HomeMy WebLinkAboutBOARD STANDING COMMITTEES - 03132017 - Legislation Cte Agenda Pkt
LEGISLATION COMMITTEE
March 13, 2017
10:30 A.M.
651 Pine Street, Room 101, Martinez
Supervisor Diane Burgis, Chair
Supervisor Karen Mitchoff, Vice Chair
Agenda
Items:
Items may be taken out of order based on the business of the day and preference
of the Committee
1.Introductions
2.Public comment on any item under the jurisdiction of the Committee and not on this
agenda (speakers may be limited to three minutes).
3. APPROVE the Record of Action for the February 13, 2017 meeting with any
necessary corrections.
4. CONSIDER finding that a position of "Oppose" on the American Health Care
Act, the proposed replacement to the Affordable Care Act, is consistent with the
Board of Supervisors' adopted 2017 Federal Platform and DIRECT staff to
prepare and distribute advocacy letters as needed.
5. CONSIDER recommending to the Board of Supervisors a position of "Support"
on AB 71: Taxes: Credits: Low-Income Housing, a bill that would eliminate the
mortgage interest deduction on second homes, increase the state Low-Income
Housing Tax Credit (LIHTC) Program by $300 million, and make changes to the
LIHTC, as recommended by Kara Douglas, Department of Conservation and
Development.
6. CONSIDER recommending to the Board of Supervisors a position of "Support"
on AB 210 (Santiago): Homeless Multidisciplinary Personnel Team, a bill that
authorizes counties to establish a homeless adult, child, and family
multidisciplinary personnel team with the goal of facilitating the expedited
identification, assessment, and linkage of homeless individuals to housing and
supportive services and to allow provider agencies to share confidential
information for the purpose of coordinating such services, as recommended by
Lavonna Martin, Director of Health, Housing and Homeless Services.
7. CONSIDER recommending to the Board of Supervisors a "Support" position on
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7. CONSIDER recommending to the Board of Supervisors a "Support" position on
AB 211 (Bigelow): State Responsibility Area Fire Prevention Fees, a bill that
would require the State Board of Forestry and Fire Protection to provide an
annual report including itemized accounting of all expenditures of the fire
prevention fee to the Legislature indefinitely.
8. CONSIDER recommending to the Board of Supervisors a position of "Support"
on AB 236 (Maienschein): CalWORKs Housing Assistance, a bill that provides
that homeless assistance is available to homeless families that would be eligible for
aid under the CalWORK's program but for the fact that the only child or
children in the family are in out-of-home placement pursuant to an order of the
dependency court, if the family is receiving reunification services and the county
determines that homeless assistance is necessary for reunification to occur, as
recommended by staff of EHSD.
9. CONSIDER recommending to the Board of Supervisors a position of "Support"
on AB 435 (Thurmond): Child Care Subsidy Plans: County of Contra Costa, a bill
that would authorize the County of Contra Costa to develop and submit an
individualized county child care subsidy plan, as recommended by Camilla Rand,
Director of the Community Services Bureau.
10. CONSIDER AB 898 (Frazier): Property Taxation: Revenue Allocation and AB
899 (Frazier): Local Government Finance: Property Tax Revenue, and provide
direction to staff as needed.
11. CONSIDER recommending to the Board of Supervisors a position of "Support"
on SB 222 (Hernandez): Access to Medi-Cal for Former Inmates, a bill that would
increase access to critical health care services for Medi-Cal beneficiaries
immediately after incarceration.
12. DISCUSS the attached letter to the State Superintendent of Public Instruction
regarding school siting practices, REVISE as appropriate, and CONSIDER
recommending to the Board of Supervisors that staff be AUTHORIZED to send
the attached letter on behalf of the County.
13. REVIEW the Master List of Bills of Interest to Contra Costa County and provide
direction to staff, as needed.
14.The next meeting is currently scheduled for April 10, 2017 at 10:30 a.m., room 101, 651
Pine Street, Martinez.
15.Adjourn
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The Legislation Committee will provide reasonable accommodations for persons with disabilities
planning to attend Legislation Committee meetings. Contact the staff person listed below at least
72 hours before the meeting.
Any disclosable public records related to an open session item on a regular meeting agenda and
distributed by the County to a majority of members of the Legislation Committee less than 96
hours prior to that meeting are available for public inspection at 651 Pine Street, 10th floor,
during normal business hours.
Public comment may be submitted via electronic mail on agenda items at least one full work day
prior to the published meeting time.
For Additional Information Contact:
Lara DeLaney, Committee Staff
Phone (925) 335-1097, Fax (925) 646-1353
lara.delaney@cao.cccounty.us
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LEGISLATION COMMITTEE 3.
Meeting Date:03/13/2017
Subject:Record of Action
Submitted For: LEGISLATION COMMITTEE,
Department:County Administrator
Referral No.: 2017-13
Referral Name: Record of Action for Legislation Committee
Presenter: L. DeLaney Contact: L. DeLaney, 925-335-1097
Referral History:
County Ordinance requires that each County body keep a record of its meetings. The record need
not be verbatim; it must accurately reflect the agenda and the decisions made in the meeting. Any
handouts or printed copies of material or testimony distributed at the meeting will be attached to
the meeting record.
Referral Update:
Attached for the Committee's consideration is the Draft Record of Action for its February 13,
2017 meeting.
Recommendation(s)/Next Step(s):
APPROVE the Record of Action for the February 13, 2017 meeting with any necessary
corrections.
Fiscal Impact (if any):
None.
Attachments
Draft Record of Action
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D R A F T
LEGISLATION COMMITTEE
February 13, 2017
10:30 A.M.
651 Pine Street, Room 101, Martinez
Supervisor Diane Burgis, Chair
Supervisor Karen Mitchoff, Vice Chair
Agenda Items:Items may be taken out of order based on the business of the day and preference of the Committee
Present: Diane Burgis, Chair
Karen Mitchoff, Vice Chair
Staff Present:Lara DeLaney, Senior Deputy County Administrator
Ellen McDonnell, Reentry Coordinator & Deputy Public Defender
Devorah Levine, Assistant Director Policy and Planning Division, EHSD
Susan Jeong, Administrative Services Assistant III, EHSD
Ryan Hernandez, CCC Water Agency
Jonathan Bash, Chief of Staff, District III
Ali Saidi, Public Defender's Office
Anne O, Chief of Staff, District IV
Attendees: Carly Finkle
Zuleika Godinez
Joe Greaves
1.Introductions
After the Committee members introduced themselves and self-introductions of attendees was made,
the Chair announced that the County's state advocate, Cathy Christian, was on the conference line to
participate in the meeting.
2.Public comment on any item under the jurisdiction of the Committee and not on this
agenda (speakers may be limited to three minutes).
The Committee heard public comment about concerns related to immigration policies and a request to
support SB 54.
3.ACCEPT the report on the State Budget and CONSIDER recommending that the Board
of Supervisors send a letter to the Legislature opposing the Governor's proposal to
discontinue the Coordinated Care Initiative and eliminate the In Home Supportive
Services (IHSS) maintenance-of-effort (MOE).
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The Committee voted to send the letter to the Board of Supervisors to concur in the opposition to the
elimination of the CCI and the IHSS MOE.
AYE: Chair Diane Burgis, Vice Chair Karen Mitchoff
Passed
4.CONSIDER finding that a position of "Support" on SB 2 (Atkins): Building Homes and
Jobs Act and "Support" on SB 3 (Beall): Affordable Housing Bond Act of 2018 is
consistent with the Board of Supervisors' adopted 2017 State Platform, and directing
staff to prepare letters of support for the Chair of the Board's signature.
Supervisor Mitchoff expressed concerns about the "return to source" aspect of SB 2, not having
sufficient assurance that the funding generated in Contra Costa County would return to fund affordable
housing opportunities in Contra Costa. She requested that these concerns be communicated to our
delegation and the bill's author. No position would be recommended until that issue is further
addressed. The Committee voted unanimously to recommend to the Board a "Support" position on SB
3.
AYE: Chair Diane Burgis, Vice Chair Karen Mitchoff
Passed
5.CONSIDER finding that a position of "Support" on AB 42 (Bonta): Bail Reform, SB 10
(Hertzberg): Bail: Pretrial Release, and SB 167 (Skinner): Supplemental Security
Income & CalFresh: Preenrollment, is consistent with the Board of Supervisors' adopted
2017 State Platform and direct staff to prepare and distribute advocacy letters as needed.
The Committee voted to recommend the Board consider a position of "support" on AB 42, SB 10, and
SB 167. The Committee directed staff to place these bills on the Board's consent calendar. The
Committee requested that staff provide data to the Committee on the composition of the pre-trial
population in the County jails. The Public Defender's Reentry Coordinator will attempt to provide that
data.
AYE: Chair Diane Burgis, Vice Chair Karen Mitchoff
Passed
6.REVIEW the Master List of State Bills of Interest to Contra Costa County and provide
direction to staff, as needed.
Several additional bills were brought to the Committee and staff's attention, including AB 3, SB 6 and
AB 236, which will all be added to the Master List of Bills.
AYE: Chair Diane Burgis, Vice Chair Karen Mitchoff
Passed
7.ACCEPT the report on federal issues and provide direction to staff, as needed.
PROVIDE input to Congressman Thompson on H.R. 38 " Concealed Carry Reciprocity
Act of 2017" and H.R. 367 "Hearing Protection Act of 2017."
The Committee accepted the report on federal issues and considered Congressman Thompson's request
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The Committee accepted the report on federal issues and considered Congressman Thompson's request
for input on the two bills related to concealed carry reciprocity and silencers: H.R. 38 and H.R. 367.
They expressed similar perspective to Congressman Thompson, indicating that the bills would not help
to ensure public safety.
AYE: Chair Diane Burgis, Vice Chair Karen Mitchoff
Passed
8.The next meeting is currently scheduled for March 13, 2017 at 10:30 a.m. in Room 101,
651 Pine Street, Martinez.
9.Adjourn
The Legislation Committee will provide reasonable accommodations for persons with disabilities planning to attend Legislation Committee
meetings. Contact the staff person listed below at least 72 hours before the meeting.
Any disclosable public records related to an open session item on a regular meeting agenda and distributed by the County to a majority of
members of the Legislation Committee less than 96 hours prior to that meeting are available for public inspection at 651 Pine Street, 10th
floor, during normal business hours.
Public comment may be submitted via electronic mail on agenda items at least one full work day prior to the published meeting time.
For Additional Information Contact:
Lara DeLaney, Committee Staff
Phone (925) 335-1097, Fax (925) 646-1353
lara.delaney@cao.cccounty.us
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LEGISLATION COMMITTEE 4.
Meeting Date:03/13/2017
Subject:American Health Care Act
Submitted For: LEGISLATION COMMITTEE,
Department:County Administrator
Referral No.: 2017-11
Referral Name: American Health Care Act
Presenter: Jim Gross, Nielsen Merksamer Contact: L. DeLaney, 925-335-1097
Referral History:
Congressional House Republicans released their plan to repeal and replace the Affordable Care
Act on March 6, 2017. See Attachment A.
While there are multiple proposals, there are some common threads in the concepts and details. It
should also be noted that the recent draft of the Congressional Republican proposal is already two
weeks old and members are claiming it is already out of date.
The Board of Supervisors' adopted 2017 Federal Platform contains the following policy on
Health:
SUPPORT full funding of the Federal Medicaid program by the federal government. Medicaid
provides access to health care for people whose income and resources are insufficient to pay for
health care. It is jointly funded by Federal and State governments. The Patient Protection and
Affordable Care Act (also known as the ACA) significantly expanded both eligibility for and
federal funding of Medicaid. OPPOSE amendments to the ACA that would reduce support for
Medicaid/Medi-Cal payments to providers.
The American Health Care Act has been reviewed by Dr. William Walker, Director of Contra
Costa Health Services. Based on his analysis, he recommends that the Legislation Committee find
that the Board's existing Platform policy is sufficient to find the American Health Care Act in
opposition to adopted policy. In addition, the County Welfare Directors Association and CSAC
have sent a letter to California's congressional delegation in opposition to the American Health
Care Act. (See Attachment B.)
Referral Update:
Tom Joseph of Waterman and Associates produced this analysis for CSAC members.
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Tom Joseph of Waterman and Associates produced this analysis for CSAC members.
First ACA and then the intertwined Medicaid block grant or per-capita cap
Every leaked draft and concept paper repeals, sooner or later, the Medicaid expansion under
ACA. In the draft bill, for the 31 states which expanded Medicaid to cover uninsured individuals
and families at 138 percent of poverty, the 95% federal match for expansion would end January 1,
2020 (a little under 3 years from now). Within that, there are some drafts that would allow states
to continue to receive the enhanced match for those individuals that were enrolled by a date
certain, until they dropped off the rolls, where other drafts would stop the enhanced match for
everyone immediately. The takeaway at this point is that the enhanced match will disappear
under any ACA replacement plan, with the timing of the phase-out to be determined.
However, there is a potential interaction with the Medicaid per-capita cap proposal and where the
way in which the baseline is set may mitigate the fiscal benefits of this transition policy. And,
there is an interesting sweetener for non-expansion states that would give them a temporary
funding boost (amount not specified and at the expense of expansion states like CA) so as to not
‘penalize’ them for refusal to opt into the enhanced Medicaid benefits under the ACA.
Impacts on Taxes and Subsidies
All of the ACA drafts also end the tax penalties for individuals or small businesses who didn’t
purchase insurance after Jan 1, 2016 – the mandate would still be there since that is a policy that
can’t be touched under reconciliation, but the tax penalty would go away, essentially repealing
the mandate – clearly a concern for insurance companies which will experience adverse selection
since healthy millennials and others may choose to forego buying coverage while those who are
sick or who have pre-existing conditions would continue to sign up.
The leaked bill and other drafts repeal the premium and cost-sharing subsidies targeted to
low-to-moderate income individuals buying on the exchange. Currently, the size of the ACA
subsidies depends on the individual’s income and the price of the premiums in their locality.
Instead of subsidies, the replacement bills have tax credits – either advanceable or refundable. In
some respects they are indeed a subsidy – but under a different name and structure. There are
some significant differences, however.
Unlike the ACA, subsidies for low- to middle-income individuals and families, the tax credits
would be available to everyone purchasing private plans, regardless of income level or the price
of the premium in that locale. There would be no sliding scale for the credit tied to what the
premium would be.
The bills and concept papers also repeal all of the taxes supporting the ACA - - most of them at
the end of this year. Those taxes included increased Medicare tax on the wealthy, medical device
tax, higher taxes on investment income of wealthy individuals and host of other taxes.
In the leaked drafts, those taxes would be replaced with a tax on high value employer-provided
health insurance plans - -much like the Cadillac tax on high value plans, including a number of
plans counties have developed and we successfully have delayed until 2020 with bipartisan
support.
Individuals would have to pay taxes on the value of a plan which exceeds the 90th percentile of all
th
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group health plan benefits – so whatever the dollar difference is above the 90 th percentile that
benefit would be reported to the IRS and taxable as gross income. If it remains, how much money
it raises and what the political opposition will be by employers and taxpayers is yet unknown.
Moving on to Medicaid block grant or per capita
Those tax mechanisms and the elimination of the enhanced Medicaid match are also enmeshed
with a proposal to simultaneously cap the Medicaid program. Again, the details differ in each
draft, but the key questions and concerns remain constant when evaluating them.
A consensus appears to be emerging among congressional Republicans and some Republican
governors to change the Medicaid program from an entitlement to states to a payment mechanism
that provides states with capped amounts of funding whose amounts differ among different
groups of individuals served by the program – women and kids, persons with disabilities, and
those in long term care. Enrollees under each category would be given a set amount of funding
which would then be aggregated in a payment to the state. And, states could claim an allotment
for a newly-eligible individual.
Additionally, how and whether dollars spent on Medicaid expansion populations would be built
into the cap remains an outstanding question. Clearly as California is an expansion state, we are
arguing expansion dollars should be built into the allocation, while the 19 non-expansion states
argue that they would be disadvantaged in a new capped environment because they didn’t expand
under the ACA.
Setting aside the cost-shifts that ultimately will occur, the key questions under this approach are:
What will be the fiscal year used as a baseline to calculate the allocations for each state?
What type of inflator will be used to grow the capped federal allocation over time?
Which year is chosen as a baseline will be critical, especially for states that have expanded
coverage and the type of inflationary increase – CPI, Medical Care Index, or a blend of the two
will be really important since even under a capped environment, the first few years will not
appear to be a big deal to governors currently in office and their legislators – it’s the
compounding of small cuts over time which will be problematic for future governors and
legislatives to deal with. And, it remains an open question whether built into this base will be
revenues generated by DSH payments to hospitals or IGT’s to match federal funds.
It will be the responsibility of the Congressional Budget Office (CBO) to calculate the federal
costs and impact on the uninsured rate when analyzing the how the replacing the ACA and a
Medicaid per-capita cap interact with each other.
So what might we know in terms of impact? Both nationally and more specifically for
California?
Assuming the starting point for the GOP is total ACA repeal and block granting Medicaid, the
GOP has to build a new health system that would start with the following calculations made by
CBO which, again, is the entity they must use when determining impacts of bills.
With an ACA repeal (again this would be the baseline) according to CBO 18-32 million people
lose coverage due to loss of Medicaid and/or subsidies.
Under a Medicaid block grant – CBO estimates that an average state will experience a cut of 25%
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to its Medicaid budget averaged over the next ten years – the cuts compound and are relatively
small in the early years, but would exceed 33% in the out years.
The Centers for Disease Control and Prevention (CDC) states that the uninsured rate in Medicaid
expansion states is now 9.3% -- cut nearly in half since 2013 (18.4%), and the uninsured rate in
non-Medicaid expansion states 17.5% -- down from 22.7% since 2013 but not declining any more.
Further California-specific ACA and Medi-Cal statistics are impressive:
Since ACA law took effect, the state’s uninsured rate has been cut in half, with 91 percent of
all Californians currently insured.
Approximately 1.2 million residents have purchased healthcare plans thru Covered
California. The vast majority of these individuals – roughly 90 percent – are receiving
subsidies to help pay their premiums.
If the ACA is dismantled, $5 billion would be lost in health insurance subsidies and
cost-sharing for individuals who obtain health coverage through Covered California.
According to a study by the University of California Berkeley Labor Center, 209,000 jobs
would be lost if Congress eliminates the ACA. While the majority of job losses would be in
healthcare, other industries would be affected due to the impact on local economies. All
told, repealing the ACA could cost California’s economy over $20 billion in GDP and
another $1.5 billion in lost state and local tax revenue, according to the study.
Since the ACA was enacted, Medi-Cal enrollment has grown by 62 percent. More than 5
million have gained coverage. From 8.6 million to over 14 million, a 62 percent increase.
That includes 3.7 million due to CA taking advantage of the expansion funds.
If the Medicaid expansion is repealed, $15 billion would be cut from the state’s annual $100
billion Medi-Cal budget.
And, a Medicaid per-capita cap would financially disadvantage California much more than
other states, by locking it into low allocations due to the state’s historically low
per-beneficiary spending rate. This is due, in part, to the state’s use of managed care (10.3
million individuals are in such plans) and its low provider reimbursement rates.
Recommendation(s)/Next Step(s):
CONSIDER finding that an "Oppose" position on the American Health Care Act is consistent
with the Board of Supervisors' adopted 2017 Federal Platform and direct staff to send advocacy
letters, as needed.
Fiscal Impact (if any):
As the Legislative Analyst's Office (LAO) notes: "There is substantial federal uncertainty about
the future of the ACA including whether and which components of the ACA might be repealed,
when any repealed components of the ACA would become inoperative, and what policies could
replace those in the ACA. Some of the components most at risk for repeal include federal funding
for the ACA optional expansion, federal funding for premium subsidies and cost-sharing
reductions through Health Benefit Exchanges, enhanced federal funding for other health care
programs and services in Medicaid, and the individual and employer mandate tax penalties. If
these components are repealed without replacement, there would be significant consequences for
California, including the potential loss of substantial annual federal health care funding, the
uncertain survival of Covered California, a potentially considerable increase in the number of
uninsured Californians, and a possible disruption of the commercial health insurance market.
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Given the uncertainty around the future of the ACA and the substantial federal funding at risk, we
recommend the Legislature maintain fiscal prudence in preparation for changes at the federal
level, and consider how changes to the ACA could require a reevaluation of the state-local health
care financing relationship ."
Attachments
Attachment A
Attachment B
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COMMITTEE PRINT
Budget Reconciliation Legislative Recommendations Relating
to Repeal and Replace of the Patient Protection and Afford-
able Care Act
TITLE I—ENERGY AND 1
COMMERCE 2
Subtitle A—Patient Access to 3
Public Health Programs 4
SEC. 101. THE PREVENTION AND PUBLIC HEALTH FUND. 5
(a) IN GENERAL.—Subsection (b) of section 4002 of 6
the Patient Protection and Affordable Care Act (42 7
U.S.C. 300u–11), as amended by section 5009 of the 21st 8
Century Cures Act, is amended—9
(1) in paragraph (2), by adding ‘‘and’’ at the 10
end; 11
(2) in paragraph (3)—12
(A) by striking ‘‘each of fiscal years 2018 13
and 2019’’ and inserting ‘‘fiscal year 2018’’; 14
and 15
(B) by striking the semicolon at the end 16
and inserting a period; and 17
(3) by striking paragraphs (4) through (8). 18
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2
(b) RESCISSION OF UNOBLIGATED FUNDS.—Of the 1
funds made available by such section 4002, the unobli-2
gated balance at the end of fiscal year 2018 is rescinded. 3
SEC. 102. COMMUNITY HEALTH CENTER PROGRAM. 4
Effective as if included in the enactment of the Medi-5
care Access and CHIP Reauthorization Act of 2015 (Pub-6
lic Law 114–10, 129 Stat. 87), paragraph (1) of section 7
221(a) of such Act is amended by inserting ‘‘, and an ad-8
ditional $422,000,000 for fiscal year 2017’’ after ‘‘2017’’. 9
SEC. 103. FEDERAL PAYMENTS TO STATES. 10
(a) IN GENERAL.—Notwithstanding section 504(a), 11
1902(a)(23), 1903(a), 2002, 2005(a)(4), 2102(a)(7), or 12
2105(a)(1) of the Social Security Act (42 U.S.C. 704(a), 13
1396a(a)(23), 1396b(a), 1397a, 1397d(a)(4), 14
1397bb(a)(7), 1397ee(a)(1)), or the terms of any Med-15
icaid waiver in effect on the date of enactment of this Act 16
that is approved under section 1115 or 1915 of the Social 17
Security Act (42 U.S.C. 1315, 1396n), for the 1-year pe-18
riod beginning on the date of the enactment of this Act, 19
no Federal funds provided from a program referred to in 20
this subsection that is considered direct spending for any 21
year may be made available to a State for payments to 22
a prohibited entity, whether made directly to the prohib-23
ited entity or through a managed care organization under 24
contract with the State. 25
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Attachment A
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3
(b) DEFINITIONS.—In this section: 1
(1) PROHIBITED ENTITY.—The term ‘‘prohib-2
ited entity’’ means an entity, including its affiliates, 3
subsidiaries, successors, and clinics—4
(A) that, as of the date of enactment of 5
this Act—6
(i) is an organization described in sec-7
tion 501(c)(3) of the Internal Revenue 8
Code of 1986 and exempt from tax under 9
section 501(a) of such Code; 10
(ii) is an essential community provider 11
described in section 156.235 of title 45, 12
Code of Federal Regulations (as in effect 13
on the date of enactment of this Act), that 14
is primarily engaged in family planning 15
services, reproductive health, and related 16
medical care; and 17
(iii) provides for abortions, other than 18
an abortion—19
(I) if the pregnancy is the result 20
of an act of rape or incest; or 21
(II) in the case where a woman 22
suffers from a physical disorder, phys-23
ical injury, or physical illness that 24
would, as certified by a physician, 25
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Attachment A
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4
place the woman in danger of death 1
unless an abortion is performed, in-2
cluding a life-endangering physical 3
condition caused by or arising from 4
the pregnancy itself; and 5
(B) for which the total amount of Federal 6
and State expenditures under the Medicaid pro-7
gram under title XIX of the Social Security Act 8
in fiscal year 2014 made directly to the entity 9
and to any affiliates, subsidiaries, successors, or 10
clinics of the entity, or made to the entity and 11
to any affiliates, subsidiaries, successors, or 12
clinics of the entity as part of a nationwide 13
health care provider network, exceeded 14
$350,000,000. 15
(2) DIRECT SPENDING.—The term ‘‘direct 16
spending’’ has the meaning given that term under 17
section 250(c) of the Balanced Budget and Emer-18
gency Deficit Control Act of 1985 (2 U.S.C. 900(c)). 19
Subtitle B—Medicaid Program 20
Enhancement 21
SEC. 111. REPEAL OF MEDICAID PROVISIONS. 22
The Social Security Act is amended—23
(1) in section 1902 (42 U.S.C. 1396a)—24
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Attachment A
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5
(A) in subsection (a)(47)(B), by inserting 1
‘‘and provided that any such election shall cease 2
to be effective on January 1, 2020, and no such 3
election shall be made after that date’’ before 4
the semicolon at the end; and 5
(B) in subsection (l)(2)(C), by inserting 6
‘‘and ending December 31, 2019,’’ after ‘‘Janu-7
ary 1, 2014,’’; 8
(2) in section 1915(k)(2) (42 U.S.C. 9
1396n(k)(2)), by striking ‘‘during the period de-10
scribed in paragraph (1)’’ and inserting ‘‘on or after 11
the date referred to in paragraph (1) and before 12
January 1, 2020’’; and 13
(3) in section 1920(e) (42 U.S.C. 1396r–1(e)), 14
by striking ‘‘under clause (i)(VIII), clause (i)(IX), or 15
clause (ii)(XX) of subsection (a)(10)(A)’’ and insert-16
ing ‘‘under clause (i)(VIII) or clause (ii)(XX) of sec-17
tion 1902(a)(10)(A) before January 1, 2020, section 18
1902(a)(10)(A)(i)(IX),’’. 19
SEC. 112. REPEAL OF MEDICAID EXPANSION. 20
(a) IN GENERAL.—Section 1902(a)(10)(A) of the So-21
cial Security Act (42 U.S.C. 1396a(a)(10)(A)) is amend-22
ed—23
(1) in clause (i)(VIII), by inserting ‘‘at the op-24
tion of a State,’’ after ‘‘January 1, 2014,’’; and 25
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(2) in clause (ii)(XX), by inserting ‘‘and ending 1
December 31, 2019,’’ after ‘‘2014,’’. 2
(b) TERMINATION OF EFMAP FOR NEW ACA EX-3
PANSION ENROLLEES.—Section 1905 of the Social Secu-4
rity Act (42 U.S.C. 1396d) is amended—5
(1) in subsection (y)(1), in the matter preceding 6
subparagraph (A), by striking ‘‘with respect to’’ and 7
all that follows through ‘‘shall be’’ and inserting 8
‘‘with respect to amounts expended before January 9
1, 2020, by such State for medical assistance for 10
newly eligible individuals described in subclause 11
(VIII) of section 1902(a)(10)(A)(i) who are enrolled 12
under the State plan (or a waiver of the plan) before 13
such date and with respect to amounts expended 14
after such date by such State for medical assistance 15
for individuals described in such subclause who were 16
enrolled under such plan (or waiver of such plan) as 17
of December 31, 2019, and who do not have a break 18
in eligibility for medical assistance under such State 19
plan (or waiver) for more than one month after such 20
date, shall be’’; and 21
(2) in subsection (z)(2)—22
(A) in subparagraph (A), by striking 23
‘‘medical assistance for individuals’’ and all that 24
follows through ‘‘shall be’’ and inserting 25
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‘‘amounts expended before January 1, 2020, by 1
such State for medical assistance for individuals 2
described in section 1902(a)(10)(A)(i)(VIII) 3
who are nonpregnant childless adults with re-4
spect to whom the State may require enrollment 5
in benchmark coverage under section 1937 and 6
who are enrolled under the State plan (or a 7
waiver of the plan) before such date and with 8
respect to amounts expended after such date by 9
such State for medical assistance for individuals 10
described in such section, who are nonpregnant 11
childless adults with respect to whom the State 12
may require enrollment in benchmark coverage 13
under section 1937, who were enrolled under 14
such plan (or waiver of such plan) as of Decem-15
ber 31, 2019, and who do not have a break in 16
eligibility for medical assistance under such 17
State plan (or waiver) for more than one month 18
after such date, shall be’’ ; and 19
(B) in subparagraph (B)(ii)—20
(i) in subclause (III), by adding 21
‘‘and’’ at the end; and 22
(ii) by striking subclauses (IV), (V), 23
and (VI) and inserting the following new 24
subclause: 25
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‘‘(IV) 2017 and each subsequent year is 80 1
percent.’’. 2
(c) SUNSET OF ESSENTIAL HEALTH BENEFITS RE-3
QUIREMENT.—Section 1937(b)(5) of the Social Security 4
Act (42 U.S.C. 1396u–7(b)(5)) is amended by adding at 5
the end the following: ‘‘This paragraph shall not apply 6
after December 31, 2019.’’. 7
SEC. 113. ELIMINATION OF DSH CUTS. 8
Section 1923(f) of the Social Security Act (42 U.S.C. 9
1396r–4(f)) is amended—10
(1) in paragraph (7)—11
(A) in subparagraph (A)—12
(i) in clause (i)—13
(I) in the matter preceding sub-14
clause (I), by striking ‘‘2025’’ and in-15
serting ‘‘2019’’; and 16
(ii) in clause (ii)—17
(I) in subclause (I), by adding 18
‘‘and’’ at the end; 19
(II) in subclause (II), by striking 20
the semicolon at the end and inserting 21
a period; and 22
(III) by striking subclauses (III) 23
through (VIII); and 24
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(B) by adding at the end the following new 1
subparagraph: 2
‘‘(C) EXEMPTION FROM EXEMPTION FOR 3
NON-EXPANSION STATES.—4
‘‘(i) IN GENERAL.—In the case of a 5
State that is a non-expansion State for a 6
fiscal year, subparagraph (A)(i) shall not 7
apply to the DSH allotment for such State 8
and fiscal year. 9
‘‘(ii) NO CHANGE IN REDUCTION FOR 10
EXPANSION STATES.—In the case of a 11
State that is an expansion State for a fis-12
cal year, the DSH allotment for such State 13
and fiscal year shall be determined as if 14
clause (i) did not apply. 15
‘‘(iii) NON-EXPANSION AND EXPAN-16
SION STATE DEFINED.—17
‘‘(I) The term ‘expansion State’ 18
means with respect to a fiscal year, a 19
State that, as of July 1 of the pre-20
ceding fiscal year, provides for eligi-21
bility under clause (i)(VIII) or 22
(ii)(XX) of section 1902(a)(10)(A) for 23
medical assistance under this title (or 24
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a waiver of the State plan approved 1
under section 1115). 2
‘‘(II) The term ‘non-expansion 3
State’ means, with respect to a fiscal 4
year, a State that is not an expansion 5
State.’’; and 6
(2) in paragraph (8), by striking ‘‘fiscal year 7
2025’’ and inserting ‘‘fiscal year 2019’’. 8
SEC. 114. REDUCING STATE MEDICAID COSTS. 9
(a) LETTING STATES DISENROLL HIGH DOLLAR 10
LOTTERY WINNERS.—11
(1) IN GENERAL.—Section 1902 of the Social 12
Security Act (42 U.S.C. 1396a) is amended—13
(A) in subsection (a)(17), by striking 14
‘‘(e)(14), (e)(14)’’ and inserting ‘‘(e)(14), 15
(e)(15)’’; and 16
(B) in subsection (e)—17
(i) in paragraph (14) (relating to 18
modified adjusted gross income), by adding 19
at the end the following new subparagraph: 20
‘‘(J) TREATMENT OF CERTAIN LOTTERY 21
WINNINGS AND INCOME RECEIVED AS A LUMP 22
SUM.—23
‘‘(i) IN GENERAL.—In the case of an 24
individual who is the recipient of qualified 25
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lottery winnings (pursuant to lotteries oc-1
curring on or after January 1, 2020) or 2
qualified lump sum income (received on or 3
after such date) and whose eligibility for 4
medical assistance is determined based on 5
the application of modified adjusted gross 6
income under subparagraph (A), a State 7
shall, in determining such eligibility, in-8
clude such winnings or income (as applica-9
ble) as income received—10
‘‘(I) in the month in which such 11
winnings or income (as applicable) is 12
received if the amount of such 13
winnings or income is less than 14
$80,000; 15
‘‘(II) over a period of 2 months 16
if the amount of such winnings or in-17
come (as applicable) is greater than or 18
equal to $80,000 but less than 19
$90,000; 20
‘‘(III) over a period of 3 months 21
if the amount of such winnings or in-22
come (as applicable) is greater than or 23
equal to $90,000 but less than 24
$100,000; and 25
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‘‘(IV) over a period of 3 months 1
plus 1 additional month for each in-2
crement of $10,000 of such winnings 3
or income (as applicable) received, not 4
to exceed a period of 120 months (for 5
winnings or income of $1,260,000 or 6
more), if the amount of such winnings 7
or income is greater than or equal to 8
$100,000. 9
‘‘(ii) COUNTING IN EQUAL INSTALL-10
MENTS.—For purposes of subclauses (II), 11
(III), and (IV) of clause (i), winnings or 12
income to which such subclause applies 13
shall be counted in equal monthly install-14
ments over the period of months specified 15
under such subclause. 16
‘‘(iii) HARDSHIP EXEMPTION.—An in-17
dividual whose income, by application of 18
clause (i), exceeds the applicable eligibility 19
threshold established by the State, may 20
continue to be eligible for medical assist-21
ance to the extent that the State deter-22
mines, under procedures established by the 23
State under the State plan (or in the case 24
of a waiver of the plan under section 1115, 25
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incorporated in such waiver), or as other-1
wise established by such State in accord-2
ance with such standards as may be speci-3
fied by the Secretary, that the denial of eli-4
gibility of the individual would cause an 5
undue medical or financial hardship as de-6
termined on the basis of criteria estab-7
lished by the Secretary. 8
‘‘(iv) NOTIFICATIONS AND ASSIST-9
ANCE REQUIRED IN CASE OF LOSS OF ELI-10
GIBILITY.—A State shall, with respect to 11
an individual who loses eligibility for med-12
ical assistance under the State plan (or a 13
waiver of such plan) by reason of clause 14
(i), before the date on which the individual 15
loses such eligibility, inform the individual 16
of the date on which the individual would 17
no longer be considered ineligible by reason 18
of such clause to receive medical assistance 19
under the State plan or under any waiver 20
of such plan and the date on which the in-21
dividual would be eligible to reapply to re-22
ceive such medical assistance. 23
‘‘(v) QUALIFIED LOTTERY WINNINGS 24
DEFINED.—In this subparagraph, the term 25
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‘qualified lottery winnings’ means winnings 1
from a sweepstakes, lottery, or pool de-2
scribed in paragraph (3) of section 4402 of 3
the Internal Revenue Code of 1986 or a 4
lottery operated by a multistate or multi-5
jurisdictional lottery association, including 6
amounts awarded as a lump sum payment. 7
‘‘(vi) QUALIFIED LUMP SUM INCOME 8
DEFINED.—In this subparagraph, the term 9
‘qualified lump sum income’ means income 10
that is received as a lump sum from one 11
of the following sources: 12
‘‘(I) Monetary winnings from 13
gambling (as defined by the Secretary 14
and including monetary winnings from 15
gambling activities described in sec-16
tion 1955(b)(4) of title 18, United 17
States Code). 18
‘‘(II) Income received as liquid 19
assets from the estate (as defined in 20
section 1917(b)(4)) of a deceased in-21
dividual.’’; and 22
(ii) by striking ‘‘(14) EXCLUSION’’ 23
and inserting ‘‘(15) EXCLUSION’’. 24
(2) RULES OF CONSTRUCTION.—25
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(A) INTERCEPTION OF LOTTERY WINNINGS 1
ALLOWED.—Nothing in the amendment made 2
by paragraph (1)(B)(i) shall be construed as 3
preventing a State from intercepting the State 4
lottery winnings awarded to an individual in the 5
State to recover amounts paid by the State 6
under the State Medicaid plan under title XIX 7
of the Social Security Act for medical assistance 8
furnished to the individual. 9
(B) APPLICABILITY LIMITED TO ELIGI-10
BILITY OF RECIPIENT OF LOTTERY WINNINGS 11
OR LUMP SUM INCOME.—Nothing in the amend-12
ment made by paragraph (1)(B)(i) shall be con-13
strued, with respect to a determination of 14
household income for purposes of a determina-15
tion of eligibility for medical assistance under 16
the State plan under title XIX of the Social Se-17
curity Act (42 U.S.C. 1396 et seq.) (or a waiver 18
of such plan) made by applying modified ad-19
justed gross income under subparagraph (A) of 20
section 1902(e)(14) of such Act (42 U.S.C. 21
1396a(e)(14)), as limiting the eligibility for 22
such medical assistance of any individual that is 23
a member of the household other than the indi-24
vidual (or the individual’s spouse) who received 25
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qualified lottery winnings or qualified lump-sum 1
income (as defined in subparagraph (J) of such 2
section 1902(e)(14), as added by paragraph 3
(1)(B)(i) of this subsection). 4
(b) REPEAL OF RETROACTIVE ELIGIBILITY.—5
(1) IN GENERAL.—6
(A) STATE PLAN REQUIREMENTS.—Section 7
1902(a)(34) of the Social Security Act (42 8
U.S.C. 1396a(a)(34)) is amended by striking 9
‘‘in or after the third month before the month 10
in which he made application’’ and inserting ‘‘in 11
or after the month in which the individual made 12
application’’. 13
(B) DEFINITION OF MEDICAL ASSIST-14
ANCE.—Section 1905(a) of the Social Security 15
Act (42 U.S.C. 1396d(a)) is amended by strik-16
ing ‘‘in or after the third month before the 17
month in which the recipient makes application 18
for assistance’’ and inserting ‘‘in or after the 19
month in which the recipient makes application 20
for assistance’’. 21
(2) EFFECTIVE DATE.—The amendments made 22
by paragraph (1) shall apply to medical assistance 23
with respect to individuals whose eligibility for such 24
assistance is based on an application for such assist-25
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ance made (or deemed to be made) on or after Octo-1
ber 1, 2017. 2
(c) ENSURING STATES ARE NOT FORCED TO PAY 3
FOR INDIVIDUALS INELIGIBLE FOR THE PROGRAM.—4
(1) IN GENERAL.—Section 1137(f) of the Social 5
Security Act (42 U.S.C. 1320b–7(f)) is amended—6
(A) by striking ‘‘Subsections (a)(1) and 7
(d)’’ and inserting ‘‘(1) Subsections (a)(1) and 8
(d)’’; and 9
(B) by adding at the end the following new 10
paragraph: 11
‘‘(2)(A) Subparagraphs (A) and (B)(ii) of subsection 12
(d)(4) shall not apply in the case of an initial determina-13
tion made on or after the date that is 6 months after the 14
date of the enactment of this paragraph with respect to 15
the eligibility of an alien described in subparagraph (B) 16
for benefits under the program listed in subsection (b)(2). 17
‘‘(B) An alien described in this subparagraph is an 18
individual declaring to be a citizen or national of the 19
United States with respect to whom a State, in accordance 20
with section 1902(a)(46)(B), requires—21
‘‘(i) pursuant to 1902(ee), the submission of a 22
social security number; or 23
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‘‘(ii) pursuant to 1903(x), the presentation of 1
satisfactory documentary evidence of citizenship or 2
nationality.’’. 3
(2) NO PAYMENTS FOR MEDICAL ASSISTANCE 4
PROVIDED BEFORE PRESENTATION OF EVIDENCE.—5
Section 1903(i)(22) of the Social Security Act (42 6
U.S.C. 1396b(i)(22)) is amended—7
(A) by striking ‘‘with respect to amounts 8
expended’’ and inserting ‘‘(A) with respect to 9
amounts expended’’; 10
(B) by inserting ‘‘and’’ at the end; and 11
(C) by adding at the end the following new 12
subparagraph: 13
‘‘(B) in the case of a State that elects to pro-14
vide a reasonable period to present satisfactory doc-15
umentary evidence of such citizenship or nationality 16
pursuant to paragraph (2)(C) of section 1902(ee) or 17
paragraph (4) of subsection (x) of this section, for 18
amounts expended for medical assistance for such an 19
individual (other than an individual described in 20
paragraph (2) of such subsection (x)) during such 21
period;’’. 22
(3) CONFORMING AMENDMENTS.—Section 23
1137(d)(4) of the Social Security Act (42 U.S.C. 24
1320b–7(d)(4)) is amended—25
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(A) in subparagraph (A), in the matter 1
preceding clause (i), by inserting ‘‘subject to 2
subsection (f)(2),’’ before ‘‘the State’’; and 3
(B) in subparagraph (B)(ii), by inserting 4
‘‘subject to subsection (f)(2),’’ before ‘‘pending 5
such verification’’. 6
(d) UPDATING ALLOWABLE HOME EQUITY LIMITS 7
IN MEDICAID.—8
(1) IN GENERAL.—Section 1917(f)(1) of the 9
Social Security Act (42 U.S.C. 1396p(f)(1)) is 10
amended—11
(A) in subparagraph (A), by striking ‘‘sub-12
paragraphs (B) and (C)’’ and inserting ‘‘sub-13
paragraph (B)’’; 14
(B) by striking subparagraph (B); 15
(C) by redesignating subparagraph (C) as 16
subparagraph (B); and 17
(D) in subparagraph (B), as so redesig-18
nated, by striking ‘‘dollar amounts specified in 19
this paragraph’’ and inserting ‘‘dollar amount 20
specified in subparagraph (A)’’. 21
(2) EFFECTIVE DATE.—22
(A) IN GENERAL.—The amendments made 23
by paragraph (1) shall apply with respect to eli-24
gibility determinations made after the date that 25
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is 180 days after the date of the enactment of 1
this section. 2
(B) EXCEPTION FOR STATE LEGISLA-3
TION.—In the case of a State plan under title 4
XIX of the Social Security Act that the Sec-5
retary of Health and Human Services deter-6
mines requires State legislation in order for the 7
respective plan to meet any requirement im-8
posed by amendments made by this subsection, 9
the respective plan shall not be regarded as fail-10
ing to comply with the requirements of such 11
title solely on the basis of its failure to meet 12
such an additional requirement before the first 13
day of the first calendar quarter beginning after 14
the close of the first regular session of the 15
State legislature that begins after the date of 16
the enactment of this Act. For purposes of the 17
previous sentence, in the case of a State that 18
has a 2-year legislative session, each year of the 19
session shall be considered to be a separate reg-20
ular session of the State legislature. 21
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SEC. 115. SAFETY NET FUNDING FOR NON-EXPANSION 1
STATES. 2
Title XIX of the Social Security Act is amended by 3
inserting after section 1923 (42 U.S.C. 1396r–4) the fol-4
lowing new section: 5
‘‘ADJUSTMENT IN PAYMENT FOR SERVICES OF SAFETY 6
NET PROVIDERS IN NON-EXPANSION STATES 7
‘‘SEC. 1923A. (a) IN GENERAL.—Subject to the limi-8
tations of this section, for each year during the period be-9
ginning with 2018 and ending with 2021, each State that 10
is one of the 50 States or the District of Columbia and 11
that, as of July 1 of the preceding year, did not provide 12
for eligibility under clause (i)(VIII) or (ii)(XX) of section 13
1902(a)(10)(A) for medical assistance under this title (or 14
a waiver of the State plan approved under section 1115) 15
(each such State or District referred to in this section for 16
the year as a ‘non-expansion State’) may adjust the pay-17
ment amounts otherwise provided under the State plan 18
under this title (or a waiver of such plan) to health care 19
providers that provide health care services to individuals 20
enrolled under this title (in this section referred to as ‘eli-21
gible providers’). 22
‘‘(b) INCREASE IN APPLICABLE FMAP.—Notwith-23
standing section 1905(b), the Federal medical assistance 24
percentage applicable with respect to expenditures attrib-25
utable to a payment adjustment under subsection (a) for 26
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which payment is permitted under subsection (c) shall be 1
equal to—2
‘‘(1) 100 percent for calendar quarters in cal-3
endar years 2018, 2019, 2020, and 2021; and 4
‘‘(2) 95 percent for calendar quarters in cal-5
endar year 2022. 6
‘‘(c) LIMITATIONS; DISQUALIFICATION OF STATES.—7
‘‘(1) ANNUAL ALLOTMENT LIMITATION.—Pay-8
ment under section 1903(a) shall not be made to a 9
State with respect to any payment adjustment made 10
under this section for all calendar quarters in a year 11
in excess of the $2,000,000,000 multiplied by the 12
ratio of—13
‘‘(A) the population of the State with in-14
come below 138 percent of the poverty line in 15
2015 (as determined based the table entitled 16
‘Health Insurance Coverage Status and Type 17
by Ratio of Income to Poverty Level in the Past 18
12 Months by Age’ for the universe of the civil-19
ian noninstitutionalized population for whom 20
poverty status is determined based on the 2015 21
American Community Survey 1-Year Estimates, 22
as published by the Bureau of the Census), to 23
‘‘(B) the sum of the populations under 24
subparagraph (A) for all non-expansion States. 25
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‘‘(2) LIMITATION ON PAYMENT ADJUSTMENT 1
AMOUNT FOR INDIVIDUAL PROVIDERS.—The amount 2
of a payment adjustment under subsection (a) for an 3
eligible provider may not exceed the provider’s costs 4
incurred in furnishing health care services (as deter-5
mined by the Secretary and net of payments under 6
this title, other than under this section, and by unin-7
sured patients) to individuals who either are eligible 8
for medical assistance under the State plan (or 9
under a waiver of such plan) or have no health in-10
surance or health plan coverage for such services. 11
‘‘(d) DISQUALIFICATION IN CASE OF STATE COV-12
ERAGE EXPANSION.—If a State is a non-expansion for a 13
year and provides eligibility for medical assistance de-14
scribed in subsection (a) during the year, the State shall 15
no longer be treated as a non-expansion State under this 16
section for any subsequent years.’’. 17
SEC. 116. PROVIDING INCENTIVES FOR INCREASED FRE-18
QUENCY OF ELIGIBILITY REDETERMINA-19
TIONS. 20
(a) IN GENERAL.—Section 1902(e)(14) of the Social 21
Security Act (42 U.S.C. 1396a(e)(14)) (relating to modi-22
fied adjusted gross income), as amended by section 23
114(a)(1), is further amended by adding at the end the 24
following: 25
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‘‘(K) FREQUENCY OF ELIGIBILITY REDE-1
TERMINATIONS.—Beginning on October 1, 2
2017, and notwithstanding subparagraph (H), 3
in the case of an individual whose eligibility for 4
medical assistance under the State plan under 5
this title (or a waiver of such plan) is deter-6
mined based on the application of modified ad-7
justed gross income under subparagraph (A) 8
and who is so eligible on the basis of clause 9
(i)(VIII) or clause (ii)(XX) of subsection 10
(a)(10)(A), a State shall redetermine such indi-11
vidual’s eligibility for such medical assistance 12
no less frequently than once every 6 months.’’. 13
(b) CIVIL MONETARY PENALTY.—Section 1128A(a) 14
of the Social Security Act (42 U.S.C. 1320a–7(a)) is 15
amended, in the matter following paragraph (10), by strik-16
ing ‘‘(or, in cases under paragraph (3)’’ and inserting the 17
following: ‘‘(or, in cases under paragraph (1) in which an 18
individual was knowingly enrolled on or after October 1, 19
2017, pursuant to section 1902(a)(10)(A)(i)(VIII) for 20
medical assistance under the State plan under title XIX 21
whose income does not meet the income threshold specified 22
in such section or in which a claim was presented on or 23
after October 1, 2017, as a claim for an item or service 24
furnished to an individual described in such section but 25
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whose enrollment under such State plan is not made on 1
the basis of such individual’s meeting the income threshold 2
specified in such section, $20,000 for each such individual 3
or claim; in cases under paragraph (3)’’. 4
(c) INCREASED ADMINISTRATIVE MATCHING PER-5
CENTAGE.—For each calendar quarter during the period 6
beginning on October 1, 2017, and ending on December 7
31, 2019, the Federal matching percentage otherwise ap-8
plicable under section 1903(a) of the Social Security Act 9
(42 U.S.C. 1396b(a)) with respect to State expenditures 10
during such quarter that are attributable to meeting the 11
requirement of section 1902(e)(14) (relating to determina-12
tions of eligibility using modified adjusted gross income) 13
of such Act shall be increased by 5 percentage points with 14
respect to State expenditures attributable to activities car-15
ried out by the State (and approved by the Secretary) to 16
increase the frequency of eligibility redeterminations re-17
quired by subparagraph (K) of such section (relating to 18
eligibility redeterminations made on a 6-month basis) (as 19
added by subsection (a)). 20
Subtitle C—Per Capita Allotment 21
for Medical Assistance 22
SEC. 121. PER CAPITA ALLOTMENT FOR MEDICAL ASSIST-23
ANCE. 24
Title XIX of the Social Security Act is amended—25
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(1) in section 1903 (42 U.S.C. 1396b)—1
(A) in subsection (a), in the matter before 2
paragraph (1), by inserting ‘‘and section 3
1903A(a)’’ after ‘‘except as otherwise provided 4
in this section’’; and 5
(B) in subsection (d)(1), by striking ‘‘to 6
which’’ and inserting ‘‘to which, subject to sec-7
tion 1903A(a),’’; and 8
(2) by inserting after such section 1903 the fol-9
lowing new section: 10
‘‘SEC. 1903A. PER CAPITA-BASED CAP ON PAYMENTS FOR 11
MEDICAL ASSISTANCE. 12
‘‘(a) APPLICATION OF PER CAPITA CAP ON PAY-13
MENTS FOR MEDICAL ASSISTANCE EXPENDITURES.—14
‘‘(1) IN GENERAL.—If a State has excess ag-15
gregate medical assistance expenditures (as defined 16
in paragraph (2)) for a fiscal year (beginning with 17
fiscal year 2020), the amount of payment to the 18
State under section 1903(a)(1) for each quarter in 19
the following fiscal year shall be reduced by 1⁄4 of 20
the excess aggregate medical assistance payments 21
(as defined in paragraph (3)) for that previous fiscal 22
year. In this section, the term ‘State’ means only the 23
50 States and the District of Columbia. 24
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‘‘(2) EXCESS AGGREGATE MEDICAL ASSISTANCE 1
EXPENDITURES.—In this subsection, the term ‘ex-2
cess aggregate medical assistance expenditures’ 3
means, for a State for a fiscal year, the amount (if 4
any) by which—5
‘‘(A) the amount of the adjusted total med-6
