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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. 98 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. 98 — 2 — SB 5 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. 98 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 98 — 4 — SB 5 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 98 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 98 — 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 98 — 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 98 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: 98 — 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 98 SB 6 — 5 — 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. 98 — 6 — SB 6 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). 98 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. 98 — 10 — SB 6 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 — 14 — SB 6 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. 98 SB 6 — 19 — 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 98 — 20 — SB 6 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 98 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: 98 — 22 — SB 6 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 98 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 98 — 24 — SB 6 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 98 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: 98 — 26 — SB 6 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: 98 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 98 — 28 — SB 6 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 98 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. 98 — 30 — SB 6 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. 98 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 98 — 32 — SB 6 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 98 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: 98 — 34 — SB 6 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. 98 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 98 — 36 — SB 6 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 98 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 98 — 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.​ 98 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. 98 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. 98 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. 98 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. 98 — 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 98 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 98 — 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 98 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 98 — 14 — SB 7 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 98 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: 98 — 16 — SB 7 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. 98 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. 98 — 18 — SB 7 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 98 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 98 — 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: 98 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. 98 — 2 — SB 15 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 98 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, 98 — 4 — SB 15 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 98 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 98 — 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 98 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. 98 — 8 — SB 15 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 98 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. 98 — 2 — SB 44 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. 98 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. O 98 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. O 99 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 99 — 2 — AB 59 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. 99 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. 99 — 4 — AB 59 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), 99 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 99 — 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. 99 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 99 — 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, 99 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. 99 — 10 — AB 59 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) 99 AB 59 — 11 — 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. O 99 — 12 — AB 59 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. 99 — 2 — AB 115 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: 99 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 99 — 4 — AB 115 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, 98 — 2 — AB 377 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 98 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. 98 — 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 98 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 98 — 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, 98 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 98 — 8 — AB 377 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 98 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. 98 — 10 — AB 377 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 98 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 98 — 12 — AB 377 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 99 — 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 99 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. 99 — 4 — AB 988 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 99 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 99 — 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: 99 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 99 — 8 — AB 988 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. 99 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 99 — 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 99 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. 99 — 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 99 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. 99 — 14 — AB 988 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. 99 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 99 — 16 — AB 988 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 99 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 99 — 18 — AB 988 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, 99 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. 99 — 20 — AB 988 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: 99 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 99 — 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: 99 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. 99 — 24 — AB 988 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, 99 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). 99 — 26 — AB 988 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 99 AB 988 — 27 — 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 99 — 28 — AB 988 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. 99 AB 988 — 29 — 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) 99 — 30 — AB 988 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. 99 AB 988 — 31 — 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. 99 — 32 — AB 988 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 99 AB 988 — 33 —