ITEM IV C SIMON AND COMPANY INCORPORATED Washington Friday Report

Volume XV, Issue 11 March 15, 2013

awarding of grants will depend ultimately on the FY13 I N S I D E T H I S W EEK Continuing Resolution, but COPS is likely to go forward with the solicitation in April under any circumstances. Remember 1 FY13 CR, COPS, FY14 House and Senate Budgets that COPS Hiring Grants are for a maximum of $125,000 over a 3-year period with a 25% local match and with the grant 2 VAWA, Gun Bills, Brownfields, WRDA, MAP-21 recipient obligated to pay for the fourth year at 100%. Like last year, the COPS office will be seeking applications which give 2 Transit Ridership Surge, Brookings on Rail preference to hiring veterans. This year, there is also a strong possibility that the COPS office will favor applications which give preference to School Resource Officer activities and other Talk about regular order! This week, Washington was in school safety initiatives in light of the Newtown massacre. overdrive – the House and Senate dealing with FY13 and FY14 More on this as the COPS FY13 solicitation proceeds. budgets, the President in search of the Bipartisan Grand Bargain, and lots more. Here’s the highlights for your review. FY14 House and Senate Budget Resolutions

Senate FY13 Continuing Resolution The House and Senate are both at work marking up their respective FY14 budget resolutions, but vast differences Both the House and the Senate have released their respective remain between the two top-line spending measures. House FY13 Continuing Resolutions (CRs) to fund the federal Budget Chairman Paul Ryan released his committee’s plan, th government past March 27 to avoid a shutdown. Last week on which aims to reduce the deficit by $4.6 trillion over a 10-year Wednesday, the House passed its CR (H.R. 933) by a vote of 267 period beginning in FY14. The House plan would continually to 151. All eyes now turn to the Senate, where nearly 100 reduce government spending to achieve a balanced budget in amendments have been filed for the bill. Senate Democrats hope FY23, and those continuing reductions would eventually pay to avoid drawing the ire of House Republicans by not adding on off the national debt by 2050. It would cause more than $4 too many extra provisions that could doom its passage. “We’re trillion worth of spending cuts on top of the deficit reduction watching the amendment process, hoping we don’t get some achieved by the sequester, calls for repeal of the Affordable poison pill,” said House Appropriations Chairman Hal Rogers. Care Act, and overhauls of the tax code. For more, click on Senate Appropriations Chairman Barbara Mikulski and Ranking House Budget Plan. Member Richard Shelby offered an amendment to the House’s CR that adds three more FY13 spending bills: Agriculture, By contrast, Senate Budget Chairman Pat Murray’s plan Commerce-Justice-Science, and Homeland Security. The Senate reduces the deficit by $1.85 trillion over a decade, but includes CR retains the two FY13 spending bills already in the House CR: a combination of spending cuts and revenue increases that she Defense and Military Construction-VA. The other seven proposes to replace the $1.2 trillion, nine-year sequester. Her remaining bills are expected to be covered by a simple continuing sequester replacement plan would add over $600 billion in resolution that mostly extends FY12 spending levels. additional deficit reduction. Both plans start at the top-level Transportation advocates found some good news in the Senate discretionary spending limit of $966 billion for FY14 under the amendment offered by Senator Mikulski, which would restore sequester, but the Senate Democrats’ fix would raise that more than $500 million for surface transportation grant programs spending amount to $1.058 trillion. Lastly, the Senate’s plan administered by the Transportation Department, as called for by would call for $100 billion in new stimulus funds: $50 billion MAP-21. Senate Majority Leader Harry Reid said that we for programs as called for in President Obama’s “Fix it First” should expect a full Senate vote on the CR on Monday. For proposal for transportation and infrastructure spending, $20 more, click on House CR Summary, Senators Mikulski and billion for school infrastructure spending, $10 billion for an Shelby Amendment Summary, or List of Yesterday’s Senate infrastructure bank, and $20 billion split evenly between Amendments to the CR. worker training and other infrastructure investments like waterway dredging. Late yesterday, the Senate Budget COPS Grants Coming Soon Committee approved the Chairman’s budget resolution by a vote of 12-10. It now heads to the Senate floor for a full vote. We've had a number of conversations with the COPS Office For more, click on Senate Budget Plan. in the last several days and the good news we learned is that the chances are strong for solicitation from their office for While we are on the subject of the FY14 budget, a letter was applications for COPS Hiring Grants very soon. The actual sent to the House and Senate Budget committees from a

