The Barbed Wire - April 3, 2020

RCRC Urges Direct Federal Funding to Rural Counties for Coronavirus Response

This week, RCRC submitted a letter to U.S. House of Representatives Speaker Nancy Pelosi (D-San Francisco) urging the inclusion of direct federal funding to smaller counties on the forthcoming coronavirus (COVID-19) response bill. Specifically, RCRC urges the inclusion of direct stabilization funding to localities with populations under 500,000, or to lower the threshold for direct funding through the Coronavirus Response Fund, of which there are more than 30 of California’s 58 counties. RCRC’s letter to Speaker Pelosi can be accessed here.

RCRC member counties believe that without targeted stabilization funding, counties will not be able to provide critical services to its residents who face enormous costs when responding to the current pandemic. The direct funding to smaller counties in future relief packages is essential and much-needed to keep California’s rural residents safe while stopping the rapid spread of COVID-19.

Also, during a White House Briefing call earlier this week, Counselor to the Secretary of the Treasury Daniel Kowalski spoke about the implementation of CARES Act relief funds. He spoke at length about the specific mechanisms that states, counties, and local governments can use to receive the appropriated funds, specifically discussing the population threshold for eligibility. He stated that while Treasury is still “thinking through the current threshold requirement” of needing a population above 500,000 in order to be eligible, he eluded to a letter sent from the National League of Cities which called for an alternative interpretation of the statutes’ language. Mr. Kowalski added that Treasury is in the process of deliberating this alternative interpretation and will provide a final determination when the official guidelines are posted on their website shortly.

Bill of the Week: Assembly Bill 2612 (Maienschein) – Greenhouse Gas Reduction Fund: Appropriation

RCRC has joined Los Angeles County and the California State Association of Counties to co-sponsor Assembly Bill 2612, authored by Assembly Member Brian Maienschein (D-San Diego). AB 2612 would continuously appropriate $200 million annually from the sale of carbon allowances to help meet the state’s ambitious solid and organic waste recycling goals.

The allocation of the $200 million annual investment includes:

• $100 million to in-state solid waste recycling projects, with a dedicated $10 million made available to cities and counties for beverage container recycling and litter clean-up activities; and,
• $100 million to in-state organic waste recycling projects, with a dedicated $50 million made available to local agencies for organic waste management and implementation.

Through cost-effective investments in infrastructure expansion, market development, technology upgrades to increase the quality of recycled materials, and implementation assistance for local agencies, AB 2612 would help create additional jobs throughout the state, help the state better manage its waste without depending upon foreign markets with less stringent environmental safeguards, and reduce pressure to increase local trash rates.

RCRC’s support letter can be accessed here. AB 2612 awaits consideration in the Assembly Natural Resources Committee. For more information, John Kennedy, Legislative Advocate, can be reached at (916) 447-4806 or jkennedy@rcrcnet.org.

Secure Rural School Payments in the Mail

On Tuesday, the United States Department of Agriculture’s Forest Service (USFS) distributed Secure Rural Schools & Community Self-Determination Act (SRS) monies to states. California received approximately $26.1 million (not including Title II funds) in payments.

In 2000, Congress enacted SRS to provide funding for rural counties and school districts to replace revenue from dwindling forest receipts due to a national decline in timber harvesting. When first enacted, SRS provided nearly $60 million annually to California’s forested counties, with half of the funding allocated to school districts, and half of the funding allocated to counties for county roads.

SRS initially expired in 2006, but has been reauthorized multiple times albeit with program funding reductions. SRS payments were most recently reauthorized for a two-year authorization (Fiscal Years 2019 and 2020) as part of the $1.37 trillion Further Consolidated Appropriations Act of 2020 package. States should receive the released funds within 5-7 business days.

The USFS news release regarding distribution of SRS payments can be accessed here. Detailed USFS Federal SRS payment reports, including Title II funds, can be accessed here.

RCRC continues to advocate for a permanent solution to SRS funding rather than lobbying Congress every year to reauthorize and fund. As such RCRC is supporting legislation by Senator Ron Wyden (D-Oregon) and Senator Mike Crapo (R-Idaho) – known as the Forest Management for Rural Stability Act - which would make permanent the SRS program by creating an endowment fund to ensure forest counties receive stable, long-term payments not subject to the annual appropriations process.

Governor Newsom Addresses Challenges to Distance Learning in Rural Areas

On Wednesday, Governor Newsom announced a partnership with Google to distribute Chromebook computers and mobile hotspots to assist students in rural areas struggling with distance learning during the COVID-19 related school closures. Google has committed to funding the equipment and service for 100,000 mobile hot-spots through the end of the school year, which will allow students in homes without dedicated broadband service to connect to the internet.

The Governor also announced an agreement between the statewide teacher associations, employee labor organizations, and education facility groups on a framework for distance learning, special education and meal delivery for students throughout the state. The Governor’s press release can be found here.

