HomeMy WebLinkAbout032321-03.1
LEGISLATIVE COMMITTEE MEMORANDUM 3.1
TO: Mayor and Town Council March 23, 2021
SUBJECT: March Legislative Report
BACKGROUND
The last day to introduce bills in the 2021 Legislative session was February 19. As of that
date, there were a total of 2,497 bills introduced in the State Senate and the State
Assembly.
The State Legislature is continuing to intensify their efforts to encourage housing
production in an effort to create affordability by imposing new requirements on local
governments. While the state will need an estimated 1.8 million new homes by 2025 in
order to meet demand, an average of only 80,000 new homes are built annually according
to the Department of Housing and Community Development.
A significant number of the new housing bills are designed to supersede local zoning
ordinances, create housing density, streamline developments, and create density infill in
single family zoning. All have the potential to impact Danville. The Legislative
Committee’s work is essential to ensure the town is well positioned for advocacy work
during the legislative session.
DISCUSSION
Tri-Valley Coalition (TVC) that includes the Cities of Livermore, Pleasanton, Dublin, San
Ramon and the Town of Danville, works on issues and advocates on behalf of our region
at the State and Federal level. The coalition represents approximately 365,000 people,
giving us a stronger voice in Sacramento.
The TVC Legislative Framework is reviewed and updated annually to ensure that it
reflects current priorities. This year, those priorities will continue to include affordable
housing and strengthening local land use as well as COVID-19 relief and recovery.
The next TVC Mayors, Managers and Liaisons meeting is Tuesday, March 23. The agenda
for the meeting includes review of the 2021 TVC Framework, preparing for the upcoming
March 29 Legislative meeting with Senator Glazer and Assemblymember Rebecca Bauer-
Kahan.
March Legislative Committee Report 2 March 23, 2021
Housing Legislation
SB 5: Senate Housing Bond (Atkins, Skinner, Weiner)
Senate Bill 5, establishes an initial framework for the Legislature to enact legislation to
authorize the issuance of bonds, the proceeds of which would be used to finance
housing-related programs that serve the homeless, extremely low income and very low-
income Californians.
SB 6: (Caballero) The Neighborhood Homes Act
Senate Bill 6, the Neighborhood Homes Act, authorizes residential development on
existing lots currently zoned for commercial office and retail use space, provided that
sites are not located adjacent to industrial use zones. Under the bill the density for a
housing development would meet or exceed densities required to accommodate housing
for lower income households, including a density of at least 20 units per acre for a
suburban jurisdiction.
Senate Bill 7: (Atkins) The Housing + Jobs Expansion and Extension Act
This bill would require a lead agency to prepare a master EIR for a general plan, plan
amendment, plan element, or specific plan for housing projects where the state has
provided funding for the preparation of the master EIR.
Senate Bill 8: (Skinner) Density Bonus Law
Senate Bill 8, this bill is currently an intent bill and is subject to revision.
Senate Bill 10: (Wiener)
SB 10, would authorize a local government to pass an ordinance to zone any parcel for
up to 10 residential units, at a height specified in the local ordinance, if the parcel is
located in a transit-rich area, a jobs-rich area, or an urban infill site, as those terms are
defined. In this regard, the bill would require the Department of Housing and
Community Development, in consultation with the Office of Planning and Research, to
determine jobs-rich areas and publish a map of those areas every 5 years, commencing
January 1, 2022, based on specified criteria. The bill would specify that an ordinance
adopted under these provisions is not a project for purposes of the California
Environmental Quality Act.
SB 15: (Portantino)
This bill, upon appropriation by the Legislature in the annual Budget Act or other statute,
would require the department to administer a program to provide incentives in the form
of grants allocated as provided to local governments that rezone idle sites used for a big
box retailer or a commercial shopping center to instead allow the development of
workforce housing.
March Legislative Committee Report 3 March 23, 2021
SB 44: (Allen)
Would require the Judicial Council, on or before April 1, 2022, to adopt rules of court
establishing procedures requiring actions or proceedings seeking judicial review
pursuant to CEQA or the granting of project approvals, including any appeals to the court
of appeal or the Supreme Court, to be resolved, to the extent feasible, within 270 days of
the filing of the certified record of proceedings with the court to an action or proceeding
seeking judicial review of the lead agency’s action related to an environmental leadership
transit project.
SCA 2: (Allan)
SCA 2, would repeal Article 34 of the California Constitution, which prohibits the
development, construction, or acquisition of a low-rent housing project, as defined, in
any manner by any state public body until a majority of the qualified electors of the city,
town, or county in which the development or acquisition of the low-rent housing project
is proposed approve the project by voting in favor at an election.
AB 59: (Gabriel)
This bill would increase, for fees and service charges and for fees for specified public
facilities, the time for mailing the notice of the time and place of the meeting to at least 45
days before the meeting.
AB 115: (Bloom)
Would require that a housing development be an authorized use on a site designated in
any local agency’s zoning code or maps for commercial uses if certain conditions apply.
Among these conditions, the bill would require that the housing development be subject
to a recorded deed restriction requiring that at least 20% of the units have an affordable
housing cost or affordable rent for lower income households, as those terms are defined,
and located on a site that satisfies specified criteria.
Environmental Legislation
AB 377 (Rivas)
This bill would require all California surface waters to be fishable, swimmable, and
drinkable by January 1, 2050, as prescribed. The bill would prohibit the state board and
regional boards from authorizing an NPDES discharge, waste discharge requirement, or
waiver of a waste discharge requirement that causes or contributes to an exceedance of a
water quality standard, or from authorizing a best management practice permit term to
authorize a discharge that causes or contributes to an exceedance of a water quality
standard in receiving waters. The bill would prohibit, on or after January 1, 2030, a
regional water quality control plan from including a schedule for implementation for
achieving a water quality standard that was adopted as of January 1, 2021, and would
prohibit a regional water quality control plan from including a schedule for
implementation of a water quality standard that is adopted after January 1, 2021, unless
specified conditions are met.
March Legislative Committee Report 4 March 23, 2021
Health Legislation
AB 988 Bauer-Kahan
This bill would establish the 988 Crisis Hotline Center, using the digits “988” in
compliance with existing federal law and standards governing the National Suicide
Prevention Lifeline. The bill would require the Office of Emergency Services to take
specified actions to implement the hotline system, including hiring a director with
specified experience and designating a 988-crisis hotline center or centers to provide crisis
intervention services and crisis care coordination to individuals accessing the 988
number.
Federal Legislation
Congress passed the $1.9 trillion emergency relief plan, H.R. 1319, the American Rescue
Plan Act designed to deliver direct aid to families, businesses, and communities, as well
as focus on coronavirus testing and vaccine production and delivery. Key components
of the package include $1400 stimulus checks, $350 billion to state and local governments,
$15 billion for small business grant programs, $170 billion for schools, $25 billion in rental
assistance for low and moderate-income households who have lost jobs during the
pandemic, a $15-dollar minimum wage, $20 billion for vaccines and $50 billion for
testing. Under Federal Local Government allocations, Danville is scheduled to receive
$8.37 million. The funding will be dispersed in two installments, 12 months apart. The
Funds may be used to offset revenue losses due to COVID-19 and necessary
infrastructure investments like water, sewer, and broadband technology infrastructure.
Grants Program
There are no grant submissions scheduled for the month of March. Townsend Public
Affairs will be assisting the Town in preparing project summaries for earmark requests
to Congressman Swalwell and Congressman DeSaulnier. Townsend will also be assisting
the Town with guidance on the use of H.R. 1319, the American Rescue Plan Act funds.
Prepared and Reviewed by:
Diane Friedmann
Assistant to the Town Manager
AMENDED IN SENATE MARCH 10, 2021
SENATE BILL No. 5
Introduced by Senators Atkins, Caballero, McGuire, Rubio,
Skinner, and Wiener
December 7, 2020
An act relating to housing. An act to add Part 17 (commencing with
Section 54050) to Division 31 of the Health and Safety Code, relating
to housing, by providing the funds necessary therefor through an
election for the issuance and sale of bonds of the State of California
and for the handling and disposition of those funds.
legislative counsel’s digest
SB 5, as amended, Atkins. Housing: bond act. Affordable Housing
Bond Act of 2022.
Under existing law, there are programs providing assistance for,
among other things, emergency housing, multifamily housing,
farmworker housing, home ownership for very low and low-income
households, and downpayment assistance for first-time homebuyers.
Existing law also authorizes the issuance of bonds in specified amounts
pursuant to the State General Obligation Bond Law and requires that
proceeds from the sale of these bonds be used to finance various existing
housing programs, capital outlay related to infill development,
brownfield cleanup that promotes infill development, and
housing-related parks.
This bill would state the intent of the Legislature to enact legislation
that would authorize the issuance of bonds and would require the
proceeds from the sale of those bonds to be used to finance
housing-related programs that serve the homeless and extremely low
income and very low income Californians.
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This bill would enact the Affordable Housing Bond Act of 2022, which,
if adopted, would authorize the issuance of bonds in the amount of
$6,500,000,000 pursuant to the State General Obligation Bond Law.
Proceeds from the sale of these bonds would be used to fund affordable
rental housing and homeownership programs. The bill would state the
intent of the Legislature to determine the allocation of those funds to
specific programs.
This bill would provide for submission of the bond act to the voters
at the November 8, 2022, statewide general election in accordance with
specified law.
Vote: majority 2⁄3. Appropriation: no. Fiscal committee: no yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. Part 17 (commencing with Section 54050) is
line 2 added to Division 31 of the Health and Safety Code, to read:
line 3
line 4 PART 17. AFFORDABLE HOUSING BOND ACT OF 2022
line 5
line 6 Chapter 1. General Provisions
line 7
line 8 54050. This part shall become operative only upon adoption
line 9 by the voters at the November 8, 2022, statewide general election.
line 10 54051. This part shall be known as the Affordable Housing
line 11 Bond Act of 2022.
line 12 54052. For purposes of this part, “fund” means the Affordable
line 13 Housing Bond Act Trust Fund of 2022 created pursuant to Section
line 14 50054.
line 15
line 16 Chapter 2. Affordable Housing Bond Act Trust Fund
line 17 and Program
line 18
line 19 54054. (a) The Affordable Housing Bond Act Trust Fund of
line 20 2022 is hereby created within the State Treasury. It is the intent
line 21 of the Legislature that the proceeds of bonds (exclusive of refunding
line 22 bonds issued pursuant to Section 54074) be deposited in the fund
line 23 and used to fund affordable rental housing and homeownership
line 24 programs.
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line 1 (b) It is the intent of the Legislature to further determine the
line 2 allocation of these funds to specific programs.
line 3 54056. (a) The Legislature may, from time to time, amend any
line 4 law related to programs to which funds are, or have been, allocated
line 5 pursuant to this chapter for the purposes of improving the efficiency
line 6 and effectiveness of those programs or to further the goals of those
line 7 programs.
line 8 (b) The Legislature may amend this chapter to reallocate the
line 9 proceeds of bonds issued and sold pursuant to this part among the
line 10 programs to which funds are to be allocated pursuant to this
line 11 chapter as necessary to effectively promote the development of
line 12 affordable housing in this state.
line 13 54057. It is the intent of the Legislature to develop and
line 14 implement high-road labor policies to use a skilled construction
line 15 workforce to build projects utilizing bond funds.
line 16
line 17 Chapter 3. Fiscal Provisions
line 18
line 19 54058. Bonds in the total amount of six billion five hundred
line 20 million dollars ($6,500,000,000), exclusive of refunding bonds
line 21 issued pursuant to Section 54074, or so much thereof as is
line 22 necessary as determined by the committee, are hereby authorized
line 23 to be issued and sold for carrying out the purposes expressed in
line 24 this part and to reimburse the General Obligation Bond Expense
line 25 Revolving Fund pursuant to Section 16724.5 of the Government
line 26 Code. All bonds herein authorized that have been duly issued,
line 27 sold, and delivered as provided herein shall constitute valid and
line 28 binding general obligations of the state, and the full faith and
line 29 credit of the state is hereby pledged for the punctual payment of
line 30 both principal of and interest on those bonds when due.
line 31 54060. The bonds authorized by this part shall be prepared,
line 32 executed, issued, sold, paid, and redeemed as provided in the State
line 33 General Obligation Bond Law (Chapter 4 (commencing with
line 34 Section 16720) of Part 3 of Division 4 of Title 2 of the Government
line 35 Code), except subdivisions (a) and (b) of Section 16727 of the
line 36 Government Code, and all of the provisions of that law as amended
line 37 from time to time apply to the bonds and to this part, except as
line 38 provided in Section 54076, and are hereby incorporated in this
line 39 part as though set forth in full in this part.
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SB 5 — 3 —
line 1 54062. (a) Solely for the purpose of authorizing the issuance
line 2 and sale, pursuant to the State General Obligation Bond Law, of
line 3 the bonds authorized by this part, the committee is continued in
line 4 existence. For the purposes of this part, the Housing Finance
line 5 Committee is “the committee” as that term is used in the State
line 6 General Obligation Bond Law.
line 7 (b) For the purposes of the State General Obligation Bond Law,
line 8 the Department of Housing and Community Development is
line 9 designated the “board” for programs administered by the
line 10 department, and the California Housing Finance Agency is the
line 11 “board” for programs administered by the agency.
line 12 54064. Upon request of the board stating that funds are needed
line 13 for purposes of this part, the committee shall determine whether
line 14 or not it is necessary or desirable to issue bonds, and, if so, the
line 15 amount of bonds to be issued and sold. Successive issues of bonds
line 16 may be authorized and sold to carry out those actions progressively
line 17 and are not required to be sold at any one time. Bonds may bear
line 18 interest subject to federal income tax.
line 19 54066. There shall be collected annually, in the same manner
line 20 and at the same time as other state revenue is collected, a sum of
line 21 money in addition to the ordinary revenues of the state, sufficient
line 22 to pay the principal of, and interest on, the bonds each year. It is
line 23 the duty of all officers charged by law with any duty in regard to
line 24 the collections of state revenues to do or perform each and every
line 25 act that is necessary to collect that additional sum.
line 26 54068. Notwithstanding Section 13340 of the Government
line 27 Code, there is hereby continuously appropriated from the General
line 28 Fund in the State Treasury, for the purposes of this part, an amount
line 29 that will equal the total of both of the following:
line 30 (a) The sum annually necessary to pay the principal of, and
line 31 interest on, bonds issued and sold pursuant to this part, as the
line 32 principal and interest become due and payable.
line 33 (b) The sum that is necessary to carry out Section 54072,
line 34 appropriated without regard to fiscal years.
line 35 54070. The board may request the Pooled Money Investment
line 36 Board to make a loan from the Pooled Money Investment Account,
line 37 in accordance with Section 16312 of the Government Code, for
line 38 purposes of this part. The amount of the request shall not exceed
line 39 the amount of the unsold bonds that the committee has, by
line 40 resolution, authorized to be sold, excluding any refunding bonds
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line 1 authorized pursuant to Section 54074, for purposes of this part,
line 2 less any amount loaned pursuant to this section and not yet repaid
line 3 and any amount withdrawn from the General Fund pursuant to
line 4 Section 54072 and not yet returned to the General Fund. The board
line 5 shall execute any documents as required by the Pooled Money
line 6 Investment Board to obtain and repay the loan. An amount loaned
line 7 shall be deposited in the fund to be allocated in accordance with
line 8 this part.
line 9 54072. For purposes of carrying out this part, the Director of
line 10 Finance may, by executive order, authorize the withdrawal from
line 11 the General Fund of an amount or amounts not to exceed the
line 12 amount of the unsold bonds that the committee has, by resolution,
line 13 authorized to be sold, excluding any refunding bonds authorized
line 14 pursuant to Section 54074, for purposes of this part, less any
line 15 amount loaned pursuant to Section 54070 and not yet repaid and
line 16 any amount withdrawn from the General Fund pursuant to this
line 17 section and not yet returned to the General Fund. Any amounts
line 18 withdrawn shall be deposited in the fund to be allocated in
line 19 accordance with this part. Any moneys made available under this
line 20 section shall be returned to the General Fund, plus the interest
line 21 that the amounts would have earned in the Pooled Money
line 22 Investment Account, from moneys received from the sale of bonds
line 23 that would otherwise be deposited in that fund.
line 24 54074. The bonds may be refunded in accordance with Article
line 25 6 (commencing with Section 16780) of Chapter 4 of Part 3 of
line 26 Division 4 of Title 2 of the Government Code. Approval by the
line 27 electors of this act shall constitute approval of any refunding bonds
line 28 issued to refund bonds issued pursuant to this part, including any
line 29 prior issued refunding bonds. A bond refunded with the proceeds
line 30 of a refunding bond as authorized by this section may be legally
line 31 defeased to the extent permitted by law in the manner and to the
line 32 extent set forth in the resolution, as amended from time to time,
line 33 authorizing that refunded bond.
line 34 54076. Notwithstanding any provisions in the State General
line 35 Obligation Bond Law, the maturity date of bonds authorized by
line 36 this part shall not be later than 35 years from the date of each
line 37 bond. The maturity of each series shall be calculated from the date
line 38 of issuance of each bond.
line 39 54078. The Legislature hereby finds and declares that,
line 40 inasmuch as the proceeds from the sale of bonds authorized by
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SB 5 — 5 —
line 1 this part are not “proceeds of taxes” as that term is used in Article
line 2 XIII B of the California Constitution, the disbursement of these
line 3 proceeds is not subject to the limitations imposed by that article.
line 4 54080. Notwithstanding any provision of the State General
line 5 Obligation Bond Law with regard to the proceeds from the sale
line 6 of bonds authorized by this part that are subject to investment
line 7 under Article 4 (commencing with Section 16470) of Chapter 3 of
line 8 Part 2 of Division 4 of Title 2 of the Government Code, the
line 9 Treasurer may maintain a separate account for investment
line 10 earnings, may order the payment of those earnings to comply with
line 11 any rebate requirement applicable under federal law, and may
line 12 otherwise direct the use and investment of those proceeds so as to
line 13 maintain the tax-exempt status of tax-exempt bonds and to obtain
line 14 any other advantage under federal law on behalf of the funds of
line 15 this state.
line 16 54082. (a) Subject to subdivision (b), all moneys derived from
line 17 premiums and accrued interest on bonds sold pursuant to this part
line 18 shall be transferred to the General Fund as a credit to expenditures
line 19 for bond interest.
line 20 (b) Amounts derived from premiums may be reserved and used
line 21 to pay the costs of bond issuance before transfer to the General
line 22 Fund.
line 23 SEC. 2. Section 1 of this act shall be submitted by the Secretary
line 24 of State to the voters as the Affordable Housing Bond Act of 2022
line 25 at the November 8, 2022, statewide general election.
line 26 SECTION 1. It is the intent of the Legislature to enact
line 27 legislation that would authorize the issuance of bonds and would
line 28 require the proceeds from the sale of those bonds to be used to
line 29 finance housing-related programs that serve the homeless and
line 30 extremely low income and very low income Californians over the
line 31 course of the next decade.
O
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— 6 — SB 5
AMENDED IN SENATE MARCH 8, 2021
SENATE BILL No. 6
Introduced by Senators Caballero, Eggman, and Rubio
(Principal coauthors: Senators Atkins, Durazo, Gonzalez, Hertzberg,
and Wiener)
(Coauthor: Senator Hueso) (Coauthors: Senators Cortese, Hueso,
and McGuire)
(Coauthors: Assembly Members Arambula, Carrillo, Cooper, Gipson,
Quirk-Silva, and Robert Rivas)
December 7, 2020
An act to amend Section 65913.4 of, and to add and repeal Section
65852.23 to, of, the Government Code, relating to land use.
legislative counsel’s digest
SB 6, as amended, Caballero. Local planning: housing: commercial
zones.
The Planning and Zoning Law requires each county and city to adopt
a comprehensive, long-term general plan for its physical development,
and the development of certain lands outside its boundaries, that
includes, among other mandatory elements, a housing element. Existing
law requires that the housing element include, among other things, an
inventory of land suitable and available for residential development. If
the inventory of sites does not identify adequate sites to accommodate
the need for groups of all households pursuant to specified law, existing
law requires the local government to rezone sites within specified time
periods and that this rezoning accommodate 100% of the need for
housing for very low and low-income households on sites that will be
zoned to permit owner-occupied and rental multifamily residential use
by right for specified developments.
98
This bill, the Neighborhood Homes Act, would deem a housing
development project, as defined, an allowable use on a neighborhood
lot, which is defined as a parcel within an office or retail commercial
zone that is not adjacent to an industrial use. The bill would require the
density for a housing development under these provisions to meet or
exceed the density deemed appropriate to accommodate housing for
lower income households according to the type of local jurisdiction,
including a density of at least 20 units per acre for a suburban
jurisdiction. The bill would require the housing development to meet
all other local requirements for a neighborhood lot, other than those
that prohibit residential use, or allow residential use at a lower density
than that required by the bill. The bill would provide that a housing
development under these provisions is subject to the local zoning,
parking, design, and other ordinances, local code requirements, and
procedures applicable to the processing and permitting of a housing
development in a zone that allows for the housing with the density
required by the act. If more than one zoning designation of the local
agency allows for housing with the density required by the act, the bill
would require that the zoning standards that apply to the closest parcel
that allows residential use at a density that meets the requirements of
the act would apply. If the existing zoning designation allows residential
use at a density greater than that required by the act, the bill would
require that the existing zoning designation for the parcel would apply.
The bill would also require that a housing development under these
provisions comply with public notice, comment, hearing, or other
procedures applicable to a housing development in a zone with the
applicable density. The bill would require that the housing development
is subject to a recorded deed restriction with an unspecified affordability
requirement, as provided. The bill would require that a developer either
certify that the development is a public work, as defined, or is not in
its entirety a public work, but that all construction workers will be paid
prevailing wages, as provided, or certify that a skilled and trained
workforce, as defined, will be used to perform all construction work
on the development, as provided. The bill would require a local agency
to require that a rental of any unit created pursuant to the bill’s
provisions be for a term longer than 30 days. The bill would authorize
a local agency to exempt a neighborhood lot from these provisions in
its land use element of the general plan if the local agency concurrently
reallocates the lost residential density to other lots so that there is no
net loss in residential density in the jurisdiction, as provided. The bill
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— 2 — SB 6
would specify that it does not alter or affect the application of any
housing, environmental, or labor law applicable to a housing
development authorized by these provisions, including, but not limited
to, the California Coastal Act, the California Environmental Quality
Act, the Housing Accountability Act, obligations to affirmatively further
fair housing, and any state or local affordability laws or tenant protection
laws. The bill would require an applicant of a housing development
under these provisions to provide notice of a pending application to
each commercial tenant of the neighborhood lot. The bill would repeal
these provisions on January 1, 2029.
The bill would include findings that changes proposed by the
Neighborhood Homes Act address a matter of statewide concern rather
than a municipal affair and, therefore, apply to all cities, including
charter cities.
The Housing Accountability Act, which is part of the Planning and
Zoning Law, prohibits a local agency from disapproving, or conditioning
approval in a manner that renders infeasible, a housing development
project, as defined for purposes of the act, for very low, low-, or
moderate-income households or an emergency shelter unless the local
agency makes specified written findings based on a preponderance of
the evidence in the record. That act states that it shall not be construed
to prohibit a local agency from requiring a housing development project
to comply with objective, quantifiable, written development standards,
conditions, and policies appropriate to, and consistent with, meeting
the jurisdiction’s share of the regional housing need, except as provided.
That act further provides that a housing development project or
emergency shelter shall be deemed consistent, compliant, and in
conformity with an applicable plan, program, policy, ordinance,
standard, requirement, or other similar provision if there is substantial
evidence that would allow a reasonable person to conclude that the
housing development project or emergency shelter is consistent,
compliant, or in conformity.
The bill would provide that for purposes of the Housing
Accountability Act, a proposed housing development project is
consistent, compliant, and in conformity with an applicable plan,
program, policy, ordinance, standard, requirement, or other similar
provision if the housing development project is consistent with the
standards applied to the parcel pursuant to specified provisions of the
Neighborhood Homes Act and if none of the square footage in the
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SB 6 — 3 —
project is designated for hotel, motel, bed and breakfast inn, or other
transient lodging use, except for a residential hotel, as defined.
The Planning and Zoning Law, until January 1, 2026, also authorizes
a development proponent to submit an application for a multifamily
housing development that is subject to a streamlined, ministerial
approval process, as provided, and not subject to a conditional use
permit, if the development satisfies specified objective planning
standards, including a requirement that the site on which the
development is proposed is zoned for residential use or residential
mixed-use development, or has a general plan designation that allows
residential use or a mix of residential and nonresidential uses, with at
least 2⁄3 of the square footage of the development designated for
residential use. Under that law, the proposed development is also
required to be consistent with objective zoning standards, objective
subdivision standards, and objective design review standards in effect
at the time the development is submitted to the local government.
This bill would permit the development to be proposed for a site
zoned for office or retail commercial use if the site has had no
commercial tenants on 50% or more of its total usable net interior square
footage for a period of at least 3 years prior to the submission of the
application. The bill would also provide that a project located on a
neighborhood lot, as defined, shall be deemed consistent with objective
zoning standards, objective design standards, and objective subdivision
standards if the project is consistent with the applicable provisions of
the Neighborhood Homes Act.
By expanding the crime of perjury and imposing new duties on local
agencies with regard to local planning and zoning, this bill would impose
a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act
for specified reasons.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 65852.23 is added to the Government
line 2 Code, to read:
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— 4 — SB 6
line 1 65852.23. (a) (1) This section shall be known, and may be
line 2 cited, as the Neighborhood Homes Act.
line 3 (2) The Legislature finds and declares that creating more
line 4 affordable housing is critical to the achievement of regional
line 5 housing needs assessment goals, and that housing units developed
line 6 at higher densities may generate affordability by design for
line 7 California residents, without the necessity of public subsidies,
line 8 income eligibility, occupancy restrictions, lottery procedures, or
line 9 other legal requirements applicable to deed restricted affordable
line 10 housing to serve very low and low-income residents and special
line 11 needs residents.
line 12 (b) A housing development project shall be deemed an allowable
line 13 use on a neighborhood lot if it complies with all of the following:
line 14 (1) (A) The density for the housing development shall meet or
line 15 exceed the applicable density deemed appropriate to accommodate
line 16 housing for lower income households as follows:
line 17 (i) For an incorporated city within a nonmetropolitan county
line 18 and for a nonmetropolitan county that has a micropolitan area,
line 19 sites allowing at least 15 units per acre.
line 20 (ii) For an unincorporated area in a nonmetropolitan county not
line 21 included in subparagraph (A), sites allowing at least 10 units per
line 22 acre.
line 23 (iii) For a suburban jurisdiction, sites allowing at least 20 units
line 24 per acre.
line 25 (iv) For a jurisdiction in a metropolitan county, sites allowing
line 26 at least 30 units per acre.
line 27 (B) “Metropolitan county,” “nonmetropolitan county,”
line 28 “nonmetropolitan county with a micropolitan area,” and
line 29 “suburban,” shall have the same meanings as defined in
line 30 subdivisions (d), (e), and (f) of Section 65583.2.
line 31 (2) (A) The housing development shall be subject to local
line 32 zoning, parking, design, and other ordinances, local code
line 33 requirements, and procedures applicable to the processing and
line 34 permitting of a housing development in a zone that allows for the
line 35 housing with the density described in paragraph (1).
line 36 (B) If more than one zoning designation of the local agency
line 37 allows for housing with the density described in paragraph (1), the
line 38 zoning standards applicable to a parcel that allows residential use
line 39 pursuant to this section shall be the zoning standards that apply to
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line 1 the closest parcel that allows residential use at a density that meets
line 2 the requirements of paragraph (1).
line 3 (C) If the existing zoning designation for the parcel, as adopted
line 4 by the local government, allows residential use at a density greater
line 5 than that required in paragraph (1), the existing zoning designation
line 6 shall apply.
line 7 (3) The housing development shall comply with any public
line 8 notice, comment, hearing, or other procedures imposed by the
line 9 local agency on a housing development in the applicable zoning
line 10 designation identified in paragraph (2).
line 11 (4) The housing development shall be subject to a recorded deed
line 12 restriction requiring that at least __ percent of the units have an
line 13 affordable housing cost or affordable rent for lower income
line 14 households.
line 15 (5) All other local requirements for a neighborhood lot, other
line 16 than those that prohibit residential use, or allow residential use at
line 17 a lower density than provided in paragraph (1).
line 18 (6) The developer has done both of the following:
line 19 (A) Certified to the local agency that either of the following is
line 20 true:
line 21 (i) The entirety of the development is a public work for purposes
line 22 of Chapter 1 (commencing with Section 1720) of Part 7 of Division
line 23 2 of the Labor Code.
line 24 (ii) The development is not in its entirety a public work for
line 25 which prevailing wages must be paid under Article 2 (commencing
line 26 with Section 1720) of Chapter 1 of Part 2 of Division 2 of the
line 27 Labor Code, but all construction workers employed on construction
line 28 of the development will be paid at least the general prevailing rate
line 29 of per diem wages for the type of work and geographic area, as
line 30 determined by the Director of Industrial Relations pursuant to
line 31 Sections 1773 and 1773.9 of the Labor Code, except that
line 32 apprentices registered in programs approved by the Chief of the
line 33 Division of Apprenticeship Standards may be paid at least the
line 34 applicable apprentice prevailing rate. If the development is subject
line 35 to this subparagraph, then for those portions of the development
line 36 that are not a public work all of the following shall apply:
line 37 (I) The developer shall ensure that the prevailing wage
line 38 requirement is included in all contracts for the performance of all
line 39 construction work.
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line 1 (II) All contractors and subcontractors shall pay to all
line 2 construction workers employed in the execution of the work at
line 3 least the general prevailing rate of per diem wages, except that
line 4 apprentices registered in programs approved by the Chief of the
line 5 Division of Apprenticeship Standards may be paid at least the
line 6 applicable apprentice prevailing rate.
line 7 (III) Except as provided in subclause (V), all contractors and
line 8 subcontractors shall maintain and verify payroll records pursuant
line 9 to Section 1776 of the Labor Code and make those records
line 10 available for inspection and copying as provided therein.
line 11 (IV) Except as provided in subclause (V), the obligation of the
line 12 contractors and subcontractors to pay prevailing wages may be
line 13 enforced by the Labor Commissioner through the issuance of a
line 14 civil wage and penalty assessment pursuant to Section 1741 of the
line 15 Labor Code, which may be reviewed pursuant to Section 1742 of
line 16 the Labor Code, within 18 months after the completion of the
line 17 development, or by an underpaid worker through an administrative
line 18 complaint or civil action, or by a joint labor-management
line 19 committee though a civil action under Section 1771.2 of the Labor
line 20 Code. If a civil wage and penalty assessment is issued, the
line 21 contractor, subcontractor, and surety on a bond or bonds issued to
line 22 secure the payment of wages covered by the assessment shall be
line 23 liable for liquidated damages pursuant to Section 1742.1 of the
line 24 Labor Code.
line 25 (V) Subclauses (III) and (IV) shall not apply if all contractors
line 26 and subcontractors performing work on the development are subject
line 27 to a project labor agreement that requires the payment of prevailing
line 28 wages to all construction workers employed in the execution of
line 29 the development and provides for enforcement of that obligation
line 30 through an arbitration procedure. For purposes of this clause,
line 31 “project labor agreement” has the same meaning as set forth in
line 32 paragraph (1) of subdivision (b) of Section 2500 of the Public
line 33 Contract Code.
line 34 (VI) Notwithstanding subdivision (c) of Section 1773.1 of the
line 35 Labor Code, the requirement that employer payments not reduce
line 36 the obligation to pay the hourly straight time or overtime wages
line 37 found to be prevailing shall not apply if otherwise provided in a
line 38 bona fide collective bargaining agreement covering the worker.
line 39 The requirement to pay at least the general prevailing rate of per
line 40 diem wages does not preclude use of an alternative workweek
98
SB 6 — 7 —
line 1 schedule adopted pursuant to Section 511 or 514 of the Labor
line 2 Code.
line 3 (B) Certified to the local agency that a skilled and trained
line 4 workforce will be used to perform all construction work on the
line 5 development.
line 6 (i) For purposes of this section, “skilled and trained workforce”
line 7 has the same meaning as provided in Chapter 2.9 (commencing
line 8 with Section 2600) of Part 1 of Division 2 of the Public Contract
line 9 Code.
line 10 (ii) If the developer has certified that a skilled and trained
line 11 workforce will be used to construct all work on development and
line 12 the application is approved, the following shall apply:
line 13 (I) The developer shall require in all contracts for the
line 14 performance of work that every contractor and subcontractor at
line 15 every tier will individually use a skilled and trained workforce to
line 16 construct the development.
line 17 (II) Every contractor and subcontractor shall use a skilled and
line 18 trained workforce to construct the development.
line 19 (III) Except as provided in subclause (IV), the developer shall
line 20 provide to the local agency, on a monthly basis while the
line 21 development or contract is being performed, a report demonstrating
line 22 compliance with Chapter 2.9 (commencing with Section 2600) of
line 23 Part 1 of Division 2 of the Public Contract Code. A monthly report
line 24 provided to the local government pursuant to this subclause shall
line 25 be a public record under the California Public Records Act (Chapter
line 26 3.5 (commencing with Section 6250) of Division 7 of Title 1) and
line 27 shall be open to public inspection. A developer that fails to provide
line 28 a monthly report demonstrating compliance with Chapter 2.9
line 29 (commencing with Section 2600) of Part 1 of Division 2 of the
line 30 Public Contract Code shall be subject to a civil penalty of ten
line 31 thousand dollars ($10,000) per month for each month for which
line 32 the report has not been provided. Any contractor or subcontractor
line 33 that fails to use a skilled and trained workforce shall be subject to
line 34 a civil penalty of two hundred dollars ($200) per day for each
line 35 worker employed in contravention of the skilled and trained
line 36 workforce requirement. Penalties may be assessed by the Labor
line 37 Commissioner within 18 months of completion of the development
line 38 using the same procedures for issuance of civil wage and penalty
line 39 assessments pursuant to Section 1741 of the Labor Code, and may
line 40 be reviewed pursuant to the same procedures in Section 1742 of
98
— 8 — SB 6
line 1 the Labor Code. Penalties shall be paid to the State Public Works
line 2 Enforcement Fund.
line 3 (IV) Subclause (III) shall not apply if all contractors and
line 4 subcontractors performing work on the development are subject
line 5 to a project labor agreement that requires compliance with the
line 6 skilled and trained workforce requirement and provides for
line 7 enforcement of that obligation through an arbitration procedure.
line 8 For purposes of this subparagraph, “project labor agreement” has
line 9 the same meaning as set forth in paragraph (1) of subdivision (b)
line 10 of Section 2500 of the Public Contract Code.
line 11 (c) A local agency shall require that a rental of any unit created
line 12 pursuant to this section be for a term longer than 30 days.
line 13 (d) (1) A local agency may exempt a neighborhood lot from
line 14 this section in its land use element of the general plan if the local
line 15 agency concurrently reallocates the lost residential density to other
line 16 lots so that there is no net loss in residential density in the
line 17 jurisdiction.
line 18 (2) A local agency may reallocate the residential density from
line 19 an exempt neighborhood lot pursuant to this subdivision only if
line 20 the site or sites chosen by the local agency to which the residential
line 21 density is reallocated meet both of the following requirements:
line 22 (A) The site or sites are suitable for residential development.
line 23 For purposes of this subparagraph, “site or sites suitable for
line 24 residential development” shall have the same meaning as “land
line 25 suitable for residential development,” as defined in Section
line 26 65583.2.
line 27 (B) The site or sites are subject to an ordinance that allows for
line 28 development by right.
line 29 (e) (1) This section does not alter or lessen the applicability of
line 30 any housing, environmental, or labor law applicable to a housing
line 31 development authorized by this section, including, but not limited
line 32 to, the following:
line 33 (A) The California Coastal Act of 1976 (Division 20
line 34 (commencing with Section 30000) of the Public Resources Code)
line 35 Code).
line 36 (B) The California Environmental Quality Act (Division 13
line 37 (commencing with Section 21000) of the Public Resources Code).
line 38 (C) The Housing Accountability Act (Section 65589.5).
line 39 (D) The Density Bonus Law (Section 65915).