Washington Friday Report 1 www.simoncompany.com 1660 L Street, N.W.  Suite 501  Washington, D.C. 20036  (202) 659-2229  Fax (202) 659-5234  [email protected] ITEM IV C coalition of local government groups, including the U.S. purpose grants, which provide greater certainty for long-term Conference of Mayors and the National League of Cities, project financing. In addition, the legislation identifies among others. It calls on the House and Senate to maintain the opportunities for waterfront properties and brownfield sites federal tax-exemption on municipal bond interest as a way to help appropriate for clean energy development, allows grant local governments finance projects that grow the nation’s recipients to collect administrative costs, and provides economy. For more, click on Muni Bond Letter to Congress. technical assistance to small, rural, and disadvantaged communities. States would also be eligible for additional Violence Against Women Act Becomes Law targeted funding. Lastly, the bill would reauthorize the program at current levels through FY16. Since the inception of the Thursday last week, President Obama signed the Violence Brownfields Program, EPA has provided approximately $1.5 Against Women Reauthorization Act of 2013 (VAWA) into law billion in grants, which have leveraged $19.2 billion in (PL 113-4). The law strengthens programs and policies meant to additional investment. For more, click on Brownfields prevent domestic and sexual violence and protect victims, Reauthorization. ensuring continued services for victims of domestic violence and sexual assault. It extends funding for VAWA programs from A Senate WRDA Agreement FY14 through to FY18, and includes new protections for all victims of domestic violence, adding protection for tribal victims, Chairman Barbara Boxer and Ranking Member David immigrant victims, and LGBT victims. Packaged along with Vitter of the Senate Environment and Public Works VAWA, the Trafficking Victims Protection Act, which expired in Committee (EPW) have reached an agreement on a Water September 2011, was reauthorized for four years, through to Resources Development Act (WRDA) reauthorization that FY17. For more, click on White House Statement or Sen. Leahy could be marked up in committee as early as Wednesday. Their Statement. draft bill is expected to be released today. The draft bill would prioritize some waterway projects for streamlined Senate Panel Approves Gun Bills environmental reviews, and would create a pilot program that would let the Corps hand off management of some projects to The Senate Judiciary Committee has completed work on four state and local governments. More on WRDA next week! gun violence bills. Most notably, yesterday, it passed Senator Dianne Feinstein’s Assault Weapons Ban of 2013 (S. 150) by a MAP-21 Progress Report party-line vote of 10 to 8. The bill would ban the sale, transfer, and importation of certain “assault weapons” which include a Yesterday, the House Transportation and Infrastructure number of popular semi-automatic assault rifles such as the AR- Committee’s Subcommittee on Highways and Transit held a 15 and the Bushmaster XM15. The bill also limits the magazine hearing “Implementing MAP-21: Progress Report from U.S. capacity of semiautomatic rifles and handguns to 10 rounds. DOT Modal Administrators.” Witnesses included FTA Senator Feinstein said, “Assault weapons and large-capacity Administrator Peter Rogoff and FHWA Administrator Victor magazines have a single purpose—to kill as many people as Mendez. For more, click on Hearing Press Release or Webcast possible, as quickly as possible... It’s time we step up and address and Witness Testimony. this scourge once and for all.” Last week, the same committee approved measures that would expand background checks for Transit Surge gun sales (S. 374) and would reduce gun trafficking (S. 54). For more, click on Sen. Leahy Press Release, Sen. Feinstein Press The American Public Transportation Association (APTA) has Release, or Hearing Website. announced that a record 10.5 billion trips were taken on public transit systems in 2012, the second highest annual ridership The fourth gun violence measure approved by the committee since 1957, despite Hurricane Sandy. This was 154 million earlier this week was Senator Barbara Boxer’s School and more trips than in 2011. In 2012, light rail ridership increased Campus Safety Enhancements Act (S. 146). It was approved by a by 4.5 percent throughout the U.S., large bus systems increased vote of 14 to 4. The bill would authorize $40 million each year by 1 percent, and demand response (paratransit) ridership from FY14 to FY23 through the Secure Our Schools grant increased by 4.5 percent. For more, click on Transit Surge. program, which is administered by the Justice Department’s COPS Office. The program currently receives $30 million a year. Brookings on Rail The bill retains the existing 50 percent local match requirement. For more, click on Secure Our Schools. The Brookings Institution’s Metropolitan Policy Program released its first-ever analysis of U.S. passenger rail ridership Brownfields Reauthorization Bill by region, rather than individual stations or cities. In the report, titled A New Alignment: Strengthening America’s Commitment Senators Lautenberg, Inhofe, Udall, and Crapo have to Passenger Rail, researchers found that Amtrak ridership introduced the Brownfields Utilization, Investment, and Local grew by 55 percent since 1997, faster than other major travel Development Act of 2013, also known at the BUILD Act. It would modes, and now carries over 31 million riders annually, an all- improve the existing EPA Brownfields grant process by time high. For more, click on Brookings Rail Report. increasing the limit for cleanup grants and expanding grant eligibility for certain publicly owned sites and non-profit Please contact Len Simon, Brandon Key, Jen Covino, or Laurel organizations. The bill would authorize EPA to make multi- Halsey with any questions.

Washington Friday Report 2 www.simoncompany.com 1660 L Street, N.W.  Suite 501  Washington, D.C. 20036  (202) 659-2229  Fax (202) 659-5234  [email protected]

ITEM IV C Fresno Council of Governments Monthly State Legislative Report 3/15/2013

AB 8 (Perea !12/3/2012 "1/14/2013-Referred to Coms. on TRANS. and NAT. RES. #1/14/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would provide that the State Air Resources Board (state board), until January 1, 2024, has no authority to enforce any element of its existing clean fuels outlet regulation or other regulation that requires or has the effect of requiring any person to construct, operate, or provide funding for the construction or operation of any publicly available hydrogen fueling station. The bill would require the state board to aggregate and make available to the public, no later than January 1, 2014, and every two years thereafter, the number of vehicles that automobile manufacturers project to be sold or leased, as reported to the state board. This bill contains other related provisions and other existing laws. %

AB 14 (Lowenthal" !12/3/2012 "1/14/2013-Referred to Com. on TRANS. #1/14/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would require the Business, Transportation and Housing Agency to prepare a state freight plan with specified elements to govern the immediate and long-range planning activities and capital investments of the state with respect to the movement of freight. This bill would require the agency to establish a freight advisory committee with various responsibilities in that regard. The initial state freight plan would be submitted to the Legislature, the Governor, and certain state agencies by December 31, 2014, and updated every 5 years thereafter. %

