BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 596
                                                                  Page  1

          Date of Hearing:   April 29, 2009

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                             Anna Marie Caballero, Chair
                     AB 596 (Evans) - As Amended:  April 23, 2009
           
          SUBJECT  :   Community planning grants.

           SUMMARY  :   Establishes the Community Planning Grant and Loan  
          Fund and authorizes the Strategic Growth Council (Council) to  
          expend the revenues in the Fund, upon appropriation by the  
          Legislature, to carry out the Community Planning Grant and Loan  
          Program established under this measure.  Specifically,  this  
          bill  :  

          1)Makes Legislative findings and declarations stating that local  
            planning decisions play a critical role not only in  
            implementing the state's climate change goals, but also goals  
            related to infrastructure development, open space and farmland  
            protection, affordable housing, ground and surface water  
            quality, and coastal protection. 

          2)Makes Legislative findings and declarations that the state has  
            an interest in ensuring that local planning processes are well  
            funded and have the opportunity to address new state goals.

          3)Establishes the Community Planning Grant and Loan Fund (Fund)  
            in the State Treasury. 

          4)Provides that monies may be expended by the Council, upon  
            appropriation by the Legislature, to carry out the Community  
            Planning Grant and Loan Program (Program)

          5)Requires the Council to manage and award grants and loans from  
            funds made available from the Program.

          6)Establishes, under the Council, the Local Advisory Committee  
            (LAC).

          7)Specifies that the LAC be comprised of two representatives  
            recommended by the League of California Cities, two  
            representatives recommended by the County Supervisors  
            Association of California, and the director of the Governor's  
            Office on Planning and Research (OPR).









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          8)Requires the Council to do all of the following:

             a)   Receive recommendations from LAC to ensure that  
               achieving the goals of the program is balanced with local  
               needs and autonomy;

             b)   Develop guidelines for awarding financial assistance,  
               including criteria for eligibility and additional  
               consideration;

             c)   Develop criteria for determining the amount of financial  
               assistance to be awarded;

             d)   Provide for the recovery of funds from an applicant that  
               fails to complete the project for which financial  
               assistance was awarded; and,

             e)   Provide technical assistance for application  
               preparation.

          9)Defines "community planning" as the adoption or improved  
            capacity or public engagement related to a general plan,  
            specific plan, zoning ordinance, or an amendment to any of  
            these documents by a city, county, or city and county.

          10)Requires the Council, through the Program, to expend the  
            money in the Fund to provide competitive grants and loans for  
            community planning projects that would improve the  
            sustainability and livability of California's communities by  
            reducing communities' contribution to global warming,  
            including, but not limited to, projects for any of the  
            following:

             a)   Adopting form-based codes;

             b)   Using technology to improve planning capacity;

             c)   Increasing the supply of affordable housing;

             d)   Planning for public transit improvements;

             e)   Revitalizing urban centers; or,

             f)   Establishing public engagement processes, including  
               charettes, environmental planning, and other planning  








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               processes.

          11)Requires the Council to provide an annual report to the  
            Legislature regarding the grant and loan Program.

          12)Specifies that OPR may expend up to 5% of any monies  
            appropriated to the Fund for costs in administering the  
            program.

           EXISTING LAW  :

          1)Establishes the Council that is required to take actions with  
            regard to coordinating programs of member state agencies to  
            improve air and water quality, improve natural resource  
            protection, increase the availability of affordable housing,  
            improve transportation, meet the goals of the California  
            Global Warming Solutions Act of 2006, encourage sustainable  
            land use planning, and revitalize urban and community centers  
            in a sustainable manner.

          2)Specifies that the Council consist of the Director of OPR, the  
            Secretary of the Resources Agency, the Secretary for  
            Environmental Protection, the Secretary of Business,  
            Transportation, and Housing, the Secretary of California  
            Health and Human Services, and one member of the public to be  
            appointed by the Governor.

          3)Requires the Council to manage and award grants and loans to  
            support the planning and development of sustainable  
            communities.

          4)Directs the Council to manage and award financial assistance  
            to a council of governments (COGs), regional transportation  
            planning agency, a city, county, or joint powers agency for  
            preparing, adopting, and implementing a regional plan or other  
            planning instrument consistent with a regional plan that  
            improves air and water quality, improves natural resource  
            protection, increases the availability of affordable housing,  
            improves transportation, meets the goals of AB 32, and  
            encourages sustainable land use.

          5)Specifies that financial assistance for these general and  
            regional plans shall be funded by the $90 million in  
            Proposition 84 bond funds allocated for regional and local  
            land use plans.








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          6)Directs the Council to give first priority for financial  
            assistance to applications seeking to add or enhance elements  
            of regional plans not funded with federal moneys.

          7)Directs the Council to manage and award financial assistance  
            to a city, county, or nonprofit organization for preparing,  
            planning, and implementing urban greening projects that  
            provide multiple benefits, as specified, and are not  
            mitigation actions required under existing law.

          8)Specifies that this financial assistance shall be funded by  
            the $90 million in Proposition 84 funds allocated for urban  
            greening projects.

          9)Allows up to 25% of the moneys allocated for urban greening by  
            Proposition 84 to be used to award revolving loans or grants  
            to a COG, countywide authority, metropolitan planning  
            organization, local government, or nonprofit organization for  
            the purpose of creating urban greening plans.

           FISCAL EFFECT  :  Unknown 

           COMMENTS  :   

          1)Last year, the Legislature passed SB 732 (Steinberg), Chapter  
            729, Statutes of 2008, which established the Strategic Growth  
            Council whose charge is to take actions with regard to  
            coordinating programs of member state agencies to improve air  
            and water quality, improve natural resource protection,  
            increase the availability of affordable housing, improve  
            transportation, meet the goals of the California Global  
            Warming Solutions Act of 2006, encourage sustainable land use  
            planning, and revitalize urban and community centers in a  
            sustainable manner.  SB 732 also provided funding, from  
            Proposition 84, to local governments for the purposes of  
            preparing, adopting, and implementing a regional plan that  
            improves air and water quality, improves natural resource  
            protection, increases the availability of affordable housing,  
            improves transportation, meets the goals of AB 32, and  
            encourages sustainable land use.  However, the planning monies  
            available through SB 732 are specific to the creation of  
            regional plans.  

          2)In order for a local government to stay current on the needs  








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                                                                  Page  5

            of their communities and address the state's growing planning  
            and infrastructure needs, an on going funding source for local  
            level planning is needed.  AB 596 establishes the Community  
            Planning Grant and Loan Program to provide competitive grants  
            and loans for local planning projects that are consistent with  
            the state's infrastructure, climate, affordable housing, and  
            open-space goals.  Oversight would be provided by the  
            Strategic Growth Council and an advisory committee made up of  
            local officials would provide guidance and recommendations to  
            the council to bridge the gap between state goals and the  
            planning and capacity needs of local agencies.  


          The author notes that AB 596 does not include a funding source  
            for this program in light of the current state budget  
            situation.  Instead, it sets a program in place that can be  
            funded when the money is available.

           3)TECHNICAL AMENDMENT  :  The Committee may wish to have the  
            author take the following amendment to clarify that the County  
            Supervisors Association of California is actually the  
            California State Association of Counties. 

             a)   On Page 5 line 40 strike "the County Supervisors  
               Association of California," and insert:

               "the California State Association of Counties," 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Planning Association, CA Chapter
          CA State Association of Counties
          League of CA Cities

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Katie Kolitsos / L. GOV. / (916)  
          319-3958