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HomeMy WebLinkAbout042622 - 03.1 LEGISLATIVE COMMITTEE MEMORANDUM 3.1 TO: Mayor and Town Council April 26, 2022 SUBJECT: April Legislative Report BACKGROUND The 2022 legislative session continues with the first round of policy committee hearings. These hearings serve as an important benchmark for determining which proposed bills will move forward through the legislative process and which will be amended or fail to progress. March 25 marked the last day for legislators to submit substantive bill changes to legislative counsel. Legislators are also working to wrap up urgent bill matters, including extending the COVID-19 eviction moratorium to June 30, 2022, and releasing implementation language for both the CARE Court legislation and Assembly Bill 1616. AB 1616 is a gas relief proposal to provide all California taxpayers with a one-time $400 rebate to every taxpayer—one of four competing relief proposals introduced this year. Both individually and through the Tri-Valley Cities coalition, Danville officials continue to adapt to the social and economic changes resulting from the COVID-19 pandemic and subsequent variants. The immediate focus of the Town’s advocacy work has been to support legislative efforts that help the town recover from the COVID-19 pandemic and limit new legislation that impacts local control and adds unfunded mandates to the Towns already depleted workforce. DISCUSSION The Town’s Legislative Committee follows legislation that is identified as a priority through the Tri-Valley Cities coalition and by the Danville Town Council based upon the Town’s legislative framework. The Tri-Valley Cities Legislative Framework identifies six focus areas for the 2022 State Legislative session including: Transportation, Climate and Environment, Affordable Housing, Mental Health, Economic Development and Fiscal Sustainability. The bills and positions that are a priority for the Tri-Valley coalition are discussed in the second half of this report. April Legislative Update 2 April 26, 2022 The Town has identified and is tracking the following bills that impact Danville. AB 1551 (Santiago) Planning and zoning: development bonuses: mixed-use projects This bill would reenact current provisions regarding the granting of development bonuses to certain projects and would require a city or county to annually submit to the Department of Housing and Community Development information describing an approved commercial development bonus. (Housing) AB 1771 (Ward) The California Housing Speculation Act: income taxes: capital gains: sales or exchange of qualified asset: housing This bill would, for taxable years beginning on or after January 1, 2023, impose an additional 25% tax on that portion of a qualified taxpayer’s net capital gain from the sale or exchange of a qualified asset, as defined. These taxes would be reduced depending on how many years has passed since the qualified taxpayer’s initial purchase of the qualified asset. The bill would create the Speculation Recapture Community Reinvestment Fund and would deposit the revenues received as a result of this increase in tax in the fund. (Housing) AB 2053 (Lee) The Social Housing Act This measure would enact the Social Housing Act and would create the California Housing Authority, as an independent state body, the mission of which would be to produce and acquire social housing developments for the purpose of eliminating the gap between housing production and regional housing needs assessment targets. (Housing) AB 2170 (Grayson) Residential real property: foreclosure sales. This bill would prescribe requirements that would apply to sales of real property containing one to 4 residential dwelling units, that a federal government-sponsored enterprise, acquires by foreclosure. An enterprise would be required, during the first 30 days that a property is listed, to consider only purchase offers from prospective owner- occupants and eligible bidders, consistent with the federal First Look Program of the enterprise. Investor purchasers would be authorized to submit offers, however through the bill consideration of the offers would be prohibited until the 30-day period has expired. (Housing) AB 2234 (Rivas) Planning and zoning: housing: post-entitlement phase permits This bill would require a public agency to compile a list of information needed to approve or deny a post entitlement phase permit, to post an example of an ideal application and an example of an ideal complete set of post entitlement phase permits for the most common housing development projects in the jurisdiction, and to make those items available to all applicants for these permits no later than January 1, 2024. (Housing) AB 2295 (Bloom) Local educational agencies: housing development projects. Provides that a housing development project must be deemed an authorized use on any April Legislative Update 3 April 26, 2022 real property owned by a local educational agency (LEA) if it meets specified affordability criteria and planning standards. (Housing) AB 2328 (Flora) Local ordinances: home experience: sharing. This bill would prohibit a city or county from prohibiting the use of property as a home experience sharing unit, defined as a privately owned, noncommercial property or residential dwelling unit that is rented partially for a fee for a period of fewer than 18 continuous hours and that does not provide sleeping accommodation to transients. A city or county would be authorized to reasonably regulate home experience sharing units to protect the public’s health and safety, as specified. (Housing) AB 2428 (Ramos) Mitigation Fee Act: fees for improvements: timeline for expenditure This bill would require a local agency that requires a qualified applicant, to deposit development fees for improvements, into an escrow account as a condition for receiving a conditional use permit or equivalent development permit to expend the fees within 5 years of the deposit. The bill would require any fees not expended within this period to be returned to the qualified applicant. (Housing) AB 2631 (O’Donnell) Government Claims Act The Government Claims Act establishes the liability and immunity of a public entity for its acts or omissions that cause harm to persons. This bill would provide that a public entity is liable for injury relating to the effects of that public entity’s homelessness policies on another public entity. (Government Code) SB 379 (Wiener) Residential solar energy systems: permitting. This bill would require every city and county to implement an online, automated permitting platform that verifies code compliance and issues permits in real time for a solar energy system, as defined, that is no larger than 38.4 kilowatts alternating current nameplate rating and an energy storage system, as defined, paired with a solar energy system that is no larger than 38.4 kilowatts alternating current nameplate rating. Additionally, a city or county would be required to amend a certain ordinance to authorize a solar energy system and an energy storage system to use the online, automated permitting platform. (Climate/Environment) SB 897 (Wieckowski) Accessory dwelling units: junior accessory dwelling units This bill would change the height limitation applicable to an accessory dwelling unit subject to ministerial approval to 25 feet. If an existing multifamily dwelling exceeds a height of 25 feet or has a rear or side setback of less than 4 feet, would prohibit a local agency from requiring any modification to the existing multifamily dwelling to satisfy these requirements. (Housing) April Legislative Update 4 April 26, 2022 SB 1338 (Umberg) Community Assistance, Recovery, and Empowerment (CARE) Court Program. This bill would enact the Community Assistance, Recovery, and Empowerment (CARE) Act, which would authorize specified people to petition a civil court to create a CARE plan and implement services, to be provided by county behavioral health agencies, to provide behavioral health care, stabilization medication, and housing support to adults who are suffering from schizophrenia spectrum and psychotic disorders and who lack medical decision-making capacity. (Mental Health) Tri-Valley Cities Coalition At the March 21 Tri-Valley Cities meeting, that included the Mayors, City Managers and Staff Liaisons, the coalition discussed bills which could potentially impact the region. As a result of that discussion, the following bills and positions were identified as legislation to track during the 2022 session. AB 988: (Bauer-Kahan) Mental Health: mobile crisis support teams: 988 crisis hotline This bill would require the Office of Emergency Services to take actions to implement the hotline system, designating a 988-crisis hotline center or centers to provide crisis intervention services and crisis care coordination to individuals accessing the 9-8-8 hotline. The Town supported this bill during the 2021 session. (Mental Health) TVC position: Support AB 1512: (Bauer-Kahan) Off-highway vehicular recreation: Carnegie State Vehicular Recreation Area: Alameda-Tesla Expansion Area This bill would require the department to preserve in perpetuity, land known as the "Alameda-Tesla Expansion Area," which is currently part of the Carnegie State Vehicular Recreation Area, for conservation purposes, including for nonmotorized public recreation. This is a 2-year bill that the TVC coalition supported last year. (Climate/Environment) TVC position: Support AB 1737: (Holden) Children’s Camps: local registration and inspections This bill would make organized camps minimum standard provisions established by the State Public Health Department, State Fire Marshal, and local health officer, applicable to "children’s camps" and would define "children’s camp" as a camp that offers daytime or overnight experiences administered by professional adults who provide social, cultural, educational, recreational, or artistic programming to more than 5 children between 3 and 17 years of age for 5 days or longer during at least one season, except as specified. (Fiscal Sustainability) TVC position: Oppose Unless Amended April Legislative Update 5 April 26, 2022 AB 1814: (Grayson) Transportation Electrification: Community Choice Aggregators This bill would, as part of a Public Utilities Commission’s program, authorize community choice aggregators to file applications for programs and investments to accelerate widespread transportation electrification. (Transportation) TVC position: Support AB 1988: (Bauer-Kahan) 9-8-8 Mental Health Crisis Hotline System This bill provides that the hotline may be referred to as the Miles Hall Mental Health and Suicide Prevention Lifeline and provides that the Office of Emergency Services (CalOES) shall administer the system components of the 9-8-8 system. (Mental Health) TVC position: Support AB 2063: (Berman) Density bonuses: affordable housing impact fees This bill would prohibit affordable housing impact fees, including inclusionary zoning fees, in-lieu fees, and public benefit fees, from being imposed on a housing development’s density bonus units. (Affordable Housing) TVC position: Oppose with comments AB 2179: (Grayson) Development fees and charges: deferrals This bill was gutted and amended by the author to address COVID-19 tenancy relief, and therefore removed from the TVC list. (Fiscal Sustainability) AB 2374: (Bauer-Kahan) Crimes against public health and safety: illegal dumping This bill would increase the maximum fine for the dumping of commercial quantities of waste to $5000 for the first conviction, $10,000 for the second conviction, and up to $20,000 for the third and any subsequent convictions. (Climate/Environment) TVC position: Support SB 45: (Portantino) Short-lived climate pollutants: organic waste reduction goals: local jurisdiction assistance This bill would require the Department of Resource Recycling and Recovery, in consultation with the state board, to provide assistance to local jurisdictions, including, but not limited to, any funding appropriated by the Legislature for purposes of assisting local agencies to comply with Short Lived Climate Pollutant goals. (Climate/Environment) TVC position: Support April Legislative Update 6 April 26, 2022 SB 490: (Caballero) Housing acquisition and rehabilitation: technical assistance This bill would, upon appropriation by the Legislature, establish the Housing Acquisition and Rehabilitation Technical Assistance Program, with the purpose of providing technical assistance to qualified entities engaged in acquisition-rehabilitation projects. An “acquisition-rehabilitation project” is defined as a project to acquire and preserve unsubsidized housing units and attaching long-term affordability restrictions on the housing units. (Affordable Housing) TVC position: Support SB 852: (Dodd) Climate resilience districts: formation: funding mechanisms This bill would authorize a city, county, special district, or a combination of any of those entities to form a climate resilience district for the purposes of raising and allocating funding for eligible projects and the operating expenses of eligible projects. (Climate/Environment) TVC position: Support SB 1466: (Stern) Affordable Housing and Community Development Investment Program This bill would authorize a city, county, joint powers agency, enhanced infrastructure financing district, affordable housing authority, community revitalization and investment authority, transit village development district, or a combination of those entities, to apply to the Affordable Housing and Community Development Investment Committee to participate in the program and would authorize the committee to approve or deny plans for projects meeting specific criteria. (Affordable Housing) TVC position: Support Grants Program The Town submitted federal funding requests to the offices of Senator Dianne Feinstein and Congressman Mark DeSaulnier in the amount of $500,000 for the Fiber Optic Cable Interconnect Project, which is project A – 620 in the Town’s Capital Improvement Program. State budget requests were submitted to the offices of Assemblymember Rebecca Bauer Kahanand Senator Steve Glazer. to fund two projects: $500,000 for the Fiber Optic Cable Interconnect Project and $700,000 for the La Gonda Bridge Replacement, which is project C-599 in the Town’s Capital Improvement Program. April Legislative Update 7 April 26, 2022 Conclusion Accept the report and direct any questions and/or direction to Town legislative staff. Prepared by: Diane J. Friedmann Deputy Town Manager Cat Bravo Administrative Analyst Reviewed by: Joseph Calabrigo Town Manager Attachment A – Bill Summary and Analysis Packet Attachment B – TVC Letter of Support for Federal Funding Attachment C – TVC Letter of Oppose Unless Amended AB 1737 Attachment D - TVC Letter of Oppose with Comments AB 2063 Attachment E – TVC Letter of Support AB 2374 Attachment F – Danville Letter of Support AB 1814 Attachment G – TVC Letter of Support for 9-8-8 Crisis Hotline Funding Attachment H – Danville Letter of Support Valley Car Level II Trauma Center Funding AB 1551 Page 1 Date of Hearing: January 20, 2022 ASSEMBLY COMMITTEE ON APPROPRIATIONS Chris Holden, Chair AB 1551 (Santiago) – As Amended January 13, 2022 Policy Committee: Housing and Community Development Vote: 7 - 0 Local Government 8 - 0 Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY: This bill, until January 1, 2028, reinstates in its entirety the commercial development (density) bonus program for commercial properties that expired on January 1, 2022. Specifically, this bill: 1)Requires, when a commercial development agrees to partner with an affordable housing developer to construct a mixed-use project with housing located onsite, a local government, in addition to granting incentives and concessions under state Density Bonus Law (DBL), also grant the commercial developer exceptions resulting in significant costs reductions over the maximum allowable intensity in the general plan, zoning ordinance or regulation, including, but not limited to, floor area ratios and may include modification to development standards, such as height and parking requirements. 2)Contains a five-year sunset date of January 1, 2028. 3)Declares the development of affordable housing a matter of statewide concern and not a municipal affair, and therefore, this bill applies to all cities, including charter cities. FISCAL EFFECT: 1)The Department of Housing and Community Development (HCD) anticipates minor and absorbable costs. 2)Local costs are not reimbursable by the state because local agencies have general authority to charge and adjust planning fees to cover their related costs. COMMENTS: 1)Purpose. This bill seeks to reinstate the commercial development bonus program that expired on January 1, 2022. Although the law was rarely used, the author believes reinstating the program will create more opportunities to build affordable housing. 2)Background. In 1979, the Legislature enacted DBL to help address the affordable housing shortage and to encourage development of more low- and moderate-income housing units. Density bonus is a tool used by both market-rate and affordable housing developers to encourage the production of affordable housing. In return for inclusion of affordable units in a development, developers are given an increase in density over a city's zoned density and concessions and incentives in order to offset the cost of the affordable units which will be offered at lower rent. Developers that seek a density bonus must agree to restrict very low- ATTACHMENT A AB 1551 Page 2 and low-income rental units to affordable levels for 55 years. Based on annual production reports local governments submit to the HCD, from 2018 through 2020, the density bonus program provided 880 units per year for lower-income households. 3)Commercial Development Bonus Law. AB 1934 (Santiago), Chapter 747, Statutes of 2016, created a commercial “development bonus” modeled after DBL by similarly granting a number of incentives (including an increase in density) to a commercial developer that facilitates the creation of affordable housing units. However, unlike DBL, AB 1934 did not provide a specified formula regarding the benefits conferred upon the developer in return for provision of affordable housing. Nor did it require the local government to provide clear guidance on the concessions and incentives available to the developer. Instead, the program relied on the commercial developer, residential developer and local jurisdiction to come to mutual agreement on most of the details of the incentives, including the amount and type of bonus received and the amount and income levels of affordable housing developed. It did, however, require the commercial developer to partner with a housing developer that provides at least 30% of the total units for low-income households or at least 15% of the total units for very low-income households. The commercial development bonus program created by AB 1934 expired on January 1, 2022. AB 1934 required local governments report use of this program to HCD as part of their annual progress reports. Data provided by HCD revealed only five units of affordable housing were created due to the program across three projects. This bill reinstates the commercial development bonus program created by AB 1934. Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081 AMENDED IN ASSEMBLY MARCH 22, 2022 AMENDED IN ASSEMBLY MARCH 7, 2022 california legislature—2021–22 regular session ASSEMBLY BILL No. 1771 Introduced by Assembly Member Ward (Coauthor: Assembly Member Mullin) February 2, 2022 An act to amend Sections 19602 and 19604 of, to add Article 1 (commencing with Section 18200) to Chapter 14 of Part 10 of Division 2 of, to add Article 1.5 (commencing with Section 19609) to Chapter 8 of Part 10.2 of Division 2 of, and to add Article 6 (commencing with Section 25000) to Chapter 15 of Part 11 of Division 2 of, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. legislative counsel’s digest AB 1771, as amended, Ward. The California Housing Speculation Act: income taxes: capital gains: sale or exchange of qualified asset: housing. The Personal Income Tax Law and Corporation Tax Law impose taxes upon income, including income generated from any gain from the sale or exchange of a capital asset. This bill would, for taxable years beginning on or after January 1, 2023, impose an additional 25% tax on that portion of a qualified taxpayer’s net capital gain from the sale or exchange of a qualified asset, as defined. The bill would reduce those taxes depending on how many years has passed since the qualified taxpayer’s initial purchase of the qualified asset. The bill would create the Speculation Recapture 97 Community Reinvestment Fund and would deposit the revenues received as a result of this increase in tax in the fund. The bill would require the Franchise Tax Board, upon appropriation by the Legislature, to allocate moneys in the fund, as described. This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 2⁄3 of the membership of each house of the Legislature. This bill would take effect immediately as a tax levy. Vote: 2⁄3. 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. This act shall be known, and may be cited, as line 2 The California Housing Speculation Act. line 3 SEC. 2. The Legislature finds and declares all of the following: line 4 (a)  According to the California Association of Realtors’ line 5 quarterly index, California’s median price for a single-family home line 6 increased 17 percent to $814,580 in the third quarter of 2021 while line 7 near-record lows of 42 percent of Californians could meet line 8 home-buying qualification standards. Further, prices of line 9 condominiums and townhomes are at an all-time high, reaching line 10 an average of $620,000 in November 2021 or 19.2 percent over line 11 12 months. line 12 (b)  During the same period, market analysis estimates that line 13 investor-buyers represented approximately 51 percent growth of line 14 sales year over year from 2020 to 2021 of sales in southern line 15 California alone, compared to a national average of 18 percent. line 16 (c)  The share of total sales of investor-buyers has increased line 17 significantly in recent years in the state and across the nation. line 18 Investor-buyer interest is not limited to recent years. Increased line 19 interest was present in 2006 to 2008, ahead of the market collapse, line 20 which decimated home equity and public revenue, and during other line 21 periods in market cycles over recent decades. line 22 (d)  Individual homebuyers find it increasingly difficult to obtain line 23 a home because cash-rich investor-buyers have added additional line 24 demand for housing, even as supply has remained the same, causing line 25 home prices to skyrocket. Additionally, direct competition from line 26 investor-buyers, often presenting cash-only offers or higher offers, 97 — 2 — AB 1771 line 1 is further shutting out opportunity for middle- and lower-income line 2 Californians to buy a home. line 3 (e)  The Legislature has enacted housing policies to increase the line 4 supply of housing and extend affordability. The Legislature has line 5 further prioritized subsidies to produce more affordable housing. line 6 Increasing the supply of housing is certainly extremely important, line 7 but may fall short of the total scale of solutions needed to address line 8 both the decades-long deficit in housing supply needed, and the line 9 continuing increases in housing prices. line 10 (f)  Short-term speculative transactions, allowed unchecked, line 11 contribute significantly to higher housing costs for all and has line 12 negative social and economic consequences. A reasonable control line 13 mechanism should be enacted to discourage real estate as a line 14 short-term equity gain mechanism by capturing excessive property line 15 value increases, thereby increasing the risk to investors and line 16 redirecting their interest from investing in real estate to investments line 17 in other assets. Funds generated through this equity recapture line 18 should be directed to local governments, schools, and affordable line 19 housing purposes for general benefit to offset the negative line 20 consequences of short-term speculation. line 21 SEC. 3. Article 1 (commencing with Section 18200) is added line 22 to Chapter 14 of Part 10 of Division 2 of the Revenue and Taxation line 23 Code, to read: line 24 line 25 Article 1. Capital Gains Tax for Housing line 26 line 27 18200. (a)  (1)  For each taxable year beginning on or after line 28 January 1, 2023, in addition to any other tax imposed by this part, line 29 an additional tax shall be imposed at the rate of 25 percent, and as line 30 modified pursuant to paragraph (2), on that portion of a qualified line 31 taxpayer’s net capital gain generated as a result of the sale or line 32 exchange of a qualified asset. line 33 (2)  The 25-percent tax described in paragraph (1) shall be line 34 reduced as follows: line 35 (A)  The tax shall be reduced by 20 percent if the sale or line 36 exchange of the qualified asset occurred 3.01 to 4 years, inclusive, line 37 after the qualified taxpayer’s initial purchase of the qualified asset. line 38 (B)  The tax shall be reduced by 40 percent if the sale or line 39 exchange of the qualified asset occurred 4.01 to 5 years, inclusive, line 40 after the qualified taxpayer’s initial purchase of the qualified asset. 97 AB 1771 — 3 — line 1 (C)  The tax shall be reduced by 60 percent if the sale or line 2 exchange of the qualified asset occurred 5.01 to 6 years, inclusive, line 3 after the qualified taxpayer’s initial purchase of the qualified asset. line 4 (D)  The tax shall be reduced by 80 percent if the sale or line 5 exchange of the qualified asset occurred 6.01 to 7 years, inclusive, line 6 after the qualified taxpayer’s initial purchase of the qualified asset. line 7 (E)  The tax shall be reduced by 100 percent if the sale or line 8 exchange of the qualified asset occurred more than seven years line 9 after the qualified taxpayer’s initial purchase of the qualified asset. line 10 (3)  For purposes of applying Part 10.2 (commencing with line 11 Section 18401), the tax imposed under this section shall be treated line 12 as if imposed under Section 17041. line 13 (b)  For purposes of this section: line 14 (1)  “Qualified asset” means any real property other than any of line 15 the following: line 16 (A)  (i)  Real property that meets all of the following line 17 requirements: line 18 (I)  The real property is composed of multiple units. line 19 (II)  The real property is restricted, by deed, to require that at line 20 least 15 percent of residential units on the property are affordable line 21 housing. line 22 (III)  The deed restriction described in subclause (II) was line 23 recorded against the property within three years of the sale or line 24 exchange of the property. line 25 (ii)  The exemption for the real property described in clause (i) line 26 only applies to the first sale or exchange of that property by any line 27 person. line 28 (B)  Real property that is part of subdivided or lot split property line 29 for which the qualified taxpayer is also the recorded owner, if the line 30 other portions of the subdivided or lot split property have not been line 31 sold. line 32 (C)  Any real property that is designated or dedicated open space. line 33 (D)  Any real property that is not suitable for residential use or line 34 not permitted for residential or mixed-development with residential line 35 use under local or state law. line 36 (E)  Any real property for which any property transfer taxes do line 37 not apply. line 38 (F)  Real property that is restricted, by deed, to require that the line 39 property remain affordable. 97 — 4 — AB 1771 line 1 (G)  Any residential real property that meets both of the line 2 following requirements: line 3 (i)  The property is the first residential real property that the line 4 qualified taxpayer has owned. line 5 (ii)  The qualified taxpayer has used the property as their primary line 6 residence since their initial purchase of the property. line 7 (H)  Any residential real property occupied by the qualified line 8 taxpayer as their principal place of residence and that is eligible line 9 for a homeowners’ property tax exemption pursuant to subdivision line 10 (k) of Section 3 of Article XIII of the California Constitution and line 11 Section 218. line 12 (2)  “Qualified taxpayer” shall not include either of the following: line 13 (A)  Any active duty military personnel. line 14 (B)  A decedent. line 15 (c)  All moneys and remittances received by the Franchise Tax line 16 Board as amounts imposed under this section, and related penalties, line 17 additions to tax, and interest imposed under this part, shall be line 18 deposited, after clearance of remittances, in the Speculation line 19 Recapture Community Reinvestment Fund. line 20 SEC. 4. Section 19602 of the Revenue and Taxation Code is line 21 amended to read: line 22 19602. Except for amounts collected or accrued under Sections line 23 17935, 17941, 17948, 19532, and 19561, and revenues deposited line 24 pursuant to Sections 18200 and 19602.5, all moneys and line 25 remittances received by the Franchise Tax Board as amounts line 26 imposed under Part 10 (commencing with Section 17001), and line 27 related penalties, additions to tax, and interest imposed under this line 28 part, shall be deposited, after clearance of remittances, in the State line 29 Treasury and credited to the Personal Income Tax Fund. line 30 SEC. 5. Section 19604 of the Revenue and Taxation Code is line 31 amended to read: line 32 19604. (a)  Except for fees received for services under Section line 33 23305e, and revenues deposited pursuant to Section 25000, all line 34 moneys and remittances received by the Franchise Tax Board as line 35 amounts imposed under Part 11 (commencing with Section 23001), line 36 and related penalties, additions to tax, fees, and interest imposed line 37 under this part, shall be deposited in a special fund in the State line 38 Treasury, to be designated the Corporation Tax Fund. The moneys line 39 in the fund shall, upon the order of the Controller, be drawn line 40 therefrom for the purpose of making refunds under this part or be 97 AB 1771 — 5 — line 1 transferred into the General Fund. All undelivered refund warrants line 2 shall be redeposited into the Corporation Tax Fund upon receipt line 3 by the Controller. Fees received for services under Section 23305e line 4 shall be treated as reimbursement of the Franchise Tax Board’s line 5 costs and shall be deposited into the General Fund. line 6 (b)  Notwithstanding Section 13340 of the Government Code, line 7 all moneys in the Corporation Tax Fund are hereby continuously line 8 appropriated, without regard to fiscal year, to the Franchise Tax line 9 Board for purposes of making all payments as provided in this line 10 section. line 11 SEC. 6. Article 1.5 (commencing with Section 19609) is added line 12 to Chapter 8 of Part 10.2 of Division 2 of the Revenue and Taxation line 13 Code, to read: line 14 line 15 Article 1.5. Speculation Recapture Community Reinvestment line 16 Fund line 17 line 18 19609. (a)  There is hereby created in the State Treasury the line 19 Speculation Recapture Community Reinvestment Fund for the line 20 purpose of allocating moneys deposited pursuant to Article 1 line 21 (commencing with Section 18200) of Chapter 14 of Part 10 and line 22 Article 6 (commencing with Section 25000) of Chapter 15 of Part line 23 11. line 24 (b)  Upon appropriation by the Legislature, the Franchise Tax line 25 Board shall allocate moneys in the fund as follows: line 26 (1)  At least 30 percent shall be allocated to counties to be used line 27 to create affordable housing in the county. line 28 (2)  Twenty percent shall be allocated to school districts to be line 29 used for general purposes. line 30 (3)  Forty percent shall be allocated to cities, or counties if the line 31 qualified asset is located in an unincorporated area, to be used for line 32 general infrastructure, transit or active transportation projects, or line 33 community facilities. line 34 (4)  Up to 10 percent shall be allocated to the Franchise Tax line 35 Board to administer this article. Any remaining moneys under this line 36 paragraph shall be allocated to counties, as specified in paragraph line 37 (1). line 38 (c)  Allocations to counties, cities, and school districts under line 39 subdivision (b) shall be made in proportion to the percentage of line 40 moneys in the fund that are associated with the sale of the qualified 97 — 6 — AB 1771 line 1 asset within the jurisdiction of the county, city, or school district, line 2 as applicable. line 3 SEC. 7. Article 6 (commencing with Section 25000) is added line 4 to Chapter 15 of Part 11 of Division 2 of the Revenue and Taxation line 5 Code, to read: line 6 line 7 Article 6. Capital Gains Tax for Housing line 8 line 9 25000. (a)  (1)  For each taxable year beginning on or after line 10 January 1, 2023, in addition to any other tax imposed by this part, line 11 an additional tax shall be imposed at the rate of 25 percent, and as line 12 modified pursuant to paragraph (2), on that portion of a qualified line 13 taxpayer’s net capital gain generated as a result of the sale or line 14 exchange of a qualified asset. line 15 (2)  The 25-percent tax described in paragraph (1) shall be line 16 reduced as follows: line 17 (A)  The tax shall be reduced by 20 percent if the sale or line 18 exchange of the qualified asset occurred 3.01 to 4 years, inclusive, line 19 after the qualified taxpayer’s initial purchase of the qualified asset. line 20 (B)  The tax shall be reduced by 40 percent if the sale or line 21 exchange of the qualified asset occurred 4.01 to 5 years, inclusive, line 22 after the qualified taxpayer’s initial purchase of the qualified asset. line 23 (C)  The tax shall be reduced by 60 percent if the sale or line 24 exchange of the qualified asset occurred 5.01 to 6 years, inclusive, line 25 after the qualified taxpayer’s initial purchase of the qualified asset. line 26 (D)  The tax shall be reduced by 80 percent if the sale or line 27 exchange of the qualified asset occurred 6.01 to 7 years, inclusive, line 28 after the qualified taxpayer’s initial purchase of the qualified asset. line 29 (E)  The tax shall be reduced by 100 percent if the sale or line 30 exchange of the qualified asset occurred more than seven years line 31 after the qualified taxpayer’s initial purchase of the qualified asset. line 32 (3)  For purposes of applying Part 10.2 (commencing with line 33 Section 18401), the tax imposed under this section shall be treated line 34 as if imposed under Section 23151. line 35 (b)  For purposes of this section: line 36 (1)  “Qualified asset” means any real property other than any of line 37 the following: line 38 (A)  (i)  Real property that meets all of the following line 39 requirements: line 40 (I)  The real property is composed of multiple units. 97 AB 1771 — 7 — line 1 (II)  The real property is restricted, by deed, to require that at line 2 least 15 percent of residential units on the property are affordable line 3 housing. line 4 (III)  The deed restriction described in subclause (II) was line 5 recorded against the property within three years of the sale or line 6 exchange of the property. line 7 (ii)  The exemption for the real property described in clause (i) line 8 only applies to the first sale or exchange of that property by any line 9 person. line 10 (B)  Real property that is part of subdivided or lot split property line 11 for which the qualified taxpayer is also the recorded owner, if the line 12 other portions of the subdivided or lot split property have not been line 13 sold. line 14 (C)  Any real property that is designated or dedicated open space. line 15 (D)  Any real property that is not suitable for residential use or line 16 not permitted for residential or mixed-development with residential line 17 use under local or state law. line 18 (E)  Any real property for which any property transfer taxes do line 19 not apply. line 20 (F)  Real property that is restricted, by deed, to require that the line 21 property remain affordable. line 22 (2)  “Qualified taxpayer” shall not include active duty military line 23 personnel. line 24 (c)  All moneys and remittances received by the Franchise Tax line 25 Board as amounts imposed under this section, and related penalties, line 26 additions to tax, and interest imposed under this part, shall be line 27 deposited, after clearance of remittances, in the Speculation line 28 Recapture Community Reinvestment Fund. line 29 SEC. 8. This act provides for a tax levy within the meaning of line 30 Article IV of the California Constitution and shall go into line 31 immediate effect. O 97 — 8 — AB 1771 AB 2053 Page 1 Date of Hearing: April 20, 2022 ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT Buffy Wicks, Chair AB 2053 (Lee) – As Amended April 6, 2022 SUBJECT: The Social Housing Act SUMMARY: Establishes the California Housing Authority (CHA) for the purposes of developing mixed-income social housing. Specifically, this bill: 1) Creates the CHA as an independent state entity with the mission of producing and acquiring social housing for all California residents, eliminating the gap between housing production and regional housing needs assessment targets, and preserving affordable housing. 