ical assistance expenditures (as defined in sub-7
section (b)(1)) for the State and fiscal year; ex-8
ceeds 9
‘‘(B) the amount of the target total med-10
ical assistance expenditures (as defined in sub-11
section (c)) for the State and fiscal year. 12
‘‘(3) EXCESS AGGREGATE MEDICAL ASSISTANCE 13
PAYMENTS.—In this subsection, the term ‘excess ag-14
gregate medical assistance payments’ means, for a 15
State for a fiscal year, the product of—16
‘‘(A) the excess aggregate medical assist-17
ance expenditures (as defined in paragraph (2)) 18
for the State for the fiscal year; and 19
‘‘(B) the Federal average medical assist-20
ance matching percentage (as defined in para-21
graph (4)) for the State for the fiscal year. 22
‘‘(4) FEDERAL AVERAGE MEDICAL ASSISTANCE 23
MATCHING PERCENTAGE.—In this subsection, the 24
term ‘Federal average medical assistance matching 25
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percentage’ means, for a State for a fiscal year, the 1
ratio (expressed as a percentage) of—2
‘‘(A) the amount of the Federal payments 3
that would be made to the State under section 4
1903(a)(1) for medical assistance expenditures 5
for calendar quarters in the fiscal year if para-6
graph (1) did not apply; to 7
‘‘(B) the amount of the medical assistance 8
expenditures for the State and fiscal year. 9
‘‘(b) ADJUSTED TOTAL MEDICAL ASSISTANCE EX-10
PENDITURES.—Subject to subsection (g), the following 11
shall apply: 12
‘‘(1) IN GENERAL.—In this section, the term 13
‘adjusted total medical assistance expenditures’ 14
means, for a State—15
‘‘(A) for fiscal year 2016, the product of—16
‘‘(i) the amount of the medical assist-17
ance expenditures (as defined in paragraph 18
(2)) for the State and fiscal year, reduced 19
by the amount of any excluded expendi-20
tures (as defined in paragraph (3)) for the 21
State and fiscal year otherwise included in 22
such medical assistance expenditures; and 23
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‘‘(ii) the 1903A FY16 population per-1
centage (as defined in paragraph (4)) for 2
the State; or 3
‘‘(B) for fiscal year 2019 or a subsequent 4
fiscal year, the amount of the medical assist-5
ance expenditures (as defined in paragraph (2)) 6
for the State and fiscal year that is attributable 7
to 1903A enrollees, reduced by the amount of 8
any excluded expenditures (as defined in para-9
graph (3)) for the State and fiscal year other-10
wise included in such medical assistance ex-11
penditures. 12
‘‘(2) MEDICAL ASSISTANCE EXPENDITURES.—13
In this section, the term ‘medical assistance expendi-14
tures’ means, for a State and fiscal year, the med-15
ical assistance payments as reported by medical 16
service category on the Form CMS-64 quarterly ex-17
pense report (or successor to such a report form, 18
and including enrollment data and subsequent ad-19
justments to any such report, in this section referred 20
to collectively as a ‘CMS-64 report’) that directly re-21
sult from providing medical assistance under the 22
State plan (including under a waiver of the plan) for 23
which payment is (or may otherwise be) made pur-24
suant to section 1903(a)(1). 25
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‘‘(3) EXCLUDED EXPENDITURES.—In this sec-1
tion, the term ‘excluded expenditures’ means, for a 2
State and fiscal year, expenditures under the State 3
plan (or under a waiver of such plan) that are at-4
tributable to any of the following: 5
‘‘(A) DSH.—Payment adjustments made 6
for disproportionate share hospitals under sec-7
tion 1923. 8
‘‘(B) MEDICARE COST-SHARING.—Pay-9
ments made for medicare cost-sharing (as de-10
fined in section 1905(p)(3)). 11
‘‘(C) SAFETY NET PROVIDER PAYMENT AD-12
JUSTMENTS IN NON-EXPANSION STATES.—Pay-13
ment adjustments under subsection (a) of sec-14
tion 1923A for which payment is permitted 15
under subsection (c) of such section. 16
‘‘(4) 1903A FY 16 POPULATION PERCENTAGE.—17
In this subsection, the term ‘1903A FY16 popu-18
lation percentage’ means, for a State, the Sec-19
retary’s calculation of the percentage of the actual 20
medical assistance expenditures, as reported by the 21
State on the CMS–64 reports for calendar quarters 22
in fiscal year 2016, that are attributable to 1903A 23
enrollees (as defined in subsection (e)(1)). 24
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‘‘(c) TARGET TOTAL MEDICAL ASSISTANCE EXPEND-1
ITURES.—2
‘‘(1) CALCULATION.—In this section, the term 3
‘target total medical assistance expenditures’ means, 4
for a State for a fiscal year, the sum of the prod-5
ucts, for each of the 1903A enrollee categories (as 6
defined in subsection (e)(2)), of—7
‘‘(A) the target per capita medical assist-8
ance expenditures (as defined in paragraph (2)) 9
for the enrollee category, State, and fiscal year; 10
and 11
‘‘(B) the number of 1903A enrollees for 12
such enrollee category, State, and fiscal year, as 13
determined under subsection (e)(4). 14
‘‘(2) TARGET PER CAPITA MEDICAL ASSISTANCE 15
EXPENDITURES.—In this subsection, the term ‘tar-16
get per capita medical assistance expenditures’ 17
means, for a 1903A enrollee category, State, and a 18
fiscal year, an amount equal to—19
‘‘(A) the provisional FY19 target per cap-20
ita amount for such enrollee category (as cal-21
culated under subsection (d)(5)) for the State; 22
increased by 23
‘‘(B) the percentage increase in the med-24
ical care component of the consumer price index 25
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for all urban consumers (U.S. city average) 1
from September of 2019 to September of the 2
fiscal year involved. 3
‘‘(d) CALCULATION OF FY19 PROVISIONAL TARGET 4
AMOUNT FOR EACH 1903A ENROLLEE CATEGORY.—Sub-5
ject to subsection (g), the following shall apply: 6
‘‘(1) CALCULATION OF BASE AMOUNTS FOR FIS-7
CAL YEAR 2016.—For each State the Secretary shall 8
calculate (and provide notice to the State not later 9
than April 1, 2018, of) the following: 10
‘‘(A) The amount of the adjusted total 11
medical assistance expenditures (as defined in 12
subsection (b)(1)) for the State for fiscal year 13
2016. 14
‘‘(B) The number of 1903A enrollees for 15
the State in fiscal year 2016 (as determined 16
under subsection (e)(4)). 17
‘‘(C) The average per capita medical as-18
sistance expenditures for the State for fiscal 19
year 2016 equal to—20
‘‘(i) the amount calculated under sub-21
paragraph (A); divided by 22
‘‘(ii) the number calculated under sub-23
paragraph (B). 24
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‘‘(2) FISCAL YEAR 2019 AVERAGE PER CAPITA 1
AMOUNT BASED ON INFLATING THE FISCAL YEAR 2
2016 AMOUNT TO FISCAL YEAR 2019 BY CPI-MED-3
ICAL.—The Secretary shall calculate a fiscal year 4
2019 average per capita amount for each State 5
equal to—6
‘‘(A) the average per capita medical assist-7
ance expenditures for the State for fiscal year 8
2016 (calculated under paragraph (1)(C)); in-9
creased by 10
‘‘(B) the percentage increase in the med-11
ical care component of the consumer price index 12
for all urban consumers (U.S. city average) 13
from September, 2016 to September, 2019. 14
‘‘(3) AGGREGATE AND AVERAGE EXPENDI-15
TURES PER CAPITA FOR FISCAL YEAR 2019.—The 16
Secretary shall calculate for each State the fol-17
lowing: 18
‘‘(A) The amount of the adjusted total 19
medical assistance expenditures (as defined in 20
subsection (b)(1)) for the State for fiscal year 21
2019. 22
‘‘(B) The number of 1903A enrollees for 23
the State in fiscal year 2019 (as determined 24
under subsection (e)(4)). 25
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‘‘(4) PER CAPITA EXPENDITURES FOR FISCAL 1
YEAR 2019 FOR EACH 1903A ENROLLEE CATEGORY.—2
The Secretary shall calculate (and provide notice to 3
each State not later than January 1, 2020, of) the 4
following: 5
‘‘(A)(i) For each 1903A enrollee category, 6
the amount of the adjusted total medical assist-7
ance expenditures (as defined in subsection 8
(b)(1)) for the State for fiscal year 2019 for in-9
dividuals in the enrollee category, calculated by 10
excluding from medical assistance expenditures 11
those expenditures attributable to expenditures 12
described in clause (iii) or non-DSH supple-13
mental expenditures (as defined in clause (ii)). 14
‘‘(ii) In this paragraph, the term ‘non-15
DSH supplemental expenditure’ means a pay-16
ment to a provider under the State plan (or 17
under a waiver of the plan) that—18
‘‘(I) is not made under section 1923; 19
‘‘(II) is not made with respect to a 20
specific item or service for an individual; 21
‘‘(III) is in addition to any payments 22
made to the provider under the plan (or 23
waiver) for any such item or service; and 24
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‘‘(IV) complies with the limits for ad-1
ditional payments to providers under the 2
plan (or waiver) imposed pursuant to sec-3
tion 1902(a)(30)(A), including the regula-4
tions specifying upper payment limits 5
under the State plan in part 447 of title 6
42, Code of Federal Regulations (or any 7
successor regulations). 8
‘‘(iii) An expenditure described in this 9
clause is an expenditure that meets the criteria 10
specified in subclauses (I), (II), and (III) of 11
clause (ii) and is authorized under section 1115 12
for the purposes of funding a delivery system 13
reform pool, uncompensated care pool, a des-14
ignated state health program, or any other 15
similar expenditure (as defined by the Sec-16
retary). 17
‘‘(B) For each 1903A enrollee category, 18
the number of 1903A enrollees for the State in 19
fiscal year 2019 in the enrollee category (as de-20
termined under subsection (e)(4)). 21
‘‘(C) For fiscal year 2016, the State’s non-22
DSH supplemental payment percentage is equal 23
to the ratio (expressed as a percentage) of—24
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‘‘(i) the total amount of non-DSH 1
supplemental expenditures (as defined in 2
subparagraph (A)(ii)) for the State for fis-3
cal year 2016; to 4
‘‘(ii) the amount described in sub-5
section (b)(1)(A) for the State for fiscal 6
year 2016. 7
‘‘(D) For each 1903A enrollee category an 8
average medical assistance expenditures per 9
capita for the State for fiscal year 2019 for the 10
enrollee category equal to—11
‘‘(i) the amount calculated under sub-12
paragraph (A) for the State, increased by 13
the non-DSH supplemental payment per-14
centage for the State (as calculated under 15
subparagraph (C)); divided by 16
‘‘(ii) the number calculated under sub-17
paragraph (B) for the State for the en-18
rollee category. 19
‘‘(5) PROVISIONAL FY19 PER CAPITA TARGET 20
AMOUNT FOR EACH 1903A ENROLLEE CATEGORY.—21
Subject to subsection (f)(2), the Secretary shall cal-22
culate for each State a provisional FY19 per capita 23
target amount for each 1903A enrollee category 24
equal to the average medical assistance expenditures 25
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per capita for the State for fiscal year 2019 (as cal-1
culated under paragraph (4)(D)) for such enrollee 2
category multiplied by the ratio of—3
‘‘(A) the product of—4
‘‘(i) the fiscal year 2019 average per 5
capita amount for the State, as calculated 6
under paragraph (2); and 7
‘‘(ii) the number of 1903A enrollees 8
for the State in fiscal year 2019, as cal-9
culated under paragraph (3)(B); to 10
‘‘(B) the amount of the adjusted total 11
medical assistance expenditures for the State 12
for fiscal year 2019, as calculated under para-13
graph (3)(A). 14
‘‘(e) 1903A ENROLLEE; 1903A ENROLLEE CAT-15
EGORY.—Subject to subsection (g), for purposes of this 16
section, the following shall apply: 17
‘‘(1) 1903A ENROLLEE.—The term ‘1903A en-18
rollee’ means, with respect to a State and a month, 19
any Medicaid enrollee (as defined in paragraph (3)) 20
for the month, other than such an enrollee who for 21
such month is in any of the following categories of 22
excluded individuals: 23
‘‘(A) CHIP.—An individual who is pro-24
vided, under this title in the manner described 25
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in section 2101(a)(2), child health assistance 1
under title XXI. 2
‘‘(B) IHS.—An individual who receives 3
any medical assistance under this title for serv-4
ices for which payment is made under the third 5
sentence of section 1905(b). 6
‘‘(C) BREAST AND CERVICAL CANCER 7
SERVICES ELIGIBLE INDIVIDUAL.—An indi-8
vidual who is entitled to medical assistance 9
under this title only pursuant to section 10
1902(a)(10)(A)(ii)(XVIII). 11
‘‘(D) PARTIAL-BENEFIT ENROLLEES.—An 12
individual who—13
‘‘(i) is an alien who is entitled to med-14
ical assistance under this title only pursu-15
ant to section 1903(v)(2); 16
‘‘(ii) is entitled to medical assistance 17
under this title only pursuant to subclause 18
(XII) or (XXI) of section 19
1902(a)(10)(A)(ii) (or pursuant to a waiv-20
er that provides only comparable benefits); 21
‘‘(iii) is a dual eligible individual (as 22
defined in section 1915(h)(2)(B)) and is 23
entitled to medical assistance under this 24
title (or under a waiver) only for some or 25
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all of medicare cost-sharing (as defined in 1
section 1905(p)(3)); or 2
‘‘(iv) is entitled to medical assistance 3
under this title and for whom the State is 4
providing a payment or subsidy to an em-5
ployer for coverage of the individual under 6
a group health plan pursuant to section 7
1906 or section 1906A (or pursuant to a 8
waiver that provides only comparable bene-9
fits). 10
‘‘(2) 1903A ENROLLEE CATEGORY.—The term 11
‘1903A enrollee category’ means each of the fol-12
lowing: 13
‘‘(A) ELDERLY.—A category of 1903A en-14
rollees who are 65 years of age or older. 15
‘‘(B) BLIND AND DISABLED.—A category 16
of 1903A enrollees (not described in the pre-17
vious subparagraph) who are eligible for med-18
ical assistance under this title on the basis of 19
being blind or disabled. 20
‘‘(C) CHILDREN.—A category of 1903A 21
enrollees (not described in a previous subpara-22
graph) who are children under 19 years of age. 23
‘‘(D) EXPANSION ENROLLEES.—A cat-24
egory of 1903A enrollees (not described in a 25
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previous subparagraph) for whom the amounts 1
expended for medical assistance are subject to 2
an increase or change in the Federal medical 3
assistance percentage under subsection (y) or 4
(z)(2), respectively, of section 1905. 5
‘‘(E) OTHER NONELDERLY, NONDISABLED, 6
NON-EXPANSION ADULTS.—A category of 7
1903A enrollees who are not described in any 8
previous subparagraph. 9
‘‘(3) MEDICAID ENROLLEE.—The term ‘Med-10
icaid enrollee’ means, with respect to a State for a 11
month, an individual who is eligible for medical as-12
sistance for items or services under this title and en-13
rolled under the State plan (or a waiver of such 14
plan) under this title for the month. 15
‘‘(4) DETERMINATION OF NUMBER OF 1903A 16
ENROLLEES.—The number of 1903A enrollees for a 17
State and fiscal year, and, if applicable, for a 1903A 18
enrollee category, is the average monthly number of 19
Medicaid enrollees for such State and fiscal year 20
(and, if applicable, in such category) that are re-21
ported through the CMS–64 report under (and sub-22
ject to audit under) subsection (h). 23
‘‘(f) SPECIAL PAYMENT RULES.—24
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‘‘(1) APPLICATION IN CASE OF RESEARCH AND 1
DEMONSTRATION PROJECTS AND OTHER WAIVERS.—2
In the case of a State with a waiver of the State 3
plan approved under section 1115, section 1915, or 4
another provision of this title, this section shall 5
apply to medical assistance expenditures and medical 6
assistance payments under the waiver, in the same 7
manner as if such expenditures and payments had 8
been made under a State plan under this title and 9
the limitations on expenditures under this section 10
shall supersede any other payment limitations or 11
provisions (including limitations based on a per cap-12
ita limitation) otherwise applicable under such a 13
waiver. 14
‘‘(2) TREATMENT OF STATES EXPANDING COV-15
ERAGE AFTER FISCAL YEAR 2016.—In the case of a 16
State that did not provide for medical assistance for 17
the 1903A enrollee category described in subsection 18
(e)(2)(D) during fiscal year 2016 but which provides 19
for such assistance for such category in a subse-20
quent year, the provisional FY19 per capita target 21
amount for such enrollee category under subsection 22
(d)(5) shall be equal to the provisional FY19 per 23
capita target amount for the 1903A enrollee cat-24
egory described in subsection (e)(2)(E). 25
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‘‘(3) IN CASE OF STATE FAILURE TO REPORT 1
NECESSARY DATA.—If a State for any quarter in a 2
fiscal year (beginning with fiscal year 2019) fails to 3
satisfactorily submit data on expenditures and en-4
rollees in accordance with subsection (h)(1), for such 5
fiscal year and any succeeding fiscal year for which 6
such data are not satisfactorily submitted—7
‘‘(A) the Secretary shall calculate and 8
apply subsections (a) through (e) with respect 9
to the State as if all 1903A enrollee categories 10
for which such expenditure and enrollee data 11
were not satisfactorily submitted were a single 12
1903A enrollee category; and 13
‘‘(B) the growth factor otherwise applied 14
under subsection (c)(2)(B) shall be decreased 15
by 1 percentage point. 16
‘‘(g) RECALCULATION OF CERTAIN AMOUNTS FOR 17
DATA ERRORS.—The amounts and percentage calculated 18
under paragraphs (1) and (4)(C) of subsection (d) for a 19
State for fiscal year 2016, and the amounts of the ad-20
justed total medical assistance expenditures calculated 21
under subsection (b) and the number of Medicaid enrollees 22
and 1903A enrollees determined under subsection (e)(4) 23
for a State for fiscal year 2016, fiscal year 2019, and any 24
subsequent fiscal year, may be adjusted by the Secretary 25
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based upon an appeal (filed by the State in such a form, 1
manner, and time, and containing such information relat-2
ing to data errors that support such appeal, as the Sec-3
retary specifies) that the Secretary determines to be valid, 4
except that any adjustment by the Secretary under this 5
subsection for a State may not result in an increase of 6
the target total medical assistance expenditures exceeding 7
2 percent. 8
‘‘(h) REQUIRED REPORTING AND AUDITING OF 9
CMS–64 DATA; TRANSITIONAL INCREASE IN FEDERAL 10
MATCHING PERCENTAGE FOR CERTAIN ADMINISTRATIVE 11
EXPENSES.—12
‘‘(1) REPORTING.—In addition to the data re-13
quired on form Group VIII on the CMS–64 report 14
form as of January 1, 2017, in each CMS-64 report 15
required to be submitted (for each quarter beginning 16
on or after October 1, 2018), the State shall include 17
data on medical assistance expenditures within such 18
categories of services and categories of enrollees (in-19
cluding each 1903A enrollee category and each cat-20
egory of excluded individuals under subsection 21
(e)(1)) and the numbers of enrollees within each of 22
such enrollee categories, as the Secretary determines 23
are necessary (including timely guidance published 24
as soon as possible after the date of the enactment 25
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of this section) in order to implement this section 1
and to enable States to comply with the requirement 2
of this paragraph on a timely basis. 3
‘‘(2) AUDITING.—The Secretary shall conduct 4
for each State an audit of the number of individuals 5
and expenditures reported through the CMS–64 re-6
port for fiscal year 2016, fiscal year 2019, and each 7
subsequent fiscal year, which audit may be con-8
ducted on a representative sample (as determined by 9
the Secretary). 10
‘‘(3) TEMPORARY INCREASE IN FEDERAL 11
MATCHING PERCENTAGE TO SUPPORT IMPROVED 12
DATA REPORTING SYSTEMS FOR FISCAL YEARS 2018 13
AND 2019.—For amounts expended during calendar 14
quarters beginning on or after October 1, 2017, and 15
before October 1, 2019—16
‘‘(A) the Federal matching percentage ap-17
plied under section 1903(a)(3)(A)(i) shall be in-18
creased by 10 percentage points to 100 percent; 19
‘‘(B) the Federal matching percentage ap-20
plied under section 1903(a)(3)(B) shall be in-21
creased by 25 percentage points to 100 percent; 22
and 23
‘‘(C) the Federal matching percentage ap-24
plied under section 1903(a)(7) shall be in-25
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creased by 10 percentage points to 60 percent 1
but only with respect to amounts expended that 2
are attributable to a State’s additional adminis-3
trative expenditures to implement the data re-4
quirements of paragraph (1).’’. 5
Subtitle D—Patient Relief and 6
Health Insurance Market Stability 7
SEC. 131. REPEAL OF COST-SHARING SUBSIDY. 8
(a) IN GENERAL.—Section 1402 of the Patient Pro-9
tection and Affordable Care Act is repealed. 10
(b) EFFECTIVE DATE.—The repeal made by sub-11
section (a) shall apply to cost-sharing reductions (and pay-12
ments to issuers for such reductions) for plan years begin-13
ning after December 31, 2019. 14
SEC. 132. PATIENT AND STATE STABILITY FUND. 15
The Social Security Act (42 U.S.C. 301 et seq.) is 16
amended by adding at the end the following new title: 17
‘‘TITLE XXII—PATIENT AND 18
STATE STABILITY FUND 19
‘‘SEC. 2201. ESTABLISHMENT OF PROGRAM. 20
‘‘There is hereby established the ‘Patient and State 21
Stability Fund’ to be administered by the Secretary of 22
Health and Human Services, acting through the Adminis-23
trator of the Centers for Medicare & Medicaid Services 24
(in this section referred to as the ‘Administrator’), to pro-25
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vide funding, in accordance with this title, to the 50 States 1
and the District of Columbia (each referred to in this sec-2
tion as a ‘State’) during the period, subject to section 3
2204(c), beginning on January 1, 2018, and ending on 4
December 31, 2026, for the purposes described in section 5
2202. 6
‘‘SEC. 2202. USE OF FUNDS. 7
‘‘A State may use the funds allocated to the State 8
under this title for any of the following purposes: 9
‘‘(1) Helping, through the provision of financial 10
assistance, high-risk individuals who do not have ac-11
cess to health insurance coverage offered through an 12
employer enroll in health insurance coverage in the 13
individual market in the State, as such market is de-14
fined by the State (whether through the establish-15
ment of a new mechanism or maintenance of an ex-16
isting mechanism for such purpose). 17
‘‘(2) Providing incentives to appropriate entities 18
to enter into arrangements with the State to help 19
stabilize premiums for health insurance coverage in 20
the individual market, as such markets are defined 21
by the State. 22
‘‘(3) Reducing the cost for providing health in-23
surance coverage in the individual market and small 24
group market, as such markets are defined by the 25
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State, to individuals who have, or are projected to 1
have, a high rate of utilization of health services (as 2
measured by cost). 3
‘‘(4) Promoting participation in the individual 4
market and small group market in the State and in-5
creasing health insurance options available through 6
such market. 7
‘‘(5) Promoting access to preventive services; 8
dental care services (whether preventive or medically 9
necessary); vision care services (whether preventive 10
or medically necessary); prevention, treatment, or re-11
covery support services for individuals with mental 12
or substance use disorders; or any combination of 13
such services. 14
‘‘(6) Providing payments, directly or indirectly, 15
to health care providers for the provision of such 16
health care services as are specified by the Adminis-17
trator. 18
‘‘(7) Providing assistance to reduce out-of-pock-19
et costs, such as copayments, coinsurance, pre-20
miums, and deductibles, of individuals enrolled in 21
health insurance coverage in the State. 22
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‘‘SEC. 2203. STATE ELIGIBILITY AND APPROVAL; DEFAULT 1
SAFEGUARD. 2
‘‘(a) ENCOURAGING STATE OPTIONS FOR ALLOCA-3
TIONS.—4
‘‘(1) IN GENERAL.—To be eligible for an alloca-5
tion of funds under this title for a year during the 6
period described in section 2201 for use for one or 7
more purposes described in section 2202, a State 8
shall submit to the Administrator an application at 9
such time (but, in the case of allocations for 2018, 10
not later than 45 days after the date of the enact-11
ment of this title and, in the case of allocations for 12
a subsequent year, not later than March 31 of the 13
previous year) and in such form and manner as 14
specified by the Administrator and containing—15
‘‘(A) a description of how the funds will be 16
used for such purposes; 17
‘‘(B) a certification that the State will 18
make, from non-Federal funds, expenditures for 19
such purposes in an amount that is not less 20
than the State percentage required for the year 21
under section 2204(e)(1); and 22
‘‘(C) such other information as the Admin-23
istrator may require. 24
‘‘(2) AUTOMATIC APPROVAL.—An application so 25
submitted is approved unless the Administrator noti-26
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fies the State submitting the application, not later 1
than 60 days after the date of the submission of 2
such application, that the application has been de-3
nied for not being in compliance with any require-4
ment of this title and of the reason for such denial. 5
‘‘(3) ONE-TIME APPLICATION.—If an applica-6
tion of a State is approved for a year, with respect 7
to a purpose described in section 2202, such applica-8
tion shall be treated as approved, with respect to 9
such purpose, for each subsequent year through 10
2026. 11
‘‘(4) TREATMENT AS A STATE HEALTH CARE 12
PROGRAM.—Any program receiving funds from an 13
allocation for a State under this title, including pur-14
suant to subsection (b), shall be considered to be a 15
‘State health care program’ for purposes of sections 16
1128, 1128A, and 1128B. 17
‘‘(b) DEFAULT FEDERAL SAFEGUARD.—18
‘‘(1) IN GENERAL.—19
‘‘(A) 2018.—For allocations made under 20
this title for 2018, in the case of a State that 21
does not submit an application under subsection 22
(a) by the 45-day submission date applicable to 23
such year under subsection (a)(1)and in the 24
case of a State that does submit such an appli-25
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cation by such date that is not approved, sub-1
ject to section 2204(e), the Administrator, in 2
consultation with the State insurance commis-3
sioner, shall use the allocation that would other-4
wise be provided to the State under this title 5
for such year, in accordance with paragraph 6
(2), for such State. 7
‘‘(B) 2019 THROUGH 2026.—In the case of 8
a State that does not have in effect an approved 9
application under this section for 2019 or a 10
subsequent year beginning during the period 11
described in section 2201, subject to section 12
2204(e), the Administrator, in consultation with 13
the State insurance commissioner, shall use the 14
allocation that would otherwise be provided to 15
the State under this title for such year, in ac-16
cordance with paragraph (2), for such State. 17
‘‘(2) REQUIRED USE FOR MARKET STABILIZA-18
TION PAYMENTS TO ISSUERS.—An allocation for a 19
State made pursuant to paragraph (1) for a year 20
shall be used to carry out the purpose described in 21
section 2202(2) in such State by providing payments 22
to appropriate entities described in such section with 23
respect to claims that exceed $50,000 (or, with re-24
spect to allocations made under this title for 2020 25
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or a subsequent year during the period specified in 1
section 2201, such dollar amount specified by the 2
Administrator), but do not exceed $350,000 (or, 3
with respect to allocations made under this title for 4
2020 or a subsequent year during such period, such 5
dollar amount specified by the Administrator), in an 6
amount equal to 75 percent (or, with respect to allo-7
cations made under this title for 2020 or a subse-8
quent year during such period, such percentage 9
specified by the Administrator) of the amount of 10
such claims. 11
‘‘SEC. 2204. ALLOCATIONS. 12
‘‘(a) APPROPRIATION.—For the purpose of providing 13
allocations for States (including pursuant to section 14
2203(b)) under this title there is appropriated, out of any 15
money in the Treasury not otherwise appropriated—16
‘‘(1) for 2018, $15,000,000,000; 17
‘‘(2) for 2019, $15,000,000,000; 18
‘‘(3) for 2020, $10,000,000,000; 19
‘‘(4) for 2021, $10,000,000,000; 20
‘‘(5) for 2022, $10,000,000,000; 21
‘‘(6) for 2023, $10,000,000,000; 22
‘‘(7) for 2024, $10,000,000,000; 23
‘‘(8) for 2025, $10,000,000,000; and 24
‘‘(9) for 2026, $10,000,000,000. 25
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‘‘(b) ALLOCATIONS.—1
‘‘(1) PAYMENT.—2
‘‘(A) IN GENERAL.—From amounts appro-3
priated under subsection (a) for a year, the Ad-4
ministrator shall, with respect to a State and 5
not later than the date specified under subpara-6
graph (B) for such year, allocate, subject to 7
subsection (e), for such State (including pursu-8
ant to section 2203(b)) the amount determined 9
for such State and year under paragraph (2). 10
‘‘(B) SPECIFIED DATE.—For purposes of 11
subparagraph (A), the date specified in this 12
clause is—13
‘‘(i) for 2018, the date that is 45 days 14
after the date of the enactment of this 15
title; and 16
‘‘(ii) for 2019 and subsequent years, 17
January 1 of the respective year. 18
‘‘(2) ALLOCATION AMOUNT DETERMINA-19
TIONS.—20
‘‘(A) FOR 2018 AND 2019.—21
‘‘(i) IN GENERAL.—For purposes of 22
paragraph (1), the amount determined 23
under this paragraph for 2018 and 2019 24
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for a State is an amount equal to the sum 1
of—2
‘‘(I) the relative incurred claims 3
amount described in clause (ii) for 4
such State and year; and 5
‘‘(II) the relative uninsured and 6
issuer participation amount described 7
in clause (iv) for such State and year. 8
‘‘(ii) RELATIVE INCURRED CLAIMS 9
AMOUNT.—For purposes of clause (i), the 10
relative incurred claims amount described 11
in this clause for a State for 2018 and 12
2019 is the product of—13
‘‘(I) 85 percent of the amount 14
appropriated under subsection (a) for 15
the year; and 16
‘‘(II) the relative State incurred 17
claims proportion described in clause 18
(iii) for such State and year. 19
‘‘(iii) RELATIVE STATE INCURRED 20
CLAIMS PROPORTION.—The relative State 21
incurred claims proportion described in 22
this clause for a State and year is the 23
amount equal to the ratio of—24
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‘‘(I) the adjusted incurred claims 1
by the State, as reported through the 2
medical loss ratio annual reporting 3
under section 2718 of the Public 4
Health Service Act for the third pre-5
vious year; to 6
‘‘(II) the sum of such adjusted 7
incurred claims for all States, as so 8
reported, for such third previous year. 9
‘‘(iv) RELATIVE UNINSURED AND 10
ISSUER PARTICIPATION AMOUNT.—For 11
purposes of clause (i), the relative unin-12
sured and issuer participation amount de-13
scribed in this clause for a State for 2018 14
and 2019 is the product of—15
‘‘(I) 15 percent of the amount 16
appropriated under subsection (a) for 17
the year; and 18
‘‘(II) the relative State uninsured 19
and issuer participation proportion de-20
scribed in clause (v) for such State 21
and year. 22
‘‘(v) RELATIVE STATE UNINSURED 23
AND ISSUER PARTICIPATION PROPOR-24
TION.—The relative State uninsured and 25
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issuer participation proportion described in 1
this clause for a State and year is—2
‘‘(I) in the case of a State not 3
described in clause (vi) for such year, 4
0; and 5
‘‘(II) in the case of a State de-6
scribed in clause (vi) for such year, 7
the amount equal to the ratio of—8
‘‘(aa) the number of individ-9
uals residing in such State who 10
for the third preceding year were 11
not enrolled in a health plan or 12
otherwise did not have health in-13
surance coverage (including 14
through a Federal or State 15
health program) and whose in-16
come is below 100 percent of the 17
poverty line applicable to a family 18
of the size involved; to 19
‘‘(bb) the sum of the num-20
ber of such individuals for all 21
States described in clause (vi) for 22
the third preceding year. 23
‘‘(vi) STATES DESCRIBED.—For pur-24
poses of clause (v), a State is described in 25
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this clause, with respect to 2018 and 2019, 1
if the State satisfies either of the following 2
criterion: 3
‘‘(I) The number of individuals 4
residing in such State and described 5
in clause (v)(II)(aa) was higher in 6
2015 than 2013. 7
‘‘(II) The State have fewer than 8
three health insurance issuers offering 9
qualified health plans through the Ex-10
change for 2017. 11
‘‘(B) FOR 2020 THROUGH 2026.—For pur-12
poses of paragraph (1), the amount determined 13
under this paragraph for a year (beginning with 14
2020) during the period described in section 15
2201 for a State is an amount determined in 16
accordance with an allocation methodology spec-17
ified by the Administrator which—18
‘‘(i) takes into consideration the ad-19
justed incurred claims of such State, the 20
number of residents of such State who for 21
the previous year were not enrolled in a 22
health plan or otherwise did not have 23
health insurance coverage (including 24
through a Federal or State health pro-25
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gram) and whose income is below 100 per-1
cent of the poverty line applicable to a 2
family of the size involved, and the number 3
of health insurance issuers participating in 4
the insurance market in such State for 5
such year; 6
‘‘(ii) is established after consultation 7
with health care consumers, health insur-8
ance issuers, State insurance commis-9
sioners, and other stakeholders and after 10
taking into consideration additional cost 11
and risk factors that may inhibit health 12
care consumer and health insurance issuer 13
participation; and 14
‘‘(iii) reflects the goals of improving 15
the health insurance risk pool, promoting a 16
more competitive health insurance market, 17
and increasing choice for health care con-18
sumers. 19
‘‘(c) ANNUAL DISTRIBUTION OF PREVIOUS YEAR’S 20
REMAINING FUNDS.— In carrying out subsection (b), the 21
Administrator shall, with respect to a year (beginning with 22
2020 and ending with 2027), not later than March 31 of 23
such year—24
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‘‘(1) determine the amount of funds, if any, 1
from the amounts appropriated under subsection (a) 2
for the previous year but not allocated for such pre-3
vious year; and 4
‘‘(2) if the Administrator determines that any 5
funds were not so allocated for such previous year, 6
allocate such remaining funds, in accordance with 7
the allocation methodology specified pursuant to 8
subsection (b)(2)(B)—9
‘‘(A) to States that have submitted an ap-10
plication approved under section 2203(a) for 11
such previous year for any purpose for which 12
such an application was approved; and 13
‘‘(B) for States for which allocations were 14
made pursuant to section 2203(b) for such pre-15
vious year, to be used by the Administrator for 16
such States, to carry out the purpose described 17
in section 2202(2) in such States by providing 18
payments to appropriate entities described in 19
such section with respect to claims that exceed 20
$1,000,000; 21
with, respect to a year before 2027, any remaining 22
funds being made available for allocations to States 23
for the subsequent year. 24
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‘‘(d) AVAILABILITY.—Amounts appropriated under 1
subsection (a) for a year and allocated to States in accord-2
ance with this section shall remain available for expendi-3
ture through December 31, 2027. 4
‘‘(e) CONDITIONS FOR AND LIMITATIONS ON RE-5
CEIPT OF FUNDS.—The Secretary may not make an allo-6
cation under this title for a State, with respect to a pur-7
pose described in section 2202—8
‘‘(1) in the case of an allocation that would be 9
made to a State pursuant to section 2203(a), if the 10
State does not agree that the State will make avail-11
able non-Federal contributions towards such purpose 12
in an amount equal to—13
‘‘(A) for 2020, 7 percent of the amount al-14
located under this subsection to such State for 15
such year and purpose; 16
‘‘(B) for 2021, 14 percent of the amount 17
allocated under this subsection to such State 18
for such year and purpose; 19
‘‘(C) for 2022, 21 percent of the amount 20
allocated under this subsection to such State 21
for such year and purpose; 22
‘‘(D) for 2023, 28 percent of the amount 23
allocated under this subsection to such State 24
for such year and purpose; 25
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‘‘(E) for 2024, 35 percent of the amount 1
allocated under this subsection to such State 2
for such year and purpose; 3
‘‘(F) for 2025, 42 percent of the amount 4
allocated under this subsection to such State 5
for such year and purpose; and 6
‘‘(G) for 2026, 50 percent of the amount 7
allocated under this subsection to such State 8
for such year and purpose; 9
‘‘(2) in the case of an allocation that would be 10
made for a State pursuant to section 2203(b), if the 11
State does not agree that the State will make avail-12
able non-Federal contributions towards such purpose 13
in an amount equal to—14
‘‘(A) for 2020, 10 percent of the amount 15
allocated under this subsection to such State 16
for such year and purpose; 17
‘‘(B) for 2021, 20 percent of the amount 18
allocated under this subsection to such State 19
for such year and purpose; and 20
‘‘(C) for 2022, 30 percent of the amount 21
allocated under this subsection to such State 22
for such year and purpose; 23
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‘‘(D) for 2023, 40 percent of the amount 1
allocated under this subsection to such State 2
for such year and purpose; 3
‘‘(E) for 2024, 50 percent of the amount 4
allocated under this subsection to such State 5
for such year and purpose; 6
‘‘(F) for 2025, 50 percent of the amount 7
allocated under this subsection to such State 8
for such year and purpose; and 9
‘‘(G) for 2026, 50 percent of the amount 10
allocated under this subsection to such State 11
for such year and purpose; or 12
‘‘(3) if such an allocation for such purpose 13
would not be permitted under subsection (c)(7) of 14
section 2105 if such allocation were payment made 15
under such section.’’. 16
SEC. 133. CONTINUOUS HEALTH INSURANCE COVERAGE IN-17
CENTIVE. 18
Subpart I of part A of title XXVII of the Public 19
Health Service Act is amended—20
(1) in section 2701(a)(1)(B), by striking ‘‘such 21
rate’’ and inserting ‘‘subject to section 2711, such 22
rate’’; 23
(2) by redesignating the second section 2709 as 24
section 2710; and 25
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(3) by adding at the end the following new sec-1
tion: 2
‘‘SEC. 2711. ENCOURAGING CONTINUOUS HEALTH INSUR-3
ANCE COVERAGE. 4
‘‘(a) PENALTY APPLIED.—5
‘‘(1) IN GENERAL.—Notwithstanding section 6
2701, subject to the succeeding provisions of this 7
section, a health insurance issuer offering health in-8
surance coverage in the individual or small group 9
market shall, in the case of an individual who is an 10
applicable policyholder of such coverage with respect 11
to an enforcement period applicable to enrollments 12
for a plan year beginning with plan year 2019 (or, 13
in the case of enrollments during a special enroll-14
ment period, beginning with plan year 2018), in-15
crease the monthly premium rate otherwise applica-16
ble to such individual for such coverage during each 17
month of such period, by an amount determined 18
under paragraph (2). 19
‘‘(2) AMOUNT OF PENALTY.—The amount de-20
termined under this paragraph for an applicable pol-21
icyholder enrolling in health insurance coverage de-22
scribed in paragraph (1) for a plan year, with re-23
spect to each month during the enforcement period 24
applicable to enrollments for such plan year, is the 25
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amount that is equal to 30 percent of the monthly 1
premium rate otherwise applicable to such applicable 2
policyholder for such coverage during such month. 3
‘‘(b) DEFINITIONS.—For purposes of this section: 4
‘‘(1) APPLICABLE POLICYHOLDER.—The term 5
‘applicable policyholder’ means, with respect to 6
months of an enforcement period and health insur-7
ance coverage, an individual who—8
‘‘(A) is a policyholder of such coverage for 9
such months; 10
‘‘(B) cannot demonstrate (through presen-11
tation of certifications described in section 12
2704(e) or in such other manner as may be 13
specified in regulations, such as a return or 14
statement made under section 6055(d) or 36C 15
of the Internal Revenue Code of 1986), during 16
the look-back period that is with respect to such 17
enforcement period, there was not a period of 18
at least 63 continuous days during which the 19
individual did not have creditable coverage (as 20
defined in paragraph (1) of section 2704(c) and 21
credited in accordance with paragraphs (2) and 22
(3) of such section); and 23
‘‘(C) in the case of an individual who had 24
been enrolled under dependent coverage under a 25
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group health plan or health insurance coverage 1
by reason of section 2714 and such dependent 2
coverage of such individual ceased because of 3
the age of such individual, is not enrolling dur-4
ing the first open enrollment period following 5
the date on which such coverage so ceased. 6
‘‘(2) LOOK-BACK PERIOD.—The term ‘look-back 7
period’ means, with respect to an enforcement period 8
applicable to an enrollment of an individual for a 9
plan year beginning with plan year 2019 (or, in the 10
case of an enrollment of an individual during a spe-11
cial enrollment period, beginning with plan year 12
2018) in health insurance coverage described in sub-13
section (a)(1), the 12-month period ending on the 14
date the individual enrolls in such coverage for such 15
plan year. 16
‘‘(3) ENFORCEMENT PERIOD.—The term ‘en-17
forcement period’ means—18
‘‘(A) with respect to enrollments during a 19
special enrollment period for plan year 2018, 20
the period beginning with the first month that 21
is during such plan year and that begins subse-22
quent to such date of enrollment, and ending 23
with the last month of such plan year; and 24
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‘‘(B) with respect to enrollments for plan 1
year 2019 or a subsequent plan year, the 12-2
month period beginning on the first day of the 3
respective plan year.’’. 4
SEC. 134. INCREASING COVERAGE OPTIONS. 5
Section 1302 of the Patient Protection and Afford-6
able Care Act (42 U.S.C. 18022) is amended—7
(1) in subsection (a)(3), by inserting ‘‘and with 8
respect to a plan year before plan year 2020’’ after 9
‘‘subsection (e)’’; and 10
(2) in subsection (d), by adding at the end the 11
following: 12
‘‘(5) SUNSET.—The provisions of this sub-13
section shall not apply after December 31, 2019, 14
and after such date any reference to this subsection 15
or level of coverage or plan described in this sub-16
section and any requirement under law applying 17
such a level of coverage or plan shall have no force 18
or effect (and such a requirement shall be applied as 19
if this section had been repealed).’’. 20
SEC. 135. CHANGE IN PERMISSIBLE AGE VARIATION IN 21
HEALTH INSURANCE PREMIUM RATES. 22
Section 2701(a)(1)(A)(iii) of the Public Health Serv-23
ice Act (42 U.S.C. 300gg(a)(1)(A)(iii)), as inserted by sec-24
tion 1201(4) of Public Law 111–148, is amended by in-25
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serting after ‘‘3 to 1 for adults (consistent with section 1
2707(c))’’ the following: ‘‘or, for plan years beginning on 2
or after January 1, 2018, as the Secretary may implement 3
through interim final regulation, 5 to 1 for adults (con-4
sistent with section 2707(c)) or such other ratio for adults 5
(consistent with section 2707(c)) as the State involved 6
may provide’’. 7
◊
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County Welfare Directors Association California State Association of Counties ®
925 L Street, Suite 350 1100 K Street, Suite 101
Sacramento, CA 95814 Sacramento, CA 95814
(916) 443-1749 (916) 327-7500
March 7, 2017
Re: Oppose the American Health Care Act
Dear California Congressional Delegation Member:
The California State Association of Counties (CSAC) and the County Welfare Directors Association of
California (CWDA) oppose the American Health Care Act (AHCA). Released last night, the Energy and
Commerce and Ways and Means Committee drafts will increase the number of individuals without health
coverage and will shift costs to California’s counties, who form the health care safety net in our state.
Given the complex inter-relationships between provisions repealing major components of the Affordable
Care Act (ACA) and capping the federal contribution to Medicaid, we have not had sufficient time to
estimate the actual county and state costs and numbers of individuals who will lose their health
insurance, but both appear to be significant. We also are deeply concerned that the House committees
with jurisdiction over repealing and replacing the ACA are marking up the bill without holding meaningful
public hearings and prior to a Congressional Budget Office estimate on the costs of the AHCA.
Similar to any other piece of landmark legislation, the ACA could be improved. However, the increase in
health insurance access and coverage in California due to the ACA has been striking. Since its
enactment, the state’s uninsured rate has been cut by nearly two-thirds, with the uninsured rate at 7.1
percent, down from 18.6 percent, since the ACA began, according to the Centers for Disease Control
and Prevention. This decrease is due to 3.7 million newly eligible Californians who are now covered
though the Medicaid expansion and another 2 million previously eligible but not enrolled. An additional
1.2 million individuals have purchased private plans through Covered California, with the vast majority –
roughly 90 percent – receiving subsidies to help pay for the premiums.
Pending our in-depth analysis of the measure, we have a number of significant initial concerns, including
the following:
Eliminating the ACA Medicaid Expansion: CSAC and CWDA oppose the elimination of the Medicaid
expansion. As noted above, the expansion has provided coverage to 3.7 million individuals. The
elimination of the enhanced match will shift costs to the state and ultimately counties. Moreover, if there
is even one month in which coverage was interrupted for those individuals currently covered - even if the
reason is beyond their control - the federal match rate is lowered to 50 percent. The intent of such an
administrative provision effectively shifts costs to states and counties.
Attachment B
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CSAC & CWDA Letter Re: AHCA March 7, 2017 | Page 2
Medicaid Eligibility Changes: While we have not determined the exact impact of the provisions, the bill
will decrease the number of individuals who are covered by Medicaid by changing the manner in which
counties are able to cover individuals quickly and maintain that coverage over time. The administrative
processes in the measure are burdensome and will cut individuals from Medicaid. They include:
eliminating expanded presumptive eligibility; creating a six-month eligibility redetermination process for
persons covered under the ACA Medicaid expansion; eliminating the three-month retroactive eligibility
for new enrollees; and, eliminating the reasonable opportunity period for an applicant to provide
documentation that they are a citizen or have a satisfactory immigration status. Each of these
administrative changes will create barriers to health care and shifts costs to states and counties.
Medicaid Per Capita Cap: CSAC and CWDA oppose the provision limiting the federal government’s
contribution to Medicaid. Since its inception, Medicaid has been a federal-state-county partnership where
each partner pays its share of the costs of any eligible individual. Capping the federal share of Medicaid
would dismantle that partnership, shifting the proportionate costs exceeding the capped federal allocation
to states and counties. Further, the growth mechanism proposed (medical care CPI for urban consumers)
is not sensitive enough to the changing needs and costs of care for various age and demographic groups.
In addition to being unresponsive to increasing costs due to our aging population or other extraordinary
circumstances that may arise in a state, a Medicaid per capita cap will financially disadvantage California
due to the state’s historically low per-beneficiary spending rate. Our state has kept Medicaid costs low,
due primarily to our use of managed care (10.3 million individuals are in such plans) and low provider
reimbursement rates. A per capita cap penalizes the state for our low per-person spending while other
less efficient states will be rewarded. The per capita approach does not recognize the changing dynamic
of health care financing toward a managed care environment that uses actuarially sound rates and
shares risk among parties.
While we recognize that the proposal is not a block grant which places a hard cap on federal spending,
we note that a recent Congressional Budget Office estimate of the impact of a Medicaid block grant
projected a cut of $1 trillion in federal Medicaid spending over ten years, amounting to a 25 percent cut
in the federal contribution.
Elimination of Enhanced Match for Certain In-Home Supportive Services (IHSS): CSAC and CWDA
oppose the sunset of the six percentage point increase in the federal match for the Community First
Choice Option (CFCO). Our state provides a system of home and community based attendant care for
some of our most vulnerable residents in order to keep them in their homes and out of long term care.
About 40 percent of our IHSS recipients are being served under this federal option, which should be
maintained.
Repealing the Prevention and Public Health Fund: CSAC and CWDA oppose its repeal. Last year,
California received approximately $90 million from the Fund to invest in public health prevention activities
to protect all Californians. The Fund supports our state and local health departments’ initiatives to reduce
infectious diseases and prevent chronic disease, among other efforts. The Fund enables the federal
government’s state and local partners to determine how best to meet the public health needs of their
Attachment B
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CSAC & CWDA Letter Re: AHCA March 7, 2017 | Page 3
local communities.
Providing Non-Expansion States with Increased Medicaid Funding: CSAC and CWDA oppose
restoring the cuts in Medicaid Disproportionate Share Payments to non-expansion states in 2018, while
delaying restoration of those same payments to California and other expansion states until 2020. We
also oppose rewarding non-expansion states with $10 billion over five years to bolster their safety net
system solely because they chose not to draw down ACA funding available to them. While covering the
uninsured should be a national priority, the bill’s provisions essentially cut the federal financial
contributions to our system and use a portion of the resulting savings from expansion states to fund
states that have not made use of the ACA’s provisions to increase health coverage.
Repeal of ACA Taxes: While CSAC and CWDA do not have a position on most of the taxes supporting
the ACA, CSAC in particular has consistently opposed the 40 percent excise tax on high cost employer-
sponsored plans. CSAC continues to oppose that tax and is struck by the fact that the Ways and Means
bill repeals all of the taxes with the exception the so-called Cadillac plan tax. The bill once again just
delays its implementation from 2020 to 2025. CSAC urges its repeal.
If you have questions about our positions, please have your staff contact Tom Joseph, Washington
Representative for CSAC and CWDA, at 202.898.1446 or tj@wafed.com.
Sincerely,
Frank Mecca | Executive Director, CWDA Matt Cate | Executive Director, CSAC
Attachment B
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LEGISLATION COMMITTEE 5.
Meeting Date:03/13/2017
Subject:AB 71 (Chiu): Taxes: Credits: Low-Income Housing
Submitted For: LEGISLATION COMMITTEE,
Department:County Administrator
Referral No.: 2017-08
Referral Name: AB 71: Taxes: Credits: Low-Income Housing
Presenter: Kara Douglas, DCD Contact: L. DeLaney, 925-335-1097
Referral History:
The Board of Supervisors' adopted 2017 State Platform includes the following policy:
165. SUPPORT efforts to increase the supply of affordable housing, including, but not limited to,
state issuance of private activity bonds, affordable and low income housing bond measures,
low-income housing tax credits and state infrastructure financing. This position supports a
number of goals in the County General Plan Housing Element.
Staff of the Department of Conservation and Development recommends that the Legislation
Committee consider recommending to the Board of Supervisors a position of "Support" on AB 71
(Chiu): Taxes: Credits: Low-Income Housing, as it finds AB 71 consistent with policy #165.
Referral Update:
AB 71 (Chiu): Taxes: Credits: Low-Income Housing is a bill that increases, under the Insurance
Taxation Law, the Personal Income Tax Law, and the Corporation Tax Law, the aggregate
housing credit dollar amount that may be allocated among low-income housing projects and
farmworker housing projects. It would also disallow a specified mortgage-related deduction under
the Personal Income Tax Law and provides for allowable credit amounts .
Committee:Assembly Housing and Community Development Committee
Hearing:03/08/2017 9:00 am, State Capitol, Room 126
The text of the bill is Attachment A. The Committee analysis is provided below.