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SB 6 — 9 —
line 1 (E) Obligations to affirmatively further fair housing, pursuant
line 2 to Section 8899.50.
line 3 (F) State or local affordable housing laws.
line 4 (G) State or local tenant protection laws.
line 5 (2) All local demolition ordinances shall apply to a project
line 6 developed on a neighborhood lot.
line 7 (3) For purposes of the Housing Accountability Act (Section
line 8 65589.5), a proposed housing development project that is consistent
line 9 with the provisions of paragraph (2) of subdivision (b) shall be
line 10 deemed consistent, compliant, and in conformity with an applicable
line 11 plan, program, policy, ordinance, standard, requirement, or other
line 12 similar provision.
line 13 (4) Notwithstanding any other provision of this section, for
line 14 purposes of the Density Bonus Law (Section 65915), an applicant
line 15 for a housing development under this section may apply for a
line 16 density bonus pursuant to Section 65915.
line 17 (f) An applicant for a housing development under this section
line 18 shall provide written notice of the pending application to each
line 19 commercial tenant on the neighborhood lot when the application
line 20 is submitted.
line 21 (g) (1) An applicant seeking to develop a housing project on a
line 22 neighborhood lot may request that a local agency establish a
line 23 Mello-Roos Community Facilities District, or may request that
line 24 the neighborhood lot be annexed to an existing community facilities
line 25 district, as authorized in Chapter 2.5 (commencing with Section
line 26 53311) of Part 1 of Division 2 of Title 5 to finance improvements
line 27 and services to the units proposed to be developed.
line 28 (2) An annexation to a community facilities district for a
line 29 neighborhood lot shall be subject to a protest proceeding as
line 30 provided in subdivision (b) of Section 53339.6.
line 31 (3) An applicant who voluntarily enrolls in the district shall not
line 32 be required to pay a development, impact, or mitigation fee, charge,
line 33 or exaction in connection with the approval of a development
line 34 project to the extent that those facilities and services are funded
line 35 by a community facilities district established pursuant to this
line 36 subdivision. This paragraph shall not prohibit a local agency from
line 37 imposing any application, development, mitigation, building, or
line 38 other fee to fund the construction cost of public infrastructure
line 39 facilities or services that are not funded by a community facilities
line 40 district to support a housing development project.
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line 1 (g) Notwithstanding Section 65913.4, a project on a
line 2 neighborhood lot shall not be eligible for streamlining pursuant
line 3 to Section 65913.4 if it meets either of the following conditions:
line 4 (1) The site has previously been developed pursuant to Section
line 5 65913.4 with a project of 10 units or fewer.
line 6 (2) The developer of the project or any person acting in concert
line 7 with the developer has previously proposed a project pursuant to
line 8 Section 65913.4 of 10 units or fewer on the same or an adjacent
line 9 site.
line 10 (h) For purposes of this section:
line 11 (1) “Housing development project” means a use project
line 12 consisting of any of the following:
line 13 (A) Residential units only.
line 14 (B) Mixed-use developments consisting of residential and
line 15 nonresidential retail commercial or office uses. uses, and at least
line 16 50 percent of the square footage of the new construction associated
line 17 with the project is designated for residential use. None of the
line 18 square footage of any such development shall be designated for
line 19 hotel, motel, bed and breakfast inn, or other transient lodging use,
line 20 except for a residential hotel.
line 21 (2) “Local agency” means a city, including a charter city, county,
line 22 or a city and county.
line 23 (3) “Neighborhood lot” means a parcel within an office or retail
line 24 commercial zone that is not adjacent to an industrial use.
line 25 (4) “Office or retail commercial zone” means any commercial
line 26 zone, except for zones where office uses and retail uses are not
line 27 permitted, or are permitted only as an accessory use.
line 28 (5) “Residential hotel” has the same meaning as defined in
line 29 Section 50519 of the Health and Safety Code.
line 30 (i)
line 31 (i) The Legislature finds and declares that ensuring access to
line 32 affordable housing is a matter of statewide concern and is not a
line 33 municipal affair as that term is used in Section 5 of Article XI of
line 34 the California Constitution. Therefore, this section applies to all
line 35 cities, including charter cities.
line 36 (j) This section shall remain in effect only until January 1, 2029,
line 37 and as of that date is repealed.
line 38 SEC. 2. Section 65913.4 of the Government Code is amended
line 39 to read:
98
SB 6 — 11 —
line 1 65913.4. (a) A development proponent may submit an
line 2 application for a development that is subject to the streamlined,
line 3 ministerial approval process provided by subdivision (c) and is
line 4 not subject to a conditional use permit if the development complies
line 5 with subdivision (b) and satisfies all of the following objective
line 6 planning standards:
line 7 (1) The development is a multifamily housing development that
line 8 contains two or more residential units.
line 9 (2) The development and the site on which it is located satisfy
line 10 all of the following:
line 11 (A) It is a legal parcel or parcels located in a city if, and only
line 12 if, the city boundaries include some portion of either an urbanized
line 13 area or urban cluster, as designated by the United States Census
line 14 Bureau, or, for unincorporated areas, a legal parcel or parcels
line 15 wholly within the boundaries of an urbanized area or urban cluster,
line 16 as designated by the United States Census Bureau.
line 17 (B) At least 75 percent of the perimeter of the site adjoins parcels
line 18 that are developed with urban uses. For the purposes of this section,
line 19 parcels that are only separated by a street or highway shall be
line 20 considered to be adjoined.
line 21 (C) (i) A site that meets the requirements of clause (ii) and
line 22 satisfies any of the following:
line 23 (I) The site is zoned for residential use or residential mixed-use
line 24 development.
line 25 (II) The site has a general plan designation that allows residential
line 26 use or a mix of residential and nonresidential uses.
line 27 (III) The site is zoned for office or retail commercial use and
line 28 has had no commercial tenants on 50 percent or more of its total
line 29 usable net interior square footage for a period of at least three years
line 30 prior to the submission of the application.
line 31 (D) It is zoned for residential use or residential mixed-use
line 32 development, or has a general plan designation that allows
line 33 residential use or a mix of residential and nonresidential uses, and
line 34 at least
line 35 (ii) At least two-thirds of the square footage of the development
line 36 is designated for residential use. Additional density, floor area,
line 37 and units, and any other concession, incentive, or waiver of
line 38 development standards granted pursuant to the Density Bonus Law
line 39 in Section 65915 shall be included in the square footage
line 40 calculation. The square footage of the development shall not
98
— 12 — SB 6
line 1 include underground space, such as basements or underground
line 2 parking garages.
line 3 (3) (A) The development proponent has committed to record,
line 4 prior to the issuance of the first building permit, a land use
line 5 restriction or covenant providing that any lower or moderate
line 6 income housing units required pursuant to subparagraph (B) of
line 7 paragraph (4) shall remain available at affordable housing costs
line 8 or rent to persons and families of lower or moderate income for
line 9 no less than the following periods of time:
line 10 (i) Fifty-five years for units that are rented.
line 11 (ii) Forty-five years for units that are owned.
line 12 (B) The city or county shall require the recording of covenants
line 13 or restrictions implementing this paragraph for each parcel or unit
line 14 of real property included in the development.
line 15 (4) The development satisfies subparagraphs (A) and (B) below:
line 16 (A) Is located in a locality that the department has determined
line 17 is subject to this subparagraph on the basis that the number of units
line 18 that have been issued building permits, as shown on the most recent
line 19 production report received by the department, is less than the
line 20 locality’s share of the regional housing needs, by income category,
line 21 for that reporting period. A locality shall remain eligible under
line 22 this subparagraph until the department’s determination for the next
line 23 reporting period.
line 24 (B) The development is subject to a requirement mandating a
line 25 minimum percentage of below market rate housing based on one
line 26 of the following:
line 27 (i) The locality did not submit its latest production report to the
line 28 department by the time period required by Section 65400, or that
line 29 production report reflects that there were fewer units of above
line 30 moderate-income housing issued building permits than were
line 31 required for the regional housing needs assessment cycle for that
line 32 reporting period. In addition, if the project contains more than 10
line 33 units of housing, the project does either of the following:
line 34 (I) The project dedicates a minimum of 10 percent of the total
line 35 number of units to housing affordable to households making at or
line 36 below 80 percent of the area median income. However, if the
line 37 locality has adopted a local ordinance that requires that greater
line 38 than 10 percent of the units be dedicated to housing affordable to
line 39 households making below 80 percent of the area median income,
line 40 that local ordinance applies.
98
SB 6 — 13 —
line 1 (II) (ia) If the project is located within the San Francisco Bay
line 2 area, the project, in lieu of complying with subclause (I), dedicates
line 3 20 percent of the total number of units to housing affordable to
line 4 households making below 120 percent of the area median income
line 5 with the average income of the units at or below 100 percent of
line 6 the area median income. However, a local ordinance adopted by
line 7 the locality applies if it requires greater than 20 percent of the units
line 8 be dedicated to housing affordable to households making at or
line 9 below 120 percent of the area median income, or requires that any
line 10 of the units be dedicated at a level deeper than 120 percent. In
line 11 order to comply with this subclause, the rent or sale price charged
line 12 for units that are dedicated to housing affordable to households
line 13 between 80 percent and 120 percent of the area median income
line 14 shall not exceed 30 percent of the gross income of the household.
line 15 (ib) For purposes of this subclause, “San Francisco Bay area”
line 16 means the entire area within the territorial boundaries of the
line 17 Counties of Alameda, Contra Costa, Marin, Napa, San Mateo,
line 18 Santa Clara, Solano, and Sonoma, and the City and County of San
line 19 Francisco.
line 20 (ii) The locality’s latest production report reflects that there
line 21 were fewer units of housing issued building permits affordable to
line 22 either very low income or low-income households by income
line 23 category than were required for the regional housing needs
line 24 assessment cycle for that reporting period, and the project seeking
line 25 approval dedicates 50 percent of the total number of units to
line 26 housing affordable to households making at or below 80 percent
line 27 of the area median income. However, if the locality has adopted
line 28 a local ordinance that requires that greater than 50 percent of the
line 29 units be dedicated to housing affordable to households making at
line 30 or below 80 percent of the area median income, that local ordinance
line 31 applies.
line 32 (iii) The locality did not submit its latest production report to
line 33 the department by the time period required by Section 65400, or
line 34 if the production report reflects that there were fewer units of
line 35 housing affordable to both income levels described in clauses (i)
line 36 and (ii) that were issued building permits than were required for
line 37 the regional housing needs assessment cycle for that reporting
line 38 period, the project seeking approval may choose between utilizing
line 39 clause (i) or (ii).
98
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line 1 (C) (i) A development proponent that uses a unit of affordable
line 2 housing to satisfy the requirements of subparagraph (B) may also
line 3 satisfy any other local or state requirement for affordable housing,
line 4 including local ordinances or the Density Bonus Law in Section
line 5 65915, provided that the development proponent complies with
line 6 the applicable requirements in the state or local law.
line 7 (ii) A development proponent that uses a unit of affordable
line 8 housing to satisfy any other state or local affordability requirement
line 9 may also satisfy the requirements of subparagraph (B), provided
line 10 that the development proponent complies with applicable
line 11 requirements of subparagraph (B).
line 12 (iii) A development proponent may satisfy the affordability
line 13 requirements of subparagraph (B) with a unit that is restricted to
line 14 households with incomes lower than the applicable income limits
line 15 required in subparagraph (B).
line 16 (5) The development, excluding any additional density or any
line 17 other concessions, incentives, or waivers of development standards
line 18 granted pursuant to the Density Bonus Law in Section 65915, is
line 19 consistent with objective zoning standards, objective subdivision
line 20 standards, and objective design review standards in effect at the
line 21 time that the development is submitted to the local government
line 22 pursuant to this section, or at the time a notice of intent is submitted
line 23 pursuant to subdivision (b), whichever occurs earlier. For purposes
line 24 of this paragraph, “objective zoning standards,” “objective
line 25 subdivision standards,” and “objective design review standards”
line 26 mean standards that involve no personal or subjective judgment
line 27 by a public official and are uniformly verifiable by reference to
line 28 an external and uniform benchmark or criterion available and
line 29 knowable by both the development applicant or proponent and the
line 30 public official before submittal. These standards may be embodied
line 31 in alternative objective land use specifications adopted by a city
line 32 or county, and may include, but are not limited to, housing overlay
line 33 zones, specific plans, inclusionary zoning ordinances, and density
line 34 bonus ordinances, subject to the following:
line 35 (A) A development shall be deemed consistent with the objective
line 36 zoning standards related to housing density, as applicable, if the
line 37 density proposed is compliant with the maximum density allowed
line 38 within that land use designation, notwithstanding any specified
line 39 maximum unit allocation that may result in fewer units of housing
line 40 being permitted.
98
SB 6 — 15 —
line 1 (B) In the event that objective zoning, general plan, subdivision,
line 2 or design review standards are mutually inconsistent, a
line 3 development shall be deemed consistent with the objective zoning
line 4 and subdivision standards pursuant to this subdivision if the
line 5 development is consistent with the standards set forth in the general
line 6 plan.
line 7 (C) It is the intent of the Legislature that the objective zoning
line 8 standards, objective subdivision standards, and objective design
line 9 review standards described in this paragraph be adopted or
line 10 amended in compliance with the requirements of Chapter 905 of
line 11 the Statutes of 2004.
line 12 (D) The amendments to this subdivision made by the act adding
line 13 this subparagraph do not constitute a change in, but are declaratory
line 14 of, existing law.
line 15 (E) A project located on a neighborhood lot, as defined in Section
line 16 65852.23, shall be deemed consistent with objective zoning
line 17 standards, objective design standards, and objective subdivision
line 18 standards if the project is consistent with the provisions of
line 19 subdivision (b) of Section 65852.23 and if none of the square
line 20 footage in the project is designated for hotel, motel, bed and
line 21 breakfast inn, or other transient lodging use, except for a residential
line 22 hotel. For purposes of this subdivision, “residential hotel” shall
line 23 have the same meaning as defined in Section 50519 of the Health
line 24 and Safety Code.
line 25 (6) The development is not located on a site that is any of the
line 26 following:
line 27 (A) A coastal zone, as defined in Division 20 (commencing
line 28 with Section 30000) of the Public Resources Code.
line 29 (B) Either prime farmland or farmland of statewide importance,
line 30 as defined pursuant to United States Department of Agriculture
line 31 land inventory and monitoring criteria, as modified for California,
line 32 and designated on the maps prepared by the Farmland Mapping
line 33 and Monitoring Program of the Department of Conservation, or
line 34 land zoned or designated for agricultural protection or preservation
line 35 by a local ballot measure that was approved by the voters of that
line 36 jurisdiction.
line 37 (C) Wetlands, as defined in the United States Fish and Wildlife
line 38 Service Manual, Part 660 FW 2 (June 21, 1993).
line 39 (D) Within a very high fire hazard severity zone, as determined
line 40 by the Department of Forestry and Fire Protection pursuant to
98
— 16 — SB 6
line 1 Section 51178, or within a high or very high fire hazard severity
line 2 zone as indicated on maps adopted by the Department of Forestry
line 3 and Fire Protection pursuant to Section 4202 of the Public
line 4 Resources Code. This subparagraph does not apply to sites
line 5 excluded from the specified hazard zones by a local agency,
line 6 pursuant to subdivision (b) of Section 51179, or sites that have
line 7 adopted fire hazard mitigation measures pursuant to existing
line 8 building standards or state fire mitigation measures applicable to
line 9 the development.
line 10 (E) A hazardous waste site that is listed pursuant to Section
line 11 65962.5 or a hazardous waste site designated by the Department
line 12 of Toxic Substances Control pursuant to Section 25356 of the
line 13 Health and Safety Code, unless the State Department of Public
line 14 Health, State Water Resources Control Board, or Department of
line 15 Toxic Substances Control has cleared the site for residential use
line 16 or residential mixed uses.
line 17 (F) Within a delineated earthquake fault zone as determined by
line 18 the State Geologist in any official maps published by the State
line 19 Geologist, unless the development complies with applicable seismic
line 20 protection building code standards adopted by the California
line 21 Building Standards Commission under the California Building
line 22 Standards Law (Part 2.5 (commencing with Section 18901) of
line 23 Division 13 of the Health and Safety Code), and by any local
line 24 building department under Chapter 12.2 (commencing with Section
line 25 8875) of Division 1 of Title 2.
line 26 (G) Within a special flood hazard area subject to inundation by
line 27 the 1 percent annual chance flood (100-year flood) as determined
line 28 by the Federal Emergency Management Agency in any official
line 29 maps published by the Federal Emergency Management Agency.
line 30 If a development proponent is able to satisfy all applicable federal
line 31 qualifying criteria in order to provide that the site satisfies this
line 32 subparagraph and is otherwise eligible for streamlined approval
line 33 under this section, a local government shall not deny the application
line 34 on the basis that the development proponent did not comply with
line 35 any additional permit requirement, standard, or action adopted by
line 36 that local government that is applicable to that site. A development
line 37 may be located on a site described in this subparagraph if either
line 38 of the following are met:
98
SB 6 — 17 —
line 1 (i) The site has been subject to a Letter of Map Revision
line 2 prepared by the Federal Emergency Management Agency and
line 3 issued to the local jurisdiction.
line 4 (ii) The site meets Federal Emergency Management Agency
line 5 requirements necessary to meet minimum flood plain management
line 6 criteria of the National Flood Insurance Program pursuant to Part
line 7 59 (commencing with Section 59.1) and Part 60 (commencing
line 8 with Section 60.1) of Subchapter B of Chapter I of Title 44 of the
line 9 Code of Federal Regulations.
line 10 (H) Within a regulatory floodway as determined by the Federal
line 11 Emergency Management Agency in any official maps published
line 12 by the Federal Emergency Management Agency, unless the
line 13 development has received a no-rise certification in accordance
line 14 with Section 60.3(d)(3) of Title 44 of the Code of Federal
line 15 Regulations. If a development proponent is able to satisfy all
line 16 applicable federal qualifying criteria in order to provide that the
line 17 site satisfies this subparagraph and is otherwise eligible for
line 18 streamlined approval under this section, a local government shall
line 19 not deny the application on the basis that the development
line 20 proponent did not comply with any additional permit requirement,
line 21 standard, or action adopted by that local government that is
line 22 applicable to that site.
line 23 (I) Lands identified for conservation in an adopted natural
line 24 community conservation plan pursuant to the Natural Community
line 25 Conservation Planning Act (Chapter 10 (commencing with Section
line 26 2800) of Division 3 of the Fish and Game Code), habitat
line 27 conservation plan pursuant to the federal Endangered Species Act
line 28 of 1973 (16 U.S.C. Sec. 1531 et seq.), or other adopted natural
line 29 resource protection plan.
line 30 (J) Habitat for protected species identified as candidate,
line 31 sensitive, or species of special status by state or federal agencies,
line 32 fully protected species, or species protected by the federal
line 33 Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.),
line 34 the California Endangered Species Act (Chapter 1.5 (commencing
line 35 with Section 2050) of Division 3 of the Fish and Game Code), or
line 36 the Native Plant Protection Act (Chapter 10 (commencing with
line 37 Section 1900) of Division 2 of the Fish and Game Code).
line 38 (K) Lands under conservation easement.
line 39 (7) The development is not located on a site where any of the
line 40 following apply:
98
— 18 — SB 6
line 1 (A) The development would require the demolition of the
line 2 following types of housing:
line 3 (i) Housing that is subject to a recorded covenant, ordinance,
line 4 or law that restricts rents to levels affordable to persons and
line 5 families of moderate, low, or very low income.
line 6 (ii) Housing that is subject to any form of rent or price control
line 7 through a public entity’s valid exercise of its police power.
line 8 (iii) Housing that has been occupied by tenants within the past
line 9 10 years.
line 10 (B) The site was previously used for housing that was occupied
line 11 by tenants that was demolished within 10 years before the
line 12 development proponent submits an application under this section.
line 13 (C) The development would require the demolition of a historic
line 14 structure that was placed on a national, state, or local historic
line 15 register.
line 16 (D) The property contains housing units that are occupied by
line 17 tenants, and units at the property are, or were, subsequently offered
line 18 for sale to the general public by the subdivider or subsequent owner
line 19 of the property.
line 20 (8) The development proponent has done both of the following,
line 21 as applicable:
line 22 (A) Certified to the locality that either of the following is true,
line 23 as applicable:
line 24 (i) The entirety of the development is a public work for purposes
line 25 of Chapter 1 (commencing with Section 1720) of Part 7 of Division
line 26 2 of the Labor Code.
line 27 (ii) If the development is not in its entirety a public work, that
line 28 all construction workers employed in the execution of the
line 29 development will be paid at least the general prevailing rate of per
line 30 diem wages for the type of work and geographic area, as
line 31 determined by the Director of Industrial Relations pursuant to
line 32 Sections 1773 and 1773.9 of the Labor Code, except that
line 33 apprentices registered in programs approved by the Chief of the
line 34 Division of Apprenticeship Standards may be paid at least the
line 35 applicable apprentice prevailing rate. If the development is subject
line 36 to this subparagraph, then for those portions of the development
line 37 that are not a public work all of the following shall apply:
line 38 (I) The development proponent shall ensure that the prevailing
line 39 wage requirement is included in all contracts for the performance
line 40 of the work.
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line 1 (II) All contractors and subcontractors shall pay to all
line 2 construction workers employed in the execution of the work at
line 3 least the general prevailing rate of per diem wages, except that
line 4 apprentices registered in programs approved by the Chief of the
line 5 Division of Apprenticeship Standards may be paid at least the
line 6 applicable apprentice prevailing rate.
line 7 (III) Except as provided in subclause (V), all contractors and
line 8 subcontractors shall maintain and verify payroll records pursuant
line 9 to Section 1776 of the Labor Code and make those records
line 10 available for inspection and copying as provided therein.
line 11 (IV) Except as provided in subclause (V), the obligation of the
line 12 contractors and subcontractors to pay prevailing wages may be
line 13 enforced by the Labor Commissioner through the issuance of a
line 14 civil wage and penalty assessment pursuant to Section 1741 of the
line 15 Labor Code, which may be reviewed pursuant to Section 1742 of
line 16 the Labor Code, within 18 months after the completion of the
line 17 development, by an underpaid worker through an administrative
line 18 complaint or civil action, or by a joint labor-management
line 19 committee through a civil action under Section 1771.2 of the Labor
line 20 Code. If a civil wage and penalty assessment is issued, the
line 21 contractor, subcontractor, and surety on a bond or bonds issued to
line 22 secure the payment of wages covered by the assessment shall be
line 23 liable for liquidated damages pursuant to Section 1742.1 of the
line 24 Labor Code.
line 25 (V) Subclauses (III) and (IV) shall not apply if all contractors
line 26 and subcontractors performing work on the development are subject
line 27 to a project labor agreement that requires the payment of prevailing
line 28 wages to all construction workers employed in the execution of
line 29 the development and provides for enforcement of that obligation
line 30 through an arbitration procedure. For purposes of this clause,
line 31 “project labor agreement” has the same meaning as set forth in
line 32 paragraph (1) of subdivision (b) of Section 2500 of the Public
line 33 Contract Code.
line 34 (VI) Notwithstanding subdivision (c) of Section 1773.1 of the
line 35 Labor Code, the requirement that employer payments not reduce
line 36 the obligation to pay the hourly straight time or overtime wages
line 37 found to be prevailing shall not apply if otherwise provided in a
line 38 bona fide collective bargaining agreement covering the worker.
line 39 The requirement to pay at least the general prevailing rate of per
line 40 diem wages does not preclude use of an alternative workweek
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line 1 schedule adopted pursuant to Section 511 or 514 of the Labor
line 2 Code.
line 3 (B) (i) For developments for which any of the following
line 4 conditions apply, certified that a skilled and trained workforce
line 5 shall be used to complete the development if the application is
line 6 approved:
line 7 (I) On and after January 1, 2018, until December 31, 2021, the
line 8 development consists of 75 or more units with a residential
line 9 component that is not 100 percent subsidized affordable housing
line 10 and will be located within a jurisdiction located in a coastal or bay
line 11 county with a population of 225,000 or more.
line 12 (II) On and after January 1, 2022, until December 31, 2025, the
line 13 development consists of 50 or more units with a residential
line 14 component that is not 100 percent subsidized affordable housing
line 15 and will be located within a jurisdiction located in a coastal or bay
line 16 county with a population of 225,000 or more.
line 17 (III) On and after January 1, 2018, until December 31, 2019,
line 18 the development consists of 75 or more units with a residential
line 19 component that is not 100 percent subsidized affordable housing
line 20 and will be located within a jurisdiction with a population of fewer
line 21 than 550,000 and that is not located in a coastal or bay county.
line 22 (IV) On and after January 1, 2020, until December 31, 2021,
line 23 the development consists of more than 50 units with a residential
line 24 component that is not 100 percent subsidized affordable housing
line 25 and will be located within a jurisdiction with a population of fewer
line 26 than 550,000 and that is not located in a coastal or bay county.
line 27 (V) On and after January 1, 2022, until December 31, 2025, the
line 28 development consists of more than 25 units with a residential
line 29 component that is not 100 percent subsidized affordable housing
line 30 and will be located within a jurisdiction with a population of fewer
line 31 than 550,000 and that is not located in a coastal or bay county.
line 32 (ii) For purposes of this section, “skilled and trained workforce”
line 33 has the same meaning as provided in Chapter 2.9 (commencing
line 34 with Section 2600) of Part 1 of Division 2 of the Public Contract
line 35 Code.
line 36 (iii) If the development proponent has certified that a skilled
line 37 and trained workforce will be used to complete the development
line 38 and the application is approved, the following shall apply:
line 39 (I) The applicant shall require in all contracts for the
line 40 performance of work that every contractor and subcontractor at
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SB 6 — 21 —
line 1 every tier will individually use a skilled and trained workforce to
line 2 complete the development.
line 3 (II) Every contractor and subcontractor shall use a skilled and
line 4 trained workforce to complete the development.
line 5 (III) Except as provided in subclause (IV), the applicant shall
line 6 provide to the locality, on a monthly basis while the development
line 7 or contract is being performed, a report demonstrating compliance
line 8 with Chapter 2.9 (commencing with Section 2600) of Part 1 of
line 9 Division 2 of the Public Contract Code. A monthly report provided
line 10 to the locality pursuant to this subclause shall be a public record
line 11 under the California Public Records Act (Chapter 3.5 (commencing
line 12 with Section 6250) of Division 7 of Title 1) and shall be open to
line 13 public inspection. An applicant that fails to provide a monthly
line 14 report demonstrating compliance with Chapter 2.9 (commencing
line 15 with Section 2600) of Part 1 of Division 2 of the Public Contract
line 16 Code shall be subject to a civil penalty of ten thousand dollars
line 17 ($10,000) per month for each month for which the report has not
line 18 been provided. Any contractor or subcontractor that fails to use a
line 19 skilled and trained workforce shall be subject to a civil penalty of
line 20 two hundred dollars ($200) per day for each worker employed in
line 21 contravention of the skilled and trained workforce requirement.
line 22 Penalties may be assessed by the Labor Commissioner within 18
line 23 months of completion of the development using the same
line 24 procedures for issuance of civil wage and penalty assessments
line 25 pursuant to Section 1741 of the Labor Code, and may be reviewed
line 26 pursuant to the same procedures in Section 1742 of the Labor
line 27 Code. Penalties shall be paid to the State Public Works
line 28 Enforcement Fund.
line 29 (IV) Subclause (III) shall not apply if all contractors and
line 30 subcontractors performing work on the development are subject
line 31 to a project labor agreement that requires compliance with the
line 32 skilled and trained workforce requirement and provides for
line 33 enforcement of that obligation through an arbitration procedure.
line 34 For purposes of this subparagraph, “project labor agreement” has
line 35 the same meaning as set forth in paragraph (1) of subdivision (b)
line 36 of Section 2500 of the Public Contract Code.
line 37 (C) Notwithstanding subparagraphs (A) and (B), a development
line 38 that is subject to approval pursuant to this section is exempt from
line 39 any requirement to pay prevailing wages or use a skilled and
line 40 trained workforce if it meets both of the following:
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line 1 (i) The project includes 10 or fewer units.
line 2 (ii) The project is not a public work for purposes of Chapter 1
line 3 (commencing with Section 1720) of Part 7 of Division 2 of the
line 4 Labor Code.
line 5 (9) The development did not or does not involve a subdivision
line 6 of a parcel that is, or, notwithstanding this section, would otherwise
line 7 be, subject to the Subdivision Map Act (Division 2 (commencing
line 8 with Section 66410)) or any other applicable law authorizing the
line 9 subdivision of land, unless the development is consistent with all
line 10 objective subdivision standards in the local subdivision ordinance,
line 11 and either of the following apply:
line 12 (A) The development has received or will receive financing or
line 13 funding by means of a low-income housing tax credit and is subject
line 14 to the requirement that prevailing wages be paid pursuant to
line 15 subparagraph (A) of paragraph (8).
line 16 (B) The development is subject to the requirement that
line 17 prevailing wages be paid, and a skilled and trained workforce used,
line 18 pursuant to paragraph (8).
line 19 (10) The development shall not be upon an existing parcel of
line 20 land or site that is governed under the Mobilehome Residency Law
line 21 (Chapter 2.5 (commencing with Section 798) of Title 2 of Part 2
line 22 of Division 2 of the Civil Code), the Recreational Vehicle Park
line 23 Occupancy Law (Chapter 2.6 (commencing with Section 799.20)
line 24 of Title 2 of Part 2 of Division 2 of the Civil Code), the
line 25 Mobilehome Parks Act (Part 2.1 (commencing with Section 18200)
line 26 of Division 13 of the Health and Safety Code), or the Special
line 27 Occupancy Parks Act (Part 2.3 (commencing with Section 18860)
line 28 of Division 13 of the Health and Safety Code).
line 29 (b) (1) (A) (i) Before submitting an application for a
line 30 development subject to the streamlined, ministerial approval
line 31 process described in subdivision (c), the development proponent
line 32 shall submit to the local government a notice of its intent to submit
line 33 an application. The notice of intent shall be in the form of a
line 34 preliminary application that includes all of the information
line 35 described in Section 65941.1, as that section read on January 1,
line 36 2020.
line 37 (ii) Upon receipt of a notice of intent to submit an application
line 38 described in clause (i), the local government shall engage in a
line 39 scoping consultation regarding the proposed development with
line 40 any California Native American tribe that is traditionally and
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SB 6 — 23 —
line 1 culturally affiliated with the geographic area, as described in
line 2 Section 21080.3.1 of the Public Resources Code, of the proposed
line 3 development. In order to expedite compliance with this subdivision,
line 4 the local government shall contact the Native American Heritage
line 5 Commission for assistance in identifying any California Native
line 6 American tribe that is traditionally and culturally affiliated with
line 7 the geographic area of the proposed development.
line 8 (iii) The timeline for noticing and commencing a scoping
line 9 consultation in accordance with this subdivision shall be as follows:
line 10 (I) The local government shall provide a formal notice of a
line 11 development proponent’s notice of intent to submit an application
line 12 described in clause (i) to each California Native American tribe
line 13 that is traditionally and culturally affiliated with the geographic
line 14 area of the proposed development within 30 days of receiving that
line 15 notice of intent. The formal notice provided pursuant to this
line 16 subclause shall include all of the following:
line 17 (ia) A description of the proposed development.
line 18 (ib) The location of the proposed development.
line 19 (ic) An invitation to engage in a scoping consultation in
line 20 accordance with this subdivision.
line 21 (II) Each California Native American tribe that receives a formal
line 22 notice pursuant to this clause shall have 30 days from the receipt
line 23 of that notice to accept the invitation to engage in a scoping
line 24 consultation.
line 25 (III) If the local government receives a response accepting an
line 26 invitation to engage in a scoping consultation pursuant to this
line 27 subdivision, the local government shall commence the scoping
line 28 consultation within 30 days of receiving that response.
line 29 (B) The scoping consultation shall recognize that California
line 30 Native American tribes traditionally and culturally affiliated with
line 31 a geographic area have knowledge and expertise concerning the
line 32 resources at issue and shall take into account the cultural
line 33 significance of the resource to the culturally affiliated California
line 34 Native American tribe.
line 35 (C) The parties to a scoping consultation conducted pursuant
line 36 to this subdivision shall be the local government and any California
line 37 Native American tribe traditionally and culturally affiliated with
line 38 the geographic area of the proposed development. More than one
line 39 California Native American tribe traditionally and culturally
line 40 affiliated with the geographic area of the proposed development
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line 1 may participate in the scoping consultation. However, the local
line 2 government, upon the request of any California Native American
line 3 tribe traditionally and culturally affiliated with the geographic area
line 4 of the proposed development, shall engage in a separate scoping
line 5 consultation with that California Native American tribe. The
line 6 development proponent and its consultants may participate in a
line 7 scoping consultation process conducted pursuant to this subdivision
line 8 if all of the following conditions are met:
line 9 (i) The development proponent and its consultants agree to
line 10 respect the principles set forth in this subdivision.
line 11 (ii) The development proponent and its consultants engage in
line 12 the scoping consultation in good faith.
line 13 (iii) The California Native American tribe participating in the
line 14 scoping consultation approves the participation of the development
line 15 proponent and its consultants. The California Native American
line 16 tribe may rescind its approval at any time during the scoping
line 17 consultation, either for the duration of the scoping consultation or
line 18 with respect to any particular meeting or discussion held as part
line 19 of the scoping consultation.
line 20 (D) The participants to a scoping consultation pursuant to this
line 21 subdivision shall comply with all of the following confidentiality
line 22 requirements:
line 23 (i) Subdivision (r) of Section 6254.
line 24 (ii) Section 6254.10.
line 25 (iii) Subdivision (c) of Section 21082.3 of the Public Resources
line 26 Code.
line 27 (iv) Subdivision (d) of Section 15120 of Title 14 of the
line 28 California Code of Regulations.
line 29 (v) Any additional confidentiality standards adopted by the
line 30 California Native American tribe participating in the scoping
line 31 consultation.
line 32 (E) The California Environmental Quality Act (Division 13
line 33 (commencing with Section 21000) of the Public Resources Code)
line 34 shall not apply to a scoping consultation conducted pursuant to
line 35 this subdivision.
line 36 (2) (A) If, after concluding the scoping consultation, the parties
line 37 find that no potential tribal cultural resource would be affected by
line 38 the proposed development, the development proponent may submit
line 39 an application for the proposed development that is subject to the
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SB 6 — 25 —
line 1 streamlined, ministerial approval process described in subdivision
line 2 (c).
line 3 (B) If, after concluding the scoping consultation, the parties
line 4 find that a potential tribal cultural resource could be affected by
line 5 the proposed development and an enforceable agreement is
line 6 documented between the California Native American tribe and the
line 7 local government on methods, measures, and conditions for tribal
line 8 cultural resource treatment, the development proponent may submit
line 9 the application for a development subject to the streamlined,
line 10 ministerial approval process described in subdivision (c). The local
line 11 government shall ensure that the enforceable agreement is included
line 12 in the requirements and conditions for the proposed development.
line 13 (C) If, after concluding the scoping consultation, the parties
line 14 find that a potential tribal cultural resource could be affected by
line 15 the proposed development and an enforceable agreement is not
line 16 documented between the California Native American tribe and the
line 17 local government regarding methods, measures, and conditions
line 18 for tribal cultural resource treatment, the development shall not
line 19 be eligible for the streamlined, ministerial approval process
line 20 described in subdivision (c).
line 21 (D) For purposes of this paragraph, a scoping consultation shall
line 22 be deemed to be concluded if either of the following occur:
line 23 (i) The parties to the scoping consultation document an
line 24 enforceable agreement concerning methods, measures, and
line 25 conditions to avoid or address potential impacts to tribal cultural
line 26 resources that are or may be present.
line 27 (ii) One or more parties to the scoping consultation, acting in
line 28 good faith and after reasonable effort, conclude that a mutual
line 29 agreement on methods, measures, and conditions to avoid or
line 30 address impacts to tribal cultural resources that are or may be
line 31 present cannot be reached.
line 32 (E) If the development or environmental setting substantially
line 33 changes after the completion of the scoping consultation, the local
line 34 government shall notify the California Native American tribe of
line 35 the changes and engage in a subsequent scoping consultation if
line 36 requested by the California Native American tribe.
line 37 (3) A local government may only accept an application for
line 38 streamlined, ministerial approval pursuant to this section if one of
line 39 the following applies:
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line 1 (A) A California Native American tribe that received a formal
line 2 notice of the development proponent’s notice of intent to submit
line 3 an application pursuant to subclause (I) of clause (iii) of
line 4 subparagraph (A) of paragraph (1) did not accept the invitation to
line 5 engage in a scoping consultation.
line 6 (B) The California Native American tribe accepted an invitation
line 7 to engage in a scoping consultation pursuant to subclause (II) of
line 8 clause (iii) of subparagraph (A) of paragraph (1) but substantially
line 9 failed to engage in the scoping consultation after repeated
line 10 documented attempts by the local government to engage the
line 11 California Native American tribe.
line 12 (C) The parties to a scoping consultation pursuant to this
line 13 subdivision find that no potential tribal cultural resource will be
line 14 affected by the proposed development pursuant to subparagraph
line 15 (A) of paragraph (2).
line 16 (D) A scoping consultation between a California Native
line 17 American tribe and the local government has occurred in
line 18 accordance with this subdivision and resulted in agreement
line 19 pursuant to subparagraph (B) of paragraph (2).