2) Defines “social housing” to mean housing with the following characteristics: a) Units owned by the CHA, a public entity, a housing authority, or a mission-driven not-for-profit private entity; b) All social housing developed by the authority shall be owned by the authority; c) If a housing unit is in a social housing development, the development contains housing units that accommodate a specified mix of household income ranges; d) Units that are owned and managed by a mission-driven not-for-profit private entity shall have units that are permanently restricted by deed to be affordable; e) Residents of CHA units are given, at a minimum, all protections granted to tenants in private property, as specified, but may be evicted for breaking community standards and for non-payment of rent last more than one month; f) The housing units shall be protected for the duration of their useful life from being sold or transferred to a private for-profit entity or a public-private partnership; and g) Residents of the housing units have the right to participate directly and meaningfully in decision making affecting the operation and management of their housing units. 3) Defines the following terms: a) “Skilled and trained workforce” has the meaning provided in Section 2601 of the Public Contract Code; b) “Prevailing wage rates” means the general prevailing rate of per diem wages for the craft, classification, or type of work within the locality and in the nearest labor market area, as defined, and the applicable prevailing apprentice wage r ate; c) “Community workforce agreement” means a project labor agreement, as specified, that provides opportunities for local and disadvantaged workers and contractors; AB 2053 Page 2 d) “Revenue neutrality” means a system in which all monetary expenditures that result from t he development and operation of CHA units are returned through rents, payments on leasehold mortgages, or other specified subsidies; e) “Rent and mortgage cross-subsidization” means a system in which the below-cost rents and leasehold mortgages of certain units are balanced by above-cost payments on others within the same multiunit property; f) “Limited equity arrangement” means an ownership model in which residents are extended a long-term lease, take out a subsidized leasehold mortgage from the CHA, make mo nthly mortgage payments, and commit to resell at a price designed to balance ongoing affordability and resident wealth generation; g) “Regional housing needs assessment” or “RHNA” means a representation of housing needs for all income levels as specified; h) “Underutilized parcel” means a parcel of property which contains fewer units than the maximum number of units permissible under local zoning regulations; i) “Multifamily property” means a revenue-neutral collection of units featuring units dedicated to a range of affordability levels from extremely low-income to above- moderate income. It may be a single building, multiple buildings on the same or adjacent parcels, or multiple buildings across several blocks within a single jurisdiction, or may be defined by the CHA; and j) “Board” means the CHA Board. 4) Specifies income definitions for the following categories, consistent with existing law: extremely low income, very low income, low income, moderate income, and above -moderate income. 5) Provides that CHA has various powers, including the ability to : a) Sue and be sued; b) Have a seal and alter the same at its pleasure; c) Make and execute contracts and other instruments; d) Make rules with respect to its projects, operations, properties, and facilities; e) Through its executive officer, appoint specified personnel and set various policies; f) Acquire, through specified mechanisms and purchase real, personal, or mixed property or any interest therein and own, hold, clear, improve, rehabilitate, sell, assign, exchange, transfer, convey, lease, or otherwise dispose of it ; AB 2053 Page 3 g) By itself, or in partnership with others, undertake specified activities to construct, improve, alter, and repair any project; h) Arrange or contract for the planning, replanning, opening, grading, or closing of streets, roads, roadways, alleys, or other places, or for the furnishing of facilities or for the acquisition of property or property rights, or for the furnishing of property or services in connection with a project; i) Grant options to purchase any project or to renew any lease as specified; j) Prepare, cause to be prepared, and modify project plans, specifications, designs, and estimates of certain costs for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project; k) Enter into community workforce and project labor agreements; l) Provide advisory, consultative, training, and educational ser vices, technical assistance, and related work as specified ; m) Contract for and accept funding from any public or pr ivate agency or other source; n) Employ technical experts and officers, agents, and employees, permanent or temporary, as required; o) Call upon the Attorney General for legal services as it may require; and p) Contract with property managers which meet specified criteria. 6) Requires the CHA to submit an annual business plan to the Governor and the Legislature which must be made available for public comment at least 60 days before publication. 7) Specifies that the CHA board will consist of nine members who will elect a chair and make decisions by majority vote. The board membership will be as follows: a) An expert in housing development and finance; b) An expert in housing construction; c) An expert in property maintenance; d) An appointee of the Speaker of the Ass embly; e) An appointee of the Senate Committee on Rules; f) An appointee of the Governor; and g) Three representatives of CHA residents, to be appointed initially by specified entities. Following the occupancy of CHA units, resident representat ives are to be elected annually according to specified procedures. AB 2053 Page 4 8) Tasks the CHA board with the following duties: a) Establish a strategy to eliminate the gap between housing production and acquisition and regional housing needs assessment targets; set objective and performance targets to this goal; and monitor CHA’s success in achieving the targets; b) The ability to hire, fire, and monitor performance of an executive officer ; c) Approving the annual budget prepared by the executive officer; d) Integrating risk management into the authority’s strategic planning process and notify the Governor and the Legislature of specified risks facing CHA; e) Adopting and amend regulations, including on resident board elections; and f) Holding biannual meetings wit h resident governance councils. 9) Provides that each CHA-owned multifamily social housing development must form a governance council with specified powers and responsibilities. 10) Requires that the CHA be bound to revenue neutrality and must recuperate the cost of development and o perations over the life of its properties through rent cross-subsidization. 11) States that the CHA must prioritize development on vacant parcels, certain underutilized parcels with deed-restricted units, surplus public properties, and parcels near transit. 12) Specifies that if the development requires rehabilitation or demolition of covenanted affordable units, the new development must include a greater number of affordable units. 13) Requires that each multi-unit property must include a variety of mixed income units. 14) Provides that if the development of a property requires the removal of residents, the CHA must cover certain relocation costs and provide displaced residents with the rig ht to live in the new CHA property for their previously rent or an affordable rent, whichever is lower. 15) Specifies that the CHA will make an annual determination of the required amount of social housing units to be produced as follows: a) Annual regional housing needs assessment (RHNA) targets will be calculated as the total RHNA cycle targets for each jurisdiction divided by the length of the RHNA cycle; b) On or before January 1, 2027, and each year thereafter, the CHA will determine the gap between the previous year’s RHNA and actual housing construction; and c) Within a given year, the CHA can construct at least the number of units to meet the gap between the previous year’s construction of units and the RHNA targets. AB 2053 Page 5 16) Specifies that, in creating housing, the authority shall employ two different leasing models, the rent al model and the ownership model, as specified. 17) Provides that, under the CHA rental model, one-year leases will be used, barring extraordinary circumstances. 18) Puts forth the following requirements for CHA ownership units: a) The CHA will extend a 99-year limited equity arrangement lease to individuals who commit to five years of residence. After five years, residents can sell the unit, though the CHA will have first right of refusal to purchase. I f the CHA does not purchase then it may be sold to an eligible buyer subject to requirements established by the CHA authority which give the seller a reasonable return on investment; b) Upon the death of the owner, the unit may be transferred to the deceased’s heir by devise or as any ot her real property may pass. If a transferee is not eligible to be a resident, the transferee shall sell the unit to the authority; c) Rent payments will not be more than 30 percent of income and rent adjustments will be applied annually in a way that does not discourage increased earnings. If resident income changes, the property manager will rent to an appropriate income househo ld; d) Residents will pay a 15-percent down payment with the purchase price of the set to be affordable for the purchasing household; and e) Properties will be sold at the price for which the owner purchased the property, plus documented capital improvements, and adjusted for inflation. 19) Puts forth the following requirements for CHA residency and occupancy and specifies penalties for failure to abide by them: a) Unless an above-moderate income unit, it must be resident’s sole residence; b) Applicant must be living or working in California at the time of their application subject to specified rules; c) Allows an applicant with a prior criminal record to reside in CHA units unless there is evidence a clear and manifest danger to the development or its residents; d) Allows the CHA or the applicable governance council to allow subleasing of units; e) Permits a resident to terminate their residency due to specified reasons including job relocation, change in household structure, and serious illness; and f) Specifies that, with the exception of those displaced during construction, resident selection is by a lottery stratified by income category. 20) Provides that the CHA can conduct ground-up construction and rehabilitation of existing structures and may lease mixed-use space to small businesses and nonprofits. AB 2053 Page 6 21) Specifies that, when appropriate, the state can gift public lands to the CHA, though the CHA can also purchase land from other entities. 22) States that the CHA must accept a local government ’s preference on project location if certain conditions, including cost and community amenity access, are met. Also directs the CHA to seek input from the jurisdiction’s governing body related to specific site development, height, number of units, and development timeline. 23) Requires the following labor standards for production and rehabilitation of CHA developments: a) To the maximum extent feasible, the CHA must enter into community workforce agreements that apply to work it undertakes, assists, funds, and finances; b) The CHA must obtain an enforceable commitment from any entity undertaking work it assisted, funded, or financed that all contractors and subcontractors will employ a skilled and trained workforce to perform the work, as specified; and c) All work undertaken, assisted, funded, or financed by the CHA and performed by outside contractors is public work for which prevailing wages must be paid. 24) Specifies that CHA activities much be conducted according to revenue neutrality and further states that it is the intent of the Legislature to enact legislation to provide financing for the activities of the authority through the issuance of general obligations bonds. EXISTING LAW: 1) Specifies that a housing authority may engage in a number of activities in order to provide housing to low income individuals, including: a) Preparing, carrying out, acquiring, leasing and oper ating housing projects and developments for persons of low income; b) Providing for the construction, reconstruction, improvement, alteration, or repair of all or part of any housing project; c) Providing leased housing to persons of low income; and d) Offering counseling, referral, and advisory services to persons and families of low or moderate income in connection with the purchase, rental, occupancy, maintenance, or repair of housing. (Health and Safety Code Section 34312) 2) Requires each city and county to prepare, adopt, and administer a general plan for their jurisdiction, which must include a housing element, to shape the future growth of its community. (Government Code Sections 65300 - 65404) 3) Specifies that each community’s fair share of housing be deter mined through the regional housing needs allocation (RHNA) process, which involves three main stages: (a) the AB 2053 Page 7 Department of Finance and HCD develop regional housing needs estimates at four income levels: very low-income, low-income, moderate-income, and above moderate-income; (b) councils of government (COGs) use these estimates to allocate housing within each region (HCD is to make the determinations where a COG does not exist); and (c) cities and counties plan for accommodating these allocations in their housing elements. (Government Code Sections 65580 - 65589.11) 4) Establishes HCD oversight of the housing element process, including the following: a) Local governments must submit a draft of their housing element to HCD for review; b) HCD must review the draft housing element, and determine whether it substantially complies with housing element law, in addition to making other findings; c) Local governments must incorporate HCD feedback into their housing element; and d) HCD must review any action or failure to act by local governments that it deems to be inconsistent with an adopted housing element. HCD must notify any local government, and at its discretion the office of the Attorney General, if it finds that the jurisdiction has violated state law. (Government Co de Section 65585) 5) Requires each city and county to submit an Annual Progress Report (APR) to the Governor’s Office of Planning and Research (OPR) and HCD by April 1 of each year, including the following: a) The report must evaluate the general plan’s implementation, including the implementation of their housing element, and provide specified quantitative outcomes, such as number of applications for housing projects received and housing units approved; b) Authorizes a court to issue a judgement to compel compliance should a city or county fail to submit their APR within 60 days of the statutory deadline; and c) Requires HCD to post all city and county APRs on their website within a reasonable time after receipt. (Government Code Section 65400) FISCAL EFFECT: Unknown COMMENTS: Author’s statement: According to the author, “Housing is too expensive for millions of Californians, where more than two in five households spend over 30% of their income on housing, and more than one in five households spend over 50% of their income on housing. Over 97% of cities and counties haven’t produced enough affordable housing, and existing strategies to address the lack of affordable housing have not produced nearly enough to meet demand. Affordable housing relies on governme nt subsidies, and there is much more demand for them than supply. Social housing is an important tool to ensure housing is affordable to people of all income levels. Social housing is publicly backed, self-sustaining housing that accommodates a mix of household income ranges. Housing is protected from being sold to a private for -profit entity for AB 2053 Page 8 the duration of its life, and residents are granted the same protections as tenants in private property, if not more. Residents can participate in decision making that affects housing management, such as providing the resident perspective to property management or hosting meetings to gather feedback from residents. Many countries throughout the world have successful social housing programs, and in the US, there are social housing developments such as in Montgomery County, Maryland using a similar model. Social Housing is how we provide and realize housing as a human right.” Background on Social Housing: There is no widely shared consensus on how to define social housing. However, all definitions of social housing distinguish it in various ways from privately- owned, for-profit housing provided through market mechanisms. The Assembly Select Committee on Social Housing held an informational hearing on Octo ber 20, 2021 and Rob Weiner from the California Coalition for Rural Housing shared the Organization for Economic Cooperation and Development (OECD) definition of social housing as: “the stock of residential rental accommodations provided at sub-market prices and allocated according to specific rules rather than according to market mechanisms.”1 Under this definition, there are an estimated 480,000 socially-rented (i.e., subsidized) housing units available for rent in California, or about 3.5 percent of the state’s housing stock. These deed-restricted affordable rental units are generally built using a mix of public and private financing and residency is restricted to low-income households that make no more than 80 percent of county area median income (AMI). Other versions of social housing specify permanent affordability requirements and ownership by the government or a non-profit entity. Most of California’s deed-restricted affordable housing is not publicly owned and the length of affordability requirement s varies, though permanent affordability is not required in most cases. Another variation of social housing involves making accommodations available to all individuals regardless of their household income. In particular, Vienna, Austria is often held up as an example of a large city with widespread mixed-income social housing and an estimated 40 percent of the city’s housing stock is social housing. In the Viennese model higher income households pay market rate rents which then subsidize the below market rents for lower-income households. This mechanism is referred to as “cross-subsidization” and it is the same logic that underlies California’s density bonus law, a policy that allows residential developers to receive added density and other concessions and incentives from a local government in exchange for building a certain percentage of affordable units. Planning for housing and the RHNA process: As noted above, with the exception of deed- restricted affordable housing, California generally relies on the private sector to build most housing accommodations. However, cities and count ies are required to plan for a certain amount of housing development across various income categories. This happens through “general plans” for land use that each city and county’s legislative body adopts. Every general plan must include a “housing element” that details existing housing conditions within the jurisdiction, the need for new housing at various household income levels, and the strategy that the jurisd iction will use to address that need. The need for new housing is determined through the regional housing needs assessment (RHNA) process, which involves three main stages: 1 https://www.assembly.ca.gov/media/assembly-select-committee-social-housing-20211020/video AB 2053 Page 9  The Department of Finance and the Department of Housing and Community Development (HCD) develop regional housing needs estimates at four income levels: very low-income, low-income, moderate-income, and above moderate-income;  Councils of Governments (COGs) use these estimates to allocate housing needs within each region to cities and co unties (HCD makes the determinations where a COG does not exist); and  Cities and counties plan for accommodating these allocations in their housing elements Local governments must adopt a new housing element every eight years (though some rural jurisdictions must do so every five). These adopted housing elements must be approved by HCD, which must find them in “substantial compliance” with the law. Every eight years a new RHNA cycle begins and the process restarts. Currently the state is in the 6th RHNA cycle and housing element updates in this cycle will also need to include information on steps the local government is taking to affirmatively further fair housing objectives. Each year, the local government’s planning agency must submit an Annual Progress Report (APR) to HCD and the Governor’s Office of Planning and Research (OPR) that documents implementation of its housing element and progress towards meetings its RHNA target. The APR must include information about all proposed and approved development projects, a list of rezoned sites to accommodate housing for each income level, and information on density bonus applications and approvals, among other provis ions. The APRs provide statewide and local data across California’s 539 cities and counties which allow for tracking the amount, type, location, and affordability of new housing development . In addition to providing completed residential construction data in the jurisdiction, APRs also include data on the number residential developments which are still in the initial permitting and entitlement phase s. Planning vs. building affordable housing: While the RHNA process requires local governments to plan to address housing need in their jurisdiction, it does not mean housing will actually get built. A number of factors affect housing development and, in order to build affordable units for low-income and very low-income households, government subsidies are generally needed to make the project economically viable. According to the California Housing Partnership Corporation (CHPC), while California has more than doubled its production of deed-restricted affordable units in the prior three years, in 2021 the available public funding for affordable housing provided just 16 percent of the units that would be needed to meet the state’s targets for low-income homes2. The lack of affordable housing disproportionately impacts California’s most economically- vulnerable households. According to data from the 2019 American Communities Survey, over half of the state’s renter households are considered rent -burdened, which is defined as paying more than 30 percent of their income towards rent. For low -income renter households in the state the share of cost -burdened families is even higher at 80 percent. To address the shortage of affordable housing options, HCD’s most recent update of the Statewide Housing Plan call for the production of over a million units of affordable housing units for lower income households in the coming years3. 2 https://1p08d91kd0c03rlxhmhtydpr -wpengine.netdna-ssl.com/wp-content/uploads/2022/03/California-Affordable- Housing-Needs-Report-2022.pdf 3 https://statewide-housing-plan-cahcd.hub.arcgis.com/ AB 2053 Page 10 Creation of the California Housing Authority (CHA): This bill proposes to establish the California Housing Authority (CHA) as a new, independent entity within the state government to develop social housing, which is defined as mixed-income rental and ownership housing that is publicly owned and permanently affordable. The CHA’s mission would be to close the gap between a jurisdiction’s current level of housing production a nd their regional housing needs allocation (RHNA) amount while maintaining revenue neutrality. The CHA would be governed by a nine-member board consisting of: three resident representatives living in CHA accommodations, a housing development and finance expert, a housing construction expert, a property maintenance expert, an appointee of the Speaker of the Assembly, an appointee of the Senate Committee on Rules, and an appointee of the Governor. Decisions would be made by majority vote of the board and the board would also have the authority to appoint a board chair and an executive officer. Development of CHA housing: This bill specifies that the CHA could build residential housing to make up the different between a jurisdiction’s RHNA and the actual amount of housing built. These calculations would be made annually using each local government’s APR data beginning on January 1, 2027. Development would be prioritized on vacant parcels, surplus public properties, and parcels near transit , though the bill does not indicate a particular distance from transit or the frequency of transit service that would be required for a parcel to be considered “near transit”. Additionally, underutilized parcels (i.e., those containing fewer than the maximum number of allowable units per the jurisdiction’s zoning) would be prioritized for CHA development s so long as they do not contain rent controlled units or deed -restricted affordable housing. This bill requires the CHA to seek input from the local government about certain aspects of a proposed development including the number of units and the timeline for completing the project. When the CHA has multiple potential sites for development in a jurisdiction it would need to defer to the local government on their preferred site if property acquisition costs and amenities are generally similar and if the site would allow the local government to meet its RHNA targets. If a CHA development would lead to the displacement of existing residents, those households would be eligible for relocation assistance and would have the first right of refusal to live in a CHA housing unit. CHA housing would use community workforce agreements to the maximum extent feasible. Additionally, all CHA housing productio n and rehabilitation work would require skilled and trained workforce and payment of prevailing wages. CHA housing developments are required to be mixed-income housing developments, though the specific mix is not spelled out in the bill and there is no intent language indicating minimum proportions of affordable units nor the depth of affordability. The CHA also has the ability to develop mixed-use buildings with co mmercial space that could be leased to small businesses and nonprofits. Policies governing residency in CHA-built housing: In CHA-built developments individuals could either rent or purchase a unit through an ownership model and the CHA unit would need to be the person’s sole resident unless they fall into the above -moderate income category. In the ownership model CHA provides the resident a 99-year lease and they would need to commit to a minimum of five years of residency in the CHA building. The ownership model requires a down payment of 15 percent of the purchase price. When a resident in the ownership model wishes to sell their unit, the CHA would have first right of refusal to purchase the unit. If the CHA declines to repurchase the unit then it can be resold to a qualified buyer in a manner that a llows the AB 2053 Page 11 resident to have a reasonable return on investment. The bill states that ownership units would be sold for the original purchase price plus documented capital improvements and an adjustment for inflation. Renters in CHA units would be required to commit to a year of re sidency, though exceptions would be allowed in some cases such as illness or employment changes. Renters living in CHA- owned properties are provided tenant protections including protection against termination of tenancy without just cause. Additionally, the bill specifies that each multifamily social housing development produced by the CHA will have a resident governance council elected by residents of the housing complex. Governance councils will host regular meetings, interact with property management, handle budgeting for development, and represent the community at biannual meetings with the CHA board. Though the bill specifies that the governance council is to be made up of no more than 10 percent of the overall population for development, it is unclear if this is per unit or per resident. In a 20-unit building with only individual per unit there would be only two members on the council, which would pose an issue for any decisions that the two members disagree on. Should this bill advance through the legislative process the author may wish to further clarify provisions of the governance councils or drop provisions on resident governance councils until funding for the CHA is established and housing construction is under way. Since housing development s typically take several years to complete, policies related to governance councils could be determined in future legislation or through regulations promulgated by the CHA. One potential model could be the Davis-Stirling Act (Civil Code Section 4000 et seq.) which governs common interest developments and includes provisions on procedures for homeowner association board elections and the day-to-day operations of homeowners associations. Financing start-up costs and revenue neutrality: This bill states that t he CHA would operate according to principles of revenue neutrality, though it does not specify the time period over which revenue neutrality would be achieved. Presumably a significant amount of start-up capital would be needed to create the CHA and it would have ongoing expenses including the costs of developing and managing mixed-income housing, mortgage servicing, staff time, facilities, legal services, and IT. AB 2053 also includes language stating that it is the intent of the Legislature to fund the CHA’s activities through the issuance of general obligations bonds, though no specific timeline or dollar amount for bond issuance is included in the bill text. However, because the Legislature lacks the ability to issue general obligation bonds without voter approval another bill would need to pass with a two -thirds vote of both houses of the Legislature to put the question of CHA general obligation bond issuance before the voters. Given that there is no other bill this legislative session proposing to put a CHA general obligation bond measure to the voters, it is unclear where the initial funds for the CHA would originate from. The Governor did not specify any funding for social housing or for the creation of an entity like the CHA in his January 2022 budget . The bill also includes language giving the CHA the ability to issue revenue bonds that would ostensibly be secured with the rental income generated from CHA-provided housing, but such bonds could only be issued after a reliable stream of rental income is being generated from CHA-owned properties. Policy considerations: Without further specificity on initial start-up costs and the timeframe for achieving revenue neutrality it is challenging – if not impossible – to predict the amount of housing the CHA could be reasonably expected to produce. It is also unclear how long it would AB 2053 Page 12 take for the first units of CHA housing to be built given that the state has not historically undertaken direct construction of rental or ownership housing. The state also generally does not manage rental o r ownership housing outside of some limited exceptions, such as student housing for California State University campuses and employee housing for a small number of state parks employees. The author may wish to consider further specifying the time horizon for achieving revenue neutrality and other aspects of CHA’s work. While the bill includes some parameters the CHA would need to use for site selection for its developments (i.e., vacant parcels, ones near transit), the author may wish to consider further expanding these provisions. Since it is generally rare for a city or county to meet its RHNA goals the CHA could theoretically build in wide swaths of the state. However, it may be beneficial to prioritize CHA development in high-opportunity areas and locations that have been identified as beneficial for climate mitigation and adaption goals. For example, urban infill locations with low existing per capita vehicle miles traveled would be preferable from a climate change mitigation perspective relative to more remote suburban or rural locations that are heavily dependent on automobiles. Additionally, further consideration should be given to anti-displacement protections to ensure that CHA developments do not adversely impact vulnerable low and moderate -income communities. The bill currently contains protections for existing residents living on sites the CHA develops, but new housing can also affect neighboring residents and the larger community. To the extent CHA developments must include a high proportion of market rate units to achieve revenue neutrality, the result may be a program that disproportionately benefits moderate -income and higher income Californians. Morever, since the goal of the bill is to close the gap between a jurisdiction’s RHNA goals and the actual production of housing, presumably a CHA development would not be able to include units from a particular income category (e.g., above moderate) if the jurisdiction has already exceeded their RHNA targets for that category. This may provide an incentive for jurisdictions to quickly approve above moderate income housing to make CHA developments less economically feasible. One way to avoid such an outcome would be to drop the bill’s revenue neutrality goal and instead focus the CHA’s mission on producing affordable units for low -income households in a more cost-effective manner than the existing affordable housing developme nt process. The CHA and social housing in the context of other efforts to address the housing crisis: On the one hand it could be argued that this bill runs counter to the Legislature’s recent efforts to streamline and consolidate affordable housing development. For example, AB 434 (Daly), Chapter 192, Statutes of 2020, required HCD to align several rental housing programs administered by HCD with the Multifamily Housing Program (MHP), to allow HCD to issue a single application and scoring system for making coordinated awards under seven different programs. As a result of this bill, HCD recently released the guidelines for the first MHP “super Notice of Funding Availability (NOFA)” to allow developers to apply for seven different affordable rental programs at one time, beginning in the spring of 2022. This committee is also considering AB 2305 (Grayson) this year which would create a committee for allocating state- controlled resources for affordable housing. On the other hand, the CHA would generally not be aiming to duplicate the funding, oversight, policy, or technical assistance work of other state housing entities. Instead it seeks to do something the state has never attempted to do: build large amounts of permanently affordable AB 2053 Page 13 mixed-income rental and ownership housing to close the gap between actual housing production and the estimated need for additional housing in a community. This may prove to be a tall order for a state which has a decidedly mixed record with delivering ambitious