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HomeMy WebLinkAbout11 LEGISLATIVE REPORTAGENDA REPORT vs �� MEETING DATE: TO: FROM: SUBJECT: JUNE 4, 2013 Agenda Item 11 Reviewed: City Manager Finance DirectorN/A HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL JEFFREY C. PARKER, CITY MANAGER LEGISLATIVE REPORT At this time, the City Council may take the opportunity to discuss current legislation of interest. Proposed Legislation for 2013-2014 Updated June 4, 2013 HOMELESSNESS Bill # Primary Description of Bill Status Major Issues/ Opportunities Author AB Ammiano • Enacts the Homeless Person's Bill of Rights and Fairness Act, which would provide that no 5/24/2013 The ACC -OC is opposed to AB -5. person's rights, privileges, or access to public services may be denied or abridged because he or LAST ACTION: Held under she is homeless, has a low income, or suffers from a mental illness or physical disability. Precludes submission any type of enforcement on the City's part regarding the homeless population in Tustin, other than the typical criminal violations. GOVERNOR BROWN'S PROPOSED FY 2013-2014 BUDGET Bill # Primary Budget Priorities Status Major Issues/ Opportunities Author a A A&��J L dLdd N/A — Governor • More funding and local control for schools. Proposes to eliminate categorical school funding in favor of 1/10/13 — Introduced by the • In the May Revise, the Governor Brown using a Local Control Funding Formula. Included in the Governor's proposal is transitioning Adult Education Governor proposes to take $75 million from from School Districts to Community Colleges. 5/14/13 — May Revise Enterprise Zones (LAMBRAs), • Health Care Reform Implementation. The Federal Affordable Care Act will require mandatory expansion effectively eliminating them. The and the State budget outlines two alternatives: a state -based approach and county -based approach. These elimination of Enterprise Zones and options are intended to start a conversation about how to move health care reform forward. LAMBRAs would remove the • Enterprise Zones. Reforms the Enterprise Zone program through regulatory changes. Limits incentives available for future retrovouchering by requiring all voucher applications to be made within one year of the date of hire. businesses locating within Tustin Streamlines the vouchering process for hiring veterans and recipients of public assistance. Legacy. • Transportation. 13% of the annual state transportation revenues are dedicated to offsetting debt service • Tustin Legacy LAM BRA recently costs from almost $30 million of general obligation bonds for transportation purposes. The budget uses issued 50 Hiring Tax Credit $67 million of miscellaneous state highway account revenues to partially offset transportation bond debt Vouchers, representing a potential services costs. As a result, local transportation funding is not anticipated to be affected. savings to the employer in • Infrastructure. The Governor intends to release a five-year infrastructure plan later this year, outlining the employee costs of approximately infrastructure priorities for the next five years. Indications are that the plan will rely less on future voter- $1.6 million over a five-year period. authorized general obligation bonds than the state have over the past decade. In reviewing the Governor's • Infrastructure demands and budget, the Legislative Analyst's Office indicates that if the state elects to maintain its current policies transportation debt services costs relating to infrastructure, meeting these infrastructure demands likely would require the Legislature to could affect local funding in the shift a larger share of the state's budget to infrastructure. future. • Local Government Mandates. The Governor proposes to continue 2012-13 mandate suspensions, as well as suspend nine more. The focus is on reducing state requirements and maximizing local flexibility. • Assembly and Senate State Budgets. SB 65 (Leno) and AB 73 (Blumenfield) introduced the Governor's proposed State FY 2013-2014 Budget to the Senate and Assembly. Legislation that passed house of origin INFRASTRUCTURE FINANCING DISTRICTS Bill # Primary Description of Bill tus Major Issues/ Opportunities Author SB 33 Wolk • Eliminates the requirement of voter approval in regards to creating an infrastructure financing 5/16/13 Provides more flexibility in creating district, adopting the plan and issuing bonds. LAST ACTION: Assembly, referred an Infrastructure Financing District • Authorizes a newly created public financing authority, consisting of 3 members of the city council to Committee and does not preclude former and 2 members of the public, to adopt the infrastructure financing plan, subject to the approval COMMITTEE LOCATION: Local Redevelopment Project Areas from by the legislative body, and majority vote of the authority by resolution. Government HEARING DATE: 6/12/13 becoming Infrastructure Districts. • Creates a public accountability committee, as specified, to review the actions of the public 4/11/13 Passed in the Senate (24 - financing authority. 13) • Extends the expiration date of an infrastructure financing district from 30 years to 40 years. 