line 20 (4) A project shall not be eligible for the streamlined, ministerial
line 21 process described in subdivision (c) if any of the following apply:
line 22 (A) There is a tribal cultural resource that is on a national, state,
line 23 tribal, or local historic register list located on the site of the project.
line 24 (B) There is a potential tribal cultural resource that could be
line 25 affected by the proposed development and the parties to a scoping
line 26 consultation conducted pursuant to this subdivision do not
line 27 document an enforceable agreement on methods, measures, and
line 28 conditions for tribal cultural resource treatment, as described in
line 29 subparagraph (C) of paragraph (2).
line 30 (C) The parties to a scoping consultation conducted pursuant
line 31 to this subdivision do not agree as to whether a potential tribal
line 32 cultural resource will be affected by the proposed development.
line 33 (5) (A) If, after a scoping consultation conducted pursuant to
line 34 this subdivision, a project is not eligible for the streamlined,
line 35 ministerial process described in subdivision (c) for any or all of
line 36 the following reasons, the local government shall provide written
line 37 documentation of that fact, and an explanation of the reason for
line 38 which the project is not eligible, to the development proponent
line 39 and to any California Native American tribe that is a party to that
line 40 scoping consultation:
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SB 6 — 27 —
line 1 (i) There is a tribal cultural resource that is on a national, state,
line 2 tribal, or local historic register list located on the site of the project,
line 3 as described in subparagraph (A) of paragraph (4).
line 4 (ii) The parties to the scoping consultation have not documented
line 5 an enforceable agreement on methods, measures, and conditions
line 6 for tribal cultural resource treatment, as described in subparagraph
line 7 (C) of paragraph (2) and subparagraph (B) of paragraph (4).
line 8 (iii) The parties to the scoping consultation do not agree as to
line 9 whether a potential tribal cultural resource will be affected by the
line 10 proposed development, as described in subparagraph (C) of
line 11 paragraph (4).
line 12 (B) The written documentation provided to a development
line 13 proponent pursuant to this paragraph shall include information on
line 14 how the development proponent may seek a conditional use permit
line 15 or other discretionary approval of the development from the local
line 16 government.
line 17 (6) This section is not intended, and shall not be construed, to
line 18 limit consultation and discussion between a local government and
line 19 a California Native American tribe pursuant to other applicable
line 20 law, confidentiality provisions under other applicable law, the
line 21 protection of religious exercise to the fullest extent permitted under
line 22 state and federal law, or the ability of a California Native American
line 23 tribe to submit information to the local government or participate
line 24 in any process of the local government.
line 25 (7) For purposes of this subdivision:
line 26 (A) “Consultation” means the meaningful and timely process
line 27 of seeking, discussing, and considering carefully the views of
line 28 others, in a manner that is cognizant of all parties’ cultural values
line 29 and, where feasible, seeking agreement. Consultation between
line 30 local governments and California Native American tribes shall be
line 31 conducted in a way that is mutually respectful of each party’s
line 32 sovereignty. Consultation shall also recognize the tribes’ potential
line 33 needs for confidentiality with respect to places that have traditional
line 34 tribal cultural importance. A lead agency shall consult the tribal
line 35 consultation best practices described in the “State of California
line 36 Tribal Consultation Guidelines: Supplement to the General Plan
line 37 Guidelines” prepared by the Office of Planning and Research.
line 38 (B) “Scoping” means the act of participating in early discussions
line 39 or investigations between the local government and California
line 40 Native American tribe, and the development proponent if
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line 1 authorized by the California Native American tribe, regarding the
line 2 potential effects a proposed development could have on a potential
line 3 tribal cultural resource, as defined in Section 21074 of the Public
line 4 Resources Code, or California Native American tribe, as defined
line 5 in Section 21073 of the Public Resources Code.
line 6 (8) This subdivision shall not apply to any project that has been
line 7 approved under the streamlined, ministerial approval process
line 8 provided under this section before the effective date of the act
line 9 adding this subdivision.
line 10 (c) (1) If a local government determines that a development
line 11 submitted pursuant to this section is in conflict with any of the
line 12 objective planning standards specified in subdivision (a), it shall
line 13 provide the development proponent written documentation of
line 14 which standard or standards the development conflicts with, and
line 15 an explanation for the reason or reasons the development conflicts
line 16 with that standard or standards, as follows:
line 17 (A) Within 60 days of submittal of the development to the local
line 18 government pursuant to this section if the development contains
line 19 150 or fewer housing units.
line 20 (B) Within 90 days of submittal of the development to the local
line 21 government pursuant to this section if the development contains
line 22 more than 150 housing units.
line 23 (2) If the local government fails to provide the required
line 24 documentation pursuant to paragraph (1), the development shall
line 25 be deemed to satisfy the objective planning standards specified in
line 26 subdivision (a).
line 27 (3) For purposes of this section, a development is consistent
line 28 with the objective planning standards specified in subdivision (a)
line 29 if there is substantial evidence that would allow a reasonable person
line 30 to conclude that the development is consistent with the objective
line 31 planning standards.
line 32 (d) (1) Any design review or public oversight of the
line 33 development may be conducted by the local government’s planning
line 34 commission or any equivalent board or commission responsible
line 35 for review and approval of development projects, or the city council
line 36 or board of supervisors, as appropriate. That design review or
line 37 public oversight shall be objective and be strictly focused on
line 38 assessing compliance with criteria required for streamlined projects,
line 39 as well as any reasonable objective design standards published
line 40 and adopted by ordinance or resolution by a local jurisdiction
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SB 6 — 29 —
line 1 before submission of a development application, and shall be
line 2 broadly applicable to development within the jurisdiction. That
line 3 design review or public oversight shall be completed as follows
line 4 and shall not in any way inhibit, chill, or preclude the ministerial
line 5 approval provided by this section or its effect, as applicable:
line 6 (A) Within 90 days of submittal of the development to the local
line 7 government pursuant to this section if the development contains
line 8 150 or fewer housing units.
line 9 (B) Within 180 days of submittal of the development to the
line 10 local government pursuant to this section if the development
line 11 contains more than 150 housing units.
line 12 (2) If the development is consistent with the requirements of
line 13 subparagraph (A) or (B) of paragraph (9) of subdivision (a) and
line 14 is consistent with all objective subdivision standards in the local
line 15 subdivision ordinance, an application for a subdivision pursuant
line 16 to the Subdivision Map Act (Division 2 (commencing with Section
line 17 66410)) shall be exempt from the requirements of the California
line 18 Environmental Quality Act (Division 13 (commencing with Section
line 19 21000) of the Public Resources Code) and shall be subject to the
line 20 public oversight timelines set forth in paragraph (1).
line 21 (e) (1) Notwithstanding any other law, a local government,
line 22 whether or not it has adopted an ordinance governing automobile
line 23 parking requirements in multifamily developments, shall not
line 24 impose automobile parking standards for a streamlined
line 25 development that was approved pursuant to this section in any of
line 26 the following instances:
line 27 (A) The development is located within one-half mile of public
line 28 transit.
line 29 (B) The development is located within an architecturally and
line 30 historically significant historic district.
line 31 (C) When on-street parking permits are required but not offered
line 32 to the occupants of the development.
line 33 (D) When there is a car share vehicle located within one block
line 34 of the development.
line 35 (2) If the development does not fall within any of the categories
line 36 described in paragraph (1), the local government shall not impose
line 37 automobile parking requirements for streamlined developments
line 38 approved pursuant to this section that exceed one parking space
line 39 per unit.
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line 1 (f) (1) If a local government approves a development pursuant
line 2 to this section, then, notwithstanding any other law, that approval
line 3 shall not expire if the project includes public investment in housing
line 4 affordability, beyond tax credits, where 50 percent of the units are
line 5 affordable to households making at or below 80 percent of the area
line 6 median income.
line 7 (2) (A) If a local government approves a development pursuant
line 8 to this section and the project does not include 50 percent of the
line 9 units affordable to households making at or below 80 percent of
line 10 the area median income, that approval shall remain valid for three
line 11 years from the date of the final action establishing that approval,
line 12 or if litigation is filed challenging that approval, from the date of
line 13 the final judgment upholding that approval. Approval shall remain
line 14 valid for a project provided that vertical construction of the
line 15 development has begun and is in progress. For purposes of this
line 16 subdivision, “in progress” means one of the following:
line 17 (i) The construction has begun and has not ceased for more than
line 18 180 days.
line 19 (ii) If the development requires multiple building permits, an
line 20 initial phase has been completed, and the project proponent has
line 21 applied for and is diligently pursuing a building permit for a
line 22 subsequent phase, provided that once it has been issued, the
line 23 building permit for the subsequent phase does not lapse.
line 24 (B) Notwithstanding subparagraph (A), a local government may
line 25 grant a project a one-time, one-year extension if the project
line 26 proponent can provide documentation that there has been
line 27 significant progress toward getting the development construction
line 28 ready, such as filing a building permit application.
line 29 (3) If a local government approves a development pursuant to
line 30 this section, that approval shall remain valid for three years from
line 31 the date of the final action establishing that approval and shall
line 32 remain valid thereafter for a project so long as vertical construction
line 33 of the development has begun and is in progress. Additionally, the
line 34 development proponent may request, and the local government
line 35 shall have discretion to grant, an additional one-year extension to
line 36 the original three-year period. The local government’s action and
line 37 discretion in determining whether to grant the foregoing extension
line 38 shall be limited to considerations and processes set forth in this
line 39 section.
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SB 6 — 31 —
line 1 (g) (1) (A) A development proponent may request a
line 2 modification to a development that has been approved under the
line 3 streamlined, ministerial approval process provided in subdivision
line 4 (b) if that request is submitted to the local government before the
line 5 issuance of the final building permit required for construction of
line 6 the development.
line 7 (B) Except as provided in paragraph (3), the local government
line 8 shall approve a modification if it determines that the modification
line 9 is consistent with the objective planning standards specified in
line 10 subdivision (a) that were in effect when the original development
line 11 application was first submitted.
line 12 (C) The local government shall evaluate any modifications
line 13 requested pursuant to this subdivision for consistency with the
line 14 objective planning standards using the same assumptions and
line 15 analytical methodology that the local government originally used
line 16 to assess consistency for the development that was approved for
line 17 streamlined, ministerial approval pursuant to subdivision (b).
line 18 (D) A guideline that was adopted or amended by the department
line 19 pursuant to subdivision (j) after a development was approved
line 20 through the streamlined ministerial approval process described in
line 21 subdivision (b) shall not be used as a basis to deny proposed
line 22 modifications.
line 23 (2) Upon receipt of the developmental proponent’s application
line 24 requesting a modification, the local government shall determine
line 25 if the requested modification is consistent with the objective
line 26 planning standard and either approve or deny the modification
line 27 request within 60 days after submission of the modification, or
line 28 within 90 days if design review is required.
line 29 (3) Notwithstanding paragraph (1), the local government may
line 30 apply objective planning standards adopted after the development
line 31 application was first submitted to the requested modification in
line 32 any of the following instances:
line 33 (A) The development is revised such that the total number of
line 34 residential units or total square footage of construction changes
line 35 by 15 percent or more.
line 36 (B) The development is revised such that the total number of
line 37 residential units or total square footage of construction changes
line 38 by 5 percent or more and it is necessary to subject the development
line 39 to an objective standard beyond those in effect when the
line 40 development application was submitted in order to mitigate or
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line 1 avoid a specific, adverse impact, as that term is defined in
line 2 subparagraph (A) of paragraph (1) of subdivision (j) of Section
line 3 65589.5, upon the public health or safety and there is no feasible
line 4 alternative method to satisfactorily mitigate or avoid the adverse
line 5 impact.
line 6 (C) Objective building standards contained in the California
line 7 Building Standards Code (Title 24 of the California Code of
line 8 Regulations), including, but not limited to, building building,
line 9 plumbing, electrical, fire, and grading codes, may be applied to
line 10 all modifications.
line 11 (4) The local government’s review of a modification request
line 12 pursuant to this subdivision shall be strictly limited to determining
line 13 whether the modification, including any modification to previously
line 14 approved density bonus concessions or waivers, modify the
line 15 development’s consistency with the objective planning standards
line 16 and shall not reconsider prior determinations that are not affected
line 17 by the modification.
line 18 (h) (1) A local government shall not adopt or impose any
line 19 requirement, including, but not limited to, increased fees or
line 20 inclusionary housing requirements, that applies to a project solely
line 21 or partially on the basis that the project is eligible to receive
line 22 ministerial or streamlined approval pursuant to this section.
line 23 (2) A local government shall issue a subsequent permit required
line 24 for a development approved under this section if the application
line 25 substantially complies with the development as it was approved
line 26 pursuant to subdivision (c). Upon receipt of an application for a
line 27 subsequent permit, the local government shall process the permit
line 28 without unreasonable delay and shall not impose any procedure
line 29 or requirement that is not imposed on projects that are not approved
line 30 pursuant to this section. Issuance of subsequent permits shall
line 31 implement the approved development, and review of the permit
line 32 application shall not inhibit, chill, or preclude the development.
line 33 For purposes of this paragraph, a “subsequent permit” means a
line 34 permit required subsequent to receiving approval under subdivision
line 35 (c), and includes, but is not limited to, demolition, grading,
line 36 encroachment, and building permits and final maps, if necessary.
line 37 (3) (A) If a public improvement is necessary to implement a
line 38 development that is subject to the streamlined, ministerial approval
line 39 pursuant to this section, including, but not limited to, a bicycle
line 40 lane, sidewalk or walkway, public transit stop, driveway, street
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SB 6 — 33 —
line 1 paving or overlay, a curb or gutter, a modified intersection, a street
line 2 sign or street light, landscape or hardscape, an above-ground or
line 3 underground utility connection, a water line, fire hydrant, storm
line 4 or sanitary sewer connection, retaining wall, and any related work,
line 5 and that public improvement is located on land owned by the local
line 6 government, to the extent that the public improvement requires
line 7 approval from the local government, the local government shall
line 8 not exercise its discretion over any approval relating to the public
line 9 improvement in a manner that would inhibit, chill, or preclude the
line 10 development.
line 11 (B) If an application for a public improvement described in
line 12 subparagraph (A) is submitted to a local government, the local
line 13 government shall do all of the following:
line 14 (i) Consider the application based upon any objective standards
line 15 specified in any state or local laws that were in effect when the
line 16 original development application was submitted.
line 17 (ii) Conduct its review and approval in the same manner as it
line 18 would evaluate the public improvement if required by a project
line 19 that is not eligible to receive ministerial or streamlined approval
line 20 pursuant to this section.
line 21 (C) If an application for a public improvement described in
line 22 subparagraph (A) is submitted to a local government, the local
line 23 government shall not do either of the following:
line 24 (i) Adopt or impose any requirement that applies to a project
line 25 solely or partially on the basis that the project is eligible to receive
line 26 ministerial or streamlined approval pursuant to this section.
line 27 (ii) Unreasonably delay in its consideration, review, or approval
line 28 of the application.
line 29 (i) (1) This section shall not affect a development proponent’s
line 30 ability to use any alternative streamlined by right permit processing
line 31 adopted by a local government, including the provisions of
line 32 subdivision (i) of Section 65583.2.
line 33 (2) This section shall not prevent a development from also
line 34 qualifying as a housing development project entitled to the
line 35 protections of Section 65589.5. This paragraph does not constitute
line 36 a change in, but is declaratory of, existing law.
line 37 (j) The California Environmental Quality Act (Division 13
line 38 (commencing with Section 21000) of the Public Resources Code)
line 39 does not apply to actions taken by a state agency, local government,
line 40 or the San Francisco Bay Area Rapid Transit District to:
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line 1 (1) Lease, convey, or encumber land owned by the local
line 2 government or the San Francisco Bay Area Rapid Transit District
line 3 or to facilitate the lease, conveyance, or encumbrance of land
line 4 owned by the local government, or for the lease of land owned by
line 5 the San Francisco Bay Area Rapid Transit District in association
line 6 with an eligible TOD project, as defined pursuant to Section
line 7 29010.1 of the Public Utilities Code, nor to any decisions
line 8 associated with that lease, or to provide financial assistance to a
line 9 development that receives streamlined approval pursuant to this
line 10 section that is to be used for housing for persons and families of
line 11 very low, low, or moderate income, as defined in Section 50093
line 12 of the Health and Safety Code.
line 13 (2) Approve improvements located on land owned by the local
line 14 government or the San Francisco Bay Area Rapid Transit District
line 15 that are necessary to implement a development that receives
line 16 streamlined approval pursuant to this section that is to be used for
line 17 housing for persons and families of very low, low, or moderate
line 18 income, as defined in Section 50093 of the Health and Safety Code.
line 19 (k) For purposes of this section, the following terms have the
line 20 following meanings:
line 21 (1) “Affordable housing cost” has the same meaning as set forth
line 22 in Section 50052.5 of the Health and Safety Code.
line 23 (2) “Affordable rent” has the same meaning as set forth in
line 24 Section 50053 of the Health and Safety Code.
line 25 (3) “Department” means the Department of Housing and
line 26 Community Development.
line 27 (4) “Development proponent” means the developer who submits
line 28 an application for streamlined approval pursuant to this section.
line 29 (5) “Completed entitlements” means a housing development
line 30 that has received all the required land use approvals or entitlements
line 31 necessary for the issuance of a building permit.
line 32 (6) “Locality” or “local government” means a city, including a
line 33 charter city, a county, including a charter county, or a city and
line 34 county, including a charter city and county.
line 35 (7) “Moderate income housing units” means housing units with
line 36 an affordable housing cost or affordable rent for persons and
line 37 families of moderate income, as that term is defined in Section
line 38 50093 of the Health and Safety Code.
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SB 6 — 35 —
line 1 (8) “Production report” means the information reported pursuant
line 2 to subparagraph (H) of paragraph (2) of subdivision (a) of Section
line 3 65400.
line 4 (9) “State agency” includes every state office, officer,
line 5 department, division, bureau, board, and commission, but does not
line 6 include the California State University or the University of
line 7 California.
line 8 (10) “Subsidized” means units that are price or rent restricted
line 9 such that the units are affordable to households meeting the
line 10 definitions of very low and lower income, as defined in Sections
line 11 50079.5 and 50105 of the Health and Safety Code.
line 12 (11) “Reporting period” means either of the following:
line 13 (A) The first half of the regional housing needs assessment
line 14 cycle.
line 15 (B) The last half of the regional housing needs assessment cycle.
line 16 (12) “Urban uses” means any current or former residential,
line 17 commercial, public institutional, transit or transportation passenger
line 18 facility, or retail use, or any combination of those uses.
line 19 (l) The department may review, adopt, amend, and repeal
line 20 guidelines to implement uniform standards or criteria that
line 21 supplement or clarify the terms, references, or standards set forth
line 22 in this section. Any guidelines or terms adopted pursuant to this
line 23 subdivision shall not be subject to Chapter 3.5 (commencing with
line 24 Section 11340) of Part 1 of Division 3 of Title 2 of the Government
line 25 Code.
line 26 (m) The determination of whether an application for a
line 27 development is subject to the streamlined ministerial approval
line 28 process provided by subdivision (c) is not a “project” as defined
line 29 in Section 21065 of the Public Resources Code.
line 30 (n) It is the policy of the state that this section be interpreted
line 31 and implemented in a manner to afford the fullest possible weight
line 32 to the interest of, and the approval and provision of, increased
line 33 housing supply.
line 34 (o) This section shall remain in effect only until January 1, 2026,
line 35 and as of that date is repealed.
line 36 SEC. 3. No reimbursement is required by this act pursuant to
line 37 Section 6 of Article XIIIB of the California Constitution because
line 38 a local agency or school district has the authority to levy service
line 39 charges, fees, or assessments sufficient to pay for the program or
line 40 level of service mandated by this act or because costs that may be
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line 1 incurred by a local agency or school district will be incurred
line 2 because this act creates a new crime or infraction, eliminates a
line 3 crime or infraction, or changes the penalty for a crime or infraction,
line 4 within the meaning of Section 17556 of the Government Code, or
line 5 changes the definition of a crime within the meaning of Section 6
line 6 of Article XIIIB of the California Constitution.
O
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SB 6 — 37 —
AMENDED IN SENATE FEBRUARY 18, 2021
SENATE BILL No. 7
Introduced by Senator Atkins
(Coauthors: Senators Gonzalez and Rubio) Cortese, Gonzalez, and
Rubio)
(Coauthor: Assembly Member Robert Rivas)
December 7, 2020
An act to add Section 21157.8 to, and to add and repeal Chapter 6.5
(commencing with Section 21178) of Division 13 of, of the Public
Resources Code, relating to environmental quality, and declaring the
urgency thereof, to take effect immediately.
legislative counsel’s digest
SB 7, as amended, Atkins. Environmental quality: Jobs and Economic
Improvement Through Environmental Leadership Act of 2021.
(1) The California Environmental Quality Act (CEQA) requires a
lead agency, as defined, to prepare, or cause to be prepared, and certify
the completion of an environmental impact report (EIR) on a project
that the lead agency proposes to carry out or approve that may have a
significant effect on the environment or to adopt a negative declaration
if it finds that the project will not have that effect. CEQA also requires
a lead agency to prepare a mitigated negative declaration for a project
that may have a significant effect on the environment if revisions in the
project would avoid or mitigate that effect and there is no substantial
evidence that the project, as revised, would have a significant effect on
the environment. CEQA authorizes the preparation of a master EIR and
authorizes the use of the master EIR to limit the environmental review
of subsequent projects that are described in the master EIR, as specified.
98
This bill would require a lead agency to prepare a master EIR for a
general plan, plan amendment, plan element, or specific plan for housing
projects where the state has provided funding for the preparation of the
master EIR. The bill would allow for limited review of proposed
subsequent housing projects that are described in the master EIR if the
use of the master EIR is consistent with specified provisions of CEQA.
(2) The
The Jobs and Economic Improvement Through Environmental
Leadership Act of 2011 (leadership (former leadership act), which
repeals on January 1, 2021, authorizes the Governor, until January 1,
2020, to certify projects that meet certain requirements, including
specified labor-related requirements and a requirement that the project
applicant agrees to pay the costs of the court of appeal in hearing and
deciding a case challenging a lead agency’s action on a certified project,
for streamlining benefits provided by the former leadership act related
to CEQA. The former leadership act also requires resolution, to the
extent feasible, of judicial review of action taken by a lead agency
within 270 days of the filing of the certified record of proceedings with
the court. The former leadership act provides that if a lead agency fails
to approve a project certified by the Governor before January 1, 2021,
the certification expires and is no longer valid. The former leadership
act requires a lead agency to prepare the record of proceedings for the
certified project concurrent with the preparation of the EIR.
This bill would enact the Jobs and Economic Improvement Through
Environmental Leadership Act of 2021, which would reenact the former
leadership act, with certain changes, and would authorize the Governor,
until January 1, 2024, to certify projects that meet specified requirements
for streamlining benefits related to CEQA. The bill would additionally
include housing development projects, as defined, meeting certain
conditions as projects eligible for certification. The bill would, except
for those housing development projects, require the quantification and
mitigation of the impacts of a project from the emissions of greenhouse
gases, as provided. The bill would revise and recast the labor-related
requirements for projects undertaken by both public agencies and private
entities. The bill would provide that the Governor is authorized to certify
a project before the lead agency certifies the final EIR for the project.
The bill also would would provide for the certification by the Governor
of a project alternative described in an EIR for a certified project, as
provided. The bill would additionally require an applicant for
certification of a project for which the environmental review has begun
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— 2 — SB 7
to demonstrate that the record of proceedings for the project is being
prepared concurrently with the administrative process. The bill would
require the project applicant, as a condition of certification, to agree to
pay the costs of the trial court in hearing and deciding a case challenging
a lead agency’s action on a certified project. The bill would authorize
the Office of Planning and Research to charge a fee to an applicant
seeking certification for costs incurred by the Governor’s office in the
implementation of the reenacted leadership act. Jobs and Economic
Improvement Through Environmental Leadership Act of 2021. The bill
would require resolution, to the extent feasible, of judicial review of
action taken by a lead agency within 270 business days after the filing
of the record of proceedings with the court. The bill would provide that
if a lead agency fails to approve a project certified by the Governor
under the reenacted leadership act Jobs and Economic Improvement
Through Environmental Leadership Act of 2021 before January 1, 2025,
the certification is no longer valid. The bill would repeal the reenacted
leadership act Jobs and Economic Improvement Through Environmental
Leadership Act of 2021 on January 1, 2025. 2026. Because the bill
would require the lead agency to prepare concurrently the record of
proceedings for projects that are certified by the Governor, this bill
would impose a state-mandated local program.
This bill would further provide that projects certified by the Governor
under the former leadership act before January 1, 2020, and that are
approved by a lead agency on or before January 1, 2022, are entitled
to the benefits of and are required to comply with the requirements set
forth in the former leadership act as it read on January 1, 2020.
(3)
(2) The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act
for a specified reason.
(4)
(3) This bill would declare that it is to take effect immediately as an
urgency statute.
Vote: 2⁄3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
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SB 7 — 3 —
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 21157.8 is added to the Public Resources
line 2 Code, to read:
line 3 21157.8. (a) To streamline and expedite environmental review
line 4 for housing projects, a lead agency shall prepare a master
line 5 environmental impact report for a general plan, plan amendment,
line 6 plan element, or specific plan for housing projects where the state
line 7 has provided funding for the preparation of the master
line 8 environmental impact report.
line 9 (b) The preparation and certification of a master environmental
line 10 impact report, if prepared and certified consistent with this division,
line 11 shall allow for the limited review of proposed subsequent housing
line 12 projects that are described in the master environmental impact
line 13 report as being within the scope of the master environmental impact
line 14 report, if the use of the master environmental impact report for
line 15 proposed subsequent housing projects is consistent with Sections
line 16 21157.1 and 21157.6.
line 17 (c) A negative declaration or mitigated negative declaration
line 18 shall be prepared for a proposed subsequent housing project if both
line 19 of the following occur:
line 20 (1) An initial study has identified potentially new or additional
line 21 significant effects on the environment that were not analyzed in
line 22 the master environmental impact report.
line 23 (2) Feasible mitigation measures or alternatives will be
line 24 incorporated to revise the proposed subsequent housing project,
line 25 before the negative declaration is released for public review, to
line 26 avoid the effects or mitigate the effects to a point where clearly
line 27 no significant effect on the environment will occur.
line 28 (d) If there is substantial evidence in light of the whole record
line 29 before the lead agency that a proposed subsequent housing project
line 30 may have a significant effect on the environment and a mitigated
line 31 negative declaration is not prepared, the lead agency shall prepare
line 32 a focused environmental impact report pursuant to Section 21158.
line 33 SEC. 2.
line 34 SECTION 1. Chapter 6.5 (commencing with Section 21178)
line 35 is added to Division 13 of the Public Resources Code, to read:
98
— 4 — SB 7
line 1 Chapter 6.5. Jobs and Economic Improvement Through
line 2 Environmental Leadership Act of 2021
line 3
line 4 21178. The Legislature finds and declares all of the following:
line 5 (a) The California Environmental Quality Act (Division 13
line 6 (commencing with Section 21000)) requires that the environmental
line 7 impacts of development projects be identified and mitigated.
line 8 (b) The California Environmental Quality Act also guarantees
line 9 the public an opportunity to review and comment on the
line 10 environmental impacts of a project and to participate meaningfully
line 11 in the development of mitigation measures for potentially
line 12 significant environmental impacts.
line 13 (c) There are large projects under consideration in various
line 14 regions of the state that would replace old and outmoded facilities
line 15 with new job-creating facilities to meet those regions’ needs while
line 16 also establishing new, cutting-edge environmental benefits in those
line 17 regions.
line 18 (d) These projects are privately financed or financed from
line 19 revenues generated from the projects themselves and do not require
line 20 taxpayer financing.
line 21 (e) These projects further will will further generate thousands
line 22 of full-time jobs during construction and thousands of additional,
line 23 permanent jobs once the projects are constructed and operating.
line 24 (f) These projects also present an unprecedented opportunity to
line 25 implement nation-leading innovative measures that will
line 26 significantly reduce traffic, air quality, and other significant
line 27 environmental impacts, and fully mitigate the greenhouse gas
line 28 emissions resulting from passenger vehicle trips attributed to the
line 29 projects.
line 30 (g) These pollution reductions will be the best in the nation
line 31 compared to other comparable projects in the United States.
line 32 (h) The purpose of this chapter is to provide, for a limited time,
line 33 unique and unprecedented streamlining benefits under the
line 34 California Environmental Quality Act for projects that provide the
line 35 benefits described above to put people to work as soon as possible.
line 36 21180. For purposes of this chapter, the following definitions
line 37 apply:
line 38 (a) “Applicant” means a public or private entity or its affiliates,
line 39 or a person or entity that undertakes a public works project, that
line 40 proposes a project and its successors, heirs, and assignees.
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SB 7 — 5 —
line 1 (b) “Environmental leadership development project,” “leadership
line 2 project,” or “project” means a project as described in Section 21065
line 3 that is one of the following:
line 4 (1) A residential, retail, commercial, sports, cultural,
line 5 entertainment, or recreational use project that is certified as
line 6 Leadership in Energy and Environmental Design (LEED) gold or
line 7 better by the United States Green Building Council and, where
line 8 applicable, that achieves a 15-percent greater standard for
line 9 transportation efficiency than for comparable projects. These
line 10 projects must be located on an infill site. For a project that is within
line 11 a metropolitan planning organization for which a sustainable
line 12 communities strategy or alternative planning strategy is in effect,
line 13 the infill project shall be consistent with the general use
line 14 designation, density, building intensity, and applicable policies
line 15 specified for the project area in either a sustainable communities
line 16 strategy or an alternative planning strategy, for which the State
line 17 Air Resources Board has accepted a metropolitan planning
line 18 organization’s determination, under subparagraph (H) of paragraph
line 19 (2) of subdivision (b) of Section 65080 of the Government Code,
line 20 that the sustainable communities strategy or the alternative planning
line 21 strategy would, if implemented, achieve the greenhouse gas
line 22 emission reduction targets.
line 23 (2) A clean renewable energy project that generates electricity
line 24 exclusively through wind or solar, but not including waste
line 25 incineration or conversion.
line 26 (3) A clean energy manufacturing project that manufactures
line 27 products, equipment, or components used for renewable energy
line 28 generation, energy efficiency, or for the production of clean
line 29 alternative fuel vehicles.
line 30 (4) (A) A housing development project that meets all of the
line 31 following conditions:
line 32 (i) The housing development project is located on an infill site.
line 33 (ii) For a housing development project that is located within a
line 34 metropolitan planning organization for which a sustainable
line 35 communities strategy or alternative planning strategy is in effect,
line 36 the project is consistent with the general use designation, density,
line 37 building intensity, and applicable policies specified for the project
line 38 area in either a sustainable communities strategy or an alternative
line 39 planning strategy, for which the State Air Resources Board has
line 40 accepted a metropolitan planning organization’s determination,
98
— 6 — SB 7
line 1 under subparagraph (H) of paragraph (2) of subdivision (b) of
line 2 Section 65080 of the Government Code, that the sustainable
line 3 communities strategy or the alternative planning strategy would,
line 4 if implemented, achieve the greenhouse gas emission reduction
line 5 targets.
line 6 (iii) Notwithstanding paragraph (1) of subdivision (a) of Section
line 7 21183, the housing development project will result in a minimum
line 8 investment of fifteen million dollars ($15,000,000), but less than
line 9 one hundred million dollars ($100,000,000), in California upon
line 10 completion of construction.
line 11 (iv) (I) Except as provided in subclause (II), at least 15 percent
line 12 of the housing development project is dedicated as housing that is
line 13 affordable to lower income households, as defined in Section
line 14 50079.5 of the Health and Safety Code. Upon completion of a
line 15 housing development project that is qualified under this paragraph
line 16 and is certified by the Governor, the lead agency or applicant of
line 17 the project shall notify the Office of Planning and Research of the
line 18 number of housing units and affordable housing units established
line 19 by the project.
line 20 (II) Notwithstanding subclause (I), if a local agency has adopted
line 21 an inclusionary zoning ordinance that establishes a minimum
line 22 percentage for affordable housing within the jurisdiction in which
line 23 the housing development project is located that is higher than 15
line 24 percent, the percentage specified in the inclusionary zoning
line 25 ordinance shall be the threshold for affordable housing.
line 26 (v) (I) Except for use as a residential hotel, as defined in Section
line 27 50519 of the Health and Safety Code, no part of the housing
line 28 development project shall be used for a rental unit for a term shorter
line 29 than 30 days, or designated for hotel, motel, bed and breakfast inn,
line 30 or other transient lodging use.
line 31 (II) No part of the housing development project shall be used
line 32 for manufacturing or industrial uses.
line 33 (B) For purposes of this paragraph, “housing development
line 34 project” means a project for any of the following:
line 35 (i) Residential units only.
line 36 (ii) Mixed-use developments consisting of residential and
line 37 nonresidential uses with at least two-thirds of the square footage
line 38 designated for residential use.
line 39 (iii) Transitional housing or supportive housing.
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SB 7 — 7 —
line 1 (c) “Infill site” has the same meaning as set forth in Section
line 2 21061.3.
line 3 (d) “Transportation efficiency” means the number of vehicle
line 4 trips by employees, visitors, or customers of the residential, retail,
line 5 commercial, sports, cultural, entertainment, or recreational use
line 6 project divided by the total number of employees, visitors, and
line 7 customers.
line 8 21181. This chapter does not apply to a project if the Governor
line 9 does not certify the project as an environmental leadership
line 10 development project eligible for streamlining under this chapter
line 11 before January 1, 2024.
line 12 21182. A person proposing to construct a leadership project
line 13 may apply to the Governor for certification that the leadership
line 14 project is eligible for streamlining as provided by this chapter. The
line 15 person shall supply evidence and materials that the Governor deems
line 16 necessary to make a decision on the application. Any evidence or
line 17 materials shall be made available to the public at least 15 days
line 18 before the Governor certifies a project under this chapter.
line 19 21183. The Governor may certify a leadership project for
line 20 streamlining before a lead agency certifies a final environmental
line 21 impact report for a project under this chapter if all the following
line 22 conditions are met:
line 23 (a) (1) Except as provided in paragraph (2), the project will
line 24 result in a minimum investment of one hundred million dollars
line 25 ($100,000,000) in California upon completion of construction.
line 26 (2) Paragraph (1) does not apply to a leadership project described
line 27 in paragraph (4) of subdivision (b) of Section 21180.
line 28 (b) The project creates high-wage, highly skilled jobs that pay
line 29 prevailing wages and living wages, provides construction jobs and
line 30 permanent jobs for Californians, helps reduce unemployment, and
line 31 promotes apprenticeship training. For purposes of this subdivision,
line 32 a project is deemed to create jobs that pay prevailing wages, create
line 33 highly skilled jobs, and promote apprenticeship training if the
line 34 applicant demonstrates to the satisfaction of the Governor that the
line 35 project will comply with Section 21183.5.
line 36 (c) (1) For a project described in paragraph (1), (2), or (3) of
line 37 subdivision (b) of Section 21180, the project does not result in any
line 38 net additional emission of greenhouse gases, including greenhouse
line 39 gas emissions from employee transportation. For purposes of this
line 40 paragraph, a project is deemed to meet the requirements of this
98
— 8 — SB 7
line 1 paragraph if the applicant demonstrates to the satisfaction of the
line 2 Governor that the project will comply with Section 21183.6.
line 3 (2) For a project described in paragraph (4) of subdivision (b)
line 4 of Section 21180, the project does not result in any net additional
line 5 emission of greenhouse gases, including greenhouse gas emissions
line 6 from employee transportation.
line 7 (d) The applicant demonstrates compliance with the
line 8 requirements of Chapter 12.8 (commencing with Section 42649)
line 9 and Chapter 12.9 (commencing with Section 42649.8) of Part 3
line 10 of Division 30, as applicable.
line 11 (e) The applicant has entered into a binding and enforceable
line 12 agreement that all mitigation measures required under this division
line 13 to certify the project under this chapter shall be conditions of
line 14 approval of the project, and those conditions will be fully
line 15 enforceable by the lead agency or another agency designated by
line 16 the lead agency. In the case of environmental mitigation measures,
line 17 the applicant agrees, as an ongoing obligation, that those measures
line 18 will be monitored and enforced by the lead agency for the life of
line 19 the obligation.
line 20 (f) (1) Except as provided in paragraph (2), the The applicant
line 21 agrees to pay the costs of the trial court and the court of appeal in
line 22 hearing and deciding any case challenging a lead agency’s action
line 23 on a certified project under this division, including payment of the
line 24 costs for the appointment of a special master if deemed appropriate
line 25 by the court, in a form and manner specified by the Judicial
line 26 Council, as provided in the California Rules of Court adopted by
line 27 the Judicial Council under Section 21185.
line 28 (2) The applicant of a project described in paragraph (4) of
line 29 subdivision (b) of Section 21180 agrees to pay the costs of the
line 30 court of appeal in hearing and deciding any case challenging a
line 31 lead agency’s action on a certified project under this division,
line 32 including payment of the costs for the appointment of a special
line 33 master if deemed appropriate by the court, in a form and manner
line 34 specified by the Judicial Council, as provided in the Rules of Court
line 35 adopted by the Judicial Council under Section 21185.
line 36 (g) The applicant agrees to pay the costs of preparing the record
line 37 of proceedings for the project concurrent with review and
line 38 consideration of the project under this division, in a form and
line 39 manner specified by the lead agency for the project.
