BILL ANALYSIS �
SB 1039
Page 1
( Without Reference to File )
SENATE THIRD READING
SB 1039 (Steinberg)
As Amended July 2, 2012
Majority vote
SENATE VOTE : Vote not relevant
HOUSING 4-1
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|Ayes:|Torres, Atkins, Bradford, | | |
| |Cedillo | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Beth Gaines | | |
| | | | |
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SUMMARY : Revises the Governor's Reorganization Plan No. 2 (GRP 2).
Specifically, this bill :
1)Changes the name of the Business and Consumer Services Agency to
the Business, Consumer Services, and Housing Agency.
2)Requires the Department of Housing and Community Development
(HCD), the Department of Transportation, and the California
Transportation Commission (CTC) to coordinate state housing and
transportation policies and programs to help achieve state and
regional planning priorities and to maximize co-benefits of
infrastructure investments.
3)Makes other technical changes.
EXISTING LAW : The Governor's Reorganization Plan No. 2 of 2012 will
reorganize the executive branch of the state government and will
take effect on July 1, 2013.
FISCAL EFFECT : Unknown
COMMENTS : The GRP 2 proposes to transfer the housing departments
which are currently located in the Business, Transportation, and
Housing Agency into the new Business and Consumer Services Agency.
The GRP 2 also proposes to place the California Housing Finance
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Agency (CalHFA) under the Department of Housing and Community
Development (HCD).
The newly created Business and Consumer Services Agency would be
made up of the following state entities:
1)Department of Consumer Affairs (DCA);
2)Department of Housing and Community Development (HCD);
3)Department of Fair Employment and Housing (DFEH);
4)Department of Business Oversight;
5)Department of Alcoholic Beverage Control;
6)Alcohol Beverage Control Appeals Board;
7)California Horse Racing Board; and,
8)Seismic Safety Commission.
The mission of HCD and CalHFA is to finance affordable housing in
the state by making loans and grants to support the construction of
housing as well as infrastructure. HCD also has a housing policy
division that reviews and approves the housing element of cities and
assists in setting policy goals for the state.
In order to review and evaluate the GRP 2, the Assembly set up a
special committee. The committee heard several critiques of the
plan to combine HCD and CalHFA into the Business and Consumer
Services Agency:
1)The name of the agency does not include "housing" which will
create confusion for consumers who use HCD and CalHFA programs and
diminish the importance of "housing" as an important function of
the state.
2)The core function and mission of the other agencies in the
Business and Consumer Services Agency are regulatory and licensing
which HCD and CalHFA are not. CalHFA and HCD are more closely
aligned to the Transportation Department because they finance the
construction of infrastructure and housing.
3)Transportation and housing agencies should be housed in the same
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agency to ensure efficient expenditure of state funds, integration
of planning for interrelated issues and to achieve the goals of SB
375 (Steinberg), Chapter 728, Statutes of 2008, which required the
coordination of transportation and housing at the regional level
to reduce greenhouse gas emissions.
In an effort to respond to the concerns raised at the hearing, that
not including "housing" in the title of the newly formed agency,
would diminish the status of housing in the newly formed agency,
this bill would add "Housing" to the title of the newly created
Business and Consumer Services Agency. This bill would elevate
housing to the level of the other agencies.
This bill will require HCD, the Department of Transportation, and
the CTC to coordinate state housing and transportation policies and
programs to help achieve state and regional planning priorities and
to maximize co-benefits of infrastructure investments. The intent
of this provision is to require the departments and the CTC to work
together to evaluate and identify areas where state and local
policies might conflict and/or may diminish the value of the fiscal
investments being made at the local and state level.
This bill provides flexibility on how that coordination will occur
and what metrics will be used to measure coordination. The
leveraging and efficient use of fiscal resources would be an
important area for coordination among the departments and CTC.
Additionally, one likely area where efficiencies could be achieved
is through the better coordination of policies that support transit
oriented and infill development.
Analysis Prepared by : Lisa Engel / H. & C.D. / (916) 319-2085 FN:
0004343