2017 CA A 71: Bill Analysis - 03/07/2017 - Assembly Housing & Community Development
Committee, Hearing Date 03/08/2017
Date of Hearing: March 8, 2017
ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT
David Chiu, Chair
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AB 71 (Chiu) - As Amended March 2, 2017
SUBJECT: Taxes: credits: low-income housing: allocation increase
SUMMARY: Eliminates the mortgage interest deduction on second homes, increases the state
Low-Income Housing Tax Credit (LIHTC) Program by $300 million, and makes changes to the
LIHTC. Specifically, this bill:
1) Eliminates mortgage interest paid on a qualified second home as a deduction taxpayers can
take against their state income tax.
2) Beginning in 2018, and each year thereafter, increases the allocation of state LIHTC by an
additional $300 million and adjusts that amount for inflation beginning in 2019.
3) Beginning in 2018, increase the amount of low-income housing tax credits set-aside for
farmworker housing from $500,000 to $25 million.
4) Provides that any low-income housing tax credits set-aside for farmworker housing
developments that go unused of the $25 million will be available for qualified non-farmworker
housing projects.
5) Provides that a sponsor that receives an award of 9% federal LIHTC cannot receive an
allocation from the additional $300 million of state LIHTC but shall remain eligible for the $70
million allocation available prior to 2017.
6) Provides a newly constructed or the rehabilitated portion of an existing low-income housing
project that is not located in a Difficult to Develop Area (DDA) or a Qualified Census Tract
(QCT) and receives federal 4% LIHTC is eligible for cumulative state LIHTC over four years of
50% of the qualified basis of the building.
7) Provides the acquisition portion of an existing low-income housing project that is not located in
a DDA or a QCT and receives federal 4% LIHTC is eligible for state LIHTC over four years of
13% of the qualified basis of the building.
8) Allows the Tax Credit Allocation Committee (TCAC) to replace federal LIHTC with state
LIHTC for a new or existing low-income housing project that is a located in a DDA or QCT and
receives federal 4% LIHTC of up to 50% of the qualified basis of the building, provided that the
total amount of credits does not exceed 130%.
9) Provides that a low-income housing project is eligible for a cumulative state LIHTC of 95% of
the qualified basis of the building over four years of the eligible basis if it meets all of the
following requirements:
a) It is at least 15 years old;
b) It is a single room occupancy (SRO), special needs housing building, is in a rural area, or
serves households with very-low income or extremely low-income residents;
c) It is serving households of very low or extremely low-income provided that the average income
at the time of admission is no more than 45% of the median gross income adjusted for household
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size; and
d) It would have insufficient state credits to qualify to complete substantial rehabilitation due to a
low appraised value.
10) Adds the following definitions:
a) "Extremely low-income" has the same meaning as Health and Safety Code Section 50053.
b) "Rural area" means a rural area as defined in Health and Safety Code Section 50199.21.
c) "Special needs housing" has the same meaning as paragraph (4) of Subdivision (g) of Section
10325 of Title 4 of the California Code of Regulations.
d) "SRO" means single room occupancy.
e) "Very low-income" has the same meaning as in Health and Safety Code Section 50053.
11) Includes an urgency clause.
EXISTING LAW:
1) Federal Internal Revenue Service (IRS) law allows a taxpayer to deduct the mortgage interest
paid on up to $1 million in mortgage debt on a "qualified residence."
2) Federal IRS law defines a "qualified residence" for purposes of a mortgage interest deduction
as a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that
has sleeping, cooking, and toilet facilities.
3) Federal IRS law defines a "qualified residence" as:
a) A principal residence; or
b) A second residence that is either not rented out for any portion of the year or a second home
that you use for a portion of the year. If a second residence is rented out for a portion of the year a
taxpayer must use this home more than 14 days or more than 10% of the number of days during
the year that the residence is rented at a fair rental, whichever is longer.
4) Allows TCAC to award state LIHTCs to developments in a QCT or a DDA if the project is also
receiving federal LIHTC, under the following conditions:
a) Developments restrict at least 50% of the units to special needs households; and
b) The state credits do not exceed 130% of the eligible basis of the building.
5) Allows TCAC to replace federal LIHTC with state LIHTC of up to 130% of a project's eligible
basis if the federal LIHTC is reduced in an equivalent amount.
6) Defines a QTC as any census tract designated by the Department of Housing and Urban
Development (HUD) in which either 50% or more of the households have an income that is less
than 60% of the area median gross income or that has a poverty rate of at least 25%.
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7) Defines a DDA as an area designated by HUD on an annual basis that has high construction,
land, and utility costs relative to area median gross income.
8) Provides that a low-income housing development that is a new building and is receiving 9%
federal LIHTC credits is eligible to receive state LIHTC over four years of 30% of the qualified
basis of the building.
9) Provides that a low-income housing development that is a new building that is receiving
federal LIHTC, is "at risk of conversion" is eligible to receive state LIHTC over four years of
13% of the qualified basis of the building.
10) Defines "at risk of conversion" to mean a property that satisfies all of the following criteria:
a) A multifamily rental housing development in which at least 50% of the units receive
government assistance pursuant to any of the following:
b) Project based Section 8 vouchers;
c) Below-Market-Interest-Rate Program;
d) Federal Rental Housing Assistance Program;
e) Programs for rent supplement assistance pursuant to Section 101 of the Housing and Urban
Development Act of 1965;
f) Programs pursuant to Section 515 of the Housing Act of 1949; and
g) Federal LIHTC.
11) Includes an urgency clause.
FISCAL EFFECT: Unknown.
COMMENTS:
California has reduced its funding for the creation of affordable homes by 79%, from
approximately $1.7 billion a year to nearly nothing. According to the California Housing
Consortium, California has a shortfall of 1.5 million affordable units for extremely low and
very-low income renter households. The Public Policy Institute of California reports that 32% of
mortgaged homeowners and 47% of renters spend more than one-third of their total household
income on housing and that while California has 12% of the nation's population, it has 20% of the
nation's homeless.
Voter-approved bonds have been an important source of funding to support the creation of
affordable housing. Proposition 46 of 2002 and Proposition 1C of 2006 together provided $4.95
billion for affordable housing. These funds financed the construction, rehabilitation, and
preservation of 57,220 affordable apartments, including 2,500 supportive homes for people
experiencing homelessness, and over 11,600 shelter spaces. In addition, these funds have helped
57,290 families become or remain homeowners. Nearly all of these funds have been awarded.
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In 1945, the Legislature authorized local governments to create redevelopment agencies (RDAs)
to address urban blight in local communities. RDAs were formed by a city or county that would
declare an area blighted and in need of urban renewal. After this declaration, most of the growth
in property tax revenue from the "project area" was distributed to the city or county's RDA as "tax
increment revenues" instead of being distributed as general purpose revenues to other local
agencies serving the area. By 2008, redevelopment was redirecting 12% of property taxes
statewide away from schools and other local taxing entities and into community development and
affordable housing. In fiscal year 2009-10, redevelopment agencies collectively deposited $1.075
billion of property tax increment revenues into their low and moderate-income housing funds.
In 2011, facing a severe budget shortfall, the Governor proposed eliminating RDAs in order to
deliver more property taxes to other local agencies. Ultimately, the Legislature approved and the
Governor signed two measures, AB 26 X1 (Blumenfield), Chapter 5, Statutes of 2011-12 First
Extraordinary Session, and AB 27 X1 (Blumenfield), Chapter 6, Statutes of 2011-12 First
Extraordinary Session, that together dissolved RDAs as they existed at the time and created a
voluntary redevelopment program on a smaller scale. In response, the California Redevelopment
Association (CRA) and the League of California Cities, along with other parties, filed suit
challenging the two measures. The Supreme Court denied the petition for peremptory writ of
mandate with respect to AB 26 X1. However, the Court did grant the petition with respect to AB
27 X1. As a result, all RDAs were required to dissolve as of February 1, 2012.
The Department of Housing and Community Development's California's Housing Future:
Challenges and Opportunities Draft Statewide Housing Assessment 2025 (Assessment) finds,
"unstable funding for affordable home development is impeding our ability to meet California's
housing needs, particularly for lower-income households." In the options to address the state's lack
of affordable housing the Assessment proposes identifying "an ongoing source of funding for
affordable housing that does not add new costs or cost pressures to the state' General Fund, but
that does align with other State policy goals." The report further states "California needs both
public and private investment, as well as land use solutions to address critical housing challenges.
Funding programs cannot address California's housing need alone and land use policy
changes...are critical. However, even with drastic changes in land use policy to increase supply,
the needs of certain populations cannot be met by the private market alone. Funding programs
allow the State to target resources to these populations."
Purpose of this bill: According to the author, "California is undergoing an unprecedented housing
affordability crisis with a shortfall of over one million affordable homes. With the elimination of
California's redevelopment agencies and the exhaustion of state housing bonds, California has
reduced its funding for the development and preservation of affordable homes by 79% -- from
approximately $1.7 billion a year to nearly nothing. There is currently no permanent source of
funding to compensate for this loss. The housing crisis has contributed to a growing homeless
population, increased pressure on local public safety nets, and the outward migration of thousands
of long-time California residents. The state's primary housing program is the mortgage interest
deduction. We invest $5 billion a year in individuals who have already purchased homes while
over half of our state is made up of renters. In addition, we invest approximately $300 million to
subsidize owners with the means to purchase not one, but two homes. In the face of a severe
housing crisis, it is necessary to reevaluate this investment and redirect the revenues subsidizing
those with second homes to the LIHTC."
Mortgage interest deduction: In conformity with federal law, California law allows taxpayers to
deduct the mortgage interest paid on up to $1 million in debt for a principal and second residence.
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deduct the mortgage interest paid on up to $1 million in debt for a principal and second residence.
A second residence is limited to a home that is either not rented out at any point in the year or one
that the taxpayer can rent out but must also live in for part of the year. Taxpayers can deduct
mortgage interest from both their federal and state tax liability. According to the Franchise Tax
Board (FTB), the mortgage interest deduction resulted in approximately $5 billion in revenue loss
for 2016-17 of which $360 million is a result of interest deducted on second homes. According to
the FTB, on average about 4.2 million taxpayers claim a mortgage interest deduction each year on
taxable returns over the last few years. Based on federal data from Fannie Mae, 4.76% of the
mortgage market is made up of second homes, so approximately 195,000 of California taxpayers
or .5% of the state's total population take a mortgage interest deduction on a second home.
According to the FTB the average deduction for a second home in California is roughly $11,600,
and at an average tax rate of 8% the average taxpayer would reduce their taxes by $928.
According to the U.S. Center on Budget and Policy Priorities, the mortgage interest deduction is a
regressive tax that benefits those at higher incomes that itemize deductions. In 2012, 77% of the
benefits went to homeowners with incomes above $100,000. Meanwhile, close to half of
homeowners with mortgages -- most of them middle- and lower-income families -- receive no
benefit from the deduction. Approximately 35% of the benefits went to homeowners with
incomes above $200,000 and taxpayers in this income group who claimed the deduction received
an average subsidy of about $5,000. According to the California Budget and Policy Center, in
California of the total $3.8 billion in reduced tax revenue from the mortgage interest deduction in
2012, $2.8 billion or 72% went to households with incomes of $100,000 or more. Those
households represent 43% of the households claiming the deduction.
In regards to the mortgage interest deduction, the FTB states in California Income Tax
Expenditures: Compendium of Individual Provisions, Report for 2013 Tax Year Data, "whether or
not increasing homeownership is a valid goal, most economists believe that the value of the tax
break is generally capitalized into the value of the home. In other words, on average, housing
prices should increase by the expected tax savings over the time period that the house will be
owned. Therefore this deduction does not actually make housing more affordable for
homeowners. Instead it results in a transfer from the state treasury to people who already owned
homes at the time the deduction was granted or, in the case of new construction, to whomever
owned the land at the time it becomes obvious that the land will be zoned for residential use. In
fact, homeowners who do not itemize or whose income places them in low rate brackets are
likely to find housing less affordable because they will not receive a tax reduction large enough to
offset the increasing prices of housing. Additionally if the goal is to encourage homeownership
there is no reason to extend the benefit to second homes."
According to a 1990 report issued by the Legislative Analyst's Office (LAO) "the primary
rationale for the current mortgage interest deduction is to provide a financial incentive for
families to buy a home. However, the tax subsidy made available under this program undoubtedly
accrues as a windfall benefit to taxpayers who would have purchased homes anyway, and it
encourages the purchase of bigger and more expensive homes, as well as vacation homes rather
than basic housing." The report goes on to make recommendations to reform the mortgage interest
deduction "to reduce the incentives it currently provides to purchase luxury homes and vacation
homes" including to limit the total amount of interest deducted each year or to disallow interest
deductions on second homes. At the time the LAO estimated the revenue gain from eliminating
the deduction for second homes would be $55 million to $65 million annually.
AB 71 proposes to eliminate the mortgage interest deduction on second homes which on average
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AB 71 proposes to eliminate the mortgage interest deduction on second homes which on average
results in $300 million in lost revenue to the state each year and increase the LIHTC by $300
million. Taxpayers could continue to deduct mortgage interest from their federal tax liability.
Low-Income Housing Tax Credit Program: In 1986, the federal government authorized the
LIHTC program to enable affordable housing developers to raise private capital through the sale
of tax credits to investors. Two types of federal tax credits are available and are generally referred
to as 9% and 4% credits. TCAC administers the program and awards credits to qualified
developers who can then sell those credits to private investors who use the credits to reduce their
federal tax liability. The developer in turn invests the capital into the affordable housing project.
Each state receives an annual ceiling of 9% federal tax credits. In 2015 it was $2.30 per capita,
which worked out to $94 million in credits in California that can be taken by investors each year
for 10 years. Federal LIHTCs are oversubscribed by a 3:1 ratio. Unlike 9% LIHTC, federal 4%
tax credits are not capped, however they must be used in conjunction with tax-exempt private
activity mortgage revenue bonds which are capped and are administered by the California Debt
Limit Allocation Committee
In 1987, the legislature authorized a state LIHTC program to augment the federal tax credit
program. State tax credits can only be awarded to projects that also receive federal LIHTCs,
except for farmworker housing projects, which can receive state credits without federal credits.
Investors can claim the state credit over four years. Projects that receive either state or federal tax
credits are required to maintain the housing at affordable levels for 55 years.
Changes to the LIHTC: AB 71 would increase the state LIHTC allocation by an additional $300
million to fill the gap in funding that was created by the loss of redevelopment and the exhaustion
of state voter-approved bonds. In addition to increasing the total amount of state LIHTC, AB 71
proposes to increase the amount of state tax credits awarded to a project that is also receiving 4%
federal tax credits from 13% to 50% of the qualified basis. This would more than triple the
amount of equity that an investor purchasing a state tax credit would receive which would bring
the return on 4% credits in line with 9% credits and result in greater affordability for the project.
Federal LIHTC can be used anywhere in the state, but projects are given an additional 30% boost
on their eligible basis if the project is located in a DDA or a QCT. Because these areas by
definition have a higher-poverty level and there is a higher concentration of extremely
low-income or homeless individuals and families, housing needs deep subsidy to make it
affordable. Existing state law does not allow state tax credits to be awarded in DDAs and QCTs
with one exception: housing developments where 50% of the units are for special needs
populations. The rationale for this prohibition is projects in these areas can qualify for more
federal tax credits and therefore are already advantaged. AB 71 would also allow state tax credits
to be awarded to projects without regard to DDA or QCT status with the main purpose of
providing enough state tax credits to match the value of a 9% federal tax credit.
AB 71 includes a set-aside from the $300 million increase to the LIHTC program of $25 million
for farmworker housing. There is currently a $500,000 set-aside of low-income housing tax
credits for farmworker housing developments serving farmworkers and their families. AB 71
would require any unused credits from the $25 million set-aside to go to qualified
non-farmworker housing projects that don't receive funding under the main program.
Many low-income housing developments in the state are older and in need of rehabilitation. These
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projects need higher levels of equity investments because of their age, level of repairs needed, and
the low rents. It is hard for these projects to compete for state tax credits because the assessed
value is low and therefore the eligible basis upon which the amount of tax credits the project can
qualify for is also low. To assist these older projects, AB 71 would allow them to receive state tax
credits of 95% over four years. To qualify, projects would need to be at least 15 years old, serve
low and extremely low-income households, be an SRO, in a rural area, and have insufficient state
credits to complete substantial rehabilitation due to a low appraised value.
Arguments in support:
According to California Tax Reform Association, there is no valid public policy reason for the
second home mortgage interest deduction. The major tax benefit from second homeownership is
federal and will continue with this bill. Since there is no other budget or statutory policy of the
state to encourage second homes, the only policy argument for this provision is conformity with
federal law. While sometimes the state conforms to federal law because of complexity, there is
little complexity to disallowing the mortgage interest deduction for a second home.
Arguments in opposition:
The California Association of Realtors (CAR) is opposed to AB 71 unless it is amended to
remove the elimination of the mortgage interest deduction for second homes. CAR supports
increasing the amount of tax credits available for low income housing however, they argue that
the amount of the mortgage interest deduction is already capped regardless of whether the
taxpayer has one home or two, that second homes may not necessarily be "vacation" homes but
could be used by owners who commute to work during the week, and that the economic health of
recreational areas in the state would be harmed by eliminating the mortgage interest deduction on
second homes.
Related legislation: AB 35 (Chiu) (2015) increased the LIHTC by $300 million and did not
include the elimination of the mortgage interest deduction. The bill was approved 79-0 on the
Assembly Floor and was vetoed by the Governor.
Double referred: If AB 71 passes out of this committee, the bill will be referred to the Committee
on Revenue and Taxation.
REGISTERED SUPPORT / OPPOSITION:
Support
California Housing Consortium (co-sponsor)
California Housing Partnership (co-sponsor)
Housing California (co-sponsor)
Abode Communities
ACCE
Affirmed Housing
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Betty T. Yee, California State Controller
California Alternative Payment Program Association
California Apartment Association
California Bicycle Coalition
California Coalition for Rural Housing
California Community Economic Development Association
California Reinvestment Coalition
California Tax Reform Association
CCraig Consulting
Christian Church Homes
City of Oakland
Community Development Commission of Mendocino County
Community Housing Opportunities Corporation
Community Housing Partnership
Council of Community Housing Organizations, San Francisco
Downtown Women's Center
EAH Housing
East Bay Developmental Disabilities Legislative Coalition
East bay Housing Organizations
Eden Housing
Family Care Network, Inc.
First Place for Youth
Fred Finch Youth Center
Fresno Housing Authority
Friends Committee on Legislation of California
Greenbelt Alliance
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Grounded Solutions Network
Highridge Costa Companies
House Farm Workers!
Housing Authority of the County of Santa Barbara
Housing Choices Coalition
Housing Consortium of the East Bay
Housing Trust Fund, San Luis Obispo County
Housing Trust Silicon Valley
Innovative Housing Opportunities
John Stewart Company
LeadingAge California
LifeSteps
LINC Housing
Little Tokyo Service Center
Manzanita Services
Mercy Housing
MidPen Housing Corporation
Move LA
Mutual Housing California
Napa Valley Community Housing
Non-Profit Housing Association of Northern California
Promise Energy
Public Advocates
Resources for Community Development
Rural Community Assistance Corporation
Sacramento Housing Alliance
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San Diego Housing Federation
Satellite Affordable Housing Associates
Self-Help Enterprises
Skid Row Housing Trust
Small Business for Affordable Housing, Petaluma
Southern California Association of Nonprofit Housing
State Building and Construction Trades Council of California
SV@Home
Tenderloin Neighborhood Development Corporation
The Kennedy Commission
The Pacific Companies
Wakeland Housing and Development Corporation
Opposition
California Association of Realtors
Analysis Prepared by: Lisa Engel / H. & C.D. / 916-319-2085
Recommendation(s)/Next Step(s):
Fiscal Impact (if any):
Unknown at this time.
Attachments
Attachment A: Bill Text AB 71
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AMENDED IN ASSEMBLY MARCH 2, 2017
california legislature—2017–18 regular session
ASSEMBLY BILL No. 71
Introduced by Assembly Members Chiu, Bonta, and Kalra
(Coauthors: Assembly Members Mullin, Ting, and McCarty
McCarty, Mullin, and Ting)
December 16, 2016
An act to amend Sections 12206, 17058, 17225, and 23610.5 of the
Revenue and Taxation Code, relating to taxation, and declaring the
urgency thereof, to take effect immediately.
legislative counsel’s digest
AB 71, as amended, Chiu. Taxes: Income taxes: credits: low-income
housing: allocation increase. farmworker housing.
Existing
(1) Existing law establishes a low-income housing tax credit program
pursuant to which the California Tax Credit Allocation Committee
provides procedures and requirements for the allocation allocation, in
modified conformity with federal law, of state insurance, personal
income, and corporation tax credit amounts among to qualified
low-income housing projects in modified conformity to federal law that
have been allocated, or qualify for, a federal low-income housing tax
credit, and for farmworker housing. Existing law limits the total annual
amount of the state low-income housing credit for which a federal
low-income housing credit is required to the sum of $70,000,000, as
increased by any percentage increase in the Consumer Price Index for
the preceding calendar year, any unused credit for the preceding calendar
years, and the amount of housing credit ceiling returned in the calendar
year. Existing law additionally allows a state credit, which is not
98
Attachment A
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dependent on receiving a federal low-income housing credit; the
aggregate of which is credit, of $500,000 per calendar year for projects
to provide farmworker housing. For purposes of determining the credit
amount, existing law defines the term “applicable percentage”
depending on, among other things, whether the qualified low-income
building is a new building that is not federally subsidized, a new building
that is federally subsidized, or is an existing building that is “at risk of
conversion.” Except for specified special needs applications for projects
within a difficult development area (DDA) or qualified census tract
(QCT), existing law authorizes all credit ceiling applications to request
state credits provided that the applicant is not requesting a 130% basis
adjustment for purposes of calculating the federal credit award amount.
This bill, under the Insurance Taxation Law, law governing the
taxation of insurers, the Personal Income Tax Law, and the Corporation
Tax Law, for calendar years beginning in 2018, would increase the
aggregate housing credit dollar amount that may be allocated among
low-income housing projects to $300,000,000, as specified, and would
allocate to farmworker housing projects $500,000 $25,000,000 per year
of that amount. The bill would delete that special needs exception and
authorization to request state credits provided the applicant is not
requesting a 130% basis adjustment for purposes of the federal credit
amount. The bill, under the insurance taxation law, the Personal Income
Tax Law, and the Corporation Tax Law, those laws, would modify the
definition of applicable percentage relating to qualified low-income
buildings that meet specified criteria. to depend on whether the building
is a new or existing building not located in a DDA or QCT and federally
subsidized, a new or existing building located in a DDA or QCT and
federally subsidized, or a building that is, among other things, at least
15 years old, serving households of very low income or extremely low
income, and will complete substantial rehabilitation, as specified.
The
(2) The Personal Income Tax Law allows various deductions in
computing the income that is subject to the taxes imposed by that law,
including allowing a deduction for a limited amount of interest paid or
accrued on mortgages for a taxpayer’s 2nd residence, in modified
conformity with federal income tax laws.
This bill would disallow that deduction.
This bill would declare that it is to take effect immediately as an
urgency statute.
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Attachment A
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Vote: 2⁄3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. This act shall be known and may be cited as the
line 2 Bring California Home Act.
line 3 SECTION 1.
line 4 SEC. 2. Section 12206 of the Revenue and Taxation Code is
line 5 amended to read:
line 6 12206. (a) (1) There shall be allowed as a credit against the
line 7 “tax,” as described by Section 12201, a state low-income housing
line 8 tax credit in an amount equal to the amount determined in
line 9 subdivision (c), computed in accordance with Section 42 of the
line 10 Internal Revenue Code, relating to low-income housing credit,
line 11 except as otherwise provided in this section.
line 12 (2) “Taxpayer,” for purposes of this section, means the sole
line 13 owner in the case of a “C” corporation, the partners in the case of
line 14 a partnership, members in the case of a limited liability company,
line 15 and the shareholders in the case of an “S” corporation.
line 16 (3) “Housing sponsor,” for purposes of this section, means the
line 17 sole owner in the case of a “C” corporation, the partnership in the
line 18 case of a partnership, the limited liability company in the case of
line 19 a limited liability company, and the “S” corporation in the case of
line 20 an “S” corporation.
line 21 (4) “Extremely low income households” has the same meaning
line 22 as in Section 50053 of the Health and Safety Code.
line 23 (5) “Very low income households” has the same meaning as in
line 24 Section 50053 of the Health and Safety Code.
line 25 (b) (1) The amount of the credit allocated to any housing
line 26 sponsor shall be authorized by the California Tax Credit Allocation
line 27 Committee, or any successor thereof, based on a project’s need
line 28 for the credit for economic feasibility in accordance with the
line 29 requirements of this section.
line 30 (A) Except for projects to provide farmworker housing, as
line 31 defined in subdivision (h) of Section 50199.7 of the Health and
line 32 Safety Code, that are allocated credits solely under the set-aside
line 33 described in subdivision (c) of Section 50199.20 of the Health and
line 34 Safety Code, the low-income housing project shall be located in
line 35 California and shall meet either of the following requirements:
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AB 71— 3 — Attachment A
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line 1 (i) The project’s housing sponsor has been allocated by the
line 2 California Tax Credit Allocation Committee a credit for federal
line 3 income tax purposes under Section 42 of the Internal Revenue
line 4 Code, relating to low-income housing credit.
line 5 (ii) It qualifies for a credit under Section 42(h)(4)(B) of the
line 6 Internal Revenue Code, relating to special rule where 50 percent
line 7 or more of building is financed with tax-exempt bonds subject to
line 8 volume cap.
line 9 (B) The California Tax Credit Allocation Committee shall not
line 10 require fees for the credit under this section in addition to those
line 11 fees required for applications for the tax credit pursuant to Section
line 12 42 of the Internal Revenue Code, relating to low-income housing
line 13 credit. The committee may require a fee if the application for the
line 14 credit under this section is submitted in a calendar year after the
line 15 year the application is submitted for the federal tax credit.
line 16 (C) (i) For a project that receives a preliminary reservation of
line 17 the state low-income housing tax credit, allowed pursuant to
line 18 subdivision (a), on or after January 1, 2009, and before January 1,
line 19 2020, the credit shall be allocated to the partners of a partnership
line 20 owning the project in accordance with the partnership agreement,
line 21 regardless of how the federal low-income housing tax credit with
line 22 respect to the project is allocated to the partners, or whether the
line 23 allocation of the credit under the terms of the agreement has
line 24 substantial economic effect, within the meaning of Section 704(b)
line 25 of the Internal Revenue Code, relating to determination of
line 26 distributive share.
line 27 (ii) This subparagraph shall not apply to a project that receives
line 28 a preliminary reservation of state low-income housing tax credits
line 29 under the set-aside described in subdivision (c) of Section 50199.20
line 30 of the Health and Safety Code unless the project also receives a
line 31 preliminary reservation of federal low-income housing tax credits.
line 32 (2) (A) The California Tax Credit Allocation Committee shall
line 33 certify to the housing sponsor the amount of tax credit under this
line 34 section allocated to the housing sponsor for each credit period.
line 35 (B) In the case of a partnership or an “S” corporation, the
line 36 housing sponsor shall provide a copy of the California Tax Credit
line 37 Allocation Committee certification to the taxpayer.
line 38 (C) The taxpayer shall attach a copy of the certification to any
line 39 return upon which a tax credit is claimed under this section.
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Attachment A
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line 1 (D) In the case of a failure to attach a copy of the certification
line 2 for the year to the return in which a tax credit is claimed under this
line 3 section, no credit under this section shall be allowed for that year
line 4 until a copy of that certification is provided.
line 5 (E) All elections made by the taxpayer pursuant to Section 42
line 6 of the Internal Revenue Code, relating to low-income housing
line 7 credit, shall apply to this section.
line 8 (F) (i) The California Tax Credit Allocation Committee may
line 9 allocate a credit under this section in exchange for a credit allocated
line 10 pursuant to Section 42(d)(5)(B) of the Internal Revenue Code,
line 11 relating to increase in credit for buildings in high-cost areas, in
line 12 amounts up to 30 percent of the eligible basis of a building if the
line 13 credits allowed under Section 42 of the Internal Revenue Code,
line 14 relating to low-income housing credit, are reduced by an equivalent
line 15 amount.
line 16 (ii) An equivalent amount shall be determined by the California
line 17 Tax Credit Allocation Committee based upon the relative amount
line 18 required to produce an equivalent state tax credit to the taxpayer.
line 19 (c) Section 42(b) of the Internal Revenue Code, relating to
line 20 applicable percentage: 70 percent present value credit for certain
line 21 new buildings; 30 percent present value credit for certain other
line 22 buildings, shall be modified as follows:
line 23 (1) In the case of any qualified low-income building that is a
line 24 new building, as defined in Section 42 of the Internal Revenue
line 25 Code, relating to low-income housing credit, and the regulations
line 26 promulgated thereunder, and not federally subsidized, the term
line 27 “applicable percentage” means the following:
line 28 (A) For each of the first three years, the percentage prescribed
line 29 by the Secretary of the Treasury for new buildings that are not
line 30 federally subsidized for the taxable year, determined in accordance
line 31 with the requirements of Section 42(b)(1) of the Internal Revenue
line 32 Code, relating to determination of applicable percentage.
line 33 (B) For the fourth year, the difference between 30 percent and
line 34 the sum of the applicable percentages for the first three years.
line 35 (2) In the case of any qualified low-income building that (A) is
line 36 a new building, as defined in Section 42 of the Internal Revenue
line 37 Code, relating to low-income housing credit, and the regulations
line 38 promulgated thereunder, (B) not located in designated difficult
line 39 development areas (DDAs) or qualified census tracts (QCTs), as
line 40 defined in Section 42(d)(5)(B) of the Internal Revenue Code,
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AB 71— 5 — Attachment A
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line 1 relating to increase in credit for buildings in high cost areas, and
line 2 (C) is federally subsidized, the term “applicable percentage” means
line 3 for the first three years, 15 percent of the qualified basis of the
line 4 building, and for the fourth year, 5 percent of the qualified basis
line 5 of the building.
line 6 (3) In the case of any qualified low-income building that is (A)
line 7 an existing building, as defined in Section 42 of the Internal
line 8 Revenue Code, relating to low-income housing credit, and the
line 9 regulations promulgated thereunder, (B) not located in designated
line 10 difficult development areas (DDAs) or qualified census tracts
line 11 (QCTs), as defined in Section 42(d)(5)(B) of the Internal Revenue
line 12 Code, relating to increase in credit for buildings in high cost areas,
line 13 and (C) is federally subsidized, the term applicable percentage
line 14 means the following:
line 15 (i) For each of the first three years, the percentage prescribed
line 16 by the Secretary of the Treasury for new buildings that are federally
line 17 subsidized for the taxable year.
line 18 (ii) For the fourth year, the difference between 13 percent and
line 19 the sum of the applicable percentages for the first three years.
line 20 (4) In the case of any qualified low-income building that is (A)
line 21 a new or an existing building, (B) located in designated difficult
line 22 development areas (DDAs) or qualified census tracts (QCTs) as
line 23 defined in Section 42(d)(5)(B), 42(d)(5)(B) of the Internal Revenue
line 24 Code, relating to increase in credit for buildings in high cost areas,
line 25 of the Internal Revenue Code, and (C) federally subsidized, the
line 26 California Tax Credit Allocation Committee shall reduce the
line 27 amount of California credit to be allocated under paragraphs (2)
line 28 and (3) by taking into account the increased federal credit received
line 29 due to the basis boost provided under Section 42(d)(5)(B),
line 30 42(d)(5)(B) of the Internal Revenue Code, relating to increase in
line 31 credit for buildings in high cost areas, of the Internal Revenue
line 32 Code. areas.
line 33 (5) In the case of any qualified low-income building that meets
line 34 all of the requirements of subparagraphs (A) through (D), inclusive,
line 35 the term “applicable percentage” means 30 percent for each of the
line 36 first three years and 5 percent for the fourth year. A qualified
line 37 low-income building receiving an allocation under this paragraph
line 38 is ineligible to also receive an allocation under paragraph (3).
line 39 (A) The qualified low-income building is at least 15 years old.
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line 1 (B) The qualified low-income building is serving households
line 2 of very low income or extremely low income such that the average
line 3 maximum household income as restricted, pursuant to an existing
line 4 regulatory agreement with a federal, state, county, local, or other
line 5 governmental agency, is not more than 45 percent of the area
line 6 median gross income, as determined under Section 42 of the
line 7 Internal Revenue Code, relating to low-income housing credit,
line 8 adjusted by household size, and a tax credit regulatory agreement
line 9 is entered into for a period of not less than 55 years restricting the
line 10 average targeted household income to no more than 45 percent of
line 11 the area median income.
line 12 (C) The qualified low-income building would have insufficient
line 13 credits under paragraphs (2) and (3) to complete substantial
line 14 rehabilitation due to a low appraised value.
line 15 (D) The qualified low-income building will complete the
line 16 substantial rehabilitation in connection with the credit allocation
line 17 herein.
line 18 (d) The term “qualified low-income housing project” as defined
line 19 in Section 42(c)(2) of the Internal Revenue Code, relating to
line 20 qualified low-income building, is modified by adding the following
line 21 requirements:
line 22 (1) The taxpayer shall be entitled to receive a cash distribution
line 23 from the operations of the project, after funding required reserves,
line 24 that, at the election of the taxpayer, is equal to:
line 25 (A) An amount not to exceed 8 percent of the lesser of:
line 26 (i) The owner equity that shall include the amount of the capital
line 27 contributions actually paid to the housing sponsor and shall not
line 28 include any amounts until they are paid on an investor note.
line 29 (ii) Twenty percent of the adjusted basis of the building as of
line 30 the close of the first taxable year of the credit period.
line 31 (B) The amount of the cashflow from those units in the building
line 32 that are not low-income units. For purposes of computing cashflow
line 33 under this subparagraph, operating costs shall be allocated to the
line 34 low-income units using the “floor space fraction,” as defined in
line 35 Section 42 of the Internal Revenue Code, relating to low-income
line 36 housing credit.
line 37 (C) Any amount allowed to be distributed under subparagraph
line 38 (A) that is not available for distribution during the first five years
line 39 of the compliance period may be accumulated and distributed any
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line 1 time during the first 15 years of the compliance period but not
line 2 thereafter.
line 3 (2) The limitation on return shall apply in the aggregate to the
line 4 partners if the housing sponsor is a partnership and in the aggregate
line 5 to the shareholders if the housing sponsor is an “S” corporation.
line 6 (3) The housing sponsor shall apply any cash available for
line 7 distribution in excess of the amount eligible to be distributed under
line 8 paragraph (1) to reduce the rent on rent-restricted units or to
line 9 increase the number of rent-restricted units subject to the tests of
line 10 Section 42(g)(1) of the Internal Revenue Code, relating to in
line 11 general.
line 12 (e) The provisions of Section 42(f) of the Internal Revenue
line 13 Code, relating to definition and special rules relating to credit
line 14 period, shall be modified as follows:
line 15 (1) The term “credit period” as defined in Section 42(f)(1) of
line 16 the Internal Revenue Code, relating to credit period defined, is
line 17 modified by substituting “four taxable years” for “10 taxable
line 18 years.”
line 19 (2) The special rule for the first taxable year of the credit period
line 20 under Section 42(f)(2) of the Internal Revenue Code, relating to
line 21 special rule for 1st year of credit period, shall not apply to the tax
line 22 credit under this section.
line 23 (3) Section 42(f)(3) of the Internal Revenue Code, relating to
line 24 determination of applicable percentage with respect to increases
line 25 in qualified basis after 1st year of credit period, is modified to
line 26 read:
line 27 If, as of the close of any taxable year in the compliance period,
line 28 after the first year of the credit period, the qualified basis of any
line 29 building exceeds the qualified basis of that building as of the close
line 30 of the first year of the credit period, the housing sponsor, to the
line 31 extent of its tax credit allocation, shall be eligible for a credit on
line 32 the excess in an amount equal to the applicable percentage
line 33 determined pursuant to subdivision (c) for the four-year period
line 34 beginning with the taxable year in which the increase in qualified
line 35 basis occurs.
line 36 (f) The provisions of Section 42(h) of the Internal Revenue
line 37 Code, relating to limitation on aggregate credit allowable with
line 38 respect to projects located in a state, shall be modified as follows:
line 39 (1) Section 42(h)(2) of the Internal Revenue Code, relating to
line 40 allocated credit amount to apply to all taxable years ending during
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line 1 or after credit allocation year, Code shall not be applicable and
line 2 instead the following provisions shall be applicable:
line 3 The total amount for the four-year credit period of the housing
line 4 credit dollars allocated in a calendar year to any building shall
line 5 reduce the aggregate housing credit dollar amount of the California
line 6 Tax Credit Allocation Committee for the calendar year in which
line 7 the allocation is made.
line 8 (2) Paragraphs (3), (4), (5), (6)(E)(I)(II), (6)(F), (6)(G), (6)(I),
line 9 (7), and (8) of Section 42(h) of the Internal Revenue Code, relating
line 10 to limitation on aggregate credit allowable with respect to projects
line 11 located in a state, shall not be applicable.
line 12 (g) The aggregate housing credit dollar amount that may be
line 13 allocated annually by the California Tax Credit Allocation
line 14 Committee pursuant to this section, Section 17058, and Section
line 15 23610.5 shall be an amount equal to the sum of all the following:
line 16 (1) (A) Seventy million dollars ($70,000,000) for the 2001
line 17 calendar year, and, for the 2002 calendar year and each calendar
line 18 year thereafter, seventy million dollars ($70,000,000) increased
line 19 by the percentage, if any, by which the Consumer Price Index for
line 20 the preceding calendar year exceeds the Consumer Price Index for
line 21 the 2001 calendar year. For the purposes of this paragraph, the
line 22 term “Consumer Price Index” means the last Consumer Price Index
line 23 for All Urban Consumers published by the federal Department of
line 24 Labor.
line 25 (B) Three hundred million dollars ($300,000,000) for the 2018
line 26 calendar year, and, for the 2019 calendar year and each calendar
line 27 year thereafter, three hundred million dollars ($300,000,000)
line 28 increased by the percentage, if any, by which the Consumer Price
line 29 Index for the preceding calendar year exceeds the Consumer Price
line 30 Index for the 2018 calendar year. For the purposes of this
line 31 paragraph, the term “Consumer Price Index” means the last
line 32 Consumer Price Index for All Urban Consumers published by the
line 33 federal Department of Labor. A housing sponsor receiving an
line 34 allocation under paragraph (1) of subdivision (c) shall not be
line 35 eligible for receipt of the housing credit allocated from the
line 36 increased amount under this subparagraph. A housing sponsor
line 37 receiving an allocation under paragraph (1) of subdivision (c) shall
line 38 remain eligible for receipt of the housing credit allocated from the
line 39 credit ceiling amount under subparagraph (A).
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line 1 (2) The unused housing credit ceiling, if any, for the preceding
line 2 calendar years.
line 3 (3) The amount of housing credit ceiling returned in the calendar
line 4 year. For purposes of this paragraph, the amount of housing credit
line 5 dollar amount returned in the calendar year equals the housing
line 6 credit dollar amount previously allocated to any project that does
line 7 not become a qualified low-income housing project within the
line 8 period required by this section or to any project with respect to
line 9 which an allocation is canceled by mutual consent of the California
line 10 Tax Credit Allocation Committee and the allocation recipient.
line 11 (4) (A) Five hundred thousand dollars ($500,000) Of the amount
line 12 allocated pursuant to subparagraph (B) of paragraph (1),
line 13 twenty-five million dollars ($25,000,000) per calendar year for
line 14 projects to provide farmworker housing, as defined in subdivision
line 15 (h) of Section 50199.7 of the Health and Safety Code.
line 16 (B) Five hundred thousand dollars ($500,000) of the amount
line 17 allocated pursuant to subparagraph (B) of paragraph (1) per
line 18 calendar year for projects to provide farmworker housing, as
line 19 defined in subdivision (h) of Section 50199.7 of the Health and
line 20 Safety Code.
line 21 (B) The amount of any unallocated or returned credits pursuant
line 22 to this paragraph per calendar year shall be added to the
line 23 aggregate amount of credits allocated pursuant to subparagraph
line 24 (B) of paragraph (1).
line 25 (5) The amount of any unallocated or returned credits under
line 26 former Sections 17053.14, 23608.2, and 23608.3, as those sections
line 27 read prior to January 1, 2009, until fully exhausted for projects to
line 28 provide farmworker housing, as defined in subdivision (h) of
line 29 Section 50199.7 of the Health and Safety Code.
line 30 (h) The term “compliance period” as defined in Section 42(i)(1)
line 31 of the Internal Revenue Code, relating to compliance period, is
line 32 modified to mean, with respect to any building, the period of 30
line 33 consecutive taxable years beginning with the first taxable year of
line 34 the credit period with respect thereto.
line 35 (i) (1) Section 42(j) of the Internal Revenue Code, relating to
line 36 recapture of credit, shall not be applicable and the provisions in
line 37 paragraph (2) shall be substituted in its place.
line 38 (2) The requirements of this section shall be set forth in a
line 39 regulatory agreement between the California Tax Credit Allocation
line 40 Committee and the housing sponsor, and the regulatory agreement
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line 1 shall be subordinated, when required, to any lien or encumbrance
line 2 of any banks or other institutional lenders to the project. The
line 3 regulatory agreement entered into pursuant to subdivision (f) of
line 4 Section 50199.14 of the Health and Safety Code, shall apply,
line 5 provided that the agreement includes all of the following
line 6 provisions:
line 7 (A) A term not less than the compliance period.
line 8 (B) A requirement that the agreement be recorded in the official
line 9 records of the county in which the qualified low-income housing
line 10 project is located.
line 11 (C) A provision stating which state and local agencies can
line 12 enforce the regulatory agreement in the event the housing sponsor
line 13 fails to satisfy any of the requirements of this section.
line 14 (D) A provision that the regulatory agreement shall be deemed
line 15 a contract enforceable by tenants as third-party beneficiaries thereto
line 16 and that allows individuals, whether prospective, present, or former
line 17 occupants of the building, who meet the income limitation
line 18 applicable to the building, the right to enforce the regulatory
line 19 agreement in any state court.
line 20 (E) A provision incorporating the requirements of Section 42
line 21 of the Internal Revenue Code, relating to low-income housing
line 22 credit, as modified by this section.
line 23 (F) A requirement that the housing sponsor notify the California
line 24 Tax Credit Allocation Committee or its designee and the local
line 25 agency that can enforce the regulatory agreement if there is a
line 26 determination by the Internal Revenue Service that the project is
line 27 not in compliance with Section 42(g) of the Internal Revenue Code,
line 28 relating to qualified low-income housing project.
line 29 (G) A requirement that the housing sponsor, as security for the
line 30 performance of the housing sponsor’s obligations under the
line 31 regulatory agreement, assign the housing sponsor’s interest in rents
line 32 that it receives from the project, provided that until there is a
line 33 default under the regulatory agreement, the housing sponsor is
line 34 entitled to collect and retain the rents.
line 35 (H) The remedies available in the event of a default under the
line 36 regulatory agreement that is not cured within a reasonable cure
line 37 period, include, but are not limited to, allowing any of the parties
line 38 designated to enforce the regulatory agreement to collect all rents
line 39 with respect to the project; taking possession of the project and
line 40 operating the project in accordance with the regulatory agreement
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line 1 until the enforcer determines the housing sponsor is in a position
line 2 to operate the project in accordance with the regulatory agreement;
line 3 applying to any court for specific performance; securing the
line 4 appointment of a receiver to operate the project; or any other relief
line 5 as may be appropriate.
line 6 (j) (1) The committee shall allocate the housing credit on a
line 7 regular basis consisting of two or more periods in each calendar
line 8 year during which applications may be filed and considered. The
line 9 committee shall establish application filing deadlines, the maximum
line 10 percentage of federal and state low-income housing tax credit
line 11 ceiling that may be allocated by the committee in that period, and
line 12 the approximate date on which allocations shall be made. If the
line 13 enactment of federal or state law, the adoption of rules or
line 14 regulations, or other similar events prevent the use of two allocation
line 15 periods, the committee may reduce the number of periods and
line 16 adjust the filing deadlines, maximum percentage of credit allocated,
line 17 and allocation dates.
line 18 (2) The committee shall adopt a qualified allocation plan, as
line 19 provided in Section 42(m)(1) of the Internal Revenue Code, relating
line 20 to plans for allocation of credit among projects. In adopting this
line 21 plan, the committee shall comply with the provisions of Sections
line 22 42(m)(1)(B) and 42(m)(1)(C) of the Internal Revenue Code,
line 23 relating to qualified allocation plan and relating to certain selection
line 24 criteria must be used, respectively.
line 25 (3) Notwithstanding Section 42(m) of the Internal Revenue
line 26 Code, relating to responsibilities of housing credit agencies, the
line 27 California Tax Credit Allocation Committee shall allocate housing
line 28 credits in accordance with the qualified allocation plan and
line 29 regulations, which shall include the following provisions:
line 30 (A) All housing sponsors, as defined by paragraph (3) of
line 31 subdivision (a), shall demonstrate at the time the application is
line 32 filed with the committee that the project meets the following
line 33 threshold requirements:
line 34 (i) The housing sponsor shall demonstrate there is a need and
line 35 demand for low-income housing in the community or region for
line 36 which it is proposed.
line 37 (ii) The project’s proposed financing, including tax credit
line 38 proceeds, shall be sufficient to complete the project and that the
line 39 proposed operating income shall be adequate to operate the project
line 40 for the extended use period.
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line 1 (iii) The project shall have enforceable financing commitments,
line 2 either construction or permanent financing, for at least 50 percent
line 3 of the total estimated financing of the project.
line 4 (iv) The housing sponsor shall have and maintain control of the
line 5 site for the project.
line 6 (v) The housing sponsor shall demonstrate that the project
line 7 complies with all applicable local land use and zoning ordinances.
line 8 (vi) The housing sponsor shall demonstrate that the project
line 9 development team has the experience and the financial capacity
line 10 to ensure project completion and operation for the extended use
line 11 period.
line 12 (vii) The housing sponsor shall demonstrate the amount of tax
line 13 credit that is necessary for the financial feasibility of the project
line 14 and its viability as a qualified low-income housing project
line 15 throughout the extended use period, taking into account operating
line 16 expenses, a supportable debt service, reserves, funds set aside for
line 17 rental subsidies and required equity, and a development fee that
line 18 does not exceed a specified percentage of the eligible basis of the
line 19 project prior to inclusion of the development fee in the eligible
line 20 basis, as determined by the committee.
line 21 (B) The committee shall give a preference to those projects
line 22 satisfying all of the threshold requirements of subparagraph (A)
line 23 if both of the following apply:
line 24 (i) The project serves the lowest income tenants at rents
line 25 affordable to those tenants.
line 26 (ii) The project is obligated to serve qualified tenants for the
line 27 longest period.
line 28 (C) In addition to the provisions of subparagraphs (A) and (B),
line 29 the committee shall use the following criteria in allocating housing
line 30 credits:
line 31 (i) Projects serving large families in which a substantial number,
line 32 as defined by the committee, of all residential units are low-income
line 33 units with three or more bedrooms.
line 34 (ii) Projects providing single-room occupancy units serving
line 35 very low income tenants.
line 36 (iii) (I) Existing projects that are “at risk of conversion.”
line 37 (II) For purposes of this section, the term “at risk of conversion,”
line 38 with respect to an existing property means a property that satisfies
line 39 all of the following criteria:
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line 1 (ia) The property is a multifamily rental housing development
line 2 in which at least 50 percent of the units receive governmental
line 3 assistance pursuant to any of the following:
line 4 (Ia) New construction, substantial rehabilitation, moderate
line 5 rehabilitation, property disposition, and loan management set-aside
line 6 programs, or any other program providing project-based assistance
line 7 pursuant to Section 8 of the United States Housing Act of 1937,
line 8 Section 1437f of Title 42 of the United States Code, as amended.
line 9 (Ib) The Below-Market-Interest-Rate Program pursuant to
line 10 Section 221(d)(3) of the National Housing Act, Sections
line 11 1715l(d)(3) and (5) of Title 12 of the United States Code.
line 12 (Ic) Section 236 of the National Housing Act, Section 1715z-1
line 13 of Title 12 of the United States Code.
line 14 (Id) Programs for rent supplement assistance pursuant to Section
line 15 18 101 of the Housing and Urban Development Act of 1965,
line 16 Section 1701s of Title 12 of the United States Code, as amended.
line 17 (Ie) Programs pursuant to Section 515 of the Housing Act of
line 18 1949, Section 1485 of Title 42 of the United States Code, as
line 19 amended.
line 20 (If) The low-income housing credit program set forth in Section
line 21 42 of the Internal Revenue Code, relating to low-income housing
line 22 credits.
line 23 (ib) The restrictions on rent and income levels will terminate
line 24 or the federal insured mortgage on the property is eligible for
line 25 prepayment any time within five years before or after the date of
line 26 application to the California Tax Credit Allocation Committee.
line 27 (ic) The entity acquiring the property enters into a regulatory
line 28 agreement that requires the property to be operated in accordance
line 29 with the requirements of this section for a period equal to the
line 30 greater of 55 years or the life of the property.
line 31 (id) The property satisfies the requirements of Section 42(e) of
line 32 the Internal Revenue Code, regarding rehabilitation expenditures,
line 33 except that the provisions of Section 42(e)(3)(A)(ii)(I) shall not
line 34 apply.
line 35 (iv) Projects for which a public agency provides direct or indirect
line 36 long-term financial support for at least 15 percent of the total
line 37 project development costs or projects for which the owner’s equity
line 38 constitutes at least 30 percent of the total project development
line 39 costs.
