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HomeMy WebLinkAbout092722 - 3.1 LEGISLATIVE COMMITTEE MEMORANDUM 3.1 TO: Mayor and Town Council September 27, 2022 SUBJECT: September Legislative Report BACKGROUND The 2021-2022 Legislative Session officially ended on August 31. Of the 2,055 bills introduced at the beginning of the year, the Legislature passed a total of 1,440. Following the adjournment of the Legislature, the Governor has until September 30 to sign or veto bills. As of September 16, Governor Newsom has signed 651 measures into law, and vetoed 17. Among legislation signed into law includes a sweeping number of climate measures to cut pollution and accelerate the state’s transition to clean energy. SB 1338, the Community Assistance, Recovery, and Empowerment (CARE) Act was also signed into law. SB 1338 marks a massive shift toward a re-centralized system of state-sponsored mental health care services. Bills signed/approved by the Governor are chaptered into law by the California Secretary of State and take effect on January 1, 2023. DISCUSSION The Town’s Legislative Committee follows legislation that is identified as a priority by the Danville Town Council based upon the Town’s legislative framework and the Tri- Valley Cities coalition. 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. The Town has identified and advocated on the following bills that impact Danville. September Legislative Update 2 September 27, 2022 AB 2438 (Friedman) Transportation funding: guidelines and plans. This bill requires various state transportation programs to incorporate strategies from the Climate Action Plan for Transportation Infrastructure (CAPTI) into program guidelines. The bill also requires various state agencies to establish new transparency and accountability guidelines for certain transportation funding programs, as specified. This bill passed through the Legislature and has been presented to the Governor. Vote Status: Senator Glazer: NVR; Assemblymember Rebecca Bauer-Kahan: Yes (Transportation) Position: Oppose 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 18 feet on units detached and 25 feet attached; and on a lot within ½ mile walking distance of a major transit stop or a high-quality transit corridor, or on a lot with existing multifamily, multi-story dwelling. This bill passed through the Legislature and has been presented to the Governor. Vote Status: Senator Glazer: No; Assemblymember Rebecca Bauer-Kahan: No (Housing) Position: Oppose Tri-Valley Cities Coalition Below is the list of bills the TVC identified at the beginning of the 2021/22 Legislative session to track. AB 988: (Bauer-Kahan) Mental Health: 988 Suicide and Crisis Lifeline. This bill would require the Office of Emergency Services to verify interoperability between and across 911 and 988. This bill would also require the California Health and Human Services Agency to create a set of recommendations to support a 5-year implementation plan for a comprehensive 988 system. This bill passed through the Legislature and has been presented to the Governor. Vote Status: Senator Glazer: Yes; Assemblymember Rebecca Bauer-Kahan: Yes (Mental Health) TVC position: Support AB 2011: (Wicks) Affordable Housing and High Roads Jobs Act of 2022. This bill would create a ministerial, streamlined approval process for 100% affordable housing projects in commercial zones and for mixed-income housing projects along commercial corridors. This bill would also impose specified labor standards on those projects, including requirements that contractors pay prevailing wages, participate in apprenticeship programs, and make specified healthcare expenditures. Implementation of this bill is delayed to July 1, 2023. This bill passed through the Legislature and has been presented to the Governor. Vote Status: Senator Glazer: NVR; Assemblymember Rebecca Bauer-Kahan: Yes (Affordable Housing) TVC position: Oppose with Comments September Legislative Update 3 September 27, 2022 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. This bill passed through the Legislature and has been presented to the Governor. Vote Status: Senator Glazer: Yes; Assemblymember Rebecca Bauer-Kahan: Yes (Climate/Environment) TVC position: Support SB 6: (Caballero) Local planning: housing: commercial zones. This bill, also known as the Middle Class Housing Act of 2022, would establish a housing development project as an allowable use within a zone where office, retail, or parking are principally permitted on the condition that at least 50% of the square footage of the project be devoted to residential uses, density for the development meets or exceeds the applicable density to accommodate housing for lower income households under housing element law; and among other things, the developer certifies that the project is either a public work or will pay prevailing wage and use a skilled and trained workforce for all level of contractors as defined in existing law. This bill passed through the Legislature and has been presented to the Governor. Vote Status: Senator Glazer: NVR; Assemblymember Rebecca Bauer-Kahan: N/A (Housing) TVC Position: Oppose 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 to assist local jurisdictions in complying with the short-lived pollutant strategy regulations, and other additional regulations adopted by the department. This bill passed through the Legislature and was signed by the Governor. Vote Status: Senator Glazer: Yes; Assemblymember Rebecca Bauer-Kahan: Yes (Climate/Environment) 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. This bill passed through the Legislature and was signed by the Governor. Vote Status: Senator Glazer: Yes; Assemblymember Rebecca Bauer-Kahan: Yes (Climate/Environment) TVC position: Support SB 932: (Portantino) General plans: circulation element: bicycle and pedestrian plans and traffic calming plans. This bill would require a city or county, upon any substantive revision of the circulation element, to incorporate the principles of the Federal Highway Administration’s Safe System Approach, to develop bicycle plans, pedestrian plans, and traffic calming plans September Legislative Update 4 September 27, 2022 based on the policies and goals in the circulation element and sets goals for initiation and completion of all actions identified in the plans within 25 years of the date of adoption of the modified circulation element. This bill passed through the Legislature and has been presented to the Governor. Vote Status: Senator Glazer: NVR; Assemblymember Rebecca Bauer-Kahan: Yes (Transportation) TVC Position: Oppose The Tri-Valley Cities Coalition met on Monday, September 12. During the meeting, Townsend Public Affairs provided an update on the 2022 Legislative Session and the State budget. An update was also provided regarding the contract for legislative advocacy services and recommended to renew the contract with Townsend Public Affairs. The next Tri-Valley Cities meeting will be held on December 5, where the agenda for the Washington D.C. advocacy trip will be discussed. Grant Program Updates In the final version of budget bill AB 179, the Town of Danville was allocated $500,000 in state funding for the Fiber Optic Interconnect Network Project, CIP A-620. This is a result of funding requests made to the offices of Senator Glazer and Assemblymember Rebecca Bauer-Kahan. Conclusion It is recommended that the Town Council Legislative Sub-Committee accept this report and direct any questions and/or direction to Town legislative staff. Prepared by: Cat Bravo Management Analyst Reviewed by: Joseph A. Calabrigo Town Manager Attachment A – Bill Summary and Analysis Packet Attachment B – TVC Request for Signature AB 2247 Attachment C – TVC Request for Signature AB 988 September Legislative Update 5 September 27, 2022 Attachment D – TVC Request to Veto AB 2011 Attachment E – TVC Request to Veto SB 6 Attachment F – TVC Request for Signature AB 2374 Attachment G – TVC Request for Signature SB 45 Attachment H – Danville Legislative Framework AB 2438 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 2438 (Friedman) As Amended August 25, 2022 Majority vote SUMMARY This bill requires 1) specified state transportation programs to incorporate strategies from the Climate Action Plan for Transportation Infrastructure (CAPTI) into program guidelines, as provided, and 2) various state transportation entities to establish new transparency and accountability guidelines for certain transportation funding programs, as specified. Senate Amendments 1)Expand transparency and accountability requirements for the following state agencies and state transportation funding programs: a)California Transportation Agency (CalSTA) i)Transit and Intercity Rail Capital Program (TIRCP) ii)State Rail Assistance Program b)California Transportation Commission (CTC) i)Interregional Transportation Improvement Program (ITIP) ii)State Highway Operation and Protection Program (SHOPP) c)California Department of Transportation i)Local Partnership Program (LPP) ii)Trade Corridor Enhancement Program (TCEP) iii)Solutions for Congested Corridors Program (SCCP) 2)Refine the bill to require applicable CAPTI strategies be incorporated into the following state transportation funding program guidelines, no later than January 1, 2024: a)ITIP b)Guiding document for the SHOPP, the State Highway System Management Plan (SHSMP) c)Competitive portion of the LPP d)TCEP e)SCCP ATTACHMENT A AB 2438 Page 2 3)Clarify the financial element of the California Transportation Plan to include a summary of available revenues through the planning period, an analysis of what is feasible within the plan if constrained by a realistic projection of available revenues, including the feasibility of any policy assumptions or scenarios, and a discussion of tradeoffs within the plan considering financial constraints. 4)Make minor and technical amendments for chaptering purposes. COMMENTS California's transportation network consists of streets, highways, railways, bicycle routes, and pedestrian pathways. Funding for the network comes from federal, state, and local taxes, fees and assessments, private investments and tribal investments. Currently, roughly $35 billion (federal, state, and local funds combined) is spent annually in California on building and maintaining the transportation network. Additionally, with the passage of the federal Infrastructure Investment and Jobs Act (IIJA, P.L. 117-58), California is expected to receive approximately $40 billion over five years. Emissions from the transportation sector, the state's largest source of GHGs, are still on the rise despite statewide GHG emission reduction efforts and increasingly ambitious targets. According to ARB's GHG emission inventory, transportation sector emissions have grown to 41% of California's total emissions as of 2017. California has targeted a 22% reduction in vehicle miles travelled (VMT) per capita below 2019 levels by 2045 as part of its larger strategy to reduce GHG emissions. What is CAPTI? On September 20, 2019, Governor Newsom issued Executive Order (EO) N-19- 19, which called for actions from multiple state agencies to reduce GHG emissions and mitigate the impacts of climate change. Specifically, the EO empowered CalSTA to leverage more than $5 billion in annual state transportation spending for construction, operations, and maintenance to help reverse the trend of increased fuel consumption and reduce GHG emissions associated with the transportation sector. The EO directed CalSTA to work to align transportation spending with the state's Climate Change Scoping Plan, where feasible; direct investments to strategically support smart growth to increase infill housing production; reduce congestion through strategies that encourage a reduction in driving and invest further in walking, biking, and transit; and ensure that overall transportation costs for low-income Californians do not increase as a result of these policies. To implement the EO, CalSTA adopted the CAPTI in July 2021. The CAPTI is "a framework and statement of intent for aligning state transportation infrastructure investments with state climate, health, and social equity goals, built on the foundation of the 'fix-it-first' approach established in SB 1". Additionally, CalSTA notes that CAPTI is a living document that can "adapt, pivot, and modify approaches and actions, as needed." The CAPTI contains an overall transportation investment framework and specific strategies to implement the plan through state agency actions. In August 2021, the CTC endorsed CAPTI's framework and strategies and began a process of incorporating it into program guidelines for the programs it administers. AB 285 report finds transportation funding programs need better alignment with state climate goals. AB 285 (Friedman, Chapter 605, Statutes of 2019) required the Strategic Growth Council to examine and report on various aspects of state and regional transportation planning and funding. The California Transportation Assessment Report was developed through work of the AB 2438 Page 3 University of California Institute for Transportation Studies (UCITS). The report includes findings and recommendations to help the state align transportation funding with state climate goals. Specifically, the report suggest this could be done through, "the reviewing and prioritizing various state goals within transportation funding program guidelines or statute. For example, the statute that governs SHOPP and State Transportation Improvement Program (STIP) funding has its goals based on rehabilitation and maintenance, safety, operations, and expansion, but no reference to climate or equity. This revisiting of goals could also involve ensuring that additional funds or future funds (including federal infrastructure funds) are spent in ways that align with priority goals." Amendments taken in the Senate further limit the bill to specific funding programs, and CAPTI, to incorporate the state's climate and land use goals into various funding programs. This is an improved, and implementable version of the bill based on the version heard in the Assembly. According to the Author "AB 2438 requires the state's largest transportation funding sources to incorporate the administration's Climate Action Plan on Transportation Infrastructure (CAPTI) into the guidelines process for project selection for transportation funding. The strategies and principles of CAPTI are something we have been trying to accomplish at the state and federal level in order to build a more connected transportation infrastructure based on efficient land use, equity, and reducing greenhouse gas emissions. We cannot ignore that a $30 billion sector of state funding is directly tied to 40% of California's greenhouse gas emissions. It is time for California to reassess our transportation funding and planning system to put people before the car." Arguments in Support The California Democratic Party writes, "California Democrats are committed to rebuilding a State that provides every person with fair access to improve their lives through good paying jobs, affordable housing, quality education, universal and exceptional healthcare, racial justice and equitable protection against the impacts of climate change. AB 2438 upholds these values and for that the California Democratic Party is proud to support this important piece of legislation." Arguments in Opposition The California Business Roundtable writes, "The CAPTI recommends road diets, or lane reductions, to improve road safety and reduce climate impacts. However, lane reductions would ensure long-term congestion and increased engine idling on already congested freeways and surface roads. Additionally, AB 2438 would reduce the state's transportation capacity at a time when California's goods movement economy urgently needs the Legislature's undivided support to execute recovery of the supply chain infrastructure." FISCAL COMMENTS According to the Senate Appropriations Committee: 1)The Department of Transportation (Caltrans) estimates ongoing costs of approximately $572,000 annually and 3.0 PY of staff for work associated with the development of a fiscally constrained financial element as part of the California Transportation Plan (CTP) and associated recommendations for funding allocations. In addition, Caltrans estimates costs of $2 million on a permanent biennial basis for a consultant contract to prepare the financial element with every update to the Plan. (State Highway Account) AB 2438 Page 4 2) Minor and absorbable costs for Caltrans, the California Transportation Agency (CalSTA), and the California Transportation Commission (CTC) to update their respective specified transportation program guidelines. (State Highway Account) 3) Unknown, potentially significant redirection of transportation funding, to the extent incorporating CAPTI strategies directs allocations to projects and facilities primarily focused on improving greenhouse gas emissions, public health, and equity. This could lead to significant cost pressures to provide additional funding for projects and facilities that would have otherwise received funding under a "fix it first" model, absent the bill. (General Fund, various special funds, federal funds, bond funds) VOTES: ASM TRANSPORTATION: 8-4-3 YES: Friedman, Berman, Kalra, Lee, Bloom, Nazarian, Ward, Wicks NO: Fong, Cunningham, Davies, Nguyen ABS, ABST OR NV: Daly, Gipson, O'Donnell ASM APPROPRIATIONS: 12-4-0 YES: Holden, Bryan, Calderon, Carrillo, Mike Fong, Gabriel, Eduardo Garcia, Levine, Quirk, Robert Rivas, Akilah Weber, Wilson NO: Bigelow, Megan Dahle, Davies, Fong ASSEMBLY FLOOR: 41-23-14 YES: Arambula, Bauer-Kahan, Bennett, Bloom, Boerner Horvath, Mia Bonta, Bryan, Calderon, Carrillo, Mike Fong, Friedman, Gabriel, Cristina Garcia, Eduardo Garcia, Gipson, Haney, Holden, Irwin, Jones-Sawyer, Kalra, Lee, Low, McCarty, Medina, Mullin, Muratsuchi, Nazarian, Quirk, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Santiago, Stone, Ting, Ward, Akilah Weber, Wicks, Wilson, Wood, Rendon NO: Bigelow, Chen, Choi, Cunningham, Megan Dahle, Davies, Flora, Fong, Gallagher, Gray, Kiley, Lackey, Levine, Mathis, Mayes, Nguyen, Patterson, Salas, Seyarto, Smith, Valladares, Voepel, Waldron ABS, ABST OR NV: Aguiar-Curry, Berman, Cervantes, Cooley, Cooper, Daly, Grayson, Maienschein, O'Donnell, Petrie-Norris, Quirk-Silva, Ramos, Blanca Rubio, Villapudua UPDATED VERSION: August 25, 2022 CONSULTANT: Julia Kingsley / TRANS. / (916) 319-2093 FN: 0003686 SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 SB 897 UNFINISHED BUSINESS Bill No: SB 897 Author: Wieckowski (D) Amended: 8/25/22 Vote: 21 SENATE HOUSING COMMITTEE: 5-1, 3/24/22 AYES: Wiener, Cortese, Ochoa Bogh, Skinner, Wieckowski NOES: Bates NO VOTE RECORDED: Caballero, McGuire, Umberg SENATE GOVERNANCE & FIN. COMMITTEE: 5-0, 4/7/22 AYES: Caballero, Nielsen, Durazo, Hertzberg, Wiener SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/19/22 AYES: Portantino, Bradford, Kamlager, Laird, Wieckowski NOES: Bates, Jones SENATE FLOOR: 24-9, 5/25/22 AYES: Allen, Archuleta, Atkins, Bradford, Caballero, Cortese, Dodd, Durazo, Eggman, Gonzalez, Hueso, Hurtado, Kamlager, Laird, Leyva, Limón, Newman, Pan, Roth, Skinner, Stern, Umberg, Wieckowski, Wiener NOES: Bates, Becker, Dahle, Glazer, Grove, Jones, Min, Nielsen, Wilk NO VOTE RECORDED: Borgeas, Hertzberg, McGuire, Melendez, Ochoa Bogh, Portantino, Rubio ASSEMBLY FLOOR: Not available SUBJECT: Accessory dwelling units: junior accessory dwelling units SOURCE: Bay Area Council DIGEST: This bill makes numerous changes to the laws governing accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs), as specified. SB 897 Page 2 Assembly Amendments adjust the allowable ADU height limit that a local may impose depending on certain property features, and address chaptering issues. ANALYSIS: Existing law: 1) Requires a local agency to ministerially approve, within 60 days, in an area zoned for residential or mixed-use, an application for a building permit to create an ADU and a JADU as follows: a) The ADU or JADU that is within a proposed or existing structure, or the same footprint as the existing structure, provided the space has exterior access from the proposed or existing structure and the side and rear setbacks are sufficient for fire and safety. b) One detached ADU that is within a proposed or existing structure or the same footprint as the existing structure, along with one JADU, that may be subject to a size limit of 800 square feet, a height limit of 16 feet, and side and rear yard setbacks of four feet. 2) Requires a local agency to ministerially approve, within 60 days, on a lot with a multifamily dwelling: a) Multiple ADUs within the existing structures that are not used as livable space, if each unit complies with state building standards for dwellings. b) Two detached ADUs that are subject to a height limit of 16 feet and rear and side yard setbacks of four feet. 3) Requires a local agency to mandate a minimum of 30 days on ADU rentals. 4) Provides for a tiered schedule of impact fees based on the size of the ADU, as specified. 5) Provides for a five-year amnesty period during which the owner of an ADU that violates any building standard, may correct the violation if the correction is not immediately necessary to protect public health and safety, as specified. 