new programs and infrastructure in recent decades. Yet , at the same time it is clear that the state’s existing approach to housing has left affordable housing out of reach for far too many. As noted above, the current system for producing deed- restricted affordable housing for low-income Californians is not adequately funded. And many of the affordable housing funding sources that the state current ly draws on are one-time funds from voter-approved bonds that will be depleted in the coming years. This bill proposes crea ting a new entity to take on housing development and ongoing management of properties it builds. There may be cost savings and potential efficiencies in state-sponsored housing development through the CHA, but it could also end up costing more to establish a new entity that would be taking on work state governments have not typically engaged in. Arguments in Support: The bill’s co-sponsor, YIMBY Action writes, “The California legislature has attempted several measures trying to address the chronic housing shortage, funding various kinds of subsidized affordable housing, legalizing Accessory Dwelling Units, and strengthening the RHNA process to spur housing production at every income level in California. California Legislators have said over and over that and ‘all of the above’ strategy is needed, and yet have been hesitant to look at successful housing models abroad. Now is the time to pursue a tried and tested model for social housing.” Arguments in Opposition: The California Association of Realtors writes in opposition to the bill that it “will create a new and expensive bureaucracy, as well as unintended adverse consequences for the housing market.” Their letter further notes that AB 2053 “runs contrary to the Legislature’s recent efforts to streamline housing programs” and that the bill would reduce local property tax revenue since CHA developments, including ones with market rate units, would presumably not pay property taxes. REGISTERED SUPPORT / OPPOSITION: Support East Bay for Everyone (Sponsor) San Jose State University Human Rights Institute (Co -Sponsor) State Building and Construction Trades Council – AFL-CIO (Co-Sponsor) YIMBY Action (Co-Sponsor) Affordable Housing Network of Santa Clara County Aids Healthcare Foundation Alameda County Democratic Party Autistic People of Color Fund California Apartment Association California Labor Federation, AFL-CIO California State Council of Laborers California State Council of Service Employees International Union California YIMBY City Council Member, City of Gilroy AB 2053 Page 14 Common Ground California Culver City for More Homes East Bay YIMBY Greenbelt Alliance Housing Action Coalition Housing Is a Human Right Indivisible CA: StateStrong Indivisible Sacramento Mountain View YIMBY Peninsula for Everyone Progressive Zionists of California San Francisco YIMBY San Luis Obispo YIMBY Santa Cruz YIMBY Sierra Club California SLO County YIMBY South Bay YIMBY South Pasadena Residents for Responsible Growth State Building & Construction Trades Council of California Terry Taplin, Council Member, City of Berkeley Westside Young Democrats Individuals - 3 Support If Amended San Francisco Berniecrats Opposition California Association of Realtors Catalysts for Local Control Individuals - 4 Analysis Prepared by: Sandra Nakagawa / H. & C.D. / (916) 319-2085 AMENDED IN ASSEMBLY APRIL 18, 2022 california legislature—2021–22 regular session ASSEMBLY BILL No. 2170 Introduced by Assembly Member Grayson (Coauthors: Assembly Members Cunningham, Flora, Gray, Lackey, Mayes, Petrie-Norris, Quirk-Silva, Valladares, Villapudua, and Waldron) (Coauthors: Senators Hurtado and Newman) February 15, 2022 An act to add Section 2924p to the Civil Code, relating to foreclosure. legislative counsel’s digest AB 2170, as amended, Grayson. Residential real property: foreclosure sales. Existing law prescribes various requirements to be satisfied before the exercise of a power of sale under a mortgage or deed of trust and prescribes a procedure for the exercise of that power. Existing law, until January 1, 2026, prescribes a process in connection with a trustee’s sale of property under a power of sale contained in a deed of trust or mortgage on real property containing one to 4 residential units, inclusive, that provides specified bidding priorities to certain parties, including prospective owner-occupants. This bill would prescribe requirements that would apply to sales of real property containing one to 4 residential dwelling units, inclusive, that a federal government-sponsored enterprise, as defined, acquires by is acquired through foreclosure under a mortgage or deed of trust or that is acquired at a foreclosure sale. sale by an institution, as defined. The bill would require the enterprise, institution, during the first 30 days that after a property is listed, as specified, to consider only purchase 98 only accept offers from prospective owner-occupants and eligible bidders, as defined, consistent with the federal First Look program of the enterprise. The bill would require the enterprise to provide written acknowledgment of offers to owner-occupants and eligible bidders, and their respective agents, during the 30-day period before accepting or considering offers. The bill would authorize investor purchasers, as defined, to submit offers to purchase, as specified, but would prohibit consideration of the offers until the 30-day period has expired. and to respond, in writing, to all offers received from eligible bidders. This bill would require, pursuant to the guidelines of a federal government-sponsored enterprise, than a prospective owner-occupant sign and submit an affidavit affirming their intent to occupy the property as their primary residence. The bill would require an eligible bidder to be engaged in a neighborhood stabilization program, to provide an affidavit affirming their nonprofit or governmental status, and to provide evidence of their neighborhood stabilization mission. require an eligible bidder to submit an affidavit or declaration, as specified, with their offer to an institution. By expanding the crime of perjury, this bill would impose a state-mandated local program. This bill would also prohibit a federal government-sponsored enterprise that is regulated by the Federal Housing Finance Agency an institution from conducting a bundled sale, as defined. 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 2924p is added to the Civil Code, to read: line 2 2924p. (a)  For purposes of this section, it is the intent of the line 3 Legislature to do all of the following: line 4 (1)  Allow for prospective owner-occupants and eligible bidders line 5 to have the first opportunity to purchase properties which that have line 6 been acquired through the foreclosure process by federal line 7 government-sponsored enterprises. by an entity that annually line 8 forecloses on 175 or more residential real properties in California. 98 — 2 — AB 2170 line 1 (2)  Model in California law the federal First Look program that line 2 the Federal Housing Finance Administration instituted during the line 3 national foreclosure crisis. line 4 (3) line 5 (2)  Promote owner occupancy and to provide owner-occupants line 6 and public entities an advantage in submitting offers on foreclosed line 7 properties owned by federal government sponsored enterprises line 8 without competition from investors. by enacting legislation line 9 consistent with the provisions of the federal First Look program line 10 that provides owner-occupants and affordable housing providers line 11 an opportunity for their offers to be considered on foreclosed line 12 properties prior to other offers. line 13 (4) line 14 (3)  Ensure that the requirements of this section are consistent line 15 with the original stated goals of the federal First Look program, line 16 which were to expand home ownership opportunities, strengthen line 17 neighborhoods and communities, while also providing that sellers line 18 are required to respond to offers received during the first look line 19 period before accepting or considering investor offers to purchase line 20 single family single-family homes. line 21 (b)  For purpose of this section: line 22 (1)  “Bundled sale” means the sale of two or more parcels of line 23 real property containing one to four residential dwelling units, line 24 inclusive, at least two of which have been acquired through line 25 foreclosure under a mortgage or deed of trust or purchased at a line 26 foreclosure sale by a federal government-sponsored enterprise. line 27 trust. line 28 (2)  “Eligible bidder” means any of the following: line 29 (A)  A prospective owner-occupant. line 30 (B)  A nonprofit corporation, which has the primary activity to line 31 develop and preserve affordable housing. corporation that meets line 32 all of the following requirements: line 33 (i)  The nonprofit corporation has a determination letter from line 34 the Internal Revenue Service affirming its tax-exempt status line 35 pursuant to Section 501(c)(3) of the Internal Revenue Code and line 36 is not a private foundation as that term is defined in Section 509 line 37 of the Internal Revenue Code. line 38 (ii)  The nonprofit corporation is based in California. line 39 (iii)  All of the board members of the nonprofit corporation have line 40 their primary residence in California. 98 AB 2170 — 3 — line 1 (iv)  The primary activity of the nonprofit corporation is the line 2 development and preservation of affordable rental or line 3 homeownership housing in California. line 4 (C)  A limited partnership based in California in which the line 5 managing general partner is a nonprofit corporation, corporation line 6 based in California, and their primary activity is to develop and line 7 preserve affordable housing. line 8 (D)  A limited liability company based in California in which line 9 the managing member is a nonprofit corporation, corporation line 10 based in California, and their primary activity is to develop and line 11 preserve affordable housing. line 12 (E)  A community land trust based in California, as defined in line 13 clause (ii) of subparagraph (C) of paragraph (11) of subdivision line 14 (a) of Section 402.1 of the Revenue and Taxation Code. line 15 (F)  A limited-equity housing cooperative, as defined in Section line 16 817. 817, that is based in California. line 17 (3)  “Federal government-sponsored enterprise” means: line 18 (A)  A government-sponsored enterprise, as defined in Section line 19 622 of Title 2 of the United States Code that is regulated by the line 20 Federal Housing Finance Authority. line 21 (B)  An affiliated entity of a federal government-sponsored line 22 enterprise. line 23 (C)  A mortgage servicer, as defined by Section 2920.5, who is line 24 acting as an agent for a federal government-sponsored enterprise. line 25 (4)  “Investor purchaser” means any of the following: line 26 (A)  A real estate investment trust, as defined in Section 856 of line 27 Title 26 of the United States Code. line 28 (B)  An S Corporation, as described in Chapter 4.5 (commencing line 29 with Section 23800) of Part 11 of Division 2 of the Revenue and line 30 Tax Code. line 31 (C)  A C corporation or limited liability company in which at line 32 least one member is a corporation, as described in the Corporations line 33 Code. line 34 (D)  Any entity which is publicly traded on a United States stock line 35 exchange. line 36 (5)  “Multiple listing service” means a multiple listing service, line 37 as defined in Section 1087. line 38 (3)  “Institution” means any of the following, if that person or line 39 entity, during its immediately preceding annual reporting period, line 40 as established with its primary regulator, foreclosed on 175 or 98 — 4 — AB 2170 line 1 fewer residential real properties, containing no more than 4 line 2 dwelling units: line 3 (A)  A depository institution chartered under state or federal line 4 law. line 5 (B)  A person licensed pursuant to Division 9 (commencing with line 6 Section 22000) or Division 20 (commencing with Section 50000) line 7 of the Financial Code. line 8 (C)  A person licensed pursuant to Part 1 (commencing with line 9 Section 10000) of Division 4 of the Business and Professions Code. line 10 (6) line 11 (4)  “Prospective owner-occupant” means a natural person who line 12 presents to the trustee an affidavit that whose affidavit or line 13 declaration under paragraph (2) of subdivision (c) states all of the line 14 following: line 15 (A)  They will occupy the property as their primary residence line 16 within 60 days of the trustee’s deed being recorded. line 17 (B)  They will maintain their occupancy for at least one year. line 18 (C)  They are not the any of the following: line 19 (i)  The mortgagor or trustor, or the or trustor. line 20 (ii)  The child, spouse, or parent of the mortgagor or trustor. line 21 (iii)  The grantor of a living trust that was named in the title to line 22 the property when the notice of default was recorded. line 23 (iv)  An employee, officer, or member of the mortgagor or trustor. line 24 (v)  A person with an ownership interest in the mortgagor, unless line 25 the mortgagor is a publicly traded company. line 26 (D)  They are not acting as the agent of any other person or entity line 27 in purchasing the real property. line 28 (c)  All of the following shall apply to sales of real property line 29 containing one to four residential dwelling units, inclusive, that is line 30 acquired by a federal government-sponsored enterprise through line 31 foreclosure under a mortgage or deed of trust or that is acquired line 32 at a foreclosure sale: sale by an institution: line 33 (1)  (A)  During the first 30 days in which after the property is line 34 listed for sale in the multiple listing service, pursuant to guidelines line 35 of a federal government-sponsored enterprise, a federal line 36 government-sponsored enterprise shall consider only purchase line 37 offers from prospective owner-occupants and eligible bidders, line 38 consistent with the federal First Look program of federal line 39 government-sponsored enterprise. sale, the institution shall only 98 AB 2170 — 5 — line 1 accept offers from eligible bidders in this time period and shall line 2 respond, in writing, to all offers received from eligible bidders. line 3 (B)  The federal government sponsored enterprise shall provide line 4 written acknowledgment of all offers received pursuant to line 5 subparagraph (A) during the 30-day period to owner-occupants, line 6 eligible bidders, and their respective agents before accepting or line 7 considering offers made pursuant to paragraph (2). line 8 (2)  Investor purchasers may submit offers to purchase after the line 9 30-day period, but the offers shall not be considered by the federal line 10 government sponsored enterprise until the 30-day described in line 11 paragraph (1) has expired. line 12 (2)  An eligible bidder shall submit with their offer to the line 13 institution an affidavit or declaration, pursuant to Section 2015.5 line 14 of the Code of Civil Procedure, that states they are either of the line 15 following: line 16 (A)  An eligible bidder pursuant to subparagraphs (B) through line 17 (F) of paragraph (2) of subdivision (b). line 18 (B)  A prospective owner-occupant purchasing the property as line 19 a primary residence pursuant to this subdivision. line 20 (3)  Pursuant to the guidelines of a federal government-sponsored line 21 enterprise, a prospective owner-occupant shall sign and submit an line 22 affidavit affirming that they intend to occupy the property as their line 23 primary residence, and any Any fraudulent statements may be line 24 subject to criminal or civil liability. line 25 (4)  Eligible bidders, pursuant to requirements of the guidelines line 26 of a federal government-sponsored enterprise, shall do all of the line 27 following: line 28 (A)  Be engaged in a neighborhood stabilization program. line 29 (B)  Provide an affidavit affirming their nonprofit or line 30 governmental status. line 31 (C)  Provide evidence of their neighborhood stabilization line 32 mission. line 33 (4)  Notwithstanding any other law, an institution shall not line 34 conduct a bundled sale. line 35 (d)  Notwithstanding any other law, a federal line 36 government-sponsored enterprise regulated by the Federal Housing line 37 Finance Agency shall not be authorized to conduct a bundled sale. line 38 The provisions of this section are severable. If any provision of line 39 this section or its application is held invalid, that invalidity shall 98 — 6 — AB 2170 line 1 not affect other provisions or applications that can be given effect line 2 without the invalid provision or application. line 3 SEC. 2. No reimbursement is required by this act pursuant to line 4 Section 6 of Article XIII B of the California Constitution because line 5 the only costs that may be incurred by a local agency or school line 6 district will be incurred because this act creates a new crime or line 7 infraction, eliminates a crime or infraction, or changes the penalty line 8 for a crime or infraction, within the meaning of Section 17556 of line 9 the Government Code, or changes the definition of a crime within line 10 the meaning of Section 6 of Article XIII B of the California line 11 Constitution. O 98 AB 2170 — 7 — AB 2234 Page 1 Date of Hearing: April 20, 2022 ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT Cecilia Aguiar-Curry, Chair AB 2234 (Robert Rivas) – As Amended April 6, 2022 SUBJECT: Planning and zoning: housing: postentitlement phase permits SUMMARY: Requires public agencies to post information related to post entitlement phase permits for housing development projects, process those permits in a specified time period depending on the size of the housing development, and establish a digital permitting system if the local agency meets a specific population threshold. Specifically, this bill: 1) Requires public agencies to compile one or more lists that specify in detail the information that will be required from any applicant for a postentitlement phase permit for a development and to post that information on their internet website by January 1, 2024. 2) Requires public agencies to post on their internet website an example of an ideal application and an ideal set of postentitlement phase permits for an unspecified amount of housing development projects in the jurisdiction by January 1, 2024. 3) Requires large jurisdictions, as defined to require postentitlement phase permits to be applied for, completed and stored through a publicly available process on its website by January 1, 2024. 4) Requires large jurisdictions to accept applications for permits and related documentation by electronic mail until a digital application system is established, as specified. 5) Requires public agencies to determine whether an application for a postentitlement phase permit is complete, and provide written notice to the applicant of that determination no later than 15 calendar days after the agency receives the application. 6) Requires a public agency that determines that a postentitlement phase application is incomplete to provide the applicant with a list of incomplete items and a description of how to make the application complete. Restricts the incomplete items a public agency can identify to items the local agency specifies are required for a postentitlement phase application to be deemed complete. 7) Authorizes an applicant to resubmit an application that is deemed incomplete and specifies that a local agency my not require the application to include items that were not identified as missing in the notice informing the applicant that the previous application was incomplete. 8) Specifies that public agencies must determine whether a resubmitted application for a postentitlement phase permit is complete, and provide written notice to the applicant of that determination no later than 15 days after the agency receives the application 9) States that, if a local agency does not make a timely determination on an original application or a resubmitted application, the application shall be deemed complete. AB 2234 Page 2 10) Requires public agencies to approve or deny a postentitlement phase permit that the agency has determined is complete within 30 days for residential developments that include 25 units or fewer, and specifies how that information must be communicated to the applicant. 11) Requires public agencies to approve or deny a postentitlement phase permit that the agency has determined is complete within 60 days for residential developments that include 25 units or more, and specifies how that information must be communicated to the applicant. 12) Specifies that the time limits for denying or approving postentitlement phase permits do not apply if the public agency makes a written finding based on substantial evidence in the record that the postentitlement phase permit may have a specific adverse impact on public health or safety and that additional time is necessary to process the application. 13) Provides that a public agency that finds a complete application is defective or deficient may provide the applicant with a list of items that are defective or deficient and a description of how the application can be remedied, specifies that this information must be transmitted to the applicant when the agency denies the application. 14) Authorizes an applicant to resubmit a postentitlement phase permit that is denied based on a defect or deficiency and specifies that the resubmitted application is subject to the same timeframes applicable to an original complete application. 15) Requires local agencies to provide a process for applicants to appeal a determination that an application is not complete as well as a process to appeal a denial of a complete application, as specified. 16) Specifies that a public agency shall act on an appeal for residential developments with 25 units or fewer within 60 calendar days, as specified. 17) Specifies that a public agency shall act on an appeal for residential developments with 25 units or more within 90 calendar days, as specified. 18) Provides that a failure by a public agency to meet the time limits provided in the bill is a violation of the Housing Accountability Act. 19) Provides that the bill does not place limitations on the amount of feedback a public agency may provide or the revisions a public agency may request of an applicant. 20) Provides that public agencies must comply with the standards established in this bill as well as the standards established by the streamlined approval process established pursuant to SB 35 (Wiener), Chapter 366, Statutes of 2017 for projects that are eligible for the streamlined approval process created by that bill. 21) Provides that an applicant and public agency may mutually agree to an extension of any of the time limits provided by the bill, but precludes a local agency from requiring an extension as a condition of accepting or processing a postentitlement phase permit, unless the waiver is necessary for the purposes of concurrent processing of related approvals or environmental review of the residential development project. AB 2234 Page 3 22) Specifies that the provisions of the bill do not apply to the planning permits, entitlements and other permits or reviews subject to the Permit Streamlining Act (PSA), or permits issued by the following entities: a) The California Coastal Commission. b) Special districts. c) Utilities that are not owned and operated by public agencies. 23) Defines the following terms for the purposes of the bill: a) “Large jurisdictions” means a county with a population of more than 250,000 as of January 1, 2019, and any city located within that county. b) “Public agency” means any county, city, or city and county. c) “Postentitlement phase permit” includes all nondiscretionary permits and reviews filed after the discretionary entitlement process has been completed that are required or issued by the public agency to begin a development that is intended to be at least two-thirds residential, including, but not limited to, all of the following: (1) Building permits, and all inter-departmental review required for the issuance of a building permit. (2) Permits for minor or standard off-site improvements. (3) Permits for demolition. (4) Permits for minor or standard excavation and grading. (5) A permit or review listed by a public agency as required by this bill. Specifies that a public agency may identify a threshold by ordinance for determining whether a permit constitutes a minor or standard permit for the purposes of the bill. d) “Specific adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, and written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. 24) Declares that access to affordable housing is a matter of statewide concern and that the provisions of the bill therefore apply to all cities, counties and cities and counties, including charter cities, counties and cities and counties. 25) Provides that, if the Commission on State Mandates determines that this bill contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to current law governing state mandated local costs. AB 2234 Page 4 EXISTING LAW: 1) Allows a city or a county to “make and enforce within its limits, all local, police, sanitary and other ordinances and regulations not in conflict with general laws.” It is from this fundamental power (commonly called the police power) that cities and counties derive their authority to regulate behavior to preserve the health, safety, and welfare of the public, including land use authority. 2) Requires, pursuant to Planning and Zoning Law, every city and county to adopt a general plan that sets out planned uses for all of the area covered by the plan, and requires the general plan to include seven mandatory elements, including a land use element. 3) Requires major land use decisions by cities and counties, such as development permitting and subdivisions of land, to be consistent with their adopted general plans. FISCAL EFFECT: This bill is keyed fiscal and contains a state-mandated local program. COMMENTS: 1) Author’s Statement. According to the author, “Local governments approve housing developments with the expectation that, with their work done, they will soon see the creation of much-needed housing. However, there is no standardized process or timeline to review the array of post-entitlement “building” permits. In fact, many projects spend months or even years waiting for building permit approvals – despite the fact that the housing development has been reviewed and approved. Cities, counties, and applicants often struggle to complete the building permit process in a timely manner. Developers do not always provide all the required information to the city when applying for the permits, and cities do not always provide timely, necessary feedback to applicants. These delays of months or years increase the costs of the projects and slow overall housing production, which exacerbates California’s housing crisis. Prior legislation, the Permit Streamlining Act, does not resolve this issue because it does not apply to building permits. “AB 2234 will improve communication systems by requiring local jurisdictions to publish an online checklist for applications to be deemed complete and maintain this checklist online for the public. An ideal application sample must be included in this checklist, which developers can then use as a reference. Local jurisdictions with a population of 250,000 or larger will also be required to update the status of the application online, including anything that is required from the developer. AB 2234 will apply to nearly all post-entitlement, residential permits issued by an agency under the control of the local jurisdiction, excluding utilities, special districts, and the Coastal Commission. Examples of permits subject to AB 2234 include building permits and interdepartmental review necessary to issue building permits; permits for excavation, site remediation, and demolition, etc. The bill does not apply to the approval of project plans nor entitlements, including the CEQA process.” 2) California Housing Crisis. California faces a severe housing shortage. In its most recent statewide housing assessment, HCD estimated that California needs to build an additional 100,000 units per year over recent averages of 80,000 units per year to meet the projected need for housing in the state. A variety of causes have contributed to the lack of housing AB 2234 Page 5 production. Recent reports by the Legislative Analyst’s Office (LAO) and others point to local approval processes as a major factor. They argue that local governments control most of the decisions about where, when, and how to build new housing, and those governments are quick to respond to vocal community members that may not want new neighbors. The building industry also points to California Environmental Quality Act (CEQA) review as an impediment, and housing advocates note a lack of a dedicated source of funds for affordable housing. 3) Planning for and Approval of Housing. Planning for and approving new housing is mainly a local responsibility. The California Constitution allows cities and counties to “make and enforce within its limits, all local, police, sanitary and other ordinances and regulations not in conflict with general laws.” It is from this fundamental power (commonly called the police power) that cities and counties derive their authority to regulate behavior to preserve the health, safety, and welfare of the public – including land use authority. Cities and counties enforce this land use authority through zoning regulations, as well as through an “entitlement process” for obtaining discretionary as well as ministerial approvals. The scale of the proposed development, as well as the existing environmental setting determine the degree of local review that occurs. For larger developments, the local entitlement process commonly requires multiple discretionary decisions regarding the subdivision of land, environmental review per CEQA, design review, and project review by the local agency’s legislative body (city council or county board) or by a planning commission, the legislative body has delegated to. Navigating through the various stages of local approval requires developers to invest time and resources early in the development process. This creates a certain degree of risk for developers who must bear any costs associated with navigating the local approval process long before they can realize the profits typically associated with a completed development 4) The Permit Streamlining Act. The PSA requires public agencies to act fairly and promptly on applications for development proposals, including housing developments. Public agencies must compile lists of information that applicants must provide and explain the criteria they will use to review permit applications. Public agencies have 30 days to determine whether applications for development projects are complete; failure to act results in an application being "deemed complete." However, local governments may continue to request additional information, potentially extending the time before the clock begins running. Once a complete application for a development has been submitted, the Act requires local officials to act within a specific time period after completing any environmental review documents required under the CEQA. Specifically, local governments must act within (1) 60 days after completing a negative declaration or determining that a project is exempt from review, or (2) 180 days after certifying an environmental impact report (EIR). If the local government fails to approve or disapprove the application in the applicable time period, the application is deemed granted, and the applicant may file suit in state court to order the local government to issue the permit. 5) Non-discretionary Postentitlement Permits. The PSA establishes standards for local agencies and other public agencies to approve development proposals. The PSA establishes timelines for agencies to determine whether a proposal is complete and timelines for approving or denying a development proposal that is deemed complete. Once a development AB 2234 Page 6 proposal is approved by the local agency, the developer is still required to submit a range of nondiscretionary permits to the local agency for approval. This includes building permits and other permits related to the physical construction of the development proposal. The timelines established in the PSA do not apply to these nondiscretionary permits. Essentially, the PSA applies to the discretionary approval phase of a development review process, this is the phase where the local agency, in its discretion, decides whether or not it approves of the concept outlined in the development proposal. Because the local agency is exercising discretion, these approval decisions are subject to CEQA. Once the development proposal is approved by the local agency, the next phase of review involves the ministerial review of objective permits associated with the development proposal that ensure the proposal is compliant with state and local building codes and other measures that protect public health, safety and the environment. Generally, once a local agency has invested the time and effort to approve a development proposal, there is an incentive for the agency to process the ministerial phase of permits in a timely fashion. Local agencies may self-impose processing timelines for these permits but there is no statutorily established maximum timeline for this review in statute. 6) Bill Summary. This bill replicates elements of the PSA that apply to the discretionary development approval process to the non-discretionary postentitlement permit approval process for housing developments. Specifically, this bill borrows from and applies the following concepts in the PSA to non-discetrtionary postentitlement housing development permits reviewed by local agencies: a) Information Posting. The PSA requires public agencies to compile one or more lists that specify in detail the information that will be required from any applicant for a development project. This bill requires local agencies to compile one or more lists that specify in detail the information that will be required from any applicant for a postentitlement phase housing development permit for a development, and requires that this information is posted on the local agency’s internet website. b) Deemed Complete Timeframe. The PSA requires public agencies to determine if a development proposal is complete within 30 days and to provide specified feedback to an applicant if the proposal is not complete. This bill requires public agencies to determine whether an application for a postentitlement phase housing development permit is complete, and provide specified information to the applicant within 15 days after the agency receives the application. c) Substantive Review Timeframe. The PSA requires public agencies to approve or disapprove a development project within a specified timeframe (generally 60-180 days) depending on the type of CEQA review that applies to the development approval and the type of approval conferred by the public agency. This bill requires local agencies to review and approve non-discretionary postentitlement housing development permits within 30-60 days depending on the size of the project. This bill also requires counties that, as of January 1, 2019, had a population of more than 250,000, and any city located within those counties, to establish an online portal for accepting and processing the postentitlement phase permits subject to the bill. AB 2234 Page 7 This bill is sponsored by the Housing Action Coalition and the Silicon Valley Leadership Group. 