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line 1 (v) Projects that provide tenant amenities not generally available
line 2 to residents of low-income housing projects.
line 3 (4) For purposes of allocating credits pursuant to this section,
line 4 the committee shall not give preference to any project by virtue
line 5 of the date of submission of its application except to break a tie
line 6 when two or more of the projects have an equal rating.
line 7 (k) Section 42(l) of the Internal Revenue Code, relating to
line 8 certifications and other reports to secretary, shall be modified as
line 9 follows:
line 10 The term “secretary” shall be replaced by the term “Franchise
line 11 Tax Board.”
line 12 (l) In the case where the credit allowed under this section
line 13 exceeds the “tax,” the excess may be carried over to reduce the
line 14 “tax” in the following year, and succeeding years if necessary,
line 15 until the credit has been exhausted.
line 16 (m) The provisions of Section 11407(a) of Public Law 101-508,
line 17 relating to the effective date of the extension of the low-income
line 18 housing credit, shall apply to calendar years after 1993.
line 19 (n) The provisions of Section 11407(c) of Public Law 101-508,
line 20 relating to election to accelerate credit, shall not apply.
line 21 (o) (1) For a project that receives a preliminary reservation
line 22 under this section beginning on or after January 1, 2016, and before
line 23 January 1, 2020, a taxpayer may make an irrevocable election in
line 24 its application to the California Tax Credit Allocation Committee
line 25 to sell all or any portion of any credit allowed under this section
line 26 to one or more unrelated parties for each taxable year in which the
line 27 credit is allowed subject to both of the following conditions:
line 28 (A) The credit is sold for consideration that is not less than 80
line 29 percent of the amount of the credit.
line 30 (B) The unrelated party or parties purchasing any or all of the
line 31 credit pursuant to this subdivision is a taxpayer allowed the credit
line 32 under this section for the taxable year of the purchase or any prior
line 33 taxable year or is a taxpayer allowed the federal credit under
line 34 Section 42 of the Internal Revenue Code, relating to low-income
line 35 housing credit, for the taxable year of the purchase or any prior
line 36 taxable year in connection with any project located in this state.
line 37 For purposes of this subparagraph, “taxpayer allowed the credit
line 38 under this section” means a taxpayer that is allowed the credit
line 39 under this section without regard to the purchase of a credit
line 40 pursuant to this subdivision.
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line 1 (2) (A) The taxpayer that originally received the credit shall
line 2 report to the California Tax Credit Allocation Committee within
line 3 10 days of the sale of the credit, in the form and manner specified
line 4 by the California Tax Credit Allocation Committee, all required
line 5 information regarding the purchase and sale of the credit, including
line 6 the social security or other taxpayer identification number of the
line 7 unrelated party or parties to whom the credit has been sold, the
line 8 face amount of the credit sold, and the amount of consideration
line 9 received by the taxpayer for the sale of the credit.
line 10 (B) The California Tax Credit Allocation Committee shall
line 11 provide an annual listing to the Franchise Tax Board, in a form
line 12 and manner agreed upon by the California Tax Credit Allocation
line 13 Committee and the Franchise Tax Board, of the taxpayers that
line 14 have sold or purchased a credit pursuant to this subdivision.
line 15 (3) (A) A credit may be sold pursuant to this subdivision to
line 16 more than one unrelated party.
line 17 (B) (i) Except as provided in clause (ii), a credit shall not be
line 18 resold by the unrelated party to another taxpayer or other party.
line 19 (ii) All or any portion of any credit allowed under this section
line 20 may be resold once by an original purchaser to one or more
line 21 unrelated parties, subject to all of the requirements of this
line 22 subdivision.
line 23 (4) Notwithstanding any other law, the taxpayer that originally
line 24 received the credit that is sold pursuant to paragraph (1) shall
line 25 remain solely liable for all obligations and liabilities imposed on
line 26 the taxpayer by this section with respect to the credit, none of
line 27 which shall apply to a party to whom the credit has been sold or
line 28 subsequently transferred. Parties that purchase credits pursuant to
line 29 paragraph (1) shall be entitled to utilize the purchased credits in
line 30 the same manner in which the taxpayer that originally received
line 31 the credit could utilize them.
line 32 (5) A taxpayer shall not sell a credit allowed by this section if
line 33 the taxpayer was allowed the credit on any tax return of the
line 34 taxpayer.
line 35 (6) Notwithstanding paragraph (1), the taxpayer, with the
line 36 approval of the Executive Director of the California Tax Credit
line 37 Allocation Committee, may rescind the election to sell all or any
line 38 portion of the credit allowed under this section if the consideration
line 39 for the credit falls below 80 percent of the amount of the credit
line 40 after the California Tax Credit Allocation Committee reservation.
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line 1 (p) The California Tax Credit Allocation Committee may
line 2 prescribe rules, guidelines, or procedures necessary or appropriate
line 3 to carry out the purposes of this section, including any guidelines
line 4 regarding the allocation of the credit allowed under this section.
line 5 Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
line 6 3 of Title 2 of the Government Code shall not apply to any rule,
line 7 guideline, or procedure prescribed by the California Tax Credit
line 8 Allocation Committee pursuant to this section.
line 9 (q) This section shall remain in effect for as long as Section 42
line 10 of the Internal Revenue Code, relating to low-income housing
line 11 credit, remains in effect.
line 12 SEC. 2.
line 13 SEC. 3. Section 17058 of the Revenue and Taxation Code is
line 14 amended to read:
line 15 17058. (a) (1) There shall be allowed as a credit against the
line 16 “net tax,” defined in Section 17039, a state low-income housing
line 17 tax credit in an amount equal to the amount determined in
line 18 subdivision (c), computed in accordance with Section 42 of the
line 19 Internal Revenue Code, relating to low-income housing credit,
line 20 except as otherwise provided in this section.
line 21 (2) “Taxpayer,” for purposes of this section, means the sole
line 22 owner in the case of an individual, the partners in the case of a
line 23 partnership, and the shareholders in the case of an “S” corporation.
line 24 (3) “Housing sponsor,” for purposes of this section, means the
line 25 sole owner in the case of an individual, the partnership in the case
line 26 of a partnership, and the “S” corporation in the case of an “S”
line 27 corporation.
line 28 (4) “Extremely low income households” has the same meaning
line 29 as in Section 50053 of the Health and Safety Code.
line 30 (5) “Very low income households” has the same meaning as in
line 31 Section 50053 of the Health and Safety Code.
line 32 (b) (1) The amount of the credit allocated to any housing
line 33 sponsor shall be authorized by the California Tax Credit Allocation
line 34 Committee, or any successor thereof, based on a project’s need
line 35 for the credit for economic feasibility in accordance with the
line 36 requirements of this section.
line 37 (A) The low-income housing project shall be located in
line 38 California and shall meet either of the following requirements:
line 39 (i) Except for projects to provide farmworker housing, as defined
line 40 in subdivision (h) of Section 50199.7 of the Health and Safety
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line 1 Code, that are allocated credits solely under the set-aside described
line 2 in subdivision (c) of Section 50199.20 of the Health and Safety
line 3 Code, the project’s housing sponsor has been allocated by the
line 4 California Tax Credit Allocation Committee a credit for federal
line 5 income tax purposes under Section 42 of the Internal Revenue
line 6 Code, relating to low-income housing credit.
line 7 (ii) It qualifies for a credit under Section 42(h)(4)(B) of the
line 8 Internal Revenue Code, relating to special rule where 50 percent
line 9 or more of building is financed with tax-exempt bonds subject to
line 10 volume cap.
line 11 (B) The California Tax Credit Allocation Committee shall not
line 12 require fees for the credit under this section in addition to those
line 13 fees required for applications for the tax credit pursuant to Section
line 14 42 of the Internal Revenue Code, relating to low-income housing
line 15 credit. The committee may require a fee if the application for the
line 16 credit under this section is submitted in a calendar year after the
line 17 year the application is submitted for the federal tax credit.
line 18 (C) (i) For a project that receives a preliminary reservation of
line 19 the state low-income housing tax credit, allowed pursuant to
line 20 subdivision (a), on or after January 1, 2009, and before January 1,
line 21 2020, the credit shall be allocated to the partners of a partnership
line 22 owning the project in accordance with the partnership agreement,
line 23 regardless of how the federal low-income housing tax credit with
line 24 respect to the project is allocated to the partners, or whether the
line 25 allocation of the credit under the terms of the agreement has
line 26 substantial economic effect, within the meaning of Section 704(b)
line 27 of the Internal Revenue Code, relating to determination of
line 28 distributive share.
line 29 (ii) To the extent the allocation of the credit to a partner under
line 30 this section lacks substantial economic effect, any loss or deduction
line 31 otherwise allowable under this part that is attributable to the sale
line 32 or other disposition of that partner’s partnership interest made prior
line 33 to the expiration of the federal credit shall not be allowed in the
line 34 taxable year in which the sale or other disposition occurs, but shall
line 35 instead be deferred until and treated as if it occurred in the first
line 36 taxable year immediately following the taxable year in which the
line 37 federal credit period expires for the project described in clause (i).
line 38 (iii) This subparagraph shall not apply to a project that receives
line 39 a preliminary reservation of state low-income housing tax credits
line 40 under the set-aside described in subdivision (c) of Section 50199.20
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line 1 of the Health and Safety Code unless the project also receives a
line 2 preliminary reservation of federal low-income housing tax credits.
line 3 (2) (A) The California Tax Credit Allocation Committee shall
line 4 certify to the housing sponsor the amount of tax credit under this
line 5 section allocated to the housing sponsor for each credit period.
line 6 (B) In the case of a partnership, or an “S” corporation, the
line 7 housing sponsor shall provide a copy of the California Tax Credit
line 8 Allocation Committee certification to the taxpayer.
line 9 (C) The taxpayer shall, upon request, provide a copy of the
line 10 certification to the Franchise Tax Board.
line 11 (D) All elections made by the taxpayer pursuant to Section 42
line 12 of the Internal Revenue Code, relating to low-income housing
line 13 credit, shall apply to this section.
line 14 (E) (i) The California Tax Credit Allocation Committee may
line 15 allocate a credit under this section in exchange for a credit allocated
line 16 pursuant to Section 42(d)(5)(B) of the Internal Revenue Code,
line 17 relating to increase in credit for buildings in high-cost areas, in
line 18 amounts up to 30 percent of the eligible basis of a building if the
line 19 credits allowed under Section 42 of the Internal Revenue Code,
line 20 relating to low-income housing credit, are reduced by an equivalent
line 21 amount.
line 22 (ii) An equivalent amount shall be determined by the California
line 23 Tax Credit Allocation Committee based upon the relative amount
line 24 required to produce an equivalent state tax credit to the taxpayer.
line 25 (c) Section 42(b) of the Internal Revenue Code, relating to
line 26 applicable percentage: 70 percent present value credit for certain
line 27 new buildings; 30 percent present value credit for certain other
line 28 buildings, shall be modified as follows:
line 29 (1) In the case of any qualified low-income building that is a
line 30 new building, as defined in Section 42 of the Internal Revenue
line 31 Code, relating to low-income housing credit, and the regulations
line 32 promulgated thereunder, and not federally subsidized, the term
line 33 “applicable percentage” means the following:
line 34 (A) For each of the first three years, the percentage prescribed
line 35 by the Secretary of the Treasury for new buildings that are not
line 36 federally subsidized for the taxable year, determined in accordance
line 37 with the requirements of Section 42(b)(1) of the Internal Revenue
line 38 Code, relating to determination of applicable percentage.
line 39 (B) For the fourth year, the difference between 30 percent and
line 40 the sum of the applicable percentages for the first three years.
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line 1 (2) In the case of any qualified low-income building that (A) is
line 2 a new building, as defined in Section 42 of the Internal Revenue
line 3 Code, relating to low-income housing credit, and the regulations
line 4 promulgated thereunder, (B) not located in designated difficult
line 5 development areas (DDAs) or qualified census tracts (QCTs), as
line 6 defined in Section 42(d)(5)(B) of the Internal Revenue Code,
line 7 relating to increase in credit for buildings in high cost areas, and
line 8 (C) is federally subsidized, the term “applicable percentage” means
line 9 for the first three years, 15 percent of the qualified basis of the
line 10 building, and for the fourth year, 5 percent of the qualified basis
line 11 of the building.
line 12 (3) In the case of any qualified low-income building that is (A)
line 13 an existing building, as defined in Section 42 of the Internal
line 14 Revenue Code, relating to low-income housing credit, and the
line 15 regulations promulgated thereunder, (B) not located in designated
line 16 difficult development areas (DDAs) or qualified census tracts
line 17 (QCTs), as defined in Section 42(d)(5)(B) of the Internal Revenue
line 18 Code, relating to an increase in credit for buildings in high-cost
line 19 areas, and (C) is federally subsidized, the term applicable
line 20 percentage means the following:
line 21 (i) For each of the first three years, the percentage prescribed
line 22 by the Secretary of the Treasury for new buildings that are federally
line 23 subsidized for the taxable year.
line 24 (ii) For the fourth year, the difference between 13 percent and
line 25 the sum of the applicable percentages for the first three years.
line 26 (4) In the case of any qualified low-income building that is (A)
line 27 a new or an existing building, (B) located in designated difficult
line 28 development areas (DDAs) or qualified census tracts (QCTs) as
line 29 defined in Section 42(d)(5)(B) of the Internal Revenue Code,
line 30 relating to increase in credit for buildings in high cost areas, and
line 31 (C) federally subsidized, the California Tax Credit Allocation
line 32 Committee shall reduce the amount of California credit to be
line 33 allocated under paragraphs (2) and (3) by taking into account the
line 34 increased federal credit received due to the basis boost provided
line 35 under Section 42(d)(5)(B) of the Internal Revenue Code, relating
line 36 to increase in credit for buildings in high cost areas.
line 37 (5) In the case of any qualified low-income building that meets
line 38 all of the requirements of subparagraphs (A) through (D), inclusive,
line 39 the term “applicable percentage” means 30 percent for each of the
line 40 first three years and 5 percent for the fourth year. A qualified
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line 1 low-income building receiving an allocation under this paragraph
line 2 is ineligible to also receive an allocation under paragraph (3).
line 3 (A) The qualified low-income building is at least 15 years old.
line 4 (B) The qualified low-income building is serving households
line 5 of very low-income or extremely low-income such that the average
line 6 maximum household income as restricted, pursuant to an existing
line 7 regulatory agreement with a federal, state, county, local, or other
line 8 governmental agency, is not more than 45 percent of the area
line 9 median gross income, as determined under Section 42 of the
line 10 Internal Revenue Code, relating to low-income housing credit,
line 11 adjusted by household size, and a tax credit regulatory agreement
line 12 is entered into for a period of not less than 55 years restricting the
line 13 average targeted household income to no more than 45 percent of
line 14 the area median income.
line 15 (C) The qualified low-income building would have insufficient
line 16 credits under paragraphs (2) and (3) to complete substantial
line 17 rehabilitation due to a low appraised value.
line 18 (D) The qualified low-income building will complete the
line 19 substantial rehabilitation in connection with the credit allocation
line 20 herein.
line 21 (d) The term “qualified low-income housing project” as defined
line 22 in Section 42(c)(2) of the Internal Revenue Code, relating to
line 23 qualified low-income building, is modified by adding the following
line 24 requirements:
line 25 (1) The taxpayer shall be entitled to receive a cash distribution
line 26 from the operations of the project, after funding required reserves,
line 27 that, at the election of the taxpayer, is equal to:
line 28 (A) An amount not to exceed 8 percent of the lesser of:
line 29 (i) The owner equity that shall include the amount of the capital
line 30 contributions actually paid to the housing sponsor and shall not
line 31 include any amounts until they are paid on an investor note.
line 32 (ii) Twenty percent of the adjusted basis of the building as of
line 33 the close of the first taxable year of the credit period.
line 34 (B) The amount of the cashflow from those units in the building
line 35 that are not low-income units. For purposes of computing cashflow
line 36 under this subparagraph, operating costs shall be allocated to the
line 37 low-income units using the “floor space fraction,” as defined in
line 38 Section 42 of the Internal Revenue Code, relating to low-income
line 39 housing credit.
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line 1 (C) Any amount allowed to be distributed under subparagraph
line 2 (A) that is not available for distribution during the first five years
line 3 of the compliance period may be accumulated and distributed any
line 4 time during the first 15 years of the compliance period but not
line 5 thereafter.
line 6 (2) The limitation on return shall apply in the aggregate to the
line 7 partners if the housing sponsor is a partnership and in the aggregate
line 8 to the shareholders if the housing sponsor is an “S” corporation.
line 9 (3) The housing sponsor shall apply any cash available for
line 10 distribution in excess of the amount eligible to be distributed under
line 11 paragraph (1) to reduce the rent on rent-restricted units or to
line 12 increase the number of rent-restricted units subject to the tests of
line 13 Section 42(g)(1) of the Internal Revenue Code, relating to in
line 14 general.
line 15 (e) The provisions of Section 42(f) of the Internal Revenue
line 16 Code, relating to definition and special rules relating to credit
line 17 period, shall be modified as follows:
line 18 (1) The term “credit period” as defined in Section 42(f)(1) of
line 19 the Internal Revenue Code, relating to credit period defined, is
line 20 modified by substituting “four taxable years” for “10 taxable
line 21 years.”
line 22 (2) The special rule for the first taxable year of the credit period
line 23 under Section 42(f)(2) of the Internal Revenue Code, relating to
line 24 special rules for 1st year of credit period, shall not apply to the tax
line 25 credit under this section.
line 26 (3) Section 42(f)(3) of the Internal Revenue Code, relating to
line 27 determination of applicable percentage with respect to increases
line 28 in qualified basis after 1st year of credit period, is modified to
line 29 read:
line 30 If, as of the close of any taxable year in the compliance period,
line 31 after the first year of the credit period, the qualified basis of any
line 32 building exceeds the qualified basis of that building as of the close
line 33 of the first year of the credit period, the housing sponsor, to the
line 34 extent of its tax credit allocation, shall be eligible for a credit on
line 35 the excess in an amount equal to the applicable percentage
line 36 determined pursuant to subdivision (c) for the four-year period
line 37 beginning with the taxable year in which the increase in qualified
line 38 basis occurs.
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line 1 (f) The provisions of Section 42(h) of the Internal Revenue
line 2 Code, relating to limitation on aggregate credit allowable with
line 3 respect to projects located in a state, shall be modified as follows:
line 4 (1) Section 42(h)(2) of the Internal Revenue Code, relating to
line 5 allocated credit amount to apply to all taxable years ending during
line 6 or after credit allocation year, shall not be applicable and instead
line 7 the following provisions shall be applicable.
line 8 The total amount for the four-year credit period of the housing
line 9 credit dollars allocated in a calendar year to any building shall
line 10 reduce the aggregate housing credit dollar amount of the California
line 11 Tax Credit Allocation Committee for the calendar year in which
line 12 the allocation is made.
line 13 (2) Paragraphs (3), (4), (5), (6)(E)(I)(II), (6)(F), (6)(G), (6)(I),
line 14 (7), and (8) of Section 42(h) of the Internal Revenue Code, relating
line 15 to limitation on aggregate credit allowable with respect to projects
line 16 located in a state, do not apply to this section.
line 17 (g) The aggregate housing credit dollar amount that may be
line 18 allocated annually by the California Tax Credit Allocation
line 19 Committee pursuant to this section, Section 12206, and Section
line 20 23610.5 shall be an amount equal to the sum of all the following:
line 21 (1) (A) Seventy million dollars ($70,000,000) for the 2001
line 22 calendar year, and, for the 2002 calendar year and each calendar
line 23 year thereafter, seventy million dollars ($70,000,000) increased
line 24 by the percentage, if any, by which the Consumer Price Index for
line 25 the preceding calendar year exceeds the Consumer Price Index for
line 26 the 2001 calendar year. For the purposes of this paragraph, the
line 27 term “Consumer Price Index” means the last Consumer Price Index
line 28 for All Urban Consumers published by the federal Department of
line 29 Labor.
line 30 (B) Three hundred million dollars ($300,000,000) for the 2018
line 31 calendar year, and, for the 2019 calendar year and each calendar
line 32 year thereafter, three hundred million dollars ($300,000,000)
line 33 increased by the percentage, if any, by which the Consumer Price
line 34 Index for the preceding calendar year exceeds the Consumer Price
line 35 Index for the 2018 calendar year. For the purposes of this
line 36 paragraph, the term “Consumer Price Index” means the last
line 37 Consumer Price Index for All Urban Consumers published by the
line 38 federal Department of Labor. A housing sponsor receiving an
line 39 allocation under paragraph (1) of subdivision (c) shall not be
line 40 eligible for receipt of the housing credit allocated from the
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line 1 increased amount under this subparagraph. A housing sponsor
line 2 receiving an allocation under paragraph (1) of subdivision (c) shall
line 3 remain eligible for receipt of the housing credit allocated from the
line 4 credit ceiling amount under subparagraph (A).
line 5 (2) The unused housing credit ceiling, if any, for the preceding
line 6 calendar years.
line 7 (3) The amount of housing credit ceiling returned in the calendar
line 8 year. For purposes of this paragraph, the amount of housing credit
line 9 dollar amount returned in the calendar year equals the housing
line 10 credit dollar amount previously allocated to any project that does
line 11 not become a qualified low-income housing project within the
line 12 period required by this section or to any project with respect to
line 13 which an allocation is canceled by mutual consent of the California
line 14 Tax Credit Allocation Committee and the allocation recipient.
line 15 (4) (A) Five hundred thousand dollars ($500,000) Of the amount
line 16 allocated pursuant to subparagraph (B) of paragraph (1),
line 17 twenty-five million dollars ($25,000,000) per calendar year for
line 18 projects to provide farmworker housing, as defined in subdivision
line 19 (h) of Section 50199.7 of the Health and Safety Code.
line 20 (B) Five hundred thousand dollars ($500,000) of the amount
line 21 allocated pursuant to subparagraph (B) of paragraph (1) per
line 22 calendar year for projects to provide farmworker housing, as
line 23 defined in subdivision (h) of Section 50199.7 of the Health and
line 24 Safety Code.
line 25 (B) The amount of any unallocated or returned credits pursuant
line 26 to this paragraph per calendar year shall be added to the
line 27 aggregate amount of credits allocated pursuant to subparagraph
line 28 (B) of paragraph (1).
line 29 (5) The amount of any unallocated or returned credits under
line 30 former Sections 17053.14, 23608.2, and 23608.3, as those sections
line 31 read prior to January 1, 2009, until fully exhausted for projects to
line 32 provide farmworker housing, as defined in subdivision (h) of
line 33 Section 50199.7 of the Health and Safety Code.
line 34 (h) The term “compliance period” as defined in Section 42(i)(1)
line 35 of the Internal Revenue Code, relating to compliance period, is
line 36 modified to mean, with respect to any building, the period of 30
line 37 consecutive taxable years beginning with the first taxable year of
line 38 the credit period with respect thereto.
line 39 (i) Section 42(j) of the Internal Revenue Code, relating to
line 40 recapture of credit, shall not be applicable and the following
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line 1 requirements of this section shall be set forth in a regulatory
line 2 agreement between the California Tax Credit Allocation Committee
line 3 and the housing sponsor, and the regulatory agreement shall be
line 4 subordinated, when required, to any lien or encumbrance of any
line 5 banks or other institutional lenders to the project. The regulatory
line 6 agreement entered into pursuant to subdivision (f) of Section
line 7 50199.14 of the Health and Safety Code shall apply, provided that
line 8 the agreement includes all of the following provisions:
line 9 (1) A term not less than the compliance period.
line 10 (2) A requirement that the agreement be recorded in the official
line 11 records of the county in which the qualified low-income housing
line 12 project is located.
line 13 (3) A provision stating which state and local agencies can
line 14 enforce the regulatory agreement in the event the housing sponsor
line 15 fails to satisfy any of the requirements of this section.
line 16 (4) A provision that the regulatory agreement shall be deemed
line 17 a contract enforceable by tenants as third-party beneficiaries thereto
line 18 and that allows individuals, whether prospective, present, or former
line 19 occupants of the building, who meet the income limitation
line 20 applicable to the building, the right to enforce the regulatory
line 21 agreement in any state court.
line 22 (5) A provision incorporating the requirements of Section 42
line 23 of the Internal Revenue Code, relating to low-income housing
line 24 credit, as modified by this section.
line 25 (6) A requirement that the housing sponsor notify the California
line 26 Tax Credit Allocation Committee or its designee if there is a
line 27 determination by the Internal Revenue Service that the project is
line 28 not in compliance with Section 42(g) of the Internal Revenue Code,
line 29 relating to qualified low-income housing project.
line 30 (7) A requirement that the housing sponsor, as security for the
line 31 performance of the housing sponsor’s obligations under the
line 32 regulatory agreement, assign the housing sponsor’s interest in rents
line 33 that it receives from the project, provided that until there is a
line 34 default under the regulatory agreement, the housing sponsor is
line 35 entitled to collect and retain the rents.
line 36 (8) The remedies available in the event of a default under the
line 37 regulatory agreement that is not cured within a reasonable cure
line 38 period, include, but are not limited to, allowing any of the parties
line 39 designated to enforce the regulatory agreement to collect all rents
line 40 with respect to the project; taking possession of the project and
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line 1 operating the project in accordance with the regulatory agreement
line 2 until the enforcer determines the housing sponsor is in a position
line 3 to operate the project in accordance with the regulatory agreement;
line 4 applying to any court for specific performance; securing the
line 5 appointment of a receiver to operate the project; or any other relief
line 6 as may be appropriate.
line 7 (j) (1) The committee shall allocate the housing credit on a
line 8 regular basis consisting of two or more periods in each calendar
line 9 year during which applications may be filed and considered. The
line 10 committee shall establish application filing deadlines, the maximum
line 11 percentage of federal and state low-income housing tax credit
line 12 ceiling that may be allocated by the committee in that period, and
line 13 the approximate date on which allocations shall be made. If the
line 14 enactment of federal or state law, the adoption of rules or
line 15 regulations, or other similar events prevent the use of two allocation
line 16 periods, the committee may reduce the number of periods and
line 17 adjust the filing deadlines, maximum percentage of credit allocated,
line 18 and allocation dates.
line 19 (2) The committee shall adopt a qualified allocation plan, as
line 20 provided in Section 42(m)(1) of the Internal Revenue Code, relating
line 21 to plans for allocation of credit among projects. In adopting this
line 22 plan, the committee shall comply with the provisions of Sections
line 23 42(m)(1)(B) and 42(m)(1)(C) of the Internal Revenue Code,
line 24 relating to qualified allocation plan and relating to certain selection
line 25 criteria must be used, respectively.
line 26 (3) Notwithstanding Section 42(m) of the Internal Revenue
line 27 Code, relating to responsibilities of housing credit agencies, the
line 28 California Tax Credit Allocation Committee shall allocate housing
line 29 credits in accordance with the qualified allocation plan and
line 30 regulations, which shall include the following provisions:
line 31 (A) All housing sponsors, as defined by paragraph (3) of
line 32 subdivision (a), shall demonstrate at the time the application is
line 33 filed with the committee that the project meets the following
line 34 threshold requirements:
line 35 (i) The housing sponsor shall demonstrate there is a need and
line 36 demand for low-income housing in the community or region for
line 37 which it is proposed.
line 38 (ii) The project’s proposed financing, including tax credit
line 39 proceeds, shall be sufficient to complete the project and that the
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line 1 proposed operating income shall be adequate to operate the project
line 2 for the extended use period.
line 3 (iii) The project shall have enforceable financing commitments,
line 4 either construction or permanent financing, for at least 50 percent
line 5 of the total estimated financing of the project.
line 6 (iv) The housing sponsor shall have and maintain control of the
line 7 site for the project.
line 8 (v) The housing sponsor shall demonstrate that the project
line 9 complies with all applicable local land use and zoning ordinances.
line 10 (vi) The housing sponsor shall demonstrate that the project
line 11 development team has the experience and the financial capacity
line 12 to ensure project completion and operation for the extended use
line 13 period.
line 14 (vii) The housing sponsor shall demonstrate the amount of tax
line 15 credit that is necessary for the financial feasibility of the project
line 16 and its viability as a qualified low-income housing project
line 17 throughout the extended use period, taking into account operating
line 18 expenses, a supportable debt service, reserves, funds set aside for
line 19 rental subsidies and required equity, and a development fee that
line 20 does not exceed a specified percentage of the eligible basis of the
line 21 project prior to inclusion of the development fee in the eligible
line 22 basis, as determined by the committee.
line 23 (B) The committee shall give a preference to those projects
line 24 satisfying all of the threshold requirements of subparagraph (A)
line 25 if both of the following apply:
line 26 (i) The project serves the lowest income tenants at rents
line 27 affordable to those tenants.
line 28 (ii) The project is obligated to serve qualified tenants for the
line 29 longest period.
line 30 (C) In addition to the provisions of subparagraphs (A) and (B),
line 31 the committee shall use the following criteria in allocating housing
line 32 credits:
line 33 (i) Projects serving large families in which a substantial number,
line 34 as defined by the committee, of all residential units are low-income
line 35 units with three or more bedrooms.
line 36 (ii) Projects providing single-room occupancy units serving
line 37 very low income tenants.
line 38 (iii) (I) Existing projects that are “at risk of conversion.”
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line 1 (II) For purposes of this section, the term “at risk of conversion,”
line 2 with respect to an existing property means a property that satisfies
line 3 all of the following criteria:
line 4 (ia) The property is a multifamily rental housing development
line 5 in which at least 50 percent of the units receive governmental
line 6 assistance pursuant to any of the following:
line 7 (Ia) New construction, substantial rehabilitation, moderate
line 8 rehabilitation, property disposition, and loan management set-aside
line 9 programs, or any other program providing project-based assistance
line 10 pursuant to Section 8 of the United States Housing Act of 1937,
line 11 Section 1437f of Title 42 of the United States Code, as amended.
line 12 (Ib) The Below-Market-Interest-Rate Program pursuant to
line 13 Section 221(d)(3) of the National Housing Act, Sections
line 14 1715l(d)(3) and (5) of Title 12 of the United States Code.
line 15 (Ic) Section 236 of the National Housing Act, Section 1715z-1
line 16 of Title 12 of the United States Code.
line 17 (Id) Programs for rent supplement assistance pursuant to Section
line 18 18 101 of the Housing and Urban Development Act of 1965,
line 19 Section 1701s of Title 12 of the United States Code, as amended.
line 20 (Ie) Programs pursuant to Section 515 of the Housing Act of
line 21 1949, Section 1485 of Title 42 of the United States Code, as
line 22 amended.
line 23 (If) The low-income housing credit program set forth in Section
line 24 42 of the Internal Revenue Code.
line 25 (ib) The restrictions on rent and income levels will terminate
line 26 or the federal insured mortgage on the property is eligible for
line 27 prepayment any time within five years before or after the date of
line 28 application to the California Tax Credit Allocation Committee.
line 29 (ic) The entity acquiring the property enters into a regulatory
line 30 agreement that requires the property to be operated in accordance
line 31 with the requirements of this section for a period equal to the
line 32 greater of 55 years or the life of the property.
line 33 (id) The property satisfies the requirements of Section 42(e) of
line 34 the Internal Revenue Code, regarding rehabilitation expenditures
line 35 except that the provisions of Section 42(e)(3)(A)(ii)(I) shall not
line 36 apply.
line 37 (iv) Projects for which a public agency provides direct or indirect
line 38 long-term financial support for at least 15 percent of the total
line 39 project development costs or projects for which the owner’s equity
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line 1 constitutes at least 30 percent of the total project development
line 2 costs.
line 3 (v) Projects that provide tenant amenities not generally available
line 4 to residents of low-income housing projects.
line 5 (4) For purposes of allocating credits pursuant to this section,
line 6 the committee shall not give preference to any project by virtue
line 7 of the date of submission of its application.
line 8 (k) Section 42(l) of the Internal Revenue Code, relating to
line 9 certifications and other reports to secretary, shall be modified as
line 10 follows:
line 11 The term “secretary” shall be replaced by the term “Franchise
line 12 Tax Board.”
line 13 (l) In the case where the credit allowed under this section
line 14 exceeds the net tax, the excess may be carried over to reduce the
line 15 net tax in the following year, and succeeding taxable years, if
line 16 necessary, until the credit has been exhausted.
line 17 (m) A project that received an allocation of a 1989 federal
line 18 housing credit dollar amount shall be eligible to receive an
line 19 allocation of a 1990 state housing credit dollar amount, subject to
line 20 all of the following conditions:
line 21 (1) The project was not placed in service prior to 1990.
line 22 (2) To the extent the amendments made to this section by the
line 23 Statutes of 1990 conflict with any provisions existing in this section
line 24 prior to those amendments, the prior provisions of law shall prevail.
line 25 (3) Notwithstanding paragraph (2), a project applying for an
line 26 allocation under this subdivision shall be subject to the
line 27 requirements of paragraph (3) of subdivision (j).
line 28 (n) The credit period with respect to an allocation of credit in
line 29 1989 by the California Tax Credit Allocation Committee of which
line 30 any amount is attributable to unallocated credit from 1987 or 1988
line 31 shall not begin until after December 31, 1989.
line 32 (o) The provisions of Section 11407(a) of Public Law 101-508,
line 33 relating to the effective date of the extension of the low-income
line 34 housing credit, shall apply to calendar years after 1989.
line 35 (p) The provisions of Section 11407(c) of Public Law 101-508,
line 36 relating to election to accelerate credit, shall not apply.
line 37 (q) (1) For a project that receives a preliminary reservation
line 38 under this section beginning on or after January 1, 2016, and before
line 39 January 1, 2020, a taxpayer may make an irrevocable election in
line 40 its application to the California Tax Credit Allocation Committee
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line 1 to sell all or any portion of any credit allowed under this section
line 2 to one or more unrelated parties for each taxable year in which the
line 3 credit is allowed subject to both of the following conditions:
line 4 (A) The credit is sold for consideration that is not less than 80
line 5 percent of the amount of the credit.
line 6 (B) The unrelated party or parties purchasing any or all of the
line 7 credit pursuant to this subdivision is a taxpayer allowed the credit
line 8 under this section for the taxable year of the purchase or any prior
line 9 taxable year or is a taxpayer allowed the federal credit under
line 10 Section 42 of the Internal Revenue Code, relating to low-income
line 11 housing credit, for the taxable year of the purchase or any prior
line 12 taxable year in connection with any project located in this state.
line 13 For purposes of this subparagraph, “taxpayer allowed the credit
line 14 under this section” means a taxpayer that is allowed the credit
line 15 under this section without regard to the purchase of a credit
line 16 pursuant to this subdivision.
line 17 (2) (A) The taxpayer that originally received the credit shall
line 18 report to the California Tax Credit Allocation Committee within
line 19 10 days of the sale of the credit, in the form and manner specified
line 20 by the California Tax Credit Allocation Committee, all required
line 21 information regarding the purchase and sale of the credit, including
line 22 the social security or other taxpayer identification number of the
line 23 unrelated party or parties to whom the credit has been sold, the
line 24 face amount of the credit sold, and the amount of consideration
line 25 received by the taxpayer for the sale of the credit.
line 26 (B) The California Tax Credit Allocation Committee shall
line 27 provide an annual listing to the Franchise Tax Board, in a form
line 28 and manner agreed upon by the California Tax Credit Allocation
line 29 Committee and the Franchise Tax Board, of the taxpayers that
line 30 have sold or purchased a credit pursuant to this subdivision.
line 31 (3) (A) A credit may be sold pursuant to this subdivision to
line 32 more than one unrelated party.
line 33 (B) (i) Except as provided in clause (ii), a credit shall not be
line 34 resold by the unrelated party to another taxpayer or other party.
line 35 (ii) All or any portion of any credit allowed under this section
line 36 may be resold once by an original purchaser to one or more
line 37 unrelated parties, subject to all of the requirements of this
line 38 subdivision.
line 39 (4) Notwithstanding any other law, the taxpayer that originally
line 40 received the credit that is sold pursuant to paragraph (1) shall
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line 1 remain solely liable for all obligations and liabilities imposed on
line 2 the taxpayer by this section with respect to the credit, none of
line 3 which shall apply to a party to whom the credit has been sold or
line 4 subsequently transferred. Parties that purchase credits pursuant to
line 5 paragraph (1) shall be entitled to utilize the purchased credits in
line 6 the same manner in which the taxpayer that originally received
line 7 the credit could utilize them.
line 8 (5) A taxpayer shall not sell a credit allowed by this section if
line 9 the taxpayer was allowed the credit on any tax return of the
line 10 taxpayer.
line 11 (6) Notwithstanding paragraph (1), the taxpayer, with the
line 12 approval of the Executive Director of the California Tax Credit
line 13 Allocation Committee, may rescind the election to sell all or any
line 14 portion of the credit allowed under this section if the consideration
line 15 for the credit falls below 80 percent of the amount of the credit
line 16 after the California Tax Credit Allocation Committee reservation.
line 17 (r) The California Tax Credit Allocation Committee may
line 18 prescribe rules, guidelines, or procedures necessary or appropriate
line 19 to carry out the purposes of this section, including any guidelines
line 20 regarding the allocation of the credit allowed under this section.
line 21 Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
line 22 3 of Title 2 of the Government Code shall not apply to any rule,
line 23 guideline, or procedure prescribed by the California Tax Credit
line 24 Allocation Committee pursuant to this section.
line 25 (s) Any unused credit may continue to be carried forward, as
line 26 provided in subdivision (l), until the credit has been exhausted.
line 27 (t) This section shall remain in effect on and after December 1,
line 28 1990, for as long as Section 42 of the Internal Revenue Code,
line 29 relating to low-income housing credit, remains in effect.
line 30 (u) The amendments to this section made by Chapter 1222 of
line 31 the Statutes of 1993 shall apply only to taxable years beginning
line 32 on or after January 1, 1994.
line 33 SEC. 3.
line 34 SEC. 4. Section 17225 of the Revenue and Taxation Code is
line 35 amended to read:
line 36 17225. (a) Section 163(h)(3)(E) of the Internal Revenue Code,
line 37 relating to mortgage insurance premiums treated as interest, shall
line 38 not apply.
line 39 (b) Sections 163(h)(4)(A)(I)(II) 163(h)(4)(A)(i)(II) and
line 40 163(h)(4)(A)(ii)(II) of the Internal Revenue Code shall not apply.
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line 1 SEC. 4.
line 2 SEC. 5. Section 23610.5 of the Revenue and Taxation Code is
line 3 amended to read:
line 4 23610.5. (a) (1) There shall be allowed as a credit against the
line 5 “tax,” defined by Section 23036, a state low-income housing tax
line 6 credit in an amount equal to the amount determined in subdivision
line 7 (c), computed in accordance with Section 42 of the Internal
line 8 Revenue Code, relating to low-income housing credit, except as
line 9 otherwise provided in this section.
line 10 (2) “Taxpayer,” for purposes of this section, means the sole
line 11 owner in the case of a “C” corporation, the partners in the case of
line 12 a partnership, and the shareholders in the case of an “S”
line 13 corporation.
line 14 (3) “Housing sponsor,” for purposes of this section, means the
line 15 sole owner in the case of a “C” corporation, the partnership in the
line 16 case of a partnership, and the “S” corporation in the case of an “S”
line 17 corporation.
line 18 (4) “Extremely low income households” has the same meaning
line 19 as in Section 50053 of the Health and Safety Code.
line 20 (5) “Very low income households” has the same meaning as in
line 21 Section 50053 of the Health and Safety Code.
line 22 (b) (1) The amount of the credit allocated to any housing
line 23 sponsor shall be authorized by the California Tax Credit Allocation
line 24 Committee, or any successor thereof, based on a project’s need
line 25 for the credit for economic feasibility in accordance with the
line 26 requirements of this section.
line 27 (A) The low-income housing project shall be located in
line 28 California and shall meet either of the following requirements:
line 29 (i) Except for projects to provide farmworker housing, as defined
line 30 in subdivision (h) of Section 50199.7 of the Health and Safety
line 31 Code, that are allocated credits solely under the set-aside described
line 32 in subdivision (c) of Section 50199.20 of the Health and Safety
line 33 Code, the project’s housing sponsor has been allocated by the
line 34 California Tax Credit Allocation Committee a credit for federal
line 35 income tax purposes under Section 42 of the Internal Revenue
line 36 Code, relating to low-income housing credit.
line 37 (ii) It qualifies for a credit under Section 42(h)(4)(B) of the
line 38 Internal Revenue Code, relating to special rule where 50 percent
line 39 or more of building is financed with tax-exempt bonds subject to
line 40 volume cap.
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line 1 (B) The California Tax Credit Allocation Committee shall not
line 2 require fees for the credit under this section in addition to those
line 3 fees required for applications for the tax credit pursuant to Section
line 4 42 of the Internal Revenue Code, relating to low-income housing
line 5 credit. The committee may require a fee if the application for the
line 6 credit under this section is submitted in a calendar year after the
line 7 year the application is submitted for the federal tax credit.
line 8 (C) (i) For a project that receives a preliminary reservation of
line 9 the state low-income housing tax credit, allowed pursuant to
line 10 subdivision (a), on or after January 1, 2009, and before January 1,
line 11 2020, the credit shall be allocated to the partners of a partnership
line 12 owning the project in accordance with the partnership agreement,
line 13 regardless of how the federal low-income housing tax credit with
line 14 respect to the project is allocated to the partners, or whether the
line 15 allocation of the credit under the terms of the agreement has
line 16 substantial economic effect, within the meaning of Section 704(b)
line 17 of the Internal Revenue Code, relating to determination of
line 18 distributive share.
line 19 (ii) To the extent the allocation of the credit to a partner under
line 20 this section lacks substantial economic effect, any loss or deduction
line 21 otherwise allowable under this part that is attributable to the sale
line 22 or other disposition of that partner’s partnership interest made prior
line 23 to the expiration of the federal credit shall not be allowed in the
line 24 taxable year in which the sale or other disposition occurs, but shall
line 25 instead be deferred until and treated as if it occurred in the first
line 26 taxable year immediately following the taxable year in which the
line 27 federal credit period expires for the project described in clause (i).
line 28 (iii) This subparagraph shall not apply to a project that receives
line 29 a preliminary reservation of state low-income housing tax credits
line 30 under the set-aside described in subdivision (c) of Section 50199.20
line 31 of the Health and Safety Code unless the project also receives a
line 32 preliminary reservation of federal low-income housing tax credits.
line 33 (2) (A) The California Tax Credit Allocation Committee shall
line 34 certify to the housing sponsor the amount of tax credit under this
line 35 section allocated to the housing sponsor for each credit period.
line 36 (B) In the case of a partnership, or an “S” corporation, the
line 37 housing sponsor shall provide a copy of the California Tax Credit
line 38 Allocation Committee certification to the taxpayer.
line 39 (C) The taxpayer shall, upon request, provide a copy of the
line 40 certification to the Franchise Tax Board.
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line 1 (D) All elections made by the taxpayer pursuant to Section 42
line 2 of the Internal Revenue Code, relating to low-income housing
line 3 credit, shall apply to this section.
line 4 (E) (i) The California Tax Credit Allocation Committee may
line 5 allocate a credit under this section in exchange for a credit allocated
line 6 pursuant to Section 42(d)(5)(B) of the Internal Revenue Code,
line 7 relating to increase in credit for buildings in high-cost areas, in
line 8 amounts up to 30 percent of the eligible basis of a building if the
line 9 credits allowed under Section 42 of the Internal Revenue Code,
line 10 relating to low-income housing credit, are reduced by an equivalent
line 11 amount.
line 12 (ii) An equivalent amount shall be determined by the California
line 13 Tax Credit Allocation Committee based upon the relative amount
line 14 required to produce an equivalent state tax credit to the taxpayer.
line 15 (c) Section 42(b) of the Internal Revenue Code, relating to
line 16 applicable percentage: 70 percent present value credit for certain
line 17 new buildings; 30 percent present value credit for certain other
line 18 buildings, shall be modified as follows:
line 19 (1) In the case of any qualified low-income building that is a
line 20 new building, as defined in Section 42 of the Internal Revenue
line 21 Code, relating to low-income housing credit, and the regulations
line 22 promulgated thereunder, and not federally subsidized, the term
line 23 “applicable percentage” means the following:
line 24 (A) For each of the first three years, the percentage prescribed
line 25 by the Secretary of the Treasury for new buildings that are not
line 26 federally subsidized for the taxable year, determined in accordance
line 27 with the requirements of Section 42(b)(1) of the Internal Revenue
line 28 Code, relating to determination of applicable percentage.
line 29 (B) For the fourth year, the difference between 30 percent and
line 30 the sum of the applicable percentages for the first three years.
line 31 (2) In the case of any qualified low-income building that (A) is
line 32 a new building, as defined in Section 42 of the Internal Revenue
line 33 Code, relating to low-income housing credit, and the regulations
line 34 promulgated thereunder, (B) not located in designated difficult
line 35 development areas (DDAs) or qualified census tracts (QCTs), as
line 36 defined in Section 42(d)(5)(B) of the Internal Revenue Code,
line 37 relating to increase in credit for buildings in high cost areas, and
line 38 (C) is federally subsidized, the term “applicable percentage” means
line 39 for the first three years, 15 percent of the qualified basis of the
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line 1 building, and for the fourth year, 5 percent of the qualified basis
line 2 of the building.
line 3 (3) In the case of any qualified low-income building that is (A)
line 4 an existing building, as defined in Section 42 of the Internal
line 5 Revenue Code, relating to low-income housing credit, and the
line 6 regulations promulgated thereunder, (B) not located in designated
line 7 difficult development areas (DDAs) or qualified census tracts
line 8 (QCTs), as defined in Section 42(d)(5)(B) of the Internal Revenue
line 9 Code, relating to increase in credit for buildings in high cost areas,
line 10 and (C) is federally subsidized, the term applicable percentage
line 11 means the following:
line 12 (i) For each of the first three years, the percentage prescribed
line 13 by the Secretary of the Treasury for new buildings that are federally
line 14 subsidized for the taxable year.
line 15 (ii) For the fourth year, the difference between 13 percent and
line 16 the sum of the applicable percentages for the first three years.
line 17 (4) In the case of any qualified low-income building that is (A)
line 18 a new or an existing building, (B) located in designated difficult
line 19 development areas (DDAs) or qualified census tracts (QCTs) as
line 20 defined in Section 42(d)(5)(B) of the Internal Revenue Code,
line 21 relating to increase in credit for buildings in high cost areas, and
line 22 (C) federally subsidized, the California Tax Credit Allocation
line 23 Committee shall determine reduce the amount of California credit
line 24 to be allocated under subparagraph (E) of paragraph (2) of
line 25 subdivision (b) required to produce an equivalent state tax credit
line 26 to the taxpayer, as produced in paragraph (2), paragraphs (2) and
line 27 (3) by taking into account the increased federal credit received
line 28 due to the basis boost provided under Section 42(d)(5)(B) of the
line 29 Internal Revenue Code, relating to increase in credit for buildings
line 30 in high cost areas.
line 31 (5) In the case of any qualified low-income building that meets
line 32 all of the requirements of subparagraphs (A) through (D), inclusive,
line 33 the term “applicable percentage” means 30 percent for each of the
line 34 first three years and 5 percent for the fourth year. A qualified
line 35 low-income building receiving an allocation under this paragraph
line 36 is ineligible to also receive an allocation under paragraph (3).
line 37 (A) The qualified low-income building is at least 15 years old.
line 38 (B) The qualified low-income building is serving households
line 39 of very low income or extremely low income such that the average
line 40 maximum household income as restricted, pursuant to an existing
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line 1 regulatory agreement with a federal, state, county, local, or other
line 2 governmental agency, is not more than 45 percent of the area
line 3 median gross income, as determined under Section 42 of the
line 4 Internal Revenue Code, relating to low-income housing credit,
line 5 adjusted by household size, and a tax credit regulatory agreement
line 6 is entered into for a period of not less than 55 years restricting the
line 7 average targeted household income to no more than 45 percent of
line 8 the area median income.
line 9 (C) The qualified low-income building would have insufficient
line 10 credits under paragraphs (2) and (3) to complete substantial
line 11 rehabilitation due to a low appraised value.
line 12 (D) The qualified low-income building will complete the
line 13 substantial rehabilitation in connection with the credit allocation
line 14 herein.
line 15 (d) The term “qualified low-income housing project” as defined
line 16 in Section 42(c)(2) of the Internal Revenue Code, relating to
line 17 qualified low-income building, is modified by adding the following
line 18 requirements:
line 19 (1) The taxpayer shall be entitled to receive a cash distribution
line 20 from the operations of the project, after funding required reserves,
line 21 that, at the election of the taxpayer, is equal to:
line 22 (A) An amount not to exceed 8 percent of the lesser of:
line 23 (i) The owner equity that shall include the amount of the capital
line 24 contributions actually paid to the housing sponsor and shall not
line 25 include any amounts until they are paid on an investor note.
line 26 (ii) Twenty percent of the adjusted basis of the building as of
line 27 the close of the first taxable year of the credit period.
line 28 (B) The amount of the cashflow from those units in the building
line 29 that are not low-income units. For purposes of computing cashflow
line 30 under this subparagraph, operating costs shall be allocated to the
line 31 low-income units using the “floor space fraction,” as defined in
line 32 Section 42 of the Internal Revenue Code, relating to low-income
line 33 housing credit.
line 34 (C) Any amount allowed to be distributed under subparagraph
line 35 (A) that is not available for distribution during the first five years
line 36 of the compliance period may be accumulated and distributed any
line 37 time during the first 15 years of the compliance period but not
line 38 thereafter.