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SB 7 — 9 —
line 1 (h) For a project for which environmental review has
line 2 commenced, the applicant demonstrates that the record of
line 3 proceedings is being prepared in accordance with Section 21186.
line 4 21183.5. (a) For purposes of this section, the following
line 5 definitions apply:
line 6 (1) “Project labor agreement” has the same meaning as set forth
line 7 in paragraph (1) of subdivision (b) of Section 2500 of the Public
line 8 Contract Code.
line 9 (2) “Skilled and trained workforce” has the same meaning as
line 10 set forth in Chapter 2.9 (commencing with Section 2600) of Part
line 11 1 of Division 2 of the Public Contract Code.
line 12 (b) (1) For a project undertaken by a public agency that is
line 13 certified under this chapter, except as provided in paragraph (2),
line 14 an entity shall not be prequalified or shortlisted or awarded a
line 15 contract by the public agency to perform any portion of the project
line 16 unless the entity provides an enforceable commitment to the public
line 17 agency that the entity and its contractors and subcontractors at
line 18 every tier will use a skilled and trained workforce to perform all
line 19 work on the project or contract that falls within an apprenticeable
line 20 occupation in the building and construction trades.
line 21 (2) Paragraph (1) does not apply if any of the following
line 22 requirements are met:
line 23 (A) The public agency has entered into a project labor agreement
line 24 that will bind all contractors and subcontractors at every tier
line 25 performing work on the project or contract to use a skilled and
line 26 trained workforce, and the entity agrees to be bound by that project
line 27 labor agreement.
line 28 (B) The project or contract is being performed under the
line 29 extension or renewal of a project labor agreement that was entered
line 30 into by the public agency before January 1, 2021.
line 31 (C) The entity has entered into a project labor agreement that
line 32 will bind the entity and all of its contractors and subcontractors at
line 33 every tier performing work on the project or contract to use a
line 34 skilled and trained workforce.
line 35 (c) For a project undertaken by a private entity that is certified
line 36 under this chapter, the applicant shall do both of the following:
line 37 (1) Certify to the lead agency that either of the following is true:
line 38 (A) The entirety of the project is a public work for purposes of
line 39 Chapter 1 (commencing with Section 1720) of Part 7 of Division
line 40 2 of the Labor Code.
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— 10 — SB 7
line 1 (B) If the project is not in its entirety a public work, all
line 2 construction workers employed in the execution of the project will
line 3 be paid at least the general prevailing rate of per diem wages for
line 4 the type of work and geographic area, as determined by the Director
line 5 of Industrial Relations under Sections 1773 and 1773.9 of the
line 6 Labor Code, except that apprentices registered in programs
line 7 approved by the Chief of the Division of Apprenticeship Standards
line 8 may be paid at least the applicable apprentice prevailing rate. If
line 9 the project is subject to this subparagraph, then, for those portions
line 10 of the project that are not a public work, all of the following shall
line 11 apply:
line 12 (i) The applicant shall ensure that the prevailing wage
line 13 requirement is included in all contracts for the performance of the
line 14 work.
line 15 (ii) All contractors and subcontractors at every tier shall pay to
line 16 all construction workers employed in the execution of the work
line 17 on the project or contract at least the general prevailing rate of per
line 18 diem wages, except that apprentices registered in programs
line 19 approved by the Chief of the Division of Apprenticeship Standards
line 20 may be paid at least the applicable apprentice prevailing rate.
line 21 (iii) (I) Except as provided in subclause (III), all contractors
line 22 and subcontractors at every tier shall maintain and verify payroll
line 23 records under Section 1776 of the Labor Code and make those
line 24 records available for inspection and copying as provided by that
line 25 section.
line 26 (II) Except as provided in subclause (III), the obligation of all
line 27 contractors and subcontractors at every tier to pay prevailing wages
line 28 may be enforced by the Labor Commissioner through the issuance
line 29 of a civil wage and penalty assessment under Section 1741 of the
line 30 Labor Code, which may be reviewed under Section 1742 of the
line 31 Labor Code, within 18 months after the completion of the project,
line 32 by an underpaid worker through an administrative complaint or
line 33 civil action, or by a joint labor-management committee through a
line 34 civil action under Section 1771.2 of the Labor Code. If a civil wage
line 35 and penalty assessment is issued, the contractor, subcontractor,
line 36 and surety on a bond or bonds issued to secure the payment of
line 37 wages covered by the assessment shall be liable for liquidated
line 38 damages under Section 1742.1 of the Labor Code.
line 39 (III) Subclauses (I) and (II) do not apply if all contractors and
line 40 subcontractors at every tier performing work on the project or
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SB 7 — 11 —
line 1 contract are subject to a project labor agreement that requires the
line 2 payment of prevailing wages to all construction workers employed
line 3 in the execution of the project or contract and provides for
line 4 enforcement of that obligation through an arbitration procedure.
line 5 (iv) Notwithstanding subdivision (c) of Section 1773.1 of the
line 6 Labor Code, the requirement that employer payments not reduce
line 7 the obligation to pay the hourly straight time or overtime wages
line 8 found to be prevailing shall not apply if otherwise provided in a
line 9 bona fide collective bargaining agreement covering the worker.
line 10 The requirement to pay at least the general prevailing rate of per
line 11 diem wages does not preclude use of an alternative workweek
line 12 schedule adopted under Section 511 or 514 of the Labor Code.
line 13 (2) Certify to the lead agency that a skilled and trained
line 14 workforce will be used to perform all construction work on the
line 15 project or contract. All of the following requirements shall apply
line 16 to the project:
line 17 (A) The applicant shall require in all contracts for the
line 18 performance of work that every contractor and subcontractor at
line 19 every tier will individually use a skilled and trained workforce to
line 20 complete the project.
line 21 (B) Every contractor and subcontractor at every tier shall use a
line 22 skilled and trained workforce to complete the project.
line 23 (C) (i) Except as provided in clause (ii), the applicant shall
line 24 provide to the lead agency, on a monthly basis while the project
line 25 or contract is being performed, a report demonstrating compliance
line 26 with Chapter 2.9 (commencing with Section 2600) of Part 1 of
line 27 Division 2 of the Public Contract Code. A monthly report provided
line 28 to the lead agency under this clause shall be a public record under
line 29 the California Public Records Act (Chapter 3.5 (commencing with
line 30 Section 6250) of Division 7 of Title 1 of the Government Code)
line 31 and shall be open to public inspection. An applicant that fails to
line 32 provide a monthly report demonstrating compliance with Chapter
line 33 2.9 (commencing with Section 2600) of Part 1 of Division 2 of
line 34 the Public Contract Code shall be subject to a civil penalty of ten
line 35 thousand dollars ($10,000) per month for each month for which
line 36 the report has not been provided. Any contractor or subcontractor
line 37 that fails to use a skilled and trained workforce shall be subject to
line 38 a civil penalty of two hundred dollars ($200) per day for each
line 39 worker employed in contravention of the skilled and trained
line 40 workforce requirement. Penalties may be assessed by the Labor
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— 12 — SB 7
line 1 Commissioner within 18 months of completion of the project using
line 2 the same procedures for issuance of civil wage and penalty
line 3 assessments under Section 1741 of the Labor Code, and may be
line 4 reviewed under the same procedures in Section 1742 of the Labor
line 5 Code. Penalties shall be paid to the State Public Works
line 6 Enforcement Fund.
line 7 (ii) Clause (i) does not apply if all contractors and subcontractors
line 8 at every tier performing work on the project are subject to a project
line 9 labor agreement that requires compliance with the skilled and
line 10 trained workforce requirement and provides for enforcement of
line 11 that obligation through an arbitration procedure.
line 12 21183.6. (a) The quantification and mitigation of the impacts
line 13 of a project described in paragraph (1), (2), or (3) of subdivision
line 14 (b) of Section 21180 from the emissions of greenhouse gases shall
line 15 be as follows:
line 16 (1) The environmental baseline for greenhouse gas emissions
line 17 shall be established based upon the physical environmental
line 18 conditions in the vicinity of the project site at the time the
line 19 application is submitted in a manner consistent with Section 15125
line 20 of Title 14 of the California Code of Regulations as those
line 21 regulations existed on January 1, 2021.
line 22 (2) The mitigation of the impacts resulting from the emissions
line 23 of greenhouse gases shall be achieved in accordance with the
line 24 following priority:
line 25 (A) Direct emissions reductions from the project that also reduce
line 26 emissions of criteria air pollutants or toxic air contaminants through
line 27 implementation of project features, project design, or other
line 28 measures, including, but not limited to, energy efficiency,
line 29 installation of renewable energy electricity generation, and
line 30 reductions in vehicle miles traveled.
line 31 (B) If all of the project impacts cannot be feasibly and fully
line 32 mitigated by direct emissions reductions as described in
line 33 subparagraph (A), the remaining unmitigated impacts shall be
line 34 mitigated by direct emissions reductions that also reduce emissions
line 35 of criteria air pollutants or toxic air contaminants within the same
line 36 air pollution control district or air quality management district in
line 37 which the project is located.
line 38 (C) If all of the project impacts cannot be feasibly and fully
line 39 mitigated by direct emissions reductions as described in
line 40 subparagraph (A) or (B), the remaining unmitigated impacts shall
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SB 7 — 13 —
line 1 be mitigated through the use of offsets that originate within the
line 2 same air pollution control district or air quality management district
line 3 in which the project is located. The offsets shall be undertaken in
line 4 a manner consistent with Division 25.5 (commencing with Section
line 5 38500) of the Health and Safety Code, including, but not limited
line 6 to, the requirement that the offsets be real, permanent, quantifiable,
line 7 verifiable, and enforceable, and shall be undertaken from sources
line 8 in the community in which the project is located or in adjacent
line 9 communities.
line 10 (D) If all of the project impacts cannot be feasibly and fully
line 11 mitigated by the measures described in subparagraph (A), (B), or
line 12 (C), the remaining unmitigated impacts shall be mitigated through
line 13 the use of offsets that originate from sources that provide a specific,
line 14 quantifiable, and direct environmental and public health benefit
line 15 to the community region in which the project is located.
line 16 (b) It is the intent of the Legislature, in enacting this section, to
line 17 maximize the environmental and public health benefits from
line 18 measures to mitigate the project impacts resulting from the
line 19 emissions of greenhouse gases to those people that are impacted
line 20 most by the project.
line 21 21184. (a) The Governor may certify a project for streamlining
line 22 under this chapter if it complies with the conditions specified in
line 23 Section 21183.
line 24 (b) (1) Before certifying a project, the Governor shall make a
line 25 determination that each of the conditions specified in Section 21183
line 26 has have been met. These findings are not subject to judicial
line 27 review.
line 28 (2) (A) If the Governor determines that a leadership project is
line 29 eligible for streamlining under this chapter, the Governor shall
line 30 submit that determination, and any supporting information, to the
line 31 Joint Legislative Budget Committee for review and concurrence
line 32 or nonconcurrence.
line 33 (B) Within 30 days of receiving the determination, the Joint
line 34 Legislative Budget Committee shall concur or nonconcur in writing
line 35 on the determination.
line 36 (C) If the Joint Legislative Budget Committee fails to concur
line 37 or nonconcur on a determination by the Governor within 30 days
line 38 of the submittal, the leadership project is deemed to be certified.
line 39 (c) The Governor may issue guidelines regarding application
line 40 and certification of projects under this chapter. Any guidelines
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line 1 issued under this subdivision are not subject to the rulemaking
line 2 provisions of the Administrative Procedure Act (Chapter 3.5
line 3 (commencing with Section 11340) of Part 1 of Division 3 of Title
line 4 2 of the Government Code).
line 5 21184.5. (a) Notwithstanding any other law, except as provided
line 6 in subdivision (b), a multifamily residential project certified under
line 7 this chapter shall provide unbundled parking, such that private
line 8 vehicle parking spaces are priced and rented or purchased
line 9 separately from dwelling units.
line 10 (b) Subdivision (a) shall not apply if the dwelling units are
line 11 subject to affordability restrictions in law that prescribe rent or
line 12 sale prices, and the cost of parking spaces cannot be unbundled
line 13 from the cost of dwelling units.
line 14 21184.7. The Office of Planning and Research may charge a
line 15 fee to an applicant seeking certification under this chapter for the
line 16 costs incurred by the Governor’s office in implementing this
line 17 chapter.
line 18 21185. The Judicial Council shall adopt a rule of court to
line 19 establish procedures that require actions or proceedings brought
line 20 to attack, review, set aside, void, or annul the certification of an
line 21 environmental impact report for an environmental leadership
line 22 development project certified by the Governor under this chapter
line 23 or the granting of any project approvals that require the actions or
line 24 proceedings, including any potential appeals to the court of appeal
line 25 or the Supreme Court, to be resolved, to the extent feasible, within
line 26 270 business days of the filing of the certified record of
line 27 proceedings with the court.
line 28 21186. Notwithstanding any other law, the preparation and
line 29 certification of the record of proceedings for a leadership project
line 30 certified by the Governor shall be performed in the following
line 31 manner:
line 32 (a) The lead agency for the project shall prepare the record of
line 33 proceedings under this division concurrently with the
line 34 administrative process.
line 35 (b) All documents and other materials placed in the record of
line 36 proceedings shall be posted on, and be downloadable from, an
line 37 internet website maintained by the lead agency commencing with
line 38 the date of the release of the draft environmental impact report.
line 39 (c) The lead agency shall make available to the public in a
line 40 readily accessible electronic format the draft environmental impact
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SB 7 — 15 —
line 1 report and all other documents submitted to, or relied on by, the
line 2 lead agency in preparing the draft environmental impact report.
line 3 (d) Any document prepared by the lead agency or submitted by
line 4 the applicant after the date of the release of the draft environmental
line 5 impact report that is a part of the record of the proceedings shall
line 6 be made available to the public in a readily accessible electronic
line 7 format within five business days after the document is released or
line 8 received by the lead agency.
line 9 (e) The lead agency shall encourage written comments on the
line 10 project to be submitted in a readily accessible electronic format,
line 11 and shall make any comment available to the public in a readily
line 12 accessible electronic format within five business days of its receipt.
line 13 (f) Within seven business days after the receipt of any comment
line 14 that is not in an electronic format, the lead agency shall convert
line 15 that comment into a readily accessible electronic format and make
line 16 it available to the public in that format.
line 17 (g) Notwithstanding paragraphs (b) to (f), inclusive, documents
line 18 submitted to or relied on by the lead agency that were not prepared
line 19 specifically for the project and are copyright protected are not
line 20 required to be made readily accessible in an electronic format. For
line 21 those copyright-protected documents, the lead agency shall make
line 22 an index of these documents available in an electronic format no
line 23 later than the date of the release of the draft environmental impact
line 24 report, or within five business days if the document is received or
line 25 relied on by the lead agency after the release of the draft
line 26 environmental impact report. The index must specify the libraries
line 27 or lead agency offices in which hardcopies of the copyrighted
line 28 materials are available for public review.
line 29 (h) The lead agency shall certify the final record of proceedings
line 30 within five business days of its approval of the project.
line 31 (i) Any dispute arising from the record of proceedings shall be
line 32 resolved by the superior court. Unless the superior court directs
line 33 otherwise, a party disputing the content of the record shall file a
line 34 motion to augment the record at the time it files its initial brief.
line 35 (j) The contents of the record of proceedings shall be as set forth
line 36 in subdivision (e) of Section 21167.6.
line 37 21187. Within 10 business days of the Governor certifying an
line 38 environmental leadership development project under this chapter,
line 39 a lead agency shall, at the applicant’s expense, issue a public notice
line 40 in no less than 12-point type stating the following:
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line 1
line 2 “THE APPLICANT HAS ELECTED TO PROCEED UNDER
line 3 CHAPTER 6.5 (COMMENCING WITH SECTION 21178) OF
line 4 DIVISION 13 OF THE PUBLIC RESOURCES CODE, WHICH
line 5 PROVIDES, AMONG OTHER THINGS, THAT ANY JUDICIAL
line 6 ACTION CHALLENGING THE CERTIFICATION OF THE
line 7 ENVIRONMENTAL IMPACT REPORT (EIR) OR THE
line 8 APPROVAL OF THE PROJECT DESCRIBED IN THE EIR IS
line 9 SUBJECT TO THE PROCEDURES SET FORTH IN SECTIONS
line 10 21185 TO 21186, INCLUSIVE, OF THE PUBLIC RESOURCES
line 11 CODE. A COPY OF CHAPTER 6.5 (COMMENCING WITH
line 12 SECTION 21178) OF DIVISION 13 OF THE PUBLIC
line 13 RESOURCES CODE IS INCLUDED BELOW.”
line 14
line 15 The public notice shall be distributed by the lead agency as
line 16 required for public notices issued under paragraph (3) of
line 17 subdivision (b) of Section 21092.
line 18 21187.5. (a) For purposes of this section, “project alternative”
line 19 means an alternative studied in a leadership project’s environmental
line 20 impact report under Section 15126.6 of Title 14 of the California
line 21 Code of Regulations as those regulations existed on January 1,
line 22 2021.
line 23 (b) Before a lead agency’s approval of a project alternative
line 24 described in an environmental impact report for a leadership project
line 25 certified by the Governor under this chapter, the Governor may,
line 26 upon application of the applicant, certify the project alternative
line 27 under this chapter if the project alternative meets the definition of
line 28 a leadership project pursuant to Section 21180 and complies with
line 29 Section 21183 as those sections existed at the time of the
line 30 Governor’s certification of the leadership project. The applicant
line 31 shall supply evidence and materials that the Governor deems
line 32 necessary to make a decision on the application to certify the
line 33 project alternative. Any evidence or materials provided by the
line 34 applicant shall be made available by the Governor to the public at
line 35 least 15 days before the Governor certifies a project alternative
line 36 pursuant to this chapter. Paragraph (2) of subdivision (b) of Section
line 37 21184 shall not apply to the certification of a project alternative
line 38 pursuant to this section. The findings made by the Governor
line 39 pursuant to this section are not subject to judicial review.
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SB 7 — 17 —
line 1 (c) The rule of court adopted under Section 21185 applies to
line 2 actions or proceedings brought to attack, review, set aside, void,
line 3 or annul a public agency’s approval of a project alternative certified
line 4 under this section on the grounds of noncompliance with this
line 5 division.
line 6 21188. The provisions of this chapter are severable. If any
line 7 provision of this chapter or its application is held to be invalid,
line 8 that invalidity shall not affect any other provision or application
line 9 that can be given effect without the invalid provision or application.
line 10 21189. Except as otherwise provided expressly in this chapter,
line 11 nothing in this chapter affects the duty of any party to comply with
line 12 this division.
line 13 21189.1. If, before January 1, 2025, a lead agency fails to
line 14 approve a project certified by the Governor under this chapter,
line 15 then the certification expires and is no longer valid.
line 16 21189.3. This chapter shall remain in effect until January 1,
line 17 2025, 2026, and as of that date is repealed unless a later enacted
line 18 statute extends or repeals that date.
line 19 SEC. 3. Notwithstanding former Section 21189.1, as it read
line 20 on January 1, 2021, a project that is certified by the Governor
line 21 under the former Chapter 6.5 (commencing with Section 21178)
line 22 of Division 13 of the Public Resources Code that is approved by
line 23 a lead agency on or before January 1, 2022, shall be entitled to the
line 24 benefits of and shall comply with the requirements set forth in that
line 25 former chapter as it read on January 1, 2020.
line 26 SEC. 2. A project that was certified by the Governor under the
line 27 former Chapter 6.5 (commencing with Section 21178) of Division
line 28 13 of the Public Resources Code before January 1, 2020, and that
line 29 is approved by a lead agency on or before January 1, 2022, shall
line 30 be entitled to the benefits of, and shall comply with, the
line 31 requirements set forth in that former chapter as it read on January
line 32 1, 2020.
line 33 SEC. 4.
line 34 SEC. 3. No reimbursement is required by this act pursuant to
line 35 Section 6 of Article XIIIB of the California Constitution because
line 36 a local agency or school district has the authority to levy service
line 37 charges, fees, or assessments sufficient to pay for the program or
line 38 level of service mandated by this act, within the meaning of Section
line 39 17556 of the Government Code.
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line 1 SEC. 5.
line 2 SEC. 4. This act is an urgency statute necessary for the
line 3 immediate preservation of the public peace, health, or safety within
line 4 the meaning of Article IV of the California Constitution and shall
line 5 go into immediate effect. The facts constituting the necessity are:
line 6 To expedite the development and construction of urgently needed
line 7 housing, clean energy, low carbon, and environmentally-beneficial
line 8 projects, and the jobs they create, it is necessary that this act be
line 9 immediately enacted.
O
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SB 7 — 19 —
AMENDED IN SENATE FEBRUARY 24, 2021
SENATE BILL No. 10
Introduced by Senator Wiener
(Principal coauthors: Senators Atkins and Caballero)
(Principal coauthor: Assembly Member Robert Rivas)
December 7, 2020
An act to add Section 65913.5 to the Government Code, relating to
land use.
legislative counsel’s digest
SB 10, as amended, Wiener. Planning and zoning: housing
development: density.
The Planning and Zoning Law requires a city or county to adopt a
general plan for land use development within its boundaries that
includes, among other things, a housing element. Existing law requires
an attached housing development to be a permitted use, not subject to
a conditional use permit, on any parcel zoned for multifamily housing
if at least certain percentages of the units are available at affordable
housing costs to very low income, lower income, and moderate-income
households for at least 30 years and if the project meets specified
conditions relating to location and being subject to a discretionary
decision other than a conditional use permit. Existing law provides for
various incentives intended to facilitate and expedite the construction
of affordable housing.
This bill would, notwithstanding any local restrictions on adopting
zoning ordinances, authorize a local government to pass an ordinance
to zone any parcel for up to 10 units of residential density per parcel,
at a height specified in the ordinance, if the parcel is located in a
transit-rich area, a jobs-rich area, or an urban infill site, as those terms
98
are defined. In this regard, the bill would require the Department of
Housing and Community Development, in consultation with the Office
of Planning and Research, to determine jobs-rich areas and publish a
map of those areas every 5 years, commencing January 1, 2022, 2023,
based on specified criteria. The bill would specify that an ordinance
adopted under these provisions provisions, and any resolution adopted
to amend the jurisdiction’s General Plan to be consistent with that
ordinance, is not a project for purposes of the California Environmental
Quality Act. The bill would prohibit a residential or mixed-use
residential project consisting of 10 or more units that is located on a
parcel rezoned pursuant to these provisions from being approved
ministerially or by right.
This bill would include findings that changes proposed by this bill
address a matter of statewide concern rather than a municipal affair
and, therefore, apply to all cities, including charter cities.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 65913.5 is added to the Government
line 2 Code, to read:
line 3 65913.5. (a) (1) Notwithstanding any local restrictions on
line 4 adopting zoning ordinances enacted by the jurisdiction, including
line 5 restrictions enacted by a local voter initiative, that limit the
line 6 legislative body’s ability to adopt zoning ordinances, a local
line 7 government may pass an ordinance to zone a parcel for up to 10
line 8 units of residential density per parcel, at a height specified by the
line 9 local government in the ordinance, if the parcel is located in one
line 10 of the following:
line 11 (A) A transit-rich area.
line 12 (B) A jobs-rich area.
line 13 (C) An urban infill site.
line 14 (2) An ordinance adopted in accordance with this subdivision
line 15 subdivision, and any resolution adopted to amend the jurisdiction’s
line 16 General Plan to be consistent with that zoning ordinance, shall
line 17 not constitute a “project” for purposes of Division 13 (commencing
line 18 with Section 21000) of the Public Resources Code.
line 19 (3) Paragraph (1) shall not apply to parcels located within a very
line 20 high fire hazard severity zone, as determined by the Department
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— 2 — SB 10
line 1 of Forestry and Fire Protection pursuant to Section 51178, or within
line 2 a high or very high fire hazard severity zone as indicated on maps
line 3 adopted by the Department of Forestry and Fire Protection pursuant
line 4 to Section 4202 of the Public Resources Code. This paragraph
line 5 does not apply to parcels excluded from the specified hazard zones
line 6 by a local agency pursuant to subdivision (b) of Section 51179, or
line 7 sites that have adopted fire hazard mitigation measures pursuant
line 8 to existing building standards or state fire mitigation measures
line 9 applicable to the development.
line 10 (b) (1) Notwithstanding any other law, a residential or
line 11 mixed-use residential project consisting of more than 10 new
line 12 residential units on one or more parcels that have been zoned to
line 13 permit residential development pursuant to this section shall not
line 14 be approved ministerially or by right, and shall not be exempt from
line 15 Division 13 (commencing with Section 21000) of the Public
line 16 Resources Code.
line 17 (2) Paragraph (1) shall not apply to a project to create no more
line 18 than two accessory dwelling units and no more than two junior
line 19 accessory dwelling units per parcel pursuant to Sections 65852.2
line 20 and 65852.22 of the Government Code.
line 21 (3) A project may not be divided into smaller projects in order
line 22 to exclude the project from the prohibition in this subdivision.
line 23 (c) For purposes of this section:
line 24 (1) “High-quality bus corridor” means a corridor with fixed
line 25 route bus service that meets all of the following criteria:
line 26 (A) It has average service intervals of no more than 15 minutes
line 27 during the three peak hours between 6 a.m. to 10 a.m., inclusive,
line 28 and the three peak hours between 3 p.m. and 7 p.m., inclusive, on
line 29 Monday through Friday.
line 30 (B) It has average service intervals of no more than 20 minutes
line 31 during the hours of 6 a.m. to 10 a.m., inclusive, on Monday through
line 32 Friday.
line 33 (C) It has average intervals of no more than 30 minutes during
line 34 the hours of 8 a.m. to 10 p.m., inclusive, on Saturday and Sunday.
line 35 (2) (A) “Jobs-rich area” means an area identified by the
line 36 Department of Housing and Community Development in
line 37 consultation with the Office of Planning and Research and other
line 38 necessary stakeholders that is high opportunity and either is jobs
line 39 rich or would enable shorter commute distances based on whether,
line 40 in a regional analysis, the tract meets both of the following:
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SB 10 — 3 —
line 1 (i) The tract is high opportunity, meaning its characteristics are
line 2 associated with positive educational and economic outcomes for
line 3 households of all income levels residing in the tract.
line 4 (ii) The tract meets either of the following criteria:
line 5 (I) New housing sited in the tract would enable residents to live
line 6 near more jobs than is typical for tracts in the region.
line 7 (II) New housing sited in the tract would enable shorter commute
line 8 distances for residents, relative to existing commute patterns and
line 9 jobs-housing fit.
line 10 (B) The Department of Housing and Community Development
line 11 shall, commencing on January 1, 2022, 2023, publish and update,
line 12 every five years thereafter, a map of the state showing the areas
line 13 identified by the department as “jobs-rich areas.” The department
line 14 shall begin with the most current version of the Department of
line 15 Housing and Community Development and California Tax Credit
line 16 Allocation Committee Opportunity Maps and update the
line 17 methodology as it determines is appropriate to advance the goals
line 18 of subparagraph (A).
line 19 (3) “Transit-rich area” means a parcel within one-half mile of
line 20 a major transit stop, as defined in Section 21064.3 of the Public
line 21 Resources Code, or a parcel on a high-quality bus corridor.
line 22 (4) “Urban infill site” means a site that satisfies all of the
line 23 following:
line 24 (A) A site that is a legal parcel or parcels located in a city if,
line 25 and only if, the city boundaries include some portion of either an
line 26 urbanized area or urban cluster, as designated by the United States
line 27 Census Bureau, or, for unincorporated areas, a legal parcel or
line 28 parcels wholly within the boundaries of an urbanized area or urban
line 29 cluster, as designated by the United States Census Bureau.
line 30 (B) A site in which at least 75 percent of the perimeter of the
line 31 site adjoins parcels that are developed with urban uses. For the
line 32 purposes of this section, parcels that are only separated by a street
line 33 or highway shall be considered to be adjoined.
line 34 (C) A site that is zoned for residential use or residential
line 35 mixed-use development, or has a general plan designation that
line 36 allows residential use or a mix of residential and nonresidential
line 37 uses, with at least two-thirds of the square footage of the
line 38 development designated for residential use.
line 39 (d) The Legislature finds and declares that ensuring the adequate
line 40 production of affordable housing is a matter of statewide concern
98
— 4 — SB 10
line 1 and is not a municipal affair as that term is used in Section 5 of
line 2 Article XI of the California Constitution. Therefore, this section
line 3 applies to all cities, including charter cities.
O
98
SB 10 — 5 —
AMENDED IN SENATE MARCH 8, 2021
SENATE BILL No. 15
Introduced by Senator Portantino
December 7, 2020
An act to add Chapter 2.9 (commencing with Section 50495) to Part
2 of Division 31 of the Health and Safety Code, relating to housing.
legislative counsel’s digest
SB 15, as amended, Portantino. Housing development: incentives:
rezoning of idle retail sites.
Existing law establishes, among other housing programs, the
Workforce Housing Reward Program, which requires the Department
of Housing and Community Development to make local assistance
grants to cities, counties, and cities and counties that provide land use
approval to housing developments that are affordable to very low and
low-income households.
This bill, upon appropriation by the Legislature in the annual Budget
Act or other statute, would require the department to administer a
program to provide incentives in the form of grants allocated as provided
to local governments that rezone idle sites used for a big box retailer
or a commercial shopping center to instead allow the development of
workforce housing. housing, as defined. The bill would define various
terms for these purposes. In order to be eligible for a grant, the bill
would require a local government, among other things, to apply to the
department for an allocation of grant funds and provide documentation
that it has met specified requirements, including certain labor-related
requirements. The bill would make the allocation of these grants subject
to appropriation by the Legislature in the annual Budget Act or other
statute.
98
The bill would require the department to issue a Notice of Funding
Availability for each calendar year in which funds are made available
for these purposes. The bill would require that the amount of grant
awarded to each eligible local government be equal to 7 times the
average amount of annual sales and use tax revenue generated by each
idle site identified in the local government’s application over the 7 years
immediately preceding the date of the local government’s application,
subject to certain modifications, and that the local government receive
this amount in one lump-sum following the date of the local
government’s application. The bill, upon appropriation by the
Legislature in the annual Budget Act or other statute, would authorize
the department to review, adopt, amend, and repeal guidelines to
implement uniform standards or criteria that supplement or clarify the
terms, references, or standards for this program and exempt those
guidelines from the rulemaking provisions of the Administrative
Procedure Act. The bill would make its provisions operative on and
after January 1, 2023.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. Chapter 2.9 (commencing with Section 50495)
line 2 is added to Part 2 of Division 31 of the Health and Safety Code,
line 3 to read:
line 4
line 5 Chapter 2.9. Retail Site Rezoning Incentives
line 6
line 7 50495. For purposes of this chapter:
line 8 (a) “Applicant” means a public agency or private entity that
line 9 submits an application to a local government to undertake a
line 10 workforce housing housing, as defined in subdivision (k),
line 11 development project on sites rezoned pursuant to this chapter.
line 12 (b) “Big box retailer” means a store of greater than 75,000
line 13 square feet of gross buildable area that generates or previously
line 14 generated sales or use tax pursuant to the Bradley-Burns Uniform
line 15 Local Sales and Use Tax Law (Part 1.5 (commencing with Section
line 16 7200) of Division 2 of the Revenue and Taxation Code.