7) Technical Amendments. The Committee may wish to recommend the following technical amendments. Due to procedural issues, these amendments must be accepted in the Housing and Community Development Committee. a) Some aspects of the PSA apply to state and local agencies, which are defined as “public agencies.” Other aspects of the PSA specifically apply to local agencies. This bill also uses the term “public agencies,” but more narrowly defines public agencies as cities and counties, which essentially mirrors the PSA’s definition of local agencies. Given that this bill largely replicates the PSA, it may cause confusion to use a different definition of the term “public agency.” The Committee may wish to amend the bill to replace the term “public agency” with the term “local agency.” b) Subdivision (b) Paragraph (2) includes two sentences that modify Paragraphs (1) and (2) of that subdivision. The Committee may wish to amend the bill to recast the following text from paragraph (2) into a new Paragraph (3): “The internet website or electronic mail shall list the current processing status of the applicant’s permit by the public agency. That status shall note whether it is being reviewed by the agency or action is required from the applicant.” c) The bill applies to postentitlement phase permits, which is narrowly defined. However, but Subdivision (b) Paragraph (2) of the bill uses the term “permits,” which is undefined. This could be interpreted to apply certain provisions of this bill more broadly. The Committee may wish to amend (b)(2) to use the more specific term “postentitlement phase permits,” which is defined in the bill. d) The term “residential developments,” is used throughout the bill. Recent legislation related to the permitting of housing typically uses the term “housing developments” or “housing development projects.” The Committee may wish to amend the bill to replace the term “residential developments” with the term “housing development projects.” e) Subdivision (e) Paragraph (2) referred to a list and description “required” in paragraph (1). However, paragraph (1) is permissive and does not “require” the preparation of a list. The Committee may wish to amend the bill to make the language in (e)(2) accurately reflect the provisions of (e)(1). 8) Arguments in Support. The Silicon Valley Leadership Group writes in support, “AB 2234 is a straightforward solution which will help prevent the unnecessary delays and added project costs in building critical housing development projects in California by establishing a framework for obtaining post-entitlement permits.” 9) Arguments in Opposition. The California State Association of Counties writes in opposition, “While we appreciate and share your desire for prompt review and approval of post-entitlement permits, AB 2234 would create practical and policy concerns impairing local government’s ability to effectively review applications and includes unclear definitions that effect its scope. AB 2234 would also impose costly mandates for electronic permitting without providing state funding to offset these costs. Finally, the bill excludes approvals AB 2234 Page 8 required by other agencies, including the Coastal Commission and utilities, for reasons that appear to be based in political rather than policy concerns.” 10) Double-Referral. This bill is double-referred to the Assembly Committee on Housing and Community Development. REGISTERED SUPPORT / OPPOSITION: Support Silicon Valley Leadership Group [SPONSOR] Housing Action Coalition [SPONSOR] Bay Area Council California Housing Partnership Corporation California Yimby Council of Infill Builders EAH Housing Fieldstead and Company, INC. Habitat for Humanity California Jon Wizard Council Member, City of Seaside Housing Leadership Council of San Mateo County Non-profit Housing Association of Northern California (NPH) San Francisco Bay Area Planning and Urban Research Association (SPUR) San Jose Chamber of Commerce Sergio Jimenez City Councilmember City, City of San Jose Southern California Association of Non-profit Housing (SCANPH) The Los Angeles Coalition for The Economy & Jobs The Two Hundred Zach Hilton City Council Member, City of Gilroy Opposition California Building Officials California State Association of Counties (CSAC) League of California Cities Rural County Representatives of California (RCRC) Urban Counties of California Analysis Prepared by: Hank Brady / L. GOV. / (916) 319-3958 AB 2295 Page 1 Date of Hearing: April 20, 2022 ASSEMBLY COMMITTEE ON HOUSING AND COMMUNITY DEVELOPMENT Buffy Wicks, Chair AB 2295 (Bloom) – As Amended March 29, 2022 SUBJECT: Local educational agencies: housing development projects SUMMARY: Provides that a housing development project must be deemed an authorized use on any real property owned by a local educational agency (LEA) if it meets specified affordability criteria and planning standards. Specifically, this bill: 1) Defines “local educational agency” to mean a school district, county office of education, or charter school. 2) Defines a “qualified housing development project” to mean a housing development project that meets all of the following requirements: a) The units must be rented as follows: i. All of the units must be rented by teachers and employees of the LEA; ii. If the LEA receives an insufficie nt number of teachers and employees to apply for and occupy the units, the unoccupied units may be offered to lower income households that do not include a teacher or employee of the LEA; and iii. When a unit becomes unoccupied and available for rent, first offer for such units must go to teachers and employees of the LEA. b) It consists of at least 10 housing units; c) It meets the following affordability criteria; i. At least 30 percent of the units will be rented and occupied by lower income households at an affordable rent; ii. At least 20 percent of units will be rented and occupied by teachers and employees of an LEA at a rent that is affordable for households with incomes that do not exceed 120 percent of the area median income; and iii. The housing development propone nt has committed to record, prior to the issuance of the first building permit, a land use restriction or covenant providing that any housing units required to meet its affordability criteria must remain available at affordable rent levels for no less than 55 years. d) A LEA must maintain ownership of a qualified housing development project for the length of the 55 year affordability requirement. 3) Provides that a qualified housing development project must be deemed an authorized use on any real property owned by a LEA, even if that is inconsistent with any provision of a city’s or county’s general plan, specific plan, zoning ordinance, or regulation. Provides that a AB 2295 Page 2 qualified housing development must be deemed consistent, compliant, and in conformity with local development standards, zoning codes or maps, and the general plan. 4) Provides the following regarding the objective standards applied to a qualified housing development project: a) A city or county must not impose objective standards that preclude the construct ion of a qualified development project of at least three stories and 30 feet in height; b) A city or county may impose other objective standards that do not conflict with this section. 5) Provides that a qualified housing development project on real property owned by a LEA will not be subject to oversight and approval by the Department of General Services. 6) Specifies that funds derived from a qualified housing development project on real property owned by a LEA may be used for general operating purposes of the LEA. 7) States that any land used for the development of a qualified housing development project may be jointly used or jointly occupied by the LEA and any other party. 8) Provides that any land used for the development of a qualified housing development project is exempt from the requirements of all of the following: a) The Surplus Lands Act (Government Code Section 54220 et seq); b) The Disposal of Sites requirement of Education Code Section 17230 et seq; and c) Provisions regarding the sale or lease of real property owned by school districts contained in Education Code Section 17455 et seq. 9) Provides that the Legislature finds and declares that this article addresses a matter of statewide concern rather than a municipal affair, and therefore the provisions of this bill apply to all cities, including charter cities. Provides that no reimbursement is required by the provisions of this bill because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this bill. EXISTING LAW: 1) Allows a city or county to “make and enforce within its limits, all local, police, sanitary and other ordinances and regulations not in conflict with general laws.” It is from this fundamental power (commonly called the police power) that cities and counties derive their authority to regulate behavior to preserve the health, safety, and welfare of the public, including land use authority (Section 7 of Article XI of the California Constitution). 2) Establishes the Teacher Housing Act of 2016 (Health and Safety Code 53570 et seq), which established that: a) It is state policy to support housing for teachers and school district employees; AB 2295 Page 3 b) School districts and developers in receipt of local or state funds or tax credits designated for affordable rental housing may restrict occupancy to teachers and school district employees on land owned by school districts; c) School districts may allow local public employees or other members of the public to occupy housing created through the Teacher Housing Act; and d) A majority of the units must be rented at an affordable rent to lower income or moderate - income households. FISCAL EFFECT: Unknown COMMENTS: Author’s Statement: According to the author, “School districts in California own 10,900 properties with over 150,000 acres of land, half of which are potentially suitable for housing. By easing the administrative and bureaucratic hurdles, AB 2295 will help local educational agencies feasibly construct enough housing to meet the current demand and help address teaching shortages—ultimately helping keep quality teachers and staff in the classroom.” California’s Housing Crisis: California is in the midst of a housing crisis. The median price of a single-family home exceeds $800,000, which only 24 percent of households can afford to purchase – 50 percent less than the national average, and 33 percent less than at the start of the pandemic.1 Over half of renters – and 80 percent of low-income renters – are “rent burdened,” in households paying more than 30 percent of their income toward housing, which means they have less to pay for other essentials such as food, transportation, and health care.2 In 2020, over 160,000 Californians experienced homelessness on a given night.3 The housing crisis substantially impacts many of the state’s 650,000 employees of local educational agencies (LEAs). Over one-third of these employees pay over 30 percent of their income towards housing, including 31 percent of teachers and nearly half of all other LEA employees that are not school administrators.4 A major cause of our housing crisis is the mismatch between the supply and demand for housing. While there are various estimates of the size of this mismatch, they all concur that the deficit is in the millions of units. This includes a large and growing housing affordability gap. The state has a target of over one million new homes for lower income households over the next eight years – over 120,000 units a year.5 Yet California has never produced more than 20,000 new affordable rental homes in any year.6 1 California Association of Realtors Housing Affordability Index. Data for the 3rd quarter of 2021. 2 HCD, California Statewide Housing Plan, February 2018, Table 1.2 3 The 2020 Annual Homeless Assessment Report (AHAR) to Congress (huduser.gov) 4 Education Workforce Housing in California: Developing the 21st Century Campus, cityLAB UCLA et al, December 2021: https://www.csba.org/- /media/CSBA/Files/Advocacy/LegislativeAdvocacy/ResearchReport.ashx?la=en&rev=2d0b1e2e409 f4dc6b3177338 d016cbb1 5 This total reflects all of the Regional Housing Needs Assessments, as summarized in the 2022 Statewide Housing Plan: https://storymaps.arcgis.com/stories/94729ab1648d43b1811c1698a748c136 6 According to communication from the California Housing Partnership Corporation. AB 2295 Page 4 Housing on School District Land: There are over 1,000 LEAs in California. Collectively, they own more than 150,000 acres of land.7 According to recent research, of land owned by LEAs, there are 7,068 properties with potentially developable land of one acre or more, totaling 75,000 acres statewide. At a modest density of 30 dwelling units per acre, such properties could contain 2.3 million units of housing – more than enough to house the state’s 300,000 teachers and 350,000 other LEA employees. Despite the potential for development, there is very little housing on LEA property. This is understandable, given that the primary function of this land is for educational purposes. It is also because there are myriad impediments to completion of employee housing on LEA property, including:  Lack of expertise: the core competency of LEAs is education. To the degree there is expertise in new construction or facilities management, it is focused on educationa l facilities, not on building and managing housing.  Lack of funding: given exceedingly high construction costs, the price of new housing exceeds what is affordable to most LEA staff. As such, to develop employee housing, LEAs will need to identify public sources of funding.  Lack of permission: getting housing approved in California is often a laborious and risky process, reflecting the complexity of government review, public processes, and required analysis under the California Environmental Quality Act (CEQA). LEA properties typically face the additional hurdle of not having zoning that permits housing or specified development standards for housing projects. As such, if it wanted to build housing for its employees, the LEA would need to seek permission from a local government to establish the right to build housing and identify objective standards for the project to conform with. Despite the impediments, state and local officials are increasingly exploring ways to facilitate housing on LEA property, as a way to help LEAs recruit and retain employees. The T eacher Housing Act of 2016 (SB 1413, Leno, Chapter 732, Statutes of 2016), created a state policy to support housing for teachers and school district employees, and specified that projects can receive local or state funds or tax credits if developments are restricted to school district employees. Since June 2018, eight California LEAs have put a proposition or measure before local voters to fund education workforce housing development, with six of these measures passing.8 And recent research identified 46 LEAs pursuing housing projects on 83 different sites.9 However, to date, California is home to just four comp leted education workforce housing developments by Los Angeles Unified and Santa Clara Unified. This bill seeks to address the fact that, on most LEA property, housing is not a permissible use and that these properties have no applicable development standards for housing. The bill would make housing a permissible use, and establish an allowable height of 30 feet, if the housing project met the following affordability and occupancy criteria:  Developments would need to make 30 percent of the units affordable to lower income households and 20 percent would need to be affordable to moderate-income households; 7 See footnote 4 8 Ibid. 9 Ibid. AB 2295 Page 5  LEAs would have to rent the units to their employees. However, should there not be enough LEA employees to fill the units, they could fill the units with lower income households. While housing would become a permissible use, the project would still need to go through the local government’s entitlement process, including CEQA. The local government would be able to apply its own zoning and design review standards, as long as they do not preclude the project from being three stories or thirty feet in height. Arguments in Support: Supporters of the bill argue that it will help unlock the potential for new housing for LEA staff, which will help facilitate teacher recruitment and retention, particularly in high cost areas. According to the Los Angeles Unified School District, “this bill will enhance certainty, increase flexibility, and streamline the process of developing educator workforce housing on school la nd, which will help districts recruit and retain teachers and classified staff.” Arguments in Opposition: The opponent of the bill, the State Building and Construction Trades Council, argue that the bill should include requirements for utilization of a sk illed and trained workforce, pay prevailing wages, and require use of apprentices. They also argue that the bill would “significantly limit the opportunity for public review by making housing by right on any property owned by a local educational agency.” I t should be noted that the bill does not propose to make such housing by right. Committee Amendments: The committee may wish to consider the following amendments to help improve the functionality of this bill in serving to facilitate housing for teachers and other employees of LEAs:  Move the contents of the bill from the Education Code to the Government Code, as the Government Code is the location of planning and zoning law;  Align with Teacher Housing Act by: o Specifying that a majority of the units must be affordable to lower income or moderate-income households, instead of 50 percent; and o Requiring that units that are not occupied by local educational agency employees be offered first to local public employees, and then to general members of the public.  Specifying that, on school district property, qualifying housing projects must be an “allowable use” instead of an “authorized use,” so as to ensure that it is clear that projects are still subject to local discretionary processes and review under CEQA;  Specifying the objective standards that the project must meet, including: o Defining the “development footprint” as the portion of the property that is developed for the housing development, inclusive of parking and roadways developed internal to the site to serve the housing development, and other above- ground improvements developed to serve the housing development. This definition is necessary to account for the fact that the housing would only be developed on a portion of a larger school district site. o Establishing a minimum residential density for the development footprint that is the greater of either:  The residential density already permitted by the local government; or AB 2295 Page 6  The density deemed appropriate in Housing Element law to facilitate the development o f multi-family housing (generally 30 units per acre in urban areas, 20 in suburban areas, and 10 in rural areas); o Clarifying that the allowed height must be what is allowed by the local government if the local government’s allowed height exceeds 30 feet; a nd o Requiring that the site be adjacent to a site that permits residential use, to minimize instances where a school district proposes housing on a potentially inappropriate site, such as on a bus yard surrounded by industrial uses.  Revise the definition of a local education agency to exclude charter schools, as they often function outside the purview of or with limited oversight by the school district.  Remove the ability for the funds derived from the housing development project to be used for general operating purposes of the LEA, in recognition that current law limits the use of similar revenues to development and maintenance of facilities.  Remove the provision that a qualified housing development project on real property owned by an LEA shall not be subject to oversight and approval by the Department of General Services. Related Legislation: SB 1413 (Leno), Chapter 732, Statutes of 2016: This bill established the Teacher Housing Act of 2016 to facilitate the acquisition, construction, rehabilitation, a nd preservation of affordable housing restricted to teachers or school district employees. AB 3308 (Gabriel), Chapter 199, Statutes of 2020: This bill expanded allowed occupancy under the Teacher Housing Act of 2016 to local public employees and other members of the public, while maintaining the right for school districts to prioritize their own employees. SB 6 (Caballero), 2021: This bill would allow residential uses to be an allowable use on commercially-zoned land, as specified. This bill is pending hearing in this committee. Double referred: This bill was also referred to the Assembly Committee on Local Government, where it will be heard should it pass out of this committee. REGISTERED SUPPORT / OPPOSITION: Support CityLAB - UCLA (Sponsor) East Bay for Everyone Landed Los Angeles Unified School District San Francisco Bay Area Planning and Urban Research Association SV@Home Action Fund Terner Center for Housing Innovation at the University of California, Berkeley Support If Amended California Scho ol Boards Association AB 2295 Page 7 Opposition Oppose Unless Amended California State Pipe Trades Council Coalition of California Utility Employees International Union of Elevator Constructors, Local 18 International Union of Elevator Constructors, Local 8 State Building & Construction Trades Council of California Western States Council Sheet Metal, Air, Rail and Transportation Analysis Prepared by: Steve Wertheim / H. & C.D. / (916) 319-2085 california legislature—2021–22 regular session ASSEMBLY BILL No. 2328 Introduced by Assembly Member Flora (Coauthor: Senator Hurtado) February 16, 2022 An act to add Chapter 6.4 (commencing with Section 51043) to Part 1 of Division 1 of Title 5 of the Government Code, relating to local government. legislative counsel’s digest AB 2328, as introduced, Flora. Local ordinances: home experience sharing. Existing law requires a hosting platform to provide an offer or listing a residence for short-term rental on the hosting platform with a specific notice relating to certain liability considerations and risks of listing the residence. Existing law defines “hosting platform” as a marketplace that is created for the primary purpose of facilitating the rental of a residential unit, as specified. This bill would prohibit a city or county from prohibiting or effectively prohibiting the use of property as a home experience sharing unit. The bill would define “home experience sharing unit” as a privately owned, noncommercial property or residential dwelling unit that is rented partially for a fee for a period of fewer than 18 continuous hours and that does not provide sleeping accommodations to transients. The bill would authorize a city or county to reasonably regulate home experience sharing units to protect the public’s health and safety, as specified. 99 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. Vote: majority. Appropriation: no. Fiscal committee: no.​ State-mandated local program: no.​ The people of the State of California do enact as follows: line 1 SECTION 1. Chapter 6.4 (commencing with Section 51043) line 2 is added to Part 1 of Division 1 of Title 5 of the Government Code, line 3 to read: line 4 line 5 Chapter 6.4. Home Experience Sharing line 6 line 7 51043. (a)  A city or county shall not prohibit or effectively line 8 prohibit the use of property as a home experience sharing unit. line 9 (b)  A city or county may reasonably regulate home experience line 10 sharing units to protect the public’s health and safety through line 11 generally applicable ordinances or other local regulations. line 12 (c)  For purposes of this section: line 13 (1)  “Effectively prohibit” means the city or county acts or fails line 14 to act in a manner that prevents a property owner from using the line 15 owner’s property as a home experiences sharing unit after line 16 reasonable compliance with generally applicable local laws. line 17 (2)  “Home experience sharing unit” means a privately owned, line 18 noncommercial, property or residential dwelling unit that is rented line 19 partially for a fee for a period of fewer than 18 continuous hours line 20 and that does not provide sleeping accommodation to transients. line 21 (d)  The Legislature finds and declares that this section addresses line 22 a matter of statewide concern rather than a municipal affair as that line 23 term is used in Section 5 of Article XI of the California line 24 Constitution. Therefore, this section applies to all cities, including line 25 charter cities. O 99 — 2 — AB 2328 california legislature—2021–22 regular session ASSEMBLY BILL No. 2428 Introduced by Assembly Member Ramos February 17, 2022 An act to add Section 66008.1 to the Government Code, relating to development fees. legislative counsel’s digest AB 2428, as introduced, Ramos. Mitigation Fee Act: fees for improvements: timeline for expenditure. Existing law, the Mitigation Fee Act, requires a local agency that establishes, increases, or imposes a fee as a condition of approval of a development project to, among other things, determine a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed. The Mitigation Fee Act also imposes additional requirements for fees imposed to provide for an improvement to be constructed to serve a development project, or which is a fee for public improvements, as specified, including that the fees be deposited in a separate capital facilities account or fund. This bill would require a local agency that requires a qualified applicant, as described, to deposit fees for improvements, as described, into an escrow account as a condition for receiving a conditional use permit or equivalent development permit to expend the fees within 5 years of the deposit. The bill would require any fees not expended within this period to be returned to the qualified applicant. By imposing new duties on local officials, the bill would impose a state-mandated local program. 99 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. 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 66008.1 is added to the Government line 2 Code, to read: line 3 66008.1. (a)  Notwithstanding any other law, a local agency line 4 that requires a qualified applicant to deposit fees for improvements line 5 into an escrow account as a condition for receiving a conditional line 6 use permit or equivalent development permit shall expend the fees line 7 within five years of the deposit. Any fees for improvements that line 8 are collected and that are not expended within this period shall be line 9 returned to the qualified applicant. line 10 (b)  For purposes of this section, both of the following definitions line 11 apply: line 12 (1)  “Fees for improvement” means any fee imposed to provide line 13 for an improvement to be constructed to serve a development line 14 project, or which is a fee for public improvements within the line 15 meaning of subdivision (b) of Section 66000, and that is imposed line 16 by the local agency as a condition of approving the development line 17 project. line 18 (2)  “Qualified applicant” means an applicant for a conditional line 19 use permit or equivalent development permit for a business and line 20 that employs 25 or fewer employees for that business at the time line 21 the fees are deposited into the escrow account. line 22 SEC. 2. The Legislature finds and declares that the line 23 implementation of uniform and reasonable safeguards on the use line 24 of public improvement fees held in escrow is a matter of statewide line 25 concern and is not a municipal affair as that term is used in Section line 26 5 of Article XI of the California Constitution. Therefore, Section 99 — 2 — AB 2428 line 1 1 of this act adding Section 66008.1 to the Government Code line 2 applies to all cities, including charter cities. line 3 SEC. 3. No reimbursement is required by this act pursuant to line 4 Section 6 of Article XIII B of the California Constitution because line 5 a local agency or school district has the authority to levy service line 6 charges, fees, or assessments sufficient to pay for the program or line 7 level of service mandated by this act, within the meaning of Section line 8 17556 of the Government Code. O 99 AB 2428 — 3 — california legislature—2021–22 regular session ASSEMBLY BILL No. 2631 Introduced by Assembly Member O’Donnell February 18, 2022 An act to add Section 815.7 to the Government Code, relating to governmental liability. legislative counsel’s digest AB 2631, as introduced, O’Donnell. Government Claims Act. Existing law, the Government Claims Act, establishes the liability and immunity of a public entity for its acts or omissions that cause harm to persons. This bill would provide that a public entity is liable for injury relating to the effects of that public entity’s homelessness policies on another public entity. 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. Vote: majority. Appropriation: no. Fiscal committee: no.​ State-mandated local program: no.​ The people of the State of California do enact as follows: line 1 SECTION 1. Section 815.7 is added to the Government Code, line 2 to read: line 3 815.7. A public entity is liable for injury relating to the effects line 4 of that public entity’s homelessness policies on another public line 5 entity. 99 line 1 SEC. 2. The Legislature finds and declares that Section 1 of line 2 this act adding Section 815.7 to the Government Code addresses line 3 a matter of statewide concern rather than a municipal affair as that line 4 term is used in Section 5 of Article XI of the California line 5 Constitution. Therefore, Section 1 of this act applies to all cities, line 6 including charter cities. O 99 — 2 — AB 2631 SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 SB 379 THIRD READING Bill No: SB 379 Author: Wiener (D) Amended: 1/12/22 Vote: 21 PRIOR VOTES NOT RELEVANT SENATE GOVERNANCE & FIN. COMMITTEE: 3-1, 1/6/22 AYES: McGuire, Durazo, Wiener NOES: Nielsen NO VOTE RECORDED: Hertzberg SENATE ENERGY, U. & C. COMMITTEE: 11-1, 1/10/22 AYES: Hueso, Becker, Bradford, Dodd, Eggman, Gonzalez, Hertzberg, McGuire, Min, Rubio, Stern NOES: Dahle NO VOTE RECORDED: Borgeas, Grove SENATE APPROPRIATIONS COMMITTEE: 5-0, 1/20/22 AYES: Portantino, Bradford, Kamlager, Laird, Wieckowski NO VOTE RECORDED: Bates, Jones SUBJECT: Residential solar energy systems: permitting SOURCE: Environment California SPUR DIGEST: This bill requires most cities and counties to adopt an automated, online permitting system for solar energy systems and energy storage. SB 379 Page 2 ANALYSIS: Existing law: 1) Requires a city or county to approve administratively applications to install solar energy systems through the issuance of a building permit or similar nondiscretionary permit. Requires every city, county, or city and county to develop a streamlined permitting process for the installation of small residential rooftop solar energy systems, as that term is defined (Government Code §65850.5). 2) Prescribes and limits permit fees that a city or county may charge for a residential and commercial solar energy system (Government Code §66015). 3) Creates the State Energy Resources Conservation and Development Commission (known as the CEC) in the Natural Resources Agency and prescribes its duties, which include administering programs for the installation of solar energy systems (Public Resources Code §25200). This bill: 1) Requires specified cities and counties to implement an online, automated permitting platform for residential solar energy systems, as defined, that meets the following requirements: a) The platform verifies code compliance and issues permits in real time to a licensed contractor for a solar energy system that is no larger than 38.4 kilowatts alternating current nameplate rating and an energy storage system paired with a solar energy system that is no larger than 38.4 kilowatts alternating current nameplate rating. b) The platform is consistent with the system parameters and configurations, including an inspection checklist, of SolarAPP+. 2) Provides that a city or county shall not be required to pe rmit an application for a residential solar energy system or energy storage system through the online automated permitting platform pursuant to the bill if the system configuration is not eligible for SolarAPP+ at the time the application is submitted to the jurisdiction. 3) Requires a city or county to amend its solar energy system permitting ordinance to authorize a residential solar energy system and an energy storage system to use the online, automated permitting platform. SB 379 Page 3 4) Prescribes a compliance schedule for satisfying these requirements, as follows: a) Exempts the following jurisdictions: i) A county with a population of fewer than 150,000; ii) All cities within a county with a population of fewer than 150,000; and iii) A city with a population of fewer than 5,000. b) Requires a city with a population of 50,000 or fewer that is not otherwise exempt to satisfy these requirements by September 30, 2024; and c) Requires cities and counties with populations greater than 50,000 that are not otherwise exempt to satisfy the requirements by September 30, 2023. 5) Requires a city, county, or city and county, or a fire department, district, or authority, to report to the CEC when it is in compliance with these requirements, in addition to other information. 6) Requires cities and counties to self-certify their compliance with this bill’s provisions when applying for specified funds from the CEC after the applicable deadline for compliance above. 7) Requires the CEC to set guidelines for cities and counties to report to the CEC on the number of permits issued for solar energy systems and an energy storage system paired with a solar energy system and the relevant characteristics of those systems. 8) Defines various terms and makes findings and declarations to support its purposes. Background Solar energy system permitting. Although exact procedures vary by location, the procedure for approving a solar energy system permit is similar to the procedure for approving a building permit. Typically, the solar installation company or customer submits an electrical diagram and roof layout plan to the city or county building department. If the plan is approved, the installer or customer pays a permit fee and starts the installation project. In 2014, the Legislature required local governments to streamline their permitting processes for certain solar systems (AB 2188, Muratsuchi , Chapter 521). AB 2188 required every city and county, including charter cities, to adopt an ordinance that SB 379 Page 4 creates an expedited, streamlined permitting process for small residential rooftop solar energy systems. AB 2188 also limited local governments to administrative— nondiscretionary—review of solar energy system permits. Local governments cannot review permits based on standards other than health or safety, so they cannot require design review. SolarAPP+. SolarAPP+ is an online platform for rapid permitting of solar energy systems and associated battery storage that can check an application for code compliance and instantly issue an approval or denial. The National Renewable Energy Laboratory (NREL) developed this software in collaboration with the various code compliance and solar industry entities. In November 2020, the City of Pleasant Hill was the first city in the nation to issue a permit for a solar energy system using SolarAPP+. Grant funding for online solar permitting. The 2021-22 Budget appropriated $20 million to the State Energy Resources Conservation and Development Commission (Energy Commission) to support a grant program for cities, counties, or cities and counties to establish online solar permitting (SB 129, Skinner, 2021). The Energy Commission has begun to develop the California Automated Permit Processing Program (CalAPP) to implement this grant program and anticipates holding a public workshop on CalAPP in early 2022. Concern over application processing delays. According to data collected by NREL, the median time to permit approval in California is four days, although NREL also notes that delays can add weeks or months to the process. Despite the existing requirements regarding solar energy system permitting, the solar industry remains concerned with permitting delays. Some advocates want the Legislature to require local agencies to adopt SolarAPP+ or similar automated systems for faster permitting of solar energy systems and storage. Comments 1) Purpose of the bill. According to the author, “SB 379 requires jurisdictions of a certain size to implement an automated online solar permitting system for residential rooftop solar systems. Although the costs of solar hardware have decreased by 80% in the past 15 years , the ‘soft’ costs associated with permitting are still a massive barrier. Beyond the cost, the unnecessary delays associated with solar permitting result in 10% of applicants rescinding their application prior to approval. This is a major hindrance to California’s clean energy goals, as current models suggest that the state will need to triple solar and wind capacity in order to meet 100% renewable energy by 2045. In order to address this delay and the costs associated with permitting, SB 379 will require SB 379 Page 5 that an online automated permitting system be utilized. In jurisdictions such as San Jose, the implementation of an automated system resulted in an increase in solar applications of over 600%. This system and the increase in applications that followed not only generated more revenue for San Jose through permitting fees, but also allowed for building officials to focus on other administrative tasks due to the ease and simplicity that an automated online system brings. Although San Jose created their own software, the National Renewable Energy Laboratory (NREL), in coordination with the Department of Energy, solar industry partners, and building safety experts, has created an open source software called SolarAPP+. SolarAPP+ allows for a simplified onboarding and adoption of automated permitting, as it only requires the jurisdiction to have an email account. SB 379 does not require that SolarAPP+ be utilized, but ensures that some form of automated online permitting be available so that residents can be efficiently approved for solar systems, and so that building departments are no longer inundated and slowed by solar permits.” 