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line 1 (2) The limitation on return shall apply in the aggregate to the
line 2 partners if the housing sponsor is a partnership and in the aggregate
line 3 to the shareholders if the housing sponsor is an “S” corporation.
line 4 (3) The housing sponsor shall apply any cash available for
line 5 distribution in excess of the amount eligible to be distributed under
line 6 paragraph (1) to reduce the rent on rent-restricted units or to
line 7 increase the number of rent-restricted units subject to the tests of
line 8 Section 42(g)(1) of the Internal Revenue Code, relating to in
line 9 general.
line 10 (e) The provisions of Section 42(f) of the Internal Revenue
line 11 Code, relating to definition and special rules relating to credit
line 12 period, shall be modified as follows:
line 13 (1) The term “credit period” as defined in Section 42(f)(1) of
line 14 the Internal Revenue Code, relating to credit period defined, is
line 15 modified by substituting “four taxable years” for “10 taxable
line 16 years.”
line 17 (2) The special rule for the first taxable year of the credit period
line 18 under Section 42(f)(2) of the Internal Revenue Code, relating to
line 19 special rule for 1st year of credit period, shall not apply to the tax
line 20 credit under this section.
line 21 (3) Section 42(f)(3) of the Internal Revenue Code, relating to
line 22 determination of applicable percentage with respect to increases
line 23 in qualified basis after 1st year of credit period, is modified to
line 24 read:
line 25 If, as of the close of any taxable year in the compliance period,
line 26 after the first year of the credit period, the qualified basis of any
line 27 building exceeds the qualified basis of that building as of the close
line 28 of the first year of the credit period, the housing sponsor, to the
line 29 extent of its tax credit allocation, shall be eligible for a credit on
line 30 the excess in an amount equal to the applicable percentage
line 31 determined pursuant to subdivision (c) for the four-year period
line 32 beginning with the later of the taxable years in which the increase
line 33 in qualified basis occurs.
line 34 (f) The provisions of Section 42(h) of the Internal Revenue
line 35 Code, relating to limitation on aggregate credit allowable with
line 36 respect to projects located in a state, shall be modified as follows:
line 37 (1) Section 42(h)(2) of the Internal Revenue Code, relating to
line 38 allocated credit amount to apply to all taxable years ending during
line 39 or after credit allocation year, shall not be applicable and instead
line 40 the following provisions shall be applicable:
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line 1 The total amount for the four-year credit period of the housing
line 2 credit dollars allocated in a calendar year to any building shall
line 3 reduce the aggregate housing credit dollar amount of the California
line 4 Tax Credit Allocation Committee for the calendar year in which
line 5 the allocation is made.
line 6 (2) Paragraphs (3), (4), (5), (6)(E)(I)(II), (6)(F), (6)(G), (6)(I),
line 7 (7), and (8) of Section 42(h) of the Internal Revenue Code, relating
line 8 to limitation on aggregate credit allowable with respect to projects
line 9 located in a state, shall not be applicable.
line 10 (g) The aggregate housing credit dollar amount that may be
line 11 allocated annually by the California Tax Credit Allocation
line 12 Committee pursuant to this section, Section 12206, and Section
line 13 17058 shall be an amount equal to the sum of all the following:
line 14 (1) (A) Seventy million dollars ($70,000,000) for the 2001
line 15 calendar year, and, for the 2002 calendar year and each calendar
line 16 year thereafter, seventy million dollars ($70,000,000) increased
line 17 by the percentage, if any, by which the Consumer Price Index for
line 18 the preceding calendar year exceeds the Consumer Price Index for
line 19 the 2001 calendar year. For the purposes of this paragraph, the
line 20 term “Consumer Price Index” means the last Consumer Price Index
line 21 for All Urban Consumers published by the federal Department of
line 22 Labor.
line 23 (B) Three hundred million dollars ($300,000,000) for the 2018
line 24 calendar year, and, for the 2019 calendar year and each calendar
line 25 year thereafter, three hundred million dollars ($300,000,000)
line 26 increased by the percentage, if any, by which the Consumer Price
line 27 Index for the preceding calendar year exceeds the Consumer Price
line 28 Index for the 2018 calendar year. For the purposes of this
line 29 paragraph, the term “Consumer Price Index” means the last
line 30 Consumer Price Index for All Urban Consumers published by the
line 31 federal Department of Labor. A housing sponsor receiving an
line 32 allocation under paragraph (1) of subdivision (c) shall not be
line 33 eligible for receipt of the housing credit allocated from the
line 34 increased amount under this subparagraph. A housing sponsor
line 35 receiving an allocation under paragraph (1) of subdivision (c) shall
line 36 remain eligible for receipt of the housing credit allocated from the
line 37 credit ceiling amount under subparagraph (A).
line 38 (2) The unused housing credit ceiling, if any, for the preceding
line 39 calendar years.
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line 1 (3) The amount of housing credit ceiling returned in the calendar
line 2 year. For purposes of this paragraph, the amount of housing credit
line 3 dollar amount returned in the calendar year equals the housing
line 4 credit dollar amount previously allocated to any project that does
line 5 not become a qualified low-income housing project within the
line 6 period required by this section or to any project with respect to
line 7 which an allocation is canceled by mutual consent of the California
line 8 Tax Credit Allocation Committee and the allocation recipient.
line 9 (4) (A) Five hundred thousand dollars ($500,000) Of the amount
line 10 allocated pursuant to subparagraph (B) of paragraph (1),
line 11 twenty-five million dollars ($25,000,000) per calendar year for
line 12 projects to provide farmworker housing, as defined in subdivision
line 13 (h) of Section 50199.7 of the Health and Safety Code.
line 14 (B) Five hundred thousand dollars ($500,000) of the amount
line 15 allocated pursuant to subparagraph (B) of paragraph (1) per
line 16 calendar year for projects to provide farmworker housing, as
line 17 defined in subdivision (h) of Section 50199.7 of the Health and
line 18 Safety Code.
line 19 (B) The amount of any unallocated or returned credits pursuant
line 20 to this paragraph per calendar year shall be added to the
line 21 aggregate amount of credits allocated pursuant to subparagraph
line 22 (B) of paragraph (1).
line 23 (5) The amount of any unallocated or returned credits under
line 24 former Sections 17053.14, 23608.2, and 23608.3, as those sections
line 25 read prior to January 1, 2009, until fully exhausted for projects to
line 26 provide farmworker housing, as defined in subdivision (h) of
line 27 Section 50199.7 of the Health and Safety Code.
line 28 (h) The term “compliance period” as defined in Section 42(i)(1)
line 29 of the Internal Revenue Code, relating to compliance period, is
line 30 modified to mean, with respect to any building, the period of 30
line 31 consecutive taxable years beginning with the first taxable year of
line 32 the credit period with respect thereto.
line 33 (i) Section 42(j) of the Internal Revenue Code, relating to
line 34 recapture of credit, shall not be applicable and the following shall
line 35 be substituted in its place:
line 36 The requirements of this section shall be set forth in a regulatory
line 37 agreement between the California Tax Credit Allocation Committee
line 38 and the housing sponsor, and the regulatory agreement shall be
line 39 subordinated, when required, to any lien or encumbrance of any
line 40 banks or other institutional lenders to the project. The regulatory
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line 1 agreement entered into pursuant to subdivision (f) of Section
line 2 50199.14 of the Health and Safety Code shall apply, provided that
line 3 the agreement includes all of the following provisions:
line 4 (1) A term not less than the compliance period.
line 5 (2) A requirement that the agreement be recorded in the official
line 6 records of the county in which the qualified low-income housing
line 7 project is located.
line 8 (3) A provision stating which state and local agencies can
line 9 enforce the regulatory agreement in the event the housing sponsor
line 10 fails to satisfy any of the requirements of this section.
line 11 (4) A provision that the regulatory agreement shall be deemed
line 12 a contract enforceable by tenants as third-party beneficiaries thereto
line 13 and that allows individuals, whether prospective, present, or former
line 14 occupants of the building, who meet the income limitation
line 15 applicable to the building, the right to enforce the regulatory
line 16 agreement in any state court.
line 17 (5) A provision incorporating the requirements of Section 42
line 18 of the Internal Revenue Code, relating to low-income housing
line 19 credit, as modified by this section.
line 20 (6) A requirement that the housing sponsor notify the California
line 21 Tax Credit Allocation Committee or its designee if there is a
line 22 determination by the Internal Revenue Service that the project is
line 23 not in compliance with Section 42(g) of the Internal Revenue Code,
line 24 relating to qualified low-income housing project.
line 25 (7) A requirement that the housing sponsor, as security for the
line 26 performance of the housing sponsor’s obligations under the
line 27 regulatory agreement, assign the housing sponsor’s interest in rents
line 28 that it receives from the project, provided that until there is a
line 29 default under the regulatory agreement, the housing sponsor is
line 30 entitled to collect and retain the rents.
line 31 (8) The remedies available in the event of a default under the
line 32 regulatory agreement that is not cured within a reasonable cure
line 33 period, include, but are not limited to, allowing any of the parties
line 34 designated to enforce the regulatory agreement to collect all rents
line 35 with respect to the project; taking possession of the project and
line 36 operating the project in accordance with the regulatory agreement
line 37 until the enforcer determines the housing sponsor is in a position
line 38 to operate the project in accordance with the regulatory agreement;
line 39 applying to any court for specific performance; securing the
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line 1 appointment of a receiver to operate the project; or any other relief
line 2 as may be appropriate.
line 3 (j) (1) The committee shall allocate the housing credit on a
line 4 regular basis consisting of two or more periods in each calendar
line 5 year during which applications may be filed and considered. The
line 6 committee shall establish application filing deadlines, the maximum
line 7 percentage of federal and state low-income housing tax credit
line 8 ceiling that may be allocated by the committee in that period, and
line 9 the approximate date on which allocations shall be made. If the
line 10 enactment of federal or state law, the adoption of rules or
line 11 regulations, or other similar events prevent the use of two allocation
line 12 periods, the committee may reduce the number of periods and
line 13 adjust the filing deadlines, maximum percentage of credit allocated,
line 14 and allocation dates.
line 15 (2) The committee shall adopt a qualified allocation plan, as
line 16 provided in Section 42(m)(1) of the Internal Revenue Code, relating
line 17 to plans for allocation of credit among projects. In adopting this
line 18 plan, the committee shall comply with the provisions of Sections
line 19 42(m)(1)(B) and 42(m)(1)(C) of the Internal Revenue Code,
line 20 relating to qualified allocation plan and relating to certain selection
line 21 criteria must be used, respectively.
line 22 (3) Notwithstanding Section 42(m) of the Internal Revenue
line 23 Code, relating to responsibilities of housing credit agencies, the
line 24 California Tax Credit Allocation Committee shall allocate housing
line 25 credits in accordance with the qualified allocation plan and
line 26 regulations, which shall include the following provisions:
line 27 (A) All housing sponsors, as defined by paragraph (3) of
line 28 subdivision (a), shall demonstrate at the time the application is
line 29 filed with the committee that the project meets the following
line 30 threshold requirements:
line 31 (i) The housing sponsor shall demonstrate there is a need for
line 32 low-income housing in the community or region for which it is
line 33 proposed.
line 34 (ii) The project’s proposed financing, including tax credit
line 35 proceeds, shall be sufficient to complete the project and shall be
line 36 adequate to operate the project for the extended use period.
line 37 (iii) The project shall have enforceable financing commitments,
line 38 either construction or permanent financing, for at least 50 percent
line 39 of the total estimated financing of the project.
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line 1 (iv) The housing sponsor shall have and maintain control of the
line 2 site for the project.
line 3 (v) The housing sponsor shall demonstrate that the project
line 4 complies with all applicable local land use and zoning ordinances.
line 5 (vi) The housing sponsor shall demonstrate that the project
line 6 development team has the experience and the financial capacity
line 7 to ensure project completion and operation for the extended use
line 8 period.
line 9 (vii) The housing sponsor shall demonstrate the amount of tax
line 10 credit that is necessary for the financial feasibility of the project
line 11 and its viability as a qualified low-income housing project
line 12 throughout the extended use period, taking into account operating
line 13 expenses, a supportable debt service, reserves, funds set aside for
line 14 rental subsidies and required equity, and a development fee that
line 15 does not exceed a specified percentage of the eligible basis of the
line 16 project prior to inclusion of the development fee in the eligible
line 17 basis, as determined by the committee.
line 18 (B) The committee shall give a preference to those projects
line 19 satisfying all of the threshold requirements of subparagraph (A)
line 20 if both of the following apply:
line 21 (i) The project serves the lowest income tenants at rents
line 22 affordable to those tenants.
line 23 (ii) The project is obligated to serve qualified tenants for the
line 24 longest period.
line 25 (C) In addition to the provisions of subparagraphs (A) and (B),
line 26 the committee shall use the following criteria in allocating housing
line 27 credits:
line 28 (i) Projects serving large families in which a substantial number,
line 29 as defined by the committee, of all residential units are low-income
line 30 units with three or more bedrooms.
line 31 (ii) Projects providing single-room occupancy units serving
line 32 very low income tenants.
line 33 (iii) (I) Existing projects that are “at risk of conversion.”
line 34 (II) For purposes of this section, the term “at risk of conversion,”
line 35 with respect to an existing property means a property that satisfies
line 36 all of the following criteria:
line 37 (ia) The property is a multifamily rental housing development
line 38 in which at least 50 percent of the units receive governmental
line 39 assistance pursuant to any of the following:
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line 1 (Ia) New construction, substantial rehabilitation, moderate
line 2 rehabilitation, property disposition, and loan management set-aside
line 3 programs, or any other program providing project-based assistance
line 4 pursuant to Section 8 of the United States Housing Act of 1937,
line 5 Section 1437f of Title 42 of the United States Code, as amended.
line 6 (Ib) The Below-Market-Interest-Rate Program pursuant to
line 7 Section 221(d)(3) of the National Housing Act, Sections
line 8 1715l(d)(3) and (5) of Title 12 of the United States Code.
line 9 (Ic) Section 236 of the National Housing Act, Section 1715z-1
line 10 of Title 12 of the United States Code.
line 11 (Id) Programs for rent supplement assistance pursuant to Section
line 12 18 101 of the Housing and Urban Development Act of 1965,
line 13 Section 1701s of Title 12 of the United States Code, as amended.
line 14 (Ie) Programs pursuant to Section 515 of the Housing Act of
line 15 1949, Section 1485 of Title 42 of the United States Code, as
line 16 amended.
line 17 (If) The low-income housing credit program set forth in Section
line 18 42 of the Internal Revenue Code.
line 19 (ib) The restrictions on rent and income levels will terminate
line 20 or the federal insured mortgage on the property is eligible for
line 21 prepayment any time within five years before or after the date of
line 22 application to the California Tax Credit Allocation Committee.
line 23 (ic) The entity acquiring the property enters into a regulatory
line 24 agreement that requires the property to be operated in accordance
line 25 with the requirements of this section for a period equal to the
line 26 greater of 55 years or the life of the property.
line 27 (id) The property satisfies the requirements of Section 42(e) of
line 28 the Internal Revenue Code, regarding rehabilitation expenditures
line 29 except that the provisions of Section 42(e)(3)(A)(ii)(I) shall not
line 30 apply.
line 31 (iv) Projects for which a public agency provides direct or indirect
line 32 long-term financial support for at least 15 percent of the total
line 33 project development costs or projects for which the owner’s equity
line 34 constitutes at least 30 percent of the total project development
line 35 costs.
line 36 (v) Projects that provide tenant amenities not generally available
line 37 to residents of low-income housing projects.
line 38 (4) For purposes of allocating credits pursuant to this section,
line 39 the committee shall not give preference to any project by virtue
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line 1 of the date of submission of its application except to break a tie
line 2 when two or more of the projects have an equal rating.
line 3 (5) Not less than 20 percent of the low-income housing tax
line 4 credits available annually under this section, Section 12206, and
line 5 Section 17058 shall be set aside for allocation to rural areas as
line 6 defined in Section 50199.21 of the Health and Safety Code. Any
line 7 amount of credit set aside for rural areas remaining on or after
line 8 October 31 of any calendar year shall be available for allocation
line 9 to any eligible project. No amount of credit set aside for rural areas
line 10 shall be considered available for any eligible project so long as
line 11 there are eligible rural applications pending on October 31.
line 12 (k) Section 42(l) of the Internal Revenue Code, relating to
line 13 certifications and other reports to secretary, shall be modified as
line 14 follows:
line 15 The term “secretary” shall be replaced by the term “Franchise
line 16 Tax Board.”
line 17 (l) In the case where the credit allowed under this section
line 18 exceeds the “tax,” the excess may be carried over to reduce the
line 19 “tax” in the following year, and succeeding taxable years if
line 20 necessary, until the credit has been exhausted.
line 21 (m) A project that received an allocation of a 1989 federal
line 22 housing credit dollar amount shall be eligible to receive an
line 23 allocation of a 1990 state housing credit dollar amount, subject to
line 24 all of the following conditions:
line 25 (1) The project was not placed in service prior to 1990.
line 26 (2) To the extent the amendments made to this section by the
line 27 Statutes of 1990 conflict with any provisions existing in this section
line 28 prior to those amendments, the prior provisions of law shall prevail.
line 29 (3) Notwithstanding paragraph (2), a project applying for an
line 30 allocation under this subdivision shall be subject to the
line 31 requirements of paragraph (3) of subdivision (j).
line 32 (n) The credit period with respect to an allocation of credit in
line 33 1989 by the California Tax Credit Allocation Committee of which
line 34 any amount is attributable to unallocated credit from 1987 or 1988
line 35 shall not begin until after December 31, 1989.
line 36 (o) The provisions of Section 11407(a) of Public Law 101-508,
line 37 relating to the effective date of the extension of the low-income
line 38 housing credit, shall apply to calendar years after 1989.
line 39 (p) The provisions of Section 11407(c) of Public Law 101-508,
line 40 relating to election to accelerate credit, shall not apply.
98
— 44 —AB 71
Attachment A
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line 1 (q) (1) A corporation may elect to assign any portion of any
line 2 credit allowed under this section to one or more affiliated
line 3 corporations for each taxable year in which the credit is allowed.
line 4 For purposes of this subdivision, “affiliated corporation” has the
line 5 meaning provided in subdivision (b) of Section 25110, as that
line 6 section was amended by Chapter 881 of the Statutes of 1993, as
line 7 of the last day of the taxable year in which the credit is allowed,
line 8 except that “100 percent” is substituted for “more than 50 percent”
line 9 wherever it appears in the section, as that section was amended by
line 10 Chapter 881 of the Statutes of 1993, and “voting common stock”
line 11 is substituted for “voting stock” wherever it appears in the section,
line 12 as that section was amended by Chapter 881 of the Statutes of
line 13 1993.
line 14 (2) The election provided in paragraph (1):
line 15 (A) May be based on any method selected by the corporation
line 16 that originally receives the credit.
line 17 (B) Shall be irrevocable for the taxable year the credit is allowed,
line 18 once made.
line 19 (C) May be changed for any subsequent taxable year if the
line 20 election to make the assignment is expressly shown on each of the
line 21 returns of the affiliated corporations that assign and receive the
line 22 credits.
line 23 (r) (1) For a project that receives a preliminary reservation
line 24 under this section beginning on or after January 1, 2016, and before
line 25 January 1, 2020, a taxpayer may make an irrevocable election in
line 26 its application to the California Tax Credit Allocation Committee
line 27 to sell all or any portion of any credit allowed under this section
line 28 to one or more unrelated parties for each taxable year in which the
line 29 credit is allowed subject to both of the following conditions:
line 30 (A) The credit is sold for consideration that is not less than 80
line 31 percent of the amount of the credit.
line 32 (B) (i) The unrelated party or parties purchasing any or all of
line 33 the credit pursuant to this subdivision is a taxpayer allowed the
line 34 credit under this section for the taxable year of the purchase or any
line 35 prior taxable year or is a taxpayer allowed the federal credit under
line 36 Section 42 of the Internal Revenue Code, relating to low-income
line 37 housing credit, for the taxable year of the purchase or any prior
line 38 taxable year in connection with any project located in this state.
line 39 (ii) For purposes of this subparagraph, “taxpayer allowed the
line 40 credit under this section” means a taxpayer that is allowed the
98
AB 71— 45 — Attachment A
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line 1 credit under this section without regard to the purchase of a credit
line 2 pursuant to this subdivision without regard to any of the following:
line 3 (I) The purchase of a credit under this section pursuant to this
line 4 subdivision.
line 5 (II) The assignment of a credit under this section pursuant to
line 6 subdivision (q).
line 7 (III) The assignment of a credit under this section pursuant to
line 8 Section 23363.
line 9 (2) (A) The taxpayer that originally received the credit shall
line 10 report to the California Tax Credit Allocation Committee within
line 11 10 days of the sale of the credit, in the form and manner specified
line 12 by the California Tax Credit Allocation Committee, all required
line 13 information regarding the purchase and sale of the credit, including
line 14 the social security or other taxpayer identification number of the
line 15 unrelated party or parties to whom the credit has been sold, the
line 16 face amount of the credit sold, and the amount of consideration
line 17 received by the taxpayer for the sale of the credit.
line 18 (B) The California Tax Credit Allocation Committee shall
line 19 provide an annual listing to the Franchise Tax Board, in a form
line 20 and manner agreed upon by the California Tax Credit Allocation
line 21 Committee and the Franchise Tax Board, of the taxpayers that
line 22 have sold or purchased a credit pursuant to this subdivision.
line 23 (3) (A) A credit may be sold pursuant to this subdivision to
line 24 more than one unrelated party.
line 25 (B) (i) Except as provided in clause (ii), a credit shall not be
line 26 resold by the unrelated party to another taxpayer or other party.
line 27 (ii) All or any portion of any credit allowed under this section
line 28 may be resold once by an original purchaser to one or more
line 29 unrelated parties, subject to all of the requirements of this
line 30 subdivision.
line 31 (4) Notwithstanding any other law, the taxpayer that originally
line 32 received the credit that is sold pursuant to paragraph (1) shall
line 33 remain solely liable for all obligations and liabilities imposed on
line 34 the taxpayer by this section with respect to the credit, none of
line 35 which shall apply to a party to whom the credit has been sold or
line 36 subsequently transferred. Parties that purchase credits pursuant to
line 37 paragraph (1) shall be entitled to utilize the purchased credits in
line 38 the same manner in which the taxpayer that originally received
line 39 the credit could utilize them.
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Attachment A
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line 1 (5) A taxpayer shall not sell a credit allowed by this section if
line 2 the taxpayer was allowed the credit on any tax return of the
line 3 taxpayer.
line 4 (6) Notwithstanding paragraph (1), the taxpayer, with the
line 5 approval of the Executive Director of the California Tax Credit
line 6 Allocation Committee, may rescind the election to sell all or any
line 7 portion of the credit allowed under this section if the consideration
line 8 for the credit falls below 80 percent of the amount of the credit
line 9 after the California Tax Credit Allocation Committee reservation.
line 10 (s) The California Tax Credit Allocation Committee may
line 11 prescribe rules, guidelines, or procedures necessary or appropriate
line 12 to carry out the purposes of this section, including any guidelines
line 13 regarding the allocation of the credit allowed under this section.
line 14 Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
line 15 3 of Title 2 of the Government Code shall not apply to any rule,
line 16 guideline, or procedure prescribed by the California Tax Credit
line 17 Allocation Committee pursuant to this section.
line 18 (t) Any unused credit may continue to be carried forward, as
line 19 provided in subdivision (l), until the credit has been exhausted.
line 20 (u) This section shall remain in effect on and after December
line 21 1, 1990, for as long as Section 42 of the Internal Revenue Code,
line 22 relating to low-income housing credit, remains in effect.
line 23 (v) The amendments to this section made by Chapter 1222 of
line 24 the Statutes of 1993 shall apply only to taxable years beginning
line 25 on or after January 1, 1994, except that paragraph (1) of subdivision
line 26 (q), as amended, shall apply to taxable years beginning on or after
line 27 January 1, 1993.
line 28 SEC. 5.
line 29 SEC. 6. This act is an urgency statute necessary for the
line 30 immediate preservation of the public peace, health, or safety within
line 31 the meaning of Article IV of the California Constitution and shall
line 32 go into immediate effect. The facts constituting the necessity are:
line 33 In order to provide affordable housing opportunities at the earliest
line 34 possible time, it is necessary for this act to take effect immediately.
O
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LEGISLATION COMMITTEE 6.
Meeting Date:03/13/2017
Subject:AB 210 (Santiago): Homeless Multidisciplinary Personnel Team
Submitted For: LEGISLATION COMMITTEE,
Department:County Administrator
Referral No.: 2017-07
Referral Name: AB 210: Homeless Multidisciplinary Personnel Team
Presenter: L. DeLaney Contact: L. DeLaney, 925-335-1097
Referral History:
The Legislative Advocate in the Los Angeles County Chief Executive Office is seeking support
for AB 210 (Santiago). A Fact Sheet and a sample Letter of Support has been provided.
(Attachments A and B) The bill has been reviewed by Contra Costa Director of the Health,
Housing, and Homeless Services Division, Lavonna Martin. She is recommending that the
Legislation Committee consider a recommendation of "Support" to the Board of Supervisors. The
2017 State Platform does not contain any policies directly related to AB 210.
Referral Update:
AB 210 authorizes counties to also establish a homeless adult, child, and family multidisciplinary
personnel team with the goal of facilitating the expedited identification, assessment, and linkage
of homeless individuals to housing and supportive services and to allow provider agencies to
share confidential information for the purpose of coordinating such services.
Disposition:Pending
Committee:Assembly Human Services Committee
Hearing:03/21/2017 1:30 pm, State Capitol, Room 437
The text of the bill is Attachment C.
Comments from Lavonna Martin, Director of Health, Housing and Homeless Services, Health
Services Department: "I have been watching this closely through my participation in the Housing
CA policy committee. This indeed is a great bill for communities that have a difficult time
navigating the hoops to share/disclose information. For that reason alone, it should be supported.
I will say that Contra Costa has had less of a struggle sharing information across our Health
Services system because we are all under the same umbrella. In many cases, we try to work
collaboratively to share pertinent information with the correct releases in place. It isn't a perfect
system, but it appears we do it more easily than some communities where homeless services are
not within a health services dept.
141 of 245
not within a health services dept.
Additionally, Whole Person Care is making it easier to share health, social, and homeless service
data as we are moving to create data warehouses and/or bi-directional data sharing between
systems of care. I see this legislation really coming in handy as care coordination across our
systems is on the horizon (not only within Health Services but between EHSD). I think where this
legislation really comes in handy is sharing across departments such as Health Services to EHSD
and/or Housing Authorities.
With that said, any legislation that would support such sharing of information would only
strengthen our ability to provide services to homeless individuals. We would just need to
determine how to develop and fund such teams in our system of care. It is worth noting that BH
clinicians and EHSD staff are integral parts of the homeless system of care. In my opinion, it is
these types of partnerships that should continue to be expanded."
Recommendation(s)/Next Step(s):
CONSIDER recommending to the Board of Supervisors a position of "Support" on AB 210
(Santiago): Homeless Multidisciplinary Personnel Team, as recommended by Lavonna Martin,
Director of Health, Housing and Homeless Services.
Attachments
Attachment A: AB 210 Fact Sheet
Attachment B: Sample Letter
Attachment C: Bill Text AB 210
142 of 245
Page 1 of 2
Status: Assembly Committee on Human Services
AB 210 (Santiago)
Homeless Multidisciplinary Personnel Team
Bill Summary
AB 210 would allow counties to establish a
homeless multidisciplinary personnel team (MDT)
to facilitate the identification, assessment, and
linkage of homeless individuals to housing and
supportive services. This bill would allow members
of the MDT to share confidential information with
one another in order to better coordinate and
provide services to homeless individuals and
families.
Existing Law
WIC § 18961.7 authorizes counties to establish a
child abuse MDT to allow the sharing of confidential
information in order to investigate reports of
suspected child abuse or neglect.
Background
Homelessness has become a significant health and
human services issue throughout California. Our
state is home to over 20 percent of the nation’s
homeless population. In Los Angeles County alone,
over 46,000 individuals are currently homeless
A homeless MDT is a team with representatives
from a variety of disciplines (agencies) who are
trained in the identification and treatment of
homeless individuals and/or families.
In 2011, WIC § 18961.7 was enacted, authorizing
counties to establish MDT’s for the purpose of
addressing child abuse and neglect. Since then, over
50 MDTs have been established in over 47 counties.
MDT’s ability to freely share confidential
information has successfully provided a wide range
of services to over 10,000 children who have
experienced abuse and neglect.
Need for AB 210
Current State law does not expressly authorize the
sharing of data on homeless youth, families, or
single adults between county departments and
homeless service providers. Thus, public agencies
and other homeless service providers are
constrained in the type of information that may be
shared. For example, service need, service receipt,
and duration of service(s) provided to a homeless
client cannot be freely shared among county
departments and homeless service providers who
are often delivering services to the same homeless
clients. This results in service duplication and/or
fragmentation.
That is why AB 210 is needed. This measure would
allow departments and agencies within a county to
share confidential information through an
established homeless MDT to reduce duplication
and/or fragmentation of services. By facilitating
communication and coordination among county
agencies and service providers, this bill will improve
government efficiency and enhance continuity of
care for homeless individuals and families.
What the Bill Does
AB 210 authorizes counties to establish a homeless
adult, child, and family MDT. Specifically, AB 210:
Authorizes MDT members to exchange
confidential information in-person,
telephonically, and electronically.
Requires counties that choose to establish
homeless MDTs to develop protocols
describing how and what information may
be shared.
Requires a copy of the protocols to be
made available to each participating
member in the MDT.
Requires every MDT member who receives
information regarding homeless children
and families to be under the same privacy
and confidentiality penalties as the person
disclosing or providing the information.
Requires the shared information to be
maintained in a manner that ensures
Attachment A
143 of 245
Page 2 of 2
Status: Assembly Committee on Human Services
maximum protection of privacy and
confidentiality rights.
Applies existing civil and criminal penalties
to the inappropriate disclosure of
information by the team members.
Support
Los Angeles County (Sponsor)
Opposition
None on file.
For More Information
Marilyn Limon
Assembly Member, Miguel Santiago
916.319.2053 | Marilyn.Limon@asm.ca.gov
Attachment A
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Date
The Honorable Blanca E. Rubio, Chair
Assembly Human Services Committee
State Capitol, Room 5175
Sacramento, California 95814
RE: AB 210 (Santiago), As Introduced – Support
Relating to Homeless Multidisciplinary Personnel Teams - Assembly
Human Services Committee
Dear Assembly Member Rubio,
(Name of your Organization) supports AB 210 (Santiago) relating to Homeless
multidisciplinary personnel teams.
Specifically, AB 210 would: 1) authorize counties to establish homeless adult, child and
family multidisciplinary teams (MDTs); 2) require counties that choose to establish
homeless MDTs to develop protocols on sharing confidential information; 3) authorize
MDT members to exchange confidential information in-person, telephonically and
electronically; and 4) establish privacy protections.
Currently, there is no statutory authority for county departments and homeless service
providers to share data on homeless youth, families, or single adults. The ability to
share information would help to facilitate the identification, assessment, and linkage of
homeless youth, families and individuals to the most appropriate housing and
supportive services. It also would enable county departments and agencies to know
what services homeless persons are currently receiving or have received in the past.
In January 2016, Los Angeles County released a study on services to homeless single
adults which found that 40 percent of the total expenditures were incurred on behalf of
just five percent of the single adults known to have been homeless during Fiscal Year
2014-15. Based on this study, the Los Angeles County Board of Supervisors directed
County staff to target rental subsidies and related services to this heavy-user
population. In response, the County developed a process where a heavy-services user
list is made available to relevant County departments. However, because of current
legal constraints, the information on the list of heavy users of services is limited to
identifying information, such as name and date of birth, and does not include any
information on current or past county services. This experience in Los Angeles County
exemplifies the need for this legislation.
AB 210 would achieve better coordination of services and strengthen continuity of care
for the homeless population.
Attachment B
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We urge your “AYE” vote on AB 210.
Sincerely,
(Add your name)
c: Assembly Member Miguel Santiago
Each Member and Consultant,
Assembly Human Services Committee
Attachment B
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california legislature—2017–18 regular session
ASSEMBLY BILL No. 210
Introduced by Assembly Member Santiago
January 23, 2017
An act to add Chapter 18 (commencing with Section 18999.8) to Part
6 of Division 9 of the Welfare and Institutions Code, relating to public
social services.
legislative counsel’s digest
AB 210, as introduced, Santiago. Homeless multidisciplinary
personnel team.
Existing law authorizes counties to establish a child abuse
multidisciplinary personnel team, as defined, to allow provider agencies
to share confidential information in order to investigate reports of
suspected child abuse or neglect or for the purpose of child welfare
agencies making detention determinations, as specified.
This bill would authorize counties to also establish a homeless adult,
child, and family multidisciplinary personnel team, as defined, with the
goal of facilitating the expedited identification, assessment, and linkage
of homeless individuals to housing and supportive services within that
county to allow provider agencies to share confidential information, as
specified, for the purpose of coordinating housing and supportive
services to ensure continuity of care. The bill would authorize the
homeless adult, child, and family multidisciplinary personnel team to
designate qualified persons to be a member of the team and would
require every member who receives information or records regarding
children and families in his or her capacity as a member of the team to
be under the same privacy and confidentiality obligations and subject
to the same confidentiality penalties as the person disclosing or
99
Attachment C
147 of 245
providing the information or records. The bill would also require the
information or records to be maintained in a manner that ensures the
maximum protection of privacy and confidentiality rights.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. Chapter 18 (commencing with Section 18999.8)
line 2 is added to Part 6 of Division 9 of the Welfare and Institutions
line 3 Code, to read:
line 4
line 5 Chapter 18. Homeless Multidisciplinary Personnel Team
line 6
line 7 18999.8. (a) Notwithstanding any other law, a county may
line 8 establish a homeless adult, child, and family multidisciplinary
line 9 personnel team with the goal of facilitating the expedited
line 10 identification, assessment, and linkage of homeless individuals to
line 11 housing and supportive services within that county to allow
line 12 provider agencies to share confidential information for the purpose
line 13 of coordinating housing and supportive services to ensure
line 14 continuity of care.
line 15 (b) For the purposes of this section, the following terms have
line 16 the following meanings:
line 17 (1) “Homeless” means any recorded instance of an adult, child,
line 18 or family self-identifying as homeless within the most recent 12
line 19 months, or any element contained in service utilization records
line 20 indicating that an adult, child, or family experienced homelessness
line 21 within the most recent 12 months.
line 22 (2) “Homeless adult, child, and family multidisciplinary
line 23 personnel team” means any team of two or more persons who are
line 24 trained in the identification and treatment of homeless adults,
line 25 children, and families, and who are qualified to provide a broad
line 26 range of services related to homelessness. The team may include,
line 27 but shall not be limited to:
line 28 (A) Mental health and substance abuse services personnel and
line 29 practitioners, child protective services personnel and social
line 30 workers, or other trained counseling personnel.
line 31 (B) Police officers, probation officers, or other law enforcement
line 32 agents.
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— 2 —AB 210
Attachment C
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line 1 (C) Legal counsel for the adult, child, or family representing
line 2 them in a criminal matter.
line 3 (D) Medical personnel with sufficient training to provide health
line 4 services.
line 5 (E) Social services workers with experience or training in the
line 6 provision of services to homeless adults, children, or families or
line 7 funding and eligibility for services.
line 8 (F) Veterans services providers and counselors.
line 9 (G) Domestic violence services providers and counselors.
line 10 (H) Any public or private school teacher, administrative officer,
line 11 or certified pupil personnel employee.
line 12 (I) Housing or homeless services provider agencies and
line 13 designated personnel.
line 14 (3) “Homeless services provider agency” means any
line 15 governmental or other agency that has as one of its purposes the
line 16 identification, assessment, and linkage of housing or supportive
line 17 services to homeless adults, children, and families. The homeless
line 18 services provider agencies serving adults, children, and families
line 19 that may share information under this section include, but are not
line 20 limited to, the following entities or service agencies:
line 21 (A) Social services.
line 22 (B) Child welfare services.
line 23 (C) Health services.
line 24 (D) Mental health services.
line 25 (E) Substance abuse services.
line 26 (F) Probation.
line 27 (G) Law enforcement.
line 28 (H) Legal counsel for the adult, child, or family representing
line 29 them in a criminal matter.
line 30 (I) Veterans services and counseling.
line 31 (J) Domestic violence services and counseling.
line 32 (K) Schools.
line 33 (L) Homeless services.
line 34 (M) Housing.
line 35 (c) (1) Members of a homeless adult, child, and family
line 36 multidisciplinary personnel team engaged in the identification,
line 37 assessment, and linkage of housing and supportive services to
line 38 homeless adults, families, or children may disclose to and exchange
line 39 with one another information and writings that relate to any
line 40 information that may be designated as confidential under state law
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AB 210— 3 — Attachment C
149 of 245
line 1 if the member of the team having that information or writing
line 2 reasonably believes it is generally relevant to the identification,
line 3 reduction, or elimination of homelessness or the provision of
line 4 services. Any discussion relative to the disclosure or exchange of
line 5 the information or writings during a team meeting is confidential
line 6 and, notwithstanding any other law, testimony concerning that
line 7 discussion is not admissible in any criminal, civil, or juvenile court
line 8 proceeding.
line 9 (2) Disclosure and exchange of information pursuant to this
line 10 section may occur telephonically and electronically if there is
line 11 adequate verification of the identity of the homeless adult, child,
line 12 and family multidisciplinary personnel who are involved in that
line 13 disclosure or exchange of information.
line 14 (3) Disclosure and exchange of information pursuant to this
line 15 section shall not be made to anyone other than members of the
line 16 homeless adult, child, and family multidisciplinary personnel team,
line 17 and those qualified to receive information as set forth in subdivision
line 18 (d).
line 19 (d) The homeless adult, child, and family multidisciplinary
line 20 personnel team may designate persons qualified pursuant to
line 21 paragraph (2) of subdivision (b) to be a member of the team. A
line 22 person designated as a team member pursuant to this subdivision
line 23 may receive and disclose relevant information and records, subject
line 24 to the confidentiality provisions of subdivision (f).
line 25 (e) The sharing of information permitted under subdivision (c)
line 26 shall be governed by protocols developed in each county describing
line 27 how and what information may be shared by the homeless adult,
line 28 child, and family multidisciplinary personnel team to ensure that
line 29 confidential information gathered by the team is not disclosed in
line 30 violation of state or federal law. A copy of the protocols shall be
line 31 distributed to each participating agency and to persons in those
line 32 agencies who participate in the homeless adult, child, and family
line 33 multidisciplinary personnel team.
line 34 (f) Every member of the homeless adult, child, and family
line 35 multidisciplinary personnel team who receives information or
line 36 records regarding children and families in his or her capacity as a
line 37 member of the team shall be under the same privacy and
line 38 confidentiality obligations and subject to the same confidentiality
line 39 penalties as the person disclosing or providing the information or
line 40 records. The information or records obtained shall be maintained
99
— 4 —AB 210
Attachment C
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line 1 in a manner that ensures the maximum protection of privacy and
line 2 confidentiality rights.
line 3 (g) Notwithstanding Section 827 or any other law, members of
line 4 a homeless adult, child, and family multidisciplinary personnel
line 5 team engaged in the identification, assessment, and linkage of
line 6 housing and supportive services to homeless adults, families, and
line 7 children may disclose to and exchange with one another
line 8 information and writings that relate to any incident of child abuse
line 9 or neglect that may also be designated as confidential under state
line 10 law if the team member having that information or writing
line 11 reasonably believes it is generally relevant to the provision of
line 12 services.
line 13 (h) This section shall not be construed to restrict guarantees of
line 14 confidentiality provided under state or federal law.
line 15 (i) Information and records communicated or provided to the
line 16 team members by all providers and agencies shall be deemed
line 17 private and confidential and shall be protected from discovery and
line 18 disclosure by all applicable statutory and common law protections.
line 19 Existing civil and criminal penalties shall apply to the inappropriate
line 20 disclosure of information held by the team members.
O
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AB 210— 5 — Attachment C
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LEGISLATION COMMITTEE 7.
Meeting Date:03/13/2017
Subject:AB 211 (Bigelow): State Responsibility Area Fire Prevention
Fees--SUPPORT
Submitted For: LEGISLATION COMMITTEE,
Department:County Administrator
Referral No.: 2017-10
Referral Name: AB 211 (Bigelow): State Responsibility Area Fire Prevention Fees
Presenter: L. DeLaney Contact: L. DeLaney, 925-335-1097
Referral History:
AB 211 was brought to staff's attention by Supervisor Burgis' chief of staff. Although the adopted
2017 State Platform does not contain a policy that relates directly to the fire prevention fee, the
Board of Supervisors in 2012 supported a bill that would repeal the fee (AB 1506), and the Board
of Supervisors has also supported AB 203 (Obernolte) in 2015 which would have to extended the
period for paying or disputing a fire prevention fee from 30 days to 60 days from the date of
assessment. (AB 203 died in committee).
Referral Update:
A "Fact Sheet" for AB 211 is included as Attachment A. The full text of the bill is Attachment B.
The bill has been referred to the Assembly Natural Resources Committee. No hearing date has
been established for the bill as yet.
Recommendation(s)/Next Step(s):
CONSIDER recommending to the Board of Supervisors a "Support" position on AB 211
(Bigelow): State Responsibility Area Fire Prevention Fees.
Fiscal Impact (if any):
AB 211 will provide transparency to the public on the use of tax payer dollars. It is essential the
Legislature require reporting of public funds to ensure accountability on how the fire prevention
fee moneys are spent.
Attachments
AB 211 Fact Sheet
Attachment B: AB 211 Bill Text
152 of 245
Assembly California Legislature
FRANK BIGELOW
ASSEMBLYMEMBER, 5TH DISTRICT
AB 211: FIRE FEE EXPENDITURES
PRINCIPAL COAUTHOR: SENATOR BERRYHILL COAUTHORS: ASSEMBLYMEMBERS OBERNOLTE &
PATTERSON
IN BRIEF:
AB 211 would require the State Board of Forestry and Fire Protection to provide an annual report
including itemized accounting of all expenditures of the fire prevention fee to the Legislature
indefinitely.
EXISTING LAW:
Existing law requires the State Board of Forestry and Fire Protection to collect a fire prevention fee
in the amount not to exceed $150 on each habitable structure in a state responsibility area. Exiting
law requires, until January 31, 2017, the State Board of Forestry and Fire Protection to submit an
annual written report to the Legislature on the expenditures of money collected from the fire
prevention fee.
THE ISSUE:
It is the Legislature’s duty to ensure tax payer dollars are being spent efficiently and that the
reporting of those expenditures provides transparency. Currently, the reporting requirements
provided by Section 4214 of the Public Resources Code provide an opportunity for vague reporting
on the uses of the fire prevention fee. Additionally, those reporting requirements expire this year.
THE SOLUTION:
AB 211 will provide transparency to the public on the use of tax payer dollars. It is essential the
Legislature require reporting of public funds to ensure accountability on how the fire prevention
fee moneys are spent.
SUPPORT:
Rural County Representatives of California (1/26)
CONTACT:
Katie Masingale, Office of Assemblyman Bigelow
(916) 319-2005 or Katie.Masingale@asm.ca.gov
CAPITOL OFFICE
Room 4158
Sacramento, CA 95814
(916) 319-2005
FAX (916) 319-2105
COMMITEES
Vice Chair, Appropriations
Vice Chair, Governmental
Organization
Insurance
Water, Parks & Wildlife
DISTRICT OFFICE
33 C Broadway
Jackson, CA 95642
(209) 223-0505
FAX (209) 762-8262
Attachment A
153 of 245
california legislature—2017–18 regular session
ASSEMBLY BILL No. 211
Introduced by Assembly Member Bigelow
(Principal coauthor: Senator Berryhill)
(Coauthors: Assembly Members Obernolte and Patterson)
January 23, 2017
An act to amend Section 4214 of the Public Resources Code, relating
to fire prevention.
legislative counsel’s digest
AB 211, as introduced, Bigelow. State responsibility area fire
prevention fees: reporting requirement.
Existing law requires the State Board of Forestry and Fire Protection
to establish a fire prevention fee in an amount not to exceed $150 to be
charged on each habitable structure on a parcel that is within a state
responsibility area. Existing law requires the fee moneys to be expended,
upon appropriation, in specified ways, including to reimburse the State
Board of Equalization’s expenses incurred in the collection of the fee
and to the State Board of Forestry and Fire Protection and to the
Department of Forestry and Fire Protection for administrative purposes,
with excess moneys being expended only for specified fire prevention
activities, as provided. Existing law, until January 31, 2017, requires
the board to submit an annual written report to the Legislature on the
status of the uses of the fee moneys.
This bill would require the report to include an itemized accounting
of all expenditures from the fund and would require the reporting to
occur annually for an indefinite period of time.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
99
Attachment B
154 of 245
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 4214 of the Public Resources Code is
line 2 amended to read:
line 3 4214. (a) Fire prevention fees collected pursuant to this chapter
line 4 shall be expended, upon appropriation by the Legislature, as
line 5 follows:
line 6 (1) The State Board of Equalization shall retain moneys
line 7 necessary for the payment of refunds pursuant to Section 4228 and
line 8 reimbursement of the State Board of Equalization for expenses
line 9 incurred in the collection of the fee.
line 10 (2) The moneys collected, other than those retained by the State
line 11 Board of Equalization pursuant to paragraph (1), shall be deposited
line 12 into the State Responsibility Area Fire Prevention Fund, which is
line 13 hereby created in the State Treasury, and shall be available to the
line 14 board and the department to expend for fire prevention activities
line 15 specified in subdivision (d) that benefit the owners of habitable
line 16 structures within a state responsibility area who are required to
line 17 pay the fire prevention fee. The amount expended to benefit the
line 18 owners of habitable structures within a state responsibility area
line 19 shall be commensurate with the amount collected from the owners
line 20 within that state responsibility area. All moneys in excess of the
line 21 costs of administration of the board and the department shall be
line 22 expended only for fire prevention activities in counties with state
line 23 responsibility areas.
line 24 (b) (1) The fund may also be used to cover the costs of
line 25 administering this chapter.
line 26 (2) The fund shall cover all startup costs incurred over a period
line 27 not to exceed two years.
line 28 (c) It is the intent of the Legislature that the moneys in this fund
line 29 be fully appropriated to the board and the department each year
line 30 in order to effectuate the purposes of this chapter.
line 31 (d) Moneys in the fund shall be used only for the following fire
line 32 prevention activities, which shall benefit owners of habitable
line 33 structures within the state responsibility areas who are required to
line 34 pay the annual fire prevention fee pursuant to this chapter:
line 35 (1) Local assistance grants pursuant to subdivision (e).
line 36 (2) Grants to Fire Safe Councils, the California Conservation
line 37 Corps, or certified local conservation corps for fire prevention
line 38 projects and activities in the state responsibility areas.
99
— 2 —AB 211
Attachment B
155 of 245
line 1 (3) Grants to a qualified nonprofit organization with a
line 2 demonstrated ability to satisfactorily plan, implement, and complete
line 3 a fire prevention project applicable to the state responsibility areas.
line 4 The department may establish other qualifying criteria.
line 5 (4) Inspections by the department for compliance with defensible
line 6 space requirements around habitable structures in state
line 7 responsibility areas as required by Section 4291.
line 8 (5) Public education to reduce fire risk in the state responsibility
line 9 areas.
line 10 (6) Fire severity and fire hazard mapping by the department in
line 11 the state responsibility areas.
line 12 (7) Other fire prevention projects in the state responsibility
line 13 areas, authorized by the board.
line 14 (e) (1) The board shall establish a local assistance grant program
line 15 for fire prevention activities designed to benefit habitable structures
line 16 within state responsibility areas, including public education, that
line 17 are provided by counties and other local agencies, including special
line 18 districts, with state responsibility areas within their jurisdictions.
line 19 (2) In order to ensure an equitable distribution of funds, the
line 20 amount of each grant shall be based on the number of habitable
line 21 structures in state responsibility areas for which the applicant is
line 22 legally responsible and the amount of moneys made available in
line 23 the annual Budget Act for this local assistance grant program.
line 24 (f) By January 31, 2015, and and, notwithstanding Section
line 25 10231.5 of the Government Code, annually thereafter, the board
line 26 shall submit to the Legislature a written report on the status and
line 27 uses of the fund pursuant to this chapter. chapter, including an
line 28 itemized accounting of all expenditures from the fund. The written
line 29 report shall also include an evaluation of the benefits received by
line 30 counties based on the number of habitable structures in state
line 31 responsibility areas within their jurisdictions, the effectiveness of
line 32 the board’s grant programs, the number of defensible space
line 33 inspections in the reporting period, the degree of compliance with
line 34 defensible space requirements, measures to increase compliance,
line 35 if any, and any recommendations to the Legislature.
line 36 (g) (1) The requirement for submitting a report imposed under
line 37 subdivision (f) is inoperative on January 31, 2017, pursuant to
line 38 Section 10231.5 of the Government Code.
line 39 (2)
99
AB 211— 3 — Attachment B
156 of 245
line 1 (g) A report to be submitted pursuant to subdivision (f) shall be
line 2 submitted in compliance with Section 9795 of the Government
line 3 Code.
line 4 (h) It is essential that this article be implemented without delay.
line 5 To permit timely implementation, the department may contract
line 6 for services related to the establishment of the fire prevention fee
line 7 collection process. For this purpose only, and for a period not to
line 8 exceed 24 months, the provisions of the Public Contract Code or
line 9 any other provision of law related to public contracting shall not
line 10 apply.
O
99
— 4 —AB 211
Attachment B
157 of 245
LEGISLATION COMMITTEE 8.
Meeting Date:03/13/2017
Subject:AB 236 (Maienschein): CalWORKs Housing Assistance
Submitted For: LEGISLATION COMMITTEE,
Department:County Administrator
Referral No.:
Referral Name: AB 236 (Maienschein): CalWORKs Housing Assistance
Presenter: Susan Jeong Contact: L. DeLaney, 925-335-1097
Referral History:
AB 236 (Maienschein): CalWORKs: Housing Assistance, is a bill that provides that homeless
assistance is available to homeless families that would be eligible for aid under the CalWORK's
program but for the fact that the only child or children in the family are in out-of-home placement
pursuant to an order of the dependency court, if the family is receiving reunification services and
the county determines that homeless assistance is necessary for reunification to occur. The bill
text is Attachment A. The Committee analysis is below.
Staff of EHSD recommends that the Committee consider recommending to the Board of
Supervisors a position of "Support" on AB 236.
Status:
03/07/2017 From ASSEMBLY Committee on HUMAN SERVICES: Do pass to
Committee on APPROPRIATIONS. (7-0)
The Board's 2017 State Platform includes a policy that is indirectly related:
156. SUPPORT increase of daily rate available under Temporary HA from $65 per day to $85 per
day for homeless CalWORKs families of four or fewer and provide an additional $15 per day for
each additional family member up to a maximum of $145 daily.
Referral Update:
2017 CA A 236: Bill Analysis - 03/03/2017 - Assembly Human Services Committee, Hearing
Date 03/07/2017
Date of Hearing: March 7, 2017
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Blanca Rubio, Chair
AB 236 (Maienschein) - As Introduced January 30, 2017
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SUBJECT: CalWORKs: housing assistance
SUMMARY: Adopts changes to California Work Opportunity and Responsibility to Kids
(CalWORKs) housing assistance for temporary shelter to: remove the requirement that the
assistance only be available for a consecutive period of time, increase the daily assistance amount,
and make the assistance available to certain families receiving reunification services through the
child welfare services system.
Specifically, this bill:
1) Provides that homeless assistance for temporary shelter is available to homeless families that
would be eligible for CalWORKs aid except for the fact that the only child or children in the
family are in an out-of-home placement per an order of the dependency court and if the family is
receiving reunification services and the county has determined that homeless assistance is
necessary to reunification.
2) Increases the nonrecurring special needs benefit for temporary shelter from $65 to $85 a day
for up to four members of a family and further, increases the daily maximum special needs benefit
for temporary shelter, for families with eight or more members, from $125 to $145.
3) Removes the stipulation that the annual maximum16 days of temporary shelter assistance be
used in consecutive calendar days, and instead provides for a maximum of 16 days of temporary
assistance that may be used intermittently over the course of 12 months.
4) Deletes the requirement that, for cases in which domestic violence is verified as specified,
temporary assistance be limited annually to two periods of a maximum of 16 consecutive
calendar days and instead stipulates that, in these cases, there is a maximum annual availability of
32 days of temporary assistance.
5) Makes conforming technical amendments.
6) Provides that no continuous appropriation, as specified, shall be made to implement the
provisions of this bill.