3/6/13 AMENDED • Requires any District constructing residential units to set aside 20% of the units for affordable housing. AB 229 Perez • Maintains the 2/3 voter approval to create an infrastructure financing district and issue debt 5/23/13 Does not reduce or eliminate the • Authorizes the creation of a district for up to 40 years and the issuance of debt with a final LAST ACTION: Referred to 2/3 voter approval necessary to maturity date of up to 30 years. Committee. On 5/9/13, passed form a district and to issue debt. • Authorizes a district to finance projects in former redevelopment project areas and former the Assembly (71-3) and ordered military bases. to Senate. COMMITTEE LOCATION: Governance & Finance HEARING DATE: 6/5/13 4/8/13 AMENDED AB 243 Dickinson • Authorizes the creation of an infrastructure and revitalization financing district and the issuance 5/23/13 Provides for the formation of an of debt with 55% voter approval. LAST ACTION: Ordered to infrastructure financing district • Authorizes the creation of a district for up to 40 years and the issuance of debt with a final Committee. On 5/9/13, passed within publicly owned land on a maturity date of up to 30 years. the Assembly (44-29) and ordered former military base without voter • Authorizes a district to finance projects in former redevelopment project areas and former to Senate. COMMITTEE LOCATION: approval. military bases. Governance & Finance • Provides that the formation of the district and the issuance of bonds on land of a former military HEARING DATE: 6/12/13 base that is publicly owned is NOT subject to voter approval. AB 294 Holden • The Bill was AMENDED to create a pilot program. 5/24/13 AMENDED to create a pilot program • Local -State Joint Investment Partnership Pilot Program — establishes a pilot program whereby certain local LAST ACTION: Held under and no longer considering an government entities, upon the approval and oversight of the Infrastructure and Economic Development submission. Infrastructure Financing District. Bank, are authorized to reallocate their payments directed to the Educational Revenue Augmentation Fund COMMITTEE LOCATION: Approximately 18 cents of every City of to instead finance certain kinds of public works that further state policy, as specified. Appropriations Tustin property tax dollar could be 5/06/13 AMENDED available. INFRASTRUCTURE FINANCING DISTRICTS Bill # Primary Description of Bill Major Issues/ Opportunities Author JIM AB 662 Atkins • Deletes the prohibition on infrastructure financing districts including any portion of a 5/24/13 Allows former redevelopment redevelopment project area LAST ACTION: Re-referred to project areas to be included in an Committee infrastructure financing district. COMMITTEE LOCATION: Governance & Finance HEARING DATE: 6/5/13 4/25/13 Passed Assembly (76-0) AB 690 Campos • Provides for the creation of jobs and infrastructure financing districts without voter approval. 4/15/13 The Author's Amendments eliminate LAST ACTION: Hearing postponed voter approval requirements. SB 628 Beall • Eliminates the requirement of voter approval for the adoption of an infrastructure financing plan, 6/3/13 Eliminates voter approval the creation of an infrastructure financing district, and the issuance of bonds with respect to a LAST ACTION: Assembly, referred requirements but does require 25% transit priority project. to Committee. On 5/20/13 of tax increment revenues be • Requires a city that uses infrastructure financing district bonds to finance its transit priority Passed in the Senate (24-11). expended on affordable housing project to use at least 25% of the tax increment revenue for affordable housing. Ordered to Assembly. for extremely low, very low and • Extends the date at which the infrastructure finance district ceases to exist to 40 years from the COMMITTEE LOCATION: LocalGovernment low income households. current 30 years. 5/14/13 AMENDED ECONOMIC DEVELOPMENT Bill # Primary Description of Bill Status Major Issues/ Opportunities Author SB 1 Steinberg GENERAL PROVISIONS 5/29/13 • Includes a provision for the receipt • Establishes Sustainable Communities Investment Areas that are able to use tax increment revenue LAST ACTION: In Assembly, held of tax increment funds. o In order to receive tax increment from other taxing entities (school districts are excluded), the taxing at desk. On 5/28/13, passed the • A limited area of MCAS Tustin entity must authorize by resolution the allocation of tax increment (all or a portion). Senate (27-11) and ordered to the would be eligible, all properties no o An Area must include one of the following: Assembly. more than one-half mile from the • Transit priority project area; May include a military base reuse plan that meets of the definition of COMMITTEE LOCATION: N/A Tustin Metrolink Station and OCTA a transit priority project area; Small walkable community Bus Route 70 (Edinger Avenue • Within Areas, Sustainable Communities Investment Authority ("Authority') can be formed between 55 Freeway and • The Authority is responsible for creating Sustainable Communities Investment Plan 5/02/13 AMENDED Metrolink Station). o Adopt a jobs plan, focusing on job creation associated with new economic development • Establishes a Sustainable o Adopt a sustainable parking standards ordinance Communities Investment • Independent financial and performance audit every 5 years Authority. • No less that 20% of allocated tax increment revenues must be dedicated for affordable housing purposes. • Requires coordination and • Dep't of Industrial Relations required monitoring and enforcing compliance with prevailing wage cooperation from other taxing requirements for specified projects within a Sustainable Communities Investment Area. entities. • Former Redevelopment Agencies MUST have a Finding of Completion from the Department of Finance in • AMENDED version added provision order to establish a Sustainable Communities Investment Authority. regarding a Finding of Completion. ECONOMIC DEVELOPMENT Bill # Primary Description of Bill A& Major Issues/ Opportunities Author AB 53 Perez • Requires the Governor's Office of Business and Economic Development to lead the preparation 6/03/13 of a California Economic Development Strategic Plan, including convening a series of meetings to LAST ACTION: Referred to provide recommendations