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line 1 (c) “Commercial shopping center” means a group of two or
line 2 more stores that maintain a common parking lot for patrons of
line 3 those stores.
line 4 (d) “Idle” means that at least 80 percent of the leased or rentable
line 5 square footage of the big box retailer or commercial shopping
line 6 center site is not occupied for at least a 12-month calendar period.
line 7 (e) “Local government” means a city, county, or city and county.
line 8 (f) “NOFA” means Notice of Funding Availability.
line 9 (g) “Project labor agreement” has the same meaning as in
line 10 paragraph (1) of subdivision (b) of Section 2500 of the Public
line 11 Contract Code.
line 12 (h) “Sales and use tax revenue” means the cumulative amount
line 13 of revenue generated by taxes imposed by a local government in
line 14 accordance with both of the following laws:
line 15 (1) The Bradley-Burns Uniform Local Sales and Use Tax Law
line 16 (Part 1.5 (commencing with Section 7200) of Division 2 of the
line 17 Revenue and Taxation Code).
line 18 (2) The Transactions and Use Tax Law (Part 1.6 (commencing
line 19 with Section 7251) of Division 2 of the Revenue and Taxation
line 20 Code).
line 21 (i) “Skilled and trained workforce” has the same meaning as
line 22 provided in Chapter 2.9 (commencing with Section 2600) of Part
line 23 1 of Division 2 of the Public Contract Code.
line 24 (j) (1) “Use by right” means that the local government’s review
line 25 of a workforce housing housing, as defined in subdivision (k),
line 26 development does not require a conditional use permit, planned
line 27 unit development permit, or other discretionary local government
line 28 review or approval that would constitute a “project” for purposes
line 29 of Division 13 (commencing with Section 21000) of the Public
line 30 Resources Code. Any subdivision of the sites shall be subject to
line 31 all laws, including, but not limited to, the local government
line 32 ordinance implementing the Subdivision Map Act (Division 2
line 33 (commencing with Section 66410) of Title 7 of the Government
line 34 Code).
line 35 (2) A local ordinance may provide that “use by right” does not
line 36 exempt the use from design review. However, that design review
line 37 shall not constitute a “project” for purposes of Division 13
line 38 (commencing with Section 21000) of the Public Resources Code.
line 39 (k) “Workforce housing” “Housing” means an owner-occupied
line 40 or rental housing development in which 100 percent of the
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SB 15 — 3 —
line 1 development project’s total units, exclusive of a manager’s unit
line 2 or units, are for lower income households, as defined in Section
line 3 50079.5, or for moderate-income households, as defined in Section
line 4 50053. Units in the development shall be offered at an affordable
line 5 housing cost, as defined in Section 50052.5, or at affordable rent,
line 6 as defined in Section 50053, except that the rent or sales price for
line 7 a moderate-income unit shall be at least 20 percent below the
line 8 market rate for a unit of similar size and bedroom count in the
line 9 same neighborhood in the city, county, or city and county in which
line 10 the housing development is located. The developer of the workforce
line 11 housing shall provide the local government with evidence to
line 12 establish that the units meet the requirements of this subdivision.
line 13 All units, exclusive of any manager’s unit or units, shall be
line 14 restricted as provided in this subdivision for at least the following
line 15 periods of time:
line 16 (A) Fifty-five years for units that are rented. However, the local
line 17 government may require that the rental units in the housing
line 18 development project be restricted to lower income households for
line 19 a longer period of time if that restriction is consistent with all
line 20 applicable regulatory requirements for state assistance.
line 21 (B) Forty-five years for units that are owner occupied. However,
line 22 the local government may require that owner-occupied units in
line 23 the housing development project be restricted to lower income
line 24 households for a longer period of time if that restriction is
line 25 consistent with all applicable regulatory requirements for state
line 26 assistance.
line 27 50495.2. Upon appropriation by the Legislature in the annual
line 28 Budget Act or other statute, the department shall administer a
line 29 program to provide incentives in the form of grants allocated in
line 30 accordance with this chapter to local governments that rezone idle
line 31 sites used for a big box retailer or a commercial shopping center
line 32 to instead allow the development of workforce housing. housing,
line 33 as defined in subdivision (k) of Section 50495.
line 34 50495.4. In order to be eligible for a grant under this chapter,
line 35 a local government shall do all of the following:
line 36 (a) Rezone one or more idle sites used for a big box retailer or
line 37 commercial shopping center to allow workforce housing housing,
line 38 as defined in subdivision (k) of Section 50495, as a use by right.
line 39 (b) Approve and issue a certificate of occupancy for a workforce
line 40 housing housing, as defined in subdivision (k) of Section 50495,
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line 1 development on each site rezoned pursuant to subdivision (a) for
line 2 which the local government seeks an incentive pursuant to this
line 3 chapter.
line 4 (c) Impose the requirements described in Sections 50495.5 and
line 5 50495.5.1 on all applicants.
line 6 (d) Apply to the department for an allocation of grant funds and
line 7 provide documentation that it has complied with the requirements
line 8 of this section.
line 9 50495.5. For purposes of subdivision (c) of Section 50495.4,
line 10 a local government shall impose all of the following requirements
line 11 on all applicants:
line 12 (a) (1) For an applicant that is a public agency, the applicant
line 13 shall not prequalify or shortlist, or award a contract to, an entity
line 14 for the performance of any portion of the workforce housing
line 15 housing, as defined in subdivision (k) of Section 50495,
line 16 development project unless the entity provides an enforceable
line 17 commitment to the applicant that the entity and its subcontractors
line 18 at every tier will use a skilled and trained workforce to perform
line 19 all work on the project or contract that falls within an
line 20 apprenticeable occupation in the building and construction trades.
line 21 (2) Paragraph (1) does not apply if any of the following
line 22 requirements are met:
line 23 (A) The public agency applicant has entered into a project labor
line 24 agreement that will bind all contractors and subcontractors
line 25 performing work on the project or contract to use a skilled and
line 26 trained workforce, and the entity agrees to be bound by that project
line 27 labor agreement.
line 28 (B) The project or contract is being performed under the
line 29 extension or renewal of a project labor agreement that was entered
line 30 into by the public agency applicant before January 1, 2021. 2023.
line 31 (C) The entity has entered into a project labor agreement that
line 32 will bind the entity and all of its subcontractors at every tier
line 33 performing the project or contract to use a skilled and trained
line 34 workforce.
line 35 (b) For an applicant that is a private entity, the applicant shall
line 36 do both of the following:
line 37 (1) Demonstrate to the local government that either of the
line 38 following is true:
line 39 (A) The entirety of the workforce housing housing, as defined
line 40 in subdivision (k) of Section 50495, development project is a public
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SB 15 — 5 —
line 1 work for purposes of Chapter 1 (commencing with Section 1720)
line 2 of Part 7 of Division 2 of the Labor Code.
line 3 (B) If the project is not in its entirety a public work, all
line 4 construction workers employed in the execution of the project will
line 5 be paid at least the general prevailing rate of per diem wages for
line 6 the type of work and geographic area, as determined by the Director
line 7 of Industrial Relations pursuant to Sections 1773 and 1773.9 of
line 8 the Labor Code, except that apprentices registered in programs
line 9 approved by the Chief of the Division of Apprenticeship Standards
line 10 may be paid at least the applicable apprentice prevailing rate.
line 11 (2) Demonstrate to the local government that a skilled and
line 12 trained workforce will be used to perform all construction work
line 13 on the project.
line 14 50495.5.1. (a) If a workforce housing housing, as defined in
line 15 subdivision (k) of Section 50495, development project is subject
line 16 to subparagraph (B) of paragraph (1) of subdivision (b) of Section
line 17 50495.5, then, for those portions of the project that are not a public
line 18 work, all of the following shall apply:
line 19 (1) The private entity applicant shall ensure that the prevailing
line 20 wage requirement is included in all contracts for the performance
line 21 of the work on the project.
line 22 (2) All contractors and subcontractors shall pay to all
line 23 construction workers employed in the execution of the work at
line 24 least the general prevailing rate of per diem wages, except that
line 25 apprentices registered in programs approved by the Chief of the
line 26 Division of Apprenticeship Standards may be paid at least the
line 27 applicable apprentice prevailing rate.
line 28 (3) (A) Except as provided in subparagraph (C), all contractors
line 29 and subcontractors shall maintain and verify payroll records
line 30 pursuant to Section 1776 of the Labor Code and make those records
line 31 available for inspection and copying as provided by that section.
line 32 (B) Except as provided in subparagraph (C), the obligation of
line 33 the contractors and subcontractors to pay prevailing wages may
line 34 be enforced by the Labor Commissioner through the issuance of
line 35 a civil wage and penalty assessment pursuant to Section 1741 of
line 36 the Labor Code, which may be reviewed pursuant to Section 1742
line 37 of the Labor Code, within 18 months after the completion of the
line 38 project, by an underpaid worker through an administrative
line 39 complaint or civil action, or by a joint labor-management
line 40 committee through a civil action under Section 1771.2 of the Labor
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— 6 — SB 15
line 1 Code. If a civil wage and penalty assessment is issued, the
line 2 contractor, subcontractor, and surety on a bond or bonds issued to
line 3 secure the payment of wages covered by the assessment shall be
line 4 liable for liquidated damages pursuant to Section 1742.1 of the
line 5 Labor Code.
line 6 (C) Subparagraphs (A) and (B) do not apply if all contractors
line 7 and subcontractors performing work on the project are subject to
line 8 a project labor agreement that requires the payment of prevailing
line 9 wages to all construction workers employed in the execution of
line 10 the project and provides for enforcement of that obligation through
line 11 an arbitration procedure.
line 12 (4) Notwithstanding subdivision (c) of Section 1773.1 of the
line 13 Labor Code, the requirement that employer payments not reduce
line 14 the obligation to pay the hourly straight time or overtime wages
line 15 found to be prevailing shall not apply if otherwise provided in a
line 16 bona fide collective bargaining agreement covering the worker.
line 17 The requirement to pay at least the general prevailing rate of per
line 18 diem wages does not preclude use of an alternative workweek
line 19 schedule adopted pursuant to Section 511 or 514 of the Labor
line 20 Code.
line 21 (b) An applicant that is a private entity subject to paragraph (2)
line 22 of subdivision (b) of Section 50495.5 shall comply with all of the
line 23 following requirements for the workforce housing housing, as
line 24 defined in subdivision (k) of Section 50495, development project:
line 25 (1) The private entity applicant shall require in all contracts for
line 26 the performance of work that every contractor and subcontractor
line 27 at every tier will individually use a skilled and trained workforce
line 28 to complete the project.
line 29 (2) Every contractor and subcontractor shall use a skilled and
line 30 trained workforce to complete the project.
line 31 (3) (A) Except as provided in subparagraph (B), the private
line 32 entity applicant shall provide to the local government, on a monthly
line 33 basis while the project or contract is being performed, a report
line 34 demonstrating compliance with Chapter 2.9 (commencing with
line 35 Section 2600) of Part 1 of Division 2 of the Public Contract Code.
line 36 A monthly report provided to the local government pursuant to
line 37 this clause shall be a public record under the California Public
line 38 Records Act (Chapter 3.5 (commencing with Section 6250) of
line 39 Division 7 of Title 1 of the Government Code) and shall be open
line 40 to public inspection. A private entity applicant that fails to provide
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SB 15 — 7 —
line 1 a monthly report demonstrating compliance with Chapter 2.9
line 2 (commencing with Section 2600) of Part 1 of Division 2 of the
line 3 Public Contract Code shall be subject to a civil penalty of ten
line 4 thousand dollars ($10,000) per month for each month for which
line 5 the report has not been provided. Any contractor or subcontractor
line 6 that fails to use a skilled and trained workforce shall be subject to
line 7 a civil penalty of two hundred dollars ($200) per day for each
line 8 worker employed in contravention of the skilled and trained
line 9 workforce requirement. Penalties may be assessed by the Labor
line 10 Commissioner within 18 months of completion of the project using
line 11 the same procedures for issuance of civil wage and penalty
line 12 assessments pursuant to Section 1741 of the Labor Code, and may
line 13 be reviewed pursuant to the same procedures in Section 1742 of
line 14 the Labor Code. Penalties shall be paid to the State Public Works
line 15 Enforcement Fund.
line 16 (B) Subparagraph (A) does not apply if all contractors and
line 17 subcontractors performing work on the project are subject to a
line 18 project labor agreement that requires compliance with the skilled
line 19 and trained workforce requirement and provides for enforcement
line 20 of that obligation through an arbitration procedure.
line 21 50495.6. (a) Upon appropriation by the Legislature in the
line 22 annual Budget Act or other statute for purposes of this chapter,
line 23 the department shall allocate a grant to each local government that
line 24 meets the criteria specified in Section 50495.4 in an amount
line 25 determined pursuant to subdivision (b). For each calendar year in
line 26 which funds are made available for purposes of this chapter, the
line 27 department shall issue a NOFA for the distribution of funds to a
line 28 local government during the 12-month period subsequent to the
line 29 NOFA. The department shall accept applications from applicants
line 30 at the end of the 12-month period.
line 31 (b) The amount of grant provided to each eligible local
line 32 government shall be as follows:
line 33 (1) Subject to paragraphs (2) and (3), the amount of the grant
line 34 shall be equal to seven times the average amount of annual sales
line 35 and use tax revenue generated by each idle site identified in the
line 36 local government’s application that meets the criteria specified in
line 37 subdivisions (a) and (b) of Section 50495.4 over the seven years
line 38 immediately preceding the date of the local government’s
line 39 application.
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line 1 (2) For any idle big box retailer or commercial shopping center
line 2 site rezoned by a local government in accordance with subdivision
line 3 (a) of Section 50495.4 to allow mixed uses, the amount of grant
line 4 pursuant to paragraph (1) shall be reduced in proportion to the
line 5 percentage of the square footage of the development that is used
line 6 for a use other than workforce housing. housing, as defined in
line 7 subdivision (k) of Section 50495.
line 8 (3) If for any NOFA the amount of funds made available for
line 9 purposes of this chapter is insufficient to provide each eligible
line 10 local government with the full amount specified in paragraphs (1)
line 11 and (2), based on the number of applications received, the
line 12 department shall reduce the amount of grant funds awarded to each
line 13 eligible local government proportionally.
line 14 (c) The department shall allocate the amount determined
line 15 pursuant to subdivision (b) to each eligible local government in
line 16 one lump-sum following the date of the local government’s
line 17 application.
line 18 50495.8. Upon appropriation by the Legislature in the annual
line 19 Budget Act or other statute, the department may review, adopt,
line 20 amend, and repeal guidelines to implement uniform standards or
line 21 criteria that supplement or clarify the terms, references, or standards
line 22 set forth in this chapter. Any guidelines or terms adopted pursuant
line 23 to this chapter shall not be subject to Chapter 3.5 (commencing
line 24 with Section 11340) of Part 1 of Division 3 of Title 2 of the
line 25 Government Code.
line 26 50495.9. This chapter shall be operative on and after January
line 27 1, 2023.
O
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SB 15 — 9 —
AMENDED IN SENATE MARCH 1, 2021
SENATE BILL No. 44
Introduced by Senator Allen
December 7, 2020
An act to add Section 21168.6.9 to the Public Resources Code,
relating to environmental quality.
legislative counsel’s digest
SB 44, as amended, Allen. California Environmental Quality Act:
streamlined judicial review: environmental leadership transit projects.
The California Environmental Quality Act (CEQA) requires a lead
agency, as defined, to prepare, or cause to be prepared, and certify the
completion of, an environmental impact report (EIR) on a project that
it proposes to carry out or approve that may have a significant effect
on the environment or to adopt a negative declaration if it finds that the
project will not have that effect. CEQA also requires a lead agency to
prepare a mitigated negative declaration for a project that may have a
significant effect on the environment if revisions in the project would
avoid or mitigate that effect and there is no substantial evidence that
the project, as revised, would have a significant effect on the
environment. CEQA establishes a procedure by which a person may
seek judicial review of the decision of the lead agency made pursuant
to CEQA.
This bill would establish specified procedures for the administrative
and judicial review of the environmental review and approvals granted
for an environmental leadership transit project, as defined, undertaken
by a public agency. proposed by a public or private entity or its
affiliates. The bill would require the Judicial Council, on or before April
1, 2022, to adopt rules of court establishing procedures requiring actions
98
or proceedings seeking judicial review pursuant to CEQA or the granting
of project approvals, including any appeals to the court of appeal or the
Supreme Court, to be resolved, to the extent feasible, within 270 days
of the filing of the certified record of proceedings with the court to an
action or proceeding seeking judicial review of the lead agency’s action
related to an environmental leadership transit project. The bill would
require the environmental leadership transit project to meet certain labor
requirements.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 21168.6.9 is added to the Public
line 2 Resources Code, to read:
line 3 21168.6.9. (a) For purposes of this section, the following
line 4 definitions apply:
line 5 (1) “Environmental leadership transit project” means a project
line 6 proposed by a public agency to construct a fixed guideway and
line 7 related fixed facilities that meets all of the following conditions:
line 8 (A) The fixed guideway operates at zeroemissions. zero
line 9 emissions.
line 10 (B) (i) If the project is more than two miles in length, the project
line 11 reduces emissions by no less than 400,000 metric tons of
line 12 greenhouse gases directly in the corridor of the project defined in
line 13 the applicable environmental document over the useful life of the
line 14 project, without using offsets.
line 15 (ii) If the project is no more than two miles in length, the project
line 16 reduces emissions by no less than 50,000 metric tons of greenhouse
line 17 gases directly in the corridor of the project defined in the applicable
line 18 environmental document over the useful life of the project, without
line 19 using offsets.
line 20 (C) The project reduces no less than 30,000,000 vehicle miles
line 21 traveled in the corridor of the project defined in the applicable
line 22 environmental document over the useful life of the project.
line 23 (D) The project is consistent with the applicable sustainable
line 24 communities strategy or alternative planning strategy.
line 25 (E) The project is consistent with the applicable regional
line 26 transportation plan.
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line 1 (F) The public agency project applicant demonstrates how it
line 2 has incorporated sustainable infrastructure practices to achieve
line 3 sustainability, resiliency, and climate change mitigation and
line 4 adaptation goals in the project, including principles, frameworks,
line 5 or guidelines as recommended by one or more of the following:
line 6 (i) The sustainability, resiliency, and climate change policies
line 7 and standards of the American Society of Civil Engineers.
line 8 (ii) The Envision Rating System of the Institute for Sustainable
line 9 Infrastructure.
line 10 (iii) The Leadership in Energy and Environment Design (LEED)
line 11 rating system of the United States Green Building Council.
line 12 (2) “Fixed guideway” has the same meaning as is defined in
line 13 Section 5302 of Title 49 of the United States Code.
line 14 (3) “Project applicant” means a public or private entity or its
line 15 affiliates that proposes an environmental leadership transit project
line 16 and its successors, heirs, and assignees.
line 17 (3)
line 18 (4) “Project labor agreement” has the same meaning as in
line 19 paragraph (1) of subdivision (b) of Section 2500 of the Public
line 20 Contract Code.
line 21 (4)
line 22 (5) “Skilled and trained workforce” has the same meaning as
line 23 provided in Chapter 2.9 (commencing with Section 2600) of Part
line 24 1 of Division 2 of the Public Contract Code.
line 25 (b) (1) Except as provided in paragraph (2), an entity shall not
line 26 be prequalified or shortlisted or awarded a contract by the public
line 27 agency project applicant to perform any portion of the
line 28 environmental leadership transit project unless the entity provides
line 29 an enforceable commitment to the public agency project applicant
line 30 that the entity and its subcontractors at every tier will use a skilled
line 31 and trained workforce to perform all work on the project or contract
line 32 that falls within an apprenticeable occupation in the building and
line 33 construction trades.
line 34 (2) Paragraph (1) does not apply if any of the following
line 35 requirements are met:
line 36 (A) The public agency project applicant has entered into a
line 37 project labor agreement that will bind all contractors and
line 38 subcontractors performing work on a project or contract to use a
line 39 skilled and trained workforce, and the contractor agrees to be bound
line 40 by that project labor agreement.
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SB 44 — 3 —
line 1 (B) A project is being performed under the extension or renewal
line 2 of a project labor agreement that was entered into by the public
line 3 agency project applicant before January 1, 2022.
line 4 (C) The public agency project applicant has entered into a
line 5 project labor agreement that will bind all contractors and all of its
line 6 subcontractors at every tier performing a project to use a skilled
line 7 and trained workforce.
line 8 (c) On or before April 1, 2022, the Judicial Council shall adopt
line 9 rules of court that apply to any action or proceeding brought to
line 10 attack, review, set aside, void, or annul the certification of an
line 11 environmental impact report for an environmental leadership transit
line 12 project or the granting of any project approval that require the
line 13 action or proceeding, including any potential appeals to the court
line 14 of appeal or the Supreme Court, to be resolved, to the extent
line 15 feasible, within 270 business days of the filing of the certified
line 16 record of proceedings with the court.
line 17 (d) (1) The draft and final environmental impact report for a an
line 18 environmental leadership transit project shall include a notice in
line 19 not less than 12-point type stating the following:
line 20
line 21 THIS ENVIRONMENTAL IMPACT REPORT IS SUBJECT
line 22 TO SECTION 21168.6.9 OF THE PUBLIC RESOURCES CODE,
line 23 WHICH PROVIDES, AMONG OTHER THINGS, THAT THE
line 24 LEAD AGENCY NEED NOT CONSIDER CERTAIN
line 25 COMMENTS FILED AFTER THE CLOSE OF THE PUBLIC
line 26 COMMENT PERIOD, IF ANY, FOR THE DRAFT
line 27 ENVIRONMENTAL IMPACT REPORT. ANY JUDICIAL
line 28 ACTION CHALLENGING THE CERTIFICATION OR
line 29 ADOPTION OF THE ENVIRONMENTAL IMPACT REPORT
line 30 OR THE APPROVAL OF THE PROJECT DESCRIBED IN
line 31 SECTION 21168.6.9 OF THE PUBLIC RESOURCES CODE IS
line 32 SUBJECT TO THE PROCEDURES SET FORTH IN THAT
line 33 SECTION. A COPY OF SECTION 21168.6.9 OF THE PUBLIC
line 34 RESOURCES CODE IS INCLUDED IN THE APPENDIX TO
line 35 THIS ENVIRONMENTAL IMPACT REPORT.
line 36 (2) The draft environmental impact report and final
line 37 environmental impact report shall contain, as an appendix, the full
line 38 text of this section.
line 39 (3) Within 10 days after the release of the draft environmental
line 40 impact report, the lead agency shall conduct an informational
98
— 4 — SB 44
line 1 workshop to inform the public of the key analyses and conclusions
line 2 of that document.
line 3 (4) Within 10 days before the close of the public comment
line 4 period, the lead agency shall hold a public hearing to receive
line 5 testimony on the draft environmental impact report. A transcript
line 6 of the hearing shall be included as an appendix to the final
line 7 environmental impact report.
line 8 (5) (A) Within five days following the close of the public
line 9 comment period, a commenter on the draft environmental impact
line 10 report may submit to the lead agency a written request for
line 11 nonbinding mediation. The lead agency shall participate in
line 12 nonbinding mediation with all commenters who submitted timely
line 13 comments on the draft environmental impact report and who
line 14 requested the mediation. Mediation conducted pursuant to this
line 15 paragraph shall end no later than 35 days after the close of the
line 16 public comment period.
line 17 (B) A request for mediation shall identify all areas of dispute
line 18 raised in the comment submitted by the commenter that are to be
line 19 mediated.
line 20 (C) The lead agency shall select one or more mediators who
line 21 shall be retired judges or recognized experts with at least five
line 22 years’ experience in land use and environmental law or science,
line 23 or mediation. The lead agency shall bear the costs of mediation.
line 24 (D) A mediation session shall be conducted on each area of
line 25 dispute with the parties requesting mediation on that area of
line 26 dispute.
line 27 (E) The lead agency shall adopt, as a condition of approval, any
line 28 measures agreed upon by the lead agency and any commenter who
line 29 requested mediation. A commenter who agrees to a measure
line 30 pursuant to this subparagraph shall not raise the issue addressed
line 31 by that measure as a basis for an action or proceeding challenging
line 32 the lead agency’s decision to certify the environmental impact
line 33 report or to grant project approval.
line 34 (6) The lead agency need not consider written comments
line 35 submitted after the close of the public comment period, unless
line 36 those comments address any of the following:
line 37 (A) New issues raised in the response to comments by the lead
line 38 agency.
line 39 (B) New information released by the public agency lead agency
line 40 subsequent to the release of the draft environmental impact report,
98
SB 44 — 5 —
line 1 such as new information set forth or embodied in a staff report,
line 2 proposed permit, proposed resolution, ordinance, or similar
line 3 documents.
line 4 (C) Changes made to the project after the close of the public
line 5 comment period.
line 6 (D) Proposed conditions for approval, mitigation measures, or
line 7 proposed findings required by Section 21081 or a proposed
line 8 reporting or monitoring program required by paragraph (1) of
line 9 subdivision (a) of Section 21081.6, if the lead agency releases
line 10 those documents subsequent to the release of the draft
line 11 environmental impact report.
line 12 (E) New information that was not reasonably known and could
line 13 not have been reasonably known during the public comment period.
line 14 (7) The lead agency shall file the notice required by subdivision
line 15 (a) of Section 21152 within five days after the last initial project
line 16 approval.
line 17 (e) (1) The lead agency shall prepare and certify the record of
line 18 proceedings in accordance with this subdivision and in accordance
line 19 with Rule 3.1365 of the California Rules of Court.
line 20 (2) No later than three business days following the date of the
line 21 release of the draft environmental impact report, the lead agency
line 22 shall make available to the public in a readily accessible electronic
line 23 format the draft environmental impact report and all other
line 24 documents relied on by the lead agency in the preparation of the
line 25 draft environmental impact report. A document prepared by the
line 26 lead agency after the date of the release of the draft environmental
line 27 impact report that is a part of the record of proceedings shall be
line 28 made available to the public in a readily accessible electronic
line 29 format within five business days after the document is prepared
line 30 by the lead agency.
line 31 (3) Notwithstanding paragraph (2), documents relied on by the
line 32 lead agency that were not prepared specifically for the project and
line 33 are copyright-protected copyright protected are not required to be
line 34 made readily accessible in an electronic format. For those copyright
line 35 protected documents, the lead agency shall make an index of the
line 36 documents available in an electronic format no later than the date
line 37 of the release of the draft environmental impact report, or within
line 38 five business days if the document is received or relied on by the
line 39 lead agency after the release of the draft environmental impact
line 40 report. The index shall specify the libraries or lead agency offices
98
— 6 — SB 44
line 1 in which hardcopies of the copyrighted materials are available for
line 2 public review.
line 3 (4) The lead agency shall encourage written comments on the
line 4 project to be submitted in a readily accessible electronic format,
line 5 and shall make any such comments available to the public in a
line 6 readily accessible electronic format within five days of their receipt.
line 7 (5) Within seven business days after the receipt of any comment
line 8 that is not in an electronic format, the lead agency shall convert
line 9 that comment into a readily accessible electronic format and make
line 10 it available to the public in that format.
line 11 (6) The lead agency shall indicate in the record of proceedings
line 12 comments received that were not considered by the lead agency
line 13 pursuant to paragraph (6) of subdivision (c) and need not include
line 14 the content of the comments as a part of the record of proceedings.
line 15 (7) Within five days after the filing of the notice required by
line 16 subdivision (a) of Section 21152, the lead agency shall certify the
line 17 record of proceedings for the approval or determination and shall
line 18 provide an electronic copy of the record of proceedings to a party
line 19 that has submitted a written request for a copy. The lead agency
line 20 may charge and collect a reasonable fee from a party requesting
line 21 a copy of the record of proceedings for the electronic copy, which
line 22 shall not exceed the reasonable cost of reproducing that copy.
line 23 (8) Within 10 days after being served with a complaint or a
line 24 petition for a writ of mandate, the lead agency shall lodge a copy
line 25 of the certified record of proceedings with the superior court.
line 26 (9) Any dispute over the content of the record of proceedings
line 27 shall be resolved by the superior court. Unless the superior court
line 28 directs otherwise, a party disputing the content of the record of
line 29 proceedings shall file a motion to augment the record of
line 30 proceedings at the time it files its initial brief.
line 31 (10) The contents of the record of proceedings shall be as set
line 32 forth in subdivision (e) of Section 21167.6.
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SB 44 — 7 —
Senate Constitutional Amendment No. 2
Introduced by Senators Allen and Wiener
December 7, 2020
Senate Constitutional Amendment No. 2—A resolution to propose
to the people of the State of California an amendment to the Constitution
of the State, by repealing Article XXXIV thereof, relating to public
housing projects.
legislative counsel’s digest
SCA 2, as introduced, Allen. Public housing projects.
The California Constitution prohibits the development, construction,
or acquisition of a low-rent housing project, as defined, in any manner
by any state public body until a majority of the qualified electors of the
city, town, or county in which the development, construction, or
acquisition of the low-rent housing project is proposed approve the
project by voting in favor at an election, as specified.
This measure would repeal these provisions.
Vote: 2⁄3. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
line 1 Resolved by the Senate, the Assembly concurring, That the
line 2 Legislature of the State of California at its 2021–22 Regular
line 3 Session commencing on the seventh day of December 2020,
line 4 two-thirds of the membership of each house concurring, hereby
line 5 proposes to the people of the State of California, that the
line 6 Constitution of the State be amended as follows:
line 7 That Article XXXIV thereof is repealed.
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california legislature—2021–22 regular session
ASSEMBLY BILL No. 59
Introduced by Assembly Member Gabriel
December 7, 2020
An act to amend Sections 66013, 66014, 66016, 66019, and 66020
of, and to repeal Section 66022 of, the Government Code, relating to
land use.
legislative counsel’s digest
AB 59, as introduced, Gabriel. Mitigation Fee Act: fees: notice and
timelines.
The Mitigation Fee Act authorizes a local agency to establish,
increase, or impose a variety of fees, dedications, reservations, or other
exactions for services, and in connection with the approval of a
development project, as defined. Existing law prohibits a local agency
from imposing fees for specified purposes, including fees for water or
sewer connections, capacity charges, zoning variances or changes, use
permits, and building inspections or permits, among others, that exceed
the estimated reasonable cost of providing the service for which the fee
is charged, unless voter approval is obtained. Existing law requires fees
or service charges that create revenues in excess of actual cost to be
used to reduce the fee or service charge. Existing law requires a local
agency, before levying or increasing a fee or service charge, to hold at
least one open and public meeting and requires that notice of the time
and place of the meeting be mailed at least 14 days prior to the meeting
to any interested party who files a written request with the local agency
for mailed notice of the meeting on new or increased fees or service
charges. Existing law additionally requires the local agency to make
available to the public, at least 10 days prior to the meeting, the data
99
indicating the amount of cost, or estimated cost, required to provide the
service for which the fee or service charge is levied and the revenue
sources anticipated to provide the service, as specified. Existing law
also authorizes the local agency to provide notice via electronic
notification to those who specifically request it, and authorizes the
legislative body of a local agency to establish a reasonable annual charge
for sending notices based on the estimated cost of providing the service.
Existing law authorizes any party to protest the imposition of a fee,
dedication, reservation, or other exactions imposed on a development
project within 90 or 120 days of the imposition of the fee, as applicable,
and specifies procedures for those protests and actions. The act imposes
the same requirements on a local agency for a new or increased fee for
public facilities. Existing law, for specified fees, requires any judicial
action or proceeding to attack, review, set aside, void, or annul an
ordinance, resolution, or motion adopting a new fee or service charge
or modifying an existing fee or service charge to be commenced within
120 days of the effective date of the ordinance, resolution, or motion.
Existing law also provides that, if an ordinance, resolution, or motion
provides for an automatic adjustment in a fee or service charge and the
adjustment results in an increase in the fee or service charge, that any
action to attack, review, set aside, void, or annul the increase to be
commenced within 120 days of the increase.
This bill would increase, for fees and service charges and for fees for
specified public facilities, the time for mailing the notice of the time
and place of the meeting to at least 45 days before the meeting. The bill
would require the local agency to make that information available to
the public at least 30 days before the meeting. The bill would require
a local agency to additionally make available to the public all of the
data demonstrating the requisite relationship between the amount of a
fee for public facilities and the need for the public facilities. The bill
would require the data to also be made available to the public on the
local agency’s internet website. The bill would authorize interested
parties to file an electronic request to receive the notice of the meeting
time and place, and would require the local agency to mail or
electronically send the notice as requested by the party. The bill would
prohibit the legislative body of a local agency from establishing a
reasonable annual charge for sending electronic notices. The bill would
prohibit a local agency, when defending a protest or action filed for a
fee or service charge, or for fees for specified public facilities, from
using as evidence, or relying on in any way, data not made available to
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the public pursuant to these provisions. The bill would require revenues
in excess of actual cost to be used to reimburse the payor of the fee or
service charge.
This bill would also delete the provisions requiring a judicial action
or proceeding to attack, review, set aside, void, or annul an ordinance
within 120 days of the effective date of the ordinance or increase, as
applicable. The bill would instead require a judicial action or proceeding
to be conducted in accordance with other procedures that, among other
things, require a protest to be filed within 90 days after the imposition
of the fees and an action to attack, review, set aside, void, or annul the
imposition of the fees to be filed within 180 days after delivery of a
specified notice by the local agency.
By imposing new duties on local agencies, the bill would impose a
state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act
for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 66013 of the Government Code is
line 2 amended to read:
line 3 66013. (a) Notwithstanding any other provision of law, when
line 4 a local agency imposes fees for water connections or sewer
line 5 connections, or imposes capacity charges, those fees or charges
line 6 shall not exceed the estimated reasonable cost of providing the
line 7 service for which the fee or charge is imposed, unless a question
line 8 regarding the amount of the fee or charge imposed in excess of
line 9 the estimated reasonable cost of providing the services or materials
line 10 is submitted to, and approved by, a popular vote of two-thirds of
line 11 those electors voting on the issue.
line 12 (b) As used in this section:
line 13 (1) “Sewer connection” means the connection of a structure or
line 14 project to a public sewer system.
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AB 59 — 3 —
line 1 (2) “Water connection” means the connection of a structure or
line 2 project to a public water system, as defined in subdivision (h) of
line 3 Section 116275 of the Health and Safety Code.
line 4 (3) “Capacity charge” means a charge for public facilities in
line 5 existence at the time a charge is imposed or charges for new public
line 6 facilities to be acquired or constructed in the future that are of
line 7 proportional benefit to the person or property being charged,
line 8 including supply or capacity contracts for rights or entitlements,
line 9 real property interests, and entitlements and other rights of the
line 10 local agency involving capital expense relating to its use of existing
line 11 or new public facilities. A “capacity charge” does not include a
line 12 commodity charge.
line 13 (4) “Local agency” means a local agency as defined in Section
line 14 66000.
line 15 (5) “Fee” means a fee for the physical facilities necessary to
line 16 make a water connection or sewer connection, including, but not
line 17 limited to, meters, meter boxes, and pipelines from the structure
line 18 or project to a water distribution line or sewer main, and the
line 19 estimated reasonable cost of labor and materials for installation of
line 20 those facilities bears a fair or reasonable relationship to the payor’s
line 21 burdens on, or benefits received from, the water connection or
line 22 sewer connection.
line 23 (6) “Public facilities” means public facilities as defined in
line 24 Section 66000.
line 25 (c) A local agency receiving payment of a charge as specified
line 26 in paragraph (3) of subdivision (b) shall deposit it in a separate
line 27 capital facilities fund with other charges received, and account for
line 28 the charges in a manner to avoid any commingling with other
line 29 moneys of the local agency, except for investments, and shall
line 30 expend those charges solely for the purposes for which the charges
line 31 were collected. Any interest income earned from the investment
line 32 of moneys in the capital facilities fund shall be deposited in that
line 33 fund.
line 34 (d) For a fund established pursuant to subdivision (c), a local
line 35 agency shall make available to the public, within 180 days after
line 36 the last day of each fiscal year, the following information for that
line 37 fiscal year:
line 38 (1) A description of the charges deposited in the fund.
line 39 (2) The beginning and ending balance of the fund and the
line 40 interest earned from investment of moneys in the fund.
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line 1 (3) The amount of charges collected in that fiscal year.
line 2 (4) An identification of all of the following:
line 3 (A) Each public improvement on which charges were expended
line 4 and the amount of the expenditure for each improvement, including
line 5 the percentage of the total cost of the public improvement that was
line 6 funded with those charges if more than one source of funding was
line 7 used.
line 8 (B) Each public improvement on which charges were expended
line 9 that was completed during that fiscal year.
line 10 (C) Each public improvement that is anticipated to be undertaken
line 11 in the following fiscal year.
line 12 (5) A description of each interfund transfer or loan made from
line 13 the capital facilities fund. The information provided, in the case
line 14 of an interfund transfer, shall identify the public improvements on
line 15 which the transferred moneys are, or will be, expended. The
line 16 information, in the case of an interfund loan, shall include the date
line 17 on which the loan will be repaid, and the rate of interest that the
line 18 fund will receive on the loan.
line 19 (e) The information required pursuant to subdivision (d) may
line 20 be included in the local agency’s annual financial report.
line 21 (f) The provisions of subdivisions (c) and (d) shall not apply to
line 22 any of the following:
line 23 (1) Moneys received to construct public facilities pursuant to a
line 24 contract between a local agency and a person or entity, including,
line 25 but not limited to, a reimbursement agreement pursuant to Section
line 26 66003.
line 27 (2) Charges that are used to pay existing debt service or which
line 28 are subject to a contract with a trustee for bondholders that requires
line 29 a different accounting of the charges, or charges that are used to
line 30 reimburse the local agency or to reimburse a person or entity who
line 31 advanced funds under a reimbursement agreement or contract for
line 32 facilities in existence at the time the charges are collected.
line 33 (3) Charges collected on or before December 31, 1998.
line 34 (g) Any judicial action or proceeding to attack, review, set aside,
line 35 void, or annul the ordinance, resolution, or motion imposing a fee
line 36 or capacity charge subject to this section shall be brought pursuant
line 37 to Section 66022. 66020.
line 38 (h) Fees and charges subject to this section are not subject to
line 39 the provisions of Chapter 5 (commencing with Section 66000),
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AB 59 — 5 —
line 1 but are subject to the provisions of Sections 66016, 66022, 66020,
line 2 and 66023.
line 3 (i) Subdivisions (c) and (d) only apply to capacity charges levied
line 4 pursuant to this section.
line 5 SEC. 2. Section 66014 of the Government Code is amended
line 6 to read:
line 7 66014. (a) Notwithstanding any other provision of law, when
line 8 a local agency charges fees for zoning variances; zoning changes;
line 9 use permits; building inspections; building permits; filing and
line 10 processing applications and petitions filed with the local agency
line 11 formation commission or conducting preliminary proceedings or
line 12 proceedings under the Cortese-Knox-Hertzberg Local Government
line 13 Reorganization Act of 2000, Division 3 (commencing with Section
line 14 56000) of Title 5; the processing of maps under the provisions of
line 15 the Subdivision Map Act, Division 2 (commencing with Section
line 16 66410) of Title 7; or planning services under the authority of
line 17 Chapter 3 (commencing with Section 65100) of Division 1 of Title
line 18 7 or under any other authority; those fees may not exceed the
line 19 estimated reasonable cost of providing the service for which the
line 20 fee is charged, unless a question regarding the amount of the fee
line 21 charged in excess of the estimated reasonable cost of providing
line 22 the services or materials is submitted to, and approved by, a popular
line 23 vote of two-thirds of those electors voting on the issue.
line 24 (b) The fees charged pursuant to subdivision (a) may include
line 25 the costs reasonably necessary to prepare and revise the plans and
line 26 policies that a local agency is required to adopt before it can make
line 27 any necessary findings and determinations.
line 28 (c) Any judicial action or proceeding to attack, review, set
line 29 aside, void, or annul the ordinance, resolution, or motion
line 30 authorizing the charge of a fee subject to this section shall be
line 31 brought pursuant to Section 66022. 66020.
line 32 SEC. 3. Section 66016 of the Government Code is amended
line 33 to read:
line 34 66016. (a) Prior to levying a new fee or service charge, or
line 35 prior to approving an increase in an existing fee or service charge,
line 36 a local agency shall hold at least one open and public meeting, at
line 37 which oral or written presentations can be made, as part of a
line 38 regularly scheduled meeting. Notice of the time and place of the
line 39 meeting, including a general explanation of the matter to be
line 40 considered, and a statement that the data required by this section
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— 6 — AB 59
line 1 is available, shall be mailed or delivered electronically at least 14
line 2 45 days prior to the meeting to any interested party who files a
line 3 written written, including electronic, request with the local agency
line 4 for mailed or electronic notice of the meeting on new or increased
line 5 fees or service charges. Any written written, including electronic,
line 6 request for mailed or electronic notices shall be valid for one year
line 7 from the date on which it is filed unless a renewal request is filed.
line 8 Renewal requests for mailed or electronic notices shall be filed
line 9 on or before April 1 of each year. The legislative body may
line 10 establish a reasonable annual charge for sending mailed notices
line 11 based on the estimated cost of providing the service. At least 10
line 12 30 days prior to the meeting, the local agency shall make available
line 13 to the public public, including on its internet website, all of the
line 14 data indicating the amount of cost, or estimated cost, required to
line 15 provide the service for which the fee or service charge is levied
line 16 and the revenue sources anticipated to provide the service,
line 17 including General Fund general fund revenues. Unless there has
line 18 been voter approval, as prescribed by Section 66013 or 66014, no
line 19 local agency shall levy a new fee or service charge or increase an
line 20 existing fee or service charge to an amount which exceeds the
line 21 estimated amount required to provide the service for which the fee
line 22 or service charge is levied. If, however, the fees or service charges
line 23 create revenues in excess of actual cost, those revenues shall be
line 24 used to reduce reimburse the payor of the fee or service charge
line 25 creating the excess.
line 26 (b) Any action by a local agency to levy a new fee or service
line 27 charge or to approve an increase in an existing fee or service charge
line 28 shall be taken only by ordinance or resolution. The legislative body
line 29 of a local agency shall not delegate the authority to adopt a new
line 30 fee or service charge, or to increase a fee or service charge.
line 31 (c) Any costs incurred by a local agency in conducting the
line 32 meeting or meetings required pursuant to subdivision (a) may be
line 33 recovered from fees charged for the services which were the subject
line 34 of the meeting.
line 35 (d) This section shall apply only to fees and charges as described
line 36 in Sections 51287, 56383, 65104, 65456, 65584.1, 65863.7,
line 37 65909.5, 66013, 66014, and 66451.2 of this code, Sections 17951,
line 38 19132.3, and 19852 of the Health and Safety Code, Section 41901
line 39 of the Public Resources Code, and Section 21671.5 of the Public
line 40 Utilities Code.