6) Requires the State Department of Housing and Community Development (HCD) to review each local ADU ordinance after it is adopted and to notify the local agency as to whether it complies with ADU law. Provides for a process for a local agency to respond and authorizes HCD to notify the Attorney General if an ADU ordinance continues to be non-compliant. SB 897 Page 3 7) Authorizes a local agency to count an ADU for purposes of identifying adequate sites for its housing element. This bill: 1) Adjusts the minimum ADU height limit that a local agency may impose, as follows: a) For detached ADUs on a lot with an existing or proposed single family, a 16 feet height limitation is allowed. b) For detached ADUs on a lot with an existing or proposed multifamily dwelling unit, an 18 feet height limitation is allowed. c) For a detached ADU within one-half of one mile walking distance of a major transit stop or a high-quality transit corridor, an 18 feet height limitation is allowed. Also, requires that a local agency must allow an additional two feet in height to accommodate a roof pitch on an ADU that is aligned with the roof pitch of the primary dwelling unit; and d) For ADUs attached to the primary dwelling, a height of 25 feet or the height limitation in the local zoning ordinance that applies to the primary dwelling, whichever is lower, is allowed. 2) Clarifies the following: a) Standards imposed on ADUs must be objective. b) A permitting agency must act by specifically approving or denying an application for an ADU or JADU within 60 days from receiving. And, if a permitting agency denies an application, they must return in writing a full set of comments on how the application can be remedied. c) Any requirement for a zoning clearance or separate zoning review for either an attached or detached dwellings will be constructed in compliance with all other local building standards. 3) Prohibits a local agency from denying a permit for a constructed, unpermitted ADU built before January 1, 2018 for any of the following reasons: a) The ADU is in violation of building standards, but correction of the violation is not necessary to protect the health and safety of the public or occupants of the structure; and SB 897 Page 4 b) The ADU does not comply with state or local ADU law. 4) Provides that the construction of an ADU on a property does not trigger a requirement for fire sprinklers in the proposed or existing primary dwelling. 5) Provides that a local agency cannot require, as a condition for ministerial approval of a permit application for the creation of an ADU or a JADU, the correction of a violation on the primary dwelling unit, provided that correcting the violation is not necessary to protect health and safety. Background According to HCD, “ADUs are an innovative, affordable, effective option for adding much needed housing in California.” ADUs, also known as accessory apartments, accessory dwellings, mother-in-law units, or granny flats, are additional living spaces on single-family or multifamily lots that have a separate kitchen, bathroom, and exterior access independent of the primary residence. These spaces can either be attached to, or detached from, the primary residence. Local ADU ordinances must meet specified parameters outlined in existing state law. Local governments may also adopt ordinances for JADUs, which are no more than 500 square feet and are bedrooms in a single-family home that have an entrance into the unit from the main home and an entrance to the outside from the JADU. The JADU must have cooking facilities, including a sink and stove, but is not required to have a bathroom. The cost of constructing an ADU, however, can still be high. According to the State Treasurer’s Office, many lower income homeowners, as well as homeowners who have not yet built up significant equity in their homes, are struggling to obtain loans to construct ADUs. Comments 1) Encouraging ADU construction. According to a UC Berkeley study, Yes in My Backyard: Mobilizing the Market for Secondary Units, second units are a means to accommodate future growth and encourage infill development in developed neighborhoods. Despite state law requirements for each city in the state to have a ministerial process for approving second units, local regulations often impede development. In response, several bills, including SB 1069 (Wieckowski, 2016), SB 13 (Wieckowski, 2019) and AB 68 (Ting, 2019), have relaxed multiple requirements for the construction and permitting of ADUs and JADUs. SB 897 Page 5 According to a 2020 UCLA Working Paper, “state ADU and JADU legislation has created the market-feasible potential for nearly 1.5 million new units.” Since 2013, the number of permitted ADUs increased from 799 to 12,813 in 2020, for a total of almost 44,000 ADUs permitted statewide. With localities across the state facing large regional housing needs allocations for the sixth housing element cycle, ADUs and JADUs represent a key tool in the housing production toolbox. 2) Allowable ADU height limit. Existing law states that ADUs are subject to a height limit of 16 feet. A 16-foot height limit does not allow for an ADU to be two full stories without some creative workarounds and increased costs, such as going below grade and having a flat roof. To encourage the production of more ADUs and eliminate barriers to development, this bill increases the height limitation for ADUs under certain circumstances. 3) Challenges in Implementing ADU Law. It has been about five and a half years since the state made ADUs and JADUs permitted by right. In that time, a substantial amount of knowledge and expertise has been developed by invested parties, such as ADU developers, financiers, and regulators such as local planning and permitting staff, special districts, utilities, and HCD. Not surprisingly, these parties have been able to identify areas of the law that are impeding the development of ADUs and JADUs, or where ad ditional clarity could facilitate more timely permitting of ADUs and JADUs. This bill makes multiple changes to ADU and JADU law intended to address identified issues and facilitate the development of more ADUs. These include expanding the space available to build ADUs and JADUs and/or reducing their cost. Proposed changes also include efforts to make it easier to permit unpermitted ADUs that were built before January 1, 2018. FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes According to the Assembly Appropriations Committee:  HCD estimates minor and absorbable costs.  Costs to local agencies of an unknown amount to update ADU and JADU ordinances to conform to the bill's statutory changes. These costs are not reimbursable by the state because affected local agencies have the authority to charge various permit, planning, and developer fees to offset any increased costs associated with the provisions of this bill. SB 897 Page 6 SUPPORT: (Verified 8/29/22) Bay Area Council (source) AARP Abundant Housing LA All Home Apartment Association of Greater Los Angeles California Apartment Association California Building Industry Association California YIMBY CalRHA CivicWell Fremont for Everyone Housing Action Coalition Meta MidPen Housing Corporation San Francisco Bay Area Planning and Research Association Silicon Valley @ Home South Pasadena Residents for Responsible Growth Southern California Rental Housing Association Terner Center for Housing Innovation At the University of California, Berkeley The Two Hundred YimbyLA OPPOSITION: (Verified 8/29/22) California Association of Code Enforcement Officers California Association of Realtors California Building Officials Catalysts for Local Control City of Bakersfield City of Chino Hills City of Corona City of Lake Forest City of Los Altos City of Paramount City of Rancho Palos Verdes City of San Marcos City of Thousand Oaks City of Torrance Community Associations Institute - California Legislative Action Committee SB 897 Page 7 County of Del Norte Hills2000 - Friends of the Hills Livable California Marin County Council of Mayors and Council Members Mission Street Neighbors Town of Danville One individual ARGUMENTS IN SUPPORT: 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 significan t 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 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.” ARGUMENTS IN OPPOSITION: The California Building Officials have expressed concerns with the safety implications of prohibiting an occupancy change for an ADU conversion and the ability of their members to enforce the safety standards established in the California Building Code. Other written opposition received came from local organizations and community associations concerned about local control and opposing the increased height limit for ADUs. According to the League of California Cities, "we must be careful not to change the look and feel of an existing community which already maintains specific height and design limitations." Prepared by: Mehgie Tabar / HOUSING / (916) 651-4124 8/31/22 13:55:31 **** END **** AB 988 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 988 (Bauer-Kahan, et al.) As Amended August 18, 2022 2/3 vote. Urgency SUMMARY Requires the California Health and Human Services Agency (CHHSA) to appoint and convene a state 988 policy advisory group (AG) to advise CHHSA on the implementation and administration of the five-year implementation plan for the 988 Suicide Prevention System. Requires the Office of Emergency Services (OES) to appoint a 988 system director and convene an advisory board (Board) to guide how 988 is implemented and made interoperable with 911, including the creation of a new surcharge for 988 to fund the crisis services. Requires health plan and insurer coverage of 988 center services when medically necessary and without prior authorization. Establishes a 988 surcharge for the 2023 and 2024 calendar years at $0.08 per access line per month, and for years beginning January 1, 2025 at an amount based on a specified formula, but not greater than $0.30 per access line per month. Appropriates $300,000 from the General Fund to the 988 State Suicide and Behavioral Health Crisis Services Fund ((fund) previously the State Mental Health and Crisis Services Special Fund) to the Department of Tax and Fee Administration (DTFA) for purposes of implementing this bill. States it is the intent of the Legislature that the go live date for the federally established 988 Suicide and Crisis Lifeline using the three-digit telephone number 988 will be established by July 16, 2022; and, the 988 number receives and responds to the anticipated call volume in the first year of operation for 988 in order to provide crisis intervention services and crisis care coordination to individuals accessing 988. Senate Amendments: 1) Name this bill the Miles Hall Lifeline and Suicide Prevention Act (Act). 2) Require, by July 16, 2022, the OES to ensure that designated 988 centers utilize technology that allow for transfers between 988 centers and 911 public safety answering points (PSAP). 3) Require OES, no later than 90 days after the passage of the Act, to: a) Appoint a 988 system director to implement and oversee the policy and regulatory framework for the technology infrastructure coordination and transfer of calls between 988, 911, and behavioral health crisis centers; b) Establish and convene a State 988 Technical Advisory Board (Board) to advise OES on: i) Recommendations on the feasibility and plan for sustainable interoperability between 988, 911, and behavioral health crisis services, including the identification of any legal or regulatory barriers to the transfer of 911 calls; ii) The development of technical and operational standards for the 988 system that allow for coordination with California’s 911 system; and, iii) The creation of standards and protocols for when 988 centers transfer 988 calls into the “911” PSAPs, and vice versa. AB 988 Page 2 4) Require the Board to meet at least quarterly until December 31, 2028, and authorize the Board to be disbanded after that time at the discretion of OES. 5) Require the Board to consist of a representative from CHHSA and expert representatives, including, but not limited to those from 988 centers, 911, and behavioral health crisis service providers. 6) Requires OES, by July 1, 2024, to verify interoperability between 988 and 911. Require OES to consult with the National Suicide Prevention Lifeline (NSPL) and the Federal Substance Abuse and Mental Health Services Administration (SAMHSA) on any technology requirements for 988 centers. 7) Require CHHSA, by December 31, 2023, to create a set of recommendations to support a five-year implementation plan for a comprehensive 988 system. 8) Require CHHSA to convene a state 988 AG to advise CHHSA on the set of recommendations to support the five-year implementation plan. 9) Require the AG to include but not be limited to, the Department of Health Care Services (DHCS), OES, and the Department of Public Health, representatives of counties, representatives of employees working for county behavioral health agencies and agencies who subcontract with county behavioral health agencies who provide these services, health plans, emergency medical services, law enforcement, consumers, families, peers, and other local and statewide public agencies. 10) Require the AG to meet at least quarterly until December 31, 2023 and allow the AG to be disbanded at the discretion of CHHSA, but not prior to January 1, 2024. 11) Require CHHSA and the AG to make recommendations on all of the following: a) Federal SAMHSA requirements and national best practices guidelines for operational and clinical standards, as specified; b) Maintenance of an active agreement with the administrator of the NSPL for participation within the network; c) Compliance with state technology requirements for the operation of 988; d) A state governance structure to support the implementation and administration of behavioral health crisis services accessed through 988 e) 988 infrastructure, staffing, and training standards that will support statewide access to crisis counselors through telephone call, text, and chat 24 hours per day, seven days per week; f) Access to crisis receiving and stabilization services and triage and response to warm handoffs from 911 and 988 call centers; g) Resources and policy changes to address statewide and regional needs in order to meet population needs for behavioral health crisis services; AB 988 Page 3 h) Statewide and regional public communications strategies informed by the NSPL and the SAMHSA to support public awareness and consistent messaging regarding 988 and behavioral health crisis services; i) Recommendations to achieve statewide provision of mobile crisis team services that meet specified criteria; j) Quantifiable goals for the provision of statewide and regional behavioral health crisis services, which consider factors such as reported rates of suicide attempts and deaths; k) A process for establishing outcome measures, benchmarks, and improvement targets for 988 centers and the behavioral health crisis services system; l) Findings from a comprehensive assessment of the behavioral health crisis services system that takes into account infrastructure projects that are planned and funded. Requires findings to include an inventory of the infrastructure, capacity and needs as specified; m) Procedures for determining the annual operating budget for the purposes of establishing the rate of the 988 surcharge and how revenue will be dispersed to fund the 988 system consistent with federal law; and, n) Strategies to support the behavioral health crisis service system to ensure it is adequately funded, including mechanisms for reimbursement of behavioral health crisis responses as specified. 12) Require that commencing December 31, 2024, and until December 31, 2029, the CHHSA to report annually on or before December 31 each year, on the status of 988 implementation including any actions take in that calendar year, planned actions for the futu re calendar year, barriers to implementation, need for additional funding, and any legislative action required to support implementation. 13) Establish the fund, consisting of the revenue generated by the 988 surcharge assessed on users, to be used solely for the operations of the 988 center and mobile crisis teams, as defined. Provides that the fund may also consist of any other appropriations made to it by the Legislature. 14) Require the revenue generated by the 988 surcharge to be prioritized to fund the following: a) First, the 988 centers, including the efficient and effective routing of telephone calls, personnel, and the provision of acute mental health services through telephone call, text, and chat to the 988 number; and, b) Second, the operation of mobile crisis teams accessed via telephone calls, texts, or chats made to or routed through 988 as specified. 15) Prohibit money in the fund being subject to transfer to any other fund or to transfer, assignments, or reassignment for any other use or purpose outside of those specified in this bill. 16) Provide that 988 surcharge revenue in the fund be available, upon appropriation by the Legislature, for the purposes specified in this bill. AB 988 Page 4 17) Require the revenue generated by the 988 surcharge to be used to supplement and not supplant federal, state, and local funding for 988 centers and mobile crisis services. 18) Specify that the revenue generated by the 988 surcharge can only be used to fund service and operation expenses that are not reimbursable through Medicaid, federal financial participation, Medicare, health care service plans, or disability insurers. 19) Authorize the OES, in consultation with DHCS, to adopt regulations regarding how funds received are to be disseminated to support the operations of the 988 system and related behavioral health crisis services. Require the OES to require entities seeking funds to file annually an expenditure and outcomes report as specified on a form and manner as determined by OES and DHCS. 20) Authorize OES and DHCS to implement, interpret, or make specific this bill, in whole or in part, by means of all-county letters, plan letters, provider bulletins, information notices, regulations, or other similar instructions. 21) Specify that coverage of mental health (MH) and substance use disorder (SUD) treatment pursuant to existing law includes medically necessary treatment of a MH or SUD, including, but not limited to, behavioral health crisis services, provided to an enrollee by a 988 center or mobile crisis team regardless of whether the service is provided by an in-network or out-of- network provider. 22) Prohibit a health plan or insurer from requiring prior authorization for medically necessary treatment of a MH or SUD provided by a 988 center, mobile crisis team, or other provider of behavioral health crisis services to an enrollee or insured. 23) Require a health plan or insurer to reimburse a 988 center, mobile crisis team, or other provider of behavioral health crisis services for medically necessary treatment of a MH or SUD consistent with the requirements of existing law with respect to the authorization of emergency services. 24) Prohibit the enrollee or insured from paying more than the same cost sharing that the enrollee or insured would pay for the same covered services received from an in-network provider if an enrollee or insured receives medically necessary treatment for a MH or SUD from a 988 center, mobile crisis team, or other provider of behavioral health crisis services outside the plan network. Require this amount to be referred to as the “in-network cost-sharing amount.” Prohibit an out-of-network 988 center, mobile crisis team, or other provider of behavioral health crisis services from billing or collecting an amount from the enrollee or insured for services except for the in-network cost-sharing amount. 25) Define “behavioral health crisis services” to mean the continuum of services to address crisis intervention, crisis stabilization, and crisis residential treatment needs of those with a MH or SUD crisis that are wellness, resiliency, and recovery oriented. Include, but are not limited to, crisis intervention, including counseling provided by 988 centers, mobile crisis teams, and crisis receiving and stabilization services. 26) Clarify that 21) to 24) above do not excuse a health plan or insurer from complying with existing law. AB 988 Page 5 27) Exempt Medi-Cal managed care contracts between the DHCS and a health care service plan for enrolled Medi-Cal beneficiaries from provisions of this bill related to coverage. 28) Exempt accident-only, specified disease, hospital indemnity, Medicare supplement, dental- only, or vision-only insurance policies from this bill. 29) Allow the California Department of Insurance to promulgate regulations subject to the Administrative Procedure Act, as specified. 30) Create, beginning January 1, 2023, a 988 surcharge on each telephone access line for each month or part thereof for which a service user subscribes with a service supplier. Set the 988 surcharge for the 2023 and 2024 calendar year at $0.08 per access line per month and, for years beginning January 1, 2025, at an amount based on a specific formula, but no greater than $0.30 per access line per month. 31) Make various conforming changes throughout the Emergency Telephone Users Surcharge Act to provide authority for OES to implement the surcharge for 988 in addition to 911. 32) Require all amounts of the 988 surcharge collected to be spent for specified purposed. Before funds are dispersed, require the funds to be used to pay authorized refunds and the DTFA’s and OES’s administrative costs. 33) Appropriate $300,000 from the General Fund to the 988 State Suicide and Behavioral Health Services Fund for the expenditure of DTFA in the 2022-23 fiscal year for purposes of implementing the bill to cover the state’s first year of administrative costs and to fund the designated 988 centers to support the first year of their implementation of the 988 system. 