2) Say “please.” SolarAPP+ boasts useful capabilities. However, SolarAPP+ just recently began rolling out to interested jurisdictions, and as of December 1, 2021, only six jurisdictions nationwide have adopted the application, with several more piloting it. SB 379 requires most jurisdictions in the state to adopt an application for permitting that has not been extensively deployed. As adoption becomes more widespread, unexpected issues with SolarAPP+ may arise. Furthermore, this bill presumes that local governments are intentionally thwarting solar installations and wouldn’t adopt SolarAPP+ on their own, but for a mandate. But local governments that haven’t yet adopted it may be simply be cautiously waiting to see how the application works in early-adopting jurisdictions. An alternative approach to encouraging the use of SolarAPP+ and other automated permitting systems could be to wait fo r the recently enacted CalAPP program to award funding, and if uptake remains slow after SolarAPP+ has been more widely adopted and proven successful, to only then consider more forceful direction to local governments. FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes According to the Senate Appropriations Committee:  One-time CEC costs of approximately $150,000 for one PY of staff time to develop and adopt guidelines through the Office of Administrative Law. The CEC may also incur additional one-time and ongoing costs to establish and administer systems to accommodate the solar energy and storage system SB 379 Page 6 permitting data reported by cities and counties to the CEC. (Energy Resources Programs Account)  By requiring specified local officials to report information on the numbers of permits issued and the characteristics of solar energy and storage systems to the CEC, this bill creates a state-mandated local program. To the extent the Commission on State Mandates determines that the reporting provisions create a new program or impose a higher level of service on local agencies, those local agencies could claim state reimbursement for those local costs (General Fund). Staff notes that local costs to implement an online automated permitting platform are not likely to be reimbursable because cities and counties may set permit fees to offset those costs. SUPPORT: (Verified 1/21/22) Environment California (co-source) SPUR (co-source) ACR Solar All Valley Solar, Inc. Alternative Energy Systems Inc. Aurora Aztec Solar California Association of Realtors California Solar and Storage Association Elizares Solar Consulting Energy Toolbase Esdec, Ironridge, and PanelClaw First Response Solar McCalmont Engineering Mosaic Planet Plan Sets Pure Power Solutions Solar Sense PV, Inc. Solar Works SolarCraft Spectrum Energy Development Inc. Summit Technology Group SunEarth Sunrun Symmetric Energy Taylor Energy SB 379 Page 7 TerraVerde Energy Tesla The Climate Center Tigo Energy Treepublic Solar OPPOSITION: (Verified 1/21/22) None received Prepared by: Anton Favorini-Csorba / GOV. & F. / (916) 651-4119 1/21/22 10:58:30 **** END **** SENATE COMMITTEE ON GOVERNANCE AND FINANCE Senator Anna M. Caballero, Chair 2021 - 2022 Regular Bill No: SB 897 Hearing Date: 4/7/22 Author: Wieckowski Tax Levy: No Version: 3/14/22 Fiscal: Yes Consultant: Favorini-Csorba ACCESSORY DWELLING UNITS: JUNIOR ACCESSORY DWELLING UNITS Requires local agencies to allow ADUs of up to 25 feet in height (from the current 16 feet) and makes various other changes to ADU law. Background The Legislature has long identified accessory dwelling units (ADUs), also known as second units, in-law apartments, or “granny flats,” as a valuable form of housing for family members, students, the elderly, in-home health care providers, the disabled, and others, at below market prices within existing neighborhoods. In 1982, the Legislature first provided a framework for local governments to enact ordinances that permit the construction of ADUs, while preserving local government flexibility to regulate the units as necessary. When fewer ADUs than anticipated were developed, the Legislature significantly amended ADU law to address some of the barriers that property owners encountered while trying to develop them (AB 1866, Wright, 2002). Among other provisions, AB 1866 allowed local governments to adopt an ordinance that allows the creation of ADUs in single-family and multi-family residential zones and to set standards on the units regarding parking, height, setback, maximum size, and potential adverse impacts on historic places. AB 1866 also prohibited local agencies from adopting an ordinance that entirel y prohibits ADUs unless it made specific findings regarding adverse impacts from the units. Some local governments continued to impose onerous requirements or prohibit ADUs entirely. Recent ADU law changes. In 2016, the Legislature revised ADU laws to address some of the barriers to ADU creation that had been adopted by local governments (SB 1069, Wieckowski and AB 2299, Bloom). These changes to ADU law prohibited local ordinances that entirely ban ADUs and required a local agency to, among other provisions:  Designate areas within the jurisdiction where ADUs may be permitted;  Impose standards on ADUs, including minimum lot sizes and requiring ADUs to be set back from the property line (“setbacks”);  Consider permit applications within 120 days;  Approve or disapprove an application for an ADU ministerially without discretionary review if the local government does not have an ADU ordinance when it receives a permit application; and  Approve building permits to create an ADU ministerially if the ADU is within an existing residence, has independent exterior access, and meets certain fire safety requirements. SB 897 (Wieckowski) 3/14/22 Page 2 of 7 These bills also limited the cases when local agencies could require new utility connections for water and sewer, and limited the fees to be proportionate to the burden created by the ADU. AB 2408 (Thurmond, 2016) also allowed local agencies to adopt an ordinance regulating Junior ADUs (JADUs), which are smaller ADUs that are under 500 square feet, are contained entirely within an existing single-family residence, and may or may not have separate sanitation facilities. In 2017, the Legislature clarified portions of the law (SB 229, Wieckowski and AB 494, Bloom). 2019 changes. The Legislature expanded on many aspects of ADU law in 2019 through a set of three bills: SB 13 (Wieckowski), AB 68 (Ting), and AB 881 (Bloom). The most significant provisions of these bills:  Require local governments to allow at least an 800 square foot ADU of up to 16 feet on the lot, regardless of local zoning standards;  Require local governments to allow one ADU and one junior ADU (JADU) on a single- family parcel (even if the jurisdiction has not adopted an ordinance allowing JADUs);  Allow up to two detached units on the same site as an existing multifamily dwelling and the ministerial creation of multiple ADUs within the portions of existing multifamily buildings that are not used as livable space, as long as each unit complies with state building standards for dwellings. Local governments must allow at least one such ADU and at least 25% of the number of existing multifamily units;  Deem approved an application for an ADU if a local government doesn’t act on it within 60 days;  Prohibit local governments from requiring owner occupancy, until January 1, 2025;  Exempt ADUs under 750 square feet from impact fees and require impact fees for larger ADUs to be proportional to the square footage of the primary unit;  Allows, until January 1, 2030, ADU owners to request a delay of up to five years in any enforcement actions for violations of building standards if the enforcement agency determines that the standards are not necessary to protect public health and safety; and  Requires the Department of Housing and Community Development (HCD) to notify local governments if they are in violation of state law and allows HCD to refer alleged violations to the Attorney General. The Bay Area Council wants the Legislature to make additional changes to ADU laws to further spur ADU construction. Proposed Law Senate Bill 897 requires local agencies to allow ADUs of up to 25 feet in height (from the current 16 feet). The bill also makes various other changes to ADU law. SB 897 repeals the January 1, 2025 sunset date on the prohibition on local owner-occupancy requirements and repeals the existing owner-occupancy requirement in JADU law. Existing law allows for the construction of ADUs on sites with an existing or proposed single- family dwelling, or with an existing (but not proposed) multifamily dwelling. SB 897 additionally allows for the construction of ADUs along with a proposed multifamily dwelling. SB 897 (Wieckowski) 3/14/22 Page 3 of 7 Existing law requires a JADU to be contained within a proposed or existing single-family residence. SB 897 allows a JADU to be attached to a detached accessory dwelling unit and clarifies that enclosed uses within the residence are considered a part of the proposed or existing single-family residence. Existing law provides that local agencies can impose local building code requirements that apply to detached dwellings, as appropriate. SB 897 strikes “as appropriate” and instead provides that the construction of an accessory dwelling unit shall not constitute an occupancy change under the local building code. Existing law prohibits local agencies from requiring sprinklers in the ADU if they are not required for the primary residence. SB 897 provides that constructing an ADU does not trigger a requirement for fire sprinklers to be installed in the proposed or existing primary dwelling. Existing law requires local agencies to act on an application for an ADU or JADU within 60 days of receiving the completed application, unless the application ADU or JADU is submitted along with a proposed single-family dwelling, in which case the local agency may delay action until it approves or denies the single-family dwelling. SB 897 requires a local agency to instead approve or deny applications within those timeframes, and makes changes to conform with the new authority in SB 897 to develop ADUs along with proposed multifamily dwellings. Existing law allows ADUs to be constructed in the same location and to the same dimensions as an existing structure, such as a garage, without complying with setback requirements. SB 897 requires local ADU ordinances to review and issue a demolition permit for a detached garage that is to be replaced with an ADU at the same time as the application for the ADU. The bill also prohibits a requirement for written notice or posting a placard for the demolition of a detached garage that is to be replaced with an ADU unless the property is located within an architecturally and historically significant historic district. Existing law prohibits a local agency from establishing requirements for ADU size that would not allow at least an 800 square foot ADU that is 16 feet in height, with four-foot side and rear yard setbacks. SB 897 additionally prohibits requirements for a zoning clearance or separate zoning review for either attached or detached dwellings that does not permit at least an 800 square foot ADU that is at least 25 feet in height with four-foot side and rear yard setbacks. It also prohibits a local agency from requiring a modification of an existing multifamily dwelling that exceeds a height of 25 feet or has side and rear setbacks of less than 4 feet, or rejecting an application for an ADU because the existing dwelling meets one of those conditions. Existing law allows local agencies to impose specified zoning standards on ADUs. SB 897 provides that standards that local agencies impose on ADUs must be objective and defines the term using a definition from existing law. Existing law prohibits a local agency from imposing parking standards on ADUs in specified circumstances, and otherwise restricts the amount and configuration of off-street parking that a local agency may require. SB 897 additionally prohibits parking standards on an ADU when a permit application for an ADU is submitted with an application for a new single-family home. The bill also requires a local agency, when detached ADUs are proposed on the same lot with a proposed new multifamily dwelling, to reduce by two parking spaces for each ADU. SB 897 also repeals a provision stating that JADU law shall not be construed to prohibit local agencies from adopting an ordinance or regulation related to parking that applies to a single-family SB 897 (Wieckowski) 3/14/22 Page 4 of 7 residence that contains a JADU, as long as those requirements apply uniformly to all single- family residences. Additionally, SB 897 provides that if a JADU does not include separate sanitation facilities, the JADU must include a separate entrance and an interior entry to the main living area. Amnesty and enforcement delay. Under SB 897, a local agency cannot deny a permit for a constructed, but unpermitted, ADU for any of the following reasons:  The ADU is in violation of the building code;  The ADU does not comply with ADU law; or  There are nonconforming zoning conditions or unpermitted structures that are not affected by the construction of the ADU. However, a local agency may deny a permit for one of the above reasons if the local agency makes a finding that correcting violation is necessary to protect the health and safety of the public or occupants of the structure. SB 897 provides that if local agency grants a request to delay enforcement of building standards under existing law to an ADU, the delay applies to a violation of building codes for the primary dwelling as well, as long as correcting the violation isn’t necessary to protect health and safety. Grant program. SB 897 directs HCD to establish and administer a grant program to fund construction and maintenance of ADUs and JADUs, upon appropriation by the Legislature. SB 897 also makes technical changes and includes findings and declarations to support its purposes. State Revenue Impact No estimate. Comments 1. Purpose of the bill. According to the author, “California was and continues to be in an ongoing housing crisis since I introduced my first ADU bill in 2016. While California has seen a significant increase in the amount of ADU building permit applications and ADU construction since that time, the lack of housing, and in particular affordable housing, is one of the most significant drivers of institutional and generational poverty cycles and will not be resolved until more housing can be developed. Eliminating any unnecessary barriers to ADU construction is a cost-effective approach that will allow homeowners to make better use of their property. ADU’s can provide additional rental availability in their communities and allow homeowners to create more financial stability for themselves. Additionally, ADU’s provide housing options for those homeowners who want to age in place as well as providing flexible living space for their family, friends, or caregivers. SB 897 builds upon previous ADU legislation by addressing some of the remaining barriers to ADU construction and supporting the development of housing that is more affordable by design.” 2. Too soon? SB 897 continues what has been a nearly annual tradition of numerous significant revisions to ADU law. Beginning in 2016, when the Legislature rewrote ADU law, the SB 897 (Wieckowski) 3/14/22 Page 5 of 7 Legislature has enacted 11 measures that amend ADU law to some degree, including three bills in 2019 that sent local agencies back to the drawing board on their ADU ordinances, including to prohibit local agencies from requiring owner-occupancy until January 1, 2025. SB 897 proposes more significant changes that will require local agencies to update their ordinances yet again. Among those changes are to repeal the sunset on the prohibition on owner-occupancy requirements--less than three years into the six-year pilot program. Given the short amount of time that has elapsed, it is unclear whether the Legislature has enough information to determine whether the prohibition on owner-occupancy requirements have led to undesirable changes in the ownership of ADUs, such as to encourage large institutional investors with little stake in a community to invest in ADU development and ownership. Should the Legislature wait on further changes to ADU laws until local governments have had a chance to catch their breath and the Legislature can evaluate the effect of recent changes on ADU development? 3. Sky high. ADUs have historically been billed as “invisible density”—housing units that can be added in a way that doesn’t change neighborhood character or impact nearby properties, in contrast with larger developments that may be taller or otherwise more visible. ADU sizes are limited under current law, including to effectively limit them to being one story tall, so that they don’t loom over neighbors’ yards and remain obscured from view by the primary dwelling. In return, the Legislature has granted ADUs various special concessions, such as exemptions from local setback requirements and breaks on impact fees to make them more economically feasible at smaller sizes. SB 897 requires local governments to allow ADUs of up to 25 feet tall—two stories—regardless of local zoning standards. This additional height continues the trend of diminishing the distinction between ADUs and any other residence, without any reduction in the benefits that ADUs receive for being a different type of housing. It also poses a particular challenge in areas where ADUs are being added next to existing residences, where adjacent homeowners may have an expectation of privacy. Finally, cities and counties already possess the ability to exceed state minimum sizes for ADUs in jurisdictions where concerns over privacy or neighborhood character are less keenly felt. The Committee may wish to consider amending SB 897 to reduce the height that local agencies must allow or to limit the circumstances under which an ADU of 25 feet must be allowed to account for local conditions or privacy concerns. 4. Parking. Local agencies impose parking standards for a variety of reasons, including to provide sufficient parking for existing or new residents, or to ensure safety during wildfires or other natural hazards that may require emergency response or evacuation along narrow roads. Nonetheless, state law grants many parking-related benefits to ADUs, including outright exemptions as well as the option to park vehicles through tandem parking (two or more vehicles lined up behind each other). SB 897 grants additional parking benefits where ADUs are being constructed along with new single-family or multifamily housing. But these circumstances are precisely the case where it is easiest to add new parking—when the developer is able to configure parking on an undeveloped lot without having to fit spaces in around existing structures. The Committee may wish to consider amending SB 897 to delete the waiver of parking requirements in cases where an ADU is being constructed along with a new single- family dwelling. 5. Safety first? The state’s building codes are updated on a triennial cycle with input from builders, building officials, fire agencies, energy efficiency experts, and others. These updates include changes prompted by case studies or other research into how to make buildings safer and healthier for occupants, and more energy efficient to combat climate change. One component of ensuring that buildings meet the proper code requirements is the occupancy classification of a structure—how is it intended to be used, and how many people are likely to be in the structure at SB 897 (Wieckowski) 3/14/22 Page 6 of 7 a given time. For example, garages or pool houses are not classified as residential occupancies because people aren’t expected to sleep there. But as they are converted to ADUs, these structures must undergo a change in occupancy, which triggers different code requirements. Similarly, more stringent code requirements kick in as residential buildings get larger: buildings with three or more attached units must include sprinklers and other fire safety measures, among other safety standards, because more occupants means a higher chance of a fire or other life safety threat and greater potential consequences when such an event occurs. As a result, adding an attached ADU to an existing duplex triggers costly requirements in the main dwelling units as well as the new unit. SB 897 contains two provisions that reduce the stringency of building codes that apply to ADUs with the goal of reducing construction costs. First, it prohibits local agencies from requiring a change in occupancy when an ADU is built, limiting the ability of local officials to require the correct, and safest, building standards for ADUs. Second, it creates an amnesty program for unpermitted ADUs by prohibiting local agencies from denying permits to legalize already constructed ADUs unless there is a life safety issue that needs to be corrected. These provisions presume that a structure is safe unless a local agency affirmatively asserts otherwise. By limiting the building code provisions that ADUs must comply with, SB 897’s requirements will likely reduce the cost of constructing or legalizing them. But these savings come with side effects. The clearest loser is the climate: energy codes rarely have an immediate public safety benefit and can have significant upfront costs for developers, and so are least likely to be followed. But SB 897’s changes also undermine the legitimate permitting requirements imposed by local agencies. As drafted, the amnesty provision would allow a property owner to build an unpermitted ADU that does not comply with building codes or ADU law, apply for a permit after the fact, and dare the building official to assert a life safety concern. In any case, the local agency would not be able to enforce setbacks or height limits, even if the agencies limitations were consistent with ADU law. To minimize the unintended consequences of SB 897, the Committee may wish to consider amending SB 897 to:  Grant additional certainty regarding what constitutes a violation that needs to be corrected to protect the health and safety of the public or occupants of the structure by stating that any conditions that cause a building to be declared substandard, as defined in existing law, automatically constitutes a health and safety violation;  Establish a date before which an unpermitted ADU must have been constructed to benefit from the amnesty in the bill; and  Clarify that a local agency may not require a change the residential group occupancy designation, but otherwise can require a change in occupancy. 6. Mandate. The California Constitution requires the state to reimburse local governments for the costs of new or expanded state mandated local programs. Because SB 897 imposes new duties on local officials regarding approval of ADUs and JADUs, Legislative Counsel says that the bill imposes a new state mandate. SB 897 disclaims the state's responsibility for providing reimbursement by citing local governments’ authority to charge for the costs of implementing the bill’s provisions. 7. Incoming! The Senate Housing Committee approved SB 897 at its March 24th hearing on a vote of 5-1. The Senate Governance and Finance Committee is hearing SB 897 as the committee of second reference. SB 897 (Wieckowski) 3/14/22 Page 7 of 7 Support and Opposition (4/4/22) Support: Bay Area Council – SPONSOR AARP California Apartment Association California Yimby Midpen Housing Corporation South California Rental Housing Association South Pasadena Residents for Responsible Growth Terner Center for Housing Innovation At the University of California, Berkeley Opposition: 2 Individuals California Association of Code Enforcement Officers California Association of Realtors California Building Officials California State Association of Counties (CSAC) Catalysts for Local Control City of Bakersfield Community Associations Institute - California Legislative Action Committee Hills2000_friends of The Hills League of California Cities Mission Street Neighbors Rural County Representatives of California (RCRC) Urban Counties of California -- END -- AMENDED IN SENATE APRIL 7, 2022 AMENDED IN SENATE MARCH 16, 2022 SENATE BILL No. 1338 Introduced by Senators Umberg and Eggman February 18, 2022 An act to add Part 1.3 (commencing with Section 5565) to Division 5 of Section 1374.723 to the Health and Safety Code, to amend Section 1370.01 of the Penal Code, and to add Part 8 (commencing with Section 5970) to Division 5 of the Welfare and Institutions Code, relating to mental health. legislative counsel’s digest SB 1338, as amended, Umberg. Community Assistance, Recovery, and Empowerment (CARE) Court Program. Existing (1)  Existing law, the Assisted Outpatient Treatment Demonstration Project Act of 2002, known as Laura’s Law, requires each county to offer specified mental health programs, unless a county or group of counties opts out by a resolution passed by the governing body, as specified. Existing law defines “assisted outpatient treatment” to mean categories of outpatient services that have been ordered by a court, as prescribed. law, the Lanterman-Petris-Short Act, provides for short-term and longer-term involuntary treatment and conservatorships for people who are determined to be gravely disabled. This bill would establish the Community Assistance, Recovery, and Empowerment (CARE) Court Program to connect a person struggling with untreated mental illness and substance use disorders with a court-ordered CARE plan. The bill would authorize a court to order an adult person who is suffering from a mental illness and a substance use 97 disorder and who lacks medical decisionmaking capacity to obtain treatment and services under a CARE plan that is managed by a CARE team, as specified. The bill would require each county to participate in providing services under the program. By imposing new duties on counties, 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. This bill would enact the Community Assistance, Recovery, and Empowerment (CARE) Act, which would authorize specified people to petition a civil court to create a CARE plan and implement services, to be provided by county behavioral health agencies, to provide behavioral health care, stabilization medication, and housing support to adults who are suffering from schizophrenia spectrum and psychotic disorders and who lack medical decisionmaking capacity. The bill would specify the process by which the petition is filed and reviewed, including requiring the petition to be signed under penalty of perjury, and to contain specified information, including the acts that support the petitioner’s belief that the respondent meets the CARE criterion. The bill would also specify the schedule of review hearings required if the respondent is ordered to comply with a one-year CARE plan by the court. The bill would authorize the CARE plan to be extended for up to one year and prescribes the requirement for the graduation plan that is required upon leaving the CARE program. By expanding the crime of perjury and imposing additional duties on the county behavioral health agencies, this bill would impose a state-mandated local program. This bill would include in the CARE program the respondent’s right to have a supporter and counsel at all proceedings. The bill would require the California Health and Human Services Agency, subject to appropriation, to administer the CARE Supporter program, which would make available a trained supporter to each respondent. This bill would authorize the court, at any time during the proceedings if it finds the county not complying with court orders, to fine the county up to $1,000 per day and, if the court finds persistent noncompliance, to appoint a receiver to secure court-ordered care for the respondent at the county’s cost. 97 — 2 — SB 1338 (2)  Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care. Existing law requires health care service plans to provide coverage for medically necessary treatment of mental health and substance use disorders. Violation of the Knox-Keene Act is a crime. This bill would require health care service plans to cover the cost of developing an evaluation for CARE services and the provision of all health care services for an enrollee when required or recommended for the enrollee pursuant to a CARE plan, as specified, without cost sharing. By creating a new crime, this bill would impose a state-mandated local program. (3)  Existing law prohibits a person from being tried or adjudged to punishment while that person is mentally incompetent. Existing law establishes a process by which a defendant’s mental competency is evaluated and by which the defendant receives treatment, with the goal of returning the defendant to competency. Existing law suspends a criminal action pending restoration to competency. This bill, for misdemeanor defendants who have been determined to be incompetent to stand trial, would authorize the court to refer the defendant to the CARE program. (4)  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. 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. The Legislature finds and declares all of the line 2 following: line 3 (a)  Thousands of Californians are suffering from untreated line 4 schizophrenia spectrum and psychotic disorders, leading to risks 97 SB 1338 — 3 — line 1 to their health and safety and increased homelessness, line 2 incarceration, hospitalization, conservatorship, and premature line 3 death. These individuals, families, and communities deserve a path line 4 to care and wellness. line 5 (b)  With advancements in behavioral health treatments, many line 6 people with untreated schizophrenia spectrum and psychotic line 7 disorders can stabilize, begin healing, and thrive in line 8 community-based settings, with the support of behavioral health line 9 services, stabilizing medications, and housing. But too often this line 10 comprehensive care is only provided after arrest, conservatorship, line 11 or institutionalization. line 12 (c)  A new approach is needed to act earlier and to provide line 13 support and accountability, both to individuals with these untreated line 14 severe mental illnesses and to local governments with the line 15 responsibility to provide behavioral health services. California’s line 16 civil courts will provide a new process for earlier action, support, line 17 and accountability, through a new Community Assistance, line 18 Recovery, and Empowerment (CARE) Court Program. line 19 (d)  Self-determination and civil liberties are important line 20 California values that can be advanced and protected for line 21 individuals with these untreated severe mental illnesses and without line 22 current capacity for medical decisionmaking, with the line 23 establishment of a new CARE Supporter role, in addition to legal line 24 counsel, for CARE proceedings. line 25 (e)  California continues to act with urgency to expand line 26 behavioral health services and to increase housing choices and line 27 end homelessness for all Californians. CARE provides a vital line 28 solution for some of the most ill and most vulnerable Californians. line 29 SEC. 2. Section 1374.723 is added to the Health and Safety line 30 Code, to read: line 31 1374.723. (a)  A health care service plan contract issued, line 32 amended, renewed, or delivered on or after July 1, 2023, that line 33 covers hospital, medical, or surgical expenses shall cover the cost line 34 of developing an evaluation pursuant to Section 5977 of the line 35 Welfare and Institutions Code and the provision of all health care line 36 services for an enrollee when required or recommended for the line 37 enrollee pursuant to a care plan approved by a court in accordance line 38 with the court’s authority under Sections 5977 and 5982 of the line 39 Welfare and Institutions Code. 97 — 4 — SB 1338 line 1 (b)  (1)  A health care service plan shall not require prior line 2 authorization for services provided pursuant to a care plan line 3 approved by a court under the CARE program. line 4 (2)  A health care service plan may conduct a postclaim review line 5 to determine appropriate payment of a claim. Payment for services line 6 subject to this section may be denied only if the health care service line 7 plan reasonably determines the enrollee was not enrolled with the line 8 plan at the time the services were rendered, the services were never line 9 performed, or the services were not provided by a health care line 10 provider appropriately licensed or authorized to provide the line 11 services. line 12 (3)  Notwithstanding paragraph (1), a health care service plan line 13 may require prior authorization for services as permitted by the line 14 department pursuant to subdivision (e). line 15 (c)  (1)  A health care service plan shall provide for line 16 reimbursement of services provided to an enrollee pursuant to this line 17 section at the greater of either of the following amounts: line 18 (A)  The health plan’s contracted rate with the provider. line 19 (B)  The fee-for-service or case reimbursement rate paid in the line 20 Medi-Cal program for the same or similar services, including line 21 prescription drugs, as identified by the State Department of Health line 22 Care Services. line 23 (2)  A health care service plan shall provide reimbursement for line 24 services provided pursuant to this section in compliance with the line 25 requirements for timely payment of claims, as required by this line 26 chapter. line 27 (d)  Services provided to an enrollee pursuant to a CARE plan line 28 shall not be subject to copayment, coinsurance, deductible, or any line 29 other form of cost sharing. An individual or entity shall not bill line 30 the enrollee or subscriber, nor seek reimbursement from the line 31 enrollee or subscriber, for services provided pursuant to a CARE line 32 plan. line 33 (e)  No later than July 1, 2023, the director of the Department line 34 of Managed Health Care may issue guidance to health care service line 35 plans regarding compliance with this section. This guidance shall line 36 not be subject to the Administrative Procedure Act (Chapter 3.5 line 37 (commencing with Section 11340) of Part 1 of Division 3 of Title line 38 2 of the Government Code). Guidance issued pursuant to this line 39 subdivision shall be effective only until the director adopts line 40 regulations pursuant to the Administrative Procedure Act. 97 SB 1338 — 5 — line 1 (f)  This section does not apply to Medi-Cal managed care line 2 contracts entered pursuant to Chapter 7 (commencing with Section line 3 14000), Chapter 8 (commencing with Section 14200), or Chapter line 4 8.75 (commencing with Section 14591) of Part 3 of Division 9 of line 5 the Welfare and Institutions Code, between the State Department line 6 of Health Care Services and a health care service plan for enrolled line 7 Medi-Cal beneficiaries. line 