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AB 59 — 7 —
line 1 (e) Any judicial action or proceeding to attack, review, set aside,
line 2 void, or annul the ordinance, resolution, or motion levying a fee
line 3 or service charge subject to this section shall be brought pursuant
line 4 to Section 66022. 66020.
line 5 SEC. 4. Section 66019 of the Government Code is amended
line 6 to read:
line 7 66019. (a) As used in this section:
line 8 (1) “Fee” means a fee as defined in Section 66000, but does not
line 9 include any of the following:
line 10 (A) A fee authorized pursuant to Section 66013.
line 11 (B) A fee authorized pursuant to Section 17620 of the Education
line 12 Code, or Sections 65995.5 and 65995.7.
line 13 (C) Rates or charges for water, sewer, or electrical services.
line 14 (D) Fees subject to Section 66016.
line 15 (2) “Party” means a person, entity, or organization representing
line 16 a group of people or entities.
line 17 (3) “Public facility” means a public facility as defined in Section
line 18 66000.
line 19 (b) For any fee, notice of the time and place of the meeting,
line 20 including a general explanation of the matter to be considered, and
line 21 a statement that the data required by this subdivision is available
line 22 shall be mailed or delivered electronically at least 14 45 days prior
line 23 to the first meeting to an interested party who files a written
line 24 written, including electronic, request with the city, county, or city
line 25 and county for mailed or electronic notice of a meeting on a new
line 26 or increased fee to be enacted by the city, county, or city and
line 27 county. Any written written, including electronic, request for
line 28 mailed or electronic notices shall be valid for one year from the
line 29 date on which it is filed unless a renewal request is filed. Renewal
line 30 requests for mailed or electronic notices shall be filed on or before
line 31 April 1 of each year. The legislative body of the city, county, or
line 32 city and county may establish a reasonable annual charge for
line 33 sending mailed notices based on the estimated cost of providing
line 34 the service. The legislative body may send the notice electronically.
line 35 At least 10 30 days prior to the meeting, the city, county, or city
line 36 and county shall make available to the public public, including on
line 37 its internet website, all of the data indicating the amount of cost,
line 38 or the estimated cost, required to provide the public facilities and
line 39 the revenue sources anticipated to fund those public facilities,
line 40 including general fund revenues. revenues, and demonstrating the
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— 8 — AB 59
line 1 requisite relationship between the amount of the fee and the need
line 2 for the public facilities. The new or increased fee shall be effective
line 3 no earlier than 60 days following the final action on the adoption
line 4 or increase of the fee, unless the city, county, or city and county
line 5 follows the procedures set forth in subdivision (b) of Section
line 6 66017.
line 7 (c) If a city, county, or city and county receives a request for
line 8 mailed notice pursuant to this section, or a local agency receives
line 9 a request for mailed notice pursuant to Section 66016, the city,
line 10 county, or city and county or other local agency may provide the
line 11 notice via electronic mail for those who specifically request
line 12 electronic mail notification. A city, county, city or county, or other
line 13 local agency that provides electronic mail notification pursuant to
line 14 this subdivision shall send the electronic mail notification to the
line 15 electronic mail address indicated in the request. The electronic
line 16 mail notification authorized by this subdivision shall operate as
line 17 an alternative to the mailed notice required by this section.
line 18 SEC. 5. Section 66020 of the Government Code is amended
line 19 to read:
line 20 66020. (a) Any party may protest the imposition of any fees,
line 21 dedications, reservations, or other exactions imposed on a
line 22 development project, as defined in Section 66000, by a local agency
line 23 by meeting both of the following requirements:
line 24 (1) Tendering any required payment in full or providing
line 25 satisfactory evidence of arrangements to pay the fee when due or
line 26 ensure performance of the conditions necessary to meet the
line 27 requirements of the imposition.
line 28 (2) Serving written written, including electronic, notice on the
line 29 governing body of the entity, which notice shall contain all of the
line 30 following information:
line 31 (A) A statement that the required payment is tendered or will
line 32 be tendered when due, or that any conditions which have been
line 33 imposed are provided for or satisfied, under protest.
line 34 (B) A statement informing the governing body of the factual
line 35 elements of the dispute and the legal theory forming the basis for
line 36 the protest.
line 37 (b) Compliance by any party with subdivision (a) shall not be
line 38 the basis for a local agency to withhold approval of any map, plan,
line 39 permit, zone change, license, or other form of permission, or
line 40 concurrence, whether discretionary, ministerial, or otherwise,
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AB 59 — 9 —
line 1 incident to, or necessary for, the development project. This section
line 2 does not limit the ability of a local agency to ensure compliance
line 3 with all applicable provisions of law in determining whether or
line 4 not to approve or disapprove a development project.
line 5 (c) Where a reviewing local agency makes proper and valid
line 6 findings that the construction of certain public improvements or
line 7 facilities, the need for which is directly attributable to the proposed
line 8 development, is required for reasons related to the public health,
line 9 safety, and welfare, and elects to impose a requirement for
line 10 construction of those improvements or facilities as a condition of
line 11 approval of the proposed development, then in the event a protest
line 12 is lodged pursuant to this section, that approval shall be suspended
line 13 pending withdrawal of the protest, the expiration of the limitation
line 14 period of subdivision (d) without the filing of an action, or
line 15 resolution of any action filed. This subdivision confers no new or
line 16 independent authority for imposing fees, dedications, reservations,
line 17 or other exactions not presently governed by other law.
line 18 (d) (1) A protest filed pursuant to subdivision (a) shall be filed
line 19 at the time of approval or conditional approval of the development
line 20 or within 90 days after the date of the imposition of the fees,
line 21 dedications, reservations, or other exactions to be imposed on a
line 22 development project. Each local agency shall provide to the project
line 23 applicant a notice in writing at the time of the approval of the
line 24 project or at the time of the imposition of the fees, dedications,
line 25 reservations, or other exactions, a statement of the amount of the
line 26 fees or a description of the dedications, reservations, or other
line 27 exactions, and notification that the 90-day approval period in which
line 28 the applicant may protest has begun.
line 29 (2) Any party who files a protest pursuant to subdivision (a)
line 30 may file an action to attack, review, set aside, void, or annul the
line 31 imposition of the fees, dedications, reservations, or other exactions
line 32 imposed on a development project by a local agency within 180
line 33 days after the delivery of the notice. Thereafter, notwithstanding
line 34 any other law to the contrary, all persons are barred from any action
line 35 or proceeding or any defense of invalidity or unreasonableness of
line 36 the imposition. Any proceeding brought pursuant to this
line 37 subdivision shall take precedence over all matters of the calendar
line 38 of the court except criminal, probate, eminent domain, forcible
line 39 entry, and unlawful detainer proceedings.
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line 1 (e) A local agency, when defending a protest or action filed
line 2 under this section for a fee described under Section 66016 or
line 3 Section 66019, shall not use any evidence, or rely on in any way,
line 4 data not made available to the public, including data not posted
line 5 on the local agency’s internet website, pursuant to Section 66016
line 6 or Section 66019.
line 7 (e)
line 8 (f) If the court finds in favor of the plaintiff in any action or
line 9 proceeding brought pursuant to subdivision (d), the court shall
line 10 direct the local agency to refund the unlawful portion of the
line 11 payment, with interest at the rate of 8 percent per annum, or return
line 12 the unlawful portion of the exaction imposed.
line 13 (f)
line 14 (g) (1) If the court grants a judgment to a plaintiff invalidating,
line 15 as enacted, all or a portion of an ordinance or resolution enacting
line 16 a fee, dedication, reservation, or other exaction, the court shall
line 17 direct the local agency to refund the unlawful portion of the
line 18 payment, plus interest at an annual rate equal to the average rate
line 19 accrued by the Pooled Money Investment Account during the time
line 20 elapsed since the payment occurred, or to return the unlawful
line 21 portion of the exaction imposed.
line 22 (2) If an action is filed within 120 days of the date at which an
line 23 ordinance or resolution to establish or modify a fee, dedication,
line 24 reservation, or other exactions to be imposed on a development
line 25 project takes effect, the portion of the payment or exaction
line 26 invalidated shall also be returned to any other person who, under
line 27 protest pursuant to this section and under that invalid portion of
line 28 that same ordinance or resolution as enacted, tendered the payment
line 29 or provided for or satisfied the exaction during the period from 90
line 30 days prior to the date of the filing of the action which invalidates
line 31 the payment or exaction to the date of the entry of the judgment
line 32 referenced in paragraph (1).
line 33 (g)
line 34 (h) Approval or conditional approval of a development occurs,
line 35 for the purposes of this section, when the tentative map, tentative
line 36 parcel map, or parcel map is approved or conditionally approved
line 37 or when the parcel map is recorded if a tentative map or tentative
line 38 parcel map is not required.
line 39 (h)
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line 1 (i) The imposition of fees, dedications, reservations, or other
line 2 exactions occurs, for the purposes of this section, when they are
line 3 imposed or levied on a specific development.
line 4 SEC. 6. Section 66022 of the Government Code is repealed.
line 5 66022. (a) Any judicial action or proceeding to attack, review,
line 6 set aside, void, or annul an ordinance, resolution, or motion
line 7 adopting a new fee or service charge, or modifying or amending
line 8 an existing fee or service charge, adopted by a local agency, as
line 9 defined in Section 66000, shall be commenced within 120 days of
line 10 the effective date of the ordinance, resolution, or motion.
line 11 If an ordinance, resolution, or motion provides for an automatic
line 12 adjustment in a fee or service charge, and the automatic adjustment
line 13 results in an increase in the amount of a fee or service charge, any
line 14 action or proceeding to attack, review, set aside, void, or annul the
line 15 increase shall be commenced within 120 days of the effective date
line 16 of the increase.
line 17 (b) Any action by a local agency or interested person under
line 18 this section shall be brought pursuant to Chapter 9 (commencing
line 19 with Section 860) of Title 10 of Part 2 of the Code of Civil
line 20 Procedure.
line 21 (c) This section shall apply only to fees, capacity charges, and
line 22 service charges described in and subject to Sections 66013, 66014,
line 23 and 66016.
line 24 SEC. 7. No reimbursement is required by this act pursuant to
line 25 Section 6 of Article XIIIB of the California Constitution because
line 26 a local agency or school district has the authority to levy service
line 27 charges, fees, or assessments sufficient to pay for the program or
line 28 level of service mandated by this act, within the meaning of Section
line 29 17556 of the Government Code.
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california legislature—2021–22 regular session
ASSEMBLY BILL No. 115
Introduced by Assembly Member Bloom
December 18, 2020
An act to add and repeal Section 65583.7 of the Government Code,
relating to land use.
legislative counsel’s digest
AB 115, as introduced, Bloom. Planning and zoning: commercial
zoning: housing development.
Existing law, the Planning and Zoning Law, requires that the
legislative body of each county and each city adopt a comprehensive,
long-term general plan for the physical development of the county and
city, and specified land outside its boundaries, that includes, among
other mandatory elements, a housing element. Existing law authorizes
the legislative body of any county or city, pursuant to specified
procedures, to adopt ordinances that, among other things, regulate the
use of buildings, structures, and land as between industry, business,
residences, open space, and other purposes.
This bill, notwithstanding any inconsistent provision of a city’s or
county’s general plan, specific plan, zoning ordinance, or regulation,
would require that a housing development be an authorized use on a
site designated in any local agency’s zoning code or maps for
commercial uses if certain conditions apply. Among these conditions,
the bill would require that the housing development be subject to a
recorded deed restriction requiring that at least 20% of the units have
an affordable housing cost or affordable rent for lower income
households, as those terms are defined, and located on a site that satisfies
specified criteria.
99
The bill would require the city or county to apply certain height,
density, and floor area ratio standards to a housing development that
meets these criteria. The bill would deem a housing development
consistent, compliant, and in conformity with local development
standards, zoning codes or maps, and general plan if it meets the
requirements of the bill. The bill would require a jurisdiction to comply
with these requirements only until it has completed the rezoning,
required as described above, for the 6th revision of its housing element.
The bill would repeal these provisions as of January 1, 2031.
The bill would include findings that changes proposed by this bill
address a matter of statewide concern rather than a municipal affair
and, therefore, apply to all cities, including charter cities.
By adding to the duties of local planning officials, the bill would
impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act
for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. Section 65583.7 is added to the Government
line 2 Code, to read:
line 3 65583.7. (a) Notwithstanding any inconsistent provision of a
line 4 city’s or county’s general plan, specific plan, zoning ordinance,
line 5 or regulation, and subject to subdivision (c), a housing development
line 6 shall be an authorized use on a site designated in any local agency’s
line 7 zoning code or maps for commercial uses if all of the following
line 8 apply:
line 9 (1) The housing development is subject to a recorded deed
line 10 restriction requiring that at least 20 percent of the units have an
line 11 affordable housing cost or affordable rent for lower income
line 12 households.
line 13 (2) The site of the housing development satisfies both of the
line 14 following:
line 15 (A) The site of the housing development is not adjacent to any
line 16 site that is an industrial use.
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line 1 (B) At least 75 percent of the perimeter of the site adjoins parcels
line 2 that are developed with urban uses. For purposes of this
line 3 subparagraph, parcels that are only separated by a street or highway
line 4 shall be considered to be adjoined.
line 5 (b) (1) A city or county shall apply the following development
line 6 standards to a housing development that meets the criteria in
line 7 subdivision (a), unless existing applicable zoning standards of the
line 8 city or county are less restrictive:
line 9 (A) The height limit applicable to the housing development
line 10 shall be the greatest of the following:
line 11 (i) The highest allowed height for the site of the housing
line 12 development.
line 13 (ii) The highest allowed height for a commercial or residential
line 14 use within one-half mile of the site of the housing development.
line 15 (iii) Thirty-six feet.
line 16 (B) The maximum allowable floor area ratio of the housing
line 17 development shall be not less than 0.6 times the number of stories
line 18 that complies with the height limit under clause (i) of subdivision
line 19 (A).
line 20 (C) The density limit applicable to the housing development
line 21 shall be the greater of the following:
line 22 (i) The greatest allowed density for a mixed use or residential
line 23 use within one-half mile of the site of the housing development.
line 24 (ii) The applicable density deemed appropriate to accommodate
line 25 housing for lower income households identified in subparagraph
line 26 (B) of paragraph (3) of subdivision (c) of Section 65583.2.
line 27 (2) In addition, the housing development shall comply with any
line 28 applicable design standards of the city or county to the extent that
line 29 those design standards do not prohibit the maximum height limit,
line 30 density, or floor area ratio allowed under this section.
line 31 (3) Notwithstanding any other provision of this section, a
line 32 developer of a housing development allowed in accordance with
line 33 this section may apply for a density bonus pursuant to Section
line 34 65915.
line 35 (4) A housing development shall be deemed consistent,
line 36 compliant, and in conformity with local development standards,
line 37 zoning codes or maps, and the general plan if it meets the
line 38 requirements of this section.
line 39 (c) For purposes of this section:
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AB 115 — 3 —
line 1 (1) “Affordable housing cost” has the same meaning as defined
line 2 in Section 50052.5 of the Health and Safety Code.
line 3 (2) “Affordable rent” has the same meaning as defined in Section
line 4 50053 of the Health and Safety Code.
line 5 (3) “Greatest allowed density” means the maximum allowable
line 6 gross residential density, including any density that requires
line 7 conditional approval, allowable under local zoning, including the
line 8 zoning ordinances and any specific plan adopted by the applicable
line 9 city or county that apply to the site of the housing development.
line 10 (4) “Highest allowable height” means the tallest height,
line 11 including any height that requires conditional approval, allowable
line 12 under local zoning, including the zoning ordinances and any
line 13 specific plan adopted by the applicable city or county that apply
line 14 to the site of the housing development.
line 15 (5) “Industrial use” includes, but is not limited to, utilities,
line 16 manufacturing, wholesale trade, transportation, and warehousing.
line 17 (6) “Lower income households” has the same meaning as
line 18 defined in Section 50079.5 of the Health and Safety Code.
line 19 (d) A jurisdiction shall only be subject to this section until it
line 20 has completed the rezoning required by Section 65583 for the 6th
line 21 revision of its housing element pursuant to this article.
line 22 (e) The Legislature finds and declares that ensuring the adequate
line 23 production of affordable housing is a matter of statewide concern
line 24 and is not a municipal affair as that term is used in Section 5 of
line 25 Article XI of the California Constitution. Therefore, this section
line 26 applies to all cities, including charter cities.
line 27 (f) This section shall remain in effect only until January 1, 2031,
line 28 and as of that date is repealed.
line 29 SEC. 2. No reimbursement is required by this act pursuant to
line 30 Section 6 of Article XIIIB of the California Constitution because
line 31 a local agency or school district has the authority to levy service
line 32 charges, fees, or assessments sufficient to pay for the program or
line 33 level of service mandated by this act, within the meaning of Section
line 34 17556 of the Government Code.
O
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AMENDED IN ASSEMBLY MARCH 8, 2021
california legislature—2021–22 regular session
ASSEMBLY BILL No. 377
Introduced by Assembly Member Robert Rivas
(Principal coauthor: Senator Hertzberg)
(Coauthor: Assembly Member Lee)
February 1, 2021
An act to add Chapter Article 3.5 (commencing with Section 13150)
to Chapter 3 of Division 7 of the Water Code, relating to water quality.
legislative counsel’s digest
AB 377, as amended, Robert Rivas. Water quality: impaired waters.
(1) Under existing law, the State Water Resources Control Board
and the 9 California regional water quality control boards regulate water
quality and prescribe waste discharge requirements in accordance with
the federal national pollutant discharge elimination system (NPDES)
permit program established by the federal Clean Water Act and the
Porter-Cologne Water Quality Control Act. Existing law requires each
regional board to formulate and adopt water quality control plans for
all areas within the region, as provided.
This bill would require all California surface waters to be fishable,
swimmable, and drinkable by January 1, 2050, as prescribed. The bill
would prohibit the state board and regional boards from authorizing an
NPDES discharge, or a waste discharge requirement, requirement or
waiver of a waste discharge requirement for a discharge, to surface
water that causes or contributes to an exceedance of a an applicable
water quality standard, standard in receiving waters, or from authorizing
a best management practice permit term to authorize a discharge to
surface water that causes or contributes to an exceedance of a an
98
applicable water quality standard in receiving waters. The bill would
prohibit, on or after January 1, 2030, a regional water quality control
plan from including a schedule for implementation for achieving a water
quality standard that was adopted as of January 1, 2021, and would
prohibit a regional water quality control plan from including a schedule
for implementation of a water quality standard that is adopted after
January 1, 2021, unless specified conditions are met. The bill would
prohibit an NPDES permit, waste discharge requirement, or waiver of
a waste discharge requirement from being renewed, reissued, or
modified to contain effluent limitations or conditions that are less
stringent than those in the previous permit, requirement, or waiver.
waiver, except as specified.
(2) Existing law authorizes the imposition of civil penalties for
violations of certain waste discharge requirements and requires that
penalties imposed pursuant to these provisions be deposited into the
Waste Discharge Permit Fund, to be expended by the state board, upon
appropriation by the Legislature, for specified purposes related to water
quality. For violations of certain other waste discharge requirements,
including the violation of a waste discharge requirement effluent
limitation, existing law imposes specified civil penalties, the proceeds
of which are deposited into the continuously appropriated State Water
Pollution Cleanup and Abatement Account, which is established in the
State Water Quality Control Fund.
This bill would require, by January 1, 2030, the state board and
regional boards to develop an Impaired Waterways Enforcement
Program to enforce all remaining water quality standard violations that
are causing or contributing to an exceedance of a water quality standard.
To ensure any water segments impaired by ongoing pollutants are
brought into attainment with water quality standards, the bill would
require the state board and regional boards, by January 1, 2040, to
evaluate the state’s remaining impaired waters using a specified report.
The bill would require, by January 1, 2040, the state board and regional
boards to report to the Legislature a plan to bring the final impaired
water segments into attainment by January 1, 2050. The bill would
create the Waterway Attainment Account in the Waste Discharge Permit
Fund and would make moneys in the Waterway Attainment Account
available for the state board to expend, upon appropriation by the
Legislature, to bring remaining impaired water segments into attainment
in accordance with the plan. The bill would create in the Waterway
Attainment Account the Waterway Attainment Penalty Subaccount,
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composed of penalties obtained pursuant to the Impaired Waterways
Enforcement Program, and would make moneys in the subaccount
available for the state board to expend, upon appropriation by the
Legislature, for purposes of the program. The bill would require, by
January 1, 2040, and subject to a future legislative act, 50% of the annual
proceeds of the State Water Pollution Cleanup and Abatement Account
to be annually transferred to the Waterway Attainment Account. The
bill would require the state board, upon appropriation by the Legislature,
to expend 5% of the annual proceeds of the State Water Pollution
Cleanup and Abatement Account to fund a specified state board
program.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California do enact as follows:
line 1 SECTION 1. (a) The Legislature finds and declares all of the
line 2 following:
line 3 (1) Water is a necessity of human life, and every Californian
line 4 deserves access to clean and safe water. Yet climate change
line 5 jeopardizes the quality and safety of our water. Climate change is
line 6 impacting the state’s hydrology to create water resource
line 7 vulnerabilities that include, but are not limited to, changes to water
line 8 supplies, subsidence, increased amounts of water pollution, erosion,
line 9 flooding, and related risks to water and wastewater infrastructure
line 10 and operations, degradation of watersheds, alteration of aquatic
line 11 ecosystems and loss of habitat, multiple impacts in coastal areas,
line 12 and ocean acidification.
line 13 (2) Many aspects of climate change and associated impacts will
line 14 continue for centuries, even if anthropogenic emissions of
line 15 greenhouse gases are reduced or stopped. Given the magnitude of
line 16 climate change impacts on California’s hydrology and water
line 17 systems, the state’s climate change response should include
line 18 attainment of water quality standards to allow the state’s
line 19 watersheds to resiliently adapt to forthcoming and inevitable
line 20 climate change stressors.
line 21 (3) The federal Clean Water Act (33 U.S.C. Sec. 1251 et seq.)
line 22 was enacted on October 18, 1972, to establish the basic structure
line 23 for regulating discharges of pollutants into the waters of the United
line 24 States and regulating quality standards for surface waters. The
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AB 377 — 3 —
line 1 objective of the federal Clean Water Act is to restore and maintain
line 2 the chemical, physical, and biological integrity of the nation’s
line 3 waters. To achieve that objective, Congress declared a national
line 4 goal that the discharge of pollutants into navigable waters be
line 5 eliminated by 1985.
line 6 (4) California has long been a national and international leader
line 7 on environmental stewardship efforts, including the areas of air
line 8 quality protections, energy efficiency requirements, renewable
line 9 energy standards, and greenhouse gas emission standards for
line 10 passenger vehicles. The program established by this act will
line 11 continue this tradition of environmental leadership by placing
line 12 California at the forefront of achieving the nation’s goal of making
line 13 all waterways swimmable, fishable, and drinkable.
line 14 (5) The State Water Resources Control Board, along with the
line 15 nine California regional water quality control boards, protect and
line 16 enhance the quality of California’s water resources through
line 17 implementing the federal Clean Water Act, as amended, and
line 18 California’s Porter-Cologne Water Quality Control Act (Division
line 19 7 (commencing with Section 13000) of the Water Code).
line 20 (6) The State Water Resources Control Board’s mission is to
line 21 “preserve, enhance, and restore the quality of California’s water
line 22 resources and drinking water for the protection of the environment,
line 23 public health, and all beneficial uses, and to ensure proper water
line 24 resource allocation and efficient use, for the benefit of present and
line 25 future generations.”
line 26 (7) Under Section 303(d) of the federal Clean Water Act (33
line 27 U.S.C. Sec. 1313(d)), California is required to review, make
line 28 changes as necessary, and submit to the United States
line 29 Environmental Protection Agency a list identifying water bodies
line 30 not meeting water quality standards (303(d) list). California is
line 31 required to include a priority ranking of those waters, taking into
line 32 account the severity of the pollution and the uses to be made of
line 33 those waters, including waters targeted for the development of
line 34 total maximum daily loads (TMDLs).
line 35 (8) As of the most recent 2018 303(d) list, nearly 95 percent of
line 36 all fresh waters assessed in California, and over 1,400 water bodies,
line 37 are listed as impaired, with only 114 TMDLs have having been
line 38 approved since 2009 in California. Of 164,741 assessed miles of
line 39 rivers and streams, 82 percent were impaired. Of 929,318 assessed
line 40 acres of lakes, reservoirs, and ponds, 93 percent were impaired.
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— 4 — AB 377
line 1 Of 575,000 assessed acres of bays, harbors, and estuaries, 99
line 2 percent were impaired. Of 2,180 assessed miles of coastal
line 3 shoreline, 93 percent were impaired. Of 130,084 assessed acres
line 4 of wetlands, 99 percent were impaired.
line 5 (b) (1) In honor of the federal Clean Water Act’s 50-year
line 6 anniversary, it is the intent of the Legislature in enacting this act
line 7 to recommit California to achieve the national goal to restore and
line 8 maintain the chemical, physical, and biological integrity of the
line 9 state’s waters by eliminating the discharge of pollutants into
line 10 impaired waterways.
line 11 (2) It is further the intent of the Legislature in enacting this act
line 12 to require that the State Water Resources Control Board and the
line 13 California regional water quality control boards meet the national
line 14 goal of achieving swimmable, fishable, and drinkable waters by
line 15 no later than January 1, 2050.
line 16 SEC. 2. Chapter 3.5 (commencing with Section 13150) is added
line 17 to Chapter 3 of Division 7 of the Water Code, to read:
line 18
line 19 Chapter 3.5. State Waters Impairment
line 20
line 21 SEC. 2. Article 3.5 (commencing with Section 13150) is added
line 22 to Chapter 3 of Division 7 of the Water Code, to read:
line 23
line 24 Article 3.5. State Waters Impairment
line 25
line 26 13150. All California surface waters shall be fishable,
line 27 swimmable, and drinkable by January 1, 2050. To bring all water
line 28 segments into attainment with this requirement, the state board
line 29 and regional boards shall comply with the requirements of this
line 30 chapter. article.
line 31 13151. (a) (1) The state board and regional boards shall not
line 32 do either of the following:
line 33 (1)
line 34 (A) Authorize an NPDES discharge to a surface water of the
line 35 United States that causes or contributes to an exceedance of a an
line 36 applicable water quality standard. standard in receiving waters.
line 37 (2)
line 38 (B) Authorize an NPDES permit that uses an alternative
line 39 compliance determination, safe harbor “deemed in compliance”
line 40 term, or any other best management practice permit term to
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AB 377 — 5 —
line 1 authorize a discharge to a surface water of the United States that
line 2 causes or contributes to an exceedance of a an applicable water
line 3 quality standard in receiving waters.
line 4 (2) (A) Paragraph (1) does not prohibit enhanced watershed
line 5 management programs or watershed management programs from
line 6 being used as a planning tool for achieving compliance with
line 7 applicable water quality standards in receiving waters.
line 8 (B) Paragraph (1) does not prevent NPDES permittees from
line 9 using best management practices to meet applicable water quality
line 10 standards in receiving waters.
line 11 (C) Paragraph (1) does not apply to salt and nutrient
line 12 management plans approved as of January 1, 2021, that include
line 13 alternative compliance options.
line 14 (b) The state board and regional boards shall not do either of
line 15 the following:
line 16 (1) Authorize a permit that does not include monitoring
line 17 sufficient to demonstrate compliance with water quality standards
line 18 and, unless infeasible, that does not include end-of-discharge pipe
line 19 monitoring.
line 20 (2) Authorize a permit unless it establishes criteria for, and
line 21 requires, monitoring to evaluate compliance with water quality
line 22 standards.
line 23 (c) (1) The state board and regional boards shall not do either
line 24 of the following:
line 25 (1)
line 26 (A) Authorize a waste discharge requirement or waiver of a
line 27 waste discharge requirement for a discharge to a surface water of
line 28 the state that causes or contributes to an exceedance of a an
line 29 applicable water quality standard. standard in receiving waters.
line 30 (2)
line 31 (B) Authorize a waste discharge requirement or waiver of a
line 32 waste discharge requirement that uses an alternative compliance
line 33 determination, safe harbor “deemed in compliance” term, or any
line 34 other best management practice permit term to authorize a
line 35 discharge to a surface water of the state that causes or contributes
line 36 to an exceedance of a an applicable water quality standard in
line 37 receiving waters.
line 38 (d) The state board and regional boards shall not issue an
line 39 enforcement order pursuant to Chapter 12 (commencing with
line 40 Section 1825) of Part 2 of Division 2 or Article 1 (commencing
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— 6 — AB 377
line 1 with Section 13300) of Chapter 5 that includes a compliance
line 2 schedule deadline that extends beyond January 1, 2030, to a
line 3 discharger for a discharge that is causing or contributing to an
line 4 exceedance of a water quality standard.
line 5 (2) (A) Paragraph (1) does not prevent a waste discharge
line 6 requirement or waiver of a waste discharge requirement from
line 7 using best management practices to meet applicable water quality
line 8 standards in receiving waters.
line 9 (B) Paragraph (1) does not apply to salt and nutrient
line 10 management plans approved as of January 1, 2021, that include
line 11 alternative compliance options.
line 12 13152. (a) (1) Notwithstanding Section 13242, on and after
line 13 January 1, 2030, a regional water quality control plan, including
line 14 the program of implementation, shall not include a schedule for
line 15 implementation for achieving a water quality standard that was
line 16 adopted in an approved regional water quality control plan as of
line 17 January 1, 2021. It is the intent of the Legislature in enacting this
line 18 requirement to ensure that all water quality standards in effect as
line 19 of January 1, 2021, are fully implemented and achieved by January
line 20 1, 2030.
line 21 (2) Paragraph (1) does not apply to salt and nutrient
line 22 management plans approved as of January 1, 2021, that include
line 23 a time schedule for compliance.
line 24 (b) The state board and regional boards shall only include in a
line 25 regional water quality control plan a schedule for implementation
line 26 of a water quality standard that is adopted after January 1, 2021,
line 27 if all of the following conditions are met:
line 28 (1) The schedule for implementation of the water quality
line 29 standard is the shortest time necessary, and in no instance exceeds
line 30 five years.
line 31 (2) The schedule for implementation is necessary for the
line 32 permittee to undertake physical construction that is necessary to
line 33 achieve compliance with the water quality standard.
line 34 (3) The water quality standard is not substantially similar to a
line 35 water quality standard that was in effect as of January 1, 2021.
line 36 (c) (1) An NPDES permit, waste discharge requirement, or
line 37 waiver of a waste discharge requirement shall not be renewed,
line 38 reissued, or modified to contain effluent limitations or conditions
line 39 that are less stringent than the comparable effluent limitations or
line 40 conditions in the previous permit, requirement, or waiver. waiver,
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AB 377 — 7 —
line 1 including, but not limited to, if the implementation of the less
line 2 stringent effluent limitation or condition would result in a violation
line 3 of an applicable water quality standard in receiving waters.
line 4 (2) Notwithstanding paragraph (1), an NPDES permit, waste
line 5 discharge requirement, or waiver of a waste discharge requirement
line 6 may be renewed, reissued, or modified to contain a less stringent
line 7 effluent limitation or condition applicable to a pollutant if any of
line 8 the following apply:
line 9 (A) Material and substantial alterations or additions to the
line 10 permitted facility occurred after permit issuance that justify the
line 11 application of the less stringent effluent limitation or condition.
line 12 (B) Information, other than revised regulations, guidance, or
line 13 test methods, is available that was not available at the time of
line 14 permit issuance that would have justified the application of the
line 15 less stringent effluent limitation or condition at the time of permit
line 16 issuance.
line 17 (C) The permit issuer determines that technical mistakes or
line 18 mistaken interpretations of law were made in issuing the permit
line 19 in accordance with Section 402(a)(1)(B) of the federal Clean Water
line 20 Act (33 U.S.C. Sec. 1342(a)(1)(B)).
line 21 (D) The less stringent effluent limitation or condition is
line 22 necessary because of events over which the permittee has no
line 23 control and for which there is no reasonably available remedy.
line 24 (E) The permittee has received a permit modification pursuant
line 25 to Section 301(c), 301(g), 301(h), 301(i), 301(k), 301(n), or 316(a)
line 26 of the federal Clean Water Act (33 U.S.C. Secs. 1311(c), 1311(g),
line 27 1311(h), 1311(i), 1311(k), 1311(n), and 1326(a)).
line 28 (F) The permittee has installed the treatment facilities required
line 29 to meet the effluent limitations or conditions in the previous permit
line 30 and has properly operated and maintained the facilities but has
line 31 nevertheless been unable to achieve the previous effluent
line 32 limitations or conditions, in which case the limitations or
line 33 conditions in the renewed, reissued, or modified permit may reflect
line 34 the level of pollutant control actually achieved, but shall not be
line 35 less stringent than required by effluent limitation guidelines
line 36 promulgated under Section 304(b) of the federal Clean Water Act
line 37 (33 U.S.C. Sec. 1314(b)) in effect at the time of permit renewal,
line 38 reissuance, or modification.
line 39 (3) Subparagraphs (B) and (C) of paragraph (2) do not apply
line 40 to a revised waste load allocation or an alternative grounds for
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line 1 translating water quality standards into effluent limitations or
line 2 conditions unless both of the following are satisfied:
line 3 (A) The cumulative effect of the revised allocation or alternative
line 4 grounds results in a decrease in the amount of pollutants
line 5 discharged into receiving waters.
line 6 (B) The revised allocation or alternative grounds is not the
line 7 result of a discharger eliminating or substantially reducing its
line 8 discharge of pollutants due to complying with the requirements of
line 9 the federal Clean Water Act (33 U.S.C. Sec. 1251 et seq.) or for
line 10 reasons otherwise unrelated to water quality.
line 11 (d) The state board and regional boards shall not authorize an
line 12 NPDES permit, waste discharge requirement, or waiver of a waste
line 13 discharge requirement that does not include a complete
line 14 antidegradation analysis as set out in State Water Resources
line 15 Control Board Resolution No. 68-16 and Administrative Procedures
line 16 Update 90-004.
line 17 13153. (a) (1) By January 1, 2030, the state board and regional
line 18 boards shall develop an Impaired Waterways Enforcement Program
line 19 to enforce all remaining water quality standard violations pursuant
line 20 to Chapter 12 (commencing with Section 1825) of Part 2 of
line 21 Division 2 and Article 1 (commencing with Section 13300) of
line 22 Chapter 5 that are causing or contributing to an exceedance of a
line 23 water quality standard.
line 24 (2) An enforcement action taken pursuant to the program shall
line 25 result in sufficient penalties, conditions, and orders to ensure the
line 26 person subject to the enforcement action is no longer causing or
line 27 contributing to an exceedance of a water quality standard.
line 28 (3) A discharger shall remain liable for a violation of a water
line 29 quality standard until sampling at the point of discharge
line 30 demonstrates that the discharge is no longer causing or contributing
line 31 to the exceedance.
line 32 (4) Penalties obtained pursuant to the program shall be deposited
line 33 into the Waterway Attainment Penalty Subaccount, which is hereby
line 34 created in the Waterway Attainment Account. Moneys in the
line 35 subaccount shall be available for the state board to expend, upon
line 36 appropriation by the Legislature, for purposes of the program.
line 37 (5) The state board and regional boards may issue an
line 38 enforcement order pursuant to Chapter 12 (commencing with
line 39 Section 1825) of Part 2 of Division 2 or Article 1 (commencing
line 40 with Section 13300) of Chapter 5 that includes a compliance
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AB 377 — 9 —
line 1 schedule deadline that extends beyond January 1, 2030, to a
line 2 discharger for a discharge that is causing or contributing to an
line 3 exceedance of a water quality standard.
line 4 (b) (1) By January 1, 2040, to ensure any water segments
line 5 impaired by ongoing legacy pollutants and nonpoint source
line 6 pollution are brought into attainment with water quality standards,
line 7 the state board and regional boards shall evaluate the state’s
line 8 remaining impaired waters using the most current integrated report.
line 9 (2) The state board and regional boards shall, by January 1,
line 10 2040, report to the Legislature in compliance with Section 9795
line 11 of the Government Code a plan to bring the final impaired water
line 12 segments into attainment by January 1, 2050.
line 13 (3) The requirement for submitting a report imposed under
line 14 paragraph (2) is inoperative on January 1, 2044, pursuant to Section
line 15 10231.5 of the Government Code.
line 16 (c) (1) The Waterway Attainment Account is hereby created
line 17 in the Waste Discharge Permit Fund. Moneys in the Waterway
line 18 Attainment Account shall be available for the state board to expend,
line 19 upon appropriation by the Legislature, to bring remaining impaired
line 20 water segments into attainment in accordance with the plan
line 21 submitted pursuant to paragraph (2) of subdivision (b), subject to
line 22 subdivision (d).
line 23 (2) (A) By January 1, 2040, subject to a future legislative act,
line 24 50 percent of the annual proceeds of the State Water Pollution
line 25 Cleanup and Abatement Account shall be annually transferred to
line 26 the Waterway Attainment Account.
line 27 (B) This paragraph shall become inoperative January 1, 2051,
line 28 or when all water segments are in attainment with water quality
line 29 standards, whichever comes first.
line 30 (d) Moneys in the Waterway Attainment Account shall be
line 31 expended by the state board, upon appropriation by the Legislature,
line 32 to bring impaired waterways into attainment with water quality
line 33 standards to the maximum extent possible. Moneys expended from
line 34 the account shall address or prevent water quality impairments
line 35 or address total maximum daily loads under the federal Clean
line 36 Water Act (33 U.S.C. Sec. 1251 et seq.). Moneys in the account
line 37 shall only be expended on the following:
line 38 (1) Restoration projects, including supplemental environmental
line 39 projects, that improve water quality.
