county is allocated its  
            fair share of housing through the regional housing needs  
            assessment (RHNA) process.  First, the Department of Housing  
            and Community Development (HCD) works with a council of  
            governments (COG) to determine the region's housing need.  A  
            COG, or HCD for areas without a COG, then allocates the  
            region's need to each city and county within the region.  The  
            RHNA allocation includes both an overall housing need number  
            and a breakdown of this overall need into four income  
            categories: above moderate-, moderate-, low-, and very  
            low-income households.  The RHNA serves as goals for the  
            development of all income groups that the jurisdictions are  
            expected to meet.  A housing element must identify adequate  
            sites with appropriate zoning to meet the city's or county's  
            share of the RHNA by income category and ensure that  
            regulatory systems provide opportunities for, and do not  
            unduly constrain, housing development.  A city or county is  
            required to analyze any special needs for the elderly, persons  
            with disabilities, large families, farmworkers, female heads  
            of households, and persons in need of emergency shelter.  









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            This bill would require the special needs analysis to include  
            the needs for frequent user coordinated care services, which  
            means housing combined with supportive services for homeless  
            persons that the city or county has identified as the most  
            costly, frequent users of publicly funded services.   
            Supportive Services could include a combination of subsidized  
            permanent supportive housing, intensive case management,  
            medical and mental health care, substance abuse treatment,  
            employment services, and benefits advocacy. 

          5)  Double-referral.  The Senate Rules Committee has referred  
            this bill to both this committee and the Governance and  
            Finance Committee.  Therefore, if the bill passes this  
            committee, it will be referred to the Governance and Finance  
            Committee.

          Assembly votes:

          Floor:74-0
          L Gov:  9-0
          H&CD:  6-0
          
          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  No    Local:  
           No


            
          POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          June 10, 2015.)
          
            SUPPORT:  

          California Coalition for Youth
          California Medical Association
          Easter Seals
          Housing California
          League of California Cities
          San Diego Housing Commission
          San Diego Regional Chamber
          
          OPPOSITION:

          None received









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