8 (g)  This section shall become operative on July 1, 2023. line 9 SEC. 3. Section 1370.01 of the Penal Code is amended to read: line 10 1370.01. (a)  If the defendant is found mentally competent, the line 11 criminal process shall resume, and the trial on the offense charged line 12 or hearing on the alleged violation shall proceed. line 13 (b)  If the defendant is found mentally incompetent, the trial, line 14 judgment, or hearing on the alleged violation shall be suspended line 15 and the court may do either of the following: line 16 (1)  (A)  Conduct a hearing, pursuant to Chapter 2.8A line 17 (commencing with Section 1001.35) of Title 6, and, if the court line 18 deems the defendant eligible, grant diversion pursuant to Section line 19 1001.36 for a period not to exceed one year from the date the line 20 individual is accepted into diversion or the maximum term of line 21 imprisonment provided by law for the most serious offense charged line 22 in the misdemeanor complaint, whichever is shorter. line 23 (B)  If the court opts to conduct a hearing pursuant to this line 24 paragraph, the hearing shall be held no later than 30 days after the line 25 finding of incompetence. If the hearing is delayed beyond 30 days, line 26 the court shall order the defendant to be released on their own line 27 recognizance pending the hearing. line 28 (C)  If the defendant performs satisfactorily on diversion pursuant line 29 to this section, at the end of the period of diversion, the court shall line 30 dismiss the criminal charges that were the subject of the criminal line 31 proceedings at the time of the initial diversion. line 32 (D)  If the court finds the defendant ineligible for diversion based line 33 on the circumstances set forth in subdivision (b) or (d) of Section line 34 1001.36, the court may, after notice to the defendant, defense line 35 counsel, and the prosecution, hold a hearing to determine whether line 36 to do any of the following: line 37 (i)  Order modification of the treatment plan in accordance with line 38 a recommendation from the treatment provider. line 39 (ii)  Refer the defendant to assisted outpatient treatment pursuant line 40 to Section 5346 of the Welfare and Institutions Code. A referral 97 — 6 — SB 1338 line 1 to assisted outpatient treatment may only occur in a county where line 2 services are available pursuant to Section 5348 of the Welfare and line 3 Institutions Code, and the agency agrees to accept responsibility line 4 for treatment of the defendant. A hearing to determine eligibility line 5 for assisted outpatient treatment shall be held within 45 days after line 6 the date of the referral. If the hearing is delayed beyond 45 days, line 7 the court shall order the defendant, if confined in county jail, to line 8 be released on their own recognizance pending that hearing. If the line 9 defendant is accepted into assisted outpatient treatment, the charges line 10 shall be dismissed pursuant to Section 1385. line 11 (iii)  Refer the defendant to the county conservatorship line 12 investigator in the county of commitment for possible line 13 conservatorship proceedings for the defendant pursuant to Chapter line 14 3 (commencing with Section 5350) of Part 1 of Division 5 of the line 15 Welfare and Institutions Code. A defendant shall only be referred line 16 to the conservatorship investigator if, based on the opinion of a line 17 qualified mental health expert, the defendant appears to be gravely line 18 disabled, as defined in subparagraph (A) of paragraph (1) of line 19 subdivision (h) of Section 5008 of the Welfare and Institution line 20 Code. Any hearings required in the conservatorship proceedings line 21 shall be held in the superior court in the county of commitment. line 22 The court shall transmit a copy of the order directing initiation of line 23 conservatorship proceedings to the county mental health director line 24 or the director’s designee and shall notify the county mental health line 25 director or their designee of the outcome of the proceedings. Before line 26 establishing a conservatorship, the public guardian shall investigate line 27 all available alternatives to conservatorship pursuant to Section line 28 5354 of the Welfare and Institutions Code. If a petition is not filed line 29 within 60 days of the referral, the court shall order the defendant, line 30 if confined in county jail, to be released on their own recognizance line 31 pending conservatorship proceedings. If the outcome of the line 32 conservatorship proceedings results in the establishment of line 33 conservatorship, the charges shall be dismissed pursuant to Section line 34 1385. line 35 (iv)  Refer the defendant to the CARE program pursuant to line 36 Section 5978 of the Welfare and Institutions Code. A hearing to line 37 determine eligibility for CARE shall be held within 14 days after line 38 the date of the referral. If the hearing is delayed beyond 14 days, line 39 the court shall order the defendant, if confined in county jail, to line 40 be released on their own recognizance pending that hearing. If 97 SB 1338 — 7 — line 1 the defendant successfully completes CARE, the charges shall be line 2 dismissed pursuant to Section 1385. line 3 (2)  Dismiss the charges pursuant to Section 1385. If the criminal line 4 action is dismissed, the court shall transmit a copy of the order of line 5 dismissal to the county mental health director or the director’s line 6 designee. line 7 (c)  If the defendant is found mentally incompetent and is on a line 8 grant of probation for a misdemeanor offense, the court shall line 9 dismiss the pending revocation matter and may return the defendant line 10 to supervision. If the revocation matter is dismissed pursuant to line 11 this subdivision, the court may modify the terms and conditions line 12 of supervision to include appropriate mental health treatment. line 13 (d)  It is the intent of the Legislature that a defendant subject to line 14 the terms of this section receive mental health treatment in a line 15 treatment facility and not a jail. A term of four days will be deemed line 16 to have been served for every two days spent in actual custody line 17 against the maximum term of diversion. A defendant not in actual line 18 custody shall otherwise receive day for day credit against the term line 19 of diversion from the date the defendant is accepted into diversion. line 20 “Actual custody” has the same meaning as in Section 4019. line 21 (e)  This section shall apply only as provided in subdivision (b) line 22 of Section 1367. line 23 SEC. 4. Part 8 (commencing with Section 5970) is added to line 24 Division 5 of the Welfare and Institutions Code, to read: line 25 line 26 PART 8. THE COMMUNITY ASSISTANCE, RECOVERY, AND line 27 EMPOWERMENT ACT line 28 line 29 Chapter 1. General Provisions line 30 line 31 5970. This part shall be known, and may be cited, as line 32 Community Assistance, Recovery, and Empowerment (CARE) Act. line 33 5971. Unless the context otherwise requires, the following line 34 definitions shall govern the construction of this part. line 35 (a)  “Court-ordered evaluation” means an evaluation ordered line 36 by a superior court pursuant to Section 5977. line 37 (b)  “CARE plan” means an individualized, clinically line 38 appropriate range of behavioral health related services and line 39 supports provided by a county behavioral health agency, including, 97 — 8 — SB 1338 line 1 but not limited to, clinical care, stabilization medications, and a line 2 housing plan, pursuant to Section 5982. line 3 (c)  “Graduation plan” means a plan that is developed by the line 4 person who is the subject of the petition, with assistance from a line 5 supporter, as needed, and the person’s treatment team. The line 6 graduation plan shall include a strategy to support a successful line 7 transition out of court jurisdiction and may include a psychiatric line 8 advance directive. The graduation plan may also include, but is line 9 not limited to, on-going behavioral health services, including line 10 medication management, peer support services, housing and line 11 related support services, vocational or educational services, and line 12 psychoeducation. line 13 (d)  “Psychiatric advance directive” means a legal document line 14 that allows a person with mental illness to protect their autonomy line 15 and ability to self-direct care by documenting their preferences line 16 for treatment in advance of a mental health crisis. line 17 (e)  “Respondent” means the person who is subject to the petition line 18 for CARE court proceedings. line 19 (f)  “Supporter” means an adult, trained pursuant to Chapter line 20 4 (commencing with Section 5980), who assists the person who is line 21 the subject of the petition, which may include supporting the person line 22 to understand, make, communicate, implement, or act on their own line 23 life decisions. line 24 line 25 Chapter 2. Process line 26 line 27 5972. A court may order a respondent to participate in CARE line 28 proceedings if the court finds, by clear and convincing evidence, line 29 that the facts stated in the petition are true and establish that the line 30 requisite criteria set forth in this section are met, including all of line 31 the following: line 32 (a)  The person is 18 years of age or older. line 33 (b)  The person has a diagnosis of schizophrenia spectrum or line 34 other psychotic disorder, as defined in the most current version line 35 of the Diagnostic and Statistical Manual of Mental Disorders. line 36 (c)  The person is not clinically stabilized in on-going treatment line 37 with the county behavioral health agency. line 38 (d)  The person currently lacks medical decisionmaking capacity. line 39 5973. Proceedings under this part may be commenced in any line 40 of the following: 97 SB 1338 — 9 — line 1 (a)  The county in which the respondent resides. line 2 (b)  The county where the respondent is found. line 3 (c)  The county where the respondent is facing criminal or civil line 4 proceedings. line 5 5974. The following persons may file a petition to initiate CARE line 6 proceedings: line 7 (a)  A person 18 years of age or older with whom the respondent line 8 resides. line 9 (b)  A spouse, parent, sibling, or adult child of the respondent. line 10 (c)  The director of a hospital, or their designee, in which the line 11 respondent is hospitalized, including hospitalization pursuant to line 12 Section 5150 or 5250. line 13 (d)  The director of a public or charitable organization, agency, line 14 or home, or their designee, currently or previously providing line 15 behavioral health services to the respondent or in whose institution line 16 the respondent resides. line 17 (e)  A qualified behavioral health professional, or their designee, line 18 who is, or has been, either supervising the treatment of, or treating line 19 the respondent for a mental illness. line 20 (f)  A first responder, including a peace officer, firefighter, line 21 paramedic, emergency medical technician, mobile crisis response line 22 worker, or homeless outreach worker. line 23 (g)  The public guardian or public conservator, or their designee, line 24 of the county in which the respondent is present or reasonably line 25 believed to be present. line 26 (h)  The director of a county behavioral health agency, or their line 27 designee, of the county in which the respondent is present or line 28 reasonably believed to be present. line 29 5975. The petition shall be signed under the penalty of perjury line 30 and contain all of the following: line 31 (a)  The name of the court to which it is addressed. line 32 (b)  The title of the proceeding. line 33 (c)  The name, age, and address, if any, of the respondent. line 34 (d)  The code section and the subdivision under which the line 35 proceedings are instituted. line 36 (e)  The petitioner’s relationship with the respondent. line 37 (f)  Facts that support the petitioner’s belief that the respondent line 38 meets the CARE criterion, including identification of the county line 39 behavioral health agency with responsibility for providing care line 40 to the respondent, if known. 97 — 10 — SB 1338 line 1 (g)  Either of the following: line 2 (1)  An affirmation or affidavit of a qualified behavioral health line 3 professional, stating that the qualified behavioral health line 4 professional or their designee has examined the respondent within line 5 three months of the submission of the petition, or has made line 6 appropriate attempts, but has not been successful, in eliciting the line 7 cooperation of the respondent to submit to an examination, and line 8 that the qualified behavioral health professional had determined line 9 that, based on an examination or a review of records and collateral line 10 interviews, the respondent meets, or is likely to meet, the diagnostic line 11 criteria for CARE proceedings. line 12 (2)  Evidence that the respondent was detained for intensive line 13 treatment pursuant to Article 4 (commencing with Section 5250) line 14 of Chapter 2 of Part 1 within the previous 90 days. line 15 5976. The respondent shall have all of the following rights: line 16 (a)  To receive notice of the hearings. line 17 (b)  To receive a copy of the court-ordered evaluation. line 18 (c)  To be represented by counsel at all stages of a proceeding line 19 commenced under this chapter. line 20 (d)  To a supporter, as described in Section 5982. line 21 (e)  To be present at the hearing unless the respondent waives line 22 the right to be present or the court makes a finding described in line 23 Section 5977 or appears remotely. line 24 (f)  To present evidence. line 25 (g)  To call witnesses. line 26 (h)  To cross-examine witnesses. line 27 (i)  To appeal decisions, and to be informed of the right to line 28 appeal. line 29 5977. (a)  (1)  Upon receipt by the court of a petition, the court line 30 shall set an initial hearing not later than 14 days from the date line 31 the petition is filed with the court. line 32 (2)  The court shall appoint counsel and a supporter within five line 33 calendar days of filing. line 34 (3)  The petitioner shall be responsible for providing notice of line 35 the hearing to the respondent, the respondent’s counsel and line 36 supporter, and the county behavioral health agency in the county line 37 where the respondent resides. line 38 (b)  (1)  At the initial hearing, which shall occur 14 days after line 39 the petition is filed with the court, the court shall determine if the line 40 respondent meets the CARE criteria. 97 SB 1338 — 11 — line 1 (2)  All of the following shall be required for the hearing: line 2 (A)  The petitioner shall be present. If the petitioner is not line 3 present, the matter shall be dismissed. line 4 (B)  The respondent may waive their appearance and appear line 5 through their counsel. If the respondent does not waive their line 6 appearance and does not appear at the hearing, and appropriate line 7 attempts to elicit the attendance of the respondent have failed, the line 8 court may conduct the hearing in the respondent’s absence. If the line 9 hearing is conducted without the respondent present, the court line 10 shall set forth the factual basis for doing so. line 11 (C)  A representative from the county behavioral health agency line 12 shall be present. line 13 (D)  The supporter shall be allowed to be present. line 14 (3)  (A)  The court shall determine if the petitioner has presented line 15 prima facie evidence that respondent meets the CARE criteria. line 16 (B)  If the court finds that the petitioner has not presented line 17 sufficient prima facie evidence, the court shall dismiss the case line 18 without prejudice, unless the court makes a finding on the record line 19 that the petitioner’s filing was not in good faith. line 20 (C)  If the court finds that the petitioner has submitted prima line 21 facie evidence that the respondent meets the CARE criteria, the line 22 court shall order the county behavioral health agency to work with line 23 the respondent and the respondent’s counsel and supporter to line 24 determine if the respondent shall engage in a treatment plan. A line 25 case management conference shall be set for no later than 14 days line 26 after the court makes its finding. line 27 (c)  (1)  At the case management conference hearing, the court line 28 shall determine if a settlement agreement may be entered into by line 29 the parties. line 30 (2)  The case management conference may be continued for up line 31 to 14 days upon stipulation of the respondent and the county line 32 behavioral health agency. line 33 (3)  The court’s findings that a settlement agreement may be line 34 entered into by the parties shall require a recitation of all terms line 35 and conditions on the record. line 36 (4)  If the court finds that parties have agreed to a settlement line 37 agreement, and the court agrees with the terms of the agreement, line 38 the court shall stay the matter and set a progress hearing for 60 line 39 days. 97 — 12 — SB 1338 line 1 (5)  (A)  If the court finds that the parties are not likely to reach line 2 a settlement agreement, the court shall order a clinical evaluation line 3 of the respondent unless the parties stipulate otherwise. line 4 (B)  The court shall order the county behavioral health agency line 5 to conduct the evaluation unless the parties stipulate otherwise. line 6 (C)  The court shall set a hearing to review the evaluation within line 7 14 days. line 8 (D)  The evaluation shall be confidential pursuant to Section line 9 5200. line 10 (d)  (1)  At the evaluation review hearing, the court shall review line 11 the evaluation and any other evidence from all interested line 12 individuals, including, but not limited to, evidence from the line 13 petitioner, the county behavioral health agency, the respondent, line 14 and the supporter. line 15 (2)  The hearing may be continued a maximum of 14 days upon line 16 stipulation of the respondent and the county behavioral health line 17 agency. line 18 (3)  (A)  If the court finds that the evaluation and other evidence line 19 demonstrate by clear and convincing evidence that the respondent line 20 meets the CARE criteria, the court shall order the county line 21 behavioral health agency, the respondent, and the respondent’s line 22 counsel and supporter to jointly develop a CARE plan. line 23 (B)  The respondent and the county behavioral health agency line 24 may request appellate writ review of the order to develop a CARE line 25 plan. line 26 (C)  A hearing to approve the CARE plan shall be set not more line 27 than 14 days from the date of the order to develop a CARE plan. line 28 (4)  If the court finds that the evidence does not, by clear and line 29 convincing evidence, support that the respondent meets the CARE line 30 criteria, the court shall dismiss the petition without prejudice. line 31 (e)  (1)  The plan approval and implementation hearing to line 32 approve the CARE plan shall occur within 14 days after date of line 33 the order to develop a CARE plan. line 34 (2)  The CARE plan may be presented by both or either of the line 35 parties. After presentation, the court may do any of the following: line 36 (A)  Approve the plan as presented and make any orders line 37 necessary for the implementation of the plan. line 38 (B)  Order the plan modified to better meet the needs of the line 39 parties, approve the plan as modified, within the scope of the 97 SB 1338 — 13 — line 1 county behavioral health agency’s services, and make any orders line 2 necessary for the implementation of the plan. line 3 (C)  Reject the plan and order the parties to continue to work line 4 on the plan. The court shall set a subsequent hearing for no more line 5 than 14 days after rejecting the proposed plan. line 6 (3)  (A)  If the court rejects the plan or if there is no CARE plan line 7 because the parties have not had sufficient time to complete it, the line 8 court may grant a continuance for no more than 14 days. line 9 (B)  At the subsequent CARE plan approval and implementation line 10 hearing, the court shall review the CARE plan, at which time the line 11 court may do either of the following: line 12 (i)  Approve the plan as presented and make any orders line 13 necessary to implement the plan. line 14 (ii)  Order the plan modified, within the scope of the county line 15 behavioral health agency’s services, to better meet the needs of line 16 the parties, approve the plan as modified, and make any orders line 17 necessary to implement the plan. line 18 (4)  Court approval of the CARE plan begins the one-year CARE line 19 program timeline. line 20 (f)  The court shall schedule a status conference for 60 days after line 21 the approval of the CARE plan to review the progress of the CARE line 22 plan’s implementation. line 23 (g)  (1)  The 60-day status conference shall be followed by line 24 regular status conferences set by the court, at least every 180 days. line 25 (2)  Intermittent lapses or setbacks experienced by the respondent line 26 shall be reviewed by the court. line 27 (h)  (1)  In the 11th month of the program timeline, the court line 28 shall hold a one-year status hearing. At that hearing, the court line 29 shall determine whether to graduate the respondent from the line 30 program with a graduation plan or reappoint the respondent to line 31 the program for another term, not to exceed one year. line 32 (2)  The one-year status hearing shall be an evidentiary hearing. line 33 All parties shall be permitted to speak, present evidence, and the line 34 court shall hear recommendations from the county behavioral line 35 health agency. line 36 (3)  If the respondent has successfully completed participation line 37 in the one-year CARE program, the respondent shall not be line 38 reappointed to the program. line 39 (4)  At the one-year status hearing, the respondent may request line 40 graduation or reappointment to the CARE program. If the 97 — 14 — SB 1338 line 1 respondent elects to accept voluntary reappointment to the line 2 program, the respondent may request any amount of time, up to line 3 and including one additional year, to be reappointed to the CARE line 4 program. line 5 (5)  If the respondent requests to be graduated from, or times line 6 out of, the program, the court shall officially graduate the line 7 respondent and terminate its jurisdiction with a graduation plan. line 8 (6)  Upon completion, for a respondent who was transferred line 9 from another court, the referring court shall be given notice of line 10 completion and the underlying matter shall be terminated. line 11 (i)  The hearings described in this section shall occur in-person line 12 unless the court, in its discretion, determines that a party may line 13 appear remotely through the use of remote technology. line 14 (j)  Consistent with its constitutional rulemaking authority, the line 15 Judicial Council shall adopt rules to implement the policies and line 16 provisions in this section to promote statewide consistency, line 17 including, but not limited to, what is included in the petition form line 18 packet, the clerk’s review of the petition, and the process by which line 19 counsel and supporter will be appointed. line 20 5978. (a)  A court may refer an individual from assisted line 21 outpatient treatment and conservatorship proceedings to CARE line 22 proceedings. line 23 (b)  A court may refer an individual from misdemeanor line 24 proceedings pursuant to Section 1370.01 of the Penal Code. line 25 line 26 Chapter 3. Accountability line 27 line 28 5979. (a)  If, at any time during the proceedings, the court line 29 determines by a preponderance of evidence that the respondent is line 30 not participating in CARE proceedings, after the respondent line 31 receives notice, or is failing to comply with their CARE plan, the line 32 court may terminate the respondent’s participation in the CARE line 33 program. The court may utilize existing legal authority pursuant line 34 to Article 4 (commencing with Section 5200) of Chapter 2 of Part line 35 1, to ensure the respondent’s safety. The subsequent proceedings line 36 may use the CARE proceedings as a factual presumption that no line 37 suitable community alternatives are available to treat the line 38 individual. line 39 (b)  If, at any time during the proceedings, the court finds that line 40 the county is not complying with court orders, the court may fine 97 SB 1338 — 15 — line 1 the county up to one thousand dollars ($1,000) per day for line 2 noncompliance. If a county is found to be persistently line 3 noncompliant, the court may appoint a receiver to secure line 4 court-ordered care for the respondent at the county’s cost. line 5 (c)  Either the respondent or the county behavioral health agency line 6 may appeal an adverse court determination to the appellate line 7 division of the superior court. line 8 line 9 Chapter 4. The Supporter line 10 line 11 5980. (a)  Subject to appropriation, the California Department line 12 of Aging shall administer the CARE Supporter program, which line 13 shall make available a trained supporter to the respondent. The line 14 department shall train the supporter on supported decisionmaking line 15 with individuals who have behavioral health conditions and on line 16 the use of psychiatric advance directives, with support and input line 17 from peers, family members, disability groups, providers, and line 18 other relevant stakeholders. The department may enter into a line 19 technical assistance and training agreement to provide trainings line 20 either directly to supporters or to the contracted entities who will line 21 be responsible for hiring and matching supporters to respondents. line 22 The CARE Supporter program contracts shall include labor line 23 standards. line 24 (b)  The CARE Supporter program shall be designed to do all line 25 of the following: line 26 (1)  Offer the respondent a flexible and culturally responsive line 27 way to maintain autonomy and decisionmaking authority over line 28 their own life by developing and maintaining voluntary supports line 29 to assist them in understanding, making, communicating, and line 30 implementing their own informed choices. line 31 (2)  Strengthen the respondent’s capacity and prevent or remove line 32 the need to use more restrictive protective mechanisms, such as line 33 conservatorship. line 34 (3)  Assist the respondent with understanding, making, and line 35 communicating decisions and expressing preferences throughout line 36 the CARE court process. line 37 (c)  If the respondent chooses to have a supporter who was not line 38 trained pursuant to this section, that person may serve as a line 39 supporter without compensation. 97 — 16 — SB 1338 line 1 5981. (a)  Notwithstanding any other provision of this part, line 2 the respondent may have their supporter present, if available, in line 3 any meeting, judicial proceeding, or communication related to line 4 any of the following: line 5 (1)  An evaluation. line 6 (2)  Creation of a CARE plan. line 7 (3)  Establishing a psychiatric advance directive. line 8 (4)  Development of a graduation plan. line 9 (b)  A supporter shall do all the following, to the best of their line 10 ability and to the extent reasonably possible: line 11 (1)  Support the will and preferences of the respondent. line 12 (2)  Respect the values, beliefs, and preferences of the line 13 respondent. line 14 (3)  Act honestly, diligently, and in good faith. line 15 (4)  Avoid, to the greatest extent possible, and disclose, minimize, line 16 and manage, conflicts of interest. line 17 (c)  Unless explicitly authorized, a supporter shall not do any line 18 of the following: line 19 (1)  Make decisions for, or on behalf of, the respondent, except line 20 when necessary to prevent imminent bodily harm or injury. line 21 (2)  Sign documents on behalf of the respondent. line 22 (3)  Substitute their own judgment for the decision or preference line 23 of the respondent. line 24 (d)  In addition to the obligations in this section, a supporter line 25 shall be bound by all existing obligations and prohibitions line 26 otherwise applicable by law that protect people with disabilities line 27 and the elderly from fraud, abuse, neglect, coercion, or line 28 mistreatment. This section does not limit a supporter’s civil or line 29 criminal liability for prohibited conduct against the respondent, line 30 including liability for fraud, abuse, neglect, coercion, or line 31 mistreatment, including liability under the Elder Abuse and line 32 Dependent Adult Civil Protection Act (Chapter 11 (commencing line 33 with Section 15600) of Part 3 of Division 9), including, but not line 34 limited to, Sections 15656 and 15657. line 35 line 36 Chapter 5. CARE Plan line 37 line 38 5982. The CARE plan shall be created by the respondent, their line 39 supporter and counsel, and the county behavioral health agency. line 40 The plan shall include all of the following components: 97 SB 1338 — 17 — line 1 (a)  (1)  Behavioral health treatment, which includes medically line 2 necessary mental health or substance use disorder treatment, or line 3 both. line 4 (2)  If the respondent is enrolled in the Medi-Cal program, the line 5 county shall provide all medically necessary specialty mental line 6 health and substance use disorder treatment services, as those line 7 services are defined in the Medi-Cal program and consistent with line 8 their responsibilities thereunder, to a respondent when included line 9 in their court ordered CARE plan. Specialty mental health services line 10 and substance use disorder treatment services may be included in line 11 the CARE plan if they are determined to be medically necessary line 12 by the clinical evaluation. If the respondent is an enrollee in a line 13 health care service plan, other than a Medi-Cal managed care line 14 plan, the services shall be provided and reimbursed pursuant to line 15 Section 1374.723 of the Health and Safety Code. line 16 (3)  Counties are encouraged to employ medically necessary, line 17 evidence-based practices and promising practices supported with line 18 community-defined evidence, which may include assertive line 19 community treatment, peer support services, and psychoeducation. line 20 (b)  (1)  As part of the provision of behavioral health care, the line 21 care plan may include medically necessary stabilization line 22 medications, including antipsychotic medications. If medically line 23 necessary, medications may be provided as long-acting injections. line 24 (2)  Court ordered stabilization medications shall not be forcibly line 25 administered, absent a separate order by the court pursuant to line 26 Sections 5332 to 5336, inclusive. line 27 (3)  Medically necessary stabilization medications may be line 28 prescribed by the treating licensed behavioral health care provider line 29 and medication support services shall be offered. The respondent, line 30 in the development and on-going maintenance of the plan, shall line 31 work with their behavioral health care provider and their supporter line 32 to address medication concerns and make changes to the treatment line 33 plan. line 34 (c)  A housing plan that describes the housing needs of the line 35 respondent and the housing resources that will be considered in line 36 support of an appropriate housing placement. The respondent line 37 shall have diverse housing options, including, but not limited to, line 38 housing in clinically enhanced interim or bridge housing, licensed line 39 adult and senior care settings, and supportive housing. Counties line 40 may offer appropriate housing placements in the region as early 97 — 18 — SB 1338 line 1 as feasible in the engagement process. This section does not allow line 2 the court to order housing or to require the county to provide line 3 housing. line 4 line 5 Chapter 6. Technical Assistance and Administration line 6 line 7 5983. (a)  Subject to appropriation, the State Department of line 8 Health Care Services shall provide technical assistance to county line 9 behavioral health agencies to support the implementation of this line 10 part, including trainings regarding the CARE model and statute line 11 and data collection. line 12 (b)  Subject to appropriation, the State Department of Health line 13 Care Services shall administer the Behavioral Health Bridge line 14 Housing program to provide funding for clinically enhanced bridge line 15 housing settings to serve individuals who are experiencing line 16 homelessness and have behavioral health conditions. Individuals line 17 who are CARE program participants shall be prioritized for any line 18 appropriate bridge housing funded by the Behavioral Health line 19 Bridge Housing program. line 20 (c)  Subject to appropriation, the Judicial Council shall provide line 21 technical assistance to judges to support the implementation of line 22 this part, including trainings regarding the CARE model and line 23 statutes, working with the supporter, best practices, and line 24 evidence-based models of care for people with severe behavioral line 25 health conditions. line 26 5984. (a)  For purposes of implementing this part, the line 27 California Health and Human Services Agency, the State line 28 Department of Health Care Services, and the California line 29 Department of Aging may enter into exclusive or nonexclusive line 30 contracts, or amend existing contracts, on a bid or negotiated line 31 basis. Contracts entered into or amended pursuant to this part line 32 shall be exempt from Chapter 6 (commencing with Section 14825) line 33 of Part 5.5 of Division 3 of Title 2 of the Government Code, Section line 34 19130 of the Government Code, Part 2 (commencing with Section line 35 10100) of Division 2 of the Public Contract Code, and the State line 36 Administrative Manual, and shall be exempt from the review or line 37 approval of any division of the Department of General Services. line 38 (b)  Notwithstanding Chapter 3.5 (commencing with Section line 39 11340) of Part 1 of Division 3 of Title 2 of the Government Code, line 40 the California Health and Human Services Agency, the State 97 SB 1338 — 19 — line 1 Department of Health Care Services, and the California line 2 Department of Aging may implement, interpret, or make specific line 3 this part, in whole or in part, by means of plan letters, information line 4 notices, provider bulletins, or other similar instructions, without line 5 taking any further regulatory action. line 6 SEC. 5. No reimbursement is required by this act pursuant to line 7 Section 6 of Article XIII B of the California Constitution for certain line 8 costs that may be incurred by a local agency or school district line 9 because, in that regard, this act creates a new crime or infraction, line 10 eliminates a crime or infraction, or changes the penalty for a crime line 11 or infraction, within the meaning of Section 17556 of the line 12 Government Code, or changes the definition of a crime within the line 13 meaning of Section 6 of Article XIII B of the California line 14 Constitution. line 15 However, if the Commission on State Mandates determines that line 16 this act contains other costs mandated by the state, reimbursement line 17 to local agencies and school districts for those costs shall be made line 18 pursuant to Part 7 (commencing with Section 17500) of Division line 19 4 of Title 2 of the Government Code. line 20 SECTION 1. Part 1.3 (commencing with Section 5565) is line 21 added to Division 5 of the Welfare and Institutions Code, to read: line 22 line 23 PART 1.3. COMMUNITY ASSISTANCE, RECOVERY, AND line 24 EMPOWERMENT (CARE) COURT PROGRAM line 25 line 26 5565. (a)  The Community Assistance, Recovery, and line 27 Empowerment (CARE) Court Program is hereby established to line 28 connect a person struggling with untreated mental illness and line 29 substance use disorders with a court-ordered CARE plan. line 30 (b)  (1)  A court may order a person who is the subject of a line 31 petition filed pursuant to this section to obtain treatment and line 32 services under a CARE plan if the court finds that the facts stated line 33 in the verified petition are true and established and the criteria set line 34 in this section are met, including, but not limited to, each of the line 35 following: line 36 (A)  The person is 18 years of age or older. line 37 (B)  The person is suffering from a mental illness and a substance line 38 use disorder. line 39 (C)  The person lacks medical decisionmaking capacity. 