On March 4, 2020 the Governor issued an Executive Order allowing school districts to receive continued funding during COVID-19 related school closures and directed that the money be utilized for distance learning and associated support for continued education. By March 17th, the Administration reported that ninety-nine percent of all public schools were closed, leaving six million students, nearly 700,000 in RCRC member counties, without a physical classroom for education. On March 19th the Governor issued a statewide shelter-in-place order, effectively closing all schools in the state. Through discussion with the Administration, RCRC staff has advocated for mitigation strategies, including a mobile hotspot lending program, to assist students that lack reliable internet access. RCRC will continue to advocate for additional support for student and teachers in member counties that are unable to utilize distance learning due to lack of broadband connectivity.

Small Business Sales Tax Payment Deferral Proclaimed by the Governor

On Thursday, Governor Newsom announced he has directed the California Department of Tax and Fee Administration (CDTFA) to allow businesses with sales of $5 million or less to defer remittance of their sales and use taxes for up to one year to July 2021. It is estimated there are 300,000 filers that would be eligible to defer up to $50,000. Initial estimates anticipate a statewide “loss” of $3 billion in state and local sales taxes over the duration of the deferral. Of concern is how the time period of this deferral would affect the final fiscal quarter for 2020, and the impact it will have on low-population counties. Sales taxes provide a significant source of revenue for cities and counties, and fund both 1991 and 2011 county realignment programs as well as a number of local priorities, including transportation.

RCRC is joining its local government partners to pose a number of questions about the scope and process associated with the Governor’s plan. At the time of this writing, no Executive Order has been issued, nor legislative language proposed.

California Department of Fish and Wildlife Issues Permit to the Department of Water Resources for Long-Term Operations of the State Water Project

On Tuesday, the California Department of Fish and Wildlife (CDFW) and the Department of Water Resources (DWR) announced the issuance of an Incidental Take Permit (ITP) for the long-term operation of the State Water Project (SWP).

Providing water to more than 27 million people and irrigating three-quarters of a million acres of farmland in California, the SWP balances the needs of water supply and protection of the environment. In past years, DWR relied on federal biological opinions (BiOps) for coverage of the SWP operations. DWR pursued a separate ITP from CDFW in order to ensure SWP compliance with the California Endangered Species Act (CESA) based on real-time conditions in the ecosystem of the Delta and the needs of Californians, regardless of any changes to the federal BiOps.

The full announcement is available here.

RCRC Submits Cannabis Appellations Comments to the CDFA

This week, RCRC sent a letter to CalCannabis, the licensing entity for cannabis cultivators within the California Department of Food and Agriculture (CDFA), on its formal rulemaking for the creation of a Cannabis Appellations of Origin program. Senate Bill 94 (2017) required CDFA to establish a process for Cannabis Appellations of Origin by January 1, 2021. Appellations are a legally protected labeling system designed for consumers to understand where a product was produced and with what standards or characteristics the industry has employed. A robust appellations system is envisioned to ward off the commoditization of cannabis and thus provide a vibrant economy for growers, manufacturers, and distributors, as well as support consumer confidence, and ultimately provide the tax revenue voters intended for youth programs, environmental cleanup, and public safety through the passage of Proposition 64 (2016).

More information on Cannabis Appellations can be found here. RCRC’s letter, which is the result of RCRC’s participation in the working group that was convened by CalCannabis, can be accessed here.

CDFA to Release Funding Allocations for Fairgrounds

On Monday, the Governor signed an Executive Order that provided an array of tax and regulatory relief for small businesses, as well as suspended certain workforce requirements for Fair Boards in order to allow needed funding to go to fairgrounds during the State Emergency relating to COVID-19. In November 2019, the California Department of Food and Agriculture (CDFA) initiated long-awaiting rulemaking on how to allocate revenues collected in the state’s Fair and Exposition Fund to qualified fairs and fairgrounds pursuant to the 2017 enactment of Assembly Bill 1499 (Gray) - legislation which RCRC fully supported. To date, over $20 million has been collected under AB 1499, but has yet to be distributed.

The Executive Order exempts fairs that cannot provide workers with 30% above minimum wage, but still maintains meal and rest breaks, as well as applicable overtime pay. On Wednesday, CDFA sent Fair Managers and Board Presidents pertinent information on how to receive these soon-to-be-released funding allocations, which must be formally approved by each respective Fair Board at its next regular board meeting or at an emergency board meeting. CDFA intends to distribute these funds based on the class size of the fair, ranging from $132,500 to $198,700.

The Executive Order can be found here. The draft funding distribution can be viewed here.

FPPC Extends Form 700 Deadline Due to Coronavirus

On Thursday, in response to the current coronavirus (COVID-19) outbreak, the Fair Political Practices Commission (FPPC) formally ratified a 60-day extension for those who are required to file a 2019 Annual Statement of Economic Interests (Form 700). The Form 700s, originally due on April 1, 2020, will now be due on June 1, 2020.

The FPPC encourages form filers who have access to an electronic filing system to take advantage of its use. If electronic filing is not available, filers are encouraged to submit Form 700s by mail. Statements postmarked on or before the new, extended deadline will be considered filed on time.