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line 1 (2) Best management practice research innovation and incentives
line 2 to encourage innovative best management practice implementation.
line 3 (3) Source control programs.
line 4 (4) Identifying nonfilers.
line 5 (5) Source identification of unknown sources of impairment.
line 6 (6) Enforcement actions that recover at least the amount of
line 7 funding originally expended, which shall be deposited into the
line 8 Waterway Attainment Account.
line 9 (7) Competitive grants to fund projects and programs for
line 10 municipal separate storm sewer system permit compliance
line 11 requirements that would prevent or remediate pollutants, including
line 12 zinc, caused by tires in the state. Priority shall be given to
line 13 applicants that discharge to receiving waters with zinc levels that
line 14 exceed the established total maximum daily loads and to projects
line 15 that provide multiple benefits.
line 16 (e) The state board shall, upon appropriation by the Legislature,
line 17 expend 5 percent of the annual proceeds of the State Water
line 18 Pollution Cleanup and Abatement Account to fund the state board’s
line 19 SWAMP - Clean Water Team Citizen Monitoring Program in
line 20 order to inform the integrated report.
line 21 13154. This chapter does not affect the process by which
line 22 voluntary agreements are entered into to assist in the
line 23 implementation of new water quality standards lawfully adopted
line 24 by the state board.
line 25 13155.
line 26 13154. For purposes of this chapter, article, the following
line 27 definitions apply:
line 28 (a) “Best management practice” means a practice or set of
line 29 practices determined by the state board or a regional board for a
line 30 designated area to be the most effective feasible means of
line 31 preventing or reducing the generation of a specific type of nonpoint
line 32 source pollution, given technological, institutional, environmental,
line 33 and economic constraints.
line 34 (b) “Drinkable” applies to waters subject to a regional water
line 35 quality control plan and means that the waters are drinkable to the
line 36 extent required by the regional water quality control plan.
line 37 (c) “Integrated report” means the state report that includes the
line 38 list of impaired waters required pursuant to Section 303(d) of the
line 39 federal Clean Water Act (33 U.S.C. Sec. 1313(d)) and the water
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AB 377 — 11 —
line 1 quality assessment required pursuant to Section 305(b) of the
line 2 federal Clean Water Act (33 U.S.C. Sec. 1315(b)).
line 3 (d) “NPDES” means the national pollutant discharge elimination
line 4 system established in the federal Clean Water Act (33 U.S.C.A.
line 5 U.S.C. Sec. 1251 et seq.).
line 6 (e) “Regional board” means a California regional water quality
line 7 control board.
line 8 (f) “Regional water quality control plan” means a water quality
line 9 control plan developed pursuant to Section 13240.
line 10 (g) “State board” means the State Water Resources Control
line 11 Board.
line 12 (h) “State Water Pollution Cleanup and Abatement Account”
line 13 means the State Water Pollution Cleanup and Abatement Account
line 14 created pursuant to Section 13440.
line 15 (i) “Supplemental environmental project” means an
line 16 environmentally beneficial project that a person subject to an
line 17 enforcement action voluntarily agrees to undertake in settlement
line 18 of the action and to offset a portion of a civil penalty.
line 19 (j) “Waste Discharge Permit Fund” means the Waste Discharge
line 20 Permit Fund created pursuant to Section 13260.
line 21 (k) “Waterway Attainment Account” means the Waterway
line 22 Attainment Account created pursuant to paragraph (1) of
line 23 subdivision (c) of Section 13153.
line 24 (l) “Waterway Attainment Penalty Subaccount” means the
line 25 Waterway Attainment Penalty Subaccount created pursuant to
line 26 paragraph (4) of subdivision (a) of Section 13153.
O
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california legislature—2021–22 regular session
ASSEMBLY BILL No. 988
Introduced by Assembly Members Bauer-Kahan, Berman, Chiu,
Quirk-Silva, and Ting
(Coauthors: Assembly Members Aguiar-Curry, Burke,
Cristina Garcia, McCarty, Mullin, Luz Rivas, Rodriguez,
Santiago, Stone, Villapudua, and Wicks)
(Coauthors: Senators Archuleta, Eggman, Glazer, Leyva, and Wiener)
February 18, 2021
An act to add Article 6.1 (commencing with Section 53123) to Part
1 of Division 2 of Title 5 of the Government Code, to add Section 324.9
to the Public Utilities Code, to amend Sections 41007.2, 41007.3, 41013,
41020, 41021, 41022, 41023, 41024, 41026, 41028, 41030, 41031,
41032, 41050, 41098, 41100, 41128, 41135, 41136, and 41150 of, to
amend the heading of Article 1 (commencing with Section 41020) and
the heading of Article 2 (commencing with Section 41030) of Chapter
2 of Part 20 of Division 2 of, and to amend the heading of Chapter 2
(commencing with Section 41020) of Part 20 of Division 2 of, the
Revenue and Taxation Code, relating to emergency services, making
an appropriation therefor, and declaring the urgency thereof, to take
effect immediately.
legislative counsel’s digest
AB 988, as introduced, Bauer-Kahan. Mental health: mobile crisis
support teams: 988 crisis hotline.
Existing law, the Warren-911-Emergency Assistance Act, requires
every local public agency, as defined, to have an emergency
communication system and requires the digits “911” to be the primary
emergency telephone number within the system.
99
Existing law, specifies provisions governing the operation and
financing of community mental health services for the mentally
disordered in every county through locally administered and locally
controlled community mental health programs. Existing law specifies
that county mental health services should be organized to provide
immediate response to individuals in precrisis and crisis and to members
of the individual’s support system, on a 24-hour, 7-day-a-week basis
and authorizes provision of crisis services offsite, as mobile services.
Existing federal law, the National Suicide Hotline Designation Act,
designates the 3-digit telephone number “988” as the universal number
within the United States for the purpose of the national suicide
prevention and mental health crisis hotline system operating through
the National Suicide Prevention Lifeline maintained by the Assistant
Secretary for Mental Health and Substance Abuse and the Veterans
Crisis Line maintained by the Secretary of Veterans Affairs.
This bill would establish the 988 Crisis Hotline Center, using the
digits “988” in compliance with existing federal law and standards
governing the National Suicide Prevention Lifeline. The bill would
require the Office of Emergency Services to take specified actions to
implement the hotline system, including hiring a director with specified
experience and designating a 988 crisis hotline center or centers to
provide crisis intervention services and crisis care coordination to
individuals accessing the 988.
This bill would require the office to designate at least one center prior
to July 16, 2022, and would require crisis hotline centers to meet
specified requirements. The bill would require the office to adopt
emergency regulations implementing these provisions by July 16, 2022.
Beginning January 1, 2023, and not later than January 1, 2024, the bill
would require crisis hotline centers, counties, and other relevant entities
to become fully compliant with the regulations.
This bill would require that all elements of the 988 system be designed
to meet the unique needs of California’s diverse communities, as
provided. The bill would require counties to provide and make crisis
services, including mobile crisis teams and crisis receiving and
stabilization services, available to 988 callers and would require counties
to coordinate with 988 crisis hotline centers on the deployment of, and
access to, these services.
This bill would specify reporting requirements, including a
requirement, beginning January 1, 2025, and annually thereafter, for
the office to prepare a report containing specified information, and
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— 2 — AB 988
deliver it to the Legislature, the Substance Abuse and Mental Health
Services Administration, and the Federal Communications Commission.
Crisis hotline centers would be required to provide data, and reports,
and participate in evaluations and related quality improvement activities
as required by the office.
Existing law, the Emergency Telephone Users Surcharges Act,
generally imposes a surcharge on each access line for each month or
part thereof for which a service user subscribes with a service supplier,
at an amount no greater than $0.80, based on the Office of Emergency
Services’ estimate of the number of access lines to which the surcharge
will be applied per month for a calendar year period, that it estimates,
pursuant to a specified formula, will produce sufficient revenue to fund
the current fiscal year’s 911 costs.
Existing law imposes a surcharge on the purchase of prepaid mobile
telephony services at the time of each retail transaction in this state, at
the rate equal to the monthly surcharge amount per access line, to be
paid by prepaid consumers and collected by sellers, as defined. Existing
law requires the surcharge to be remitted to, and administered by, the
California Department of Tax and Fee Administration, in accordance
with specified provisions. Existing law makes certain violations of the
Emergency Telephone Users Surcharge Act a crime.
Existing law requires amounts to be paid to the state pursuant to the
Emergency Telephone Users Surcharge Act to be deposited into the
State Emergency Telephone Number Account and that the amounts
deposited, upon appropriation by the Legislature, be spent solely for
specified purposes, including payment for the installation of, and
ongoing expenses for, a basic system.
This bill would create a separate surcharge, beginning January 1,
2022, on each access line for each month or part thereof for which a
service user subscribes with a service supplier, based on the Office of
Emergency Services’ estimate of 988 costs which would be calculated
in the same fashion as the office’s estimate of 911 charges. This bill
would make applicable relevant provisions of the Emergency Telephone
Users Surcharge Act to the 988 surcharge, as provided. The bill would
provide for specified costs to be paid by the fees prior to distribution
to the Office of Emergency Services. The bill would make conforming
changes in regard to the 988 surcharge.
This bill would create the 988 State Mental Health and Crisis Services
Special Fund, a new continuously appropriated fund, and would require
the fees to be deposited along with other specified moneys into the 988
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AB 988 — 3 —
Fund. The bill would provide that the funds be used for specified
purposes, including funding county 988 crisis hotline centers. By
creating a new continuously appropriated fund and establishing a fee
as a new source of revenue for the continuously appropriated fund, the
bill would make an appropriation.
Existing law requires the Public Utilities Commission to publish
specified information on its internet website, including contract and
audit information.
This bill would require the Public Utilities Commission to publish
specified information on its internet website relevant to these provisions.
By imposing new requirements on counties and by expanding the
scope of crimes imposed by the Emergency Telephone Users Surcharge
Act, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that with regard to certain mandates no
reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the
Commission on State Mandates determines that the bill contains costs
so mandated by the state, reimbursement for those costs shall be made
pursuant to the statutory provisions noted above.
This bill would declare that it is to take effect immediately as an
urgency statute.
Vote: 2⁄3. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
line 1 SECTION 1. The Legislature finds and declares all of the
line 2 following:
line 3 (a) The nation is facing a mental health crisis.
line 4 (1) Between 2017 and 2018, the number of adults in the United
line 5 States experiencing mental illness increased by 1.5 million people,
line 6 meaning nearly one in five adults is living with a mental illness.
line 7 (2) The national suicide rate increased by 30 percent over the
line 8 last two decades. In 2018, there were an estimated 1.4 million
line 9 suicide attempts and more than 48,000 deaths by suicide, making
line 10 it the 10th leading cause of death among adults and the second
line 11 leading cause of death among young people.
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line 1 (3) During the COVID-19 pandemic, this crisis has only
line 2 continued to worsen with increasing rates of anxiety, depression,
line 3 self-harm, and suicidal ideation.
line 4 (4) As this crisis worsens, one in six Californians continue to
line 5 experience mental illness, and only one-third report receiving any
line 6 treatment.
line 7 (b) Over the last 50 years, well-intentioned but piecemeal
line 8 approaches have resulted in an inadequate continuum of services,
line 9 leaving many without the help they need. Too often those
line 10 experiencing a mental health crisis do not receive the services they
line 11 need and instead are met with a punitive response that fails to treat
line 12 their illness and often results in harmful and unnecessary
line 13 incarceration.
line 14 (1) For those unable to access care, the criminal justice system
line 15 has become the default mental health system in California when,
line 16 in times of crisis, individuals and their families feel they have no
line 17 option but to call the police for help. While law enforcement is
line 18 often the most-relied upon institution during a mental health crisis,
line 19 providing mental health services or care is not and should not be
line 20 their role.
line 21 (2) One-third of homeless individuals in the United States have
line 22 a serious mental illness; these individuals are more likely to be
line 23 arrested with a lifetime risk of arrest ranging from 63 percent to
line 24 90 percent. People in jail are 8 to 11 times more likely to have
line 25 experienced recent homelessness.
line 26 (A) Currently, 10 percent of all law enforcement agencies’
line 27 budgets and 20 percent of staff time, are spent responding to
line 28 individuals with mental illness.
line 29 (B) As a direct consequence of this overreliance on law
line 30 enforcement responses to a public health crisis, approximately 25
line 31 percent of all fatal police-involved shootings since 2015 involved
line 32 a mental illness, with Black men dying disproportionately.
line 33 (c) With nonexistent or inadequate crisis care, costs escalate
line 34 due to restrictive, longer-term hospital stays, hospital readmission,
line 35 overuse of law enforcement and human tragedies that result from
line 36 a lack of access to care. Comprehensive crisis systems prevent
line 37 these tragedies, save municipalities money and resources, and
line 38 increase access to comprehensive care.
line 39 (1) One crisis continuum program in Eugene, Oregon,
line 40 CAHOOTS, is estimated to save the city an estimated $8,500,000
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AB 988 — 5 —
line 1 in public safety spending annually. In 2019, Eugene’s CAHOOTS
line 2 team answered 17 percent of the police department’s overall call
line 3 volume. Out of 24,000 calls, police backup was requested only
line 4 150 times.
line 5 (2) Another crisis continuum program model implemented in
line 6 Phoenix, Arizona, Crisis Now, is estimated to have reduced
line 7 inpatient spending by $260,000,000, preventing $37,000,000 in
line 8 costs to hospital emergency departments in 2016. Phoenix saved
line 9 the equivalent of 37 full-time police officers and further reduced
line 10 city fire department costs.
line 11 (3) According to the Substance Abuse and Mental Health
line 12 Services Administration National Guidelines for Behavioral Health
line 13 Crisis Care, the core elements of a comprehensive crisis system
line 14 include all of the following:
line 15 (A) Regional or statewide crisis hotline centers coordinating in
line 16 real time.
line 17 (B) Centrally deployed, 24-hour, seven day per week mobile
line 18 crisis support teams.
line 19 (C) 23-hour crisis receiving and stabilization programs.
line 20 (D) Essential crisis care principles and practices.
line 21 (d) In 2020, the federal government enacted the National Suicide
line 22 Hotline Designation Act, establishing the “988” suicide prevention
line 23 and mental health crisis hotline, which must be fully implemented
line 24 nationally by July, 16, 2022.
line 25 (1) A “988” crisis line will do all of the following:
line 26 (A) Connect a person in a mental health crisis to a trained
line 27 counselor to address their immediate needs.
line 28 (B) Deploy mobile crisis support teams, as an alternative to law
line 29 enforcement response, to provide crisis intervention services when
line 30 necessary.
line 31 (C) Ensure individuals are referred to ongoing mental health
line 32 care when necessary.
line 33 (2) Switching to an easy-to-remember “988” for suicide
line 34 prevention and mental health crisis services will connect more
line 35 people with the appropriate and lifesaving care they need, just as
line 36 “911” does for other types of emergencies.
line 37 (e) It is the intent of the Legislature to implement the National
line 38 Suicide Hotline Designation Act of 2020, in compliance with the
line 39 Federal Communication Commission’s rules adopted by July 16,
line 40 2022 designating “988” as a three-digit number for the National
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— 6 — AB 988
line 1 Suicide Prevention Hotline to assure all persons residing in and
line 2 visiting the State of California have access to the “988” suicide
line 3 prevention and behavioral health crisis hotline and care 24 hours
line 4 a day, seven days a week.
line 5 SEC. 2. Article 6.1 (commencing with Section 53123) is added
line 6 to Chapter 1 of Part 1 of Division 2 of Title 5 of the Government
line 7 Code, to read:
line 8
line 9 Article 6.1. Miles Hall Lifeline Act
line 10
line 11 53123. This article is known and may be cited as the “Miles
line 12 Hall Lifeline Act”.
line 13 53123.1. (a) “988” means the three-digit phone number
line 14 designated by the Federal Communications Commission for the
line 15 purpose of connecting individuals experiencing a mental health
line 16 crisis with suicide prevention and mental health crisis counselors,
line 17 mobile crisis support teams, and crisis receiving and stabilization
line 18 services and other mental health crisis services through the National
line 19 Suicide Prevention Lifeline Network.
line 20 (b) “988 Crisis Hotline Center” means a county or contractor
line 21 operated center participating in the National Suicide Prevention
line 22 Lifeline Network to respond to statewide or regional 988 calls.
line 23 (c) “Mental health crisis services” means the continuum of
line 24 services to address crisis intervention, crisis stabilization, and crisis
line 25 residential treatment needs that are wellness, resiliency, and
line 26 recovery oriented. Mental health crisis services include, but are
line 27 not limited to:
line 28 (1) Crisis intervention, including counseling provided by 988
line 29 crisis hotline centers.
line 30 (2) Jurisdiction-based mental health teams, known as mobile
line 31 crisis support teams, that include licensed mental health
line 32 professionals and peer support specialists, as defined in subdivision
line 33 (g) of Section 14045.12 of the Welfare and Institution Code, and
line 34 may include medical and health professionals. Mobile crisis support
line 35 teams provide onsite interventions including deescalation,
line 36 stabilization, and referrals to mental health and other social services
line 37 to individuals who are experiencing a mental health crisis.
line 38 (A) “Mental health professional” means any of the following:
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AB 988 — 7 —
line 1 (i) A licensed clinical social worker, pursuant to Chapter 14
line 2 (commencing with Section 4991) of Division 2 of the Business
line 3 and Professions Code.
line 4 (ii) A licensed professional clinical counselor, pursuant to
line 5 Chapter 16 (commencing with Section 4999.10) of Division 2 of
line 6 the Business and Professions Code.
line 7 (iii) A licensed marriage and family therapist, pursuant to
line 8 Chapter 13 (commencing with Section 4980) of Division 2 of the
line 9 Business and Professions Code.
line 10 (iv) A licensed psychologist, pursuant to Chapter 6.6
line 11 (commencing with Section 2900) of Division 2 of the Business
line 12 and Professions Code.
line 13 (v) A licensed physician under Chapter 5 (commencing with
line 14 Section 2000) of Division 2 of the Business and Professions Code
line 15 who is either a board certified psychiatrist or has completed a
line 16 residency in psychiatry.
line 17 (B) (i) Mobile crisis support teams may include mental health
line 18 teams embedded in Emergency Medical Services.
line 19 (ii) Mobile crisis support teams may include specialized teams
line 20 that can provide coordinated care for individuals experiencing
line 21 chronic homelessness.
line 22 (3) Crisis receiving and stabilization services that are facilities
line 23 with capacity for diagnosis, initial management, observation, crisis
line 24 stabilization, and follow up referral services and include, but are
line 25 not limited to:
line 26 (i) Short-term residential facilities that provide care under 24
line 27 hours.
line 28 (ii) Crisis residential treatment.
line 29 (iii) Peer respite services.
line 30 (iv) Services related to involuntary commitments under the
line 31 Lanterman-Petris-Short Act, Part 1 (commencing with Section
line 32 5000) of Division 5 the Welfare and Institution Code.
line 33 (d) “National Suicide Prevention Lifeline” means the national
line 34 network of local crisis hotline centers that provide free and
line 35 confidential emergency support to people in suicidal crisis or
line 36 emotional distress 24 hours a day, 7 days a week via a toll-free
line 37 hotline number, which receives calls made through the 988 system.
line 38 The toll-free number is maintained by the Assistant Secretary for
line 39 Mental Health and Substance Use under Section 520E-3 of the
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line 1 Public Health Service Act, Section 290bb-36c of Title 42 of the
line 2 Unites States Code (42 U.S.C. 290bb–36c).
line 3 (e) “Office” means the Office of Emergency Services.
line 4 (f) “Substance Abuse and Mental Health Services
line 5 Administration” means that agency of the United States Department
line 6 of Health and Human Services.
line 7 (g) “Veterans Crisis Line” means the hotline which provides
line 8 crisis intervention to veterans and that is maintained by the
line 9 Secretary of Veterans Affairs under Section 1720F(h) of Title 38
line 10 of the United States Code (38 U.S.C. 1720F(h)).
line 11 53123.2. (a) The office shall implement, oversee, and enforce
line 12 the provisions of this article.
line 13 (b) (1) The office shall appoint a 988 crisis hotline system
line 14 director to provide direction and oversight of the implementation
line 15 and administration of the 988 crisis hotline and the mental health
line 16 crisis services that work in conjunction with the crisis hotline
line 17 centers.
line 18 (2) The director shall have experience in all of the following:
line 19 (A) Emergency crisis response and emergency crisis lines.
line 20 (B) Suicide prevention and mental health crisis services.
line 21 (C) Implementation of mental health crisis services, including
line 22 coordination of county and state mental health administrative
line 23 service organizations for the provision of mental health and
line 24 substance use disorder services.
line 25 (c) The office shall do all of the following:
line 26 (1) Designate a 988 crisis hotline center or centers to provide
line 27 crisis intervention services and crisis care coordination to
line 28 individuals accessing the 988. The office shall designate at least
line 29 one 988 crisis hotline center prior to July 16, 2022.
line 30 (2) Ensure coordination between the 988 crisis hotline centers,
line 31 911, mental health crisis services, and, when appropriate, other
line 32 speciality mental health warm lines and hotlines.
line 33 (3) Establish training guidelines for employees involved in the
line 34 implementation of 988 including 988 crisis hotline center staff,
line 35 911 operators, emergency medical services, law enforcement, and
line 36 firefighters. Training guidelines shall be written consistent with
line 37 Section 53123.5.
line 38 (4) Establish standards for mental health crisis services
line 39 accessible through the 988 system.
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AB 988 — 9 —
line 1 (5) Seek to maximize all available federal funding sources,
line 2 including federal medicaid reimbursement, for the purposes of 988
line 3 implementation, including the funding of mental health crisis
line 4 services, in consultation with the State Department of Health Care
line 5 Services.
line 6 (d) (1) To meet its obligations under subdivision (c), the office
line 7 shall adopt regulations by January 1, 2023, which shall be regularly
line 8 reviewed and updated.
line 9 (2) The office shall hold quarterly stakeholder convenings to
line 10 provide input and guidance during, and following, the adoption of
line 11 regulations. The convenings shall include representatives from all
line 12 of the following:
line 13 (A) Mental health consumers who are receiving or have received
line 14 mental health services.
line 15 (B) Parents, spouses, siblings, or adult children of mental health
line 16 consumers.
line 17 (C) Disability rights advocates.
line 18 (D) County behavioral health departments.
line 19 (E) California Indian tribes, as defined in subdivision (c) of
line 20 Section 8012 of the Health and Safety Code.
line 21 (F) Mental health and suicide hotline centers.
line 22 (G) Hospitals.
line 23 (H) Law enforcement.
line 24 (I) Emergency responders.
line 25 (J) Suicide prevention lines.
line 26 (K) State Department of Health Care Services.
line 27 (L) Department of Insurance.
line 28 (M) Department of Managed Health Care.
line 29 (N) State Department of Social Services.
line 30 (O) Mental Health Services Oversight and Accountability
line 31 Commission.
line 32 (P) Office of Suicide Prevention, if established.
line 33 (3) Beginning on January 1, 2023, and no later than January 1,
line 34 2024, 988 crisis hotline centers, counties, and other relevant entities
line 35 shall become fully compliant with the regulations adopted under
line 36 this section, unless otherwise provided by the office.
line 37 (4) The office may adopt emergency regulations implementing
line 38 this act by July 16, 2022. The office may readopt any emergency
line 39 regulation authorized by this section that is the same as or
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— 10 — AB 988
line 1 substantially equivalent to an emergency regulation previously
line 2 adopted under this section.
line 3 (e) The office shall maintain and evaluate data on the usage of,
line 4 services provided for, and outcomes from the 988 system.
line 5 (f) The office shall work with the National Suicide Prevention
line 6 Lifeline, Veterans Crisis Line, and the Substance Abuse and Mental
line 7 Health Services Administration for the purposes of implementing
line 8 988 and ensuring consistency of public messaging about 988
line 9 services. The office shall also seek to maximize efficiency and
line 10 access to crisis hotlines beyond those previously provided.
line 11 (g) Beginning January 1, 2025, and annually thereafter, the
line 12 office shall prepare a report and deliver it to the Legislature, the
line 13 Substance Abuse and Mental Health Services Administration, and
line 14 the Federal Communications Commission, including information
line 15 on the all of the following:
line 16 (1) Data gathered pursuant to subdivision (e).
line 17 (2) Revenue generated by the 988 surcharge as reported by the
line 18 California Department of Tax and Fee Administration pursuant to
line 19 Section 41135 of the Revenue and Taxation Code.
line 20 (3) Deposits made to and expenditures from the Mental Health
line 21 and Crisis Services Special Fund as reported by the State Treasurer
line 22 per subdivision (e) of the Section 53123.6.
line 23 (4) State of county mental health crisis services, how funds from
line 24 the Mental Health and Crisis Services Special Fund are being used
line 25 to support these services, and how additional funds would be used
line 26 to improve, create, or expand access to mental health crisis services
line 27 pursuant to paragraph (1) of subdivision (d) of Section 53123.6.
line 28 (h) The report to be submitted to the Legislature pursuant to
line 29 subdivision (f) shall be submitted in compliance with Section 9795.
line 30 53123.3. (a) 988 crisis hotline centers shall be designated by
line 31 the office as provided in paragraph (1) of subdivision (b) of Section
line 32 53123.2 to operate within California.
line 33 (b) Each 988 crisis hotline center shall do all of the following:
line 34 (1) Maintain an active agreement with the administrator of the
line 35 National Suicide Prevention Lifeline for participation within the
line 36 network.
line 37 (2) Meet federal Substance Abuse and Mental Health Services
line 38 Administration requirements and national best practice guidelines
line 39 for operational and clinical standards, including training
line 40 requirements and policies for transferring callers to an appropriate
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AB 988 — 11 —
line 1 specialized center or subnetworks within or external to the National
line 2 Suicide Prevention Lifeline network.
line 3 (3) Utilize technology that is interoperable between and across
line 4 crisis and emergency response systems used throughout the state
line 5 including to 911, emergency services, and other nonmental health
line 6 crisis services. Technology shall include the capability for all the
line 7 following:
line 8 (A) Interoperability of phone calls, texts, chats, and other similar
line 9 capabilities consistent with the county’s implementation of Next
line 10 Generation 911 pursuant to Section 53121.
line 11 (B) Assigning and tracking local response to mental health crisis
line 12 calls, including the capacity to rapidly deploy mobile crisis support
line 13 teams through global positioning technology.
line 14 (C) Tracking and providing real-time bed availability to crisis
line 15 responders and individuals in crisis for all mental health bed types,
line 16 such as crisis stabilization, psychiatric inpatient, substance use
line 17 disorder inpatient treatment, withdrawal management, and peer
line 18 crisis respite, including voluntary and involuntary beds.
line 19 (4) Maintain information sharing agreements with entities that
line 20 operate 911 call centers for the purpose of real-time care
line 21 coordination including deployment of mobile crisis support teams
line 22 and other mental health crisis services.
line 23 (5) Deploy mental health crisis services, including mobile crisis
line 24 support teams, and coordinate access to crisis receiving and
line 25 stabilization services.
line 26 (A) Any call made to 911 pertaining to a mental health crisis
line 27 shall be transferred to a 988 crisis hotline center. If a law
line 28 enforcement, medical, or fire response is also needed, 988 and 911
line 29 operators shall coordinate the simultaneous deployment of those
line 30 services with mobile crisis support teams.
line 31 (B) Law enforcement shall not be contacted or deployed in
line 32 partnership with a mobile crisis support team unless there is an
line 33 explicit threat to public safety and the situation cannot be
line 34 reasonably managed without law enforcement assistance.
line 35 (6) Provide follow-up services to individuals accessing 988
line 36 consistent with guidance and policies established by the National
line 37 Suicide Prevention Lifeline and within the timeframes established
line 38 by all plan letters pursuant to Section 1374.73 of the Health and
line 39 Safety Code.
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— 12 — AB 988
line 1 (7) Employ or contract to provide a sufficient number of
line 2 qualified bilingual persons or interpreters to ensure provision of
line 3 information and services in the language of the
line 4 non-English-speaking person.
line 5 (8) Provide data, and reports, and participate in evaluations and
line 6 related quality improvement activities as required by the office.
line 7 (c) To the extent the National Suicide Prevention Lifeline admits
line 8 new crisis centers to the network, counties and independent crisis
line 9 hotline centers shall seek to certify, license, and accredit any
line 10 existing county operated, county contracted, or independently
line 11 operated mental health access or suicide prevention lines by July
line 12 16, 2022.
line 13 (d) Crisis hotline centers shall, beginning January 1, 2023, and
line 14 no later than January 1, 2024, unless otherwise provided by the
line 15 office, become fully compliant with any regulations issued by the
line 16 office under subparagraphs (1) and (3) of subdivision (d) of Section
line 17 53123.2.
line 18 (e) All crisis hotline centers shall provide care consistent with
line 19 Section 53123.6.
line 20 53123.4. (a) Counties shall seek to offer a full continuum of
line 21 mental health crisis services, to the extent resources are available.
line 22 This continuum shall include services funded by Section 5848.5
line 23 of the Welfare and Institutions Code and additional grants,
line 24 including grants awarded by the Mental Health Services Oversight
line 25 and Accountability Commission, for the purpose of establishing
line 26 a mental health crisis response system.
line 27 (1) Counties shall seek to maximize existing funding sources
line 28 to maintain mental health crisis services.
line 29 (2) Counties may form a joint powers authority, pursuant to
line 30 Chapter 5 (commencing with Section 6500) of Division 7 of Title
line 31 1, for the purposes of expanding access to mental health crisis
line 32 services and reducing associated costs.
line 33 (b) Counties shall bill the appropriate health care service plan
line 34 or disability insurer for all medically necessary treatment of a
line 35 mental health or substance use disorder provided to
line 36 privately-insured individuals through the 988 system. “Medically
line 37 necessary treatment of a mental health or substance use disorder”
line 38 shall have the same meaning as Section 10144.5 of the Insurance
line 39 Code. Health care service plans and disability insurers shall
line 40 reimburse for such medically necessary treatment within 30
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AB 988 — 13 —
line 1 calendar days. Counties shall report to the Department of Managed
line 2 Health Care and the Department of Insurance any health care
line 3 services plans or disability insurers that fail to reimburse services
line 4 provided through the 988 system for possible enforcement actions.
line 5 (c) County operated mental health crisis services, including
line 6 mobile crisis support teams and crisis receiving and stabilization
line 7 services, shall be made available to 988 callers and counties shall
line 8 coordinate with 988 crisis hotline centers on the deployment of,
line 9 and access to, these services.
line 10 (1) Counties shall consult with California Indian tribes, as
line 11 defined in subdivision (c) of Section 8012 of the Health and Safety
line 12 Code, to ensure mental health crisis services support the unique
line 13 needs of, and are accessible to, the tribes. This may include regional
line 14 coordination with tribal governments and capacity building efforts.
line 15 (d) County operated mental health crisis services shall provide
line 16 care consistent with Section 53123.5.
line 17 53123.5. (a) All elements of the 988 system shall be designed
line 18 to meet the unique needs of California’s diverse communities.
line 19 (b) In compliance with Section 1810.410 of Title 9 of the
line 20 California Code of Regulations and in accordance with the National
line 21 Culturally and Linguistically Appropriate Services Standards
line 22 established by the United States Department of Health and Human
line 23 Services, crisis hotline centers and mental health crisis services
line 24 shall do all of the following:
line 25 (1) Ensure equitable access to services regardless of an
line 26 individual’s race, ethnicity, gender, socioeconomic status, sexual
line 27 orientation, gender identity or expression, or geographic location.
line 28 (2) Meet the unique needs of specific populations, including all
line 29 of the following:
line 30 (A) Populations at greater risk of suicide as identified by the
line 31 Substance Abuse and Mental Health Services Administration.
line 32 (B) Individuals experiencing homelessness, housing instability,
line 33 or who are at risk of experiencing homelessness in the future.
line 34 (C) Children and youth.
line 35 (D) Older adults.
line 36 (E) Individuals with disabilities.
line 37 (F) Black, African American, Hispanic, Latino, Asian, Pacific
line 38 Islander, Native American, Native Hawaiian, Alaska Native, and
line 39 other underserved communities, and the diverse communities and
line 40 backgrounds within these categories.
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line 1 (G) Lesbian, gay, bisexual, transgender, nonbinary, queer, and
line 2 questioning individuals.
line 3 (H) Immigrants and refugees.
line 4 (I) Non-English speakers.
line 5 (J) Low-income persons.
line 6 (K) Religious communities.
line 7 (c) The Office of Health Equity within the State Department of
line 8 Public Health shall provide technical assistance to the office,
line 9 counties, contracted crisis hotline centers, and other contracted
line 10 entities seeking to obtain funds for initiatives in multicultural
line 11 health, including identification of funding sources and assistance
line 12 with writing grants in compliance with paragraph (9) of subdivision
line 13 (a) of Section 152 of the Health and Safety Code.
line 14 53123.6. (a) The 988 State Mental Health and Crisis Services
line 15 Special Fund is hereby established in the State Treasury.
line 16 (b) The fund shall consist of all of the following:
line 17 (1) Revenue generated by the 988 surcharge assessed on users
line 18 under Section 41020 of the Revenue and Taxation Code.
line 19 (2) Appropriations made by the Legislature.
line 20 (3) Grants and gifts intended for deposit in the fund.
line 21 (4) Interest, premiums, gains, or other earnings on the fund.
line 22 (5) Money from any other source that is deposited in or
line 23 transferred to the fund.
line 24 (c) Notwithstanding Section 11754 of the Health and Safety
line 25 Code, federal funds payable directly to the state by the Substance
line 26 Abuse and Mental Health Services Administration to implement
line 27 988 may be made directly to the fund.
line 28 (d) Money in the fund is subject to all of the following:
line 29 (1) Money shall not revert at the end of any fiscal year and shall
line 30 remain available for the purposes of the fund in subsequent state
line 31 fiscal years.
line 32 (2) Money shall not be subject to transfer to any other fund or
line 33 to transfer, assignment, or reassignment for any other use or
line 34 purpose outside of those specified in this article.
line 35 (3) Money shall be continuously appropriated for the purposes
line 36 of the fund.
line 37 (e) (1) Counties shall use any funds remitted to them to fund
line 38 their 988 crisis hotline centers. Any surplus may be used to fund
line 39 mental health crisis services including, but not limited to, mobile
line 40 crisis support teams and crisis receiving and stabilization services.