97 — 20 — SB 1338 line 1 (2)  A court may order the person to have a CARE plan for up line 2 to 12 months, and may renew the plan for up to another 12 months. line 3 The court shall conduct periodic review hearings. line 4 (3)  A person who is ordered under a CARE plan who does not line 5 complete the plan may be referred to conservatorship pursuant to line 6 Chapter 3 (commencing with Section 5350) of Part 1, and it shall line 7 be presumed that there are no suitable alternatives to line 8 conservatorship available to the person line 9 (c)  A petition for an order authorizing a CARE plan may be line 10 filed by a family member, county representative, community-based line 11 social services provider, behavioral health provider, or first line 12 responder in the superior court in the county in which the person line 13 who is the subject of the petition is present or reasonably believed line 14 to be present. line 15 (d)  (1)  A CARE plan shall be managed by a CARE team in the line 16 community, and may include clinically prescribed and line 17 individualized interventions with several supportive services, line 18 including, but not limited to, medication and housing. line 19 (2)  The CARE team shall consist of clinical team members, a line 20 public defender, and a support person to help make self-directed line 21 care decisions. line 22 (e)  (1)  Each county shall participate in providing services under line 23 the program. line 24 (2)  The court may order sanctions or appoint an agent to ensure line 25 the county provides services under the program. line 26 SEC. 2. If the Commission on State Mandates determines that line 27 this act contains costs mandated by the state, reimbursement to line 28 local agencies and school districts for those costs shall be made line 29 pursuant to Part 7 (commencing with Section 17500) of Division line 30 4 of Title 2 of the Government Code. O 97 SB 1338 — 21 — AMENDED IN ASSEMBLY APRIL 20, 2022 AMENDED IN ASSEMBLY MARCH 28, 2022 california legislature—2021–22 regular session ASSEMBLY BILL No. 1737 Introduced by Assembly Member Holden January 31, 2022 An act to amend Sections 18897 and 18897.2 of, to add Division 40 (commencing with Section 60000) to, and to repeal Section 18897.6 of, the Health and Safety Code, to amend Section 1182.4 of the Labor Code, and to amend Section 11165.7 of the Penal Code, relating to children’s camps. legislative counsel’s digest AB 1737, as amended, Holden. Children’s camps: local registration and inspections. Existing law requires the State Public Health Officer to establish rules and regulations establishing minimum standards for organized camps. Existing law requires the State Fire Marshal to adopt minimum fire safety regulations for organized camps. Existing law requires local health officers to enforce building standards relating to organized camps and the other rules and regulations adopted by the State Public Health Officer. Existing law defines “organized camp,” for these purposes, as a site with a program and facilities established for the primary purposes of providing an outdoor group living experience with social, spiritual, educational, or recreational objectives, for 5 days or more during one or more seasons of the year, except as specified. Existing law requires the Director of Public Health to consider the Camp Standards of the 97 American Camping Association when adopting rules and regulations pursuant to these provisions. This bill would include “children’s camps” within the definition of organized camps and would define “children’s camp” as a camp that offers daytime or overnight experiences administered by adults who provide social, cultural, educational, recreational, or artistic programming to more than 5 children between 3 and 17 years of age for 5 days or longer during at least one season, except as specified. The bill would also delete the requirement for the Director of Public Health to consider the Camp Standards of the American Camping Association when adopting rules and regulations. This bill would require the operator of a children’s camp to annually register with the local agency of the jurisdiction where the children’s camp is located at least 90 days before commencing operations. The bill would require each local agency to develop a registration form for a children’s camp to file with the local agency that includes specified information, including the name and location of the camp and the name and contact information of the camp operator and camp director. The bill would authorize each local agency to charge a registration fee that does not exceed the reasonable costs incurred by the local agency to register and inspect the children’s camps in its jurisdiction. This bill would require each local agency to make at least one unannounced inspection and one scheduled inspection of each children’s camp within its jurisdiction during the calendar year and to make additional inspections in specified circumstances. If the local agency identifies any violation of these provisions during an inspection, the bill would require the local agency to issue a notice to correct the violation to the camp operator and the camp director. The bill would require the children’s camp to post the cited violation on the premises of the camp until mitigation of the violation has been confirmed by the local agency. The bill would require the local agency to conduct a followup inspection to confirm the mitigation of a cited violation. The bill would require the local agency to maintain all records of children’s camp inspections and make the records available for public inspection. By creating new duties for a local agency in the administration of children’s camps, the bill would impose a state-mandated local program. This bill would require each children’s camp to develop and maintain an operating plan that includes specified information, including, but not limited to, the camp’s admission policy, proposed operating hours, proposed fee schedule, health and safety policies, and discipline policies. 97 — 2 — AB 1737 The bill would require each children’s camp to develop and maintain an emergency action plan that contains procedures to address emergency situations, including, but not limited to, natural disasters, lost campers, fires, severe illnesses and injuries, and active shooters. The bill would require all camp staff to be trained in implementation of the operating plan and emergency action plan. This bill would require a camp operator or camp director to check the background and character of each prospective camp staffer or counselor, regardless of age, on an annual basis through character references, background checks, and a sex offender registry information check. The bill would require each children’s camp to ensure that a full-time adult health supervisor, as defined, is available on the premises of the children’s camp whenever campers are present. The bill would require a camp operator, camp director, and all camp staff staff member, counselor, or regular volunteer of a children’s camp to complete training in child abuse and neglect identification and training in child abuse and neglect reporting, as specified. specified, and to undergo a background check pursuant to a specified provision. This bill would require each local agency that registers a children’s camp pursuant to these provisions to submit an annual report to the State Department of Public Health that contains specified information, including the names of the children’s camps in its jurisdiction, the number of attending campers, and any violations cited by the local agency. The bill would require the State Department of Public Health to develop and maintain a public database on its internet website that contains all the information submitted by local agencies and an annual summary, as specified. Existing law requires a mandated reporter to report whenever they, in their professional capacity or within the scope of their employment, have knowledge of or observed a child who the mandated reporter knows or reasonably suspects has been the victim of child abuse or neglect. Under existing law, failure by a mandated reporter to report an incident of known or reasonably suspected child abuse or neglect is a misdemeanor punishable by up to 6 months of confinement in a county jail, by a fine of $1,000, or by both that imprisonment and fine. Existing law includes an administrator of a public or private day camp as a mandated reporter. This bill would instead make an administrator or a full-time employee of a children’s camp a mandated reporter. By expanding the scope of 97 AB 1737 — 3 — individuals classified as mandated reporters, the bill would expand the scope of a crime and impose a state-mandated local program. 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. 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. 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 18897 of the Health and Safety Code is line 2 amended to read: line 3 18897. (a)  “Organized camp” means a site with a program and line 4 facilities established for the primary purposes of providing an line 5 outdoor group living experience with social, spiritual, educational, line 6 or recreational objectives, for five days or more during one or more line 7 seasons of the year. “Organized camp” includes a children’s camp. line 8 (b)  “Children’s camp” means a camp that offers daytime or line 9 overnight experiences administered by adults who provide social, line 10 cultural, educational, recreational, or artistic programming to more line 11 than five children between 3 and 17 years of age for five days or line 12 longer during at least one season. line 13 (c)  The term “organized camp” does not include a motel, tourist line 14 camp, trailer park, resort, hunting camp, auto court, labor camp, line 15 penal or correctional camp and does not include a childcare line 16 institution or home-finding agency. line 17 (d)  The term “organized camp” also does not include any line 18 charitable or recreational organization that complies with the rules line 19 and regulations for recreational trailer parks. line 20 SEC. 2. Section 18897.2 of the Health and Safety Code is line 21 amended to read: 97 — 4 — AB 1737 line 1 18897.2. (a)  Except as provided in Section 18930, the Director line 2 of Public Health shall adopt, in accordance with the provisions of line 3 Chapter 3.5 (commencing with Section 11340) of Part 1 of Division line 4 3 of Title 2 of the Government Code, rules and regulations line 5 establishing minimum standards for children’s camps and line 6 regulating the operation of children’s camps that the director line 7 determines are necessary to protect the health and safety of the line 8 campers. Children’s camps also shall comply with the building line 9 standards of the jurisdiction in which the camp is located, to the line 10 extent that those standards are not contrary to, or inconsistent with, line 11 the building standards adopted by the Director of Public Health. line 12 The Director of Public Health shall adopt and submit building line 13 standards for approval pursuant to Chapter 4 (commencing with line 14 Section 18935) of Part 2.5 for the purposes described in this line 15 section. The State Department of Public Health shall enforce line 16 building standards published in the State Building Standards Code line 17 relating to children’s camps and such other rules and regulations line 18 adopted by such director pursuant to the provisions of this section line 19 as the director determines are necessary to protect the health and line 20 safety of campers. line 21 (b)  The Director of Public Health shall adopt and submit line 22 building standards for approval pursuant to Chapter 4 (commencing line 23 with Section 18935) of Part 2.5 and shall adopt such other rules line 24 and regulations pursuant to the provisions of this section line 25 establishing minimum standards for intermittent short-term line 26 organized camps operated by a city or a county as the director line 27 deems necessary to protect the health and safety of campers. For line 28 purposes of this subdivision, “intermittent short-term organized line 29 camps” means a site for camping by any group of people for a line 30 period of not more than 72 consecutive hours for that group. line 31 SEC. 3. Section 18897.6 of the Health and Safety Code is line 32 repealed. line 33 SEC. 4. Division 40 (commencing with Section 60000) is added line 34 to the Health and Safety Code, to read: line 35 line 36 DIVISION 40. LOCAL REGULATION OF CHILDREN’S line 37 CAMPS line 38 line 39 60000. For purposes of this chapter: 97 AB 1737 — 5 — line 1 (a)  “Camp director” means a person who is responsible for line 2 day-to-day decisionmaking and supervision of children’s camp line 3 programs and staff. line 4 (b)  “Camp operator” means an individual, partnership, joint line 5 venture, or organization that owns, leases, rents, or operates a line 6 children’s camp, or an individual, partnership, or joint venture that line 7 has care, charge, or control of a children’s camp. line 8 (c)  (1)  “Children’s camp” means a camp that offers daytime line 9 or overnight experiences administered by adults who provide line 10 social, cultural, educational, recreational, or artistic programming line 11 to more than five children between 3 and 17 years of age for five line 12 days or longer during at least one season. line 13 (2)  The term “children’s camp” does not include a motel, tourist line 14 camp, trailer park, resort, hunting camp, auto court, labor camp, line 15 or penal or correctional camp, and does not include a childcare line 16 institution or home-finding agency. line 17 (3)  The term “children’s camp” also does not include any line 18 charitable or recreational organization that complies with the rules line 19 and regulations for recreational trailer parks. line 20 (d)  “CPR certification” means pediatric cardiopulmonary line 21 resuscitation certification, including automated external line 22 defibrillator certification, issued by the American Red Cross, line 23 American Heart Association, or an equivalent program approved line 24 by the Emergency Medical Services Authority under Section line 25 1797.191. A certification shall be valid as specified by the provider. line 26 (e)  “Health supervisor” means a person who is any of the line 27 following: line 28 (1)  A person who obtained the training required under Section line 29 1596.866. line 30 (2)  A physician and surgeon licensed pursuant to Chapter 5 line 31 (commencing with Section 2000) of Division 2 of the Business line 32 and Professions Code. line 33 (3)  A registered nurse licensed pursuant to Chapter 6 line 34 (commencing with Section 2700) of Division 2 of the Business line 35 and Professions Code. line 36 (4)  A licensed vocational nurse who is licensed pursuant to line 37 Chapter 6.5 (commencing with Section 2840) of Division 2 of the line 38 Business and Professions Code. line 39 (f)  “Local agency” means a city, county, or city and county. 97 — 6 — AB 1737 line 1 60001. (a)  The operator of a children’s camp shall annually line 2 register with the local agency of the jurisdiction where the line 3 children’s camp is located at least 90 days before commencing line 4 operations. line 5 (b)  Each local agency shall develop a form for an operator to line 6 submit to the local agency that documents all of the following line 7 information: line 8 (1)  The name and contact information of the camp operator. line 9 (2)  The name and location of the children’s camp. line 10 (3)  The name and contact information of the camp director. line 11 (4)  The name and contact information of the health supervisor line 12 required pursuant to Section 60003. line 13 (5)  The dates that the children’s camp proposes to operate during line 14 the calendar year. line 15 (6)  The total number of campers expected to attend. line 16 (7)  The total number of full-time staff. line 17 (8)  The total number of seasonal counselors. line 18 (9)  Whether the children’s camp offers any of the following line 19 activities: line 20 (A)  Contact sports. line 21 (B)  Motorsports. line 22 (C)  Rock climbing. line 23 (D)  Target sports, including rifle ranges or archery. line 24 (E)  Aquatic activities. line 25 (F)  Low- and high-level challenge courses, including ziplines. line 26 (G)  Horseback riding. line 27 (10)  Any other information deemed relevant by the local agency. line 28 (c)  When registering with the local agency, a children’s camp line 29 shall submit copies of its operating plan and emergency action line 30 plan that are required pursuant to Section 60004. line 31 60002. (a)  (1)  A local agency shall make at least one line 32 unannounced inspection and one scheduled inspection of each line 33 children’s camp within its jurisdiction during the calendar year, line 34 and at any other time the local agency has reason to believe a line 35 violation of this division or Part 2.4 (commencing with Section line 36 18897) of Division 13 exists. line 37 (2)  A local agency shall make additional unannounced or line 38 scheduled inspections of a children’s camp that is the subject of a line 39 request or complaint filed with the local agency by any person line 40 with a legitimate basis for submitting the request or complaint. 97 AB 1737 — 7 — line 1 (3)  A local agency shall make an additional inspection as soon line 2 as practically possible of a children’s camp that reports a death line 3 pursuant to subdivision (e) of section (c) of Section 60003. line 4 (b)  A local agency conducting an inspection pursuant to this line 5 section shall confirm that all necessary certifications for the line 6 activities listed in paragraph (9) of subdivision (b) of Section 60001 line 7 and offered at the children’s camp are current and on file. If any line 8 of the camp’s certifications are expired or cannot be confirmed by line 9 the local agency, the camp shall immediately cease operation of line 10 the activity lacking the relevant certification until proper line 11 certification is confirmed by the local agency. line 12 (c)  (1)  If, upon inspection, the local agency determines that a line 13 children’s camp is in violation of any provision of this division or line 14 Part 2.4 (commencing with Section 18897) of Division 13, the line 15 local agency shall promptly issue a notice to correct the violation line 16 to the camp operator and the camp director. line 17 (2)  In the event that the local agency determines that a violation line 18 constitutes an imminent threat to the health and safety of any line 19 individual attending the children’s camp, the notice of violation line 20 shall be issued immediately and served on the camp operator and line 21 camp director. line 22 (3)  In the event that the local agency determines that line 23 deficiencies, violations, or conditions exist at a children’s camp line 24 that are dangerous, hazardous, imminently detrimental to life or line 25 health, or otherwise render the children’s camp unfit for human line 26 habitation, the local agency may issue an emergency order directing line 27 the camp operator or camp director to take immediate measures line 28 to rectify those deficiencies, violations, or conditions. line 29 (4)  (A)  A children’s camp shall post any violation issued line 30 pursuant to this subdivision in a highly visible location on the line 31 camp premises and on the camp’s internet website, if one exists, line 32 until the local agency confirms that the camp has mitigated the line 33 violation. line 34 (B)  A local agency shall post any violation issued pursuant to line 35 this subdivision on its internet website until the local agency line 36 confirms mitigation of the violation. line 37 (5)  A local agency shall conduct a followup inspection to line 38 confirm the mitigation of any violation issued pursuant to this line 39 subdivision. 97 — 8 — AB 1737 line 1 (d)  (1)  The local agency shall maintain all records of each line 2 children’s camp inspection. These records shall be made available line 3 to the public for inspection. line 4 (2)  A local agency shall provide free, certified copies of any line 5 inspection report or citation issued pursuant to this division, if any, line 6 to a complaining party or their agent. If an inspection reveals a line 7 condition potentially affecting health or safety of the campers, line 8 then the local agency shall provide free copies of the inspection line 9 report and citations issued to any potentially affected campers or line 10 their agents. line 11 60003. (a)  A camp operator or camp director shall check the line 12 background and character of each prospective camp staffer or line 13 counselor, regardless of age, on an annual basis through character line 14 references, background checks, and a sex offender registry line 15 information check. line 16 (b)   line 17 60003. (a)  Each children’s camp shall ensure that a full-time line 18 adult health supervisor charged with health supervision is available line 19 on the premises of the children’s camp whenever campers are line 20 present. line 21 (c) line 22 (b)  The health supervisor, aquatics supervisor, and all lifeguards, line 23 shall possess current CPR certifications and first aid certifications. line 24 (d)   The camp operator, camp director, and all camp staff and line 25 counselors shall be required to complete training in child abuse line 26 and neglect identification and training in child abuse and neglect line 27 reporting pursuant to Section 18975 of the Business and line 28 Professions Code. line 29 (e) line 30 (c)  A children’s camp shall report the death of any camper or line 31 any camp staff that occurs at the children’s camp to the relevant line 32 local agency within 24 hours of occurrence. line 33 60003.5. (a)  A camp operator, camp director, staff member, line 34 counselor, or regular volunteer of a children’s camp shall complete line 35 training in child abuse and neglect identification and training in line 36 child abuse and neglect reporting. The training requirement may line 37 be met by completing the online mandated reporter training line 38 provided by the Office of Child Abuse Prevention in the State line 39 Department of Social Services. 97 AB 1737 — 9 — line 1 (b)  A camp operator, camp director, staff member, counselor, line 2 or regular volunteer of a children's camp shall undergo a line 3 background check pursuant to Section 11105.3 of the Penal Code line 4 to identify and exclude any persons with a history of child abuse. line 5 (c)  A children’s camp shall develop and implement child abuse line 6 prevention policies and procedures, including, but not limited to, line 7 both of the following: line 8 (1)  Policies to ensure the reporting of suspected incidents of line 9 child abuse to persons or entities outside of the organization, line 10 including the reporting required pursuant to Section 11165.9 of line 11 the Penal Code. line 12 (2)  Policies requiring, to the greatest extent possible, the line 13 presence of at least two mandated reporters whenever line 14 administrators, employees, or volunteers are in contact with, or line 15 supervising, children. line 16 (d)  Before writing liability insurance for a children’s camp in line 17 this state, an insurer may request information demonstrating line 18 compliance with this section from the children’s camp as a part line 19 of the insurer’s loss control program. line 20 (e)  For purposes of this section, “regular volunteer” means a line 21 volunteer with the children’s camp who is 18 years of age or older line 22 and who has direct contact with, or supervision of, children for line 23 more than 16 hours per month or 32 hours per year. line 24 60004. (a)  Each children’s camp shall develop and maintain line 25 an operating plan that includes all of the following information: line 26 (1)  The purpose and philosophy of the camp. line 27 (2)  The admission policy of the camp. line 28 (3)  Proposed operating hours. line 29 (4)  Proposed fee schedule. line 30 (5)  The ages of children accepted. line 31 (6)  Procedures for dropping off and picking up campers. line 32 (7)  Discipline policies. line 33 (8)  Parent notification and visitation policies. line 34 (9)  Services offered for children with special needs. line 35 (10)  Security and emergency procedures. line 36 (11)  Health and safety policies. line 37 (12)  Offsite trip policies. line 38 (13)  Policies for the storage of personal belongings. line 39 (14)  Inclement weather policies. line 40 (15)  Special equipment policies. 97 — 10 — AB 1737 line 1 (16)  A site location description. line 2 (17)  Buildings and facilities descriptions and planned usage of line 3 those buildings and facilities. line 4 (18)  Environmental hazards. line 5 (19)  Equipment access, control, and maintenance. line 6 (20)  Food service provided. line 7 (21)  Transportation policies. line 8 (22)  Director and operator qualifications and training. line 9 (23)  Staff background check and skills verification procedures. line 10 (24)  Participant eligibility requirements. line 11 (25)  Staff-to-camper supervision ratios. line 12 (26)  Procedures for onsite and offsite nonrisk and high-risk line 13 activities. line 14 (b)  (1)  Each children’s camp shall develop and maintain an line 15 emergency action plan that contains procedure to address the line 16 following emergency situations: line 17 (A)  Natural disasters. line 18 (B)  (i)  Lost campers and lost swimmers. line 19 (ii)  All campers, counselors, and staff shall review the written line 20 lost camper and lost swimmer plans that shall also be kept on file. line 21 (C)  Fires. line 22 (i)  The fire emergency action plan shall require that fire drills line 23 be held at least once per camp session. line 24 (ii)  The fire emergency action plan shall be submitted in writing line 25 and be approved by the local fire department. line 26 (D)  Transportation emergencies. line 27 (E)  Severe illnesses and injuries. line 28 (F)  Unidentified individuals on the camp premises. line 29 (G)  Aquatic emergencies, if necessary. line 30 (H)  Active shooters. line 31 (I)  Other emergency situations as appropriate for the site. line 32 (2)  The emergency action plan shall include all of the following line 33 procedures: line 34 (A)  Evacuation of the camp premises. line 35 (B)  Control of vehicular traffic through the camp. line 36 (C)  Communication from persons at the site of an emergency line 37 to emergency medical facilities, the nearest fire station, and camp line 38 staff. 97 AB 1737 — 11 — line 1 (c)  Camp staff shall be trained in implementation of the line 2 procedures set forth in the operating plan and emergency action line 3 plan. line 4 (d)  A children’s camp shall maintain a copy of the operating line 5 plan and emergency action plan required pursuant to this section line 6 on file on the camp premises and make the plans available for line 7 inspection by any camper or their agent. line 8 60005. (a)  (1)  A local agency may charge a registration fee line 9 to a children’s camp that files an annual registration pursuant to line 10 Section 60001. line 11 (2)  A registration fee charged pursuant to this section shall not line 12 exceed the reasonable costs incurred for the registration and line 13 inspection of children’s camps within the jurisdiction. line 14 (b)  A children’s camp that does not register, but is operating as line 15 a children’s camp, shall be subject to a monetary penalty in the line 16 amount determined by the local agency. line 17 60006. (a)  Each local agency that registers a children’s camp line 18 pursuant to Section 60001 shall submit an annual report to the line 19 State Department of Public Health that provides all of the following line 20 information regarding each children’s camp operating within its line 21 jurisdiction: line 22 (1)  The name of the children’s camp. line 23 (2)  The number of attending campers. line 24 (3)  The operating dates. line 25 (4)  The high-risk activities described in paragraph (6) of line 26 subdivision (b) of Section 60001 offered. line 27 (5)  Any violations cited by the local agency against the line 28 children’s camp. line 29 (b)  (1)  The State Department of Public Health shall develop line 30 and maintain a public database on its internet website that contains line 31 all the information submitted by local agencies pursuant to line 32 subdivision (a). line 33 (2)  The database shall include an annual summary that includes line 34 the following information: line 35 (A)  The total number of children’s camps offered in the state. line 36 (B)  The total number of campers attending children’s camps in line 37 the state. line 38 (C)  The total number of citations issued by local agencies line 39 pursuant to this division. 97 — 12 — AB 1737 line 1 60007. The Legislature finds and declares that this division line 2 addresses a matter of statewide concern rather than a municipal line 3 affair as that term is used in Section 5 of Article XI of the line 4 California Constitution. Therefore, this division applies to all cities, line 5 including charter cities. line 6 SEC. 5. Section 1182.4 of the Labor Code is amended to read: line 7 1182.4. (a)  A student employee, camp counselor, or program line 8 counselor of an organized camp shall not be subject to a minimum line 9 wage or maximum hour order of the commission if the student line 10 employee, camp counselor, or program counselor receives a weekly line 11 salary of at least 85 percent of the minimum wage for a 40-hour line 12 week, regardless of the number of hours per week the student line 13 employee, camp counselor, or program counselor might work at line 14 the organized camp. If the student employee, camp counselor, or line 15 program counselor works less than 40 hours per week, the student line 16 employee, camp counselor, or program counselor shall be paid at line 17 least 85 percent of the minimum hourly wage for each hour worked. line 18 (b)  An organized camp may deduct the value of meals and line 19 lodging from the salary of a student employee, camp counselor, line 20 or program counselor pursuant to appropriate orders of the line 21 commission. line 22 (c)  As used in this section, “organized camp” means an line 23 organized camp, as defined in Section 18897 of the Health and line 24 Safety Code. line 25 SEC. 6. Section 11165.7 of the Penal Code is amended to read: line 26 11165.7. (a)  As used in this article, “mandated reporter” is line 27 defined as any of the following: line 28 (1)  A teacher. line 29 (2)  An instructional aide. line 30 (3)  A teacher’s aide or teacher’s assistant employed by a public line 31 or private school. line 32 (4)  A classified employee of a public school. line 33 (5)  An administrative officer or supervisor of child welfare and line 34 attendance, or a certificated pupil personnel employee of a public line 35 or private school. line 36 (6)  An administrator or full-time employee of a children’s camp. line 37 For purposes of this paragraph, “children’s camp” means the same line 38 as defined in Section 18897 of the Health and Safety Code. line 39 (7)  An administrator or employee of a public or private youth line 40 center, youth recreation program, or youth organization. 