BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 596
                                                                  Page  1

          Date of Hearing:   May 20, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                      AB 596 (Evans) - As Amended:  May 4, 2009 

          Policy Committee:                              Local  
          GovernmentVote:5-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill establishes the Community Planning Grant and Loan Fund  
          and authorizes the Strategic Growth Council to expend the  
          revenues in the fund, upon appropriation by the Legislature, for  
          competitive grants established under this measure.  The bill  
          also:

          1)Specifies uses for the competitive grants, including (a)  
            acquisition of technology to improve planning capacity, (b)  
            increasing the supply of affordable housing, (c) planning for  
            public transit improvements, (d) revitalizing urban centers,  
            or (e) establishing public planning processes.

          2)Establishes the Local Advisory Committee, consisting of state  
            and local representatives, which would advise the counsel on  
            the implementation of the program. 

          3)Requires the council to develop guidelines for awarding  
            financial assistance and to provide an annual report to the  
            Legislature regarding the grant and loan program.

          4)Specifies that the Office of Planning and Research may expend  
            up to 5% of any monies appropriated to the Fund to administer  
            the program. Absent money appropriated to the funds, however,  
            OPR would incur unreimbursed expenses in developing criteria  
            for the program. 
           
           FISCAL EFFECT  

          1)Minor costs (less than $50,000) to OPR to develop guidelines  
            for new grant program.








                                                                  AB 596
                                                                  Page  2


          2)Upon appropriation of the Legislature, unknown, potentially  
            moderate costs (several hundred thousands to more than $1  
            million annually) to administer and award competitive grants  
            to local governments.

           COMMENTS

          1)Background  . Last year, the Legislature passed SB 732  
            (Steinberg), Chapter 729, Statutes of 2008, which established  
            the Strategic Growth Council. This council is responsible for  
            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)Purpose  . This bill is intended to provide an ongoing funding  
            source for communities to help them develop local planning  
            projects that are consistent with the state's infrastructure,  
            climate, affordable housing, and open-space goals.  The author  
            notes that the bill 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.
             
           Analysis Prepared by :    Brad Williams / APPR. / (916) 319-2081