34) Include an urgency clause to ensure that the provisions of this bill go into immediate effect upon enactment. 35) Include legislative findings that to enable public agencies to implement the 988 hotline required by the provisions of the Act, it is necessary that a surcharge be imposed upon access lines purchased by every person in the state for access to the 988 crisis hotline. 36) Declare uncodified Legislative intent as follows: a) To implement the National Suicide Hotline Designation Act of 2020 (NSHD), in compliance with the Federal Communication Commission’s rules designating “988” as a three-digit number for the National Suicide Prevention Hotline now known as the 988 Suicide and Crisis Lifeline, to assure all persons residing in and visiting the State of California have access to the “988” suicide prevention and behavioral health crisis hotline and care 24 hours per day, seven days per week; b) The 988 system in California operate as an emergency suicidal, mental health, and substance use disorder crisis system that provides compassionate, appropriate, and easily accessible care to save lives and reduce law enforcement engagement, arrests, hospitalizations, and deaths; and, AB 988 Page 6 c) By July 16, 2022, the federally established go-live date for the 988 number will be prepared to receive and respond to the anticipated call volume in the first year of operation of 988. 37) Require by June 30, 2024, the CHHSA and the OES to develop a plan for the statewide coordination of 988, 911, and behavioral health crisis services. Specify the plan will be based on a five-year implementation plan that includes a landscape analysis of existing services and describes how to expand, improve, and link services with the goal of fully implementing the 988 system by January 1, 2030. COMMENTS 1) NSHD. NSHD was authored by Republican Senator Cory Gardner and passed unanimously through both chambers of Congress. It designated 988 as the new three-digit number for the national suicide prevention and mental health crisis hotline. The NSHD provides for the following: a) Phone Number and Services: Specifically, NSHD requires the Federal Communications Commission (FCC) to designate 988 as the universal telephone number for a national suicide prevention and mental health crisis hotline, which operates through the NSPL. The NSHD legislation declares that "to prevent future suicides, it is critical to transition the cumbersome, existing 10-digit National Suicide Designation Hotline to a universal, easy-to-remember, three-digit phone number and connect people in crisis with lifesaving resources." b) Funding: To adequately and sustainably fund the 988 system, NSHD authorized states to impose a fee on access lines for providing 988 related services. In the California Emergency Telephone User Surcharge Act, an access line is defined as a wireline communications service (landline), a wireless communication service line (cell phones), and Voice Over Internet Protocol. Revenue from the fee must be held in a designated account to be spent only in support of 988 services, and the FCC must submit an annual report on state administration of these fees. The fees may only be spent on: i) Ensuring the efficient and effective routing of calls made to the 988 national suicide prevention and mental health crisis hotline to an appropriate crisis center; personnel; and, ii) The provision of acute mental health crisis outreach and stabilization by directly responding to the 988 national suicide prevention and mental health crisis hotline. c) Health Equity: The United States Department of Health and Human Services (DHHS) and the Department of Veterans Affairs must, within 180 days of the enactment of the NSHD jointly report on how to make the use of 988 operational and effective across the country, and DHHS must develop a strategy to provide access to competent, specialized services for high-risk populations such as lesbian, gay, bisexual, and queer youth, minorities, and rural individuals. 2) NSPL. The NSPL is a national network of approximately 180 local crisis centers that provide free and confidential support 24/7/365 for people in suicidal crisis or emotional distress. There are 13 NSPL affiliated centers currently operating in California. Lifeline call centers in AB 988 Page 7 California set the hours and coverage areas for when they will take lifeline calls. They do this based on funding and staffing levels. When an individual calls the national number, (800)- 273-TALK, they are routed to the local crisis center that is closest to them. If a crisis center is unable to respond to all callers at any time, calls are diverted to backup centers. When calls are re-routed to centers out-of-state, California callers in crisis often wait two to three times longer, receive fewer linkages to effective local care, and are more likely to abandon their calls. In 2019, the NSPL received nearly 2.3 million crisis calls from across the United States and 290,619 of those calls were from California. Of those calls, 199,192 were connected to crisis centers in the state. Since 2016, California Lifeline call volume has increased 60% and this is expected to rise even higher given the ongoing COVID-19 pandemic and the resultant increase in mental health and substance use disorder crisis needs. 3) 911. The Warren 911 Act authorizes cities and counties to form contracts regulating the implementation of a 911 system. The basic structure of the 911 system is designed to ensure that when a person dials 911, a law enforcement agency serving as a primary PSAP receives 911 requests from the area where the person is calling. If a 911-caller requests emergency medical assistance, the primary PSAP may retain the caller if it directly provides emergency medical services (EMS) dispatch, or may transfer the caller to a secondary PSAP for emergency medical response. The medical secondary PSAP can be a public agency, public/private partnership, or private EMS provider designated or recognized by the local EMS agency as serving the entire EMS area or portion of the EMS area. 4) MH AND SUD COVERAGE LAWS. a) Federal Mental Health Parity Act (MHPA). In 1996, the U.S. Congress passed the MHPA, which prohibits large group health plans from imposing higher annual or lifetime dollar limits on MH benefits. However, the MHPA did not mandate coverage for MH services and only applied to group health plans that offered MH benefits. The MHPA also did not apply to SUDs, services limits, limitations on the types of facilities covered, or differences in cost sharing, and plans could have stricter prior authorization requirements for MH services than for other medical services. It should be noted that these restrictions were lifted in the federal Act discussed below. b) State Mental Health Parity. In 1999, California passed AB 88 (Thompson), Chapter 534, Statutes of 1999, which requires a health plan contract or disability insurance policy to provide coverage for the diagnosis and medically necessary services of serious mental illness of a person of any age and of serious emotion distress of a child. Benefits must be applied under the same terms and conditions as applied to other medical conditions. AB 88 also requires copayments, deductibles, and maximum lifetime benefits to be applied equally to all benefits under the plan. c) Federal Act. In 2008, Congress passed the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008 (federal Act) to cover some of the gaps in the MHPA. Similar to the MHPA, the federal Act only applies to large-group health plans. However, the federal Act also included Medicare Advantage plans offered through group health plans, state and local government plans, Medicaid managed care plans, and state Children’s Health Insurance Program plans. Unlike the MHPA, the federal Act prohibited differences in services limits, cost-sharing, in-and-out-of-network coverage, and applied to services for SUDs. AB 988 Page 8 The federal Act requires, if health plans include services for MH/SUDs as part of their benefits, to provide those services under the same terms and conditions as other medical services. The federal Act eliminated all differences between MH/SUDs and other medical services as they related to: services and visit limits; deductibles; copayments; coinsurance; and, the use of out-of-network providers when a health plan gave this option. Further, federal regulations in 2010 and then the final rule in 2013, prohibited health plans from imposing a financial requirement or services limit restriction that is more restrictive than what are offered for medical and surgical benefits in the same classification. Both the Department of Managed Health Care (DMHC) and the California Department of Insurance (CDI) provide regulatory oversight of federal and California parity laws and are monitoring filings for compliance with these laws. d) The federal Patient Protection and Affordable Care Act (ACA) and essential health benefits (EHBs) and recent state law. The ACA applied the federal Act to issuers in the individual market and qualified health plans offered through a health benefit exchange, including small group products. The ACA also specified coverage of the 10 EHBs, including MH/SUD treatment services. California’s EHB statute also specifically states that the federal Act applies to health plans that must comply with EHBs, including products offered off the exchange. The ACA states that coverage of MH/SUD services along with any scope and duration limits imposed on the benefits be in compliance with the federal Act and all rules, regulations, and guidance issued pursuant to the federal Act. According to a 2015 Health Affairs Health Policy Brief, the ACA went beyond the federal Act by mandating coverage instead of requiring parity only if coverage is provided. SB 855 (Wiener), Chapter 151, Statutes of 2020, requires commercial health plans and insurers to provide full coverage for the treatment of all MH conditions and SUDs. SB 855 also establishes specific standards for what constitutes medically necessary treatment and criteria for the use of clinical guidelines. SB 855 applies to all state-regulated health care service plans and insurers that provide hospital, medical, or surgical coverage, and to any entity acting on the plan or insurer's behalf. A health plan cannot limit benefits or coverage for MH or SUD treatments or services when medically necessary. According to the sponsors of this bill, under current law, California plans are already required to cover all medically necessary treatment of MH and SUDs. The sponsors state that further, emergency transport is an EHB and thus included in the benchmark plan under the ACA and the federal Act also prohibits medical necessity reviews under that emergency classification. Plans have to provide equal coverage within that classification of care. Given this standard on the physical health side, the regulators could reasonably prohibit plans from requiring medical necessity reviews for emergency services but they need regulating authority to do so. Regarding in and out of network provisions of this bill, state and federal balance billing protections would apply, according to the sponsors. This language allows both CDI and DMHC to write regulations to ensure this parity between physical and MH and ensure these services are covered pursuant to state and federal parity laws. Without this language, the sponsors understand that the regulators do not feel they have the authority to issue guidance on this bill. This has come up numerous times as the sponsors have gone through the regulations process on SB 855. In short, plans should already be providing medically necessary care and for emergency services and they should be doing so at in network rates. The author and sponsor believe that this bill does not change that but does make it clarify services provided under this bill AB 988 Page 9 are not left out of existing law and gives the departments authority to regulate. Additionally, the Committee reached out to the DMHC with questions regarding the technical assistance provided in this bill and have not received a response. The Governor’s Office, however, responded to the author that the language currently in this bill is intended to clarify how reimbursement for services already covered would operate. The language regarding “medical necessity” keeps the coverage requirement for 988 services consistent with the coverage requirements for other services, including MH and SUD services provided pursuant to Health and Safety Code (HSC) Section 1374.12. However, if the 988 service provided falls into the existing definitions of “emergency services and care” (HSC Section 1371.4 (a)), then HSC Section 1371.4 (c) prohibits the health plan from denying payment for services rendered regardless of medical necessity (unless it is determined that emergency services and care were not performed). According to the Governor’s Office, the language added to this bill does not supplant HSC Section 1371.4 when that section is applicable, it instead elaborates on how the MH and SUD coverage mandate in HSC Section 1374.72 would apply to 988 services. It should be noted that due to the timing of these amendments, the Committee was not accorded the opportunity to further research these issues, nor confer with Legislative Counsel on interpretations of existing law and the amendments to this bill. According to the Author A previous version of this bill created a new three-digit phone line, 988, for suicide prevention and immediate, localized emergency response by trained mental health professionals for individuals in mental health crisis. The author opines that the current system relies on law enforcement and confinement and puts people suffering from mental illness through an expensive and traumatizing revolving door as they shuttle between jails, emergency rooms, and the street. The author concludes by stating that a comprehensive crisis response system can help prevent avoidable tragedies, save money, and increase access to the right kind of care. The author states, we must make significant changes in how we respond to those suffering from a mental health crisis. Arguments in Support The Steinberg Institute and The Kennedy Forum, cosponsors of this bill, state in support of a previous version of the bill, that California is facing a mental health crisis. One in six Californians now live with a mental illness and suicides have been steadily climbing, increasing by 35% nationally over the last two decades. This tragic trend has only been exacerbated by COVID-19. With calls to existing suicide prevention call centers skyrocketing as a result of the COVID-19 pandemic, this bill will ensure the state is prepared to answer calls of all Californians in need by providing a seamless transition from our current suicide prevention system and handling the expected increase in volume demand of calls to suicide prevention lines. The cosponsors conclude, this bill takes a monumental step forward in addressing these systemic inequities in our mental health system by creating a crisis response system that provides support to help individuals and communities thrive. Arguments in Opposition The California Association of Health Plans (CAHP) in an oppose position states that this bill as amended on August 18, 2022, creates an overly broad and substantive new mandate on health plans and insurers despite the fact that the language has not been analyzed by any policy committee or reviewed by the California Health Benefits Review Program. CAHP concludes that AB 988 Page 10 this exceptionally flawed process does not provide stakeholders with any opportunity to provide feedback or discuss the merits of this new mandate despite the significant operational and cost impacts this bill will have. Arguments in Oppose Unless Amended The County Behavioral Health Directors Association (CBHDA), in oppose unless amended, states that this bill makes clear that private plans are only required to reimburse for “medically necessary” mobile crisis services. The addition of “medically necessary” as a qualifier does not apply to EMS services, and therefore would establish a new high-bar standard for field-based mobile crisis teams addressing emergency behavioral health crisis needs. CBHDA is concerned that applying the medical necessity standard is unfair and it would have such detrimental consequences that it would impact the viability of efforts to stand up statewide 24/7 mobile crisis services under Medi-Cal and 988 (e.g. it gives the perception of help but would set a bad precedent for requiring private insurance reimbursement for mobile crisis services generally – not just within 988; increase documentation burden for providers; require a level of clinician participation in mobile crisis that is untenable in the current workforce crisis environment; and, limit the use of paraprofessionals). According to CBHDA, this language creates such an uneven playing field for field-based crisis response across behavioral health and medical services. Also in an oppose unless amended position, the Service Employees International Union – California (SEIU) states that this bill threatens the jobs of county behavioral health workers and jeopardizes the health of individuals in crisis by opening the door for lower quality services by providers with little or poor training. They further state the bill establishes an unfair, unsustainable system, blocking access to funding for most behavioral health services. They state the current definitions in the bill are written in a way that the majority of services delivered by county behavioral health services, emergency responders other behavioral health providers would not be able to access this funding – leaving counties responsible for payment of these services. FISCAL COMMENTS According to Senate Appropriations on an earlier version of the bill, the OES anticipates approximately $55.6 million in annual revenue from the monthly surcharge of $0.08 per access line, to be deposited into the 988 State Mental Health and Crisis Services Special Fund. Revenue from the surcharge will offset, to some extent, OES’s stand-up and administrative costs, which include one-time costs of approximately $35 million for information technology equipment and services and ongoing annual costs of approximately $31.5 million to implement and administer the program. Unknown, likely significant fiscal impact to the CHHSA to among other things, designate centers and create the 988 system implementation plan, convene the working group, and administer the program. The DTFA anticipates implementation costs of approximately $50,000 to $250,000. And beginning in fiscal year (FY) 2023-24, ongoing administrative costs of approximately $445,000. The CDI estimates costs of $377,000 in FY 2021-22, $902,000 in FY 2022-23, and $679,000 ongoing to coordinate with CHHS and the DMHC to develop a guidance and adopt regulations (Insurance Fund). CDI does not anticipate these costs to be absorbable. AB 988 Page 11 This bill appropriates $8,035,700 from the General Fund to the 988 State Suicide and Behavioral Health Services Fund to cover the state’s first year of administrative costs and to fund the designated 988 centers to support the first year of their implementation of the 988 system. VOTES: ASM HEALTH: 11-2-2 YES: Wood, Aguiar-Curry, Bonta, Burke, Carrillo, Maienschein, McCarty, Nazarian, Luz Rivas, Rodriguez, Santiago NO: Bigelow, Waldron ABS, ABST OR NV: Mayes, Flora ASM COMMUNICATIONS AND CONVEYANCE: 10-0-3 YES: Santiago, Boerner Horvath, Cervantes, Eduardo Garcia, Holden, Low, Quirk-Silva, Rodriguez, Bennett, Ting ABS, ABST OR NV: Patterson, Davies, Valladares ASM APPROPRIATIONS: 12-4-0 YES: Lorena Gonzalez, Calderon, Carrillo, Chau, Gabriel, Eduardo Garcia, Levine, Quirk, Robert Rivas, Akilah Weber, Holden, Luz Rivas NO: Bigelow, Megan Dahle, Davies, Fong ASSEMBLY FLOOR: 70-0-9 YES: Aguiar-Curry, Arambula, Bauer-Kahan, Bennett, Berman, Bloom, Boerner Horvath, Bryan, Burke, Calderon, Carrillo, Cervantes, Chau, Chiu, Cooley, Cooper, Cunningham, Daly, Davies, Frazier, Friedman, Gabriel, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Lorena Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Lackey, Lee, Levine, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, Muratsuchi, Nazarian, Nguyen, O'Donnell, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Stone, Ting, Valladares, Villapudua, Voepel, Waldron, Ward, Akilah Weber, Wicks, Wood, Rendon ABS, ABST OR NV: Bigelow, Chen, Choi, Megan Dahle, Flora, Fong, Kiley, Patterson, Seyarto SENATE FLOOR: 38-0-2 YES: Allen, Archuleta, Atkins, Bates, Becker, Borgeas, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hueso, Hurtado, Jones, Kamlager, Laird, Leyva, Limón, McGuire, Melendez, Min, Nielsen, Ochoa Bogh, Pan, Portantino, Roth, Rubio, Skinner, Stern, Umberg, Wieckowski, Wiener, Wilk ABS, ABST OR NV: Hertzberg, Newman UPDATED VERSION: August 18, 2022 CONSULTANT: Judith Babcock / HEALTH / (916) 319-2097; Kristen Mapile/HEALTH (916) 319-2097 FN: 0004254 AB 2011 Page 1 (Without Reference to File) CONCURRENCE IN SENATE AMENDMENTS AB 2011 (Wicks, et al.) As Amended August 25, 2022 Majority vote SUMMARY Enacts the "Affordable Housing and High Road Jobs Act of 2022" to create a ministerial, streamlined approval process for 100% affordable housing projects in commercial zones and for mixed-income housing projects along commercial corridors, as specified. The bill would also impose specified labor standards on those projects, including requirements that contractors pay prevailing wages, participate in apprenticeship programs, and make specified healthcare expenditures. Senate Amendments 1) Delay implementation to July 1, 2023, and sunset this bill's provisions on January 1, 2033. 