AB 21 (Alejo"&"'$)$* !12/3/2012 #2/14/2013 "2/15/2013-Re-referred to Com. on APPR. #2/15/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would authorize the Department of Public Health to assess a specified annual charge in lieu of interest on loans for water projects made pursuant to the Safe Drinking Water State Revolving Fund, and deposit that money into the Safe Drinking Water Small Community Emergency Grant Fund, which the bill would create in the State Treasury. The bill would authorize the department to expend the money for grants for specified water projects that serve disadvantaged and severely disadvantaged communities, thereby making an appropriation. %

AB 28 (+% -)- !12/3/2012 #3/4/2013 "3/5/2013-Re-referred to Com. on J., E.D., & E. #3/5/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would revise various definitions for purposes of the Enterprise Zone Act and modify specified requirements for designating and administering enterprise zones and G-TEDAs, collectively. The bill would impose new requirements on the Department of Housing and Community Development

Page 1 / 8 pq p g yp with respect to the enterprise zone program and modify department and Franchise Tax Board reporting requirements. This bill contains other related provisions and other existingITEM laws. IV C %

AB 30 (Perea&.$ !12/3/2012 #1/24/2013 "2/13/2013-From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0.) (February 12). Re-referred to Com. on APPR. #2/13/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Existing law authorizes the State Water Resources Control Board, until 2014, to assess a specified annual charge in connection with any financial assistance made pursuant to the revolving fund program in lieu of interest that otherwise would be charged and requires the proceeds generated from the imposition of that charge to be deposited in the State Water Pollution Control Revolving Fund Small Community Grant Fund, along with any interest earned upon the moneys in the grant fund. This bill would eliminate the requirement that the charge remain unchanged until 2014 and instead would authorize the board to assess the charge without change unless the board determines that application of the charge is not consistent with federal requirements regarding the fund, at which time the board would be required to replace the charge with an identical interest rate. This bill would eliminate the prohibition on the deposit of more than $50,000,000 collected by the charge into the grant fund . %

AB 37 (Perea).$')6$ !12/3/2012 "1/14/2013-Referred to Com. on NAT. RES. #1/14/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would require, until January 1, 2017, the lead agency, at the request of a project applicant, to, among other things, prepare a record of proceedings concurrently with the preparation of negative declarations, mitigated negative declarations, EIRs, or other environmental documents for specified projects. Because the bill would require a lead agency to prepare the record of proceedings as provided, this bill would impose a state-mandated local program. This bill contains other related provisions and other existing laws. %

AB 115 (Perea"&"9 !1/14/2013 "3/12/2013-From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (March 12). Re-referred to Com. on APPR. #3/12/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would authorize the State Department of Public Health to fund projects, by grant, loan, or a combination of the two, where multiple water systems apply for funding as a single applicant for the purpose of consolidating water systems or extending services to households relying on private wells, as specified. The bill would authorize funding of a project to benefit a disadvantaged community that is not the applying agency. By authorizing the use of a continuously appropriated fund for new purposes, this bill would make an appropriation. This bill contains other existing laws. %

AB 142 (Perea":':9;&"$<= !1/17/2013 "1/18/2013-From printer. May be heard in committee February 17. #1/17/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered

Page 2 / 8 y y p Dead 1st House 2nd House Conc. ITEM IV C "$Current law creates the Safe, Clean, and Reliable Drinking Water Supply Act of 2012, which, if approved by the voters, would authorize the issuance of bonds in the amount of $11,140,000,000 pursuant to the State General Obligation Bond Law to finance a safe drinking water and water supply reliability program. Current law provides for the submission of the bond act to the voters at the November 4, 2014, statewide general election. This bill would state the intent of the Legislature to enact legislation to amend the Safe, Clean, and Reliable Drinking Water Supply Act of 2012. % >=Water Bill Spot Bill

AB 145 (Perea"&9'?@ !1/18/2013 "1/31/2013-Referred to Coms. on W.,P. & W. and E.S. & T.M. #1/31/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would transfer to the State Water Resources Control Board the various duties and responsibilities imposed on the State Department of Public Health by the California Safe Drinking Water Act. This bill contains other related provisions and other existing laws. %

AB 153 (Bonilla'*;&"<

AB 164 (Wieckowski! !1/23/2013 "1/31/2013-Referred to Com. on L. GOV. #1/31/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would require a lease agreement between a governmental agency undertaking an infrastructure project and a private entity to include performance bonds as security to ensure the completion of the construction of the facility and payment bonds to secure the payment of claims of laborers, mechanics, and materialmen employed on the work under contract. %

AB 179 (Bocanegra%;$ information. !1/24/2013 "1/31/2013-Referred to Com. on TRANS. #1/31/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Existing law prohibits a transportation agency from selling or providing personally identifiable information of a person obtained through the person's participation in an electronic toll collection system or use of a toll facility that uses an electronic toll collection system. This bill would

Page 3 / 8 yy y make these and other related provisions applicable to a transportation agency that employs an electronic transit fare collection system for payment of transit fares. The bill wouldITEM require IV C transportation agencies that obtain personally identifiable information of a person from electronic toll collection or electronic transit fare collection systems to discard that information after 6 months, as specified. This bill contains other related provisions and other existing laws. %

AB 204 (Wilk9+ !1/30/2013 "1/31/2013-From printer. May be heard in committee March 2. #1/30/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Current law establishes the Department of Motor Vehicles. Current law provides for the registration of vehicles by the Department of Motor Vehicles, including the imposition of various fees and requirements in connection with registration. This bill would express the intent of the Legislature to enact legislation to impose a fee in conjunction with registration on green vehicles to address the costs of those vehicles using public roads and highways. %

AB 243 (Dickinson#- !2/6/2013 "2/15/2013-Referred to Com. on L. GOV. #2/15/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would authorize a district to finance projects in redevelopment project areas and former redevelopment project areas and former military bases. The bill would authorize a city to form a district to finance a project or projects on a former military base, if specified conditions are met. The bill would provide that the formation of the district and the issuance of debt by such a district on land of a former military base that is publicly owned is not subject to voter approval, as specified. This bill contains other related provisions. % >=This bill would authorize the creation of an infrastructure and revitalization financiing district and the issuance of debt with 55% voter approval. The bill would authorize a district to finance projects in RDA project areas, former redevelopment project areas and former military bases if special conditions are met. The bill would authroize a district to fund various projects including: highways, interchanges, ramps and bridges, arterial streets, parking facilities, and transit faciliites.