To access FPPC’s electronic Form 700 filing system, click here. If you have an advice question related to Form 700, please e-mail Form700@fppc.ca.gov or call (916) 322-1052 and leave a message.

Relief for Klamath Water Users

On Wednesday, Governor Newsom submitted a letter to the Secretary of the Interior as well as the Commissioner of the Bureau of Reclamation to trigger release of federal emergency funds to the Klamath Basin water users. This action was in concert with similar action by Oregon Governor Kate Brown. Under federal statute, both Governors were required to submit the request for the funds to be released. With the submission of this request by both Governors, the funds are expected to be released shortly to relieve some of the financial distress in the agricultural community.

Similar action was also taken by California Governor Brown and Oregon Governor Brown in 2018. Thanks to the leadership of Natural Resources Secretary Wade Crowfoot and Secretary of Food and Agriculture Karen Ross for expediting the request.

Infrastructure in Phase 4

Despite being only one week beyond the passage of the $2.2 trillion CARES Act (Phase 3), talks have already begun for a Phase 4 with infrastructure funding being at the forefront of the discussions. Both the White House and Congress have floated the idea of including infrastructure investment in the next component of relief from the coronavirus (COVID-19) package, including a tweet from President Trump stating, “With interest rates for the United States being at ZERO, this is the time to do our decades long awaited Infrastructure Bill. It should be VERY BIG & BOLD, Two Trillion Dollars, and be focused solely on jobs and rebuilding the once great infrastructure of our Country!” On Tuesday, House Speaker Nancy Pelosi (D-California) echoed President Trump’s call for infrastructure investment, highlighting water treatment, broadband deployment, medical infrastructure, and school construction as her main priorities for investment. She added that the legislation would build off of the $760 billion infrastructure proposal unveiled by the Democrats in January, which features new funding for roads, high-speed rail, airports and broadband networks around the country. The Speaker’s new proposal would also include an extra $10 billion to invest in community health centers. Specifics on a funding mechanism for such a plan remain up for negotiation and are likely to bring vigorous debates between Republicans and Democrats.

Rural Telehealth

On Monday, Federal Communications Commission (FCC) Chairman Ajit Pai proposed a telehealth program that would use the $200 million that Congress appropriated to the FCC as part of the $2.2 trillion CARES Act. The program would help eligible health care providers purchase telecommunications, broadband connectivity, and devices necessary for providing telehealth services. These services would directly help COVID-19 patients and provide care to patients with other conditions who might risk contracting the coronavirus when visiting a healthcare provider, while reducing practitioners’ potential exposure to the virus.

BULLETIN BOARD

WIR Conference Gathering Cancelled - Stay Tuned for Alternative Dates

Due to the rapidly changing coronavirus (COVID-19) situation across the nation, after painstakingly thorough consideration, the 2020 National Association of Counties’ (NACo) Western Interstate Region (WIR) Conference scheduled to take place at Tenaya Lodge at Yosemite, has been cancelled. The letter from WIR President, Supervisor Kevin Cann of Mariposa County, to the WIR Board of Directors may be viewed here.

A tremendous program was planned, and the conference team is exploring alternative options for members to utilize, including the possibility of the 2021 Conference being held in California. We encourage you to keep the WIR conference dates on your calendar. And, please plan to participate in virtual meetings and upcoming WIR workshops that may be offered as a partial replacement for Mariposa County in 2020.

For the latest WIR Conference updates, click here.

CORONAVIRUS (COVID-19) ASSISTANCE

Coronavirus (COVID-19) County Resource Page Available

The California State Association of Counties (CSAC), RCRC’s local government partner, continues to provide excellent up-to-date state and federal information to counties on this ever-changing pandemic event. We encourage visiting CSAC’s COVID-19 resource page, which contains vital links to all CSAC COVID-19 advocacy letters and resources. CSAC’s staff continues to work around the clock to update activities so that all of California’s counties can remain properly informed.

Economic Development Resources for Communities and Businesses Impacted by the Coronavirus

The California Association for Local Economic Development (CALED) has assembled resources for communities and business impacted by the coronavirus (COVID-19). The page will be continually evolving as new resources become available. To go directly to the CALED resources, click here.

Use of Community Development Block Grant (CDBG) Funds for Infectious Disease Response

Community Development Block Grant (CDBG) funds may be used for a range of eligible activities that prevent and respond to the spread of infectious diseases such as the coronavirus disease 2019 (COVID-19). Check out the Quick Guide to CDBG Eligible Activities to Support Infectious Disease Response for guidance and additional information.

Federal Disaster Loan Assistance Available from the Small Business Administration

Applications are now being accepted by the U.S. Small Business Administration (SBA) for federal disaster loans to help alleviate economic injury caused by the coronavirus (COVID-19). All fifty-eight (58) California counties are designated as eligible. To apply, please visit SBA’s Disaster Loan Assistance portal here.