BILL ANALYSIS Ó
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Robert Hertzberg, Chair
2015 - 2016 Regular
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|Bill No: |AB 1403 |Hearing |7/1/15 |
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|Author: |Maienschein |Tax Levy: |No |
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|Version: |6/25/15 |Fiscal: |No |
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|Consultant|Weinberger |
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JOINT POWERS AGREEMENTS AND HOUSING
Allows a private, non-profit corporation that provides services
to homeless persons to enter into a joint powers agreement with
a public agency to provide housing and care services to homeless
persons who most frequently utilize public services.
Background and Existing Law
The Joint Exercise of Powers Act allows two or more public
agencies to use their powers in common if they sign a joint
powers agreement. Each public agency must independently possess
the authority to perform the activity that is to be performed
jointly pursuant to a joint powers agreement. Sometimes an
agreement creates a new, separate government called a joint
powers authority (JPA).
State law generally limits membership in JPAs to public
agencies: federal, state, and local governments. However,
legislation has authorized some types of private entities to
enter into joint powers agreements with public agencies for
specified purposes. For example, state law allows a mutual
water company to enter into a joint powers agreement with any
public agency for the purpose of jointly exercising any power
common to the contracting parties (AB 2014, Cortese, 1994).
Similarly, state law allows nonprofit hospitals to enter into
JPAs to provide health care services in Fresno County (AB 1785,
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Reyes, Chapter 55, Statutes of 2002); Contra Costa County (AB
3097, Campbell, Chapter 148, Statutes of 1996); Tulare, Kings,
and San Diego Counties (SB 850, Kelley, Chapter 432, Statutes of
1997); and Tuolumne County (AB 2717, House, Chapter 227,
Statutes of 2000).
The City of San Diego launched a program in January of 2011,
known as "Project 25," which involved the collaboration of
multiple social service providers in the City of San Diego, that
targeted 35 or more of the chronically homeless most frequent
users of emergency room visits, ambulance services, in-patient
hospitalizations, mental health out-patient and inpatient
services, jail and incarceration costs and detoxification
services. Project 25 aimed to provide permanent housing
followed closely by wraparound intensive case management. It
also focused on data collection to track the differences the
program was making in the participants' use of public services,
and included a large number of data partners, including local
hospitals, ambulance providers, county and city departments, and
local shelters. The program produced dramatic results,
significantly reducing public expenditures, emergency room
visits, in-patient medical stays, and arrests. However, one of
the issues noted by public agencies and nonprofits that
participated in Project 25 was that overcoming data sharing
concerns was a significant challenge at the start of the
program.
Some housing policy stakeholders want to allow non-profit
entities that provide services to homeless persons to enter into
JPAs to facilitate the information sharing that is necessary to
identify, the most costly homeless individuals and more easily
provide the appropriate services to reduce or prevent
homelessness.
Proposed Law
Assembly Bill 1403, until January 1, 2024, 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 must be a public entity, but must not
have the power to incur debt.
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AB 1403 requires the JPA or agreement created pursuant to the
bill's provisions to encourage and ease information sharing
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.
AB 1403 requires the JPA or agreement created pursuant to the
bill's provisions to be governed by a board of directors. The
composition of the board must be determined by the participating
public agency or agencies. The representation of nonprofit
501(c) (3) corporations cannot exceed 50% of the board
membership.
The bill 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.
For the purposes of Housing Element Law, AB 1403 defines the
following terms:
"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.
"Supportive services" 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.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill . Current law generally authorizes two or
more public agencies to form a JPA to jointly exercise common
powers of the agencies. Allowing private, nonprofits to
participate in a JPA must be legislatively authorized for
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specific purposes. Current law does not allow public agencies
and private nonprofits to form JPAs for the purpose of providing
frequent user coordinated care housing services. AB 1403
authorizes private nonprofit corporations organized pursuant to
Section 501 (c)(3) of the Internal Revenue Code, that provide
services to homeless persons or for the prevention of
homelessness, to enter into a joint powers agreement with public
agencies for the purpose of providing frequent user coordinate
care housing services. This bill is needed to ease the ability
of local government agencies and interested 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. Double-referred . The Senate Rules Committee has ordered a
double-referral of AB 1403 -- first to the Senate Transportation
& Housing Committee, which has jurisdiction over bills relating
to housing policy, and then to the Senate Governance & Finance
Committee, which has jurisdiction over bills relating to the
Joint Exercise of Powers Act. The Senate Transportation &
Housing Committee passed AB 1403 at its June 16 hearing on an
11-0 vote.
Assembly Actions
Assembly Housing & Community Development Committee: 6-0
Assembly Local Government Committee: 9-0
Assembly Floor: 74-0
Support and
Opposition (6/25/15)
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 : Unknown.
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