BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 194|
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UNFINISHED BUSINESS
Bill No: SB 194
Author: Florez (D)
Amended: 8/2/10
Vote: 21
SENATE LOCAL GOVERNMENT COMMITTEE : 3-2, 4/29/09
AYES: Wiggins, Kehoe, Wolk
NOES: Cox, Aanestad
SENATE FLOOR : 23-14, 1/28/10
AYES: Calderon, Cedillo, Corbett, Correa, DeSaulnier,
Florez, Hancock, Kehoe, Leno, Lowenthal, Maldonado,
Negrete McLeod, Oropeza, Padilla, Pavley, Price, Romero,
Simitian, Steinberg, Wiggins, Wolk, Wright, Yee
NOES: Aanestad, Ashburn, Cogdill, Cox, Denham, Dutton,
Harman, Hollingsworth, Huff, Liu, Runner, Strickland,
Walters, Wyland
NO VOTE RECORDED: Alquist, Ducheny, Vacancy
ASSEMBLY FLOOR : Not available
SUBJECT : Community Equity Investment Act of 2010
SOURCE : California Legal Assistance Foundation
DIGEST : This bill enacts the Community Equity Investment
Act of 2010 and specifies how funds received under the
federal State Community Development Block Grant Program are
expended at the local government level.
CONTINUED
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Assembly Amendments delete the version of the bill that
passed the Senate and now deals with the same subject
matter, community investment, but changed the pertaining
year from 2009 to 2010.
ANALYSIS :
Existing law
The Community Development Block Grant (CDBG) program was
established by the federal Housing and Community
Development Act of 1974 and is administered at the federal
level by the U.S. Department of Housing and Urban
Development (HUD). The primary objective of the CDBG
program is the development of viable urban communities by
providing decent housing and a suitable living environment
and by expanding economic opportunities for households of
low and moderate income. HUD allocates money directly to
large cities and metropolitan areas (CDBG entitlement
funds).
The state CDBG program, which is administered by the
Department of Housing and Community Development (HCD),
provides federal funds to cities with a population of less
than 50,000 and counties with a population in
unincorporated areas of less than 200,000 (CDBG
non-entitlement funds). In order to be eligible for
non-entitlement CDBG funds, a nonmetropolitan city or
county must submit its housing element to HCD.
This bill:
1. Makes legislative findings that there are hundreds of
disadvantaged unincorporated communities in the state
that may be isolated geographically, surrounded by the
city limits of large and medium-sized cities. Finds
that the conditions within these disadvantaged
unincorporated communities evidence a distinct lack of
public and private investment; present a threat to the
health and safety of residents; and foster economic,
social, and educational inequality.
2. Provides that unless prohibited by federal regulations,
local governments must do the following, in
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administering the federal CDBG program:
A. If a local government has a citizen advisory
committee (CAC) to advise the city council or board
of supervisors on how to spend their CDBG funds, the
local government must include representation from
disadvantaged unincorporated communities within its
jurisdiction;
B. Provide proper notice in compliance with federal
law to ensure that residents of disadvantaged
unincorporated communities, are given reasonable and
timely access to information about the CDBG program,
including the application process and technical
assistance.
C. Prioritize the needs of disadvantaged
unincorporated communities within their jurisdiction,
if there is no local government board that represents
the disadvantaged community, when determining how to
spend technical assistance funds.
Background
The CDBG program provides money to local governments for
economic and community development. Large cities and
counties, known as entitlements, receive a direct
allocation of CDBG from the federal government.
Entitlements are required to follow federal guidelines in
administering their portion of CDBG, including establishing
a citizen participation plan which must encourage the
participation of low- and moderate-income residents. Small
communities, non-entitlements, receive CDBG funds through
the State Community Development Block Grant program, which
is administered through the Department of Housing and
Community Development (HCD).
Citizen Advisory Committee (CAC) : Under existing federal
regulations, a grantee must develop and follow a detailed
plan which provides for, and encourages, citizen
participation and which emphasizes participation by persons
of low- or moderate-income, particularly residents of
predominantly low- and moderate-income neighborhoods, slum
or blighted areas, and areas in which the grantee proposes
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to use CDBG funds. The plan must: (1) provide citizens
with reasonable and timely access to local meetings,
information, and records related to the grantee's proposed
and actual use of funds, (2) provide for public hearings to
obtain citizen views and to respond to proposals and
questions at all stages of the community development
program, including at least the development of needs, the
review of proposed activities, and review of program
performance, (3) provide for timely written answers to
written complaints and grievances, and (4) identify how the
needs of non-English speaking residents will be met in the
case of public hearings where a significant number of
non-English speaking residents can be reasonably expected
to participate.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 1/14/09)
California Rural Legal Assistance Foundation (source)
California Pan-Ethnic Health Network
Center on Race
Community Water Center
Dolores Huerta Foundation
El Comite para el Bienestar de Earlimart
Ella Baker Center for Human Rights
Environmental Justice Coalition for Water
Fresno City Councilmember Henry T. Perea
Fresno County Supervisor Henry Perea
Fresno Metro Ministry
Organizacion en California de Lideres Campesinas Inc.
Planning and Conservation League
Poverty & the Environment
Seven Trees Coalition
OPPOSITION : (Verified 8/26/10)
Cities of: Downey, Lakewood, Long Beach, Roseville,
Sacramento,
South San Francisco, and Torrance
League of California Cities
ARGUMENTS IN SUPPORT : According to the California Rural
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Legal Assistance Foundation, the sponsor of this bill, over
one million Californians live in disadvantaged,
unincorporated communities. Residents of these areas often
live without the most basic features of safe and healthy
environment-services like clean water, sewage lines, storm
drains, streetlights, sidewalks, and safe housing.
Dependent on county governance for urban needs, these
communities are systematically underserved in the overall
allocation of public resources and are frequently left out
of local planning processes. This bill will help ensure
that all California communities are able to realize their
potential as livable, healthy, and economically viable
places.
ARGUMENTS IN OPPOSITION : The League of California Cities
(League) is opposed to the state conditioning funds that
are received directly from the federal government by
entitlement communities. The League believes that "the
current economic conditions suggest that now is not the
appropriate time to add further conditions to this source
of federal funding."
AGB:CTW:do 8/26/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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