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AB 988 — 15 —
line 1 (2) The office may adopt regulations regarding the process for
line 2 counties to receive funds.
line 3 (3) Beginning on December 31, 2022 and annually thereafter,
line 4 counties shall report to the office on the state of their mental health
line 5 crisis services, how they are funding these services, and how any
line 6 additional remittance from the 988 State Mental Health and Crisis
line 7 Services Special Fund will be used to improve, create, and expand
line 8 access to mental health crisis services.
line 9 (f) The State Treasurer shall report annually to the office on
line 10 fund deposits and expenditures.
line 11 SEC. 3. Section 324.9 is added to the Public Utilities Code, to
line 12 read:
line 13 324.9. The California Public Utilities Commission shall publish
line 14 on its internet website relevant information regarding the Miles
line 15 Hall Lifeline Act, Article 6.1 (commencing with Section 53123)
line 16 of Part 1 of Division 2 of Title 5 of the Government Code and
line 17 Federal Communications Commission and North American
line 18 Numbering Plan Administrator guidelines regarding 988
line 19 implementation, including customer education and network
line 20 modification.
line 21 SEC. 4. Section 41007.2 of the Revenue and Taxation Code
line 22 is amended to read:
line 23 41007.2. (a) “Wireline communications service” shall mean
line 24 a local exchange service provided at a physical location in this
line 25 state that allows the user to make an outbound communication to
line 26 the 911 emergency communications system.
line 27 (b) For the purposes of the surcharge imposed by Chapter 2
line 28 (commencing with Section 41020):
line 29 (1) A wireline communications service access line does not
line 30 include a direct inward dialing number, extension, or other similar
line 31 feature that routes an inbound call and cannot provide access to
line 32 the 911 emergency communications system. or 988 crisis hotline.
line 33 (2) The number of surcharges imposed shall not exceed the total
line 34 number of concurrent outbound calls that can be placed to the
line 35 emergency communications system at a single point of time.
line 36 (c) This definition shall apply only to this part.
line 37 (d) Commencing January 1, 2022, the definition shall include
line 38 a local exchange service provided at a physical location in this
line 39 state that allows the user to make an outbound communication to
line 40 the 988 crisis hotline as defined in Miles Hall Lifeline Act, Article
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line 1 6.1 (commencing with Section 53123) of Part 1 of Division 2 of
line 2 Title 5 of the Government Code.
line 3 SEC. 5. Section 41007.3 of the Revenue and Taxation Code
line 4 is amended to read:
line 5 41007.3. (a) “Wireless communications service line” shall
line 6 mean a telecommunications service provided to an end user with
line 7 a place of primary use in this state that allows the end user to make
line 8 an outbound communication to the 911 emergency communications
line 9 system. A wireless communications service line shall not include
line 10 prepaid mobile telephony service.
line 11 (b) For the purposes of the surcharge imposed by Chapter 2
line 12 (commencing with Section 41020), not more than one surcharge
line 13 may be imposed per wireless communications service line number
line 14 assigned to an end user of mobile telecommunications service.
line 15 (c) This definition shall apply only to this part.
line 16 (d) Commencing January 1, 2022, the definition shall include
line 17 a telecommunications service provided to an end user with a place
line 18 of primary use in this state that allows the end user to make an
line 19 outbound communication to the 988 crisis hotline as defined in
line 20 Miles Hall Lifeline Act, Article 6.1 (commencing with Section
line 21 53123) of Part 1 of Division 2 of Title 5 of the Government Code.
line 22 A wireless communications service line shall not include prepaid
line 23 mobile telephony service.
line 24 SEC. 6. Section 41013 of the Revenue and Taxation Code is
line 25 amended to read:
line 26 41013. “Surcharge” means a tax or taxes levied by this state.
line 27 “Surcharge,” or “surcharges” as used in this part, refers to two
line 28 separate charges, one related to 911 service and one related to
line 29 988 service.
line 30 SEC. 7. The heading of Chapter 2 (commencing with Section
line 31 41020) of Part 20 of Division 2 of the Revenue and Taxation Code
line 32 is amended to read:
line 33
line 34 Chapter 2. The Surcharge Surcharges
line 35
line 36 SEC. 8. The heading of Article 1 (commencing with Section
line 37 41020) of Chapter 2 of Part 20 of Division 2 of the Revenue and
line 38 Taxation Code is amended to read:
line 39
line 40 Article 1. Imposition of the Surcharge Surcharges
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AB 988 — 17 —
line 1 SEC. 9. Section 41020 of the Revenue and Taxation Code is
line 2 amended to read:
line 3 41020. (a) (1) (A) On and after January 1, 2020, a 911
line 4 surcharge is hereby imposed on each access line for each month
line 5 or part thereof for which a service user subscribes with a service
line 6 supplier, at an amount determined under Article 2 (commencing
line 7 with Section 41030). Beginning January 1, 2022, a separate 988
line 8 surcharge is hereby imposed on each access line for each month
line 9 or part thereof for which a service user subscribes with a service
line 10 supplier, at an amount determined under Article 2 (commencing
line 11 with Section 41030).
line 12 (B) The surcharge surcharges shall be paid by the service user
line 13 as hereinafter provided.
line 14 (2) On and after January 1, 2020, the purchase of prepaid mobile
line 15 telephony services in this state shall be subject to a surcharge the
line 16 surcharges set forth under Article 2 (commencing with Section
line 17 41030). The surcharge surcharges shall be paid by the prepaid
line 18 consumer in accordance with Section 41028 and remitted and
line 19 administered in accordance with this part.
line 20 (b) The surcharge surcharges imposed shall not apply to either
line 21 of the following:
line 22 (1) In accordance with the Mobile Telecommunications Sourcing
line 23 Act (Public Law 106-252), which is incorporated herein by
line 24 reference, to any charges for mobile telecommunications services
line 25 billed to a customer where those services are provided, or deemed
line 26 provided, to a customer whose place of primary use is outside this
line 27 state. Mobile telecommunications services shall be deemed
line 28 provided by a customer’s home service provider to the customer
line 29 if those services are provided in a taxing jurisdiction to the
line 30 customer, and the charges for those services are billed by or for
line 31 the customer’s home service provider.
line 32 (2) To any charges for VoIP service billed to a customer where
line 33 those services are provided to a customer whose place of primary
line 34 use of VoIP service is outside this state.
line 35 (c) For purposes of this section:
line 36 (1) “Access line in this state” means a telephone line as defined
line 37 in Section 233 of the Public Utilities Code associated with a billing
line 38 address located in California.
line 39 (2) “Charges for mobile telecommunications services” means
line 40 any charge for, or associated with, the provision of commercial
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line 1 mobile radio service, as defined in Section 20.3 of Title 47 of the
line 2 Code of Federal Regulations, as in effect on June 1, 1999, or any
line 3 charge for, or associated with, a service provided as an adjunct to
line 4 a commercial mobile radio service, that is billed to the customer
line 5 by or for the customer’s home service provider, regardless of
line 6 whether individual transmissions originate or terminate within the
line 7 licensed service area of the home service provider.
line 8 (3) “Customer” means (A) the person or entity that contracts
line 9 with the home service provider for mobile telecommunications
line 10 services, or with a VoIP service provider for VoIP service, or (B)
line 11 if the end user of mobile telecommunications services or VoIP
line 12 service is not the contracting party, the end user of the mobile
line 13 telecommunications service or VoIP service. This paragraph applies
line 14 only for the purpose of determining the place of primary use. The
line 15 term “customer” does not include (A) a reseller of mobile
line 16 telecommunications service or VoIP communication service, or
line 17 (B) a serving carrier under an arrangement to serve the mobile
line 18 customer outside the home service provider’s licensed service
line 19 area.
line 20 (4) “Home service provider” means the facilities-based carrier
line 21 or reseller with which the customer contracts for the provision of
line 22 mobile telecommunications services.
line 23 (5) “Licensed service area” means the geographic area in which
line 24 the home service provider is authorized by law or contract to
line 25 provide commercial mobile radio service to the customer.
line 26 (6) “Mobile telecommunications service” means commercial
line 27 mobile radio service, as defined in Section 20.3 of Title 47 of the
line 28 Code of Federal Regulations, as in effect on June 1, 1999.
line 29 (7) “Place of primary use” means the street address
line 30 representative of where the customer’s use of the mobile
line 31 telecommunications service or VoIP service primarily occurs, that
line 32 must be:
line 33 (A) The residential street address or the primary business street
line 34 address of the customer.
line 35 (B) With respect to mobile telecommunications service, within
line 36 the licensed service area of the home service provider.
line 37 (8) (A) “Reseller” means a provider who purchases
line 38 telecommunications services or VoIP service from another
line 39 telecommunications service provider or VoIP service and then
line 40 resells the services, or uses the services as a component part of,
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AB 988 — 19 —
line 1 or integrates the purchased services into, a mobile
line 2 telecommunications service or VoIP service.
line 3 (B) “Reseller” does not include a serving carrier with which a
line 4 home service provider arranges for the services to its customers
line 5 outside the home service provider’s licensed service area.
line 6 (9) “Serving carrier” means a facilities-based carrier providing
line 7 mobile telecommunications service to a customer outside a home
line 8 service provider’s or reseller’s licensed area.
line 9 (10) “Taxing jurisdiction” means any of the several states, the
line 10 District of Columbia, or any territory or possession of the United
line 11 States, any municipality, city, county, township, parish,
line 12 transportation district, or assessment jurisdiction, or any other
line 13 political subdivision within the territorial limits of the United States
line 14 with the authority to impose a tax, charge, or fee.
line 15 (11) “VoIP service provider” means that provider of VoIP
line 16 service with whom the end user customer contracts for the
line 17 provision of VoIP services for the customer’s own use and not for
line 18 resale.
line 19 SEC. 10. Section 41021 of the Revenue and Taxation Code is
line 20 amended to read:
line 21 41021. (a) A service supplier shall collect the surcharge
line 22 surcharges from each service user at the time it collects its billings
line 23 from the service user, provided that the duty to collect the surcharge
line 24 from a service user shall commence with the beginning of the first
line 25 regular billing period applicable to that person which starts on or
line 26 after the operative date of the surcharge imposed by this part. If
line 27 the stations or lines of more than one service supplier are utilized
line 28 in furnishing the telephone communication services to the service
line 29 user, the service supplier that bills the customer shall collect the
line 30 surcharge from the customer.
line 31 (b) Only one payment under this part shall be required with
line 32 respect to the surcharge surcharges on a service, notwithstanding
line 33 that the lines or stations of one or more service suppliers are used
line 34 in furnishing that service.
line 35 SEC. 11. Section 41022 of the Revenue and Taxation Code is
line 36 amended to read:
line 37 41022. The surcharge surcharges required to be collected by
line 38 the service supplier shall be added to and stated separately in its
line 39 billings to the service user.
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line 1 SEC. 12. Section 41023 of the Revenue and Taxation Code is
line 2 amended to read:
line 3 41023. The surcharge surcharges required to be collected by
line 4 the service supplier, and any amount unreturned to the service user
line 5 which is not a surcharge but was collected from the service user
line 6 as representing a surcharge, constitute debts owed by the service
line 7 supplier to this state.
line 8 A service supplier that has collected any amount of surcharge
line 9 surcharges in excess of the amount of surcharge surcharges
line 10 imposed by this part and actually due from a service user, may
line 11 refund such amount to the service user, even though such surcharge
line 12 amount has already been paid over to the board and no
line 13 corresponding credit or refund has yet been secured. Any service
line 14 supplier making a refund of any charge to a service user upon
line 15 which surcharge is collected under this part from the service user
line 16 may repay therewith the amount of the surcharge paid. The service
line 17 supplier may claim credit for such overpayment against the amount
line 18 of surcharge surcharges imposed by this part which is due upon
line 19 any other quarterly return, providing such credit is claimed in a
line 20 return dated no later than three years from the date of overpayment.
line 21 SEC. 13. Section 41024 of the Revenue and Taxation Code is
line 22 amended to read:
line 23 41024. Every service user in this state is liable for the surcharge
line 24 surcharges until it has they have been paid to this state, except that
line 25 payment to a service supplier registered under this part is sufficient
line 26 to relieve the user from further liability for the tax.
line 27 Any surcharge collected from a service user which has not been
line 28 remitted to the board shall be deemed a debt owed to the State of
line 29 California by the person required to collect and remit such
line 30 surcharge. Nothing in this part shall impose any obligation upon
line 31 a service supplier to take any legal action to enforce the collection
line 32 of the utility users surcharge imposed by this part. The service
line 33 supplier shall provide the board with amounts uncollected which
line 34 total three dollars ($3) or more on a cumulative basis with respect
line 35 to a single service user along with the names, addresses and reasons
line 36 of the service users refusing to pay the surcharge surcharges
line 37 imposed by this part.
line 38 SEC. 14. Section 41026 of the Revenue and Taxation Code is
line 39 amended to read:
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AB 988 — 21 —
line 1 41026. In the payment of the surcharge surcharges imposed
line 2 by this part, a fractional part of a cent shall be disregarded unless
line 3 it amounts to one-half or more, in which case it shall be increased
line 4 to one cent.
line 5 SEC. 15. Section 41028 of the Revenue and Taxation Code is
line 6 amended to read:
line 7 41028. (a) (1) On and after January 1, 2020, the surcharge
line 8 amount amounts imposed by Section 41020 on the purchase of
line 9 prepaid mobile telephony services in this state shall be collected
line 10 by a seller from each prepaid consumer at the time of each retail
line 11 transaction in this state.
line 12 (2) The amount of the surcharge surcharge shall be separately
line 13 stated on an invoice, receipt, or other similar document that is
line 14 provided to the prepaid consumer of mobile telephony services by
line 15 the seller, or otherwise disclosed electronically to the prepaid
line 16 consumer, at the time of the retail transaction.
line 17 (b) (1) The surcharge that is surcharges that are required to be
line 18 collected by a seller and any amount unreturned to the prepaid
line 19 consumer of mobile telephony services that is not owed as part of
line 20 the surcharge, but was collected from the prepaid consumer under
line 21 the representation by the seller that it was owed as part of the
line 22 surcharge, constitutes debts owed by the seller to this state.
line 23 (2) A seller that has collected any amount of surcharge in excess
line 24 of the amount of the surcharge imposed by this part and actually
line 25 due from a prepaid consumer may refund that amount to the
line 26 prepaid consumer, even though the surcharge amount has already
line 27 been paid over to the department and no corresponding credit or
line 28 refund has yet been secured. Any seller making a refund of any
line 29 charge to a prepaid consumer may repay therewith the amount of
line 30 the surcharge paid. The seller may claim credit for such
line 31 overpayment against the amount of surcharge imposed by this part
line 32 which is due upon any other quarterly return, providing such credit
line 33 is claimed in a return dated no later than three years from the date
line 34 of overpayment.
line 35 (c) (1) Every prepaid consumer of prepaid mobile telephony
line 36 services in this state is liable for the surcharge surcharges until it
line 37 has been paid to this state, except that payment to a seller registered
line 38 under this part relieves the prepaid consumer from further liability
line 39 for the surcharge. surcharges. Any surcharge collected from a
line 40 prepaid consumer that has not been remitted to the department
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— 22 — AB 988
line 1 shall be a debt owed to the state by the person required to collect
line 2 and remit the surcharge. Nothing in this part shall impose any
line 3 obligation upon a seller to take any legal action to enforce the
line 4 collection of the surcharge imposed by this section.
line 5 (2) A credit shall be allowed against, but shall not exceed, the
line 6 surcharge amount amounts imposed on any prepaid consumer of
line 7 mobile telephony services by this part to the extent that the prepaid
line 8 consumer has paid emergency telephone users charges on the
line 9 purchase to any other state, political subdivision thereof, or the
line 10 District of Columbia. The credit shall be apportioned to the charges
line 11 against which it is allowed in proportion to the amounts of those
line 12 charges.
line 13 (d) A seller is relieved from liability to collect the prepaid MTS
line 14 surcharge imposed by this part that became due and payable,
line 15 insofar as the base upon which the surcharge is imposed is
line 16 represented by accounts that have been found to be worthless and
line 17 charged off for income tax purposes by the seller or, if the seller
line 18 is not required to file income tax returns, charged off in accordance
line 19 with generally accepted accounting principles. A seller that has
line 20 previously paid the surcharge may, under rules and regulations
line 21 prescribed by the board, take as a deduction on its return the
line 22 amount found worthless and charged off by the seller. If any such
line 23 accounts are thereafter in whole or in part collected by the seller,
line 24 the amount so collected shall be included in the first return filed
line 25 after such collection and the surcharge shall be paid with the return.
line 26 (e) For purposes of this part, all of the following definitions
line 27 shall apply:
line 28 (1) “Prepaid consumer” means a person who purchases prepaid
line 29 mobile telephony services in a retail transaction.
line 30 (2) “Retail transaction” means the purchase of prepaid mobile
line 31 telephony services, either alone or in combination with mobile
line 32 data or other services, from a seller for any purpose other than
line 33 resale in the regular course of business. For these purposes, a
line 34 “purchase” means any transfer of title or possession, exchange, or
line 35 barter, conditional or otherwise.
line 36 (3) “Seller” means a person that sells prepaid mobile telephony
line 37 service to a person in a retail transaction.
line 38 (f) For purposes of this section, a retail transaction occurs in
line 39 the state under any of the following circumstances:
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AB 988 — 23 —
line 1 (1) The prepaid consumer makes the retail transaction in person
line 2 at a business location in the state (point-of-sale transaction).
line 3 (2) If paragraph (1) is not applicable, the prepaid consumer’s
line 4 address is in the state (known-address transaction). A
line 5 known-address transaction occurs in the state under any of the
line 6 following circumstances:
line 7 (A) The retail sale involves shipping of an item to be delivered
line 8 to, or picked up by, the prepaid consumer at a location in the state.
line 9 (B) If the prepaid consumer’s address is known by the seller to
line 10 be in the state, including if the seller’s records maintained in the
line 11 ordinary course of business indicate that the prepaid consumer’s
line 12 address is in the state and the records are not made or kept in bad
line 13 faith.
line 14 (C) The prepaid consumer provides an address during
line 15 consummation of the retail transaction that is in the state, including
line 16 an address provided with respect to the payment instrument if no
line 17 other address is available and the address is not given in bad faith.
line 18 (3) If an address is not available to the seller to determine
line 19 whether any of the circumstances in paragraph (2) exist, the
line 20 transaction will be deemed to be a known-address transaction
line 21 occurring in this state if the mobile telephone number is associated
line 22 with a location in this state.
line 23 (g) The surcharge amounts imposed under this section shall be
line 24 remitted by every seller, except a service supplier, as prescribed
line 25 under Part 1 (commencing with Section 6001), along with a return
line 26 filed using electronic media. The department shall administer such
line 27 remittance and returns as prescribed under Part 1 (commencing
line 28 with Section 6001).
line 29 (h) The purchase in a retail transaction in this state of prepaid
line 30 mobile telephony services, either alone or in combination with
line 31 mobile data or other services, by a prepaid consumer is exempt
line 32 from the surcharge surcharges if all of the following apply:
line 33 (1) The prepaid consumer is certified as eligible for the state
line 34 lifeline program or federal lifeline program.
line 35 (2) The seller is authorized to provide lifeline service under the
line 36 state lifeline program or federal lifeline program.
line 37 (3) The exemption is applied only to the amount paid for the
line 38 portion of the prepaid mobile telephony service that the lifeline
line 39 program specifies is exempt from the surcharges and fees.
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line 1 SEC. 16. The heading of Article 2 (commencing with Section
line 2 41030) of Chapter 2 of Part 20 of Division 2 of the Revenue and
line 3 Taxation Code is amended to read:
line 4
line 5 Article 2. Adjustment of Surcharge Amount Amounts
line 6
line 7 SEC. 17. Section 41030 of the Revenue and Taxation Code is
line 8 amended to read:
line 9 41030. (a) The Office of Emergency Services shall determine
line 10 annually, on or before October 1, to be effective on January 1 of
line 11 the following year, a surcharge amount pursuant to subdivision
line 12 (b) that it estimates will produce sufficient revenue to fund the
line 13 current fiscal year’s 911 9-8-8 costs. and 988 costs.
line 14 (b) For determinations made that are applicable to the calendar
line 15 year beginning on January 1, 2020, and each calendar year
line 16 thereafter, the surcharge amount shall be determined annually by
line 17 dividing the costs, including incremental costs, the Office of
line 18 Emergency Services estimates for the current fiscal year of 911
line 19 both of the following:
line 20 (1) 911 costs approved pursuant to Article 6 (commencing with
line 21 Section 53100) of Chapter 1 of Part 1 of Division 2 of Title 5 of
line 22 the Government Code, less the available balance in the State
line 23 Emergency Telephone Number Account in the General Fund, by
line 24 its estimate of the number of access lines to which the surcharge
line 25 will apply per month for the period of January 1 to December 31,
line 26 inclusive, of the next succeeding calendar year, but in no event
line 27 shall the surcharge amount in any month be greater than eighty
line 28 cents ($0.80) per access line per month.
line 29 (2) For the year beginning January 1, 2023, and each calendar
line 30 year thereafter, 988 costs approved pursuant to Article 6.1
line 31 (commencing with Section 53123) of Chapter 1 of Part 1 of
line 32 Division 2 of Title 5 of the Government Code, less the available
line 33 balance in the State Mental Health and Crisis Services Special
line 34 Fund by its estimate of the number of access lines to which the
line 35 surcharge will apply per month for the period of January 1 to
line 36 December 31, inclusive, of the next succeeding calendar year.
line 37 (c) When determining the surcharge amount pursuant to this
line 38 section, the office shall include the costs it expects to incur to plan,
line 39 test, implement, and operate Next Generation 911 technology and
line 40 services, including text to 911 service, and alerts and warnings,
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AB 988 — 25 —
line 1 consistent with the plan and timeline required by Section 53121
line 2 of the Government Code.
line 3 (d) (1) Service suppliers shall report the total number of access
line 4 lines to the Office of Emergency Services, on or before August 1,
line 5 for the previous period of January 1 to December 31, inclusive.
line 6 (2) The total number of access lines required to be reported in
line 7 paragraph (1) shall include all lines from the categories of wireline
line 8 communication service line, wireless communication service line,
line 9 prepaid mobile telephony service line, and VoIP service line. The
line 10 number of access line figures shall be reported individually for
line 11 these categories.
line 12 (e) The office shall perform a validation of the number of access
line 13 lines using subscription data or other comparable data collected
line 14 by appropriate federal or state agencies. This subscription data or
line 15 other comparable data shall be used to validate the access line data
line 16 required to be reported by service suppliers in subdivision (d).
line 17 (f) (1) The office shall notify the department of the surcharge
line 18 amount imposed under this part, determined pursuant to this section
line 19 on or before October 1 of each year.
line 20 (2) The surcharge imposed on the purchase of prepaid mobile
line 21 telephony services shall be equal to the amount set forth in
line 22 subdivision (b) for each retail transaction in this state.
line 23 (g) (1) At least 30 days prior to determining the surcharge
line 24 pursuant to subdivision (a), the Office of Emergency Services shall
line 25 prepare a summary of the calculation of the proposed surcharge
line 26 and make it available to the public, the Legislature, the 911
line 27 Advisory Board, Board, the Mental Health Services Oversight and
line 28 Accountability Commission, the State Department of Public Health,
line 29 and on its internet website.
line 30 (2) For determinations made on or before October 1, 2019, the
line 31 summary shall contain all of the following:
line 32 (A) The prior year revenues to fund 911 costs, including, but
line 33 not limited to, revenues from prepaid service.
line 34 (B) Projected expenses and revenues from all sources, including,
line 35 but not limited to, prepaid service to fund 911 costs.
line 36 (C) The rationale for adjustment to the surcharge determined
line 37 pursuant to subdivision (b), including, but not limited to, all
line 38 impacts from the surcharge collected pursuant to Part 21
line 39 (commencing with Section 42001).
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line 1 (h) For purposes of this section, for the determination made by
line 2 the office on or before October 1, 2019, that is applicable for the
line 3 calendar year beginning on January 1, 2020, and ending on
line 4 December 31, 2020, the following definitions shall apply:
line 5 (1) “Service supplier” shall mean a person supplying an access
line 6 line to a service user in this state.
line 7 (2) “Service user” means any person that subscribes for the right
line 8 to utilize an access line in this state who is required to pay a
line 9 surcharge under the provisions of this part.
line 10 (i) It is the intent of the Legislature that the 988 surcharge may
line 11 be adjusted for low-income households, including all households
line 12 eligible for the California Lifeline Program.
line 13 SEC. 18. Section 41031 of the Revenue and Taxation Code is
line 14 amended to read:
line 15 41031. The Office of Emergency Services shall make its
line 16 determination of the surcharge amount amounts each year no later
line 17 than October 1 and shall notify the department of the new amount,
line 18 amounts, which shall be fixed by the department to be effective
line 19 with respect to access lines on or after January 1 of the next
line 20 succeeding calendar year.
line 21 SEC. 19. Section 41032 of the Revenue and Taxation Code is
line 22 amended to read:
line 23 41032. Immediately upon notification by the Office of
line 24 Emergency Services and fixing the surcharge amount, amounts,
line 25 the department shall each year no later than November 15 publish
line 26 in its minutes the new amount, and it shall notify every service
line 27 supplier registered with it of the new amount by a means, or means
line 28 determined by the department, that may include, but is not limited
line 29 to, mail, electronic mail, or internet website postings.
line 30 SEC. 20. Section 41050 of the Revenue and Taxation Code is
line 31 amended to read:
line 32 41050. The surcharge surcharges imposed by Section 41020
line 33 attaches attach at the time charges for the intrastate telephone
line 34 communication services and VoIP service are billed by the service
line 35 supplier to the service user and shall be paid by the service user
line 36 when paying for such services.
line 37 SEC. 21. Section 41098 of the Revenue and Taxation Code is
line 38 amended to read:
line 39 41098. (a) If the board finds that a person’s failure to make a
line 40 timely return or payment is due to the person’s reasonable reliance
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line 1 on written advice from the board, the person may be relieved of
line 2 the surcharge surcharges imposed by this part and any penalty or
line 3 interest added thereto.
line 4 (b) For purposes of this section, a person’s failure to make a
line 5 timely return or payment shall be considered to be due to
line 6 reasonable reliance on written advice from the board, only if the
line 7 board finds that all of the following conditions are satisfied:
line 8 (1) The person requested in writing that the board advise him
line 9 or her them whether a particular activity or transaction is subject
line 10 to the surcharge under this part. The specific facts and
line 11 circumstances of the activity or transaction shall be fully described
line 12 in the request.
line 13 (2) The board responded in writing to the person regarding the
line 14 written request for advice, stating whether or not the described
line 15 activity or transaction is subject to the surcharge, surcharges, or
line 16 stating the conditions under which the activity or transaction is
line 17 subject to the surcharge. surcharge.
line 18 (3) The liability for surcharges applied to a particular activity
line 19 or transaction which occurred before either of the following:
line 20 (A) Before the board rescinded or modified the advice so given,
line 21 by sending written notice to the person of rescinded or modified
line 22 advice.
line 23 (B) Before a change in statutory or constitutional law, a change
line 24 in the board’s regulations, or a final decision of a court, which
line 25 renders the board’s earlier written advice no longer valid.
line 26 (c) Any person seeking relief under this section shall file with
line 27 the board all of the following:
line 28 (1) A copy of the person’s written request to the board and a
line 29 copy of the board’s written advice.
line 30 (2) A statement under penalty of perjury setting forth the facts
line 31 on which the claim for relief is based.
line 32 (3) Any other information which the board may require.
line 33 (d) Only the person making the written request shall be entitled
line 34 to rely on the board’s written advice to that person.
line 35 SEC. 22. Section 41100 of the Revenue and Taxation Code is
line 36 amended to read:
line 37 41100. If the department determines that any amount, penalty,
line 38 or interest has been paid more than once or has been erroneously
line 39 or illegally collected or computed, the department shall set forth
line 40 that fact in the records of the department, certify the amount
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line 1 collected in excess of the amount legally due and the person from
line 2 whom it was collected or by whom paid, and credit the excess
line 3 amount collected or paid on any amounts then due and payable
line 4 from the person from whom the excess amount was collected or
line 5 by whom it was paid under this part, and the balance shall be
line 6 refunded to the person, or their successors, administrators, or
line 7 executors. Any proposed determination by the department pursuant
line 8 to this section with respect to an amount in excess of fifty thousand
line 9 dollars ($50,000) shall be available as a public record for at least
line 10 10 days prior to the effective date of that determination.
line 11 Any overpayment of the a surcharge by a service user to a service
line 12 supplier or seller who is required to collect the surcharge shall be
line 13 credited or refunded by the state to the service user. However, if
line 14 the service supplier or seller has paid the amount to the department
line 15 and establishes to the satisfaction of the department that it has not
line 16 collected the amount from the service user or has refunded the
line 17 amount to the service user, the overpayment may be credited or
line 18 refunded by the state to the service supplier.
line 19 SEC. 23. Section 41128 of the Revenue and Taxation Code is
line 20 amended to read:
line 21 41128. The board shall enforce the provisions of this part and
line 22 may prescribe, adopt, and enforce rules and regulations relating
line 23 to the administration and enforcement of this part. The board shall
line 24 not prescribe, adopt or enforce any rule or regulation which has
line 25 the effect, directly or indirectly, of altering the terms and conditions
line 26 of service of a service supplier serving the general public, other
line 27 than the imposition of the surcharge. surcharges.
line 28 SEC. 24. Section 41135 of the Revenue and Taxation Code is
line 29 amended to read:
line 30 41135. (a) All amounts required to be paid to the state under
line 31 this part shall be paid to the department in the form of remittances
line 32 payable to the California Department of Tax and Fee
line 33 Administration. The department shall transmit the payments to the
line 34 State Treasurer to be deposited in the State Treasury to the credit
line 35 of either the State Emergency Telephone Number Account in the
line 36 General Fund, which is hereby created. Fund, or the State Mental
line 37 Health and Crisis Services Special Fund depending on the
line 38 apportionment of the surcharge to arising from the 911 emergency
line 39 communication system or the 988 crisis hotline.
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line 1 (b) The department in consultation with the Office of Emergency
line 2 Services, may adopt regulations to implement the apportionment
line 3 of the surcharge.
line 4 (c) The department shall submit an annual report to the Office
line 5 of Emergency Services on revenue generated by the 988 surcharge.
line 6 SEC. 25. Section 41136 of the Revenue and Taxation Code is
line 7 amended to read:
line 8 41136. (a) From the funds in the State Emergency Telephone
line 9 Number Account, all amounts of the 911 surcharge collected shall,
line 10 when appropriated by the Legislature, be spent solely for the
line 11 following purposes:
line 12 (a)
line 13 (1) To pay refunds authorized by this part.
line 14 (b)
line 15 (2) To pay the department for the cost of the administration of
line 16 this part.
line 17 (c)
line 18 (3) To pay the Office of Emergency Services for its costs in
line 19 administration of the “911” emergency telephone number system.
line 20 (d)
line 21 (4) To pay bills submitted to the Office of Emergency Services
line 22 by service suppliers or communications equipment companies for
line 23 the installation of, and ongoing expenses for, the following
line 24 communications services supplied to local agencies in connection
line 25 with the “911” emergency phone number system:
line 26 (1)
line 27 (A) A basic system, defined as 911 systems, including, but not
line 28 limited to, Next Generation 911, and the subsequent technologies,
line 29 and interfaces needed to deliver 911 voice and data information
line 30 from the 911 caller to the emergency responder and the subsequent
line 31 technologies, and interfaces needed to send information, including,
line 32 but not limited to, alerts and warnings, to potential 911 callers.
line 33 (2)
line 34 (B) A basic system with telephone central office identification.
line 35 (3)
line 36 (C) A system employing automatic call routing.
line 37 (4)
line 38 (D) Approved incremental costs.
line 39 (e)
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line 1 (5) To pay claims of local agencies for approved incremental
line 2 costs, not previously compensated for by another governmental
line 3 agency.
line 4 (f)
line 5 (6) To pay claims of local agencies for incremental costs and
line 6 amounts, not previously compensated for by another governmental
line 7 agency, incurred prior to the effective date of this part, for the
line 8 installation and ongoing expenses for the following communication
line 9 services supplied in connection with the “911” emergency
line 10 telephone number system:
line 11 (1)
line 12 (A) A basic system, defined as 911 systems, including, but not
line 13 limited to, Next Generation 911, and the subsequent technologies,
line 14 and interfaces needed to deliver 911 voice and data information
line 15 from the 911 caller to the emergency responder and the subsequent
line 16 technologies, and interfaces needed to send information, including,
line 17 but not limited to, alerts and warnings, to potential 911 callers.
line 18 (2)
line 19 (B) A basic system with telephone central office identification.
line 20 (3)
line 21 (C) A system employing automatic call routing.
line 22 (4)
line 23 (D) Approved incremental costs. Incremental costs shall not be
line 24 allowed unless the costs are concurred in by the Office of
line 25 Emergency Services.
line 26 (b) (1) From the funds in the State Mental Health and Crisis
line 27 Services Special Fund, all amounts of the 988 surcharge collected
line 28 are continuously appropriated and shall be spent for purposes
line 29 identified in Section 53123.6 of the Government Code. However,
line 30 before funds are disbursed as provide in Section 53123.6 of the
line 31 Government Code, funds shall be used for all of the following:
line 32 (A) To pay refunds authorized by this part.
line 33 (B) To pay the department for the cost of the administration of
line 34 this part.
line 35 (C) To pay the Office of Emergency Services for its costs in
line 36 administration of the 988 crisis hotline.
line 37 (2) The remainder of the revenue shall be disbursed to the Office
line 38 of Emergency Services for the purposes identified in Section
line 39 53123.6.
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line 1 SEC. 26. Section 41150 of the Revenue and Taxation Code is
line 2 amended to read:
line 3 41150. (a) The Legislature hereby declares and finds that to
line 4 enable public agencies to implement “911” emergency phone
line 5 systems required by the provisions of Chapter 1005 of the 1972
line 6 Regular Session (Article 6 (commencing with Section 53100) of
line 7 Chapter 1 of Part 1 of Division 2 of Title 5 of the Government
line 8 Code) it is necessary that a surcharge be imposed upon access lines
line 9 purchased by every person in the state for access to the 911
line 10 emergency communication system. This act will provide funding
line 11 for basic 911, as defined in Section 41136, and the technology and
line 12 interfaces needed to deliver 911 voice and data information from
line 13 the 911 caller to the emergency responder and the subsequent
line 14 technologies, and interfaces needed to send information, including,
line 15 but not limited to, alerts and warnings, to potential 911 callers. In
line 16 addition, this part will provide funding for incremental costs.
line 17 (b) The Legislature hereby finds and declares that to enable
line 18 public agencies to implement the “988” hotline required by the
line 19 provisions of the Miles Hall Lifeline Act (Article 6.1 (commencing
line 20 with Section 53123) of Chapter 1 of Part 1 of Division 2 of Title
line 21 5 of the Government Code) it is necessary that a surcharge be
line 22 imposed upon access lines purchased by every person in the state
line 23 for access to the 988 crisis hotline. This act, as amended by the
line 24 act adding this subdivision will provide funding, in part, for 988
line 25 crisis hotline centers operated by counties and mobile crisis
line 26 support teams and crisis receiving and stabilization services.
line 27 SEC. 27. Notwithstanding Section 13340 of the Government
line 28 Code, the State Mental Health and Crisis Services Special Fund
line 29 is hereby continuously appropriated to the Office of Emergency
line 30 Services for allocation as set forth in this act without regard to
line 31 fiscal year for the purposes of this act.
line 32 SEC. 28. No reimbursement is required by this act pursuant to
line 33 Section 6 of Article XIIIB of the California Constitution for certain
line 34 costs that may be incurred by a local agency or school district
line 35 because, in that regard, this act creates a new crime or infraction,
line 36 eliminates a crime or infraction, or changes the penalty for a crime
line 37 or infraction, within the meaning of Section 17556 of the
line 38 Government Code, or changes the definition of a crime within the
line 39 meaning of Section 6 of Article XIII B of the California
line 40 Constitution.
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line 1 However, if the Commission on State Mandates determines that
line 2 this act contains other costs mandated by the state, reimbursement
line 3 to local agencies and school districts for those costs shall be made
line 4 pursuant to Part 7 (commencing with Section 17500) of Division
line 5 4 of Title 2 of the Government Code.
line 6 SEC. 29. This act is an urgency statute necessary for the
line 7 immediate preservation of the public peace, health, or safety within
line 8 the meaning of Article IV of the California Constitution and shall
line 9 go into immediate effect. The facts constituting the necessity are:
line 10 The national 988 system will be fully operationalized on July
line 11 16, 2022, by which point California must establish the means to
line 12 answer and respond to calls. Given the Office of Emergency
line 13 Services, counties, and 988 crisis hotline centers must implement
line 14 this act within less than one year of its passage, it is necessary for
line 15 this act to take immediate effect.
O
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