2) Require HCD to conduct at least two studies of the outcomes of the bill by January 1, 2027 and January 1, 3031, respectively, that include the number of projects built, the number of units build, the jurisdictional and regional location of the housing, the relative wealth and access to resources of the communities in which they are built, the level of affordability, the effect on greenhouse gas emissions, and the creation of construction jobs that pay the prevailing wage. 3) Add an option for developers of mixed-income rental housing to provide 8% of the units for very low-income households and 5% of the units for extremely low-income households. 4) Require developers to provide relocation assistance for displaced small businesses. 5) Require a specified environmental assessment and mitigation of any hazards identified. 6) Allow local governments to exempt parcels from the bill if the local government identifies alternative sites that can be developed by right pursuant to the by criteria of this bill, such that there is no overall loss in units, no loss in affordable units, and that the new sites affirmatively further fair housing. 7) Make certain changes to conform to recent or proposed amendments to SB 35's (Umberg), Chapter 318, Statutes of 2021, ministerial process. 8) Specify that this bill cannot apply to the following: a) Sites where a neighborhood plan does not permit housing, and defines neighborhood plans to include specific plans, areas plans, precise plans, master plans, and urban village plans; b) Sites that include industrial uses or are identified in local general plans as being for industrial uses; AB 2011 Page 2 c) Vacant sites in a very high hazard severity zone; and d) Housing within 500 feet of a freeway or 3,200 feet of an oil or gas extraction facility or refinery. 9) Require, for a vacant site, that it does not contain tribal cultural resources that could be affected by the development and that were found pursuant to a consultation, and that those effects cannot be mitigated, as specified. 10) Specify that the 65 foot height limit within one-half mile of a major transit stop only applies in cities of greater than 100,000 and outside the coastal zone. 11) Enable a local government to require up to half of the ground floor of the new development be utilized as retail, and preclude development from using the density bonus process to avoid any local requirement to provide retail. 12) Allow local governments to adopt an ordinance to implement the bill, the adoption of which would not be subject to the California Environmental Quality Act (CEQA). 13) Require local agencies to report, in their Annual Progress Report to the Department of Housing and Community Development (HCD), whether projects have utilized the provisions of this bill, and other pertinent information. 14) Allow HCD to enforce the provisions of this bill, including referring violations to the Attorney General. COMMENTS California's Housing Crisis: California is in the midst of a housing crisis. Only 24% of households can afford to purchase the median priced single-family home – 50% less than the national average, and 33% less than at the start of the pandemic. 1 Over half of renters – and 80% of low-income renters – are "rent burdened," in households paying more than 30% 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 Californians rank housing affordability and homelessness as the two most important issues for the state to address. 4 A major cause of our housing crisis is the mismatch between the supply of housing and the need 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. The Statewide Housing Plan adopted by HCD earlier this year, determined that, to address this mismatch, in the next eight years, California needs approximately 2.5 million units of housing, including one million units affordable to lower income households. 5 That would require production of over 300,000 units a year. According to HCD, the state needs 180,000 units of housing built a year to keep up with demand – including 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 UC Berkeley's Institute of Governmental Studies, April 2022: https://escholarship.org/uc/item/7sn293xs 5 Data from Roadmap Home 2030, California Housing Partnership Corporation and Housing California, 2021. AB 2011 Page 3 about 80,000 units of housing affordable to lower-income households. By contrast, production in the past decade has been under 100,000 units per year – including less than 10,000 units of affordable housing. 6 This underproduction has further exacerbated our longstanding housing crisis. There are myriad reasons that supply has not kept pace with demand, including that: 1) The demand for housing in California has been strong for decades; 2) There are limited places to build; 3) Local governments have made it difficult to build housing; 4) Housing is expensive to build; and 5) There is a deficit of residential construction workers. Increasing the Affordability of Housing through the Affordable Housing and High Road Jobs Act of 2022: This bill, the Affordable Housing and High Road Jobs Act of 2022, is intended to build on and greatly accelerate the recent efforts by the state to facilitate the construction of more affordable housing. It would allow do so as follows: Approval process: This bill would require housing to be "by right" if it conforms to the provisions below regarding affordability, location, objective standards, and labor. In being by right, it would not be subject to a local government's discretionary approval process and would be exempt from the California Environmental Quality Act. Local governments would be able to apply objective standards and design review processes as long as they do not conflict with the provisions in the bill and do not preclude development of the housing. Affordability requirements: This bill would require that mixed-income rental projects make either 15% of their units affordable to lower-income households or 8% of their units affordable to very-low income households and 5% of the units affordable to extremely low-income households. This bill would require that mixed-income, for-sale projects make either 15% of their units affordable to lower-income households or 30% of their units affordable to moderate- income households. Affordable units would be subject to a recorded deed restriction for a period of 55 years for rental units and 45 years for owner-occupied units. The option for deeply targeted affordable rental units could help people who are experiencing or at risk of homelessness secure stable housing without the need for public subsidy. The option for a for-sale project to direct 30% of its units to moderate-income households could result in a substantial increase in homeownership opportunities for that demographic. Location requirements: This bill facilitates the development of two kinds of housing – 100% affordable housing, and mixed-income housing. To qualify to utilize the by right provisions of this bill, both kinds of housing projects must be located in zones where office, retail, or parking are a principally permitted use. Mixed-income housing projects would be limited to sites that abut a "commercial corridor," which is a local road with a right-of-way of 70 to 150 feet (generally, four to eight lanes). These commercial corridors are typically the location of strip 6 https://www.hcd.ca.gov/policy-research/housing-challenges.shtml AB 2011 Page 4 retail centers and parking lots. Directing new development along these existing thoroughfares can facilitate transit use and other non-vehicular modes of transportation. By allowing housing in zones where residential development may not currently be permitted, this bill expands the potential sites where housing can be developed, while directing development away from existing residential neighborhoods – in particular, existing single-family neighborhoods. This bill includes provisions that would preclude development on environmentally unsafe or sensitive area, per previously established objective standards. It would also require development to occur within infill areas, which would help reduce commutes and, commensurately, greenhouse gas emissions. To protect existing communities, projects would not be allowed to demolish existing housing. Additionally, the development could not lead to the demolition of a historic structure. Small businesses would be paid to help relocate if their lease expired after a development proposal had been placed on their property. Local governments could choose to transfer the applicability of this bill to other parcels in their jurisdiction, as long as there was no net loss of overall or affordable housing, and the new sites were not generally located in lower-income communities than the existing sites. Objective Standards: To utilize the by right provisions of this bill, housing projects would need to meet the objective standards specified in the bill. All projects would need to be multi-family projects where no more than one-third of the space can be for a non-residential use. For 100% affordable projects, the residential density would need to meet or exceed the density considered geographically appropriate for affordable housing projects in Housing Element Law. Generally, that density is 30 units per acre in urban areas, 20 units per acre in suburban areas, and 10 units per acre in rural areas. The site must otherwise meet the local government's height limits, objective zoning standards, and objective design review standards. Mixed-income housing projects would need to meet or exceed the density and height standards in the table below. These standards are distinguished by the type of community, width of the commercial corridor, and proximity to transit. The local government may allow higher densities and height limits at their discretion. Location Metropolitan Jurisdiction Non-Metropolitan Jurisdiction Minimum Project Density Minimum Project Height Minimum Project Density Minimum Project Height Commercial corridors with a width of 70' to 100' 40 units/acre 35 feet 30 units/acre 35 feet Commercial corridors with a 60 units/acre 45 feet 50 units/acre 45 feet AB 2011 Page 5 width of 100' to 150' Commercial corridors within ½ mile of a major transit stop in cities > 100K 80 units/acre 65 feet 70 units/acre 65 feet Site of less than one acre 30 units/acre As applicable per street width 20 units/acre As applicable per street width Mixed-income projects must meet specified setback standards regarding any frontages along the commercial corridor, any side street, and rear property lines. These setback standards are designed to focus the development along the commercial corridors, and away from the rear of the property. The bill does not allow a local government to require parking for mixed-income projects, except that projects must meet requirements around accessible parking for people with disabilities, electric vehicle parking spaces, and bicycle parking. Developers would be allowed to determine the amount of parking needed to meet the demands of the new residents. Overall Impact on Housing and the Environment: A recent analysis of the bill determined that it would increase the amount of potential units in the state by 10 million, and the amount of units that would be economically feasible to build under current conditions by 1.6-2.4 million.7 Compared to typical greenfield housing development, housing built along commercial corridors would use 40% less water, drive 33% fewer miles, and produce up to 45% fewer greenhouse gas (GHG) emissions. California's Construction Workforce Deficit: During California's post-World War II boom, approximately 300,000 units were built per year. 8 Between 1975 – 1990, nearly 200,000 units were built a year. 9 That number is now less than 100,000 units a year.10 As discussed above, there are numerous reasons for the sharp decline in housing production. These reasons alone could have led to a reduction in the construction workforce. But, in addition, the 2008 Great Recession, led to a steep decline in the workforce as construction ceased and workers moved to others states to find jobs. 7 https://urbanfootprint.com/ab2011-analysis/ 8 State Building and Construction Trades Council, Housing on the High Road, 2019, as summarized here: https://norcalapa.org/2019/03/taking-the-high-road-to-fix-californias-broken-housing-production-system/ 9 Ibid 10 https://www.hcd.ca.gov/apr-data-dashboard-and-downloads AB 2011 Page 6 The remaining workforce has also been deskilled, due to a sharp decline in the pay and benefits associated with homebuilding jobs. The construction workforce used to produce 1.4 units per worker per year but has been below 1.0 units per worker per year for the past 15 years. 11 Not only is the workforce smaller and less skilled than it needs to be, it is not necessarily well positioned for growth, as it is difficult to attract new workers. The work is physicall y demanding and can require odd and long hours, both at work and commuting to work. It can be economically challenging as well, as construction work is seasonal and vulnerable to economic downturns, with workers face twice the earnings volatility.12 The pay and benefits are often not attractive enough to overcome those risks, as residential construction workers earn 24% less per year than other jobs, and less than half have health insurance coverage at work.13 A significant number of workers are misclassified as independent contractors, which reduces their earnings by about a third. 14 Wage theft is an even more substantial issue, as paying workers off the books is a common practice in construction, resulting in those workers having their earnings reduced in half. 15 Finally, the traditional pathways to the construction workforce have been eroded – high schools have less vocational training courses, federal policy has restricted the influx of new immigrants, and high housing costs dissuade workers from moving to California from other states. Rebuilding the Residential Workforce through the Affordable Housing and High Road Jobs Act of 2022: This bill would make it easier to build housing, ensures that the workers who build that housing are well compensated, and provides opportunity for job training to grow the skilled construction workforce. This bill would require compensation consistent with standards in place for public works projects by requiring projects to pay prevailing wages. The prevailing wages are the most common wage found in a region for a construction craft, and are usually based on rates specified in collective bargaining agreements between employers and unions. Prevailing wages are established by the Director of the Department of Industrial Relations (DIR), according to the type of work and location of the project, and published on DIR's website. 16 The prevailing wage encompasses an hourly pay, as well as compensation for other benefits should the employer not provide them, including health care, vacation, and pension. This bill includes an enforcement component by the Labor Commissioner, an underpaid workers, or a joint labor-management cooperation committee established under federal law. These provisions would help bolster enforcement capacity of the labor standards and help ameliorate concerns about wage theft. This bill requires that all contractors on projects of 50 or more units participate in a state- approved apprenticeship program or request the dispatch of apprentices from a program. Construction trades apprenticeships result in the elevation of most participating construction 11 Ibid 12 Smart Cities Prevail, Rebuilding California: The Golden State's Housing Workforce Reckoning, 2019: https://www.smartcitiesprevail.org/wp -content/uploads/2019/01/SCP_HousingReport.0118_2.pdf 13 Ibid 14 UC Berkeley Labor Center, The Public Cost of Low-Wage Jobs in the US Construction Industry, 2022: https://laborcenter.berkeley.edu/the-public-cost-of-low-wage-jobs-in-californias-construction-industry/ 15 Ibid. 16 https://www.dir.ca.gov/public-works/prevailing-wage.html AB 2011 Page 7 workers' wages to living wage levels. As such, this provision would help ensure that these projects train the next generation of skilled craftspeople, so that over time the residential construction workforce is large enough to build the housing we need to end the housing crisis. This bill allows for a locally negotiated Collective Bargaining Agreement to supersede the labor provisions in the bill. Collective Bargaining Agreements are agreements reached between the employer and the labor union that will govern the employment for the employee-members of that labor union. According to the Author "This bill combines some of the best ideas advanced in the Legislature over the last several years for promoting affordable housing development with a requirement to create 'high road' jobs. To effectively take on our state's housing issues, I firmly believe we need to do both. This legislation gives us all the opportunity to work together toward our shared goal: Building more affordable housing for struggling Californians, while also growing the thriving, high-wage construction workforce every community needs." Arguments in Support Supporters of the bill include groups that represent construction workers, groups that support the development of affordable housing, and groups that support an overall increase in the housing supply. Groups that represent construction workers, including the Northern California Regional Conference of Carpenters, the Southwest Regional Conference of Carpenters, and affiliated groups, argue that the prevailing wage requirements and enforcement provisions in the bill would benefit workers while the housing provisions in the bill would help put those workers to work. According to the California Conference of Carpenters (a co-sponsor of the bill), the bill "will open the door to middle-class, blue-collar careers for young workers who will actually be able to live in, and eventually even own, the affordable housing they build." Groups that support the development of affordable housing, including the California Housing Consortium (a co-sponsor of the bill) argue that the bill would rapidly accelerate the production of affordable housing. They write that the bill "will expand climate-friendly infill affordable housing opportunities for struggling families, seniors, workers, and veterans – while also growing a thriving, well-paid, middle-class construction workforce." Groups that support an overall increase in the housing supply argue that the bill is necessary to help overcome the state's deficit of 2.5 million housing units. According to the California Apartment Association, "By opening new sites to housing, AB 2011 would rapidly accelerate housing production at all income levels – particularly for lower income Californians." Arguments in Opposition Opponents of this bill include groups that represent construction workers and cities. The State Building and Construction Trades Council (SBCTC) and affiliated groups, argue that the bill should require the utilization of a skilled and trained workforce, as defined in labor law, that would in effect require a certain percentage of each construction craft and trade to be unionized unless the project is subject to a Project Labor Agreement. They argue that, absent these provisions, the bill provides a path to developer profits with little protections for workers and meaningful input from community members. According to the SBCTC, "We remain AB 2011 Page 8 opposed to any effort that would create a statewide right to develop mostly market-rate and luxury housing without, at a very minimum, basic community protections, including the requirement to use a skilled and trained workforce and pay area prevailing wages." The cities in opposition to the bill argue that it would remove local control and the ability of cities to determine the adequacy of sites for housing and the ability to provide affiliated infrastructure. They also express concern over a potential reduction in tax revenue from the loss of commercial properties. FISCAL COMMENTS According to the Senate Appropriations Committee: 1) HCD estimates ongoing costs of $204,000 annually for 1.0 PY of staff to coordinate with local governments, provide guidance and technical assistance, and manage enforcement activities. HCD estimates additional costs of $102,000 in contract costs each year in 2023-24 and 2025-25 to develop and revise guidelines for developers and local jurisdictions related to the new streamlining and ministerial approval provisions. (General Fund) 2) The Department of Industrial Relations estimates costs of approximately $3.8 million in the first year and $3.6 million annually ongoing for oversight and enforcement activities related to prevailing wage and apprenticeship standards on projects constructed pursuant to the provisions of this bill. There would also be penalty revenue gains, potentially in the hundreds of thousands of dollars annually, to partially offset these costs. Actual costs and penalty revenues would depend upon the number of qualifying projects constructed under this bill and the number of complaints and referrals to the Division of Labor Standards and Enforcement that require enforcement actions, investigations, and appeals. (State Public Works Enforcement Fund) 3) Unknown local mandated costs. While the bill could impose new costs on local agencies to revise planning requirements for certain developments, and providing for streamlined and expedited review of those projects, these costs are not state-reimbursable because local agencies have general authority to charge and adjust planning and permitting fees to cover their administrative expenses associated with new planning mandates. (Local funds) VOTES: ASM HOUSING AND COMMUNITY DEVELOPMENT: 7-1-0 YES: Wicks, Carrillo, Gabriel, Kalra, Kiley, Quirk-Silva, Ward NO: Seyarto ASM APPROPRIATIONS: 11-1-4 YES: Holden, Calderon, Carrillo, Mike Fong, Gabriel, Eduardo Garcia, Levine, Quirk, Robert Rivas, Akilah Weber, Wilson NO: Bigelow ABS, ABST OR NV: Bryan, Megan Dahle, Davies, Fong ASSEMBLY FLOOR: 48-11-19 YES: Bauer-Kahan, Bennett, Bloom, Bryan, Calderon, Carrillo, Cervantes, Cooper, Cunningham, Megan Dahle, Daly, Flora, Mike Fong, Fong, Friedman, Gabriel, Cristina Garcia, AB 2011 Page 9 Eduardo Garcia, Gipson, Grayson, Haney, Holden, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Mathis, Mayes, McCarty, Medina, Mullin, Quirk, Quirk-Silva, Ramos, Reyes, Robert Rivas, Rodriguez, Salas, Santiago, Ting, Villapudua, Ward, Akilah Weber, Wicks, Wilson, Wood, Rendon NO: Aguiar-Curry, Bigelow, Choi, Cooley, Nguyen, Patterson, Seyarto, Stone, Valladares, Voepel, Waldron ABS, ABST OR NV: Arambula, Berman, Boerner Horvath, Mia Bonta, Chen, Davies, Gallagher, Gray, Irwin, Lee, Low, Maienschein, Muratsuchi, Nazarian, O'Donnell, Petrie-Norris, Luz Rivas, Blanca Rubio, Smith UPDATED VERSION: August 26, 2022 CONSULTANT: Steve Wertheim / H. & C.D. / (916) 319-2085 FN: 0004415 SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 AB 2374 THIRD READING Bill No: AB 2374 Author: Bauer-Kahan (D), et al. Amended: 4/7/22 in Assembly Vote: 21 SENATE PUBLIC SAFETY COMMITTEE: 5-0, 6/14/22 AYES: Bradford, Ochoa Bogh, Kamlager, Skinner, Wiener SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8 ASSEMBLY FLOOR: 69-0, 5/16/22 - See last page for vote SUBJECT: Crimes against public health and safety: illegal dumping SOURCE: Contra Costa County DIGEST: This bill increases the maximum fines for illegal dumping for persons employing more than 10 full-time employees, and requires any person convicted of illegal dumping to remove or pay the cost of removing the waste matter they were convicted of illegally dumping. ANALYSIS: Existing law: 1) States that it is unlawful to dump or cause to be dumped waste matter in or upon a public or private highway or road, including any portion of the right-of- way thereof, or in or upon private property into or upon which the public is admitted by easement or license, or upon private property without the consent of the owner, or in or upon a public park or other public property other than property designated or set aside for that purpose by the governing board or body having charge of that property. (Penal Code § 374.3 (a).) 