AB 668 (Gray) !2/21/2013 "3/4/2013-Referred to Com. on J., E.D., & E. #3/4/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would require any county or city and county with an unemployment rate above ____% for a period of ____ months to be declared an economic disaster area. This bill would require a county or city and county that is designated an economic disaster area to receive priority consideration when the state is making a determination on where to expend state funds with respect to any state contract or award, public works project, bond-financed project, acquisition of real estate, or capital project. %

AJR 6 (FoxO$ !1/28/2013 "2/15/2013-Referred to Com. on TRANS. #2/15/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc.

Page 4 / 8 "$Would request the Federal Aviation Administration to consider CaliforniaITEM as one IV Cof the 6 planned test sites for unmanned aircraft systems and integration of those systems into the next generation air transportation system. %

SB 1 (Steinberg";'!$ !12/3/2012 "3/13/2013-From committee: Do pass and re-refer to Com. on T. & H. (Ayes 4. Noes 2.) (March 13). Re-referred to Com. on T. & H. #3/13/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$ The bill would require the Sustainable Communities Investment Authority to adopt a Sustainable Communities Investment Plan for a Sustainable Communities Investment Area and authorize the authority to include in that plan a provision for the receipt of tax increment funds provided that certain economic development and planning requirements are met. The bill would authorize the legislative body of a city or county forming an authority to dedicate any portion of its net available revenue, as defined, to the authority through its Sustainable Communities Investment Plan. The bill would require the authority to contract for an independent financial and performance audit every 5 years. This bill contains other related provisions and other existing laws. %

SB 7 (Steinberg%;@ !12/3/2012 #2/19/2013 "3/13/2013-From committee: Do pass and re-refer to Com. on APPR. (Ayes 3. Noes 1.) (March 13). Re-referred to Com. on APPR. #3/13/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would prohibit a charter city from receiving or using state funding or financial assistance for a construction project if the city has a charter provision or ordinance that authorizes a contractor to not comply with prevailing wage provisions on any public works contract. The bill would, except as specified, prohibit a charter city from receiving or using state funding or financial assistance for a construction project for up to 2 calendar years if the city has, after January 1, 2014, awarded a public works contract without requiring the contractor to comply with prevailing wage provisions. This bill would require the Director of Industrial Relations to maintain a list of charter cities that may receive and use state funding and financial assistance for their construction projects. %

SB 11 (Pavley !12/3/2012 "3/14/2013-Re-referred to Coms. on E.Q. and T. & H. #3/14/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would provide that the State Air Resources Board (state board), until January 1, 2024, has no authority to enforce any element of its existing clean fuels outlet regulation or other regulation that requires or has the effect of requiring any person to construct, operate, or provide funding for the construction or operation of any publicly available hydrogen fueling station. The bill would require the state board to aggregate and make available to the public, no later than January 1, 2014, and every two years thereafter, the number of vehicles that automobile manufacturers project to be sold or leased, as reported to the state board. The bill, no later than July 1, 2013, would require the state board and air districts to jointly convene working groups to evaluate the specified policies and goals of specified programs. This bill contains other related provisions and other existing laws. %

SB 15 (Padilla$ !12/3/2012

Page 5 / 8 "1/10/2013-Referred to Com. on RLS. ITEM IV C #1/10/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would state the intent of the Legislature to enact legislation that would establish appropriate standards for the use of unmanned aircraft systems. %

SB 33 (Wolk! !12/3/2012 #3/6/2013 "3/13/2013-From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 1.) (March 13). Re-referred to Com. on APPR. #3/13/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would revise and recast the provisions governing infrastructure financing districts. The bill would eliminate the requirement of voter approval for creation of the district and for bond issuance, and would authorize the legislative body to create the district subject to specified procedures. The bill would instead authorize a newly created public financing authority, consisting of 5 members, 3 of whom are members of the city council or board of supervisors that established the district, and 2 of whom are members of the public, to adopt the infrastructure financing plan, subject to approval by the legislative body, and issue bonds by majority vote of the authority by resolution. This bill contains other related provisions and other existing laws. %

SB 34 (Rubio*; !12/3/2012 #2/15/2013 "2/25/2013-Hearing postponed by committee. (Refers to 2/25/2013 hearing) #2/15/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would, upon the adoption by the State Air Resources Board of a final methodology for carbon capture and storage projects seeking to demonstrate geologic sequestration of greenhouse gases, specifically would require the Division of Oil, Gas, and Geothermal Resources of the Department of Conservation to regulate carbon dioxide enhanced oil recovery projects that seek to demonstrate carbon sequestration under various laws providing for the reduction of greenhouse gas emissions. This bill contains other related provisions and other existing laws. %

