Joint powers agreements: nonprofit housing developers.

Plain English Breakdown

The bill summary does not provide specific details on how these agreements will be funded or managed, leaving some uncertainty.

Nonprofit Housing Developers Can Join Joint Powers Agreements

This law allows nonprofit groups that build homes to join agreements with government agencies for risk sharing and protection from debts or liabilities.

What This Bill Does

• Allows nonprofit housing developers to enter into joint powers agreements with public agencies for the purpose of risk pooling.
• Expands the list of entities authorized to provide insurance through these agreements to include nonprofit housing developers.
• Requires that if a nonprofit housing developer enters into an agreement, it must protect participating public agencies from any debts or liabilities and indemnify them against those debts and liabilities.
• Specifies that revenues generated by such agreements can only be used for technical support, continuing education, safety engineering, operational and managerial advisory assistance to reduce risk liabilities.

Who It Names or Affects

• Nonprofit housing developers
• Public agencies

Terms To Know

Joint powers agreement

An agreement between two or more public agencies or entities to work together on common goals.

Risk pooling

A way for multiple organizations to share risks and costs, reducing the impact of any single event.

Limits and Unknowns

• The bill does not specify how these agreements will be funded or managed.
• It is unclear what specific technical support and education services will be provided under these agreements.

Official Summary Text

SB 1170, as introduced, Durazo.
Joint powers agreements: nonprofit housing developers.
Existing law, the Joint Exercise of Powers Act, authorizes 2 or more public agencies, as defined, to jointly exercise any power common to the contracting parties, as provided. Among other things, that act also authorizes a mutual water company to enter into a joint powers agreement with any public agency for the purposes of risk pooling, as specified. Existing law, the Government Claims Act, among other things, authorizes public entities, mutual water companies, public agencies, water corporations, and mutual water companies to provide insurance under that act by a joint powers agreement, as specified.
This bill would additionally authorize a nonprofit housing developer to enter into a joint powers agreement with any public agency for the purpose of risk pooling, and would expand the list of entities authorized to provide insurance by a joint
powers agreement to include nonprofit housing developers. The bill would require that, if a nonprofit housing developer enters into a joint powers agreement with one or more public agencies, that the agreement ensure that no participating public agency becomes responsible for the underlying debts or liabilities of the joint powers agreement and that any participating public agency be indemnified against those debts and liabilities. The bill would require a joint powers agreement established pursuant to this authorization to solely utilize any revenues it generates to provide technical support, continuing education, safety engineering, and operational and managerial advisory assistance to its members for the purpose of reducing risk liabilities and furthering the technical managerial and financial capacity of those members.
Existing law also authorizes 2 or more local public entities having the same governing board, a mutual water company and a public agency, or a
water corporation, a mutual water company, and one or more public agencies, as specified, to be coinsured under a master policy and the total premium prorated among them.
This bill would recast the provisions described above, provide that the affected entities are those authorized pursuant to specified provisions, and include among those entities nonprofit housing developers.

Current Bill Text

Download Bill PDF