2) Provides it is unlawful to place, deposit, or dump, or cause to be placed, deposited, or dumped, rocks, concrete, asphalt, or dirt in or upon a private AB 2374 Page 2 highway or road, including any portion of the right-of-way of the private highway or road, or private property, without the consent of the owner or a contractor under contract with the owner for the materials, or in or upon a public park or other public property, without the consent of the state or local agency having jurisdiction over the highway, road, or property. (Penal Code § 374.3 (b).) 3) States that a person violating dumping provisions is guilty of an infraction. Each day that waste is placed, deposited, or dumped in violation the law is a separate violation. (Penal Code § 374.3 (c).) 4) Provides that illegal dumping prohibitions do not restrict a private owner in the use of his or her own private property, unless the placing, depositing, or dumping of the waste matter on the property creates a public health and safety hazard, a public nuisance, or a fire hazard, as determined by a local health department, local fire department or district providing fire protection services, or the Department of Forestry and Fire Protection, in which case this section applies. (Penal Code § 374.3 (d).) 5) Provides a person convicted of dumping shall be punished by a mandatory fine of not less than $250 nor more than $1,000 upon a first conviction, by a mandatory fine of not less than $500 nor more than $1,500 upon a second conviction, and by a mandatory fine of not less than $750 nor more than $3,000 upon a third or subsequent conviction. If the court finds that the waste matter placed, deposited, or dumped was used tires, the fine prescribed in this subdivision shall be doubled. (Penal Code § 374.3 (e).) 6) Provides that the court may require, in addition to any fine imposed upon a conviction, that, as a condition of probation the probationer remove, or pay the cost of removing, any waste matter which the convicted person dumped or caused to be dumped upon public or private property. (Penal Code § 374.3 (f).) 7) States that except when the court requires the convicted person to remove waste matter for which he or she is responsible for dumping as a condition of probation, the court may require the probation to pick up waste matter at a time and place within the jurisdiction of the court for not less than 12 hours. (Penal Code § 374.3 (g).) 8) States that a person who illegally dumps waste matter in commercial quantities is guilty of a misdemeanor punishable by imprisonment in a county jail for not more than six months and by a fine. The fine is mandatory and shall amount to not less than $1,000 nor more than $3,000 upon a first conviction, not less than AB 2374 Page 3 $3,000 nor more than $6,000 upon a second conviction, and not less than $6,000 nor more than $10,000 upon a third or subsequent conviction. (Penal Code § 374.3 (h)(1).) 9) Defines “commercial quantities” as an amount of waste matter generated in the course of a trade, business, profession, or occupation, or an amount equal to or in excess of one cubic yard. (Penal Code § 374.3 (h)(2).) This bill: 1) Increases the maximum mandatory fine for illegally placing, depositing, dumping, or causing to be placed, deposited or dumped, waste matter in commercial quantities by a person employing more than 10 full-time employees, as follows: a) From not more than $3,000 for the first offense to not more than $5,000; b) From not more than $6,000 for the second conviction to not more than $10,000; and, c) From not more than $10,000 for a third or subsequent conviction to not more than $20,000. 2) Requires the court to order person convicted of illegal dumping, as specified, to remove, or pay the cost of removing, any waste matter which the convicted person dumped or caused to be dumped on public or private property. 3) Requires the court, if that person holds a license or permit to conduct business that is substantially related to the conviction, to notify the applicable licensing or permitting entity, if any, that a licensee or permittee had been convicted of illegal dumping. 4) Requires the licensing or permitting entity to record and post the conviction on the public profile of the licensee or permittee on the entity's website. 5) Provides that any fine shall be based on the person's ability to pay including, but not limited to, consideration of the following: a) The defendant's present financial position; b) The defendant's reasonably discernible future financial position, provided that the court shall not consider a period of more than one year from the date of the hearing for purposes of determining the reasonably discernible future financial position of the defendant; AB 2374 Page 4 c) The likelihood that the defendant will be able to obtain employment within one year from the date of the hearing; and, d) Any other factor that may bear upon the defendant's financial capability to pay the fine. Comments According to the author: Illegal dumping has been a serious problem in California for many years. Illegal dumping occurs when solid wastes are discarded or caused to be dumped or placed on any property, either public or private, without proper authorization or legitimate purpose. Illegal dumping is a crime of convenience often by repeat offenders for economic gain. Materials illegally dumped range from household items such as mattresses, furniture, and large appliances to other more traditional commercial business items such as tires, hazardous waste, rock, concrete, asphalt, and dirt. Illegal dumping is an increasing problem that poses significant health, social, environmental, and economic impacts on communities. Illegal dumping contributes to a loss of community pride, discourages investment and development, decreases property values, and increases a community’s vulnerability to crime. Existing law prohibits the dumping of waste matter upon a road or highway or in other locations. A violation of this prohibition, generally, is an infraction punishable by specific fines that escalate for subsequent convictions. Under existing law, the court may, as a condition of probation, order the convicted person to remove, or pay for the removal of the waste matter. Under existing law, the dumping of commercial quantities of waste is punishable as a misdemeanor and includes escalating fines. Commercial businesses have been caught illegally dumping in an attempt to “cut corners” and maximize their total profit. Violators assume little risk in doing so because it is economically feasible, as the fines for violating illegal dumping laws are relatively minimal. Existing penalties do not serve as an adequate deterrent. Additionally, district attorneys throughout California report having difficulty in prosecuting cases. FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No AB 2374 Page 5 SUPPORT: (Verified 6/27/22) Contra Costa County (source) California District Attorneys Association California State Sheriffs' Association Contractors State License Board East Bay Municipal Utility District Los Angeles County District Attorney's Office Los Angeles County Solid Waste Management Committee/Integrated Waste Management Task Force Rural County Representatives of California OPPOSITION: (Verified 6/27/22) None received ASSEMBLY FLOOR: 69-0, 5/16/22 AYES: Aguiar-Curry, Arambula, Bauer-Kahan, Berman, Bigelow, Bloom, Boerner Horvath, Mia Bonta, Bryan, Calderon, Carrillo, Cervantes, Chen, Choi, Cooley, Cooper, Megan Dahle, Daly, Davies, Flora, Mike Fong, Fong, Friedman, Gabriel, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gray, Grayson, Haney, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Lee, Levine, Maienschein, Mathis, Mayes, McCarty, Medina, Mullin, O'Donnell, Patterson, Petrie-Norris, Quirk, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Salas, Santiago, Seyarto, Smith, Stone, Valladares, Villapudua, Voepel, Waldron, Ward, Akilah Weber, Wicks, Wilson, Wood, Rendon NO VOTE RECORDED: Bennett, Cunningham, Low, Muratsuchi, Nazarian, Nguyen, Quirk-Silva, Blanca Rubio, Ting Prepared by: Mary Kennedy / PUB. S. / 6/28/22 14:30:50 **** END **** SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 SB 6 UNFINISHED BUSINESS Bill No: SB 6 Author: Caballero (D), Eggman (D) and Rubio (D), et al. Amended: 8/25/22 Vote: 21 SENATE GOVERNANCE & FIN. COMMITTEE: 5-0, 3/11/21 AYES: McGuire, Nielsen, Durazo, Hertzberg, Wiener SENATE HOUSING COMMITTEE: 8-0, 4/29/21 AYES: Wiener, Caballero, Cortese, McGuire, Ochoa Bogh, Skinner, Umberg, Wieckowski NO VOTE RECORDED: Bates SENATE APPROPRIATIONS COMMITTEE: 6-1, 5/20/21 AYES: Portantino, Bradford, Jones, Kamlager, Laird, Wieckowski NOES: Bates SENATE FLOOR: 32-2, 5/24/21 AYES: Allen, Archuleta, Atkins, Becker, Bradford, Caballero, Cortese, Dodd, Durazo, Eggman, Gonzalez, Hertzberg, Hueso, Hurtado, Jones, Kamlager, Laird, Leyva, Limón, McGuire, Min, Newman, Ochoa Bogh, Pan, Portantino, Roth, Rubio, Skinner, Stern, Umberg, Wieckowski, Wiener NOES: Bates, Melendez NO VOTE RECORDED: Borgeas, Dahle, Glazer, Grove, Nielsen, Wilk ASSEMBLY FLOOR: Not available SUBJECT: Local planning: housing: commercial zones SOURCE: Author DIGEST: This bill enacts, until January 1, 2033, the Middle Class Housing Act of 2022, which establishes housing as an allowable use on any parcel zoned for office or retail uses. SB 6 Page 2 Assembly Amendments limit project sizes to 20 acres, delete the unspecified affordability requirement in the bill, require parcels to meet additional criteria, modify the provisions that apply to functioning retail sites, extend the sunset date to January 1, 2033, rename the bill, and make other changes. ANALYSIS: Existing law: 1) Allows, under the California Constitution, 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.” 2) Requires every county and city to adopt a general plan that sets out planned uses for all of the area covered by the plan. A general plan must include specified mandatory “elements,” including a housing element that establishes the locations and densities of housing, among other requirements. 3) Requires cities’ and counties’ major land use decisions—including zoning ordinances and other aspects of development permitting —must be consistent with their general plans. 4) Restricts a local agency’s ability to disapprove, or require density reductions in, certain types of residential projects under the Housing Accountability Act (HAA). 5) Establishes, pursuant to SB 35 (Wiener, Chapter 366, Statutes of 2017), a streamlined, ministerial process for approving housing developments that are in compliance with the applicable objective local planning standards— including the general plan, zoning ordinances, and objective design review standards—and meet certain affordability and labor requirements. This bill: 1) Enacts, until January 1, 2033, the “Middle Class Housing Act of 2022,” which establishes a housing development project as an allowable use within a zone where office, retail, or parking are a principally permitted use, so long as the parcel is not adjacent to a parcel dedicated to industrial use, as specified . 2) Requires a housing development project to comply with all of the following: a) The density for the housing development must meet or exceed the applicable density deemed appropriate to accommodate housing for lower income households under housing element law. SB 6 Page 3 b) The project must comply with all local zoning, parking, design, public notice or hearing requirements, local code requirements, ordinances, and permitting procedures that apply in a zone that allows housing at the density required by this bill. If more than one zoning designation in the city or county meets this requirement, the zoning standards that apply to the parcel are the same zoning standards that apply to the closest parcel that allows for residential use at that density. If the existing zoning on the pa rcel allows denser residential use, the existing zoning applies. c) All other local requirements for the parcel, other than those that prohibit residential use or allow residential use at a lower density than provided by this bill. d) The project site is 20 acres or less, and is located within an urban area, as specified. e) The housing development is consistent with any applicable and approved sustainable community strategy or alternative plan, as defined in existing law. f) The developer certifies that the project either is a public work or will pay prevailing wage and use a skilled and trained workforce for all levels of contractors, as defined in existing law, except as provided below: i) A contractor or subcontractor shall not be in violation of the apprenticeship graduation requirements in existing law to the extent that all of the following requirements are satisfied: (1) All contractors and subcontractors performing work on the development are subject to a project labor agreement that includes the local building and construction trades council as a party, that requires compliance with the apprenticeship graduation requirements, and that provides for enforcement of that obligation through an arbitration procedure. (2) The project labor agreement requires the contractor or subcontractor to request the dispatch of workers for the project through a hiring hall or referral procedure. (3) The contractor or subcontractor is unable to obtain sufficient workers to meet the apprenticeship graduation percentage requirement within 48 hours of its request, Saturdays, Sundays, and holidays excepted. ii) A contract or subcontract may be awarded without a requirement for the use of a skilled and trained workforce to the extent that all of the following requirements are satisfied: (1) At least seven days before issuing any invitation to prequalify or bid solicitation for the project, the developer sends a notice of the SB 6 Page 4 invitation or solicitation that describes the project to labor organizations and organizations representing contractors, as specified; (2) The developer seeks bids from prequalified bidders, as specified, containing an enforceable commitment that all contractors and subcontractors at every tier will use a skilled and trained workforce to perform work on the project that falls within an apprenticeable occupation in the building and construction trades. (3) The developer or contractor follows a specified bidding process. If the developer or contractor receives two bids from bidders committing to a skilled and trained workforce, a skilled and trained workforce must be used. (4) If the developer or contractor receives fewer than two bids, they may rebid without the skilled and trained requirement. (5) An interested party, including a labor organization that represents workers in the geographic area of the project, may bring an action for injunctive relief against a developer or prime contractor that is proceeding with a project in violation of the bidding requirements of the bill. The court in such an action may issue injunctive relief to halt work on the project and to require compliance. The prevailing plaintiff in such an action shall be entitled to recover its reasonable attorney’s fees and costs. g) The project consists of entirely residential units or a mix of retail commercial, office, or residential uses, except that the project cannot include a hotel or other transient lodging and must devote at least 50% of the square footage of the project to residential uses. h) The local agency requires that the rental of any unit is for a term longer than 30 days. 3) Requires a development proponent to provide written notice of a pending application to each commercial tenant on the parcel when an application is submitted, and to provide relocation assistance to small businesses, as defined, that have existing leases, based on the tenancy of the business at the site. 4) Allows local agency to exempt a lot from the bill if the local agency finds either of the following based on substantial evidence: a) The lost residential density from each exempted parcel can be accommodated on a site or sites allowing residential densities at or above the densities in the bill and in excess of the acreage required to accommodate the local agency’s share of housing for lower income households; or SB 6 Page 5 b) The local agency concurrently reallocated the lost residential density to other lots so that there is no net loss in residential density, but only if the lots are: i) Suitable for residential development, using an existing definition in housing element law; and ii) Subject to an ordinance that allows for development by right. 5) Provides that its provisions do not alter or lessen the applicability of any housing, environmental, or labor law applicable to a housing development authorized by the bill, including, but not limited to: the California Coastal Act of 1976, the California Environmental Quality Act (CEQA), the HAA, density bonus law, obligations to affirmatively further fair housing, and state or local housing and tenant protection laws. 6) Allows a project to apply for density bonus. 