SB 110 (Steinberg'' !1/14/2013 "3/12/2013-Set for hearing April 2. #1/24/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would establish specified procedures that the California Transportation Commission would be required to utilize when it adopts guidelines, except as specified, and would exempt the adoption of those guidelines from the requirements of the Administrative Procedure Act. This bill contains other existing laws. %

SB 787 (Berryhill9).$";)% !2/22/2013 "3/11/2013-Referred to Coms. on E.Q. and JUD. #3/11/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered

Page 6 / 8 y y p Dead 1st House 2nd House Conc. ITEM IV C "$Would enact the Sustainable Environmental Protection Act and would specify the environmental review required pursuant to CEQA for projects related to specified environmental topical areas. For a judicial action or proceeding filed challenging an action taken by a lead agency on the ground of noncompliance with CEQA, the bill would prohibit a cause of action that (1) alleges noncompliance with CEQA based on any topical area or criteria for which compliance obligations are identified or (2) challenges the environmental document based on noncompliance with CEQA if: (A) the environmental document discloses compliance with applicable environmental law, (B) the project conforms with the use designation, density, or building intensity in an applicable plan, as defined, and (C) the project approval incorporates applicable mitigation requirements into the environmental document. This bill contains other related provisions and other existing laws. %

SCA 4 (Liu#QT !12/3/2012 "2/14/2013-Referred to Coms. on GOV. & F. and RLS. #2/14/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would provide that the imposition, extension, or increase of a special tax by a local government for the purpose of providing funding for local transportation projects requires the approval of 55% of its voters voting on the proposition. The measure would also make conforming and technical, nonsubstantive changes. %

SCA 6 (DeSaulnier! !12/3/2012 "2/28/2013-Set for hearing March 19. #2/7/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would prohibit an initiative measure that would result in a net increase in state or local government costs, other than costs attributable to the issuance, sale, or repayment of bonds, from being submitted to the electors or having any effect unless and until the Legislative Analyst and the Director of Finance jointly determine that the initiative measure provides for additional revenues in an amount that meets or exceeds the net increase in costs. %

SCA 8 (CorbettQT !12/14/2012 "2/14/2013-Referred to Coms. on GOV. & F. and RLS. #2/14/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would provide that the imposition, extension, or increase of a special tax by a local government for the purpose of providing funding for transportation projects requires the approval of 55% of its voters voting on the proposition. The measure would also make conforming and technical, nonsubstantive changes. %

SCA 9 (Corbett#T !12/18/2012 "2/7/2013-Referred to Coms. on GOV. & F. and E. & C.A. #2/7/2013- 2Year Desk Policy Fiscal Floor Desk Policy Fiscal Floor Conf. Enrolled Vetoed Chaptered Dead 1st House 2nd House Conc. "$Would provide that the imposition, extension, or increase of a special tax by a local government for the purpose of providing funding for community and economic development projects,

Page 7 / 8 ITEM IV C

There were 2,296 bills (SBs, ABs, ACA, AJRs, etc) introduced before the Feb 22nd deadline. Many are still "spot" or intent bills. FCOG will identify bills that are of interest to regional governments when more detail is available.

Page 8 / 8 ITEM IV C SIMON AND COMPANY INCORPORATED Washington Friday Report

Volume XV, Issue 10 March 8, 2013

each two-week pay period, starting April 7. We’ll do our best I NSIDE T HIS W EEK to keep you up to date as more information unfolds. For more, click on OMB’s 83-page Report to Congress, CBPP Estimated 1 Sequestration, FY13 Continuing Resolution Cuts in FY13 Federal Housing Programs, OMB Sequestration Order to Agency Heads, or President Obama’s official FY13 2 FY14 Budget, USCM Leadership Meetings sequestration order.

2 Gun Trafficking, WRDA, Cabinet, Baby Maxwell FY13 Continuing Resolution

On Wednesday, by a vote of 267-151, the House passed the Any week where sequestration begins, a non-snowstorm closes Department of Defense, Military Construction and Veterans the federal government and our own Stephanie’s baby is born is Affairs, and Full-Year Continuing Appropriations Act (H.R. a week to remember! Here’s the highlights for your review. 933) a continuing resolution (CR) that would fund the federal government beyond March 27, through to September 30, the The Impact of Sequestration end of FY13. Along with extending funding, it also packages two full-year spending bills for FY13, covering Defense and With sequestration now in effect, and no action expected to Military Construction-VA. Notably, the amount of money avert the across-the-board cuts in FY13, we thought it would be appropriated in the CR takes into account and continues the prudent to summarize the information that we sent out to you on sequestration cuts for the remainder of FY13. The bill’s total the topic since March 1 in today’s Friday Report. The White topline discretionary spending is approximately $984 billion. It House Office of Management and Budget (OMB) has announced provides the Defense Department and Veterans Affairs an FY13 cut of approximately 5 percent for non-defense department some flexibility in dealing with sequestration, by discretionary programs and 7.8 percent for defense discretionary shifting $10.4 billion to the operations and maintenance programs. OMB is providing agencies considerable discretion on budget. Most agencies, besides Defense and Veterans Affairs, how they implement the sequestration. For example, agencies would continue to operate at FY12 spending amounts, minus may consider delaying awarding of new financial assistance the sequestration cuts. For more, click on House FY13 CR obligations, reducing levels of continued funding, and Summary or White House Statement on the FY13 CR. renegotiating or reducing the current scope of assistance. Agencies may also be forced to reduce the level of assistance Initially, it was thought that the Democrat-controlled Senate provided through formula funds or block grants. For more, click would respond by offering an omnibus spending package on February 27 Pre-Sequestration Memo to Agencies. which would include controversial spending FY13 spending bills for all the other federal agencies. As we learned yesterday Subsequently, on March 1, OMB and the White House released afternoon, Senate Appropriations Chair Barbara Mikulski additional information that indicates how sequestration will be said that, instead, her chamber will move forward on implemented, and what it means to individual programs of integrating three less-controversial spending bills to the CR: concern. The most important document is an 83-page OMB report Agriculture, Homeland Security, and Commerce-Justice- to Congress detailing reductions by budget account. Here is a Science. She said, “I understand, no poison-pill riders, no cute sampling of just a few of the programs, and their corresponding little gimmicks, but focusing on funding which goes to meeting FY13 reductions, in dollars: CDBG - $147 million sequestered, the needs of our national security, compelling needs. We’ve got leaving an estimated $2.8 billion in FY13; HOME - $50 million a shot at creating jobs and investment in science.” sequestered, leaving an estimated $956 million remaining in FY13; COPS Grants - $8 million sequestered, leaving an Prior to this, House Speaker John Boehner warned the estimated $155 million remaining in FY13; and Capital Senate “not to get greedy and get carried away and try to put Investment Grants, which is (New Starts and Small Starts) - $96 forward the possibility of a government shutdown” by adding million sequestered, leaving an estimated $1.83 billion in FY13. too many additional controversial spending provisions to the While the 83 pages tells a more complete story, the pace of bill. Senate Majority Leader Harry Reid, plans to begin debate reductions and the specific manner in which those reductions will on his chamber’s version of the CR on March 11. be administered is still to come. For instance, many Federal Aviation Administration (FAA) employees are just now Lastly, on Tuesday, Senators Barbara Boxer, Tim Johnson, beginning to receive their 30-day furlough notices via e-mail, and Jay Rockefeller sent a letter to Speaker Boehner urging which requires them to begin taking a one-day unpaid furlough him to uphold a bicameral agreement to maintain funding and