EXISTING LAW:
1) Establishes under federal law the Temporary Assistance for Needy Families (TANF) program
to provide aid and welfare-to-work services to eligible families and, in California, provides that
TANF funds for welfare-to-work services are administered through the CalWORKs program. (42
U.S.C. 601 et seq., WIC 11200 et seq.)
2) Establishes income, asset and real property limits used to determine eligibility for the program,
including net income below the Maximum Aid Payment (MAP), based on family size and county
of residence, which is around 40% of the Federal Poverty Level. (WIC 11150 to 11160, 11450 et
seq.)
3) Establishes a 48-month lifetime limit of CalWORKs benefits for eligible adults, including 24
months during which a recipient must meet federal work requirements in order to retain
eligibility. (WIC 11454, 11322.85)
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4) Requires all individuals over 16 years of age, unless they are otherwise exempt, to participate
in welfare-to-work activities as a condition of eligibility for CalWORKs. (WIC 11320.3, 11322.6)
5) Establishes the number of weekly hours of welfare-to-work participation necessary to remain
eligible for aid, including requirements for an unemployed parent in a two-parent assistance unit,
as specified. (WIC 11322.8)
6) Entitles a family to receive an allowance for nonrecurring special needs related to housing or
homelessness after that family has used all available liquid resources in excess of $100, as
specified, and grants this allowance for different purposes and amounts, as follows:
a) Replacement of clothing and household equipment and for emergency housing needs other than
temporary shelter;
b) Temporary shelter assistance for homeless families receiving CalWORKs for one period
annually of 16 consecutive days, except as specified, and counts a break in the consecutive use of
this assistance as permanent exhaustion of the benefit; and
c) Permanent housing assistance available to pay for last month's rent and security deposits when
these payments are reasonable conditions of securing a residence, or to pay for up to two months
of rent arrearages, when these payments are a reasonable condition of preventing eviction. (WIC
11450 (f))
7) Prohibits the sum of all housing assistance for nonrecurring special needs provided for to
exceed $600 per event. (WIC 11450 (f)(1))
8) Establishes that the purpose of the dependency system is the maximum safety and protection of
children who are currently being abused, neglected, or exploited. Provides that the focus is on the
preservation of the family, as well as the safety, protection, and physical and emotional
well-being of the child. (WIC 300.2)
9) States the intent of the Legislature to preserve and strengthen a child's family ties whenever
possible and to reunify a foster youth with his or her biological family whenever possible, or to
provide a permanent placement alternative, such as adoption or guardianship. (WIC 16000)
10) Requires the court, if at the initial hearing the juvenile court orders a child be removed from
his or her parent or guardian due to abuse or neglect, to order that child welfare reunification
services be provided to the family as soon as possible in order to reunify the child with his or her
family, if appropriate. (WIC 319 (e))
11) Requires the court, at a dispositional hearing, to order a social worker to provide child welfare
services to a child who has been removed from his or her parents' or guardians' custody and to the
parents or guardians in order to support the goal of reunification, for a specified time period,
except under certain circumstances. Provides that children and families in the child welfare
system should typically receive a full six months of reunification services if the child is under
three years of age, and twelve months if the child is over three years of age, but that may be
extended up to 18 or 24 months, as provided. (WIC 361.5 (a))
12) Provides that reunification services need not be provided if the court finds, by clear and
convincing evidence, that specified conditions exist, including, among other conditions:
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a) The parent or guardian is suffering from a mental disability that renders the parent incapable of
using the reunification services;
b) The parent or guardian has caused the death of another child through abuse or neglect;
c) The child or a sibling has been adjudicated a dependent as the result of severe physical or
sexual abuse;
d) The parent or guardian has been convicted of a violent felony; and
e) The parent or guardian has a history of drug or alcohol abuse and has failed to comply with
treatment programs as provided. (WIC 361.5 (b))
13) Prevents the court from ordering reunification services for a parent or guardian in specified
situations, unless the court finds that reunification is in the child's best interest. (WIC 361.5 (c))
14) Allows any party to petition the court to terminate reunification services early, and allows the
court to terminate those services after finding, by clear and convincing evidence, that:
a) Circumstances now exist that, had they previously existed, would have led the court to bypass
or not order reunification services; or,
b) The action or inaction of the parent or guardian creates a substantial likelihood that
reunification will not occur, including but not limited to the parent's or guardian's failure to visit
the child, or the failure to participate regularly and make substantive progress in a court-ordered
treatment plan. (WIC 388 (c))
FISCAL EFFECT: Unknown.
COMMENTS:
CalWORKs: The CalWORKs program provides monthly income assistance and
employment-related services aimed at moving children out of poverty and helping families meet
basic needs. Federal funding for CalWORKs comes from the TANF block grant. The average
2016-17 monthly CalWORKs cash grant is $533.67 per household, and the maximum monthly
grant amount for a family of three, if the family has no other income and lives in a high-cost
county, is currently $714. According to recent data from the Department of Social Services
(DSS), over 508,000 families rely on CalWORKs, including close to one million children.
Maximum grant amounts in high-cost counties of $714 per month for a family of three with no
other income means about $23.80 per day, per family, or $7.93 per family member, per day to
meet basic needs, including rent, clothing, utility bills, food, and anything else a family needs to
ensure children can be cared for at home and safely remain with their families. This grant amount
puts the annual household income at $8,568 per year, or 42% of the poverty level. Federal
Poverty Guidelines for 2017 indicate that the poverty threshold for a family of three is $20,420
per year.
Homelessness in California: The US Department of Housing and Urban Development (HUD), in
its Annual Homeless Assessment Report (AHAR), reported that on a single night in 2016, there
were 549,928 homeless people counted in the United States (194,716 of these individuals were
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people who were part of homeless families with children). That same report revealed that 22%
(118,142) of those people experiencing homelessness were counted in California, 78,390 of which
were unsheltered. It is important to note that this number is for a single night and is neither
exhaustive of the number of Californians experiencing homelessness on a daily basis nor the
number of Californians who experience homelessness each year.
Homelessness has particularly damaging effects on children. According to the National Center on
Family Homelessness, nearly 2.5 million children in the US will experience homelessness over
the course of a year. The AHAR revealed that on that same night in 2016, 22% of homeless
individuals were children under age 18. The effects of homelessness on children span from
hunger and related physical, cognitive and developmental issues to lowered academic
achievement and increases in stress, depression, emotional instability and overall poor mental
health.
CalWORKs homeless assistance: For purposes of identifying families eligible for CalWORKs
homeless assistance, a family is considered homeless if the family lacks a fixed and regular
nighttime residence, if the family's primary nighttime residence is a shelter, or if the family is
residing in a public or private place that is not an appropriate sleeping place for human beings.
Additionally, a family can be considered homeless for CalWORKs purposes if the family has
received an eviction notice and the cause of eviction is the result of a verified financial hardship.
Temporary shelter assistance and permanent housing assistance are two types of housing
assistance provided to homeless families under the CalWORKs program. Whereas permanent
housing assistance can be provided to help secure or maintain permanent housing and help
prevent eviction for a family, temporary shelter assistance is provided to homeless families for up
to 16 consecutive days. Temporary shelter assistance for a family of up to four people is $65 per
day, and $15 is provided for each additional family member. The maximum amount of temporary
shelter assistance any family can receive is $125 per day, and the assistance can only be used to
pay for housing provided in a commercial establishment, a shelter, or an established rental
property. Additionally, CalWORKs recipients must provide proof to the county that they are
searching for permanent housing while they are receiving this benefit and proof that the shelter
assistance was used to pay for allowable housing. Any break in the use of the assistance, including
one night spent with a friend or relative, automatically terminates a family's ability to receive
shelter assistance for any days remaining within the 16 consecutive day limit. The 16 consecutive
day limit is an annual limit for temporary shelter assistance, provided that a family doesn't meet
criteria for an exception. A family may receive temporary shelter assistance for two periods of up
to 16 consecutive days if the family's homelessness is the direct result of domestic violence as
verified by a sworn statement.
In California each month, county CalWORKs offices receive an average of 4,300 requests for
homeless assistance.
Reunification services: The court may order reunification services for parents who have had a
child removed from the home and placed into the dependency system when it is determined that
reunification with the family would ultimately benefit the child. These services can encompass a
range of supports, including parenting classes, substance abuse treatment, family therapy, and
home visiting, among others, aimed at responding to the needs of the child and the parents.
Depending on the child's age, reunification services can be offered for between 6 months (for
children under the age of 3) and 12 months (for children ages 3 and older). Extensions for certain
circumstances may be granted if there is a substantial probability that the child will be returned to
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circumstances may be granted if there is a substantial probability that the child will be returned to
the physical custody of his or her parents, and for parents in certain circumstances, including
those making significant and consistent progress in a court-ordered residential substance abuse
treatment program, or recently discharged from incarceration, institutionalization, or the custody
of the United States Department of Homeland Security and making progress in establishing a safe
home for the child.
Need for this bill: According to the author, "Because the temporary housing assistance is only
available for 16 consecutive days, a break in assistance inadvertently punishes families who, for
one reason or another, have to vacate their temporary lodgings for even one day. Out-of-area
travel for job opportunities, childcare obligations, or medical related travel can interrupt a 16-day
consecutive hotel stay. Sometimes the interruptions in the 16-day consecutive stay come when a
family vacates a hotel or motel because it is unsuited for children or they have a temporary offer
to stay with a family or friend. Whether or not the family has a choice to stop aid before the 16th
day, the rule itself establishes a disincentive to find alternative arrangements, seek prospective
opportunities for employment, or to tend to pressing health or family obligations during this time
period. Further, the current per diem rate is insufficient for families with children and contributes
to their conflict of not being able to find adequate shelter. The purpose of the CalWORKs
temporary housing assistance is to enable homeless families with children to stay off of the street
and more quickly secure permanent housing. [This bill] strengthens the ability of the program to
achieve that goal by increasing options for our state's poorest families with children and
improving program administration."
PRIOR LEGISLATION:
AB 1603 (Assembly Committee on Budget), Chapter 25, Statutes of 2016, among other things,
permitted CalWORKs families receiving a temporary or permanent benefit under the Homeless
Assistance Program to, as of January 1, 2017, receive this benefit once every 12 months, versus
once in a lifetime.
AB 2631 (Santiago), 2016, would have removed the once-in-a-lifetime limit on CalWORKs
homeless assistance benefits and extended from 16 days per lifetime to 30 days, per year, the
permissible length of time for receipt of temporary shelter assistance. It died in the Assembly
Appropriations Committee.
AB 702 (Maienschein), 2015, was substantially similar to AB 264 (Maienschein), 2014. It died in
the Senate Appropriations Committee.
AB 264 (Maienschein), 2014, would have deleted the requirement that CalWORKs temporary
shelter assistance be provided consecutively to a limit of 16 days and instead allowed a family to
receive temporary shelter assistance for a total of 16 calendar days to be used at any time they
were both homeless and receiving CalWORKs aid. It died in the Senate Appropriations
Committee.
AB 1452 (Stone), 2014, would have provided additional temporary assistance to homeless
families receiving CalWORKs benefits by increasing the daily temporary shelter assistance
amount from $65 to $75 and attaching an annual cost of living adjustment to that amount. It died
in the Senate Appropriations Committee.
REGISTERED SUPPORT / OPPOSITION:
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Support
Coalition of California Welfare Rights Organizations, Inc., (Co-sponsor)
County Welfare Directors Association of California (CWDA) (Co-sponsor)
American Federation of State, County and Municipal Employees
California Alternative Payment Program (CAPPA)
California Association of Food Banks
California Catholic Conference, Inc.
California School Board Association (CSBA)
California State Association of Counties (CSAC)
Center for Law and Social Policy (CLASP)
Courage Campaign
Friends Committee on Legislation of CA (FCLCA)
San Francisco Living Wage Coalition
Santa Clara County Board of Supervisors
Ventura County Board of Supervisors
Western Center on Law and Poverty
Opposition
None on File.
Analysis Prepared by: Daphne Hunt / HUM. S. / (916) 319-2089
Recommendation(s)/Next Step(s):
CONSIDER recommending to the Board of Supervisors a position of "Support" on AB 236
(Maienschein): CalWORKs Housing Assistance, as recommended by staff of EHSD.
Attachments
Attachment A: Bill Text AB 236
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california legislature—2017–18 regular session
ASSEMBLY BILL No. 236
Introduced by Assembly Member Maienschein
January 30, 2017
An act to amend Section 11450 of the Welfare and Institutions Code,
relating to CalWORKs.
legislative counsel’s digest
AB 236, as introduced, Maienschein. CalWORKs: housing assistance.
Existing law establishes the California Work Opportunity and
Responsibility to Kids (CalWORKs) program under which, through a
combination of federal, state, and county funds, each county provides
cash assistance and other benefits to qualified low-income families. As
part of the CalWORKs program, a homeless family that has used all
available liquid resources in excess of $100 is eligible for homeless
assistance benefits to pay the costs of temporary shelter if the family is
eligible for aid under the CalWORKs program. Under existing law, the
nonrecurring special needs benefit to pay for temporary shelter for a
family of up to 4 is $65 a day, and the 5th and additional members of
the family each receive $15 per day, up to a daily maximum of $125.
Under existing law, eligibility for temporary shelter assistance is limited
to one period of up to 16 consecutive days every 12 months, except
when the homelessness is caused by domestic violence that is verified
by a sworn statement of the victim, in which case eligibility for
temporary shelter assistance is limited to 2 periods of up to 16
consecutive calendar days.
This bill would also provide that homeless assistance is available to
homeless families that would be eligible for aid under the CalWORKs
program but for the fact that the only child or children in the family are
99
Attachment A
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in out-of-home placement pursuant to an order of the dependency court,
if the family is receiving reunification services and the county
determines that homeless assistance is necessary for reunification to
occur. The bill would also provide that the nonrecurring special needs
benefit to pay for temporary shelter for a family of up to 4 is $85 a day,
and the daily maximum is $145. The bill would delete the requirement
that homeless assistance be used in consecutive calendar days. Because
this bill would increase the administrative duties of counties, it would
impose a state-mandated local program.
Existing law continuously appropriates moneys from the General
Fund to defray a portion of county costs under the CalWORKs program.
This bill would, instead, provide that the continuous appropriation
would not be made for purposes of implementing the bill.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to the statutory
provisions noted above.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 11450 of the Welfare and Institutions
line 2 Code is amended to read:
line 3 11450. (a) (1) (A) Aid shall be paid for each needy family,
line 4 which shall include all eligible brothers and sisters of each eligible
line 5 applicant or recipient child and the parents of the children, but
line 6 shall not include unborn children, or recipients of aid under Chapter
line 7 3 (commencing with Section 12000), qualified for aid under this
line 8 chapter. In determining the amount of aid paid, and notwithstanding
line 9 the minimum basic standards of adequate care specified in Section
line 10 11452, the family’s income, exclusive of any amounts considered
line 11 exempt as income or paid pursuant to subdivision (e) or Section
line 12 11453.1, determined for the prospective semiannual period
line 13 pursuant to Sections 11265.1, 11265.2, and 11265.3, and then
line 14 calculated pursuant to Section 11451.5, shall be deducted from
line 15 the sum specified in the following table, as adjusted for
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— 2 —AB 236
Attachment A
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line 1 cost-of-living increases pursuant to Section 11453 and paragraph
line 2 (2). In no case shall the amount of aid paid for each month exceed
line 3 the sum specified in the following table, as adjusted for
line 4 cost-of-living increases pursuant to Section 11453 and paragraph
line 5 (2), plus any special needs, as specified in subdivisions (c), (e),
line 6 and (f):
line 7
line 8
line 9
line 10 Maximum
line 11 aid
Number of
eligible needy
persons in
the same home
line 12 $ 326 1..................................................................................
line 13 535 2..................................................................................
line 14 663 3..................................................................................
line 15 788 4..................................................................................
line 16 899 5..................................................................................
line 17 1,010 6..................................................................................
line 18 1,109 7..................................................................................
line 19 1,209 8..................................................................................
line 20 1,306 9..................................................................................
line 21 1,403 10 or more....................................................................
line 22
line 23 (B) If, when, and during those times that the United States
line 24 government increases or decreases its contributions in assistance
line 25 of needy children in this state above or below the amount paid on
line 26 July 1, 1972, the amounts specified in the above table shall be
line 27 increased or decreased by an amount equal to that increase or
line 28 decrease by the United States government, provided that no
line 29 increase or decrease shall be subject to subsequent adjustment
line 30 pursuant to Section 11453.
line 31 (2) The sums specified in paragraph (1) shall not be adjusted
line 32 for cost of living for the 1990–91, 1991–92, 1992–93, 1993–94,
line 33 1994–95, 1995–96, 1996–97, and 1997–98 fiscal years, and through
line 34 October 31, 1998, nor shall that amount be included in the base
line 35 for calculating any cost-of-living increases for any fiscal year
line 36 thereafter. Elimination of the cost-of-living adjustment pursuant
line 37 to this paragraph shall satisfy the requirements of Section 11453.05,
line 38 and no further reduction shall be made pursuant to that section.
line 39 (b) (1) When the family does not include a needy child qualified
line 40 for aid under this chapter, aid shall be paid to a pregnant child who
99
AB 236— 3 — Attachment A
167 of 245
line 1 is 18 years of age or younger at any time after verification of
line 2 pregnancy, in the amount that would otherwise be paid to one
line 3 person, as specified in subdivision (a), if the child and her child,
line 4 if born, would have qualified for aid under this chapter. Verification
line 5 of pregnancy shall be required as a condition of eligibility for aid
line 6 under this subdivision.
line 7 (2) Notwithstanding paragraph (1), when the family does not
line 8 include a needy child qualified for aid under this chapter, aid shall
line 9 be paid to a pregnant woman for the month in which the birth is
line 10 anticipated and for the six-month period immediately prior to the
line 11 month in which the birth is anticipated, in the amount that would
line 12 otherwise be paid to one person, as specified in subdivision (a), if
line 13 the woman and child, if born, would have qualified for aid under
line 14 this chapter. Verification of pregnancy shall be required as a
line 15 condition of eligibility for aid under this subdivision.
line 16 (3) Paragraph (1) shall apply only when the Cal-Learn Program
line 17 is operative.
line 18 (c) The amount of forty-seven dollars ($47) per month shall be
line 19 paid to pregnant women qualified for aid under subdivision (a) or
line 20 (b) to meet special needs resulting from pregnancy if the woman
line 21 and child, if born, would have qualified for aid under this chapter.
line 22 County welfare departments shall refer all recipients of aid under
line 23 this subdivision to a local provider of the Women, Infants, and
line 24 Children program. If that payment to pregnant women qualified
line 25 for aid under subdivision (a) is considered income under federal
line 26 law in the first five months of pregnancy, payments under this
line 27 subdivision shall not apply to persons eligible under subdivision
line 28 (a), except for the month in which birth is anticipated and for the
line 29 three-month period immediately prior to the month in which
line 30 delivery is anticipated, if the woman and child, if born, would have
line 31 qualified for aid under this chapter.
line 32 (d) For children receiving AFDC-FC under this chapter, there
line 33 shall be paid, exclusive of any amount considered exempt as
line 34 income, an amount of aid each month that, when added to the
line 35 child’s income, is equal to the rate specified in Section 11460,
line 36 11461, 11462, 11462.1, or 11463. In addition, the child shall be
line 37 eligible for special needs, as specified in departmental regulations.
line 38 (e) In addition to the amounts payable under subdivision (a)
line 39 and Section 11453.1, a family shall be entitled to receive an
line 40 allowance for recurring special needs not common to a majority
99
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Attachment A
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line 1 of recipients. These recurring special needs shall include, but not
line 2 be limited to, special diets upon the recommendation of a physician
line 3 for circumstances other than pregnancy, and unusual costs of
line 4 transportation, laundry, housekeeping services, telephone, and
line 5 utilities. The recurring special needs allowance for each family
line 6 per month shall not exceed that amount resulting from multiplying
line 7 the sum of ten dollars ($10) by the number of recipients in the
line 8 family who are eligible for assistance.
line 9 (f) After a family has used all available liquid resources, both
line 10 exempt and nonexempt, in excess of one hundred dollars ($100),
line 11 with the exception of funds deposited in a restricted account
line 12 described in subdivision (a) of Section 11155.2, the family shall
line 13 also be entitled to receive an allowance for nonrecurring special
line 14 needs.
line 15 (1) An allowance for nonrecurring special needs shall be granted
line 16 for replacement of clothing and household equipment and for
line 17 emergency housing needs other than those needs addressed by
line 18 paragraph (2). These needs shall be caused by sudden and unusual
line 19 circumstances beyond the control of the needy family. The
line 20 department shall establish the allowance for each of the
line 21 nonrecurring special needs items. The sum of all nonrecurring
line 22 special needs provided by this subdivision shall not exceed six
line 23 hundred dollars ($600) per event.
line 24 (2) (A) (i) Homeless assistance is available to a homeless
line 25 family seeking shelter when the family is eligible for aid under
line 26 this chapter. Homeless
line 27 (ii) Homeless assistance for temporary shelter is also available
line 28 to homeless families that are apparently eligible for aid under this
line 29 chapter. Apparent eligibility exists when evidence presented by
line 30 the applicant, or that is otherwise available to the county welfare
line 31 department, and the information provided on the application
line 32 documents indicate that there would be eligibility for aid under
line 33 this chapter if the evidence and information were verified.
line 34 However, an alien applicant who does not provide verification of
line 35 his or her eligible alien status, or a woman with no eligible children
line 36 who does not provide medical verification of pregnancy, is not
line 37 apparently eligible for purposes of this section.
line 38 (iii) Homeless assistance for temporary shelter is also available
line 39 to homeless families that would be eligible for aid under this
line 40 chapter but for the fact that the only child or children in the family
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AB 236— 5 — Attachment A
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line 1 are in out-of-home placement pursuant to an order of the
line 2 dependency court, if the family is receiving reunification services
line 3 and the county determines that homeless assistance is necessary
line 4 for reunification to occur.
line 5 (B) A family is considered homeless, for the purpose of this
line 6 section, when the family lacks a fixed and regular nighttime
line 7 residence; or the family has a primary nighttime residence that is
line 8 a supervised publicly or privately operated shelter designed to
line 9 provide temporary living accommodations; or the family is residing
line 10 in a public or private place not designed for, or ordinarily used as,
line 11 a regular sleeping accommodation for human beings. A family is
line 12 also considered homeless for the purpose of this section if the
line 13 family has received a notice to pay rent or quit. The family shall
line 14 demonstrate that the eviction is the result of a verified financial
line 15 hardship as a result of extraordinary circumstances beyond their
line 16 control, and not other lease or rental violations, and that the family
line 17 is experiencing a financial crisis that could result in homelessness
line 18 if preventative assistance is not provided.
line 19 (3) (A) (i) A nonrecurring special needs benefit of sixty-five
line 20 dollars ($65) eighty-five dollars ($85) a day shall be available to
line 21 families of up to four members for the costs of temporary shelter,
line 22 subject to the requirements of this paragraph. The fifth and
line 23 additional members of the family shall each receive fifteen dollars
line 24 ($15) per day, up to a daily maximum of one hundred twenty-five
line 25 dollars ($125). forty-five dollars ($145). County welfare
line 26 departments may increase the daily amount available for temporary
line 27 shelter as necessary to secure the additional bedspace needed by
line 28 the family.
line 29 (ii) This special needs benefit shall be granted or denied
line 30 immediately upon the family’s application for homeless assistance,
line 31 and benefits shall be available for up to three working days. The
line 32 county welfare department shall verify the family’s homelessness
line 33 within the first three working days and if the family meets the
line 34 criteria of questionable homelessness established by the
line 35 department, the county welfare department shall refer the family
line 36 to its early fraud prevention and detection unit, if the county has
line 37 such a unit, for assistance in the verification of homelessness within
line 38 this period.
line 39 (iii) After homelessness has been verified, the three-day limit
line 40 shall be extended for a period of time which, when added to the
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— 6 —AB 236
Attachment A
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line 1 initial benefits provided, does not exceed a total of 16 calendar
line 2 days. This extension of benefits shall be done in increments of one
line 3 week and shall be based upon searching for permanent housing
line 4 which shall be documented on a housing search form, good cause,
line 5 or other circumstances defined by the department. Documentation
line 6 of a housing search shall be required for the initial extension of
line 7 benefits beyond the three-day limit and on a weekly basis thereafter
line 8 as long as the family is receiving temporary shelter benefits. Good
line 9 cause shall include, but is not limited to, situations in which the
line 10 county welfare department has determined that the family, to the
line 11 extent it is capable, has made a good faith but unsuccessful effort
line 12 to secure permanent housing while receiving temporary shelter
line 13 benefits.
line 14 (B) (i) A nonrecurring special needs benefit for permanent
line 15 housing assistance is available to pay for last month’s rent and
line 16 security deposits when these payments are reasonable conditions
line 17 of securing a residence, or to pay for up to two months of rent
line 18 arrearages, when these payments are a reasonable condition of
line 19 preventing eviction.
line 20 (ii) The last month’s rent or monthly arrearage portion of the
line 21 payment (I) shall not exceed 80 percent of the family’s total
line 22 monthly household income without the value of CalFresh benefits
line 23 or special needs benefit for a family of that size and (II) shall only
line 24 be made to families that have found permanent housing costing
line 25 no more than 80 percent of the family’s total monthly household
line 26 income without the value of CalFresh benefits or special needs
line 27 benefit for a family of that size.
line 28 (iii) However, if the county welfare department determines that
line 29 a family intends to reside with individuals who will be sharing
line 30 housing costs, the county welfare department shall, in appropriate
line 31 circumstances, set aside the condition specified in subclause (II)
line 32 of clause (ii).
line 33 (C) The nonrecurring special needs benefit for permanent
line 34 housing assistance is also available to cover the standard costs of
line 35 deposits for utilities which are necessary for the health and safety
line 36 of the family.
line 37 (D) A payment for or denial of permanent housing assistance
line 38 shall be issued no later than one working day from the time that a
line 39 family presents evidence of the availability of permanent housing.
line 40 If an applicant family provides evidence of the availability of
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line 1 permanent housing before the county welfare department has
line 2 established eligibility for aid under this chapter, the county welfare
line 3 department shall complete the eligibility determination so that the
line 4 denial of or payment for payment for, or denial of, permanent
line 5 housing assistance is issued within one working day from the
line 6 submission of evidence of the availability of permanent housing,
line 7 unless the family has failed to provide all of the verification
line 8 necessary to establish eligibility for aid under this chapter.
line 9 (E) (i) Except as provided in clauses (ii) and (iii), eligibility
line 10 for the temporary shelter assistance and the permanent housing
line 11 assistance pursuant to this paragraph shall be limited to one period
line 12 of up to 16 consecutive a maximum of 16 calendar days of
line 13 temporary assistance and one payment of permanent assistance
line 14 every 12 months. A person who applies for homeless assistance
line 15 benefits shall be informed that the temporary shelter benefit of up
line 16 to 16 consecutive days is available only once every 12 months,
line 17 with certain exceptions, and that a break in the consecutive use of
line 18 the benefit constitutes exhaustion of the temporary benefit that,
line 19 with certain exceptions, the temporary shelter benefit is limited to
line 20 a maximum of 16 calendar days for that 12-month period.
line 21 (ii) A family that becomes homeless as a direct and primary
line 22 result of a state or federally declared natural disaster shall be
line 23 eligible for temporary and permanent homeless assistance.
line 24 (iii) A family shall be eligible for temporary and permanent
line 25 homeless assistance when homelessness is a direct result of
line 26 domestic violence by a spouse, partner, or roommate; physical or
line 27 mental illness that is medically verified that shall not include a
line 28 diagnosis of alcoholism, drug addiction, or psychological stress;
line 29 or, the uninhabitability of the former residence caused by sudden
line 30 and unusual circumstances beyond the control of the family
line 31 including natural catastrophe, fire, or condemnation. These
line 32 circumstances shall be verified by a third-party governmental or
line 33 private health and human services agency, except that domestic
line 34 violence may also be verified by a sworn statement by the victim,
line 35 as provided under Section 11495.25. Homeless assistance payments
line 36 based on these specific circumstances may not be received more
line 37 often than once in any 12-month period. In addition, if the domestic
line 38 violence is verified by a sworn statement by the victim, the
line 39 homeless assistance payments shall be limited to two periods of
line 40 not more than 16 consecutive a maximum of 32 calendar days of
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line 1 temporary assistance and two payments of permanent assistance.
line 2 A county may require that a recipient of homeless assistance
line 3 benefits who qualifies under this paragraph for a second time in a
line 4 24-month period participate in a homelessness avoidance case plan
line 5 as a condition of eligibility for homeless assistance benefits. The
line 6 county welfare department shall immediately inform recipients
line 7 who verify domestic violence by a sworn statement of the
line 8 availability of domestic violence counseling and services, and refer
line 9 those recipients to services upon request.
line 10 (iv) If a county requires a recipient who verifies domestic
line 11 violence by a sworn statement to participate in a homelessness
line 12 avoidance case plan pursuant to clause (iii), the plan shall include
line 13 the provision of domestic violence services, if appropriate.
line 14 (v) If a recipient seeking homeless assistance based on domestic
line 15 violence pursuant to clause (iii) has previously received homeless
line 16 avoidance services based on domestic violence, the county shall
line 17 review whether services were offered to the recipient and consider
line 18 what additional services would assist the recipient in leaving the
line 19 domestic violence situation.
line 20 (vi) The county welfare department shall report necessary data
line 21 to the department through a statewide homeless assistance payment
line 22 indicator system, as requested by the department, regarding all
line 23 recipients of aid under this paragraph.
line 24 (F) The county welfare departments, and all other entities
line 25 participating in the costs of the CalWORKs program, have the
line 26 right in their share to any refunds resulting from payment of the
line 27 permanent housing. However, if an emergency requires the family
line 28 to move within the 12-month period specified in subparagraph
line 29 (E), the family shall be allowed to use any refunds received from
line 30 its deposits to meet the costs of moving to another residence.
line 31 (G) Payments to providers for temporary shelter and permanent
line 32 housing and utilities shall be made on behalf of families requesting
line 33 these payments.
line 34 (H) The daily amount for the temporary shelter special needs
line 35 benefit for homeless assistance may be increased if authorized by
line 36 the current year’s Budget Act by specifying a different daily
line 37 allowance and appropriating the funds therefor.
line 38 (I) No payment shall be made pursuant to this paragraph unless
line 39 the provider of housing is a commercial establishment, shelter, or
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AB 236— 9 — Attachment A
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line 1 person in the business of renting properties who has a history of
line 2 renting properties.
line 3 (g) The department shall establish rules and regulations ensuring
line 4 the uniform statewide application of this section.
line 5 (h) The department shall notify all applicants and recipients of
line 6 aid through the standardized application form that these benefits
line 7 are available and shall provide an opportunity for recipients to
line 8 apply for the funds quickly and efficiently.
line 9 (i) (A) Except for the purposes of Section 15200, the amounts
line 10 payable to recipients pursuant to Section 11453.1 shall not
line 11 constitute part of the payment schedule set forth in subdivision
line 12 (a).
line 13 (B) The amounts payable to recipients pursuant to Section
line 14 11453.1 shall not constitute income to recipients of aid under this
line 15 section.
line 16 (j) For children receiving Kin-GAP pursuant to Article 4.5
line 17 (commencing with Section 11360) or Article 4.7 (commencing
line 18 with Section 11385) there shall be paid, exclusive of any amount
line 19 considered exempt as income, an amount of aid each month, which,
line 20 when added to the child’s income, is equal to the rate specified in
line 21 Sections 11364 and 11387.
line 22 (k) (1) A county shall implement the semiannual reporting
line 23 requirements in accordance with Chapter 501 of the Statutes of
line 24 2011 no later than October 1, 2013.
line 25 (2) Upon completion of the implementation described in
line 26 paragraph (1), each county shall provide a certificate to the director
line 27 certifying that semiannual reporting has been implemented in the
line 28 county.
line 29 (3) Upon filing the certificate described in paragraph (2), a
line 30 county shall comply with the semiannual reporting provisions of
line 31 this section.
line 32 (l) This section shall become operative on January 1, 2017.
line 33 SEC. 2. No appropriation pursuant to Section 15200 of the
line 34 Welfare and Institutions Code shall be made for purposes of this
line 35 act.
line 36 SEC. 3. If the Commission on State Mandates determines that
line 37 this act contains costs mandated by the state, reimbursement to
line 38 local agencies and school districts for those costs shall be made
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Attachment A
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line 1 pursuant to Part 7 (commencing with Section 17500) of Division
line 2 4 of Title 2 of the Government Code.
O
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LEGISLATION COMMITTEE 9.
Meeting Date:03/13/2017
Subject:AB 435 (Thurmond): Child Care Subsidy Plans: County of Contra Costa
Submitted For: LEGISLATION COMMITTEE,
Department:County Administrator
Referral No.: 2017-09
Referral Name: AB 435 (Thurmond): Child Care Subsidy Plans: County of Contra Costa
Presenter: Camilla Rand, Community Services
Bureau
Contact: L. DeLaney,
925-335-1097
Referral History:
Sean Casey, Executive Director of First 5 Contra Costa, and Ruth Fernandez, Manager of
Education Services for the Contra Costa County Office of Education, took the lead in sponsoring
this bill with Assembly Member Tony Thurmond. However, the Director of the Community
Services Bureau, Camilla Rand, states that they have been wanting to pursue this as well, as it is a
"significant step to aligning the State guidelines with Head Start and also streamlining so many of
the processes."
There are several related policies in the Board's adopted 2017 State Platform, including:
136. SUPPORT efforts to increase the number of subsidized child care slots to address the
shortage of over 20,000 slots serving children 0-12 years of age in Contra Costa County; and
SUPPORT efforts to enhance the quality of early learning programs and maintain local Quality
Rating and Improvement Systems (QRIS) for early learning providers. Affordable child care is
key to low-income workers remaining employed and there is a significant dearth of subsidized
child care slots. Increasing quality of early learning is important to developing skills in the next
generation.
137. SUPPORT legislation to expand early child care and education and increase funding for
preschool and early learning.
AB 435 does not bring in more money directly but. rather, ensures current funds are maximized
and not underutilized, while allowing more children to be served through broader eligibility
guidelines, supporting policy #136 - the huge unmet need in this county.
Referral Update:
AB 435 (Thurmond): Child Care Subsidy Plans: County of Contra Costa is authored by a Contra
176 of 245
AB 435 (Thurmond): Child Care Subsidy Plans: County of Contra Costa is authored by a Contra
Costa legislator, Mr. Tony Thurmond.
Disposition:Pending
Location:Assembly Human Services Committee
AB 435 authorizes the County of Contra Costa to develop and submit an individualized county
child care subsidy plan. The Draft Fact Sheet is Attachment A. The bill text is Attachment B.
Recommendation(s)/Next Step(s):
CONSIDER recommending to the Board of Supervisors a position of "Support" on AB 435
(Thurmond): Child Care Subsidy Plans: County of Contra Costa.
Fiscal Impact (if any):
There is no change in the total dollar amount allocated to stated contracts in Contra Costa under
this bill; the “rules” would allow more effective use of these funds to ensure they are spent. Last
year Contra Costa contractors combined left 7% of the total allocation unspent. By pooling
resources, more children will be served – no additional dollars .
Attachments
Attachment A: AB 435 Draft Fact Sheet
Attachment B: AB 435 Bill Text
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Factsheet for AB 435 (Thurmond), Updated February 9th, 2017
AB 435 – Contra Costa Child Care Subsidy Pilot
IN BRIEF
AB 435 would authorize Contra Costa County
to develop and implement an individualized county
child care subsidy plan. The authorization would
sunset January 1, 2022.
BACKGROUND
In 2003, AB 1326 (Simitian) authorized San
Mateo County to develop and implement an
individualized county child care subsidy plan to
respond to challenges that the state child care subsidy
system (with its single statewide income eligibility
criteria, reimbursement and fund restrictions)
presents to children, working families and providers
in a county where the cost of living is well beyond the
state median.
The plan was designed by the diverse
members of the local child care planning council and
subsequently approved by the San Mateo County
Board of Supervisors and the San Mateo County
Superintendent of Schools in 2004. The California
Department of Education approved the plan for
implementation on October 1, 2004.
In 2005, SB 701 (Migden) authorized the City
and County of San Francisco to develop and
implement its own individualized county child care
subsidy plan, modeled on San Mateo County’s pilot
project. San Francisco’s plan was developed and
approved for implementation on September 8, 2005.
Due to the success of the plans, the Legislature made
the San Mateo and San Francisco county pilots
permanent last year.
Also, last year AB 833 (Bonta) authorized the
Alameda County to develop its own individualized
county child care subsidy plan, which would sunset
January 1, 2021. Following Alameda, San Francisco
and San Mateo’s footsteps, in 2016, AB 2368
(Gordon) authorized Santa Clara County to develop
its own individualized child care subsidy plan until
January 1, 2022.
The fiscal reality of living in a high-cost
county means that many families are deemed
ineligible for subsidized child care and that provider
reimbursement rates are insufficient to cover the cost,
as a result, child care subsidy funds allocated to
Contra Costa County are not fully utilized or
expended.
In fact, according to Contra Costa County’s
Local Early Education Planning Council,
approximately $3.8 million under the Title 5 state
subsidized child care contracts has been returned to
the state for fiscal year 2015-16.
Further, Contra Costa County has lost
subsidized child care contractors. For example, last
year, Kids Club in Antioch ended its State Preschool
contract. This provider shut down its child care
program due to lack of available child care facilities to
continue operating a program that for years had been
located at an elementary school district site.
Other State Preschool contractors continue to
report challenges with operating their programs due
to the low state reimbursement rates paid to provide
high quality child care which inadequately cover their
operational costs, therefore concluding that it is no
longer cost effective to offer subsidized child care.
SOLUTION
Without taking funds from other counties, or
increasing state costs, this pilot (as did the previous
ones) would permit waivers of specific state rules: 1)
family eligibility criteria, 2) family fees, 3)
reimbursement rates, and 4) methods of maximizing
the efficient use of subsidy funds.
SUPPORT
First 5 Contra Costa (Sponsor)
FOR MORE INFORMATION
Isabella Gonzalez Potter, Office of Asm. Tony Thurmond
916-319-2015 | Isabella.GonzalezPotter@asm.ca.gov
Assemblymember Tony Thurmond, 15th Assembly District
DRAFT
Attachment A
178 of 245
california legislature—2017–18 regular session
ASSEMBLY BILL No. 435
Introduced by Assembly Member Thurmond
February 13, 2017
An act to add and repeal Article 15.1.1 (commencing with Section
8333) of Chapter 2 of Part 6 of Division 1 of Title 1 of the Education
Code, relating to child care.
legislative counsel’s digest
AB 435, as introduced, Thurmond. Child care subsidy plans: County
of Contra Costa.
The Child Care and Development Services Act has a purpose of
providing a comprehensive, coordinated, and cost-effective system of
child care and development services for children from infancy to 13
years of age and their parents, including a full range of supervision,
health, and support services through full- and part-time programs.
Existing law requires the Superintendent of Public Instruction to develop
standards for the implementation of quality child care programs. Existing
law authorizes the County of Alameda and the County of Santa Clara,
as a pilot project, to develop an individualized county child care subsidy
plan, as provided.
This bill would authorize, until January 1, 2023, the County of Contra
Costa to develop an individualized county child care subsidy plan, as
specified. The bill would require the plan to be submitted to the local
planning council and the Contra Costa County Board of Supervisors
for approval, as specified. The bill would require the Early Education
and Support Division of the State Department of Education to review
and approve or disapprove the plan and any subsequent modifications
to the plan. The bill would require the County of Contra Costa to
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Attachment B
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annually prepare and submit to the Legislature, the State Department
of Social Services, and the State Department of Education a report that
contains specified information relating to the success of the county’s
plan.
This bill would make legislative findings and declarations as to the
necessity of a special statute for the County of Contra Costa.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. It is the intent of the Legislature to build a stable,
line 2 comprehensive, and adequately funded high-quality early learning
line 3 and educational support system for children from birth to five years
line 4 of age, inclusive, with alignment and integration into the K–12
line 5 education system by strategically using state and federal funds,
line 6 and engaging all early care and education stakeholders, including
line 7 K–12 education stakeholders, in an effort to provide access to
line 8 affordable, high-quality services supported by adequate rates,
line 9 integrated data systems, and a strong infrastructure that supports
line 10 children and the educators that serve them.
line 11 SEC. 2. Article 15.1.1 (commencing with Section 8333) is
line 12 added to Chapter 2 of Part 6 of Division 1 of Title 1 of the
line 13 Education Code, to read:
line 14
line 15 Article 15.1.1. Individualized County of Contra Costa Child
line 16 Care Subsidy Plan
line 17
line 18 8333. The County of Contra Costa may, as a pilot project,
line 19 develop and implement an individualized county child care subsidy
line 20 plan. The plan shall ensure that child care subsidies received by
line 21 the County of Contra Costa are used to address local needs,
line 22 conditions, and priorities of working families in the community.
line 23 8333.1. For purposes of this article, “county” means the County
line 24 of Contra Costa.
line 25 8333.2. (a) For purposes of this article, “plan” means an
line 26 individualized county child care subsidy plan developed and
line 27 approved under the pilot project described in Section 8333, which
line 28 includes all of the following:
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Attachment B
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line 1 (1) An assessment to identify the county’s goal for its subsidized
line 2 child care system. The assessment shall examine whether the
line 3 current structure of subsidized child care funding adequately
line 4 supports working families in the county and whether the county’s
line 5 child care goals coincide with the state’s requirements for funding,
line 6 eligibility, priority, and reimbursement. The assessment shall also
line 7 identify barriers in the state’s child care subsidy system that inhibit
line 8 the county from meeting its child care goals. In conducting the
line 9 assessment, the county shall consider all of the following:
line 10 (A) The general demographics of families who are in need of
line 11 child care, including employment, income, language, ethnic, and
line 12 family composition.
line 13 (B) The current supply of available subsidized child care.
line 14 (C) The level of need for various types of subsidized child care
line 15 services, including, but not limited to, infant care, after-hours care,
line 16 and care for children with exceptional needs.
line 17 (D) The county’s self-sufficiency income level.
line 18 (E) Income eligibility levels for subsidized child care.
line 19 (F) Family fees.
line 20 (G) The cost of providing child care.
line 21 (H) The regional market rates, as established by the department,
line 22 for different types of child care.
line 23 (I) The standard reimbursement rate or state per diem for centers
line 24 operating under contracts with the department.
line 25 (J) Trends in the county’s unemployment rate and housing
line 26 affordability index.
line 27 (2) (A) Development of a local policy to eliminate state-imposed
line 28 regulatory barriers to the county’s achievement of its desired
line 29 outcomes for subsidized child care.
line 30 (B) The local policy shall do all of the following:
line 31 (i) Prioritize lowest income families first.
line 32 (ii) Follow the family fee schedule established pursuant to
line 33 Section 8263 for those families that are income eligible, as defined
line 34 by Section 8263.1.
line 35 (iii) Meet local goals that are consistent with the state’s child
line 36 care goals.
line 37 (iv) Identify existing policies that would be affected by the
line 38 county’s plan.
line 39 (v) (I) Authorize an agency that provides child care and
line 40 development services in the county through a contract with the
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AB 435— 3 — Attachment B
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line 1 department to apply to the department to amend existing contracts
line 2 in order to benefit from the local policy.
line 3 (II) The department shall approve an application to amend an
line 4 existing contract if the plan is modified pursuant to Section 8333.3.
line 5 (III) The contract of a department contractor who does not elect
line 6 to request an amendment to its contract remains operative and
line 7 enforceable.
line 8 (C) The local policy may supersede state law concerning child
line 9 care subsidy programs with regard only to the following factors:
line 10 (i) Eligibility criteria, including, but not limited to, age, family
line 11 size, time limits, income level, inclusion of former and current
line 12 CalWORKs participants, and special needs considerations, except
line 13 that the local policy shall not deny or reduce eligibility of a family
line 14 that qualifies for child care pursuant to Section 8353. Under the
line 15 local policy, a family that qualifies for child care pursuant to
line 16 Section 8354 shall be treated for purposes of eligibility and fees
line 17 in the same manner as a family that qualifies for subsidized child
line 18 care on another basis pursuant to the local policy.
line 19 (ii) Fees, including, but not limited to, family fees, sliding scale
line 20 fees, and copayments for those families that are not income eligible,
line 21 as defined by Section 8263.1.
line 22 (iii) Reimbursement rates.
line 23 (iv) Methods of maximizing the efficient use of subsidy funds,
line 24 including, but not limited to, multiyear contracting with the
line 25 department for center-based child care, and interagency agreements
line 26 that allow for flexible and temporary transfer of funds among
line 27 agencies.
line 28 (v) Families with children enrolled in part-day California state
line 29 preschool programs services, pursuant to Article 7 (commencing
line 30 with Section 8235), may be eligible for up to two 180 day periods
line 31 within a 24 month period without the family being certified as a
line 32 new enrollment each year.
line 33 (3) Recognition that all funding sources utilized by contractors
line 34 that provide child care and development services in the county are
line 35 eligible to be included in the county’s plan.
line 36 (4) Establishment of measurable outcomes to evaluate the
line 37 success of the plan to achieve the county’s child care goals, and
line 38 to overcome any barriers identified in the state’s child care subsidy
line 39 system.
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Attachment B
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line 1 (b) Nothing in this section shall be construed to permit the
line 2 county to change the regional market rate survey results for the
line 3 county.
line 4 8333.3. (a) The plan shall be submitted to the local planning
line 5 council, as defined in subdivision (g) of Section 8499, for approval.
line 6 Upon approval of the plan by the local planning council, the Board
line 7 of Supervisors of the County of Contra Costa shall hold at least
line 8 one public hearing on the plan. Following the hearing, if the board
line 9 votes in favor of the plan, the plan shall be submitted to the Early
line 10 Education and Support Division of the department for review.
line 11 (b) Within 30 days of receiving the plan, the Early Education
line 12 and Support Division shall review and either approve or disapprove
line 13 the plan.
line 14 (c) Within 30 days of receiving a modification to the plan, the
line 15 Early Education and Support Division shall review and either
line 16 approve or disapprove that modification to the plan.
line 17 (d) The Early Education and Support Division may disapprove
line 18 only those portions of modifications to the plan that are not in
line 19 conformance with this article or that are in conflict with federal
line 20 law.
line 21 8333.4. The county shall, by the end of the first fiscal year of
line 22 operation under the approved child care subsidy plan, demonstrate,
line 23 in the report required pursuant to Section 8333.5, an increase in
line 24 the aggregate days a child is enrolled in child care in the county
line 25 as compared to the enrollment in the final quarter of the 2016–17
line 26 fiscal year.
line 27 8333.5. (a) The county shall annually prepare and submit to
line 28 the Legislature, the State Department of Social Services, and the
line 29 department a report that summarizes the success of the county’s
line 30 plan, and the county’s ability to maximize the use of funds and to
line 31 improve and stabilize child care in the county.
line 32 (b) A report to be submitted pursuant to subdivision (a) shall
line 33 be submitted in compliance with Section 9795 of the Government
line 34 Code.
line 35 8333.6. A participating contractor shall receive any increase
line 36 or decrease in funding that the contractor would have received if
line 37 the contractor had not participated in the plan.
line 38 8333.7. This article shall remain in effect only until January
line 39 1, 2023, and as of that date is repealed, unless a later enacted
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AB 435— 5 — Attachment B
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line 1 statute, that is enacted before January 1, 2023, deletes or extends
line 2 that date.
line 3 SEC. 3. The Legislature finds and declares that a special statute
line 4 is necessary and that a general statute cannot be made applicable
line 5 within the meaning of Section 16 of Article IV of the California
line 6 Constitution because of the unique circumstances in the County
line 7 of Contra Costa. Existing law does not reflect the fiscal reality of
line 8 living in the County of Contra Costa, a high-cost county where
line 9 the cost of living is well beyond the state median level, resulting
line 10 in reduced access to quality child care. In recognition of the
line 11 unintended consequences of living in a high-cost county, this act
line 12 is necessary to provide children and families in the County of
line 13 Contra Costa proper access to child care through an individualized
line 14 county child care subsidy plan.
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Attachment B
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LEGISLATION COMMITTEE 10.
Meeting Date:03/13/2017
Subject:AB 898 (Frazier): Property Taxation: Revenue Allocation and AB 899
(Frazier): Local Government Finance: Property Tax Revenue
Submitted For: LEGISLATION COMMITTEE,
Department:County Administrator
Referral No.: 2017-06
Referral Name: AB 898 and 899 (Frazier)
Presenter: L. DeLaney Contact: L. DeLaney, 925-335-1097
Referral History:
Both AB 898 (Frazier): Property Taxation: Revenue Allocation and AB 899 (Frazier): Local
Government Finance: Property Tax Revenue have been introduced as "spot" bills by Assembly
Member Frazier to provide additional property tax resources to fire services in East Contra Costa
County.
These bills were introduced on 2/16/17 and are in the 30 day period following bill introduction
during which bills cannot be amended; the bills have not been referred to committee. Staff is
awaiting additional information about the bills.
Referral Update:
AB 898: Property Taxation: Revenue Allocation. This bill would reallocates property tax revenue
to fire protection services. The current bill text is Attachment A.
AB 899: Local Government Finance: Property Tax Revenue. This bill provides for an election in
the County of Contra Costa for the purpose of reallocating property tax revenues for fire
protection services in that county. The bill text is Attachment B.
Recommendation(s)/Next Step(s):
DIRECT staff to continue to monitor the bill. DIRECT staff to work with the state advocate,
Cathy Christian, to request a meeting with Assembly Member Frazier to discuss the bills in more
detail.
Fiscal Impact (if any):
As proposed, the reallocation could potentially impact the County General Fund at approximately
$970,776 (current yearly estimate) and the Library’s share would be an additional $137,537.
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Attachments
Attachment A: AB 898 Bill Text
Attachment B: AB 899 Bill Text
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california legislature—2017–18 regular session
ASSEMBLY BILL No. 898
Introduced by Assembly Member Frazier
February 16, 2017
An act relating to taxation.
legislative counsel’s digest
AB 898, as introduced, Frazier. Property taxation: revenue allocation:
fire protection services.
Existing property tax law requires the county auditor, in each fiscal
year, to allocate property tax revenue to local jurisdictions in accordance
with specified formulas and procedures. Existing law generally requires
that each jurisdiction be allocated an amount equal to the total of the
amount of revenue allocated to that jurisdiction in the prior fiscal year,
subject to certain modifications, and that jurisdiction’s portion of the
annual tax increment, as defined. Existing law provides for the
computation, on the basis of these allocations, of apportionment factors
that are applied to actual property tax revenues in each county in order
to determine actual amounts of property tax revenue received by each
recipient jurisdiction. The California Constitution requires that a statute
that changes for any fiscal year the pro rata shares of ad valorem
property tax revenues that are allocated among local agencies in a county
be approved by a 2⁄3 vote of each house of the Legislature.