7) Provides that for the purposes of the HAA, a project is deemed consistent, compliant, and in conformity with local standards if it meets all of the conditions in this bill. 8) Allows a local agency to adopt an ordinance to implement the provisions of the bill, and provides that such an ordinance shall not be considered a project under the California Environmental Quality Act. 9) Allows parcels subject to the bill to be eligible for SB 35’s streamlined ministerial approval process if it meets all of the following requirements: a) The proposed project meets the other requirements in SB 6 for a development on the parcel; b) The site has not been previously developed under SB 35 with a project of 10 units or fewer; c) Neither the developer of the project or any person acting in concert with th e developer has previously proposed a project under SB 35 of 10 units or fewer on the same site or an adjacent site; d) The proposed project meets all of SB 35’s other requirements; and e) The site is zoned for office or retail commercial use. 10) Requires each local agency to include specified data on projects developed under the bill in their annual progress report; 11) Requires the Department of Housing and Community development to undertake two studies of the outcomes of the bill, as specified; SB 6 Page 6 12) Becomes operative on July 1, 2023, and sunsets its provisions on January 1, 2033; and 13) Includes chaptering amendments with AB 2668 (Grayson) and findings and declarations to support its purposes. Background California’s housing challenges. California faces a severe housing shortage. In its most recent statewide housing assessment, The Department of Housing and Community Development (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. Prior to the onset of COVID -19, California was building approximately 100,000 to 115,000 units a year in recent years, but many analysts expect homebuilding activity to drop. COVID-19 effect on housing. The COVID-19 pandemic has only exacerbated California’s housing challenges. According to the California Association of Realtors’ January 2021 home sales and price report, the median home price in California jumped by almost 22 percent from January 2020 to January 2021, in part due to reluctance of sellers to list homes during the pandemic. At the same time, as many Californians became unemployed due to the pandemic, more individuals at risk of homelessness have fallen into homelessne ss. The Legislative Analyst’s Office notes in a January 2021 post, “Even before the pandemic, the high cost of housing in California placed renter households in a precarious position, particularly the 1.5 million low-income households who pay at least half of their income in rent. A pandemic-induced job loss adds further financial stress to these households. Due to the composition of the industries and occupations most affected by public health restrictions and declining economic activity, renter households have faced higher rates of job loss during the pandemic because job losses have been concentrated among lower-wage workers who are much more likely to rent than higher-wage workers.” Retail shift. According to an April 24, 2020, brief published by McKinsey and Company, the onset of COVID-19 has aggravated the existing challenges that the retail sector faces, including:  A shift to online purchasing over brick-and-mortar sales;  Customers seeking safe and healthy purchasing options;  Increased emphasis on value for money when purchasing goods;  Movement towards more flexible and versatile labor; and SB 6 Page 7  Reduced consumer loyalty in favor of less expensive brands. The investment firm UBS estimates that over the next five years, 40,000 to 50,000 stores in the United States will close as online sales grow from 18 percent to 25 percent of total retail sales. The author wants to make it easier to develop housing on sites currently zoned for office and retail use. Comments 1) Author’s statement. According to the author, “This bill will allow cities to approve, through an expedited process, the reuse of infill property zoned for retail and office space for residential construction. This adaptive reuse of shopping malls or strip malls will reduce greenhouse gas emissions and urban sprawl. Shopping malls, strip malls, and ‘big box’ retail stores face a new reality: consumers’ needs are being met online. Many shopping centers struggle to remain viable as large anchor stores like Sears, K-Mart, and Toys R Us close their doors or go out of business leaving vacant, often-times run-down, commercial centers. While commercial vacancies are growing, California’s housing crisis continues to worsen. According to the California Budget and Policy Center, over 50% of renters and nearly 40% of homeowners pay more than 30% of their income in rent. In addition, the Public Policy Institute of California recently reported that California’s housing shortage continues to grow as the number of residential building permits issued for 2018 and 2 019 were far below the recommended annual average of new homes needed. This bill allows for the transformation of underperforming commercial sites into mixed-use use centers with residential units, with some affordability restrictions, often in locations that are well connected to major transportation routes.” 2) Gotta keep ‘em separated. A fundamental principle of zoning since the United States Supreme Court upheld an early zoning ordinance in 1926 (Village of Euclid v. Ambler Realty Co., 272 U.S. 365 (1926)) has been that allowing some uses in one area but prohibiting others can be integral to protecting the public welfare. Local governments have historically separated uses to avoid siting incompatible activities, such as agriculture and residential activity, near one another. It also mitigates potential public health issues, such as air pollution impacts from heavy industrial uses on nearby residents. SB 6 allows residential use on properties that are zoned instead for office and retail uses, and thereby contravenes this principle. It also undermines the planning decisions made by local officials, who established which uses are allowed and at what intensity. In SB 6 Page 8 addition, SB 6 allows relatively intense residential uses—up to 30 units an acre in some jurisdictions—on parcels that may have been set aside for lower intensity retail activities that don’t bring many customers to an area. This may pose a particular challenge for jurisdictions without the necessary infrastructure and services to meet the demands of new residents, which could particularly impact rural jurisdictions. Should the state allow this type of residential use in places where local governments have decided it isn’t appropriate? FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes According to the Assembly Appropriations Committee:  HCD estimates ongoing General Fund (GF) costs of $204,000 annually, for one staff position to provide ongoing technical assistance to local jurisdictions for rezoning required by the bill, and to undertake necessary enforcement activities.  HCD estimates $102,000 (GF), in contract costs for each of fiscal years 2023- 24 and 2024-25, to develop and revise guidelines for developers and local jurisdictions. HCD indicates the guidelines will need to be revised in the second year of implementation.  Estimated costs of an unknown amount, likely ranging from the low-hundreds of thousands of dollars to the low millions of dollars ongoing, to the Department of Industrial Relations (DIR) for increased oversight of new public works activities, for which prevailing wage must be paid to workers (Labor Enforcement and Compliance Fund). The Division of Labor Standards Enforcement investigates complaints and imposes penalties, while DIR’s Office of the Director’s Legal Unit hears appeals. Actual costs will depend on the number of qualifying projects under this bill and the corresponding increase in the number of workers paid prevailing wage. Although the number of qualifying projects under this bill is unknown, it is reasonable to anticipate additional complaints and resulting enforcement activities.  One-time and ongoing costs to local governments of an unknown amount, but potentially significant in the short term, to meet the new requirements in the bill. These costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates. SUPPORT: (Verified 8/29/22) A Better Way Forward to House California AARP SB 6 Page 9 Abundant Housing LA Alameda County Democratic Party American Planning Association, California Chapter Bay Area Council Build Affordable Faster California California Apartment Association California Association of Realtors California Builders Alliance California Forward Action Fund California Hispanic Chambers of Commerce California State Association of Electrical Workers California State Pipe Trades Council California YIMBY CivicWell (formerly the Local Government Commission) County of Monterey East Bay for Everyone Facebook, Inc. Generation Housing Housing Action Coalition Los Angeles Business Council Los Angeles County Business Federation Sacramento Regional Builders Exchange San Francisco Bay Area Planning and Urban Research Association (SPUR) Schneider Electric State Building & Construction Trades Council of California Techequity Collaborative Terner Center for Housing Innovation at the University of California, Berkeley Valley Industry and Commerce Association Western States Council Sheet Metal, Air, Rail and Transportation Westfield YIMBY Action Zillow Group OPPOSITION: (Verified 8/29/22) Acce Action California Cities for Local Control California Coalition for Rural Housing California Contract Cities Association California Council for Affordable Housing California Housing Consortium SB 6 Page 10 California Housing Partnership California Rural Legal Assistance Foundation, Inc. California State Association of Counties Catalysts City of Agoura Hills City of Beverly Hills City of Camarillo City of Chino Hills City of Corona City of Cupertino City of Dublin City of Huntington Beach City of La Canada Flintridge City of Lafayette City of Livermore City of Milpitas City of Pleasanton City of Rancho Santa Margarita City of San Clemente City of San Jose City of San Ramon City of Santa Clarita City of Saratoga City of Thousand Oaks City of Torrance City of Tustin City of Visalia Council of Community Housing Organizations Emf Safety Network Faith in The Valley Housing California Latino Alliance for Community Engagement Leadership Counsel for Justice & Accountability Livable California Mission Economic Development Agency Non Profit Housing Association of Northern California Orange County Council of Governments Planning and Conservation League Public Advocates INC. Public Interest Law Project SB 6 Page 11 Riviera Homeowners Association Rural County Representatives of California Southern California Association of Nonprofit Housing Sustainable Tamalmonte Town of Danville United to Save the Mission Urban Counties of California Western Center on Law & Poverty, Inc. Prepared by: Jonathan Peterson / GOV. & F. / (916) 651-4119 8/29/22 17:01:35 **** END **** Senate Bill No. 45 CHAPTER 445 An act to add Section 42655 to the Public Resources Code, relating to solid waste. [Approved by Governor September 19, 2022. Filed with Secretary of State September 19, 2022.] legislative counsel’s digest SB 45, Portantino. Short-lived climate pollutants: organic waste reduction goals: local jurisdiction assistance. Existing law requires the State Air Resources Board, no later than January 1, 2018, to approve and begin implementing a short-lived climate pollutant strategy to achieve a reduction in the statewide emissions of methane by 40%, hydrofluorocarbon gases by 40%, and anthropogenic black carbon by 50% below 2013 levels by 2030. Existing law requires that the methane emissions reduction goals include a 50% reduction in the level of statewide disposal of organic waste from the 2014 level by 2020 and a 75% reduction in the level of statewide disposal of organic waste from the 2014 level by 2025. Existing law requires the Department of Resources Recycling and Recovery, in consultation with the state board, to adopt regulations to achieve the organic waste reduction goals established by the state board for 2020 and 2025, as provided. Existing law requires the department, no later than July 1, 2020, and in consultation with the state board, to analyze the progress that the waste sector, state government, and local governments have made in achieving these organic waste reduction goals. Existing law authorizes the department, if it determines that significant progress has not been made toward achieving the organic waste reduction goals established by the state board, to include incentives or additional requirements in its regulations to facilitate progress towards achieving the goals. This bill would require the department, in consultation with the state board, to assist local jurisdictions in complying with these provisions, including any regulations adopted by the department. The people of the State of California do enact as follows: SECTION 1. Section 42655 is added to the Public Resources Code, immediately following Section 42654, to read: 42655. (a)  The department, in consultation with the State Air Resources Board, shall assist local jurisdictions in complying with the requirements 94 of this chapter, including any regulations adopted by the department pursuant to Section 42652.5. (b)  This section does not limit a local government’s obligation to comply with the requirements of this chapter, including any regulations adopted by the department pursuant to Section 42652.5. O 94 — 2 — Ch. 445 Senate Bill No. 852 CHAPTER 266 An act to add Division 6 (commencing with Section 62300) to Title 6 of the Government Code, relating to climate resilience districts. [Approved by Governor September 9, 2022. Filed with Secretary of State September 9, 2022.] legislative counsel’s digest SB 852, Dodd. Climate resilience districts: formation: funding mechanisms. Existing law authorizes certain local agencies to form a community revitalization authority (authority) within a community revitalization and investment area, as defined, to carry out provisions of the Community Redevelopment Law in that area for purposes related to, among other things, infrastructure, affordable housing, and economic revitalization. Existing law provides for the financing of these activities by, among other things, the issuance of bonds serviced by property tax increment revenues, and requires the authority to adopt a community revitalization and investment plan for the community revitalization and investment area that includes elements describing and governing revitalization activities. Existing law authorizes the legislative body of a city or a county to establish an enhanced infrastructure financing district to finance public capital facilities or other specified projects of communitywide significance, including projects that enable communities to adapt to the impacts of climate change. Existing law also requires the legislative body to establish a public financing authority, defined as the governing board of the enhanced infrastructure financing district, prior to the adoption of a resolution to form an enhanced infrastructure district and adopt an infrastructure financing plan. This bill would authorize a city, county, city and county, special district, or a combination of any of those entities to form a climate resilience district, as defined, for the purposes of raising and allocating funding for eligible projects and the operating expenses of eligible projects. The bill would deem each district to be an enhanced infrastructure financing district and would require each district to comply with existing law concerning enhanced infrastructure financing districts, except as specified. The bill would require a district to finance only specified projects that meet the definition of an eligible project. The bill would define “eligible project” to mean projects that address sea level rise, extreme heat, extreme cold, the risk of wildfire, drought, and the risk of flooding, as specified. The bill would establish project priorities and would authorize districts to establish additional priorities. 91 This bill would impose certain requirements on a project undertaken or financed by a district. In this regard, the bill would require a district to obtain an enforceable commitment from the developer that contractors and subcontractors performing the work use a skilled and trained workforce, in accordance with specified provisions. These certifications would expand the crime of perjury, thereby imposing a state-mandated local program. This bill would authorize specified local entities to adopt a resolution allocating tax revenues to the district, subject to certain requirements. The bill would provide for the financing of the activities of the district by, among other things, levying a benefit assessment, special tax, property-related fee, or other service charge or fee consistent with the requirements of the California Constitution. The bill would require each district to prepare an annual expenditure plan, an operating budget, and capital improvement budget, and would require this material to be adopted by the governing body of the district and subject to review and revision at least annually. By imposing duties on counties in the administration of tax revenues and elections of a climate resilience district, the bill would impose a state-mandated local program. Existing law creates the Sonoma County Regional Climate Protection Authority, requires the authority to be governed by the same board as that governing the Sonoma County Transportation Authority, and imposes certain duties on the authority. Existing law authorizes the authority to apply for and to receive grants of funds to carry out its functions. This bill would deem the Sonoma County Regional Climate Protection Authority a climate resilience district and grant the authority all of the powers available to such a district, except that the authority may not use any tax increment revenue unless it complies with the requirements for receiving and using tax increment revenue applicable to a new climate resilience district. 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. The people of the State of California do enact as follows: SECTION 1. Division 6 (commencing with Section 62300) is added to Title 6 of the Government Code, to read: 91 — 2 — Ch. 266 DIVISION 6. CLIMATE RESILIENCE DISTRICTS 62300. This division shall be known, and may be cited, as the Climate Resilience Districts Act. 62301. It is the intent of the Legislature in enacting this division to provide the ability for local governments to create districts for the purpose of addressing climate change effects and impacts through activities and actions that include mitigation and adaptation, as necessary and appropriate, to achieve all of the following: (a)  Providing a sustained and certain level and source of funding at the local level. (b)  Allowing activities and actions on an appropriate geographic basis. (c)  Facilitating the receipt and use of federal, state, local, and private funds. 62302. For purposes of this division: (a)  “District” means a climate resilience district formed pursuant to this division. (b)  (1)  “Eligible project” means a project, including a capital project, that is designed and implemented to address climate change mitigation, adaptation, or resilience, including, but not limited to, all of the following: (A)  A project that addresses river, bay, or sea level rise, or rising groundwater, including wetlands or marsh restoration, vegetated dunes, living shorelines, erosion control, or levees. (B)  A project that addresses extreme heat or the urban heat island effect, including increasing shade, deploying cool building and surface materials, using cool pavements; constructing, improving, or modifying new or existing facilities; or increasing access to cooling opportunities. (C)  A project that addresses extreme cold, rain, or snow, including constructing, improving, or modifying new or existing facilities. (D)  A project that addresses the risk of wildfire, including establishing fire breaks, prescribed burning, structure hardening, or vegetation control. (E)  A project that addresses drought, including multiuse land repurposing, groundwater replenishment, groundwater storage, or conjunctive use. (F)  A project that addresses the risk of flooding, including structure elevation or relocation, wetlands restoration, flood easements or bypasses, or levees. (2)  At a minimum, a district shall give priority to a project that does any of the following: (A)  Utilizes natural infrastructure, as defined in paragraph (3) of subdivision (c) of Section 71154 of the Public Resources Code, to address climate change adaptation or resilience based upon the best available science. (B)  Addresses the needs of under-resourced communities, as defined in subdivision (g) of Section 71130 of the Public Resources Code, or vulnerable communities, as defined in subdivision (d) of Section 71340 of the Public Resources Code. (3)  A district may adopt additional priorities for projects. 91 Ch. 266 — 3 — (4)  A district shall seek the input of the communities specified in subparagraph (B) of paragraph (2) in the planning, development, and implementation of projects. (c)  “Participating entity” means a city, county, or special district that meets both of the following: (1)  The city, county, or special district is an affected taxing entity within the climate resilience district. (2)  The city, county, or special district adopts a resolution pursuant to subdivision (b) of Section 62304 that is applicable to its territory located within the climate resilience district. (d)  “Participating member city or county” means a city or county that does not adopt a resolution to be a participating entity, as described in subdivision (c), and alternatively adopts a resolution at a noticed public hearing stating that it agrees to participate in, and have its territory subject to, the jurisdiction, powers, and authority of the district conditioned upon the city or county also being represented on the governing body of the district pursuant to Section 62305. (e)  (1)  “Property tax increment” means that portion of the ad valorem taxes, as defined under subdivision (a) of Section 1 of Article XIII A of the California Constitution, excluding any ad valorem taxes or assessments levied pursuant to subdivision (b) of Section 1 of Article XIII A of the California Constitution, divided pursuant to Section 53398.75. (2)  Except as otherwise specified in this division, a district formed pursuant to this division is hereby deemed to also be an enhanced infrastructure financing district pursuant to Chapter 2.99 (commencing with Section 53398.50) of Part 1 of Division 2 of Title 5 and shall be subject to statutory provisions for enhanced infrastructure financing districts. 