Washington Friday Report 1 www.simoncompany.com 1660 L Street, N.W.  Suite 501  Washington, D.C. 20036  (202) 659-2229  Fax (202) 659-5234  [email protected] ITEM IV C to oppose cuts for transportation programs included in the FY13 the practice of straw purchasing and trafficking of firearms. All CR. Failing to uphold the agreement, they say, would mean a of the Committee’s Democrats and Republican Ranking funding cut of $785 million to surface transportation programs in Member Chuck Grassley voted in favor of the measure. The FY13. While the House has already passed its own version of the bill (S. 54) now goes to the Senate floor for a vote by the whole CR, there is still a chance that at least some of this lost chamber. The Committee plans to consider action on additional transportation funding may be restored when the House and gun bills on March 12. For more, click on Press Release or Senate form a conference committee to resolve the differences in Hearing Website. their planned CR bills. For more, click on Senators’ Transportation Letter. WRDA Coming Soon?

USCM Leadership Meetings Senate Environment and Public Works Committee Chairman Barbara Boxer said she expects her committee will mark up a We had the fairly extraordinary opportunity to sit in on WRDA bill in the next couple weeks, possibly on March 20. It meetings last Wednesday-Friday between the leadership of the will differ from the draft bill she released late last year and has U.S. Conference of Mayors and top leaders in the House, Senate not yet been made public. House Transportation and and White House. The meetings were so unique because they Infrastructure Chairman Bill Shuster wants to get a bill done occurred right on the eve of the sequester. this year but is on a slower schedule than his Senate counterpart. As a new Chairman, he has more work to do, such On Wednesday night we met with Secretary of Transportation as hearings and meetings with stakeholders, before drafting a Ray LaHood, who is departing the Cabinet as soon as a bill and shepherding it out of his Committee. successor is in place. Secretary LaHood received the prestigious USCM President’s Award for the great work of his department Obama’s FY14 Budget Slips Further during his tenure and the strong bond he forged with Mayors. In his remarks upon receipt of the award, he noted that it might be We learned yesterday that the White House is informing easier to solve the nation’s problems “If every member of Congress not to expect its FY14 budget proposal prior to April Congress would take their cue from what you do.” He also said to 8. This is two months later than the normal submission and two the Mayors, “This has been the best job I ever had…because of weeks after the most recent estimate of when it would be you…I feel like every one of you is a friend.” unveiled. It is late, of course, because FY13 still is not settled.

The next day we met with House Minority Leader Nancy New Cabinet Appointments Pelosi, Budget Committee Ranking Minority Member Chris Van Hollen, House Democratic Caucus Chairman Xavier Becerra, On Monday, President Obama appointed three people to fill House Urban Caucus Chair Chaka Fattah, and Rep. Mike important posts in his second-term cabinet. First, he nominated Thompson, who is leading the Democratic Caucus efforts on gun MIT physicist Dr. Ernie Moniz to become the next Energy violence. They each briefed the Mayors and discussed with them Secretary, replacing outgoing Secretary Stephen Chu. Second, the big 5 issues: Sequester, the Marketplace Fairness Act, he nominated Gina McCarthy to become the next EPA Municipal Bonds, Gun Violence, and Immigration. Administrator, replacing outgoing Administrator Lisa Jackson. Ms. McCarthy currently serves as the head of EPA’s air office The Mayors then shifted over to the Senate side where they met and she has been on the forefront of the agency’s fight to enact and discussed the same issues with Senators Mark Begich, head greenhouse gas regulations on sources like vehicle tailpipes of the Democratic Policy Committee, and Senators Debbie and power plants. Third, he nominated Sylvia Matthews Stabenow, Tammy Baldwin, Tom Udall, Sheldon Whitehouse, Burwell to become the next Director of the Office of Ben Cardin, and Mo Cowan. Management and Budget (OMB), replacing Acting Director Jeffrey Zients, who is expected to be named U.S. Trade The next day, the Mayors met with White House Senior Representative. She heads the Walmart Foundation, and Adviser Valerie Jarrett who briefed the Mayors on the sequester worked for the Gates Foundation and served as deputy and listened to their strong opposition to any capping of the tax director of OMB during the Clinton administration under Jack exemption of municipal bonds. Finally, Deputy Secretary of Lew. For more, click on New Cabinet Appointments. Transportation John Porcari discussed with the Mayors what would and what would not occur in transportation programs Introducing Maxwell McIntosh! during the sequester. We are delighted to report to you that last week, on Thank you Mayors Paul Soglin of Madison, Ralph Becker of Thursday, our long-time office manager Stephanie and her Salt Lake City, and Greg Fischer of Louisville for the privilege husband Marc welcomed their son Maxwell Carter McIntosh of tagging along! into the world at 1:24pm. He weighed 7 lbs. 13 oz. and is in great health. We wish Stephanie and her growing family all the Gun Trafficking Bill best and can’t wait to say hello to little Maxwell!

