BILL ANALYSIS Ó SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Isadore Hall, III Chair 2015 - 2016 Regular Bill No: AB 1348 Hearing Date: 5/10/2016 ----------------------------------------------------------------- |Author: |Irwin | |-----------+-----------------------------------------------------| |Version: |1/14/2016 Amended | ----------------------------------------------------------------- ------------------------------------------------------------------ |Urgency: |No |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Arthur Terzakis | | | | ----------------------------------------------------------------- SUBJECT: State Clearinghouse DIGEST: This bill establishes the federal grant administrator within the State Clearinghouse, under the Governor's Office of Planning and Research (OPR), to serve as the state's primary point of contact for information on federal grants related to community, economic and local development. This bill also requires the federal grant administrator to annually prepare a summary of his or her activities, including total federal grants received by the state, local governments and school districts, as specified. ANALYSIS: Existing law requires the State Clearinghouse, which is located within OPR, to serve as the 'State Single Point of Contact' for coordinating state and local review of certain federal community development-related documents, pursuant to Presidential Executive Order 12372. In this capacity, the State Clearinghouse coordinates the review of federal financial assistance applications, federally required state plans, direct federal development activities, and federal environmental documents. This bill: 1)Creates the federal grant administrator, within the State Clearinghouse, who is an individual designated by the Governor AB 1348 (Irwin) Page 2 of ? to serve as the state's primary point of contact for information on federal grants related to community, economic and local development. 2)Authorizes the grant administrator to do the following: a) Work with state and local governments, nonprofits, foundations, institutions of higher education, and other interested parties on applying for and managing federal grants. b) Support the establishment of a statewide network of individuals who serve as point-of-contact for federal grant opportunities. c) Provide, or facilitate the provision of, in-person and online training to encourage and improve the ability to pursue and manage federal grants. d) Develop and maintain information on OPR's Internet Web site related to new federal grant opportunities, grant management best practices, and other resources to support the ability of state and local governments and nonprofit entities to apply and manage federal grants. 3)Requires the grant administrator, starting on or before January 1, 2018, to annually prepare a summary of federal grant funding that tracks the following performance metrics: a) Number of federal grants awarded to the state in prior and current years, as specified. b) Number of federal grant applications submitted for grant funding. c) Total federal dollars received by the state, school districts and local governments each year. d) Number of training sessions hosted, attendance at those events and any other relevant information regarding federal AB 1348 (Irwin) Page 3 of ? grant activities within the state. Background The author's office notes that grants are becoming an increasing part of the federal government's process for advancing new federal policies. According to the federal Office of Management and Budget, federal outlays for grants to state and local governments increased from $91 billion in 1980 ($224 billion in constant dollars) to approximately $546 billion in the 2013 federal fiscal year. The federal government allocates approximately $550 billion in federal grants to state and local governments annually on the basis of formulas established by law or through a competitive process for project grants. For competitive grants, policymakers choose a list of criteria that guide evaluation and selection of applications. Competitive federal grants for purposes such as research, implementation of education reforms, or transportation projects are a growing share of the national economy. The author's office contends that California received over $66 billion in 2013 however that sum is still below the national average for states according to the National Conference of State Legislatures. The author's office states that this bill provides the coordinating functions necessary to manage and maximize federal grant opportunities for the state and local governments. The author's office also points out that several states (e.g., Arizona, Maryland, Massachusetts, Nevada, and Rhode Island) have created a Federal Grant Office to maximize their state's federal grant opportunities. Additionally, the author's office emphasizes that even small improvements in the cumbersome process of identifying, tracking, applying and competing, and spending federal grant dollars can mean large returns for California. FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No SUPPORT: California Hispanic Chambers of Commerce League of California Cities OPPOSITION: AB 1348 (Irwin) Page 4 of ? None received