62303. (a)  (1)  A city, county, city and county, or a combination of any of those entities may form a climate resilience district pursuant to this division. (2)  The boundaries of the district shall be one of the following: (A)  Coterminous with the city, county, or city and county forming the district. (B)  Within a city, county, or city and county forming the district. (C)  Across two or more cities, counties, or cities and counties that are forming the district. (D)  A special district may join a district initiated by a city, county, city and county, or a combination of cities and counties. (b)  (1)  A district shall be formed for the purpose of raising and allocating funding for eligible projects and the operating expenses of eligible projects. (2)  Operating expenses may include any of the following: (A)  The expenses of operating the district. (B)  The planning of eligible projects. (C)  The operational expenses of any eligible project. (3)  A district shall finance only projects described in subdivision (b) of Section 53398.52 if the project meets the definition of an eligible project. 91 — 4 — Ch. 266 (4)  A district shall use the proceeds of bonds issued by a district to finance only eligible projects that meet the requirements of subdivision (a) of Section 53398.52. (c)  A district shall be deemed to be an “agency” described in subdivision (b) of Section 16 of Article XVI of the California Constitution only for purposes of receiving property tax increment revenues. 62303.5. (a)  Notwithstanding the procedures for establishing a district under this division, the authority shall be deemed a climate resilience district and is hereby granted all of the powers described in Section 62307, except as provided in subdivision (c). (b)  Notwithstanding subdivision (a) of Section 62305, the legislative body of the district formed pursuant to this section shall be the legislative body of the authority. (c)  This section shall not grant the district the power to use any tax increment revenues unless it complies with the requirements for receiving and using tax increment revenue pursuant to subdivision (b) of Section 62304. (d)  For purposes of this section, “authority” means the Sonoma County Regional Climate Protection Authority created pursuant to Division 19.1 (commencing with Section 181000) of the Public Utilities Code. 62304. (a)  Proceedings for the establishment of a district shall be instituted by the adoption of a resolution of intention to establish the proposed district and shall do all of the following: (1)  State that a district is proposed to be established pursuant to this division and describe the boundaries of the proposed district, which may be accomplished by reference to a map on file in the office of the clerk of the city or in the office of the recorder of the county, as applicable. (2)  State the type of eligible projects proposed to be financed or assisted by the district. (3)  State the need for the district and the goals the district proposes to achieve. (b)  The city, county, or city and county, shall enact a resolution providing for the division of taxes of any participating entity pursuant to the procedures for the preparation and adoption of an infrastructure financing plan described in Sections 53398.59 to 53398.74, inclusive. A district that completes these procedures shall follow the procedures for the division of taxes and issuance of tax increment bonds described in Sections 53398.75 to 53398.88, inclusive. 62305. (a)  A district shall be governed by a board that has the same membership as a public financing authority as described in Section 53398.51.1. The board shall have the same powers and requirements as a public financing authority, unless otherwise specified. (b)  The legislative body shall ensure the district board is established at the same time that it adopts a resolution of intention pursuant to Section 62304. 91 Ch. 266 — 5 — 62306. (a)  A minimum of 95 percent of the allocated tax increment revenues pursuant to subdivision (b) of Section 62304 shall be used to fund eligible projects. (b)  Not more than 5 percent of allocated revenues may be used for administration. 62307. In addition to the powers granted to an enhanced infrastructure financing district pursuant to Chapter 2.99 (commencing with Section 53398.50) of Part 1 of Division 2 of Title 5, a district has the power to do all of the following within the territorial jurisdiction of a city, county, or city and county that is a participating entity, or a participating member city or county, pursuant to this division and is represented on the governing board in accordance with Section 62305: (a)  (1)  Levy a benefit assessment, special tax levied pursuant to Article 3.5 (commencing with Section 50075) of Chapter 1 of Part 1 of Division 1 of Title 5, or property-related fee or other service charge or fee consistent with the requirements of Articles XIII A, XIII C, and XIII D of the California Constitution, including, but not limited to, a benefit assessment levied pursuant to paragraph (2). (2)  The district may levy a benefit assessment for any of the purposes authorized by this division pursuant to any of the following: (A)  The Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code). (B)  The Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code). (C)  The Municipal Improvement Act of 1913 (Division 12 (commencing with Section 10000) of the Streets and Highways Code). (D)  The Landscaping and Lighting Act of 1972 (Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code), notwithstanding Section 22501 of the Streets and Highways Code. (E)  Any other statutory authorization. (b)  Apply for and receive grants from federal and state agencies. (c)  Solicit and accept gifts, fees, grants, and allocations from public and private entities. (d)  Issue revenue bonds for any of the purposes authorized by this division pursuant to the Revenue Bond Law of 1941 (Chapter 6 (commencing with Section 54300) of Part 1 of Division 2 of Title 5), subject to any applicable constitutional requirements. (e)  Incur general obligation bonded indebtedness for the acquisition or improvement of real property or for funding or refunding of any outstanding indebtedness, subject to any applicable constitutional requirements. (f)  Receive and manage a dedicated revenue source. (g)  Deposit or invest moneys of the district in banks or financial institutions in the state in accordance with state law. (h)  Sue and be sued, except as otherwise provided by law, in all actions and proceedings, in all courts and tribunals of competent jurisdiction. (i)  Engage counsel and other professional services. (j)  Enter into and perform all necessary contracts. 91 — 6 — Ch. 266 (k)  Enter into joint powers agreements pursuant to the Joint Exercise of Powers Act (Chapter 5 (commencing with Section 6500) of Division 7 of Title 1). (l)  Hire staff, define their qualifications and duties, and provide a schedule of compensation for the performance of their duties. (m)  Use interim or temporary staff provided by local agencies that are a members of the district. A person who performs duties as interim or temporary staff shall not be considered an employee of the district. 62308. (a)  If a district proposes a measure that will generate revenues for the district that requires voter approval pursuant to the California Constitution, the board of supervisors of the county or counties in which the district has determined to place the measure on the ballot shall call a special election on the measure. The special election shall be consolidated with the next regularly scheduled statewide election and the measure shall be submitted to the voters in the appropriate counties, consistent with the requirements of Articles XIII A, XIII C, and XIII D, or Article XVI of, the California Constitution, as applicable. (b)  A district shall be deemed a district for purposes of Section 317 of the Elections Code. A measure proposed by a district that requires voter approval shall be submitted to the voters within the boundaries of the district in accordance with the provisions of the Elections Code applicable to districts, including the provisions of Chapter 4 (commencing with Section 9300) of Division 9 of the Elections Code. (c)  The district shall file with the board of supervisors of each county in which the measure shall appear on the ballot a resolution of the district requesting consolidation, and setting forth the exact form of the ballot question, in accordance with Section 10403 of the Elections Code. (d)  The legal counsel for the district shall prepare an impartial analysis of the measure. The impartial analysis prepared by the legal counsel for the district shall be subject to review and revision by the county counsel of the county that contains the largest population, as determined by the most recent federal decennial census, among those counties in which the measure will be submitted to the voters. (e)  Each county included in the measure shall use the exact ballot question, impartial analysis, and ballot language provided by the district. If two or more counties included in the measure are required to prepare a translation of ballot materials into the same language other than English, the county that contains the largest population, as determined by the most recent federal decennial census, among those counties that are required to prepare a translation of ballot materials into the same language other than English shall prepare the translation and that translation shall be used by the other county or counties, as applicable. (f)  Notwithstanding Section 13116 of the Elections Code, if a measure proposed by a district pursuant to this division is submitted to the voters of the district in two or more counties, the elections officials of those counties shall mutually agree to use the same letter designation for the measure. 91 Ch. 266 — 7 — (g)  The county clerk of each county shall report the results of the special election to the authority. If two-thirds of all voters voting on the question at the special election vote affirmatively, or a different approval threshold required by the California Constitution at the time the election is achieved, the measure shall take effect in the counties in which the measure appeared on the ballot within the timeframe specified in the measure. (h)  The county clerk of each county shall report the results of the special election to the district. 62309. (a)  Each district shall prepare an annual expenditure plan that identifies and describes the operations and eligible projects undertaken by the district. The expenditure plan shall be, after public review and hearing, adopted by the governing body of the district and subject to review and revision at least annually. (b)  Each district shall also prepare and adopt an annual operating budget and capital improvement budget. The annual operating budget and capital improvement budget shall be, after public review and hearing, adopted by the governing body of the district and subject to review and revision at least annually. 62310. (a)  A district shall provide for regular audits of its accounts and records, maintain accounting records, and report accounting transactions in accordance with generally accepted accounting principles adopted by the Governmental Accounting Standards Board of the Financial Accounting Foundation for both public reporting purposes and for reporting of activities to the Controller. (b)  A district shall provide for annual financial reports and make copies of the annual financial reports available to the public. (c)  Commencing in the calendar year in which a district has allocated a cumulative total of more than one million dollars ($1,000,000) in property tax increment revenues under this division or other revenues pursuant to subdivision (b) of Section 62253, including any proceeds of a debt issuance, and each year thereafter, the district shall contract for an independent audit conducted in accordance with generally accepted governmental auditing standards. 62311. (a)  All meetings of the district shall be subject to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5). (b)  All records prepared, owned, used, or retained by the district are public records for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1). 62312. (a)  The following requirements shall apply to a project that is undertaken or financed by a district: (1)  Construction, alteration, demolition, installation, and repair work on the project shall be deemed a public work for which prevailing wages must be paid for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code. (2)  The district shall obtain an enforceable commitment from the developer or general contractor that the developer or general contractor and 91 — 8 — Ch. 266 all its contractors and subcontractors at every tier will individually use a skilled and trained workforce, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code, to perform all work on the project that falls within an apprenticeable occupation in the building and construction trades. (3)  Paragraph (2) shall not apply if all contractors and subcontractors at every tier performing the work will be bound by a project labor agreement that requires the use of a skilled and trained workforce and provides for enforcement of that obligation through an arbitration procedure. (b)  For purposes of this section: (1)  “Project labor agreement” has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code. (2)  “Skilled and trained workforce” has the same meaning as set forth in subdivision (d) of Section 2601 of the Public Contract Code. SEC. 2. The Legislature finds and declares that the allocation of revenues derived from a sales and use tax or a transactions and use tax to a climate resilience district pursuant to Division 6 (commencing with Section 62300) of Title 6 to the Government Code, as added by this act, is not subject to Section 29 of Article XIII of the California Constitution because a district is not a city, county, or city and county within the meaning of that provision, but is rather a separate political entity as described in subdivision (c) of Section 62303 of the Government Code, as added by this act. SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution. However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. O 91 Ch. 266 — 9 — SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 SB 932 UNFINISHED BUSINESS Bill No: SB 932 Author: Portantino (D), et al. Amended: 8/25/22 Vote: 21 SENATE GOVERNANCE & FIN. COMMITTEE: 4-1, 3/17/22 AYES: Caballero, Durazo, Hertzberg, Wiener NOES: Nielsen SENATE TRANSPORTATION COMMITTEE: 10-4, 4/26/22 AYES: Gonzalez, Allen, Archuleta, Cortese, Limón, McGuire, Min, Newman, Rubio, Skinner NOES: Bates, Dahle, Melendez, Wieckowski NO VOTE RECORDED: Becker, Dodd, Wilk SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/19/22 AYES: Portantino, Bradford, Kamlager, Laird, Wieckowski NOES: Bates, Jones SENATE FLOOR: 25-10, 5/25/22 AYES: Allen, Archuleta, Atkins, Becker, Caballero, Cortese, Durazo, Eggman, Gonzalez, Hueso, Hurtado, Kamlager, Laird, Leyva, Limón, McGuire, Min, Newman, Pan, Portantino, Roth, Skinner, Stern, Umberg, Wiener NOES: Bates, Borgeas, Dahle, Dodd, Grove, Jones, Melendez, Nielsen, Ochoa Bogh, Wilk NO VOTE RECORDED: Bradford, Glazer, Hertzberg, Rubio, Wieckowski ASSEMBLY FLOOR: Not available SUBJECT: General plans: circulation element: bicycle and pedestrian plans and traffic calming plans SOURCE: Streets for All SB 932 Page 2 DIGEST: This bill requires the circulation element of a general plan to include specified contents related to bicycle plans, pedestrian plans, and traffic calming plans, and to implement those plans. Assembly Amendments delete the cause of action contained in the bill, delete the requirement that cities and counties complete implementation by a date certain, grant local governments additional flexibility, and make other changes. ANALYSIS: Existing law: 1) Requires the legislative body of a city or county to adopt a comprehensive general plan that includes various elements, including a circulation element. The circulation element must consist of the general location and extent of existing and proposed major thoroughfares, transportation routes, terminals, any military airports and ports, and other local public utilities and facilities. 2) Requires the legislative body, upon any substantive revision of the circulation element, to modify the circulation element to plan for a balanced, multimodal transportation network that meets the needs of all users of streets, roads, and highways for safe and convenient travel in a manner that is suitable to the rural, suburban, or urban context of the general plan. 3) Defines “users of streets, roads, and highways” to mean bicyclists, children, persons with disabilities, motorists, movers of commercial goods, pedestrians, users of public transportation, and seniors. 4) Provides, under the Government Claims Act, that a public entity is not liable for an injury, whether such injury arises out of an act or omission of the public entity or a public employee or any other person unless otherwise provided by statute. This bill: 1) Requires the legislative body of a city or county, upon any substantive revision of the circulation element, on or after January 1, 2025, to do both of the following: a) Incorporate in the circulation element the principles of the Federal Highway Administration’s Safe System Approach by including policies that aim to eliminate fatal and serious injuries for all road users through a holistic view of the roadway system, including provisions that account for human error, SB 932 Page 3 recognize vulnerable road users, and promote redundant and proactive safety measures. b) Develop bicycle plans, pedestrian plans, and traffic calming plans based on the policies and goals in the circulation element that shall address all of the following for any urbanized area within the scope of the general plan: i) Identify safety corridors and any land or facility that generates high concentrations of bicyclists or pedestrians. ii) Use evidence-based strategies, including strategies identified in the United States Department of Transportation’s Strategic Highway Safety Plan to develop safety measures specific to those areas that are intended to eliminate traffic fatalities, with an emphasis on fatalities of bicyclists, pedestrians, and users of any other form of micromobility device in the areas identified in i). iii) Set goals for initiation and completion of all actions identified in the plans within 25 years of the date of adoption of the modified circulation element based upon projected development activities within urbanized areas within the scope of the general plan and projected availability of revenues. 2) Requires a county or city to begin implementation of the modified circulation element above within two years of the date of adoption of the plan. 3) Requires a county or city to regularly review the progress towards and identify impediments to completing implementation of the plan. 4) Directs a county or city shall consider revising the circulation element if, following the review under 3), the county or city determines it will not reach the goals of the bicycle, pedestrian, or traffic calming plans within 25 years of the date of adoption of the modified circulation element. 5) States the intent of the Legislature that cities and counties use existing transportation funding to achieve the goals of the circulation element, as specified. 6) Defines its terms and includes findings and declarations to support its purposes. Comments 1) Purpose of the bill. According to the author, “Despite decades of rhetoric on the need for safer streets, most California streets have grown more dangerous in recent years. California follows a nationwide trend; the National Highway Traffic Safety Administration saw a nearly 20% increase in traffic fatalities in SB 932 Page 4 the first six months of 2021 compared to 2020 or 2019. Some California cities lack data on how to address the epidemic of traffic violence, particularly regarding death and serious injuries to pedestrians, cyclists, and other human- powered-transit users. In certain cities where the most dangerous streets and corridors have been identified, no plan exists to remedy these deadly situations. Even in cities that have developed plans, like Los Angeles’ Vision Zero and Mobility Plan 2035, meaningful changes that would save lives have yet to be implemented. SB 932 requires a county or city to include in its General Plan, a map of the high injury network within its boundaries and would further require a county or city to identify and prioritize safety improvements.” 