SB 2158

Present law generally authorizes the governor to apply for, or accept, federal aid through any recipient; provided, that the governor, acting through any recipient, complies with certain procedures involving the joint committee on ways and means. This bi ll makes various changes and additions to such process. Present law defines "recipient"" to mean any executive department or agency or other body of the executive branch of state government. This bill expands the definition of ""recipient"" to include the administrative office of the courts, the office of the comptroller of the treasury, and the departments of state and the treasury. Present law generally requires that, prior to applying for or accepting federal aid in an amount less than $25 million that does not create indebtedness for the state, the recipient must notify the joint committee of the application or acceptance. This bill specifies that the notice requirement applies prior to the application and prior to the acceptance. This bill also authorizes the joint committee to hold a hearing to review the application or acceptance of federal aid in an amount less than $25 milli on. Present law generally requires that, prior to applying for or accepting federal aid in an amount of $25 million or more that does not create indebtedness for the state, the recipient must notify the joint committee of the application or acceptance. The joint committee may hold a hearing to review and approve or disapprove the proposed acceptance of the federal aid. The recipient may accept the federal aid if the joint committee approves the proposed acceptance or fails to disapprove the proposed acceptan ce within 30 days of receiving notice from the recipient . The joint committee may apply the notice and opportunity for a hearing requirement for one year to a recipient who fails to comply with the notice requirement for aid in an amount of less than $25 million. This bill clarifies that the notice and oppor tunity for a hearing requirement apply prior to the application or, if an application is not required, prior to the acceptance. Th is bill authorizes the joint committee to either hold a hearing to rev iew the proposed acceptance of the federal aid or issue notice that a hearing will not be held. If a hearing is held, then this bill requires the joint committee to vote to approve or not approve the proposed acceptance of the federal aid. If the joint committee approves the proposed acceptance of the federal aid, then the recipient may accept the federal aid. If the joint committee does not hold a hearing or otherwise fails to disapprove the proposed acceptance within 30 days of receiving notice from th e recipient, then the recipient may accept the federal aid; provided, that, upon agreement of the chairs, the joint committee may extend the 30 -day period up to an additional 30 days . Present law authorized the joint committee to exempt a recipient from the notice and opportunity for hearing requirements applicable to aid in an amount of $25 million or more. This bill adds authorization to exempt a particular proposed acceptance of s uch aid. Present law specifies eight classes of federal aid that are exempt from the notice and opportunity for hearing requirements. However, each recipient is required to report to the joint committee when the recipient applies for federal financial aid in the form of a grant in an amount that is more than $100, 000 . This bill removes the requirement for reporting grant applications that exceed $100, 000, revises the exemption for recurring federal aid, and adds an exemption for fe deral formula grant program fund s for transportation . This bill changes from February 1 to February 15 the deadline for recipient s to annually submit a written report to the joint committee summarizing the amount of funds allocated from federal block grants or other federal funds in the preceding fiscal year ."