Yesterday, the Senate Judiciary Committee approved legislation Please contact Len Simon, Brandon Key, Jen Covino, or Laurel authored by Chairman Patrick Leahy and co-authored by Sen. Halsey with any questions. Susan Collins that would for the first time explicitly make illegal

Washington Friday Report 2 www.simoncompany.com 1660 L Street, N.W.  Suite 501  Washington, D.C. 20036  (202) 659-2229  Fax (202) 659-5234  [email protected]

ITEM IV C SIMON AND COMPANY INCORPORATED Washington Friday Report

Volume XV, Issue 09 March 1, 2013

of deal at this point will probably be in connection with a I NSIDE T HIS W EEK “CR” or Continuing Resolution for federal spending, which must be enacted by March 28. We will keep you up to date on 1 Sequestration, FY14 Budget, Gun Violence any new developments related to these across-the-board spending cuts, and will continue to work with you regarding 2 Marketplace, Immigration, Federal Investments information on potential impacts to your community. For more, click on State-by-State Impacts of Sequestration. 2 Workforce Investment, Infrastructure, Poverty Obama Administration Budget – Late March

Sequestration is here – see below! We had the chance to meet As we reported to you earlier, the Obama Administration’s with an amazing number of Congressional and Administration FY14 budget proposal is expected to be released much later leaders this week to talk about it during USCM Leadership than usual. Some on Capitol Hill had been expecting a release meetings. More on that next week. Meanwhile, here’s some of March 11 or 18. But, since the budget proposal will surely important highlights for your review. not be released before the House and Senate independently act on their respective budget resolutions next month, Federal Spending Cuts Imminent administration officials have been told to prepare for a March 25 budget release. The deadline for the House and Senate to President Obama has until 11:59 PM Eastern Time tonight to agree on a joint budget resolution is April 15. We will keep you order the Office of Management and Budget (OMB) to issue the updated on any new developments. official notice to federal agencies that starts the sequestration process. Simultaneously, OMB will transmit a report to Congress Senate Hearing on Gun Violence detailing cuts in every affected agency’s budget account. According to the most recent estimates from the Center on On Wednesday, the Senate Judiciary Committee held its Budget and Policy Priorities, a total of $85.3 billion in automatic fourth hearing since January 30th on gun violence issues. spending cuts will be ordered for the remainder of FY13. This Senator Dianne Feinstein presided over the hearing. The represents the corresponding cuts in the following spending committee began consideration of four proposals related to gun categories: Defense Discretionary – 7.7%, Defense Mandatory – violence: (1) universal background checks, (2) school safety, 7.8%, Non-defense discretionary (including most HUD housing (3) gun trafficking, and (4) an assault weapons ban. If a programs, CDBG, HOME, TIGER, COPS, Byrne Justice comprehensive bill is put together combining several Assistance Grants, Head Start, airport security programs, FDA, proposals, it is not likely to include the assault weapons ban. NASA, the federal prison system, and most competitive grant The ban will likely be considered as its own bill, or may be programs) – 5.3%, Medicare – 2.0%, and Other non-defense proposed as an amendment on the Senate floor. mandatory – 5.3%. About 3.8 million long-term unemployed workers receiving federally funded unemployment benefits are The proposals were set to be marked-up by the Committee estimated to face a nearly 11 percent cut in their weekly benefits, during the hearing, but Chairman Pat Leahy announced that according to the Administration, a cut of about $130 per month. the markup is now postponed until March 7, since negotiations Nationally, an estimated 100,000 low-income families will likely are still ongoing. In his statement, Chairman Leahy said, lose HUD housing vouchers. “There is no one proposal that will prevent another tragedy. But the fact that we cannot do everything should not prevent us The President plans to meet with leaders from the House and from doing anything.” Several witnesses provided testimony. Senate at the White House today, if he hasn’t already done so by Philadelphia Mayor and U.S. Conference of Mayors President the time we went to press on the Friday Report. This will be Michael Nutter said, “We [Mayors] have made passage of the President Obama’s first face-to-face meeting with Congressional Assault Weapons Ban our top priority and that is the bill I am leaders to discuss sequestration. However, it seems nothing short here to discuss this morning… Every day in America, 282 of a miracle can stave off the initiation of the planned cuts at this people are shot and 86 of the die, including 32 who are point. Individual measures pushed separately by Democrats and murdered…” Republicans yesterday did not pass in the Senate. As we suggested in our last report, Congress and the White House could During the hearing, when Senator Lindsey Graham allow the cuts to be implemented for at least a few days before suggested that governments ought to spend more time deciding to postpone or delay them, but the prospects of any kind prosecuting those who lie on background check forms,