This bill would state the intent of the Legislature to enact legislation
that would reallocate property tax revenue to fire protection services.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
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Attachment A
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The people of the State of California do enact as follows:
line 1 SECTION 1. It is the intent of the Legislature to enact
line 2 legislation that would reallocate property tax revenue to fire
line 3 protection services.
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— 2 —AB 898
Attachment A
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california legislature—2017–18 regular session
ASSEMBLY BILL No. 899
Introduced by Assembly Member Frazier
February 16, 2017
An act relating to local government finance.
legislative counsel’s digest
AB 899, as introduced, Frazier. Local government finance: property
tax revenue allocations: County of Contra Costa.
Existing property tax law requires the county auditor, in each fiscal
year, to allocate property tax revenues to local jurisdictions in
accordance with specified formulas and procedures, and generally
requires that each jurisdiction be allocated an amount equal to the total
of the amount of revenue allocated to that jurisdiction in the prior fiscal
year, subject to certain modifications, and that jurisdiction’s portion of
the annual tax increment, as defined.
This bill would state the intent of the Legislature to enact legislation
that would provide for an election in the County of Contra Costa for
the purpose of reallocating property tax revenues for fire protection
services in that county.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. It is the intent of the Legislature to enact
line 2 legislation that would provide for an election in the County of
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Attachment B
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line 1 Contra Costa for the purpose of reallocating property tax revenues
line 2 for fire protection services in that county.
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— 2 —AB 899
Attachment B
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LEGISLATION COMMITTEE 11.
Meeting Date:03/13/2017
Subject:SB 222 (Hernandez): Inmates: Health Care Enrollment
Submitted For: LEGISLATION COMMITTEE,
Department:County Administrator
Referral No.: 2017-14
Referral Name: SB 222 (Hernandez): Inmates: Health Care Enrollment
Presenter: L. DeLaney Contact: L. DeLaney, 925-335-1097
Referral History:
SB 222 (Hernandez) was referred to the Legislation Committee by staff of the Employment and
Human Services Department (EHSD). There are no specific policies in the Board's adopted 2017
State Platform that align directly with the bill, which aims to increase access to health care
services for Medi-Cal beneficiaries immediately after incarceration. However, these kinds of
policies and practices are aligned with the County's work to facilitate the successful reentry of
returning residents from incarceration and health care access is a vital component of reentry.
Referral Update:
SB 222 (Hernandez): Inmates: Health Care Enrollment
Introduced:02/02/2017
Disposition:Pending
Location:Senate Health Committee
Summary:Requires the suspension of Medi-Cal benefits to end on the date he or she is no
longer an inmate of a public institution or is no longer otherwise eligible for
benefits under the Medi-Cal program. Requires the State Department of Health
Care Services, in consultation with specified stakeholders, to develop and
implement a simplified annual renewal process for individuals in a suspended
eligibility status.
Status:02/16/2017 To SENATE Committees on HEALTH and PUBLIC SAFETY.
Attachment A is a Fact Sheet from the bill's author. Attachment B is the bill text.
Recommendation(s)/Next Step(s):
CONSIDER recommending to the Board of Supervisors a position of "Support" on SB 222
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CONSIDER recommending to the Board of Supervisors a position of "Support" on SB 222
(Hernandez): Access to Medi-Cal for Former Inmates, as recommended by staff of EHSD and the
Office of Reentry and Justice.
Attachments
Attachment A: SB 222 Fact Sheet
Attachment B: SB 222 Bill Text
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SB 222 (Hernandez)
Access to Medi-Cal for Former Inmates
Purpose
SB 222 will increase access to critical health care services for Medi-Cal beneficiaries immediately after
incarceration, a time of increased risk for medical problems, recidivism, and even death.
Background
Many individuals entering California correctional facilities have long, untreated physical and behavioral
health needs that require access to intensive health care services. Compared to other individuals in the
community, incarcerated individuals are more likely to have chronic physical and mental conditions. For
example, they have higher rates of tuberculosis, HIV, Hepatitis B and C, and diabetes. Additionally, they
are two to four times more likely to suffer from a serious mental illness and more than 50% have a
diagnosable substance abuse disorder. It is vital that access to health care benefits provided prior to
incarceration are also available immediately upon release to allow for uninterrupted services. Proper
health care has the potential to make a significant difference in the lives of this already vulnerable
population by providing critical community services, avoiding crises and unnecessary institutionalization.
California’s largest county, Los Angeles, reports that about 35% of individuals entering jail each month
are Medi-Cal beneficiaries. While federal law does not allow Medicaid to pay for the cost of health care
for individuals while incarcerated (with the exception of certain medical inpatient services provided
outside of the correctional facility), the Centers for Medicare & Medicaid Services encourages states to
allow individuals to remain enrolled but to have their Medicaid coverage suspended until they leave the
correctional facility.
The problem
Under existing state law, Medi-Cal beneficiaries who become justice involved have their benefits
suspended for one year or until they are released, whichever comes first. Anyone incarcerated for longer
than one year has their Medi-Cal coverage terminated. Individuals who lose coverage due to longer-term
incarceration need to reapply for coverage, a time- and labor-intensive process. Although some jails, and
all state prisons, provide varying degrees of assistance to help individuals apply for Medi-Cal prior to
Attachment A
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SB 222 (Hernandez) Fact Sheet
Page 2
release, this process is not efficient for individuals who had their coverage terminated. Terminating
benefits prior to release, rather than leaving individuals in a suspended status, increases the likelihood that
they will not have adequate access to services upon release from incarceration. According to a report
released by the Kaiser Family Foundation, improved access to services and better management of health
conditions immediately after release from jail or prison has shown to reduce rates of recidivism,
particularly among individuals with mental health and substance abuse disorders. Studies of suspension of
Medicaid coverage for justice involved individuals implemented in Florida and Washington found those
enrolled in Medicaid at the time of release had 16% fewer incidents of recidivism compared to those not
enrolled at the time of release.
This bill
SB 222, sponsored by the County Welfare Directors Association and the Californians for Safety and
Justice, will provide individuals who were previously enrolled in Medi-Cal with immediate access to
Medi-Cal benefits after their release from jail or prison. Specifically, this bill requires the Department of
Health Care Services (DHCS) to extend the suspension of Medi-Cal benefits of justice involved persons
until they are released, regardless of the length of the incarceration. This extension of the suspended status
allows for prompt return of Medi-Cal benefits after individuals are released, without the need to reapply
for coverage. Additionally, to aid in the annual reassessment process of justice involved individuals with
suspended Medi-Cal benefits, DHCS is required to develop and implement a simplified renewal
procedure.
Contact
Bao Nguyen / (916) 651-4022 / bao.nguyen@sen.ca.gov.
Attachment A
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SENATE BILL No. 222
Introduced by Senator Hernandez
February 2, 2017
An act to amend Section 14011.10 of the Welfare and Institutions
Code, relating to Medi-Cal.
legislative counsel’s digest
SB 222, as introduced, Hernandez. Inmates: health care enrollment.
Existing law provides for the Medi-Cal program, which is
administered by the State Department of Health Care Services, under
which qualified low-income individuals receive health care services.
The Medi-Cal program is, in part, governed and funded by federal
Medicaid program provisions. Existing law requires Medi-Cal benefits
to an individual who is an inmate of a public institution to be suspended
effective the date he or she becomes an inmate of a public institution.
Existing law requires the suspension to end on the date that he or she
is no longer an inmate of a public institution or one year from the date
he or she becomes an inmate of a public institution, whichever is sooner.
This bill instead would require the suspension of Medi-Cal benefits
to end on the date he or she is no longer an inmate of a public institution
or is no longer otherwise eligible for benefits under the Medi-Cal
program. The bill would require the department, in consultation with
specified stakeholders, to develop and implement a simplified annual
renewal process for individuals in a suspended eligibility status, and
would require the department to seek any necessary federal approvals
or waivers to implement this provision.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
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Attachment B
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The people of the State of California do enact as follows:
line 1 SECTION 1. Section 14011.10 of the Welfare and Institutions
line 2 Code is amended to read:
line 3 14011.10. (a) Except as provided in Sections 14053.7 and
line 4 14053.8, benefits provided under this chapter to an individual who
line 5 is an inmate of a public institution shall be suspended in accordance
line 6 with Section 1396d(a)(29)(A) of Title 42 of the United States Code
line 7 as provided in subdivision (c).
line 8 (b) County welfare departments shall notify the department
line 9 within 10 days of receiving information that an individual on
line 10 Medi-Cal in the county is or will be an inmate of a public
line 11 institution.
line 12 (c) If an individual is a Medi-Cal beneficiary on the date he or
line 13 she becomes an inmate of a public institution, his or her benefits
line 14 under this chapter and under Chapter 8 (commencing with Section
line 15 14200) shall be suspended effective the date he or she becomes
line 16 an inmate of a public institution. The suspension shall end on the
line 17 date he or she is no longer an inmate of a public institution or one
line 18 year from the date he or she becomes an inmate of a public
line 19 institution, is no longer otherwise eligible for benefits under the
line 20 Medi-Cal program, whichever is sooner.
line 21 (d) The department, in consultation with stakeholders, including
line 22 the County Welfare Directors Association and advocates, shall
line 23 develop and implement a simplified annual renewal process for
line 24 individuals who are in a suspended eligibility status under this
line 25 section. The department shall seek any necessary federal approvals
line 26 or waivers to implement this subdivision.
line 27 (d)
line 28 (e) This section does not create a state-funded benefit or
line 29 program. Health care services under this chapter and Chapter 8
line 30 (commencing with Section 14200) shall not be available to inmates
line 31 of public institutions whose Medi-Cal benefits have been suspended
line 32 under this section.
line 33 (e)
line 34 (f) This section shall be implemented only if and to the extent
line 35 allowed by federal law. This section shall be implemented only to
line 36 the extent that any necessary federal approval of state plan
line 37 amendments or other federal approvals are obtained.
line 38 (f)
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— 2 —SB 222
Attachment B
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line 1 (g) If any part of this section is in conflict with or does not
line 2 comply with federal law, this entire section shall be become
line 3 inoperative.
line 4 (g)
line 5 (h) This section shall be implemented on January 1, 2010, or
line 6 the date when all necessary federal approvals are obtained,
line 7 whichever is later.
line 8 (h)
line 9 (i) By January 1, 2010, or the date when all necessary federal
line 10 approvals are obtained, whichever is later, the department, in
line 11 consultation with the Chief Probation Officers of California and
line 12 the County Welfare Directors Association, shall establish the
line 13 protocols and procedures necessary to implement this section,
line 14 including any needed changes to the protocols and procedures
line 15 previously established to implement Section 14029.5.
line 16 (i)
line 17 (j) The department shall determine whether federal financial
line 18 participation will be jeopardized by implementing this section and
line 19 shall implement this section only if and to the extent that federal
line 20 financial participation is not jeopardized.
line 21 (j)
line 22 (k) Notwithstanding Chapter 3.5 (commencing with Section
line 23 11340) of Part 1 of Division 3 of Title 2 of the Government Code,
line 24 the department shall implement this section by means of all-county
line 25 letters or similar instructions without taking regulatory action.
line 26 Thereafter, the department shall adopt regulations in accordance
line 27 with the requirements of Chapter 3.5 (commencing with Section
line 28 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
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SB 222— 3 — Attachment B
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LEGISLATION COMMITTEE 12.
Meeting Date:03/13/2017
Subject:County Comments on the State's Efforts to Reform Title 5 School Siting and
Design Practices
Submitted For: John Kopchik, Director, Conservation & Development Department
Department:Conservation & Development
Referral No.: 1
Referral Name: 1: Review legislative matters on transportation, water, and infrastructure. 12:
Monitor the implementation of the County Complete Streets Policy.
Presenter: John Cunningham, 674-7833 Contact: John Cunningham (925) 674-7833
Referral History:
The issue of school siting is a longstanding issue with the County. This item is typically discussed
at the Transportation, Water, and Infrastructure Committee and the full Board of Supervisors.
However, the issue has a legislative component and is being brought to the Legislative Committee
in March.
Referral Update:
History
The reform of State school siting policies is a longstanding item of the Board of Supervisors
(BOS) largely due to our experience with problematic sites in East Contra Costa County. In short,
the County has found that school siting practices are in conflict with community
development/growth management goals, student safety, agricultural preservation, safe routes to
school, and complete streets policies. In addition, the State is internally conflicted in that school
siting practices undermine state level policies similar to our own, including greenhouse gas
reduction, safe routes to school, public health, vehicle miles traveled, etc.
Update
The County's efforts in advocating for the reform of school siting is being bolstered by three
efforts now taking place at the state:
The California Department of Education (CDE) has initiated a long anticipated update
to Title 5 which contains school siting and design guidance. County staff has attended a
webinar held by CDE on the update and met with CDE staff at the County Office of
Education's regular school facilities coordination meeting.
1.
The State Assembly Committee on Education initiated an effort to streamline the Title
5 school approval process. In contrast to CDE's well publicized update to Title 5, very little
is known about this "streamlining" effort. As alluded to in the Board of Supervisor's
February 8, 2017 letter to the Assembly Committee on Education, it does not appear that the
2.
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streamlining effort is being coordinated with CDE's Title 5 update.
The Governor's Office of Planning and Research (OPR) and the Strategic Growth
Council have been conducting research and outreach regarding State school siting
practices. OPR staff has interviewed County staff regarding our experience with school
siting issues. In addition OPR staff attended California County Planning Directors
Association 2017 Annual Conference and gave a presentation on their efforts relative to
Title 5 and school siting. At the Conference Contra Costa County staff communicated our
concerns about the school siting practices. In addition, many other Counties voiced their
concerns to OPR staff as well.
3.
In the past, the County has been advocating for school siting reform absent any formal process at
the state to accommodate or respond to our concerns. That said, staff intends on making the most
of the opportunity represented by the three efforts listed above. The attached draft letter
communicates the County's recommendations for consideration by the State on school siting
practices.
Draft Letter
Given the general input being provided the approach we are taking at this time is to have staff,
through the Planning Integration Team for Community Health (PITCH), provide comments to the
State. At this early point in the Title 5 update process we are asking that our concepts be further
explored by the State. As the process moves ahead, staff will return to the BOS with more explicit
recommendations. Those recommendations are likely to include legislation to grant the necessary
authority to CDE to appropriately manage the school siting program.
Having the PITCH Departments approach the state on this topic is a new strategy. This letter can
also be used by staff representing each discipline, engineering, planning, and public health, to
approach their respective professional organizations and related advocacy groups for support on
this effort.
Staff from the PITCH Departments have been asked to review and comment on the letter and
attend the March 13 meeting of the Legislative Committee. As seen in the draft letter, staff is
requesting that the State examine the involvement of the Local Agency Formation Commission in
school siting decisions. That said, staff from LAFCO was also requested to review the letter and
attend the upcoming meeting of the Legislative Committee.
Recommendation(s)/Next Step(s):
DISCUSS the attached letter to the State regarding school siting practices, REVISE as
appropriate, and CONSIDER recommending to the Board of Supervisors that staff be
AUTHORIZED to send the attached letter on behalf of the County.
Fiscal Impact (if any):
None.
Attachments
DRAFT Letter: CC County to CA CDE Re Title 5
CC County: Title 5 Mark Up
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Contra
Costa
County
Department of Conservation and
Development
30 Muir Road
Martinez, CA 94553
Phone:1‐855‐323‐2626
JOHN KOPCHIK, DIRECTOR
Health Services Department
50 Douglas Drive, Suite 310
Martinez, CA 94553
Phone: (925)957‐5400
DR. WILLIAM WALKER, DIRECTOR
Public Works Department
255 Glacier Drive
Martinez, CA 94553
Phone: (925) 313‐2000
JULIA R. BUEREN, DIRECTOR
D R A F T
March 28, 2017
Tom Torlakson, Superintendent of Public Instruction
California Department of Education
1430 N St, Sacramento, CA 95814
DRAFT Subject: Title 5 School Siting and Design Standards Review
Dear Superintendent Torlakson:
This letter responds to the California Department of Education’s (Department) School Facilities & Transportation
Services Division request for input on its review of Title 5 which was initiated in late 2016. Contra Costa County
(County) welcomes this review as we have experienced negative outcomes resulting from gaps in state school
siting practices relative to contemporary land use and transportation planning statutes and principles. Specifically,
the County urges the Department to conform school siting practices with State and local policies to ensure that the
siting of new schools does not violate goals related to student safety, growth management, greenhouse gas
reduction, agricultural preservation, and general public health.
The County recognizes the significant link between the built environment and public health. This recognition led
the Board of Supervisors to create a staff level committee in 2007, the Planning Integration Team for Community
Health (PITCH). PITCH is comprised of staff from three Departments, Conservation and Development, Health
Services, and Public Works. Respectively, these Departments are responsible for land use/transportation planning,
public health, and engineering. PITCH advises the Board of Supervisors on policies and strategy related to land
development, grant applications, policy changes, infrastructure investment, etc.
Given the significant and enduring effect that schools have on the character and safety of the community
surrounding school sites, the Board of Supervisors directed PITCH to develop this response to the Title 5 revision
effort. We are providing comments as follows:
1. Immediately below we provide background information, the policy context in which the PITCH Departments
developed the comments.
2. Further below, in the body of this letter, we include broad concepts for your consideration in revising the
school siting and development process.
3. Attached we have provided specific revisions directly in the existing Title 5 text.
Background
There are substantial policies that guide land development and transportation infrastructure investment at both the
local and state levels. School sites, which have a substantial impact on the safety and character of the surrounding
community, and serve a vulnerable population, are not subject to the policies below.
Stated another way, the very projects that should most adhere to these policies, are immune from them. In fact,
current school siting practices often directly violate and actively undermine the policies below.
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Local
Urban Limit Line: Contra Costa County voters approved an Urban Limit Line (ULL) in 1990. In 2006
voters passed a new Measure which affirmed and extended the ULL protection to 2026. The ULL limits
urban development to certain areas of the County and helps to preserve farmland and open space.
Locating schools outside the ULL directly undermines the will of the voters by driving development
assumptions and patterns. Specifically, when a school is sited in a rural or agricultural area, infrastructure
for roads, utilities, homes, and businesses develop around it. This defeats the purpose of an urban limit
line.
Complete Streets: Contra Costa County’s Complete Streets policy was adopted by General Plan revision
in 2008 and pre-dates the State Complete Streets Act. The policy was reaffirmed and expanded in 2016
with the Board of Supervisors Adoption of an updated Complete Streets Policy. Complete Streets
recognizes that streets serve many users and should accommodate users of all ages, abilities, and modes
including cyclists, pedestrians, transit users and the mobility impaired.
When schools are located as infrastructure islands in rural or agricultural areas it is not financially
possible to provide adequate transportation infrastructure throughout the school attendance boundaries to
accommodate student cyclists and pedestrians.
Climate Action Plan: In December 2015, Contra Costa County adopted a Climate Action Plan that
outlines how we will reduce greenhouse gas emissions in our County. The Climate Action Plan has goals
and requirements regarding green buildings; the State should ensure that the Title 5 update recognizes
local sustainability and green building policies, as well as comply with State policies. The Climate
Action Plan sets goals for increasing active transportation in our County with specific targets around
number of weekday bike trips, implementing the Safe Routes to School program, and reducing the
number of vehicle miles traveled.
State
Complete Streets Act of 2008: Similar to Contra Costa County’s local policy, the state complete streets
act directs that transportation facilities be planned, designed, operated, and maintained to provide safe
mobility for all users, including bicyclists, pedestrians, transit vehicles, etc. appropriate to the function
and context of the facility.
Again, when the State facilitates the development of schools in disconnected areas it compromises the
ability for local jurisdictions to adhere to complete streets policies.
Greenhouse Gas (GHG) Reduction Legislation (AB32 – 2006, SB375 – 2008, SB743 – 2013): This
State legislation, through various mechanisms, dictate how GHG’s are to be reduced. Given that land
development is most often a local activity, the ultimate dictates of these initiatives fall to the locals to
implement through changes to land development and infrastructure investment practices.
While local jurisdictions are implementing these state policies at the local level, the State school siting
program is actively undermining the very same legislation by facilitating the development of school sites
in remote areas.
Recognizing this issue, in the California Air Resources Board’s original draft implementation guidance
for AB 32, the reform of school siting practices was included. In the final version, the guidance was
removed without explanation.
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Health In All Policies: The State has adopted a Health in All Policies (HIAP) approach to improving the
health of all people by incorporating health considerations into collaborative decision-making across
sectors and policy areas. The HIAP effort includes 22 State agencies and departments that falls under the
Health In All Policies Task Force which is in turn overseen by the Strategic Growth Council.
Similar to GHG reduction efforts there is a serious internal conflict at the State. While efforts are made
through the HIAP effort to improve health through policy changes, the State school siting program is
actively undermining this effort by facilitating the development of school sites in remote areas. This
practice limits the ability for students to use active transportation to make the school/home/school trip.
Concurrently, State school siting practices compromise safety for those that do walk/bike to school
because it is not financially possible to construct adequate non-motorized transportation infrastructure
connecting remote schools to the communities they serve.
Again, similar to the GHG reduction effort this issue was acknowledged by the State early during HIAP
implementation. The original, draft strategies for implementing HIAP included addressing school siting
practices. With no explanation, subsequent revisions to the HIAP removed school siting reform activities.
General Comments
Funding: In Contra Costa, and we assume other rural areas, one significant reason schools are developed
in rural or agricultural areas is because of cost, the land is cheaper. Unless this fundamental issue is
addressed, it is unlikely that any policy changes will be effective or meaningful. The State should
consider financial incentives and disincentives in reforming the school siting program.
Ineffective Existing Guidance: There is substantial existing guidance and statutes related to school
siting. Site selection, safety considerations, access, consultation with local land use agencies are all in this
guidance. Unless a compulsory component is included in any policy changes, the policies will continue to
be ignored.
Urban Limit Line (ULL)/Urban Growth Boundary (UGB): At a minimum, the state should respect the
will of voters and should prohibit school districts from acquiring and developing school sites outside of
adopted ULLs/UGBs. Absent an outright prohibition and building on the “Funding” comment above, the
state could adopt incentives and/or disincentives that would help protect the ULL/UGB. This concept
would reflect the subsidiarity, a concept which some favor.
Expand Authority of Local Agency Formation Commissions (LAFCO): The two main purposes of
LAFCOs per the Cortese-Knox-Hertzberg Act are 1) discourage sprawl, and 2) encourage planned,
orderly, coordinated, logical development. This authority directly addresses the problems experienced by
Contra Costa County.
Complete Streets Consistency: The following approach would help to bring school siting practices into
consistency with State and local policies relative to complete streets, active transportation, safe routes to
school, greenhouse gas reduction, and health in all policies.
1) The school board may only approve the purchase of a school site if the board also:
Makes findings with substantial evidence in the record that the proposed site complies
with, or will ultimately comply with, all applicable guidance in Title 5, Guide to School
Site Analysis and Development, and School Site Selection and Approval Guide. These
findings should provide enough relevant information or data and reasonable inferences
to support the conclusion that the proposed site complies with the aforementioned
policy documents,(as they may be amended or superseded from time to time), and
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Approves a preliminary multimodal (bus, automobile, pedestrian, bicycle, active)
circulation and safety plan (spanning both immediate site access and attendance
boundaries) approved by a licensed traffic engineer.
Must establish that it is reasonable to project that all necessary, multi‐modal
transportation infrastructure will be in place concurrent with the opening of the school
(secured bond, projects on local capital improvement plan for instance)
2) The school board may only approve a final school design if the board also:
Makes findings with substantial evidence in the record that the proposed site will comply
with all applicable guidance in Title 5, Guide to School Site Analysis and Development,
and School Site Selection and Approval Guide upon opening of the school. These findings
should provide enough relevant information or data and reasonable inferences to
support the conclusion that the proposed site complies with the aforementioned policy
documents, as they may be amended or superseded from time to time,
Approves a final multimodal (bus, automobile, pedestrian, bicycle, active) circulation and
safety plan (spanning both immediate site access and attendance boundaries) approved
by a licensed traffic engineer.
Establish that all necessary, multi‐modal transportation infrastructure will be in place
concurrent with the opening of the school.
These comments do not necessarily reflect adopted policy positions of the Board of Supervisors at this time.
These concepts are being provided for further examination by the state. We understand the Title 5 process will
continue to include review opportunities.
We look forward to your response and working with the State in addressing this serious issue.
Sincerely,
John Kopchik, Director
Department of Conservation and
Development
Dr. William Walker, Director
Health Services Department
Julia R. Bueren, Director
Public Works Department
C:
Members, Board of Supervisors
Contra Costa County Legislative Delegation
Kathryn Lyddan, CA Department of Conservation
Siddharth Nag, CA Gov Office of Planning and Research
Kiana Buss, California State Association of Counties
Nick Schweizer, CA Department of Education
Juan Mireles, CA Department of Education
Jahmal Miller, CA Department of Public Health
Ken Alex, CA Strategic Growth Council
Bob Glover, Building Industry Association of the Bay Area
Members, California County Planning Directors Association
c:\egnyte\shared\transportation\activeedits\dcd to ca-cde retitle5.docx
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Contra Costa County Comments on Title 5 Revision Process. Revisions are in redline/strikeout format. Annotations on
the revisions are in [brackets in typewriter font].
Title 5. Education
Division 1. California Department of Education
Chapter 13. School Facilities and Equipment
Subchapter 1. School Housing
Article 1. General Standards
§ 14001. Minimum Standards.
Educational facilities planned by school districts shall be:
(a) Evolved from a statement of educational program requirements which reflects the school district's educational goals
and objectives.
(b) Master-planned to provide for maximum site enrollment..
(c) Located on a site which meets California Department of Education standards as specified in Section 14010.
(d) Designed for the environmental comfort and work efficiency of the occupants.
(e) Designed to require a practical minimum of maintenance.
(f) Designed to meet federal, state, and local statutory requirements for structure, fire, and public safety.
(g) Designed and engineered with flexibility to accommodate future needs.
(h) Located and designed to support greenhouse gas and vehicle miles traveled reduction goals as set forth in AB 32,
SB 375, and SB743 with access infrastructure consistent with the AB 1358 (2008- Complete Streets Act).
(i) Located on a site which will have transportation infrastructure supporting non-motorized travel by K-12 population
throughout the attendance boundary of the school. [reflects authority established with the “safety”
references in EDC § 17251 (c) and (f)].
Note: Authority cited: Sections 17251(b) and 33031, Education Code. Reference: Sections 17017.5 and 17251(b),
Education Code.
HISTORY
1. Amendment filed 9-23-77; effective thirtieth day thereafter (Register 77, No. 39).
2. Amendment of text and adoption of Note filed 11-12-93; operative 12-13-93 (Register 93, No. 46).
3. Amendment of Note filed 10-30-2000; operative 10-30-2000 pursuant to Government Code section
11343.4(d) (Register 2000, No. 44).
5 CCR § 14001, 5 CA ADC § 14001
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Title 5. Education
Division 1. California Department of Education
Chapter 13. School Facilities and Equipment
Subchapter 1. School Housing
Article 2. School Sites
§ 14010. Standards for School Site Selection.
All districts shall select a school site that provides safety and that supports learning. The following standards shall
apply:
(a) The net usable acreage and enrollment for a new school site shall be consistent with the numbers of acres and
enrollment established in the 2000 Edition, “School Site Analysis and Development” published by the California
Department of Education and incorporated into this section by reference, in toto, unless sufficient land is not available
or circumstances exist due to any of the following:
(1) Urban or suburban development results in insufficient available land even after considering the option of eminent
domain.
(2) Sufficient acreage is available but it would not be economically feasible to mitigate geological or environmental
hazards or other site complications which pose a threat to the health and/or safety of students and staff.
(3) Sufficient acreage is available but not within the attendance area of the unhoused students or there is an extreme
density of population within a given attendance area requiring a school to serve more students on a single site.
Choosing an alternate site would result in extensive long-term bussing of students that would cause extreme financial
hardship to the district to transport students to the proposed school site.
(4) Geographic barriers, traffic congestion, inadequate transportation infrastructure for K-12 cyclists and/or
pedestrians, high vehicle speeds/driver behavior[JC1],or other constraints would cause extreme school access issues for
the school district and the community at large. financial hardship for the district to transport students to the proposed
school site[JC2]. [a: Regarding the struck out text, excepting special needs students, school districts
are not obligated to provide transportation. Regardless, the listed issues DO create a hardship for
parents, students, and local jurisdictions who are left to provide transportation infrastructure b:
IThis is not a random comment grousing about speeding cars. Surveys/study/data
consistently show that the largest reason children don't walk to school is "driver
behavior or speeding". This should not be ignored. The assumption should be that
kids WILL walk to school, even if it is unsafe or there are no facilities. In our
rural areas kids are forced to walk to school because there are no parents to
drive. Please see attached, CCCounty-CTCDC_school zones-speedingSB632.pdf.]
(b) If a school site is less than the recommended acreage required in subsection (a) of this section, the district shall
demonstrate how the students will be provided an adequate educational program including physical education as
described in the district's adopted course of study.
(c) The property line of the site even if it is a joint use agreement as described in subsection (o) of this section shall be
at least the following distance from the edge of respective power line easements:
(1) 100 feet for 50-133 kV line.
(2) 150 feet for 220-230 kV line.
(3) 350 feet for 500-550 kV line.
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(d) If the proposed site is within 1,500 feet of a railroad track easement, a safety study shall be done by a competent
professional trained in assessing cargo manifests, frequency, speed, and schedule of railroad traffic, grade, curves, type
and condition of track need for sound or safety barriers, need for pedestrian and vehicle safeguards at railroad
crossings, presence of high pressure gas lines near the tracks that could rupture in the event of a derailment,
preparation of an evacuation plan. In addition to the analysis, possible and reasonable mitigation measures must be
identified.
(e) The site shall not be adjacent to a road or freeway that any site-related traffic and sound level studies have
determined will have safety problems or sound levels which adversely affect the educational program.
(f) Pursuant to Education Code sections 17212 and 17212.5, the site shall not contain an active earthquake fault or
fault trace.
(g) Pursuant to Education Code sections 17212 and 17212.5, the site is not within an area of flood or dam flood
inundation unless the cost of mitigating the flood or inundation impact is reasonable.
(h) The site shall not be located near an above-ground water or fuel storage tank or within 1500 feet of the easement
of an above ground or underground pipeline that can pose a safety hazard as determined by a risk analysis study,
conducted by a competent professional, which may include certification from a local public utility commission.
(i) The site is not subject to moderate to high liquefaction or landslides.
(j) The shape of the site shall have a proportionate length to width ratio to accommodate the building layout, parking
and playfields that can be safely supervised and does not exceed the allowed passing time to classes for the district.
(k) The site shall be easily accessible from arterial roads and shall allow minimum peripheral visibility from the planned
driveways in accordance with the Sight Distance Standards established in the “Highway Design Manual,” Table 201.1,
published by the Department of Transportation, July 1, 1990 edition, and incorporated into this section by reference, in
toto.
(l) The site shall not be on major arterial streets with a heavy traffic pattern as determined by site-related traffic
studies including those that require student crossings unless mitigation of traffic hazards and a plan for the safe arrival
and departure of students appropriate to the grade level has been provided by city, county or other public agency in
accordance with the “School Area Pedestrian Safety” manual published by the California Department of Transportation,
1987 edition, incorporated into this section by reference, in toto. [Considering the wealth of new policies that the state
has developed over the past 10 years this language needs to be rewritten. Current practices are in direct conflict with
the complete streets act, health in all policies, AB32/SB375 concepts, Caltrans Smart Mobility Framework, and the
many revisions to the Highway Design Manual. Considering how the underlying transportation policy framework has
shifted the current state and LEA policies and practices should be considered archaic.]
(m) Existing or proposed zoning of the surrounding properties shall be compatible with schools in that it would not pose
a potential health or safety risk to students or staff in accordance withEducation Code Section 17213 and Government
Code Section 65402 and available studies of traffic surrounding the site.
(n) The site shall be located within the proposed attendance area to encourage student walking and avoid extensive
bussing unless bussing is used to promote ethnic diversity.
(o) The site shall be selected to promote joint use of parks, libraries, museums and other public services, the acreage
of which may be included as part of the recommended acreage as stated in subsection (a) of this section.
(p) The site shall be conveniently located for public services including but not limited to fire protection, police
protection, public transit and trash disposal whenever feasible.
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(q) The district shall consider environmental factors of light, wind, noise, aesthetics, and air pollution in its site selection
process.
(r) Easements on or adjacent to the site shall not restrict access or building placement.
(s) The cost and complications of the following shall be considered in the site selection process and should not result in
undue delays or unreasonable costs consistent with State Allocation Board standards:
(1) Distance of utilities to the site, availability and affordability of bringing utilities to the site.
(2) Site preparation including grading, drainage, demolition, hazardous cleanup, including cleanup of indigenous
material such as serpentine rock, and off-site development of streets, curbs, gutters and lights.
(3) Eminent domain, relocation costs, severance damage, title clearance and legal fees.
(4) Long-term high landscaping or maintenance costs.
(5) Existence of any wildlife habitat that is on a protected or endangered species list maintained by any state or federal
agency, existence of any wetlands, natural waterways, or areas that may support migratory species, or evidence of any
environmentally sensitive vegetation.
(t) If the proposed site is on or within 2,000 feet of a significant disposal of hazardous waste, the school district shall
contact the Department of Toxic Substances Control for a determination of whether the property should be considered a
Hazardous Waste Property or Border Zone Property.
(u) At the request of the governing board of a school district, the State Superintendent of Public Instruction may grant
exemptions to any of the standards in this section if the district can demonstrate that mitigation of specific
circumstances overrides a standard without compromising a safe and supportive school environment.
Note: Authority cited: Sections 17251(b) and 33031, Education Code. Reference: Sections
17212, 17212.5, 17213, 17251(b) and 17251(f), Education Code.
HISTORY
1. Renumbering of former section 14010 to section 14011 and new section filed 11-12-93; operative 12-13-93
(Register 93, No. 46). For prior history, see Register 77, No. 39.
2. Amendment of section and Note filed 10-30-2000; operative 10-30-2000 pursuant to Government Code section
11343.4(d) (Register 2000, No. 44).
5 CCR § 14010, 5 CA ADC § 14010
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Title 5. Education
Division 1. California Department of Education
Chapter 13. School Facilities and Equipment
Subchapter 1. School Housing
Article 2. School Sites
§ 14011. Procedures for Site Acquisition - State-Funded School Districts.
A state-funded school district is defined as a school district having a project funded under Chapter 12.5 (commencing
with Section 17070.10) of the Education Code. A state-funded school district, before acquiring title to real property for
school use, shall obtain written approval from the California Department of Education using the following procedures:
(a) Request a preliminary conference with a consultant from the School Facilities Planning Division and in consultation
review and evaluate sites under final consideration.
(b) Contact the School Facilities Planning Division of the California Department of Education to obtain a “School
Facilities Planning Division Field Site Review,” form SFPD 4.0, published by the California Department of Education, as
last amended in December 1999 and incorporated into this section by reference, in toto, which lists the site options in
order of merit according to the site selection standards delineated in Section 14010.
(c) Prepare a statement of policies as delineated on the “School Facilities Planning Division School Site Report,” form
SFPD 4.02, as last amended in December 1999 and incorporated into this section by reference, in toto, covering the
range and organization of grades to be served, the transportation of pupils, and the ultimate maximum pupil enrollment
to be housed on the site. Prepare a statement showing how the site is appropriate in size as justified by the school
district's Facilities Master Plan, including acreage increases above the California Department of Education
recommendation made to compensate for off-site mitigation. A school district may choose, in place of a master plan, a
developer fee justification document or a five-year plan if it addresses enrollment projections, needed schools, and site
sizes.
(d) Prepare maps showing present and proposed school sites, significant roads or highways, unsanitary or hazardous
installations, such as airports or industries and the indicated boundary of the pupil attendance area to be served as
delineated on form SFPD 4.02.
(e) Meet with appropriate local government, recreation, and park authorities to consider possible joint use of the
grounds and buildings and to coordinate the design to benefit the intended users as required by Education Code Section
35275.
(f) Give written notice to the local planning agency having jurisdiction to review the proposed school site or addition to
an existing school site and request a written report from the local planning agency of the investigations and
recommendations for each proposed site with respect to conformity with the adopted general plan as required by Public
Resources Code Section 21151.2 andGovernment Code Section 65402.
(g) Comply with Education Code Sections 17212 and 17212.5, with particular emphasis upon an engineering
investigation made of the site to preclude locating the school on terrain that may be potentially hazardous:
(1) The geological and soils engineering study shall address all of the following:
(A) Nature of the site including a discussion of liquefaction, subsidence or expansive soils, slope, stability, dam or flood
inundation and street flooding.
(B) Whether the site is located within a special study zone as defined in Education Code Section 17212.
(C) Potential for earthquake or other geological hazard damage.
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(D) Whether the site is situated on or near a pressure ridge, geological fault or fault trace that may rupture during the
life of the school building and the student risk factor.
(E) Economic feasibility of the construction effort to make the school building safe for occupancy.
(2) Other studies shall include the following:
(A) Population trends
(B) Transportation
(C) Water supply
(D) Waste disposal facilities
(E) Utilities
(F) Traffic hazards
(G) Surface drainage conditions
(H) Other factors affecting initial and operating costs.
(h) Prepare an environmental impact report, or negative declaration in compliance with the Environmental Quality Act,
Public Resources Code, Division 13, (commencing with Section 21000 with particular attention to Section 21151.8). As
required by Education Code Section 17213, the written findings of the environmental impact report or negative
declaration must include a statement verifying that the site to be acquired for school purposes is not currently or
formerly a hazardous, acutely hazardous substance release, or solid waste disposal site or, if so, that the wastes have
been removed. Also, the written findings must state that the site does not contain pipelines which carry hazardous
wastes or substances other than a natural gas supply line to that school or neighborhood. If hazardous air emissions
are identified, the written findings must state that the health risks do not and will not constitute an actual or potential
danger of public health of students or staff. If corrective measures of chronic or accidental hazardous air emissions are
required under an existing order by another jurisdiction, the governing board shall make a finding that the emissions
have been mitigated prior to occupancy of the school.
(i) Consult with, or demonstrate that the lead agency, if other than the district preparing the environmental impact
report or negative declaration, has consulted with the appropriate city/county agency and with any air pollution control
district or air quality management district having jurisdiction, concerning any facilities having hazardous or acutely
hazardous air emissions within one-fourth of a mile of the proposed school site as required by Education Code Section
17213.
(j) For purposes of Environmental Site Assessment, school districts shall comply with Education Code sections
17210.1, 17213.1, and 17213.2.
(k) Follow the recommendations of the State Superintendent of Public Instruction report based upon the Department of
Transportation, Division of Aeronautics, findings, if the proposed site is within two miles of the center line of an airport
runway or proposed runway as required by Education Code Section 17215.
(l ) Follow the standards for school site selection in Section 14010 of this article.
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(m) Conduct a public hearing by the governing board of the school district as required in Education Code Section
17211 to evaluate the property using the standards described in Section 14010 of this article. The school district's
facility advisory committee may provide an evaluation of the proposed site to the governing board.
(n) Submit the request for exemption from a standard in Section 14010 of this article, with a description of the
mitigation that overrides the standard, to the California Department of Education.
(o) Certify there are no available alternative school district-owned sites for the project deemed usable for school
purposes by the California Department of Education or certify that the school district intends to sell an available
alternative school district-owned site and use the proceeds from the sale for the purchase of the new school site.
Note: Authority cited: Sections 17251(b) and 33031, Education Code. Reference: Sections
17070.50, 17072.12, 17210.1, 17211, 17212, 17213 and 17251(b), Education Code.
HISTORY
1. Renumbering and amendment of section 14010 to section 14011 and adoption of Note filed 11-12-93; operative 12-
13-93 (Register 93, No. 46).
2. Amendment of section heading, section and Note filed 10-30-2000; operative 10-30-2000 pursuant to Government
Code section 11343.4(d) (Register 2000, No. 44).
5 CCR § 14011, 5 CA ADC § 14011
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Title 5. Education
Division 1. California Department of Education
Chapter 13. School Facilities and Equipment
Subchapter 1. School Housing
Article 2. School Sites
§ 14012. Procedures for Site Acquisition - Locally-Funded School Districts.
A locally-funded school district is defined as a school district with a project not applying for funding from any state
program administered by the State Allocation Board as defined in Chapter 12.0 (commencing with Section 17000) or
Chapter 12.5 (commencing with Section 17070.10) of the Education Code. A locally-funded school district, before
acquiring title to real property for school use, shall:
(a) Evaluate the property using the standards established in Section 14010 and items (e) through (l ) in Section 14011;
(b) Comply with terms of the complaint investigation described in Section 14012(d); and
(c) May request advice from the California Department of Education as described in Education Code Section 17211(a).
(d) Prepare documentation of and retain for purposes of a complaint investigation the exemption from the standard in
Section 14010 of this article with a description of the mitigation that overrides the standard. Locally-funded school
districts may request from the California Department of Education a review of the adequacy of the mitigation measure.
(e) Comply with Education Code section 17268 regarding potential safety or health risks to students and staff.
Note: Authority cited: Sections 17251(b) and 33031, Education Code. Reference: Sections
17251(a) and (b) and 17268, Education Code.
HISTORY
1. New section filed 11-12-93; operative 12-13-93 (Register 93, No. 46).
2. Repealer of former section 14012 and renumbering of former section 14013 to new section 14012, including
amendment of section heading, section and Note, filed 10-30-2000; operative 10-30-2000 pursuant to Government
Code section 11343.4(d) (Register 2000, No. 44).
5 CCR § 14012, 5 CA ADC § 14012
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Title 5. Education
Division 1. California Department of Education
Chapter 13. School Facilities and Equipment
Subchapter 1. School Housing
Article 2. School Sites
§ 14013. Procedures for Site Acquisition - Locally-Funded Districts. [Renumbered]
Note: Authority cited: Section 39001(b), Education Code. Reference: Sections 17700 et. seq., 39101(a), and
39101(b), Education Code.
HISTORY
1. New section filed 11-12-93; operative 12-13-93 (Register 93, No. 46).
2. Renumbering of former section 14013 to section 14012 filed 10-30-2000; operative 10-30-2000 pursuant
to Government Code section 11343.4(d) (Register 2000, No. 44).
5 CCR § 14013, 5 CA ADC § 14013
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Title 5. Education
Division 1. California Department of Education
Chapter 13. School Facilities and Equipment
Subchapter 1. School Housing
Article 4. Standards, Planning and Approval of School Facilities
§ 14030. Standards for Development of Plans for the Design and Construction of School Facilities.
The following standards for new schools are for the use of all school districts for the purposes of educational
appropriateness and promotion of school safety:
(a) Educational Specifications.
Prior to submitting preliminary plans for the design and construction of school facilities, and as a condition of final plan
approval by CDE, school board-approved educational specifications for school design shall be prepared and submitted to
the California Department of Education based on the school district's goals, objectives, policies and community input
that determine the educational program and define the following:
(1) Enrollment of the school and the grade level configuration.
(2) Emphasis in curriculum content or teaching methodology that influences school design.
(3) Type, number, size, function, special characteristics of each space, and spatial relationships of the instructional area
that are consistent with the educational program.
(4) Community functions that may affect the school design. [this is ambiguous, substantial detail and examples should
be added for this to be useful]
(b) Site Layout.
Parent drop off, bus loading areas, and parking, and non-motorized access shall be separated or otherwise designed to
allow students to enter and exit the school grounds safely unless these features are unavailable due to limited acreage
in urban areas or restrictive locations, specifically:
(1) Buses do not pass through parking areas to enter or exit school site unless a barrier is provided that prevents
vehicles from backing directly into the bus loading area.
(2) Parent drop off area is adjacent to school entrance and separate from bus area and staff parking.
(3) Vehicle traffic pattern does not interfere with foot traffic patterns. Foot traffic does not have to pass through
entrance driveways to enter school. Crosswalks are clearly marked to define desired foot path to school entrance.
(4) Parking stalls are not located so vehicles must back into bus or loading areas used by parents. Island fencing or
curbs are used to separate parking areas from loading/unloading areas.
(5) To provide equal access to insure the purposes of the least restrictive environment, bus drop off for handicapped
students is in the same location as for regular education students.
(6) To ensure safe, efficient access an active transportation plan for the entire attendance boundary shall be developed.
(7) Bicyclist and pedestrian access to school sites shall be encouraged through prioritized access and bicycle parking.
(c) Playground and Field Areas.
Adequate physical education teaching stations shall be available to accommodate course requirements for the planned
enrollment, specifically:
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(1) A variety of physical education teaching stations are available to provide a comprehensive physical education
program in accordance with the district's adopted course of study (including hardcourt, field area and indoor spaces).
(2) The physical education teaching stations are adequate for the planned student enrollment to complete the minimum
instruction and course work defined in Education Code Sections 51210(g), 51220(d) and 51225.3(a)(1)(F).
(3) Supervision of playfields is not obstructed by buildings or objects that impair observation.
(4) Joint use for educational purposes with other public agencies is explored. Joint use layout with parks is not
duplicative and fulfills both agencies' needs.
(d) Delivery and Utility Areas.
Delivery and service areas shall be located to provide vehicular access that does not jeopardize the safety of students
and staff:
(1) Delivery/utility vehicles have direct access from the street to the delivery area without crossing over playground or
field areas or interfering with bus or parent loading unless a fence or other barrier protects students from large vehicle
traffic on playgrounds.
(2) Trash pickup is fenced or otherwise isolated and away from foot traffic areas.
(e) Future Expansion.
Site layouts shall have capability for expansion without substantial alterations to existing structures or playgrounds:
(1) Site layout designates area(s) for future permanent or temporary additions that are compatible with the existing
site plans for playground layout and supervision.
(2) Utilities to the expansion area are included in the plans and have the capacity to accommodate anticipated growth.
(3) Exits, corridors, stairs, and elevators are located to accommodate capacity of additions, particularly in such
buildings added as the multi-purpose/cafeteria, administration, gymnasium/or auditorium.
(f) Placement of Buildings.
Building placement shall consider compatibility of the various functions on campus and provide optimum patterns of
foot traffic flow around and within buildings. Site layout of buildings, parking, driveways, and physical education areas
shall be adequate to meet the instructional, security and service needs of the educational program:
(1) Building placement is compatible with other functions on campus; e.g., band room is not next to library.
(2) Physical relationship of classrooms, auxiliary, and support areas allows unobstructed movement of staff and
students around the campus.
(3) Building placement has favorable orientation to wind, sun, rain, and natural light.
(4) Restrooms are conveniently located, require minimum supervision, and, to the extent possible, are easily accessible
from playground and classrooms.
(5) Parking spaces are sufficient for staff, visitors, and students (where applicable).
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(6) The campus is secured by fencing and electronic devices such as code entries, electronic monitoring or motion
sensors when needed.
(g) Classrooms.
Classrooms at new school sites shall have adequate space to perform the curriculum functions for the planned
enrollment as described in the school district's facility master plan, specifically:
(1) Classroom size standards:
(A) General classrooms, grades one through twelve are not less than 960 square feet. Classrooms proposed of less than
960 square feet require written justification to be submitted to and approved by the State Superintendent of Public
Instruction. Adjacent instructional space shall be included in the calculation of square feet for purposes of approving
classroom design.
(B) Proposed classrooms of less than 960 square feet have written justification consistent with the educational program
and curriculum indicating that the district's education program can be delivered in the proposed size classrooms.
(2) Total classroom space meets or exceeds the capacity planned for the school using the district's classroom loading
standards in accordance with State Allocation Board policy.
(3) Consideration is given to some classrooms which are easily alterable in size and shape at a reasonable cost.
(4) Conduit/cabling and outlets are available for technology in each classroom to provide network and stand alone
equipment related to the planned and future potential educational functions.
(h) Specialized Classrooms and Areas.
Specialized classrooms shall be designed to reflect the function planned for that portion of the educational program. If
any of the following classrooms are needed, these standards apply:
(1) Small-Group Areas.
(A) Small-group instruction areas are not included in the computation of classroom size unless the area is an integral
part of the classroom and can be visibly supervised by a teacher from the classroom.
(B) Small-group instruction areas are designed to allow for collaborative learning opportunities where appropriate to
support the regular education program and are located in the vicinity of classrooms.
(2) Kindergarten Classrooms.
(A) Kindergarten classroom size for permanent structures is not less than 1350 square feet, including restrooms,
storage, teacher preparation, wet and dry areas.
(B) Kindergarten classrooms are designed to allow supervision of play yards (unless prevented by site shape or size)
and all areas of the classroom.
(C) Play yard design provides a variety of activities for development of large motor skills.
(D) Classrooms are located close to parent drop-off and bus loading areas.
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(E) Storage, casework, and learning stations are functionally designed for use in free play and structured activities;
e.g., shelves are deep and open for frequent use of manipulative materials.
(F) Windows, marking boards, sinks, drinking fountains, and furniture are appropriate heights for kindergarten-age
students.
(G) Restrooms are self-contained within the classroom or within the kindergarten complex.
(3) Special Education Classrooms and Areas.
(A) A new school designates at least 240 square feet for the resource specialist program and provides additional space
in accordance with the allocations in Education Code Section 17747(a)as larger enrollments are being planned.
(B) A new school designates at least 200 square feet for the speech and language program which is close to classrooms
when an individualized instruction program is necessary.
(C) A new school designates office area for the psychologist/counseling program which provides for confidentiality and
may be shared with other support service programs.
(D) Special day classrooms are at least the same size as regular education classrooms at that site and are properly
equipped for the students who will occupy the space, for their age and type of disabling condition.
(E) The square footage allowance in Education Code Section 17747(a) for special day class programs is used for the
design of classroom space and other space on the campus to support the special education program. The support space
includes but is not limited to speech specialist area, psychologist, counseling offices and conference area.
(F) Special day classrooms are distributed throughout the campus with age appropriate regular education classrooms.
(G) A cluster of two special day classrooms may be considered if support or auxiliary services (e.g., bathrooming,
feeding, physical or occupational therapy) are needed to serve the students throughout the school day.
(H) A conference area is available to conduct annual individualized education program meetings for each special
education student.
(I) Medical therapy units, if planned for the site, are close to visitor parking areas and accessible after school hours.
(i) Laboratories shall be designed in accordance with the planned curriculum.
(1) Science laboratory:
(A) Size is at least 1300 square feet including storage and teacher preparation area.
(B) Science laboratory design is consistent with the requirements for proper hazardous materials management specified
in both the “Science Facilities Design for California Public Schools,” published by the California Department of Education,
1993, and the “Science Safety Handbook for California Public Schools,” published by the California State Department of
Education, 1999.