2) Money trees. Local governments have many demands for their limited transportation funds. SB 932 is likely to require local governments to spend significant funds on bike, pedestrian, and traffic calming infrastructure, when they already face significant shortfalls for their existing transportation infrastructure. For example, the Stanislaus County Association of Governments adopted a “Non-Motorized Transportation Plan” in 2021 to improve non- motorized transportation in the region. That plan estimated the cost to construct all the planned infrastructure to be $234 million. Can local governments afford these costs, and are the requirements in the bill the best use of finite transportation funds? FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes Unknown with latest amendments. SUPPORT: (Verified 8/30/22) Streets for All (source) OPPOSITION: (Verified 8/30/22) None received Prepared by: Anton Favorini-Csorba / GOV. & F. / (916) 651-4119 8/30/22 18:23:16 **** END **** September 2, 2022 The Honorable Gavin Newsom Governor, State of California 1021 O Street, Suite 9000 Sacramento, CA 95814 Re: Assembly Bill 2247 (Bloom) Perfluoroalkyl and polyfluoroalkyl substances (PFAS) and PFAS products and product components: publicly accessible data collection interface ------------------------------------------------------------------------------------- Request for Signature – Cities of Pleasanton, Livermore, San Ramon, and Town of Danville Dear Governor Newsom: On behalf of the Cities of Pleasanton, Livermore, San Ramon, and the Town of Danville, we write to express our strong support for AB 2247 (Bloom) and respectfully request your signature on the bill. This measure would foster the implementation of a publicly accessible data collection interface to collect information about perfluoroalkyl and polyfluoroalkyl substances (PFAS) and products or product components containing intentionally added PFAS. PFAS contamination is a growing issue in the Tri-Valley, and poses serious health threats to our communities, whether it be found in drinking water or even common household items. According to the author – AB 2247 will help us accurately identify how much PFAS is coming into the State of California and will enable us to explore how best to mitigate its harmful impacts. Without this information, we cannot take meaningful steps toward protecting the health of Californians and our environment in the long-term. Thank you for your consideration and again, we respectfully request your Signature on AB 2247 (Bloom). ATTACHMENT B Sincerely, Cc: The Honorable Richard Bloom, California State Assembly __________________ ____________________ Town of Danville City of Livermore Mayor Newell Arnerich 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 September 2, 2022 The Honorable Gavin Newsom Governor, State of California 1021 O Street, Suite 9000 Sacramento, CA 95814 Re: AB 988 (Bauer-Kahan) Mental health: 988 Suicide and Crisis Lifeline. ------------------------------------------------------------------------------------- Request for Signature – Tri-Valley Cities of Dublin, Livermore, Pleasanton, San Ramon, and Town of Danville Dear Governor Newsom, On behalf of the Tri-Valley Cities Coalition, which is comprised of the Cities of Dublin, Livermore, Pleasanton, San Ramon, and the Town of Danville, we write to request your signature on AB 988 (Bauer-Kahan), which establishes the Miles Hall Lifeline Act (Act) to establish a 988 Crisis Hotline Center for the purpose of connecting individuals experiencing a mental health crisis with suicide prevention and mental health services, as specified. Additionally, this bill establishes a 988 surcharge for the 2023 and 2024 calendar years at $0.08 per access line per month, and for years beginning January 1, 2025, at an amount based on a specified formula, but not greater than $0.30 per access line per month. A dedicated phone line for mental health emergencies is a critical factor to being successful in treating these emergencies. Along with the services such as mobile crisis teams, access to the appropriate mental health resources during times of need is an enormous benefit to our respective local communities, the region, and the State. This bill is a tremendous step towards meeting the behavioral health needs of Californians. Thank you for your commitment on efforts to address the needs of the state’s most vulnerable residents. We are pleased to support AB 988 and respectfully request your signature on the bill. Sincerely, ATTACHMENT C Tri-Valley Cities DANVILLE • DUBLIN • LIVERMORE • PLEASANTON • SAN RAMON CC: The Honorable Rebecca Bauer-Kahan, California State Assembly __________________ ____________________ ____________________ 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 September 12, 2022 The Honorable Gavin Newsom Governor, State of California 1021 O Street, Suite 9000 Sacramento, CA 95814 Re: AB 2011 (Wicks) Affordable Housing and High Road Jobs Act of 2022 Request for Veto – Tri-Valley Cities of Dublin, Livermore, Pleasanton, San Ramon, and Town of Danville Dear Governor Newsom, On behalf of the Tri-Valley Cities Coalition, which is comprised of the Cities of Dublin, Livermore, Pleasanton, San Ramon, and the Town of Danville, we write to request your veto on AB 2011 (Wicks), which would create a ministerial, streamlined approval process for 100% affordable housing projects in commercial zones and for mixed-income housing projects along commercial corridors, as specified, without regard to local planning and standard development processes. First, we want to acknowledge and commend the Author’s efforts to ensure that there is ample affordable housing in California. We agree that more affordable housing is needed and are supportive of increased development of affordable housing in places where it is contextually appropriate in each local jurisdiction. As you know, not all cities are built the same or are planned the same, and as such, a bill like will result in development that is not necessarily appropriate for our communities. Some more specific concerns we have with the bill include: 1. Need for Retail and Commercial Zones Some of our cities have a number of locations zoned for retail use that we need to keep as such. If housing is built there, we lose the opportunity to create jobs, garner local revenue, and provide essential services and amenities to residents. Furthermore, with less opportunity for retail and commercial properties to be established, our most vulnerable populations will be forced into longer commutes to jobs. ATTACHMENT D Tri-Valley Cities DANVILLE • DUBLIN • LIVERMORE • PLEASANTON • SAN RAMON 2.Replacing Commercial Zones with Residential Housing Results in Critical Local Revenue Loss By allowing residential land uses by-right in commercial zones, AB 2011 removes the ability of a local jurisdiction to continue to carefully zone and balance revenues generated by all its land uses. It would trigger the loss of revenue-producing commercial uses with housing, with no ability of a local jurisdiction to intervene and mitigate the economic offset. Our Coalition firmly believes that increasing housing production can be done in tandem with protecting economic viability. Local rezonings are done with the engagement of residents, property owners, elected officials, and developers, who all collectively contribute to the local vision for each of our communities – visions that see beyond immediate housing needs and into the critical balancing of retail and commercial zones, which include our current and hopeful local restaurant and small business owners. Overriding planning processes to inappropriately place housing developments within commercial zones damages our prospects of connecting local businesses and their workforces with proximate housing, simply because it erases our vision for how to create vibrant, connected communities utilizing strategic mixed land use combinations. 3.Encouraging Local Governments to Defy State-Certified Housing Plans Undermines the RHNA Process AB 2011 disregards this state mandated local planning effort and forces cities to allow housing developments in many areas of a city, which undermines the rationale for the regional housing needs allocation (RHNA) process. This bill empowers developers – not democratically elected officials – to build housing in retail and commercial zones. Why, then, should cities go through the multiyear planning process to identify sites suitable for new housing units if those plans will be overwritten by developers who plan to build on sites never deemed suitable for residential use? AB 2011 sets a concerning precedent for the function and legitimacy of state-mandated housing production targets and the tools for effectively planning to develop new units. Shifting land use discretion away from local officials and public engagement will result in confusion, poorly constructed units, and likely legal challenges to existing and future housing laws. Thank you for your consideration and again, we respectfully request your veto on AB 2011. Sincerely, ATTACHMENT E Tri-Valley Cities DANVILLE • DUBLIN • LIVERMORE • PLEASANTON • SAN RAMON CC: The Honorable Buffy Wicks, California State Assembly __________________ ____________________ ____________________ 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 September 12, 2022 The Honorable Gavin Newsom Governor, State of California 1021 O Street, Suite 9000 Sacramento, CA 95814 Re: SB 6 (Caballero) Local planning: housing: commercial zones Request for Veto– Tri-Valley Cities of Dublin, Livermore, Pleasanton, San Ramon, and Town of Danville Dear Governor Newsom, On behalf of the Tri-Valley Cities (TVC) Coalition, which is comprised of the Cities of Dublin, Livermore, Pleasanton, San Ramon, and the Town of Danville, we write to request your Veto on SB 6 (Caballero), which establishes housing as an allowable use on any parcel zoned for office or retail uses. The TVC coalition is committed to ensuring that affordable housing is built in California in a way that allows local oversight. While we appreciate the desire to repurpose underutilized parcels for housing, we also have a need to preserve those very retail and commercial spaces so that residents have access to important resources. The conversion of retail and commercial space into housing ultimately results in residents needing to travel increased distances to jobs, access services and restaurants, or to go shopping, and takes away the viability of local entrepreneurship by removing viable spaces for small businesses to open. By allowing residential development in retail and commercial zones, SB 6 also removes the ability of a local jurisdiction to continue to carefully zone and balance revenues generated by its land uses. In losing retail and commercial space, cities lose the ability to draw in new business and therefore, lose out on valuable revenue sources. Preserving some sites for strictly commercial uses is important to economic development efforts and local revenue considerations. Ultimately, expedited housing development processes established by SB 35 and that are utilized by this bill have been based on consistency with locally adopted planning. SB 6 changes this approach by extending by-right authority to non- compliant projects in areas not zoned for residential use. ATTACHMENT E Tri-Valley Cities DANVILLE • DUBLIN • LIVERMORE • PLEASANTON • SAN RAMON Thank you for your consideration and again, we respectfully request your veto on SB 6. Sincerely, CC: The Honorable Anna Caballero, California State Senate __________________ ____________________ ____________________ 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 September 13, 2022 The Honorable Gavin Newsom Governor, State of California 1021 O Street, Suite 9000 Sacramento, CA 95814 Re: AB 2374 (Bauer-Kahan) Crimes against public health and safety: illegal dumping ------------------------------------------------------------------------------------- Request for Signature – Tri-Valley Cities of Dublin, Livermore, Pleasanton, San Ramon, and Town of Danville Dear Governor Newsom, On behalf of the Tri-Valley Cities Coalition, which is comprised of the Cities of Dublin, Livermore, Pleasanton, San Ramon, and the Town of Danville, we write to request your signature on AB 2374 (Bauer-Kahan), which increases the maximum fines for illegal dumping for persons employing more than 10 full-time employees, and requires any person convicted of illegal dumping to remove or pay the cost of removing the waste matter they were convicted of illegally dumping. As you know, illegal dumping is a growing issue that affects the health and safety of many California residents. Especially in light of our State’s efforts to minimize harm to the environment, there needs to be more serious enforcement and penalties against those who engage in illegal dumping – AB 2374 does just that. Thank you for your leadership and again, we respectfully request your signature on AB 2374. Sincerely, __________________ ____________________ ____________________ Town of Danville City of Dublin City of Livermore Mayor Newell Arnerich Mayor Melissa Hernandez Mayor Bob Woerner ATTACHMENT F Tri-Valley Cities DANVILLE • DUBLIN • LIVERMORE • PLEASANTON • SAN RAMON CC: The Honorable Rebecca Bauer-Kahan, California State Assembly __________________________ __________________________ City of Pleasanton City of San Ramon Mayor Karla Brown Mayor Dave Hudson Tri-Valley Cities DANVILLE • DUBLIN • LIVERMORE • PLEASANTON • SAN RAMON September 13, 2022 The Honorable Gavin Newsom Governor, State of California 1021 O Street, Suite 9000 Sacramento, CA 95814 Re: SB 45 (Portantino) Short-lived climate pollutants: organic waste reduction goals: local jurisdiction assistance ------------------------------------------------------------------------------------- Request for Signature – Tri-Valley Cities of Dublin, Livermore, Pleasanton, San Ramon, and Town of Danville Dear Governor Newsom, On behalf of the Tri-Valley Cities Coalition, which is comprised of the Cities of Dublin, Livermore, Pleasanton, San Ramon, and the Town of Danville, we write to request your signature on SB 45 (Portantino), which would assist local jurisdictions in complying with organic waste diversion programs. As you know, SB 1383 (Lara, Chapter 395, Statutes of 2016) specifies that the methane emission reduction goals include targets to reduce the landfill disposal of organic waste 50% by 2020 and 75% by 2025 from the 2014 level; and to rescue for people to eat at least 20% of currently disposed of surplus food by 2025. The implementing regulations took effect January 1, 2022, and the regulatory package is comprehensive, placing various responsibilities on local jurisdictions. All respective members of our coalition remain strongly committed to achieving these goals, though help is needed from the State. SB 45 would allow local jurisdictions such as us to receive assistance from CalRecycle, in consultation with the California Air Resources Board, to meet the stated goals of SB 1383. The bill is complementary to action taken in the 2021-2022 Budget Act which made funding available to Cal Recycle for these purposes but did not include express direction to the department to expend the funds for these express purposes. SB 45 would provide that direction. Thank you for your leadership and for the reasons stated above, we respectfully request your signature on SB 45. ATTACHMENT G Tri-Valley Cities DANVILLE • DUBLIN • LIVERMORE • PLEASANTON • SAN RAMON Sincerely, CC: The Honorable Anthony Portantino, California State Senate __________________ ____________________ ____________________ 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 H Town of Danville Legislative Framework Town Council Legislative Committee 2 February, 2021 Overview The Town of Danville is actively engaged in legislative advocacy efforts that are aimed at protecting and promoting Danville’s best interests at the local, state and federal levels. These efforts are driven by two primary considerations: 1) continuing to uphold the Town mission of delivering superior municipal services that make people’s lives better; and 2) an increasing level of state involvement and regulation in areas that have previously fallen within local control. The significant increase in bills being introduced in the State Legislature that have the potential to further impact cities’ local control has prompted the Town to continue to expand advocacy efforts through various means and channels. Key to these efforts is the development of this Legislative Framework which outlines the Town’s legislative principles, policies, goals and strategies. The Framework will be monitored and driven by a Town Council Legislative Committee. Legislative Goals • Advocate the Town’s legislative interests at the federal, state, regional, and county levels to support our Town’s vision and mission. • Serve as an active participant with other local governments, the League of California Cities, regional agencies, and local professional organizations in addressing legislative issues that are important to the town and our region. • Participate in the Tri-Valley Cities coalition to work together on legislative issues, projects and initiatives at the federal, state, regional and county levels. • Seek grant and funding assistance for Town projects, services, and programs. • Communicate to the Town’s residents those legislative and agency rule-making matters which are of potentially general interest or concern. Legislative Principles To fulfill the goals identified, the Town supports legislation and policies that favor: 1. Outstanding Quality of Life - provide opportunities to protect and enhance our residents’ quality of life through active living, a healthy lifestyle and diverse recreational services. 2. Community Safety - provide access to resources and services for residents, such as quality police, fire, emergency management, emergency medical services, services for vulnerable populations and community benefit efforts. 3. Local Control over Land Use and Preservation - ensures the Town’s continued ability and authority to exercise decisions on land use matters and reasonably regulate new development to ensure consistency with Town design standards. The orderly growth and development of the Town together with the preservation of open space is a high priority for the Danville community. 3 February, 2021 4. Foster Economic Vitality and Growth - provide funding for initiatives that promote: economic health and resilience, business development, workforce development, and small business entrepreneurship training and assistance. 5. Public Infrastructure - enable continued improvement and maintenance of the Town’s public infrastructure. 6. Transportation - provide funding for planning and implementation of regional transportation projects. 7. Housing - seek balanced solutions which consider housing, jobs, and transportation together; does not take a one size fits all approach; provides funding and resources for infrastructure and allows the Town to exercise local control in developing locally appropriate plans that meet State objectives in a manner that is compatible with existing community character. 8. Support Residents Growth and Enrichment - enhance and encourage recreational programming, exercise, use of parks and services, community engagement, social and recreational experiences; and performing and visual arts. 9. Sustainability - enable sustainable development, conserve natural resources, provide resources to enable environmental awareness and health in our community and source vendors that comply with California environmental requirements that protect public health and air quality. 10. Fiscal Sustainability - protect existing federal, state, and local funding sources that provide revenues to the Town of Danville. Oppose Unfunded Mandates and legislation that seeks to impose any requirement upon the Town that is not fully funded; aid recovery of Town costs stemming from State and/or Federal mandates. Town Council Legislative Committee • The Legislative Committee shall consist of two members of the Town Council to be appointed annually by the Mayor, supported by appropriate Town staff. • The committee shall meet as frequently as monthly to review and discuss the Town’s legislative platform and pending/possible legislation. • The committee shall develop positions on pending or possible legislation and make recommendations for consideration by the Town Council. Recommendations will be based upon a determination of potential legislative impacts upon the Town and its residents. Potential positions to be considered include: o Support: Legislation that the Town should support as drafted o Support if Amended: that the Town should support if the author accepts amendments proposed or supported by the Town o Oppose: Legislation that the Town should oppose as drafted o Oppose unless amended: Legislation the Town should oppose unless amended o Watch: Town will take no formal position but will watch the Legislation and consider taking a position as the legislative process progresses 4 February, 2021 • Once a determination has been made that a legislative proposal may impact the Town by the Legislative Committee, a letter outlining the Town’s position will be drafted for the Mayor’s or Town Manager’s signature. • Legislative Proposals may sometimes advance or change rapidly. Should the need to respond to such a proposal arise prior to an opportunity for either the Legislative Committee or Town Council to meet to consider the matter, then the Town Manager is authorized to act expeditiously to respond via letter, in a manner that is consistent with the goals and principles contained in the Framework. All such letters shall be transmitted to the Town Council, and posted on the Legislative page of the Town website. • The Committee shall make regular reports to the Town Council at duly noticed public meetings. • The Committee shall work collaboratively with Tri-Valley Cities of Dublin, Livermore, Pleasanton and San Ramon to further the Tri-Valley Legislative Framework. Strategic Documents The following documents are available on the Town’s website at www.danville.ca.gov • Town Vision and Mission Statements • Town of Danville General Plan 2030 • Town of Danville Adopted Budget and Capital Improvement Program • Town of Danville Recreation, Arts & Community Services Master Plan • Town of Danville Climate Action Plan The Legislative Framework will be reviewed annually by the Town Council. Day to day oversight of legislative matters is the responsibility of the Town Manager’s Office, consistent with this Legislative Framework and policy set by the Town Council.