BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 837


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          SENATE THIRD READING


          SB  
          837 (Committee on Budget and Fiscal Review)


          As Amended  June 12, 2016


          Majority vote.  Budget Bill Appropriation Takes Effect  
          Immediately


          SENATE VOTE:  Vote not relevant




          SUMMARY:  Makes necessary statutory and technical changes to  
          implement changes to the Budget Act of 2016 related to the  
          General Government and provisions.  Specifically, this bill:
          1)Establishes tax credits under the Personal Income Tax Law and  
            the Corporation Tax Law for taxable years beginning on or  
            after January 1, 2017, and before January 1, 2022, for a  
            qualified taxpayer who donates fresh fruits or fresh  
            vegetables to a food bank in California. 
          2)Establishes a credit against the net tax, defined by Revenue  
            and Taxation Code Section 17039, an amount equal to 15% of the  
            qualified value of those fresh fruits and fresh vegetables. 


          3)Creates the California Emergency Solutions Grant (ESG)  
            Program, to be administered by the California Department of  
            Housing and Community Development.  


          4)Provides that funded activities may include without limitation  
            activities eligible under the Federal ESG Program including:








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             a)   Engaging homeless individuals and families living on the  
               street
             b)   Operating homeless shelters and providing essential  
               services to shelter residents


             c)   Rapidly rehousing homeless individuals and families; and


             d)   Preventing families and individuals from becoming  
               homeless.  


             e)   Facilitate technical assistance activities to improve  
               the capacity of sub recipients and the continuum of care to  
               end homelessness.


          5)Provides that the California ESG program generally will be  
            administered by the Department in a manner consistent with the  
            Federal ESG.  However, provides the department flexibility to  
            address the purposes of the chapter or to improve the  
            effectiveness or efficiency of the California ESG program.  
          6)Allows a taxpayer, beginning on or after January 1, 2009, and  
            before January 1, 2020, that is allowed a low-income housing  
            tax credit to elect to sell all or a portion of that credit to  
            one or more unrelated parties, for each taxable year in which  
            the credit is allowed for not less than 80% of the amount of  
            the credit to be sold, and provides for the one-time resale of  
            that credit.


          7)Requires that California Tax Credit Allocation Committee to  
            enter into an agreement with the Franchise Tax Board to pay  
            any costs incurred by the Franchise Tax Board in administering  
            these provisions. 









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          8)Establishes the new Public Safety Communications (PSC) Fund;  
            specifies what monies may be included in the fund; and  
            requires any balance, which exceeds 25% of the current fiscal  
            year's budget for PSC, to be used to reduce billing service  
            rates during the following fiscal year.


          9)Establishes the California Seismic Safety Capital Access Loan  
            Program to cover losses on qualified loans by participating  
            lenders to qualified residential property owners or qualified  
            small businesses for eligible projects.  


          10)Requires the Department of Housing and Community Development  
            (HCD) to disburse money to the Habitat for Humanity of  
            California.


          11)Requires Habitat for Humanity to submit a plan to HCD within  
            60 calendar days of receiving a disbursement, for the use and  
            competitive project-specific distribution of money that are in  
            active status, and that are exempt from federal income  
            taxation as a 501(c)(3) organization, and requires an annual  
            audit of the program to be submitted to HCD. 


          12)Establishes the Director of Enterprise Risk Management and  
            Compliance within the California Housing Finance Agency  
            (CalHFA), and would require the Director to assist in the  
            implementation of processes, tools, and systems to identify,  
            assess, measure, manage, monitor and mitigate risks related to  
            the development of new programs or changes to existing law or  
            regulations that may result in new or increased risk to the  
            agency.  


          13)Establishes the Community Based Transitional Housing Program  
            to be administered by the Department of Finance, to provide  








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            grants to cities and counties to increase the supply of  
            transitional housing available to persons previously  
            incarcerated for felony and misdemeanor convictions.  


          14)Requires cities and counties to submit an application between  
            October 1, 2016, and October 1, 2018, that includes specified  
            information and to approve the issuance of a conditional use  
            permit or other local entitlement for a transitional housing  
            facility that meets specified criteria including that the  
            facility provide transitional housing for a period of not less  
            than 10 years and that it provides additional services to  
            residents. 


          15)Modifies the Roberti-Greene Home Purchase Assistance Program  
            within the California Housing Finance Agency to provide home  
            purchase assistance to low- and moderate income homebuyers to  
            qualify for the purchase of owner-occupied homes.  Provides  
            that assistance to first-time homebuyers is a priority use of  
            funds.


          16)Changes the name of the Medical Marijuana Regulation and  
            Safety Act, the Bureau of Medical Marijuana Regulation, and  
            the Medical Marijuana Regulation and Safety Act Fund to the  
            Medical Cannabis Regulation and Safety Act, the Bureau of  
            Medical Cannabis Regulation, and the Medical Cannabis  
            Regulation and Safety Act Fund. Provides additional  
            guidelines, which, among other things: 


             a)   Set forth definitions and guidelines for administration,  
               enforcement, licensing, and reporting of medical cannabis. 
             b)   Require the State Water Resources Control Board, in  
               consultation with the Department of Fish and Wildlife, to  
               adopt principles and guidelines for diversion and use of  
               water for cannabis cultivation, as specified. 









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             c)   Require an applicant for a license for indoor or outdoor  
               cultivation to identify the source of water supply, as  
               specified.


             d)   Authorize the Department of Food and Agriculture to  
               establish appellations of origin for cannabis grown in the  
               state instead of the Bureau of Medical Cannabis Regulation.  



             e)   Authorize the State Department of Public Health to  
               develop standards for the manufacturing and labeling of all  
               manufactured medical cannabis products.


          17)Requires a county elections official who receives an  
            affidavit of registration that does not include a political  
            party preference to designate the person's political party  
            preference as "Unknown" on a voter registration index and  
            would require the person to otherwise be treated as a "No  
            Party Preference" voter. 
          18)Prohibits counting a person in the total number of voters  
            registered before the election for purposes of determining  
            whether a political party qualified to participate in a  
            primary election if that person is registered by a county  
            elections official through an affidavit of registration, or by  
            the Secretary of State through motor vehicle records, and his  
            or her party preference is designated as "Unknown" because he  
            or she did not include a party preference on his or her  
            affidavit. 


          FISCAL EFFECT:  Includes a continuous appropriation for the  
          California Seismic Safety Capital Access Loan Program.


          COMMENTS:  This bill contains necessary statutory and technical  








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          changes to implement the Budget Act of 2016 related to General  
          Government.


          Analysis Prepared by:                                             
                          Jazmin Hicks and Genevieve Morelos/ BUDGET /  
                          (916) 319-2099  
                                                                 FN:  
          0003428