(C) Accommodations are made for necessary safety equipment and storage of supplies; e.g., fire extinguisher, first aid
kit, master disconnect valve for gas.
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(D) Secured storage areas are provided for volatile, flammable, and corrosive chemicals and cleaning agents.
(E) Properly designated areas are provided with appropriate ventilation for hazardous materials that emit noxious
fumes, including a high volume purge system in the event of accidental release of toxic substances which may become
airborne.
(F) Exhaust fume hoods, eye washes, deluge showers are provided.
(G) Floor and ceiling ventilation is provided in areas where chemicals are stored.
(H) Room is provided for movement of students around fixed-learning stations.
(I) There is the capability for technology which complements the curriculum.
(J) Classrooms are flexibly designed to insure full student access to laboratory stations and lecture areas.
(2) Consumer Home Economics laboratory:
(A) There is room for movement of students around fixed learning stations.
(B) Cooking equipment reflects current home food preparation practices and/or commercial food preparation
simulation.
(C) There is the capability for technology which complements portions of the curriculum, such as fashion design,
consumer economics, and nutritional analysis of foods.
(D) There is space for industrial or home sewing equipment consistent with the planned curriculum.
(E) There is storage for student projects and supplies.
(F) Space for work tables is provided for such activities as cutting fabric or completing interior design projects.
(G) Lecture area is provided.
(H) At least 1300 square feet is allocated for each laboratory.
(I) If part of the planned program, space for a child care area or for a laboratory to teach child growth and development
is provided.
(3) Industrial and Technology/Education Laboratory:
(A) Room is provided for movement of students around fixed learning stations.
(B) Flexible stations with sufficient outlets and power source for industrial type equipment is provided.
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(C) Space is provided for various simulations of job-related experiences and laboratory work stations.
(D) There is capability to utilize technology which complements the curriculum, such as computer-aided graphics,
electronics and specialized tools.
(E) There is lecture area within each laboratory or near the laboratory area where appropriate.
(F) There are accommodations for necessary health and safety equipment, such as fire extinguisher and first aid kit.
(G) Secured storage areas for volatile, flammable and corrosive chemicals and cleaning agents are provided where
appropriate.
(H) There are properly designated areas with appropriate ventilation for the use of hazardous material that emit
noxious fumes or excessive dust particles.
(I) Proper storage and removal access for hazardous waste materials is provided in each laboratory using such
materials.
(4) Computer Instructional Support Area:
(A) If a standard classroom is being designated as a computer laboratory, size is at least 960 square feet.
(B) Room is provided for movement of students around learning stations.
(C) Sufficient outlets, power sources, and network links for the amount of equipment are provided.
(D) Proper ventilation is provided.
(E) Room provides for security of equipment.
(F) Lighting minimizes screen glare and eye strain.
(j) Gymnasium, Shower/Locker shall be designed to accommodate multiple use activities in accordance with the
planned enrollment:
(1) The gymnasium is secured from other parts of the campus for evening and weekend events or for public use
purposes.
(2) The shower/locker area is of sufficient size to allow students enrolled in the physical education program to shower
and dress each period.
(3) Toilets are available for the public in facilities intended for shared community use other than in shower/locker areas.
(4) Office space is provided for physical education teachers.
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(5) Space is available for specialized age-appropriate physical education activities such as weight lifting, exercise
equipment usage, aerobics.
(k) Auxiliary Areas.
(1) Multipurpose/cafeteria area (indoor or outdoor) shall be adequately sized and flexibly designed to protect students
from the elements and to allow all students adequate eating time during each lunch period and to accommodate such
uses as physical education activities, assemblies, and extracurricular activities:
(A) Tables and benches or seats are designed to maximize space and allow flexibility in the use of the space.
(B) The location is easily accessible for student and community use, but is close to street for delivery truck access.
(C) Stage/platform may have a dividing wall to be used for instructional purposes but is not intended as a classroom.
(D) Area for the cafeteria line is designed for the flow of traffic for each lunch period.
(E) Design of kitchen reflects its planned function; e.g., whether for food preparation or warming only.
(F) Space is available for refrigeration and preparation of foods to accommodate maximum number of students planned
for the school.
(G) Office, changing, and restroom area for food preparation staff is available and shall comply with local department of
health requirements.
(H) Ceiling height allows for clearance of light fixtures for physical education activities.
(2) Administrative Office.
The administrative office shall have sufficient square footage to accommodate the number of staff for the maximum
enrollment planned for the school consistent with the master plan for the school district and shall be designed to
efficiently conduct the administrative functions, specifically:
(A) Students have direct confidential access to pupil personnel area.
(B) Counter tops are accessible for an age-appropriate population both at a standing and wheelchair level.
(C) Clerical staff have a clear view of nurse's office.
(D) The nurse's office has a bathroom separate from staff bathroom(s) in administration area.
(E) Space for private conference and waiting area is available.
(F) Capability for such computer networking functions as attendance accounting and communicating to each classroom
is considered.
(G) A faculty workroom is available for a staff size proportionate to the student population. 219 of 245
(3) Library/Media Center and Technology.
Library space shall be proportional to the maximum planned school enrollment. The size shall be no less than 960
square feet. However, to allow adaptation for changing technology and communication systems, the following is
recommended:
-two square feet per unit of a.d.a. (average daily attendance) for elementary;
-three square feet per unit of a.d.a. for middle or junior high (grades 6-8);
-four square feet per unit of a.d.a. for high school. In addition:
(A) Provide security for technology and media equipment.
(B) Space and capability for computer terminals is considered for student use, research and report writing.
(C) Visual supervision from circulation desk is available to study areas, stack space, and student work centers.
(D) Design for open and closed-circuit television, dedicated phone line, electrical outlets for stand-alone computers, and
conduit connecting all instructional areas is considered.
(l ) Lighting.
Light design shall generate an illumination level that provides comfortable and adequate visual conditions in each
educational space, specifically:
(1) Ceilings and walls are white or light colored for high reflectance unless function of space dictates otherwise.
(2) Lights do not produce glare or block the line of sight.
(3) Window treatment allows entrance of daylight but does not cause excessive glare or heat gain.
(4) Fixtures provide an even light distribution throughout the learning area.
(5) Light design follows the California Electrical Code found in Part 3 of Title 24 of the California Code of Regulations.
(m) Acoustical.
Hearing conditions shall complement the educational function by good sound control in school buildings, specifically:
(1) The sound-conditioning in a given space is acoustically comfortable to permit instructional activities to take place in
this classroom.
(2) Sound is transmitted without interfering with adjoining instructional spaces; e.g., room partitions are acoustically
designed to minimize noise.
(3) The ventilation system does not transmit an inordinate sound level to the instructional program.
(n) Plumbing.
Restroom stalls shall be sufficient to accommodate the maximum planned enrollment and shall be located on campus to
allow for supervision.
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(1) Refer to Part 5, Title 24, of the California Code of Regulations.
(2) Outdoor restrooms having direct outside access are located in areas that are visible from playground and are easily
supervised.
(o) Year-Round Education.
If a school is being planned for multitrack year-round operation, additional space shall be provided for associated
needs:
(1) Additional space is available for storage of records for staff for all tracks. Additional storage space for the supplies
and projects of off-track students is considered.
(2) Storage and planning space is available for off-track teachers or teachers not assigned to a classroom.
(p) American Disabilities Act.
Schools shall comply with standards established by the American Disabilities Act (Public Law 101-336, Title II).
(q) Child Care Programs.
Schools shall comply with the requirements set forth in Education Code Section 39113.5 regarding plans and
specifications for new schools being designed to provide appropriate space to accommodate before-school and after-
school child care programs.
(r) Exemptions.
At the request of the governing board of a school district, the State Superintendent of Public Instruction may grant
exemptions to any of the standards in this section if the district can demonstrate that the educational appropriateness
and safety of a school design would not be compromised by an alternative to that standard.
Note: Authority cited: Sections 17251(c) and 33031, Education Code. Reference: Sections
17047(a), 17251(c), 17310, 51210(g), 51220(d) and 51225.3, Education Code.
HISTORY
1. Amendment of section and NOTE filed 9-23-77; effective thirtieth day thereafter (Register 77, No. 39).
2. Amendment of article heading, repealer and adoption of section heading and text, and amendment of Note filed 11-
12-93; operative 12-13-93 (Register 93, No. 46).
3. Amendment of subsections (a), (b)-(b)(1), (g)(1)(A), (i)(1)(B), (n)-(n)(1) and (p)-(r), new subsection (i)(4)-
(i)(4)(F), and amendment of Note filed 10-30-2000; operative 10-30-2000 pursuant toGovernment Code section
11343.4(d) (Register 2000, No. 44).
5 CCR § 14030, 5 CA ADC § 14030
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Title 5. Education
Division 1. California Department of Education
Chapter 13. School Facilities and Equipment
Subchapter 1. School Housing
Article 4. Standards, Planning and Approval of School Facilities
§ 14031. Plan Approval Procedures for State-Funded School Districts.
(a) Each state-funded school district shall submit preliminary plans following the standards in Section 14030 including
site utilization, elevations and floor plan drawings that describe the spaces and give the square footage and educational
specifications to the California Department of Education for approval. Prior to preparation of final plans, the school
district shall obtain approval of the preliminary plans from the California Department of Education.
(b) Each state-funded school district shall submit final plans including grading, site utilization, elevation, floor, lighting,
and mechanical working drawings and any alterations to the educational specifications to the California Department of
Education for approval.
(c) Each state-funded school district shall submit the request for exemption from a standard in Section 14030 of this
article, with a description of how the educational appropriateness and safety of a school design would not be
compromised by deviation from the standard, to the California Department of Education.
(e) Each state-funded school district shall submit final plans including a multi-modal/active transportation plan spanning
the entire attendance boundary approved by a traffic engineer representing the Department of Transportation.
Note: Authority cited: Sections 17251(c) and 33031, Education Code. Reference: Sections 17017.5(c) and 17251(c),
Education Code.
HISTORY
1. Amendment filed 9-23-77; effective thirtieth day thereafter (Register 77, No. 39).
2. Repealer and adoption of section heading and text, and adoption of Note filed 11-2-93; operative 12-13-93 (Register
93, No. 46).
3. Amendment of section heading, section and Note filed 10-30-2000; operative 10-30-2000 pursuant to Government
Code section 11343.4(d) (Register 2000, No. 44).
5 CCR § 14031, 5 CA ADC § 14031
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Title 5. Education
Division 1. California Department of Education
Chapter 13. School Facilities and Equipment
Subchapter 1. School Housing
Article 4. Standards, Planning and Approval of School Facilities
§ 14032. Plan Approval for State-Funded School Districts.
The California Department of Education shall notify the district, the district's architect and the Department of General
Services that the preliminary and final plans comply with the standards set forth in Section 14030. Approvals for either
preliminary or final plans are in effect for a maximum of two years from the date of signed approval. School districts
may request an extension of preliminary or final plan approvals if the time line exceeds one year.
Note: Authority cited: Sections 17251(c) and 33031, Education Code. Reference: Sections
17024, 17070.50 and 17251(c), Education Code.
HISTORY
1. Amendment filed 9-23-77; effective thirtieth day thereafter (Register 77, No. 39).
2. Amendment of section heading and text, and adoption of Note filed 11-12-93; operative 12-13-93 (Register 93, No.
46).
3. Amendment of section heading, section and Note filed 10-30-2000; operative 10-30-2000 pursuant to Government
Code section 11343.4(d) (Register 2000, No. 44).
5 CCR § 14032, 5 CA ADC § 14032
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Title 5. Education
Division 1. California Department of Education
Chapter 13. School Facilities and Equipment
Subchapter 1. School Housing
Article 4. Standards, Planning and Approval of School Facilities
§ 14033. Applicability of Plan Standards to Locally-Funded School Districts.
(a) Locally-funded districts shall use the plan standards set forth in Section 14030.
(b) Locally-funded districts may request assistance from the California Department of Education to review plans and
specifications for any new school construction or rehabilitation project.
(c) Locally-funded districts need not submit preliminary and final plans to the California Department of Education.
(d) Locally-funded districts shall prepare documentation of and retain for purposes of a complaint investigation the
exemption from the standard in Section 14030 of this article, with a description of how the educational appropriateness
and safety of a school design would not be compromised by deviation from the standard. Locally-funded districts may
request from the California Department of Education a review of the adequacy of the mitigation measure.
(e) Locally-funded districts shall continue to comply fully with the requirements of Article 3 (commencing with Section
17280) and Article 6 (commencing with Section 17365) of Chapter 2, Part 23 of the Education Code (The Field Act) and
submit all plans and specifications to the Department of General Services, Office of the State Architect for review and
approval prior to executing a contract for the construction or alteration of a public school building or expending any
public funds for such a project.
Note: Authority cited: Sections 17251(c) and (d) and 33031, Education Code. Reference: Sections
17251(d), 17280 and 17365, Education Code.
HISTORY
1. Renumbering of former section 10433 to section 14035 and new section filed 11-12-93; operative 12-13-93
(Register 93, No. 46).
2. Repealer of former section 14033 and renumbering of former section 14034 to new section 14033, including
amendment of section heading, section and Note, filed 10-30-2000; operative 10-30-2000 pursuant to Government
Code section 11343.4(d) (Register 2000, No. 44).
5 CCR § 14033, 5 CA ADC § 14033
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Appendix A
Site Selection Process
When a school district is planning to acquire a site for a school, it must take various factors into
consideration. The School Facilities Planning Division has developed three work sheets to assist the
district in assessing potential sites and making preliminary selections. The work sheets, which are
included in this appendix, outline a set of 12 primary criteria governing school site selection and
consists of three components: Site Selection Criteria, Site Selection Evaluation, and a Comparative
Evaluation of Candidate Sites. These components allow for a comprehensive examination of sites to
determine strengths and weaknesses (Site Selection Criteria); a ranking of each site (Site Selection
Evaluation); and finally, a comparison of sites by the rating factors and total scoring (Comparative
Evaluation of Candidate Sites). The criteria are consistent with the California Education
Code, California Code of Regulations, Title 5, California Public Resources Code, and the California
Department of Education policies and guidelines.
Although these standards are not the sole criteria to be considered by a school district's site selection
committee, the committee may find them useful in evaluating various sites, identifying at least three
acceptable sites from which a final choice can be made, and, eventually, explaining the site selection
process to interested entities.
Each primary element listed on the Site Selection Criteria work sheet contains secondary measures
that provide the committee the opportunity to apply a specific set of guidelines to each potential site
and aid in the analysis of a site. The secondary criteria may also be used by the committee to
understand better the types of data needed in identifications, selection, and final acquisition of a school
site. After considering both primary and secondary standards on the work sheet, the committee should
rank the sites in order of acceptability by completing the second and third work sheets.
June 1998
California Department of Education
Site Selection Criteria
Part 1
Site Identification Grade Level
Location Gross Acres Estimated Value
Safety (These factors must be avoided.)
Adjacent to or near roadways with a high speed or volume of traffic with no separated non-
motorized facilities.
Within 1,500 feet of railroad tracks
Within two miles of an airport runway
Close to high-voltage power lines
Close to high-pressure lines, for example natural gas, gasoline sewer or water lines
Contaminants/toxics in the soil or groundwater, such as from landfills, dumps, chemical plants,
refineries, fuel tanks, nuclear plants, or agricultural use of pesticides or fertilizer, etc.*
Close to high decibel noise sources
Close to open-pit mining
On or near a fault zone or active fault
In a dam inundation area or 100- year flood plain
Social hazards in the neighborhood, such as high incidence of crime and drug or alcohol abuse
*Note: A Phase I Environmental Site Assessment must be conducted for the selected site.
OK Potential
Problem
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Location
Safe walking areasareas Adequate infrastructure ensuring safe non-motorized access throughout
the attendance boundary.
Centrally located to avoid extensive transporting and to minimize student travel distance
Compatible with current and probable future zoning regulations
Close to libraries, parks, museums, and other community services
Favorable orientation to wind and natural light
Environment
Located so as to make active transportation/school access attractive and possible.
Free from sources of noise that may impede the instructional process
Free from air, water and soil pollution
Free from smoke, dust, odors, and pesticide spray
Provides aesthetic view from and of the site
Compatible with the educational program
Soils
Proximity to faults or fault traces Stable
subsurface and bearing capacity Danger of
slides or liquefaction Percolation for septic
system and drainage Adequate water table
level
Existing land fill is reasonably well compacted
Note: A geological hazard report must be conducted to determine soil and seismic conditions.
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June 1998
Topography
Feasibility of mitigating steep grades
Rock ledges or outcroppings
Surface and subsurface drainage
Level area for playfields
OK Potential
Problem
Size and Shape
Net acreage consistent with standards of California Department of Education as noted in
“School Site Analysis and Development”
Length-to-width ratio does not exceed 2:1
Sufficient open play area and open space
Potential for expansion for future needs
Area for adequate and separate bus loading and parking
Safe, adequate, bicycle parking proximate/convenient to classrooms.
Accessibility
Obstacles such as crossings on major streets and intersections, narrow or winding streets, heavy
traffic patterns
Access and dispersal roads
Natural obstacles such as grades or gullies
Freeway access for bus transportation
Routing patterns for foot non-motorized
traffic
Remote areas (with no sidewalks) where students walk to and from school
Easily reachable by emergency response vehicles
Adequate non-motorized infrastructure throughout the attendance boundary.
Public Services
Fire and police protection, including firelines
Available public transportation
Trash and garbage disposal
Utilities
Availability of water, electricity, gas, sewer
Feasibility of bringing utilities to site at reasonable cost
Restrictions on right of way
Cost
Full-cost accounting identifies capital, operating/maintenance costs for outside agencies.
Reasonable costs for purchase of property, severance damages, relocation of residents and
businesses, and legal fees
Reasonable costs for site preparation including, but not limited to, drainage, parking,
driveways, removal of existing buildings, and grading
Toxic cleanup beyond the owner's obligation
Environmental mitigation
Rblit t
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June 1998
Availability
On the market for sale
Title clearance
Condemnation of buildings and relocation of residents
OK Potentia
l
Public Acceptance
Public acceptance of the proposed site
Receptivity of city or county planning
commission Zoned for prime
agriculture or industrial use Negative
environmental impact report
Cditi f d hlith f t it l
Comments:
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LEGISLATION COMMITTEE 13.
Meeting Date:03/13/2017
Subject:State Bills of Interest to Contra Costa County
Submitted For: LEGISLATION COMMITTEE,
Department:County Administrator
Referral No.: 2017-05
Referral Name: State Bills of Interest
Presenter: L. DeLaney Contact: L. DeLaney, 925-335-1097
Referral History:
The Legislation Committee regularly reviews and makes recommendations to the Board of
Supervisors on state bills of interest that may impact or affect County operations and programs. Attachment A
Attachment A is the Master List of state bills that County staff is reviewing and monitoring. State
bills of interest to Contra Costa County are identified by staff, our state advocates, UCC and
CSAC staff, and other county-related associations.
The Legislation Committee may provide direction to staff on pursuing additional information and
input about the potential impacts of bills on County operations and programs, or may make
recommendations on advocacy positions to the Board of Supervisors.
Referral Update:
February 17 marked the legislative deadline for bill introductions, which now totals over 2,400 for
the current 2017-18 session. Nearly 25% of those are “spot bills” or place holders for policy
proposals that are still being developed. Committee hearings will pick up in earnest in mid-March
until the Legislative Spring Recess on April 7.
Recommendation(s)/Next Step(s):
REVIEW the Master List of State Bills of Interest to Contra Costa County and provide direction
to staff, as needed.
Attachments
Attachment A: Master List of Bills
229 of 245
Attachment A Page 1
Contra Costa County:
Master List of Bills of Interest 2017
CA AB 1 AUTHOR: Frazier [D]
TITLE: Transportation Funding
INTRODUCED: 12/05/2016
DISPOSITION: Pending
LOCATION: Assembly Transportation Committee
SUMMARY:
Creates the Road Maintenance and Rehabilitation Program to address deferred
maintenance on the state highway and local street and road systems. Provides
for certain funds, creation of the Office of the Transportation Inspector General,
certain loan repayments, diesel fuel excise tax revenues, the appropriations to
the Low Carbon Transit Operations Program, gasoline excise taxes, a certain
CEQA exemption, an Advance Mitigation Program, and a certain surface
transportation project delivery program.
STATUS:
01/19/2017 To ASSEMBLY Committees on TRANSPORTATION and
NATURAL RESOURCES.
BOS: Support
CA AB 3 AUTHOR: Bonta [D]
TITLE: Public Defenders: Legal Counsel: Immigration
INTRODUCED: 12/05/2016
LAST AMEND: 02/17/2017
DISPOSITION: Pending
LOCATION: Assembly Appropriations Committee
SUMMARY:
Requires the Department of Social Services or a nonprofit organization
contracting with the department to issue requests for proposal and issue grants
to qualified legal services projects, qualified support centers, or county offices of
the public defender that meet specified requirements, to expand programs on
issues relating to the immigration consequences of criminal convictions.
STATUS:
02/17/2017 In ASSEMBLY. Read second time and amended.
Re-referred to Committee on APPROPRIATIONS.
Commentary:
requested by Ali Saidi of Public Defender's Office
CA AB 42 AUTHOR: Bonta [D]
TITLE: Bail Reform
INTRODUCED: 12/05/2016
LAST AMEND: 02/14/2017
DISPOSITION: Pending
LOCATION: Assembly Public Safety Committee
SUMMARY:
States the intent of the Legislature to enact legislation to safely reduce the
number of people detained pretrial, and to ensure that people are not held in
pretrial detention simply because of their inability to afford money bail. Requires
the court to release a defendant being held for a misdemeanor offense on his or
230 of 245
Attachment A Page 2
own recognizance unless a certain finding is made.
STATUS:
02/14/2017 From ASSEMBLY Committee on PUBLIC SAFETY with
author's amendments.
02/14/2017 In ASSEMBLY. Read second time and amended.
Re-referred to Committee on PUBLIC SAFETY.
Commentary:
Consistent with Platform Policy #189.
Commentary001:
Leg Com recommends support to BOS
CA AB 52 AUTHOR: Cooper [D]
TITLE: Public Employee: Orientation And Informational
Programs
INTRODUCED: 12/05/2016
DISPOSITION: Pending
LOCATION: Assembly Public Employees, Retirement and Social Security
Committee
SUMMARY:
Requires the public employers regulated by specified acts to provide all
employees an orientation and to permit an exclusive representative to
participate.
STATUS:
01/19/2017 To ASSEMBLY Committee on PUBLIC EMPLOYEES,
RETIREMENT AND SOCIAL SECURITY.
Commentary:
HR/labor is monitoring
CA AB 71 AUTHOR: Chiu [D]
TITLE: Taxes: Credits: Low-Income Housing
INTRODUCED: 12/16/2016
LAST AMEND: 03/02/2017
DISPOSITION: Pending
COMMITTEE: Assembly Housing and Community Development Committee
HEARING: 03/08/2017 9:00 am
SUMMARY:
Increases, under the Insurance Taxation Law, the Personal Income Tax Law,
and the Corporation Tax Law, the aggregate housing credit dollar amount that
may be allocated among low-income housing projects and farmworker housing
projects. Disallows a specified mortgage-related deduction under the Personal
Income Tax Law. Provides for allowable credit amounts.
STATUS:
03/08/2017 From ASSEMBLY Committee on HOUSING AND COMMUNITY
DEVELOPMENT: Do pass to Committee on REVENUE AND
TAXATION.
Commentary:
Send to Leg Com for March
CA AB 73 AUTHOR: Chiu [D]
TITLE: Planning and Zoning: Housing Sustainability Districts
INTRODUCED: 12/16/2016
231 of 245
Attachment A Page 3
DISPOSITION: Pending
LOCATION: Assembly Local Government Committee
SUMMARY:
Authorizes a city, county, or city and county to establish by ordinance a housing
sustainability district and to apply to the Office of Planning and Research for
approval for a zoning incentive payment. Provides for permits for residential
development, design review standards, and certain application fees. Requires
that prevailing wages be paid in connection with all projects within the district.
Requires a lead agency, when designating districts, to prepare an EIR for the
designation.
STATUS:
02/09/2017 In ASSEMBLY. Coauthors revised.
Commentary:
send to KD for review
CA AB 74 AUTHOR: Chiu [D]
TITLE: Housing
INTRODUCED: 12/16/2016
DISPOSITION: Pending
COMMITTEE: Assembly Housing and Community Development Committee
HEARING: 03/08/2017 9:00 am
SUMMARY:
Requires the Department of Housing and Community Development to establish
a Housing for a Healthy California Program, and to award grants to certain grant
applicants. Provides for interim and long-term rental assistance. Authorizes the
department to enter into contracts on a bid or negotiated basis, exempt from
specified small business procurement, personal service, and public contracting
provisions.
STATUS:
03/08/2017 From ASSEMBLY Committee on HOUSING AND COMMUNITY
DEVELOPMENT: Do pass to Committee on HEALTH.
Commentary:
send to KD to review
CA AB 85 AUTHOR: Rodriguez [D]
TITLE: General Assistance: Employable Veterans
INTRODUCED: 01/05/2017
LAST AMEND: 03/01/2017
DISPOSITION: Pending
LOCATION: Assembly Veterans Affairs Committee
SUMMARY:
Amends an existing law which permits a county to prohibit an employable
individual from receiving general assistance benefits to exempt from that
prohibition an employable veteran who was honorably discharged from the
Armed Forces.
STATUS:
03/07/2017 From ASSEMBLY Committee on HUMAN SERVICES: Do
pass to Committee on VETERANS AFFAIRS. (7-0)
BOS: Watch
CA AB 152 AUTHOR: Gallagher [R]
232 of 245
Attachment A Page 4
TITLE: Board of State and Community Corrections:
Recidivism
INTRODUCED: 01/11/2017
DISPOSITION: Pending
LOCATION: Assembly Appropriations Committee
SUMMARY:
Requires the Board of State and Community Corrections to collect and analyze
data regarding recidivism rates of all persons who receive a felony sentence
punishable by imprisonment in county jail or who are placed on post-release
community supervision. Requires the board to make this data available on the
board's Internet Web site.
STATUS:
02/28/2017 From ASSEMBLY Committee on PUBLIC SAFETY: Do pass
to Committee on APPROPRIATIONS. (7-0)
Commentary:
Send to Leg Com
CA AB 154 AUTHOR: Levine [D]
TITLE: Prisoners: Mental Health Treatment
INTRODUCED: 01/11/2017
DISPOSITION: Pending
LOCATION: Assembly Appropriations Committee
SUMMARY:
Authorizes a defendant who is or has been eligible for public mental health
services or who is eligible for certain Social Security Disability Insurance
benefits to petition the court for a sentence that includes mental health
treatment. Authorizes a court to order the Department of Corrections and
Rehabilitation or a county authority to provide specified mental health service,
including placement in a residential mental health treatment facility instead of
prison or county jail.
STATUS:
02/28/2017 From ASSEMBLY Committee on PUBLIC SAFETY: Do pass
to Committee on APPROPRIATIONS. (5-2)
BOS: Watch
CA AB 210 AUTHOR: Santiago [D]
TITLE: Homeless Multidisciplinary Personnel Team
INTRODUCED: 01/23/2017
DISPOSITION: Pending
COMMITTEE: Assembly Human Services Committee
HEARING: 03/21/2017 1:30 pm
SUMMARY:
Authorizes counties to also establish a homeless adult, child, and family
multidisciplinary personnel team with the goal of facilitating the expedited
identification, assessment, and linkage of homeless individuals to housing and
supportive services and to allow provider agencies to share confidential
information for the purpose of coordinating such services.
STATUS:
02/06/2017 To ASSEMBLY Committees on HUMAN SERVICES and
PRIVACY AND CONSUMER PROTECTION.
BOS: To Leg Com for support
233 of 245
Attachment A Page 5
CA AB 211 AUTHOR: Bigelow [R]
TITLE: State Responsibility Area Fire Prevention Fees
INTRODUCED: 01/23/2017
DISPOSITION: Pending
LOCATION: Assembly Natural Resources Committee
SUMMARY:
Amends an existing law which requires the State Board of Forestry and Fire
Protection to establish a fire prevention fee and to submit an annual written
report to the Legislature on the status of the uses of fee moneys. Requires the
report to include an itemized accounting of all expenditures from a certain fund
and to occur annually for an indefinite period of time.
STATUS:
02/06/2017 To ASSEMBLY Committee on NATURAL RESOURCES.
Commentary:
No policy in Platform, but the BOS has acted on related bills in the past.
Sending to Leg. Com.
CA AB 216 AUTHOR: Gonzalez [D]
TITLE: Vote by Mail Ballots: Identification Envelopes
INTRODUCED: 01/24/2017
DISPOSITION: Pending
COMMITTEE: Assembly Elections and Redistricting Committee
HEARING: 03/22/2017 9:00 am
SUMMARY:
Clarifies that the elections official is required to deliver to each qualified vote by
mail applicant an identification envelope for the return of the vote by mail ballot
and requires the identification envelope to have prepaid postage.
STATUS:
02/06/2017 To ASSEMBLY Committee on ELECTIONS AND
REDISTRICTING.
Commentary:
Sent to JC
CA AB 236 AUTHOR: Maienschein [R]
TITLE: CalWORKs: Housing Assistance
INTRODUCED: 01/30/2017
DISPOSITION: Pending
LOCATION: Assembly Appropriations Committee
SUMMARY:
Provides that homeless assistance is available to homeless families that would
be eligible for aid under the CalWORK's program but for the fact that the only
child or children in the family are in out-of-home placement pursuant to an
order of the dependency court, if the family is receiving reunification services
and the county determines that homeless assistance is necessary for
reunification to occur.
STATUS:
03/07/2017 From ASSEMBLY Committee on HUMAN SERVICES: Do
pass to Committee on APPROPRIATIONS. (7-0)
BOS: Watch
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CA AB 285 AUTHOR: Melendez [R]
TITLE: Drug and Alcohol Free Residences
INTRODUCED: 02/02/2017
DISPOSITION: Pending
COMMITTEE: Assembly Health Committee
HEARING: 03/21/2017 1:30 pm
SUMMARY:
Defines a drug and alcohol free residence as a residential property that is
operated as a cooperative living arrangement to provide an alcohol and drug
free environment for persons recovering from alcoholism or drug abuse, or
both, who seek a living environment that supports personal recovery.
Authorizes one of these residences to demonstrate its commitment to providing
a supportive recovery environment by applying and becoming certified by an
approved certifying organization, as specified.
STATUS:
02/13/2017 To ASSEMBLY Committee on HEALTH.
Commentary:
Sent to Fatima and Donte for input.
CA AB 313 AUTHOR: Gray [D]
TITLE: Water
INTRODUCED: 02/06/2017
DISPOSITION: Pending
LOCATION: Assembly Water, Parks and Wildlife Committee
SUMMARY:
Revises the qualifications for the membership to the State Water Resources
Control Board by eliminating specified requirements for qualification in the field
of water rights. Transfers authority over water rights matters from the board to
the Department of Water Resources.
STATUS:
02/21/2017 To ASSEMBLY Committee on WATER, PARKS AND WILDLIFE.
BOS: Watch
CA AB 358 AUTHOR: Grayson [D]
TITLE: Regional Economic Development Areas
INTRODUCED: 02/08/2017
DISPOSITION: Pending
LOCATION: ASSEMBLY
SUMMARY:
States the intent of the Legislature to enact legislation that would develop
regional economic development areas.
STATUS:
02/08/2017 INTRODUCED.
Commentary:
send to Rich Seithel
CA AB 432 AUTHOR: Thurmond [D]
TITLE: Personal Care Services
INTRODUCED: 02/13/2017
DISPOSITION: Pending
COMMITTEE: Assembly Human Services Committee
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HEARING: 03/21/2017 1:30 pm
SUMMARY:
Authorizes the California In-Home Supportive Services Authority and certain
other entities to meet and confer in good faith regarding wages, benefits, and
other terms and conditions of employment with representatives of recognized
employee organizations for an individual who is employed by a recipient of
waiver personal care services.
STATUS:
02/27/2017 To ASSEMBLY Committee on HUMAN SERVICES.
Commentary:
send to EHSD to review
CA AB 435 AUTHOR: Thurmond [D]
TITLE: Child Care Subsidy Plans: County of Contra Costa
INTRODUCED: 02/13/2017
DISPOSITION: Pending
LOCATION: Assembly Human Services Committee
SUMMARY:
Authorizes the County of Contra Costa to develop and submit an individualized
county child care subsidy plan.
STATUS:
02/27/2017 To ASSEMBLY Committee on HUMAN SERVICES.
Commentary:
First 5 and CCCOE sponsored.
CA AB 467 AUTHOR: Mullin [D]
TITLE: Local Transportation Authorities: Transactions and
Tax
INTRODUCED: 02/13/2017
DISPOSITION: Pending
LOCATION: Assembly Local Government Committee
SUMMARY:
Amends the Local Transportation Authority and Improvement Act, which
provides for a local transportation authority to adopt a transportation
expenditure plan for the proceeds of a specified tax, and requires the plan to be
included in a voter information handbook sent to voters.
STATUS:
02/27/2017 To ASSEMBLY Committees on LOCAL GOVERNMENT and
ELECTIONS AND REDISTRICTING.
Commentary:
CSAC sponsored bill. They are requesting support letters.
CA AB 898 AUTHOR: Frazier [D]
TITLE: Property Taxation: Revenue Allocation
INTRODUCED: 02/16/2017
DISPOSITION: Pending
LOCATION: ASSEMBLY
SUMMARY:
Reallocates property tax revenue to fire protection services.
STATUS:
02/16/2017 INTRODUCED.
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Commentary:
Companion to AB 899.
CA AB 899 AUTHOR: Frazier [D]
TITLE: Local Government Finance: Property Tax Revenue
INTRODUCED: 02/16/2017
DISPOSITION: Pending
LOCATION: ASSEMBLY
SUMMARY:
Provides for an election in the County of Contra Costa for the purpose of
reallocating property tax revenues for fire protection services in that county.
STATUS:
02/16/2017 INTRODUCED.
Commentary:
Watch
CA AB 943 AUTHOR: Santiago [D]
TITLE: Local Ballot Initiatives
INTRODUCED: 02/16/2017
DISPOSITION: Pending
LOCATION: Assembly Local Government Committee
SUMMARY:
Increases the vote threshold for approval of local initiatives intended to curb,
delay, or deter growth and development throughout California.
STATUS:
03/02/2017 To ASSEMBLY Committees on LOCAL GOVERNMENT and
ELECTIONS AND REDISTRICTING.
Commentary:
Opposed by League of Cities. Sponsored by California Apartment Assn.
http://californiacountynews.org/news/2017/02/proposed-bill-would-stymie-local
-slow-growth-measures?utm_source=CaliforniaCountyNews&utm_campaign=7e
bce878ee-County_27_Feb_2017&utm_medium=email&utm_term=0_45da5731
1d-7ebce878ee-123340345&mc_cid=7ebce878ee&mc_eid=00ef35d608
CA AB 1404 AUTHOR: Berman [D]
TITLE: Environmental Quality Act: Categorical Exemption
INTRODUCED: 02/17/2017
DISPOSITION: Pending
LOCATION: ASSEMBLY
SUMMARY:
Expands exemptions from the California Environmental Quality Act to include
proposed developments occurring within the unincorporated areas of a county.
STATUS:
02/17/2017 INTRODUCED.
Commentary:
May be consistent with #167
CA AB 1406 AUTHOR: Gloria [D]
TITLE: Homeless Youth Advocacy and Housing Program
INTRODUCED: 02/17/2017
DISPOSITION: Pending
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Attachment A Page 9
LOCATION: ASSEMBLY
SUMMARY:
Establishes the Homeless Youth Advocacy and Housing Program to award grants
to up to 10 local continuums of care that demonstrate the ability to contract
with service provider capable of providing housing assistance and supportive
services to homeless youth with the goal of transitioning youth towards
self-sufficiency.
STATUS:
02/17/2017 INTRODUCED.
Commentary:
Sent to Lavonna for review
CA AB 1520 AUTHOR: Burke [D]
TITLE: Lifting Children and Families Out of Poverty
INTRODUCED: 02/17/2017
DISPOSITION: Pending
LOCATION: ASSEMBLY
SUMMARY:
Amends existing law which establishes various programs that provide cash
assistance and other benefits relating to health care, food, and housing to
qualified low-income families and individuals. States the intent of the
Legislature to move toward reducing child poverty by a 50% over a 20-year
period. Uses a specified framework as guiding and nonbinding recommendations
for purposes of enacting fund programs or services that reduce child poverty.
STATUS:
02/17/2017 INTRODUCED.
Commentary:
Sending to EHSD for review. Baker and Thurmond co-sponsoring.
CA ACA 4 AUTHOR: Aguiar-Curry [D]
TITLE: Local Government Financing: Affordable Housing
INTRODUCED: 02/17/2017
DISPOSITION: Pending
LOCATION: ASSEMBLY
SUMMARY:
Authorizes a local government to impose, extend, or increase a special tax for
the purposes of funding the construction, rehabilitation or replacement of public
infrastructure or affordable housing, if the proposition proposing that tax is
approved by a certain percent of voters. Lowers the voter-approval threshold
for the incurrence of bonded indebtedness in certain cases.
STATUS:
02/17/2017 INTRODUCED.
Commentary:
a two-thirds supermajority would no longer be required for bond or special tax
measures. Instead, tax hikes or bond measures for transit, water, parks and
low-income housing projects could pass with just 55%.
CA SB 2 AUTHOR: Atkins [D]
TITLE: Building Homes and Jobs Act
INTRODUCED: 12/05/2016
LAST AMEND: 03/07/2017
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DISPOSITION: Pending
COMMITTEE: Senate Governance and Finance Committee
HEARING: 03/15/2017 9:30 am
SUMMARY:
Enacts the Building Homes and Jobs Act. Imposes a fee to be paid at the time of
the recording of every real estate instrument, paper, or notice. Provides for
expenditures for affordable owner-occupied workforce housing, housing for
purposes related to agricultural workers and their families, affordable housing,
and other housing-related programs.
STATUS:
03/07/2017 From SENATE Committee on GOVERNANCE AND FINANCE
with author's amendments.
03/07/2017 In SENATE. Read second time and amended. Re-referred
to Committee on GOVERNANCE AND FINANCE.
Commentary:
TO LEG COM
BOS: Watch
CA SB 3 AUTHOR: Beall [D]
TITLE: Affordable Housing Bond Act of 2018
INTRODUCED: 12/05/2016
DISPOSITION: Pending
COMMITTEE: Senate Governance and Finance Committee
HEARING: 03/22/2017 9:30 am
SUMMARY:
Enacts the Affordable Housing Bond Act of 2018 which would authorize the
issuance of bonds to be used to finance various existing housing programs, as
well as infill infrastructure financing and affordable housing matching grant
programs.
STATUS:
02/28/2017 From SENATE Committee on TRANSPORTATION AND
HOUSING: Do pass to Committee on GOVERNANCE AND
FINANCE. (10-2)
Commentary:
Legislation Committee voted to send to BOS on 2/13 with a recommendation to
support.
CA SB 6 AUTHOR: Hueso [D]
TITLE: Immigrants: Removal Proceedings: Legal Services
INTRODUCED: 12/05/2016
LAST AMEND: 03/01/2017
DISPOSITION: Pending
COMMITTEE: Senate Appropriations Committee
HEARING: 03/13/2017 10:00 am
SUMMARY:
Requires the Department of Social Services to contract with qualified nonprofit
legal services to provide legal services to individuals in removal proceedings
who are not otherwise entitled to legal representation under an existing local,
state, or federal program. Authorizes the department to prioritize the award of
contracts and to prioritize the award of contracts to qualified nonprofit legal
services organizations that receive certain county or city funding.
239 of 245
Attachment A Page 11
STATUS:
03/01/2017 From SENATE Committee on APPROPRIATIONS with author's
amendments.
03/01/2017 In SENATE. Read second time and amended. Re-referred
to Committee on APPROPRIATIONS.
Commentary:
Requested by Ali Saidi of Public Defender's Office
CA SB 8 AUTHOR: Beall [D]
TITLE: Diversion: Mental Disorders
INTRODUCED: 12/05/2016
LAST AMEND: 02/21/2017
DISPOSITION: Pending
COMMITTEE: Senate Public Safety Committee
HEARING: 03/21/2017 9:30 am
SUMMARY:
Authorizes a court to postpone prosecution of a misdemeanor or a felony
punishable in a county jail, and place a defendant in a pretrial diversion
program, if the court is satisfied the defendant suffers from a mental disorder
and meets certain other requirements. Allows the defense to arrange for a
program of mental health treatment utilizing existing inpatient or outpatient
mental health resources.
STATUS:
02/21/2017 From SENATE Committee on PUBLIC SAFETY with author's
amendments.
02/21/2017 In SENATE. Read second time and amended. Re-referred
to Committee on PUBLIC SAFETY.
BOS: Watch
CA SB 10 AUTHOR: Hertzberg [D]
TITLE: Bail: Pretrial Release
INTRODUCED: 12/05/2016
LAST AMEND: 01/17/2017
DISPOSITION: Pending
LOCATION: Senate Public Safety Committee
SUMMARY:
Relates to bail and pretrial release. Requires the court to release a defendant
being held for a misdemeanor offense on his or her own recognizance unless the
court makes an additional finding on the record that there is no condition or
combination of conditions that would reasonably ensure public safety and the
appearance of the defendant if the defendant is released on his or her own
recognizance.
STATUS:
01/26/2017 Re-referred to SENATE Committee on PUBLIC SAFETY.
Commentary:
Leg Com recommends Support to BOS
CA SB 54 AUTHOR: de Leon [D]
TITLE: Law Enforcement: Sharing Data
INTRODUCED: 12/05/2016
LAST AMEND: 03/06/2017
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Attachment A Page 12
DISPOSITION: Pending
COMMITTEE: Senate Appropriations Committee
HEARING: 03/13/2017 10:00 am
SUMMARY:
Repeals provisions requiring that when there is reason to believe that a person
arrested for a violation of controlled substance provisions may not be a United
States citizen, the arresting agency shall notify an agency having charge of
deportation matters. Prohibits certain agencies and school police and security
departments from using resources for specified activities concerning
immigration enforcement. Sets forth requirements for schools, health facilities,
courthouses and shelters.
STATUS:
03/06/2017 From SENATE Committee on APPROPRIATIONS with author's
amendments.
03/06/2017 In SENATE. Read second time and amended. Re-referred
to Committee on APPROPRIATIONS.
Commentary:
Referred to PPC by BOS on 2/7/17
CA SB 148 AUTHOR: Wiener [D]
TITLE: State Board of Equalization: Counties: State Agencies
INTRODUCED: 01/17/2017
DISPOSITION: Pending
COMMITTEE: Senate Governance and Finance Committee
HEARING: 03/29/2017 9:30 am
SUMMARY:
Enacts the Cannabis State Payment Collection Law and authorizes the State
Board of Equalization or a county to collect cash payments from
cannabis-related businesses for a state agency that administers any fee, fine,
penalty, or other charge payable by a cannabis-related business.
STATUS:
01/26/2017 To SENATE Committee on GOVERNANCE AND FINANCE.
BOS: Watch
CA SB 166 AUTHOR: Skinner [D]
TITLE: Residential Density and Affordability
INTRODUCED: 01/23/2017
LAST AMEND: 03/01/2017
DISPOSITION: Pending
LOCATION: Senate Governance and Finance Committee
SUMMARY:
Amends the Planning and Zoning Law. Prohibits a city, county, or city and
county from permitting or causing an inventory of sites identified in a housing
element to be insufficient to meet its remaining unmet share of the regional
housing need for lower and moderate-income households. Conditions the
approval of a development containing fewer housing units at each income level
than its identified capacity upon identifying sufficient sites or rezones.
STATUS:
03/07/2017 From SENATE Committee on TRANSPORTATION AND
HOUSING: Do pass to Committee on GOVERNANCE AND
FINANCE.
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Attachment A Page 13
Commentary:
Kara Douglas has reviewed: It is another effort to put teeth in the housing
element without providing any funds for affordable housing.
Would require significant staff time tracking and re-designating RHNA sites on a
continuous basis. (We currently update our sites inventory at the beginning of a
new housing element cycle.) It would burden jurisdictions and would likely not
achieve desired results of additional units.
CA SB 167 AUTHOR: Skinner [D]
TITLE: Supplemental Security Income & CalFresh:
Preenrollment
INTRODUCED: 01/23/2017
DISPOSITION: Pending
COMMITTEE: Senate Human Services Committee
HEARING: 03/28/2017 1:30 pm
SUMMARY:
Requires the Secretary of the Department of Corrections and Rehabilitation to
establish memoranda of understanding with the federal Social Security
Administration to allow a person incarcerated in a correctional institution to
apply for a replacement social security card and to allow the administration to
process SSI claims under a prerelease program.
STATUS:
02/02/2017 To SENATE Committees on HUMAN SERVICES and PUBLIC
SAFETY.
Commentary:
Leg Com recommends sending to BOS on Consent
CA SB 184 AUTHOR: Morrell [R]
TITLE: Social Security Number Truncation Program
INTRODUCED: 01/25/2017
DISPOSITION: Pending
COMMITTEE: Senate Governance and Finance Committee
HEARING: 03/22/2017 9:30 am
SUMMARY:
Provides that, for each official record recorded before a certain date, a county
recorder may create a copy of that record in an electronic format and truncate
any social security number contained in that record.
STATUS:
02/02/2017 To SENATE Committees on GOVERNANCE AND FINANCE and
JUDICIARY.
BOS: Watch
CA SB 190 AUTHOR: Mitchell [D]
TITLE: Juveniles
INTRODUCED: 01/26/2017
DISPOSITION: Pending
COMMITTEE: Senate Public Safety Committee
HEARING: 03/21/2017 9:30 am
SUMMARY:
Amends an existing law which provides that inmates committed to a county jail
or other county correctional facility or granted probation, or inmates
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Attachment A Page 14
participating in a work furlough program, may participate in a home detention
program, and which provides for certain fees. Makes those fees payable only by
adult participants of a home detention program.
STATUS:
02/09/2017 To SENATE Committees on PUBLIC SAFETY and HUMAN
SERVICES.
BOS: Watch
CA SB 192 AUTHOR: Beall [D]
TITLE: Mental Health
INTRODUCED: 01/30/2017
DISPOSITION: Pending
LOCATION: Senate Health Committee
SUMMARY:
Relates to the Mental Health Services Act, which imposes a tax on incomes
above a specified sum for the purpose of financing new or expanded mental
health services.
STATUS:
02/09/2017 To SENATE Committee on HEALTH.
BOS: Watch
CA SB 222 AUTHOR: Hernandez [D]
TITLE: Inmates: Health Care Enrollment
INTRODUCED: 02/02/2017
DISPOSITION: Pending
LOCATION: Senate Health Committee
SUMMARY:
Requires the suspension of Medi-Cal benefits to end on the date he or she is no
longer an inmate of a public institution or is no longer otherwise eligible for
benefits under the Medi-Cal program. Requires the State Department of Health
Care Services, in consultation with specified stakeholders, to develop and
implement a simplified annual renewal process for individuals in a suspended
eligibility status.
STATUS:
02/16/2017 To SENATE Committees on HEALTH and PUBLIC SAFETY.
Commentary:
Send to Leg Com for support
CA SB 224 AUTHOR: Jackson [D]
TITLE: Environmental Quality Act: Baseline Conditions
INTRODUCED: 02/02/2017
DISPOSITION: Pending
LOCATION: Senate Environmental Quality Committee
SUMMARY:
Relates to the California Environmental Quality Act. Prohibits a lead agency, in
determining the baseline physical conditions by which a lead agency determines
whether a project has a significant effect on the environment, from considering
the effects of certain actions on the environment.
STATUS:
02/16/2017 To SENATE Committee on ENVIRONMENTAL QUALITY.
BOS: Watch
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Attachment A Page 15
CA SB 231 AUTHOR: Hertzberg [D]
TITLE: Local Government: Fees and Charges
INTRODUCED: 02/02/2017
DISPOSITION: Pending
COMMITTEE: Senate Governance and Finance Committee
HEARING: 04/05/2017 9:30 am
SUMMARY:
Relates to a provision of the California Constitution that requires that
assessments, fees, and charges be submitted to property owners for approval
or rejection after the provision of written notice and the holding of a public
hearing. Defines the term sewer for these purposes. Makes findings and
declarations relating to the definition of the term sewer for these purposes.
STATUS:
02/16/2017 To SENATE Committee on GOVERNANCE AND FINANCE.
Commentary:
Mitch writing support letter. Consistent with Platform Policy #34
BOS: Support
CA SB 371 AUTHOR: Moorlach [R]
TITLE: Local Public Employee Organizations
INTRODUCED: 02/14/2017
DISPOSITION: Pending
LOCATION: Senate Public Employment and Retirement Committee
SUMMARY:
Prohibits an individual who will be covered by a memorandum of understanding
between a local public agency and a recognized public employee organization
from representing the public agency in negotiations with the recognized
employee organization.
STATUS:
02/23/2017 To SENATE Committee on PUBLIC EMPLOYMENT AND
RETIREMENT.
Commentary:
Brought to attention by Dianne Dinsmore
CA SB 450 AUTHOR: Hertzberg [D]
TITLE: Public Bodies: Bonds: Public Notice
INTRODUCED: 02/15/2017
DISPOSITION: Pending
COMMITTEE: Senate Governance and Finance Committee
HEARING: 03/29/2017 9:30 am
SUMMARY:
Requires the governing body of a public body to obtain and disclose specified
information regarding the issuance of bonds, in a meeting open to the public.
STATUS:
02/23/2017 To SENATE Committee on GOVERNANCE AND FINANCE.
Commentary:
Sent to Tim Ewell for review
CA SCA 3 AUTHOR: Dodd [D]
TITLE: Local Government Finance: Libraries: Voter Approval
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Attachment A Page 16
INTRODUCED: 01/30/2017
LAST AMEND: 03/06/2017
DISPOSITION: Pending
COMMITTEE: Senate Governance and Finance Committee
HEARING: 03/29/2017 9:30 am
SUMMARY:
Creates an additional exception to the 1% real property tax limit for a rate
imposed by a city, county, or special district to service bonded indebtedness
incurred to fund public library facilities, that is approved by a certain percentage
of the voters of the city, county, or special district.
STATUS:
03/06/2017 From SENATE Committee on GOVERNANCE AND FINANCE
with author's amendments.
03/06/2017 In SENATE. Read second time and amended. Re-referred
to Committee on GOVERNANCE AND FINANCE.
Commentary:
Consistent with policy #197. Library Commission to draft letter.
Copyright (c) 2017 State Net. All rights reserved.
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