97 AB 1737 — 13 — line 1 (8)  An administrator, board member, or employee of a public line 2 or private organization whose duties require direct contact and line 3 supervision of children, including a foster family agency. line 4 (9)  An employee of a county office of education or the State line 5 Department of Education whose duties bring the employee into line 6 contact with children on a regular basis. line 7 (10)  A licensee, an administrator, or an employee of a licensed line 8 community care or child daycare facility. line 9 (11)  A Head Start program teacher. line 10 (12)  A licensing worker or licensing evaluator employed by a line 11 licensing agency, as defined in Section 11165.11. line 12 (13)  A public assistance worker. line 13 (14)  An employee of a childcare institution, including, but not line 14 limited to, foster parents, group home personnel, and personnel of line 15 residential care facilities. line 16 (15)  A social worker, probation officer, or parole officer. line 17 (16)  An employee of a school district police or security line 18 department. line 19 (17)  A person who is an administrator or presenter of, or a line 20 counselor in, a child abuse prevention program in a public or line 21 private school. line 22 (18)  A district attorney investigator, inspector, or local child line 23 support agency caseworker, unless the investigator, inspector, or line 24 caseworker is working with an attorney appointed pursuant to line 25 Section 317 of the Welfare and Institutions Code to represent a line 26 minor. line 27 (19)  A peace officer, as defined in Chapter 4.5 (commencing line 28 with Section 830) of Title 3 of Part 2, who is not otherwise line 29 described in this section. line 30 (20)  A firefighter, except for volunteer firefighters. line 31 (21)  A physician and surgeon, psychiatrist, psychologist, dentist, line 32 resident, intern, podiatrist, chiropractor, licensed nurse, dental line 33 hygienist, optometrist, marriage and family therapist, clinical social line 34 worker, professional clinical counselor, or any other person who line 35 is currently licensed under Division 2 (commencing with Section line 36 500) of the Business and Professions Code. line 37 (22)  An emergency medical technician I or II, paramedic, or line 38 other person certified pursuant to Division 2.5 (commencing with line 39 Section 1797) of the Health and Safety Code. 97 — 14 — AB 1737 line 1 (23)  A psychological assistant registered pursuant to Section line 2 2913 of the Business and Professions Code. line 3 (24)  A marriage and family therapist trainee, as defined in line 4 subdivision (c) of Section 4980.03 of the Business and Professions line 5 Code. line 6 (25)  An unlicensed associate marriage and family therapist line 7 registered under Section 4980.44 of the Business and Professions line 8 Code. line 9 (26)  A state or county public health employee who treats a minor line 10 for venereal disease or any other condition. line 11 (27)  A coroner. line 12 (28)  A medical examiner or other person who performs line 13 autopsies. line 14 (29)  A commercial film and photographic print or image line 15 processor as specified in subdivision (e) of Section 11166. As used line 16 in this article, “commercial film and photographic print or image line 17 processor” means a person who develops exposed photographic line 18 film into negatives, slides, or prints, or who makes prints from line 19 negatives or slides, or who prepares, publishes, produces, develops, line 20 duplicates, or prints any representation of information, data, or an line 21 image, including, but not limited to, any film, filmstrip, photograph, line 22 negative, slide, photocopy, videotape, video laser disc, computer line 23 hardware, computer software, computer floppy disk, data storage line 24 medium, CD-ROM, computer-generated equipment, or line 25 computer-generated image, for compensation. The term includes line 26 any employee of that person; it does not include a person who line 27 develops film or makes prints or images for a public agency. line 28 (30)  A child visitation monitor. As used in this article, “child line 29 visitation monitor” means a person who, for financial line 30 compensation, acts as a monitor of a visit between a child and line 31 another person when the monitoring of that visit has been ordered line 32 by a court of law. line 33 (31)  An animal control officer or humane society officer. For line 34 the purposes of this article, the following terms have the following line 35 meanings: line 36 (A)  “Animal control officer” means a person employed by a line 37 city, county, or city and county for the purpose of enforcing animal line 38 control laws or regulations. line 39 (B)  “Humane society officer” means a person appointed or line 40 employed by a public or private entity as a humane officer who is 97 AB 1737 — 15 — line 1 qualified pursuant to Section 14502 or 14503 of the Corporations line 2 Code. line 3 (32)  A clergy member, as specified in subdivision (d) of Section line 4 11166. As used in this article, “clergy member” means a priest, line 5 minister, rabbi, religious practitioner, or similar functionary of a line 6 church, temple, or recognized denomination or organization. line 7 (33)  Any custodian of records of a clergy member, as specified line 8 in this section and subdivision (d) of Section 11166. line 9 (34)  An employee of any police department, county sheriff ’s line 10 department, county probation department, or county welfare line 11 department. line 12 (35)  An employee or volunteer of a Court Appointed Special line 13 Advocate program, as defined in Rule 5.655 of the California Rules line 14 of Court. line 15 (36)  A custodial officer, as defined in Section 831.5. line 16 (37)  A person providing services to a minor child under Section line 17 12300 or 12300.1 of the Welfare and Institutions Code. line 18 (38)  An alcohol and drug counselor. As used in this article, an line 19 “alcohol and drug counselor” is a person providing counseling, line 20 therapy, or other clinical services for a state licensed or certified line 21 drug, alcohol, or drug and alcohol treatment program. However, line 22 alcohol or drug abuse, or both alcohol and drug abuse, is not, in line 23 and of itself, a sufficient basis for reporting child abuse or neglect. line 24 (39)  A clinical counselor trainee, as defined in subdivision (g) line 25 of Section 4999.12 of the Business and Professions Code. line 26 (40)  An associate professional clinical counselor registered line 27 under Section 4999.42 of the Business and Professions Code. line 28 (41)  An employee or administrator of a public or private line 29 postsecondary educational institution, whose duties bring the line 30 administrator or employee into contact with children on a regular line 31 basis, or who supervises those whose duties bring the administrator line 32 or employee into contact with children on a regular basis, as to line 33 child abuse or neglect occurring on that institution’s premises or line 34 at an official activity of, or program conducted by, the institution. line 35 Nothing in this paragraph shall be construed as altering the line 36 lawyer-client privilege as set forth in Article 3 (commencing with line 37 Section 950) of Chapter 4 of Division 8 of the Evidence Code. line 38 (42)  An athletic coach, athletic administrator, or athletic director line 39 employed by any public or private school that provides any 97 — 16 — AB 1737 line 1 combination of instruction for kindergarten, or grades 1 to 12, line 2 inclusive. line 3 (43)  (A)  A commercial computer technician as specified in line 4 subdivision (e) of Section 11166. As used in this article, line 5 “commercial computer technician” means a person who works for line 6 a company that is in the business of repairing, installing, or line 7 otherwise servicing a computer or computer component, including, line 8 but not limited to, a computer part, device, memory storage or line 9 recording mechanism, auxiliary storage recording or memory line 10 capacity, or any other material relating to the operation and line 11 maintenance of a computer or computer network system, for a fee. line 12 An employer who provides an electronic communications service line 13 or a remote computing service to the public shall be deemed to line 14 comply with this article if that employer complies with Section line 15 2258A of Title 18 of the United States Code. line 16 (B)  An employer of a commercial computer technician may line 17 implement internal procedures for facilitating reporting consistent line 18 with this article. These procedures may direct employees who are line 19 mandated reporters under this paragraph to report materials line 20 described in subdivision (e) of Section 11166 to an employee who line 21 is designated by the employer to receive the reports. An employee line 22 who is designated to receive reports under this subparagraph shall line 23 be a commercial computer technician for purposes of this article. line 24 A commercial computer technician who makes a report to the line 25 designated employee pursuant to this subparagraph shall be deemed line 26 to have complied with the requirements of this article and shall be line 27 subject to the protections afforded to mandated reporters, including, line 28 but not limited to, those protections afforded by Section 11172. line 29 (44)  Any athletic coach, including, but not limited to, an line 30 assistant coach or a graduate assistant involved in coaching, at line 31 public or private postsecondary educational institutions. line 32 (45)  An individual certified by a licensed foster family agency line 33 as a certified family home, as defined in Section 1506 of the Health line 34 and Safety Code. line 35 (46)  An individual approved as a resource family, as defined in line 36 Section 1517 of the Health and Safety Code and Section 16519.5 line 37 of the Welfare and Institutions Code. line 38 (47)  A qualified autism service provider, a qualified autism line 39 service professional, or a qualified autism service paraprofessional, 97 AB 1737 — 17 — line 1 as defined in Section 1374.73 of the Health and Safety Code and line 2 Section 10144.51 of the Insurance Code. line 3 (48)  A human resource employee of a business subject to Part line 4 2.8 (commencing with Section 12900) of Division 3 of Title 2 of line 5 the Government Code that employs minors. For purposes of this line 6 section, a “human resource employee” is the employee or line 7 employees designated by the employer to accept any complaints line 8 of misconduct as required by Chapter 6 (commencing with Section line 9 12940) of Part 2.8 of Division 3 of Title 2 of the Government line 10 Code. line 11 (49)  An adult person whose duties require direct contact with line 12 and supervision of minors in the performance of the minors’ duties line 13 in the workplace of a business subject to Part 2.8 (commencing line 14 with Section 12900) of Division 3 of Title 2 of the Government line 15 Code is a mandated reporter of sexual abuse, as defined in Section line 16 11165.1. Nothing in this paragraph shall be construed to modify line 17 or limit the person’s duty to report known or suspected child abuse line 18 or neglect when the person is acting in some other capacity that line 19 would otherwise make the person a mandated reporter. line 20 (b)  Except as provided in paragraph (35) of subdivision (a), line 21 volunteers of public or private organizations whose duties require line 22 direct contact with and supervision of children are not mandated line 23 reporters but are encouraged to obtain training in the identification line 24 and reporting of child abuse and neglect and are further encouraged line 25 to report known or suspected instances of child abuse or neglect line 26 to an agency specified in Section 11165.9. line 27 (c)  (1)  Except as provided in subdivision (d) and paragraph (2), line 28 employers are strongly encouraged to provide their employees line 29 who are mandated reporters with training in the duties imposed line 30 by this article. This training shall include training in child abuse line 31 and neglect identification and training in child abuse and neglect line 32 reporting. Whether or not employers provide their employees with line 33 training in child abuse and neglect identification and reporting, line 34 the employers shall provide their employees who are mandated line 35 reporters with the statement required pursuant to subdivision (a) line 36 of Section 11166.5. line 37 (2)  Employers subject to paragraphs (48) and (49) of subdivision line 38 (a) shall provide their employees who are mandated reporters with line 39 training in the duties imposed by this article. This training shall line 40 include training in child abuse and neglect identification and 97 — 18 — AB 1737 line 1 training in child abuse and neglect reporting. The training line 2 requirement may be met by completing the general online training line 3 for mandated reporters offered by the Office of Child Abuse line 4 Prevention in the State Department of Social Services. line 5 (d)  Pursuant to Section 44691 of the Education Code, school line 6 districts, county offices of education, state special schools and line 7 diagnostic centers operated by the State Department of Education, line 8 and charter schools shall annually train their employees and persons line 9 working on their behalf specified in subdivision (a) in the duties line 10 of mandated reporters under the child abuse reporting laws. The line 11 training shall include, but not necessarily be limited to, training in line 12 child abuse and neglect identification and child abuse and neglect line 13 reporting. line 14 (e)  (1)  On and after January 1, 2018, pursuant to Section line 15 1596.8662 of the Health and Safety Code, a childcare licensee line 16 applicant shall take training in the duties of mandated reporters line 17 under the child abuse reporting laws as a condition of licensure, line 18 and a childcare administrator or an employee of a licensed child line 19 daycare facility shall take training in the duties of mandated line 20 reporters during the first 90 days when that administrator or line 21 employee is employed by the facility. line 22 (2)  A person specified in paragraph (1) who becomes a licensee, line 23 administrator, or employee of a licensed child daycare facility shall line 24 take renewal mandated reporter training every two years following line 25 the date on which that person completed the initial mandated line 26 reporter training. The training shall include, but not necessarily be line 27 limited to, training in child abuse and neglect identification and line 28 child abuse and neglect reporting. line 29 (f)  Unless otherwise specifically provided, the absence of line 30 training shall not excuse a mandated reporter from the duties line 31 imposed by this article. line 32 (g)  Public and private organizations are encouraged to provide line 33 their volunteers whose duties require direct contact with and line 34 supervision of children with training in the identification and line 35 reporting of child abuse and neglect. line 36 SEC. 7. No reimbursement is required by this act pursuant to line 37 Section 6 of Article XIII B of the California Constitution for certain line 38 costs that may be incurred by a local agency or school district line 39 because, in that regard, this act creates a new crime or infraction, line 40 eliminates a crime or infraction, or changes the penalty for a crime 97 AB 1737 — 19 — line 1 or infraction, within the meaning of Section 17556 of the line 2 Government Code, or changes the definition of a crime within the line 3 meaning of Section 6 of Article XIII B of the California line 4 Constitution. line 5 However, if the Commission on State Mandates determines that line 6 this act contains other costs mandated by the state, reimbursement line 7 to local agencies and school districts for those costs shall be made line 8 pursuant to Part 7 (commencing with Section 17500) of Division line 9 4 of Title 2 of the Government Code. O 97 — 20 — AB 1737 AB 1988 Page 1 Date of Hearing: March 23, 2022 ASSEMBLY COMMITTEE ON COMMUNICATIONS AND CONVEYANCE Sharon Quirk-Silva, Chair AB 1988 (Bauer-Kahan) – As Amended March 17, 2022 SUBJECT: 9-8-8 mental health crisis hotline system SUMMARY: This bill establishes a 9-8-8 mental health crisis hotline system in state government. Specifically, this bill: 1) Provides that the hotline may be referred to as the Miles Hall Mental Health and Suicide Prevention Lifeline. 2) Provides that the Office of Emergency Services (CalOES) shall administer the system components of the 9-8-8 system. EXISTING LAW: 1) Establishes the Warren-911-Emergency Assistance Act, which requires every public agency to have in operation a telephone service which automatically connects a person dialing the digits “911” to an established public safety answering point (PSAP) from any communications device; requires every “911” system to include police, firefighting, emergency medical, and ambulance services. (Government Code § 53100 et seq.) 2) Sets a fee on each telephone access line, not to exceed $0.80 per access line per month, to fund the “911” emergency system overseen by the OES. (Revenue & Taxation Code § 41030) 3) Directs the CPUC to fund six public purpose programs through the assessment of surcharges on telecommunications customers which are collectively 7.749 percent of a customer’s provider charges as of December 2020. (Public Utilities Code § 280 et seq. and § 873) 4) Designates “988” as the 3-digit dialing code for the National Suicide Prevention Lifeline (NSPL) and requires that service providers transmit all calls initiated by an end user dialing “988” to the current toll free access number for the NSPL no later than July 16, 2022, and pay for the costs of doing so. (FCC 20-100) 5) Establishes the federal National Suicide Hotline Designation (NSHD) Act, designating the three-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 NSPL maintained by the Assistant Secretary of the Department of Health and Human Services’ Substance Abuse and Mental Health Services Administration (SAMHSA) and the Veterans Crisis line maintained by the Secretary of Veterans Affairs. (Public Law No: 116-172, 10/17/2020) FISCAL EFFECT: Unknown. AB 1988 Page 2 BACKGROUND: 1) National Suicide Prevention Lifeline, 1-800-273-TALK –The SAMHSA administers and funds the National Suicide Prevention Lifeline, in partnership with the Department of Veterans Affairs, which manages the Veterans Crisis Line. A national network of local crisis hotline centers are in place with over 180 centers nationally (13 in California1) which connect persons in each state to local crisis centers 24/7 through this toll -free number. California had the highest rate of calls initiated from the state (the most in the country; twice that of New York and a third more than Texas) from October to December 2020 with approximately 60,000 calls initiated and 50,000 calls answered for an in-state answered rate of 85%. 2) Federal Government Implements “988” – In July of 2020, the FCC adopted rules designating a new phone number for Americans in crisis to connect with suicide prevention and mental health crisis counselors. The transition, which is currently underway, will result in phone service providers directing all “988” calls to the existing NSPL by July 16, 2022. The transition time gives phone companies time to make necessary network changes (the costs of which they are required absorb) and is intended to additionally provide time for the NSPL to prepare for a likely increase in the volume of calls following the switch. Under the new rules, calls to “988” will be directed to 1-800-273-TALK, which will remain operational during and after the “988” transition. 3) “911” & Mental Health Crises – Several jurisdictions in the United States are considering, piloting, or implementing changes to “911” response systems to remove law enforcement and instead dispatch mental health crisis teams. It has been reported that the new approach addresses: “…both the lack of community-focused mental health resources and the dangers inherent in police encounters by creating specialized Crisis Intervention Teams (CIT) or similar approaches for dealing with people experiencing mental health or substance abuse crises. These teams are comprised of specially trained police officers and mental health professionals. They collaborate to address and de-escalate high-stress mental health situations, while having the range of skills required to handle possibly dangerous developments. The teams can also help individuals obtain longer-term care.2 COMMENTS: 1) Author’s Statement: Miles Hall was a young Black man, beloved by his family and engaged in his community, who struggled throughout his life with serious mental health challenges. His parents were proactive in supporting their Miles, using whatever resources they could find. On a sunny June day in 2019, while working with his grandmother in the family garden, 1 Suicide Prevention of Yolo County; WellSpace Health, Sacramento; Buckelew Suicide Prevention Program, Novato; Contra Costa Crisis Center; Crisis Support Services of Alameda County; Star Vista, San Carlos; Felton Institute, San Francisco; Santa Clara County Suicide and Crisis Services; Suicide Prevention Service of the Central Coast; Central Valley Suicide Prevention Hotline, Kings View; Kern Behavioral Health & Recovery Service Hotline; Suicide Prevention Center, Didi Hirsch Mental Health Services; and Opt um, San Diego. 2 Innovative Solutions to Address the Mental Health Crisis: Shifting Away from Police as First Responders , Brookings Institution, November 23, 2020, available here. AB 1988 Page 3 Miles had a schizophrenic episode. His mother was home and called the mental health police officer with the department to respond. Before the mental health officer arrived, police officers made it to the scene. They had no training to care for Miles, and only saw him as a threat. Within minutes of their arrival, they shot and killed Miles. Miles died because we failed to provide alternatives to police. A mental health crisis is not a crime, and no one deserves to trade their life for aid. AB 1988 honors all of those who have lost their lives in their time of most need by naming the 9-8-8 phone line the Miles Hall Mental Health and Suicide Prevention Lifeline. 2)Legislative Intent. As currently drafted, this bill would establish a new program as a component of the existing 9-1-1- system and under the administration of CalOES. However, the author has represented to committee staff that the intention of this bill is not to create a new program. Rather, the intent of this bill is simply to memorialize the 9-8-8 hotline in the name of Miles Hall. To create a new program, the author has other pending legislation in the Senate (AB 988) that would formally establish a state 9-8-8 hotline in state government and fund the program via surcharge on telephone bills. In order to align this bill with the author’s stated intent, the author may wish to amend their bill to strike the current language and replace it with: a)The following language: Section 53100 of the Government Code is amended to read: This article shall be known and may be cited as the Warren-911-Emergency Assistance Act & Miles Hall -988 -Mental Health and Suicide Prevention Lifeline. REGISTERED SUPPORT / OPPOSITION: Support CTIA Opposition None on file Analysis Prepared by: Emilio Perez / C. & C. / (916) 319-2637 Tri-Valley Cities DANVILLE • DUBLIN • LIVERMORE • PLEASANTON • SAN RAMON March 29, 2022 The Honorable Alex Padilla The Honorable Dianne Feinstein United States Senate United States Senate 112 Hart Senate Office Building 331 Hart Senate Office Building Washington, DC 20510 Washington, DC 20510 The Honorable Marc DeSaulnier The Honorable Eric Swalwell United States House of Representatives United States House of Representatives 503 Cannon House Office Building 174 Cannon House Office Building Washington, DC 20515 Washington, DC 20515 Re: Letter of Support for the Tri-Valley Cities Coalition Fiscal Year 2023 Appropriations Requests Dear Senator Padilla, Senator Feinstein, Congressman DeSaulnier, and Congressman Swalwell: We write to express our support for the federal funding requests submitted by the Tri-Valley Cities Coalition – which includes our Cities of Dublin, Livermore, Pleasanton, San Ramon, and the Town of Danville – in the Fiscal Year 2023 Appropriations process. Our five jurisdictions partner together to form one cohesive voice in matters of policy and advocacy. The coalition specifically works closely with local and regional partners in the field of mental health, which is an issue of growing concern in the region and nationwide. In addition to mental health, the coalition works collaboratively in the field of transportation, together forming the Tri-Valley Transportation Council (“TVTC”), which is a joint powers authority formed pursuant to a Joint Exercise of Powers Agreement along with the County of Alameda and the County of Contra Costa. Being vested in our mutual interests in the fields of mental health and transportation, we seek to partner with you to secure funding in the Fiscal Year 2023 Federal Appropriations process. The funding requests below would have a strong and lasting impact on our region and the surrounding regions across Northern California. The Projects Are: •AXIS Mental Health Services: Funding for the AXIS Bridge mental health urgent care system to increase access to services via telehealth to the entire Tri-Valley region in order to meet the needs of our communities. •Valley Link Rail: Funding for the Valley Link Rail project which will improve connectivity within the Northern California Megaregion: connecting housing, people, and jobs in an equitable and environmentally sustainable manner. ATTACHMENT B Tri-Valley Cities DANVILLE • DUBLIN • LIVERMORE • PLEASANTON • SAN RAMON Thank you for your consideration of these budget requests which will provide significant benefits to our five communities as well as many others across Northern California. Sincerely, __________________ ____________________ ____________________ Town of Danville City of Dublin City of Livermore Mayor Newell Arnerich Mayor Melissa Hernandez Mayor Bob Woerner __________________________ __________________________ City of Pleasanton City of San Ramon Mayor Karla Brown Mayor Dave Hudson Tri-Valley Cities DANVILLE • DUBLIN • LIVERMORE • PLEASANTON • SAN RAMON March 30, 2022 The Honorable Chris Holden California State Assembly 1021 O Street, Suite 5650 Sacramento, CA 95814 RE: Assembly Bill 1737 (Holden) Children’s camps: local registration and inspections Letter of Opposition Unless Amended from the Tri-Valley Cities Dear Assemblymember Holden, On behalf of the Tri-Valley Cities Coalition, which includes the Cities of Dublin, Livermore, Pleasanton, San Ramon, and the Town of Danville, we write to express our respectful opposition to your bill, AB 1737, unless amended to relieve local municipal entities of the various stringent requirements imposed on them in this bill. As you know, children’s camps are extremely important to the growth and maturation of youth, while also functioning as necessary respite for parents or guardians who work or have various other obligations which preclude them from being with their children at all times. Additionally, we agree with what we believe to be the intent of this bill – providing greater oversight of these camps to ensure the safety of children. Nevertheless, AB 1737 put a tremendous number of new burdens on cities and city staff, who are already very often short staffed and overstretched. Specifically, this bill would require local agencies such as a city to: develop registration forms, review registrations, facilitate unannounced inspections, maintain records of inspections, write up notices for infractions, submit annual camp reports to DPH, and more. We would urge you and the Legislature to consider amending this bill to take away responsibilities for the stringent oversight and all other requirements from cities. Again, we must respectfully oppose Assembly Bill 1737, but we thank you for your consideration of our concerns and hope to work with you and your office on amendments to address them. Sincerely, __________________________________________________________ Town of Danville City of Dublin City of Livermore Mayor Newell Arnerich Mayor Melissa Hernandez Mayor Bob Woerner ATTACHMENT C Tri-Valley Cities DANVILLE • DUBLIN • LIVERMORE • PLEASANTON • SAN RAMON CC: Senator Steve Glazer Assemblymember Rebecca Bauer-Kahan Assemblymember Jim Wood, Chair – Health Committee ____________________________________________________ City of Pleasanton City of San Ramon Mayor Karla Brown Mayor Dave Hudson Tri-Valley Cities DANVILLE • DUBLIN • LIVERMORE • PLEASANTON • SAN RAMON March 30, 2022 The Honorable Marc Berman California State Assembly 1021 O Street, Suite 6130 Sacramento, CA 95814 RE: Assembly Bill 2063 (Berman) Density bonuses: affordable housing impact fees Letter of Opposition with Comments from the Tri-Valley Cities Dear Assemblymember Berman, On behalf of the Tri-Valley Cities Coalition, which includes the Cities of Dublin, Livermore, Pleasanton, San Ramon, and the Town of Danville, we write to express our respectful opposition to your bill, AB 2063, and seek to provide thoughtful comments as to why we must oppose. As you know, it is a top priority for cities to ensure their residents are provided with quality services and key infrastructure. Cities across California, our 5 jurisdictions included, use various fees such as development fees to pay for those critical services and capital facilities mentioned above – these include additional water and sewer systems, roads, schools, libraries and parks and recreation facilities made necessary by the presence of new residents in the area. AB 2063 would remove cities’ ability to levy impact fees including inclusionary zoning fees, in-lieu fees, and public benefit fees from a housing development’s density bonus units. Cities are already prohibited from imposing the above-mentioned fees on a housing development’s affordable units. This bill would be another massive hit to cities and the actual residents living in all communities across the state, including residents that are living in the affordable units and density bonus units. If AB 2063 insists on the prohibition of the above-mentioned fees on density bonus units, then we would urge you and the Legislature to consider providing a funding source for municipalities to pay for the infrastructure and services which must grow with population growth, all of which would normally be funded by the fees. Again, we must respectfully oppose Assembly Bill 2063, but we thank you for your consideration of our concerns and hope that they can be addressed in this bill. Sincerely, __________________________________________________________ Town of Danville City of Dublin City of Livermore Mayor Newell Arnerich Mayor Melissa Hernandez Mayor Bob Woerner ATTACHMENT D Tri-Valley Cities DANVILLE • DUBLIN • LIVERMORE • PLEASANTON • SAN RAMON CC: Senator Steve Glazer Assemblymember Rebecca Bauer-Kahan Assemblymember Buffy Wicks, Chair – Housing and Community Development Committee ____________________________________________________ City of Pleasanton City of San Ramon Mayor Karla Brown Mayor Dave Hudson Tri-Valley Cities DANVILLE • DUBLIN • LIVERMORE • PLEASANTON • SAN RAMON March 30, 2022 The Honorable Rebecca Bauer-Kahan California State Assembly 1021 O Street, Suite 6320 Sacramento, CA 95814 RE: Assembly Bill 2374 (Bauer-Kahan) Crimes against public health and safety: illegal dumping – Letter of Support from the Tri-Valley Cities Dear Assemblymember Bauer-Kahan, On behalf of the Tri-Valley Cities Coalition, which includes the Cities of Dublin, Livermore, Pleasanton, San Ramon, and the Town of Danville, we write to express our strong support for your bill, AB 2374, related to illegal dumping. As you know, illegal dumping, whether by individuals, businesses, or other entities is a growing issue that affects the health and safety of many California residents. There needs to be more serious enforcement and penalties against those who engage in illegal dumping – AB 2374 does just that, by increasing financial penalties for illegal dumping while also requiring the courts to order those convicted of doing so in commercial quantities, to remove the waste or pay for the removal of the waste. We thank you for your work on this important and growing issue, and we are pleased to support Assembly Bill 2374. Sincerely, CC: Senator Steve Glazer Assemblymember Reginald Jones-Sawyer, Chair – Public Safety Committee __________________________________________________________ Town of Danville City of Dublin City of Livermore Mayor Newell Arnerich Mayor Melissa Hernandez Mayor Bob Woerner ____________________________________________________ City of Pleasanton City of San Ramon Mayor Karla Brown Mayor Dave Hudson ATTACHMENT E “Small Town Atmosphere Outstanding Quality of Life” 5 1 0 L A G O N D A W A Y, D A N V I L L E , C A L I F O R N I A 9 4 5 2 6 Administration Building Engineering & Planning Transportation Maintenance Police Parks and Recreation (925) 314-3388 (925) 314-3330 (925) 314-3310 (925) 314-3320 (925) 314-3450 (925) 314-3700 (925) 314-3400 March 31, 2022 The Honorable Eduardo Garcia Chair, Assembly Utilities and Energy Committee State Capitol P.O. Box 942849, Room 4140 Sacramento, CA 94249 Re: AB 1814 (Grayson) - SUPPORT Dear Assemblymember Garcia, On behalf of the Town of Danville, I write in support of AB 1814, a narrow bill that would allow Community Choice Aggregators (CCAs) to submit applications to the California Public Utilities Commission (CPUC) to receive funding to support transportation electrification. The Town of Danville is a member of Marin Clean Energy (MCE) and supports efforts to ensure that CCAs have a full suite of tools necessary to confront the climate crisis by eliminating fossil fuel greenhouse gas emissions and to create equitable community benefits. Transportation electrification (TE) is a vital component of California’s climate change mitigation strategy, as well as a key environmental priority for the Town of Danville. With an ambitious state goal of achieving at least five million zero-emission vehicles (ZEVs) on the road by 2030 and 250,000 electric vehicle charging stations by 2025, the Town of Danville seeks to ensure that an appropriate share of these investments is located in and benefits Danville residents. CCAs, as local government agencies themselves, are particularly well - suited to deploy TE infrastructure in ways that best benefit local communities and residents. Today, all customers pay into the programs administered by the CPUC, but only investor - owned utilities (IOUs) can access those funds to support their programs. Importantly, under AB 1814, CCAs would have to apply for the funds in the same manner that IOUs do. The Town of Danville supports AB 1814 because it would correct this funding inequity and allow all customers to fully benefit from the programs their monthly bills support. By adding effective and nimble additional administrators to the CPUC’s programs, AB 1814 will make the CPUC’s TE programs more successful as well. ATTACHMENT F March 31, 2022 Page 2 CCAs have a proven track record of serving our customers and communities with programs and service options tailored to meet local needs and priorities. AB 1814 will help to expand upon already-successful CCA TE offerings and ensure ratepayer fairness for CCA communities. For these reasons, the Town of Danville is pleased to support AB 1814. Thank you for your leadership on this important issue. Sincerely, _____________________________ NEWELL ARNERICH, MAYOR Cc: The Honorable Assemblymember Tim Grayson Honorable Members of the Assembly Utilities and Energy Committee Laura Shybut, Consultant, Assembly Utilities and Energy Committee Tri-Valley Cities DANVILLE • DUBLIN • LIVERMORE • PLEASANTON • SAN RAMON April 1, 2022 The Honorable Gavin Newsom Governor of California 1021 O Street, Suite 900 Sacramento, CA 95814 The Honorable Nancy Skinner The Honorable Phil Ting California State Senate California State Assembly 1020 N Street, Suite 502 1021 O street, Suite 8230 Sacramento, CA 95814 Sacramento, CA 95814 Re: 2022 January Budget Proposal for 9-8-8 Behavioral Health Crisis Hotline Funding Request for Early Action- Letter from the Tri-Valley Cities Dear Governor Newsom, Senator Skinner, and Assemblymember Ting: On behalf of the Tri-Valley Cities Coalition, which includes the Cities of Dublin, Livermore, Pleasanton, San Ramon, and the Town of Danville, we write to express our strong support for the $7.5 million General Fund ($6 million ongoing) proposed in the 2022 January Budget Proposal to advance implementation of the 9-8-8 call system and support call handling equipment. These investments are critical, so existing crisis hotline centers have the needed resources to process additional 9-8-8 calls and coordinate and transfer calls with no loss of information between the 9- 8-8 and 911 systems. We also support the $1.4 billion for mobile crisis teams to serve people in Medi-Cal, which allows the state to leverage the 85% federal match, as well as the additional $205M has been proposed for mobile crisis team infrastructure. As you know, the current national hotline for 24-hour mental health and suicide prevention will not be able to deliver on the promises proper service and operability once it switches to “9-8-8”, unless states supplement federal money with additional funding before July 1, 2022, when the new line goes live. Right now, the crisis line is answered by a patchwork national network of more than 180 call centers, often nonprofits, that juggle several hotlines and rely on both paid counselors and volunteers. As such, early budget action to allocate the aforementioned funds is absolutely necessary to ensure that the State of California is ready to act in its full capacity on day one of the 9-8-8 system going live. ATTACHMENT G Tri-Valley Cities DANVILLE • DUBLIN • LIVERMORE • PLEASANTON • SAN RAMON Thank you for your work on this critical policy topic, and we hope the Administration and Legislature can work together to ensure that funding is allocated before July 1, 2022. Sincerely, CC: Assemblymember Rebecca Bauer-Kahan __________________ ____________________ ____________________ Town of Danville City of Dublin City of Livermore Mayor Newell Arnerich Mayor Melissa Hernandez Mayor Bob Woerner __________________________ __________________________ City of Pleasanton City of San Ramon Mayor Karla Brown Mayor Dave Hudson “Small Town Atmosphere Outstanding Quality of Life” 5 1 0 L A G O N D A W A Y, D A N V I L L E , C A L I F O R N I A 9 4 5 2 6 Administration Building Engineering & Planning Transportation Maintenance Police Parks and Recreation (925) 314-3388 (925) 314-3330 (925) 314-3310 (925) 314-3320 (925) 314-3450 (925) 314-3700 (925) 314-3400 April 11, 2022 Alameda County Board of Supervisors County of Alameda, Administration Building 1221 Oak Street, #536 Oakland, CA 94612 Re: Stanford Health Care –Valley Care Level II Trauma Center Town of Danville – Letter of Support Dear Alameda County Board of Supervisors, On behalf of the Town of Danville, I write to support the addition of a Level II Trauma Center at the Stanford Health Care –Valley Care (SHC-VC) main hospital which is located in Pleasanton. This would be a vital addition to our health care system in the Tri-Valley and would keep Tri-Valley residents within their community when seeking this level of care. The Tri-Valley is now the fastest growing region in the Bay Area and is expected to grow by 17% by 2040. Such growth requires continued infrastructure investment as well as high quality and proximate trauma care. Currently, to access a Trauma center, Tri-Valley residents must travel many miles, as shown below, on average. •Eden Medical Center (Castro Valley, CA) – 15 miles •Highland Hospital (Oakland, CA) – 25 miles •John Muir Medical Center-Walnut Creek Medical Center (Walnut Creek, CA) – 21 miles •Children’s Hospital Oakland (Oakland, CA) – 28 miles •San Joaquin General Hospital (French Camp, CA) – 42 miles With the level of traffic experienced on I-580 and I-680, it can make it very difficult and stressful to reach the needed level of care. For Trauma related care, every second counts! By adding a Level II Trauma Center at Stanford Health Care – Valley Care in Pleasanton, we will be able to decompress the Eden Medical Center and shorten ambulance offload times. This new Trauma Center could also provide additional support, if needed, to Contra Costa and San Joaquin patients when needed. Furthermore, with the connection with ATTACHMENT H April 20, 2022 Page 2 Stanford Health Care – Palo Alto, the Level II Trauma Center would have a seamless transfer protocol to a Level I Trauma Center when required. Last, but not least, this expansion would ensure that Tri-Valley residents are able to stay within their own community to access trauma care. The inclusion of a Level II Trauma Center in Pleasanton will help further access to and equity in the provision of such services for the residents of the Tri-Valley who must travel, in times of emergency, to the western portions of the county where greater investment and access to such services currently exists. The Town of Danville strongly urges the Alameda County Board of Supervisors to bring a Level II Trauma Center to SHC-VC in Pleasanton. Sincerely, _____________________________ NEWELL ARNERICH, MAYOR