Washington Friday Report 1 www.simoncompany.com 1660 L Street, N.W.  Suite 501  Washington, D.C. 20036  (202) 659-2229  Fax (202) 659-5234  [email protected] ITEM IV C Milwaukee Police Chief Edward Flynn gained some media help the middle class right now, they will help lay down a attention when he interrupted the Senator, saying, “I want to stop strong foundation for long-term and broad based economic 76,000 people from buying guns illegally, that’s what a growth and they will help position our country and our background check does. If you think we’re going to do paperwork economy to compete and win in the 21st century global prosecutions, you’re wrong... We have priorities… We make economy.” Witness testimony was provided by U.S. DOT 2,000 gun cases a year Senator, that’s our priority. We’re not in a Under Secretary for Policy Polly Trottenberg, among others. paper chase.” The most emotionally powerful testimony came For more, click on Impact of Federal Investments. from Neil Heslin, the father of Jesse Lewis, who died in the Newtown massacre. He said, “If keeping those unnecessary Reforming the Workforce Investment System [assault] weapons off the street would have let one more of those children leave that school building, it might have been my Jesse. The House Subcommittee on Higher Education and If Adam Lanza had been able to shoot just one fewer bullet, Workforce Training held a hearing called Putting America maybe my son would be with me today.” For more, including a Back to Work: Reforming the Nation’s Workforce Investment webcast, click on Senate Gun Violence Hearing. System where members discussed a number of legislative proposals intended to address flaws in federal job training Opposition to Marketplace Fairness Wanes programs, including the Supporting Knowledge and Investing in Lifelong Skills (SKILLS) Act. The bill would reauthorize the Politico is reporting that opposition to the Marketplace Fairness Workforce Investment Act, which has not been reformed since Act (MFA) is waning, especially among representatives of the 2003. For more, click on Workforce Investment Reform. tech industry. Gary Shapiro, President and CEO of the Consumer Electronics Association, which switched its position Infrastructure Bank Bill Introduced last year in order to support the MFA, said, “It’s a legacy issue [for tech]. The industry is neutral to sympathetic to the cause of Senators Frank Lautenberg of New Jersey and Jay the federal bill.” The new MFA of 2013, which was introduced Rockefeller of West Virginia introduced the American on February 14, has among its supporters: state and local Infrastructure Investment Fund Act of 2013. The bill would government organizations, Amazon.com, the Retail Industry establish a $5 billion fund that would incentivize private, State, Leaders Association, the National Retail Federation, and and regional investments in transportation projects around the AFSCME. Several tech industry groups remain opposed, such as country by providing eligible products with financial eBay, Overstock.com, the Information Technology Industry assistance. This fund, also known as an infrastructure bank, Council, Technet, and the Computer & Communications Industry would be administered by the DOT, and would be designed to Association, but the only concrete action most of those groups leverage federal dollars to incentivize private investment in have taken so far has come in the form of a press release. Other transportation projects for both FY14 and FY15. Eligible types issues, such as pressuring the federal government to expand H-1B of projects would include rail lines, marine ports, pipelines, visas, take precedence. For more, click on Opposition the airports, highways, bridges, public transportation systems, and Marketplace Fairness Wanes. other transportation-related projects. Future eligible infrastructure projects could include telecommunications, AFL-CIO & U.S. Chamber Collaborate on Immigration energy, and water. Lastly, the bill would authorize a multimodal National Infrastructure Investment Grant program In another positive development for the prospects of within DOT at $600 million for FY14 and the same amount for immigration reform this year, the U.S. Chamber of Commerce, FY15, which would provide funds to build new or improve the nation’s most prominent pro-business group, and the AFL- existing transportation infrastructure. For more, click on CIO, one of nation’s most powerful labor organizations, released Infrastructure Bank Press Release or One-Page Summary. a joint statement of shared principles on immigration reform. They said, “Over the last months, representatives of business and New Task Force on Poverty and Opportunity labor have been engaged in serious discussions about how to fix the system in a way that benefits both workers and employers, House Democratic Whip Steny Hoyer created a new task with a focus on lesser-skilled occupations.” For more, click on force on Poverty and Opportunity and appointed California Joint Statement on Immigration Reform. Rep. Barbara Lee to serve as its chair. The Task Force will work to raise the awareness of Members of Congress and the Impact of Federal Investments on Communities American people about the ongoing crisis of poverty, as well as the need for a comprehensive national effort to eradicate Senator Patty Murray of Washington, Chair of the Budget poverty and remove barriers to opportunity that prevent low- Committee, held a hearing on the impact of federal investments income Americans from reaching the middle class. We have on families, communities, and long-term and broad-based had the opportunity to work extensively with Congresswoman economic growth. The hearing covered education and job Lee and her staff for many years and look forward to updating training; developing and repairing America’s national you on the work of the Task Force on Poverty and Opportunity. infrastructure; and investing in research and development to boost For more, click on Poverty and Opportunity Task Force. innovation and national competitiveness. This hearing came days before automatic across-the-board cuts from sequestration began Please contact Len Simon, Brandon Key, Jen Covino, or Laurel to be implemented. In her opening statement, Senator Murray Halsey with any questions. said, “I believe smart federal investments will create jobs and

Washington Friday Report 2 www.simoncompany.com 1660 L Street, N.W.  Suite 501  Washington, D.C. 20036  (202) 659-2229  Fax (202) 659-5234  [email protected]