regarding an economic development strategic plan. Committee. On 5/30/13, passed • Recommends all state policies and programs conform to the adopted state economic and in the Assembly (55-21) & business development goals. ordered to Senate COMMITTEE LOCATION: Rules AMENDED: 5/24/13 AB 10 Alejo Proposes to increase minimum wage, on and after January 1, 2014 to not less than $8.25/hr, on and 6/3/13 after January 1, 2015 to not less than $8.75/hr, and on and after January 1, 2016 to not less than LAST ACTION: Passed in the $9.25/hr. Assembly (45-27), Ordered to Senate, Read & Referred to Committee COMMITTEE LOCATION: Rules ENTERPRISE ZONES/LAMBRA Bill # Primary Description of Bill T E60 Major Issues/ Opportunities Author AB 28 Perez • Authorizes the California Department of Housing and Community Development to increase the 4/30/13 processing fee charged for Hiring Tax Credit Vouchers from $15 to $20. LAST ACTION: Re-referred to Committee AB 9 Holden Originally, the Bill appeared to be a placeholder with limited language declaring the intent of the 4/23/13 Legislature to enact legislation that promotes job and business growth and encourages economic LAST ACTION: Hearing development. The Bill was AMENDED on 3/19/13 to address Hiring Tax Credits in Enterprise Zones. cancelled • Modifies the definition of a qualified employee, as specified, and requires qualified wages to exceed an average monthly wage of $2,000, as specified. AFFORDABLE HOUSING Bill # Primary Description of Bill Status Major Issues/ Opportunities Author Alm 1 4, = & SB 341 DeSaulnier ---- • Provides that funds in the Low and Moderate Income Housing Asset Fund be used in accordance 5/30/13 Expands the use of the Low and with applicable housing -related provisions of the Community Redevelopment Law. Requires LAST ACTION: Re-referred to Moderate Income Housing Asset funds be expended for the purpose of monitoring and preserving the long-term affordability of Committee Fund. the units subject to affordability restrictions or covenants, for homeless prevention and rapid COMMITTEE LOCATION: rehousing services to individuals and families who are homeless or would be homeless but for Housing & Community this assistance, and for the development of affordable housing. Development • Provides that any program income generated may be expended anywhere within the jurisdiction of the housing successor without a finding of benefit. 5/6/13 Passed Senate (34-0) • Requires the housing successor to conduct and provide to its governing body an independent 5/30/13 AMENDED financial audit of the Low and Moderate Income Housing Asset Fund. Also requires the housing successor to post specified information on its Internet Web site. SB 391 DeSaulnier • Enacts the 'California Homes and Jobs Act of 2013' 5/30/13 A new'tax'. • Imposes a fee of $75 to be paid at the time of the recording of every real estate instrument, LAST ACTION: In Assembly, Through a competitive process, a paper, or notice required or permitted by law to be recorded. Read and Held at Desk. On potential source of funds for • Revenues sent quarterly to the Department of Housing and Community Development (HCD) to 5/29/13, passed in Senate (27- affordable housing. deposit in the California Homes and Jobs Trust Fund. 12) and ordered to Assembly. • Funds may be expended for supporting affordable housing, administering housing programs, and the cost of periodic audits. COMMITTEE LOCATION: N/A • Amended to require HCD to report on efforts to promote a geographically balanced distribution of funds. • Amended to take effect immediately as an urgency statute. 5/20/13 AMENDED • Amended to require the Department of Industrial Relations to monitor and enforce prevailing wage requirements for construction contracts for certain public works projects over $1,000,000, that are funded, in whole or in part by the bill. The bill would authorize the department to charge each person or entity awarding a construction contract for the reasonable and directly related costs of the monitoring and enforcement activities. SUCCCESSOR AGENCY/OVERSIGHT BOARD Bill # Primary W Description of Bill Status Major Issues/ Opportunities Author AB 564 Mullin • Prohibits the Department of Finance from taking anyfuture action to modifythe enforceable 6/03/13 Prohibits the Department of obligations, including loan agreements between cities and former redevelopment agencies, LAST ACTION: Referred to Finance from revisiting items following the effective date of the approval of those enforceable obligations after review by the Committee. On 5/30/13, previously approved by the oversight board and the Department. passed the Assembly (77-0) Department. • Prohibits the Department of Finance from taking any future action to modify a transfer of and ordered to the Senate. property, or the liquidation of property and the use of proceeds, if the transfer, liquidation, or COMMITTEE LOCATION: Rules use of proceeds is consistent with the approved plan of the successor agency. 3/12/13 AMENDED MILITARY BASES Bill # Primary Description of Bill Status Major Issues/ Opportunities Author AB Alejo • Authorizes the formation of a community revitalization and investment area and the 5/24/13 Former military bases that are 1080 development of a community revitalization plan to carry out certain provisions of Community LAST ACTION: Referred to principally characterized by Redevelopment Law. Committee. On 5/24/13, deteriorated or inadequate • The community revitalization plan would include a provision for the receipt of tax increment passed the Assembly (54-16) infrastructure or structures are funds. and ordered to the Senate. eligible. • Must dedicate 25% of tax increment revenue for affordable housing purposes. COMMITTEE LOCATION: Rules 5/20/13 AMENDED