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Home My WebLink About12 LEGISLATIVE REPORTAgenda Item 12 Reviewed AGENDA REPORT City Manager Finance Director /A I MEETING DATE: JULY 2, 2013 FROM: JEFFREY C. PARKER, CITY MANAGER SUBJECT: LEGISLATIVE REPORT At this time, the City Council may take the opportunity to discuss current legislation of interest. Proposed Legislation for 2013-2014 Updated July 2, 2013 HOMELESSNESS Bill # Primary Description of Bill Status Major Issues/ Opportunities Author AB 5 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 N/A Governor • This year's budget commits $2.6 billion to continue to pay down budgetary borrowing of prior years. • Currently assessing impacts to the Brown From its peak of $34.7 billion at the end of 2010-11, the outstanding debt is $26.9 billion at the end of 6/27/13 -Governor Brown Signs City of Tustin 2012-13; under the budget signed, that will be paid down to $4.7 billion over the next four fiscal 2013-14 Budget years. • The budget adds $2.1 billion for first-year implementation of the Local Control Funding Formula — which replaces today's overly complex, inefficient and inequitable finance system for California's K-12 schools. Districts will receive a per -pupil base grant, a supplemental grant based upon the number of students who are English learners, students from low-income families and foster youth and a concentration grant for districts with over 55 percent of this targeted population. • Building on California's early establishment of a health benefit exchange and the early coverage expansion through the "Bridge to Reform" waiver, the budget aligns with the federal Affordable Care Act (ACA) in a prudent way while maintaining a strong public safety net. The budget enacts a state - based approach to the optional expansion of care allowed under federal law. Over time, as the ACA becomes fully operative, funding previously provided to counties for indigent health will be shifted to fund human services programs. • The budget establishes the first-year investment in a multi-year stable funding plan for the University of California and the California State University systems. Each system will receive a 5 percent increase of $125.1 million — the first stage of a four-year funding schedule that will result in a 20 percent general fund increase for the systems. The systems will also receive $125 million in 2013-14 for not increasing student tuition and fees in 2012-13. The budget also provides a year -over -year increase of $228.6 million in general fund dollars and local property taxes for California Community Colleges. • The budget invests significantly in improving energy efficiency at California's K-12 schools and community colleges by directing $381 million in Proposition 39 funds to K-12 schools and $47 million for community colleges. Legislation that passed house of origin Failed Legislation for this calendar year INFRASTRUCTURE FINANCING DISTRICTS Bill # Primary Description of Bill Status Major Issues/ Opportunities Author SB 33 Wolk • Eliminates the requirement of voter approval in regards to creating an infrastructure financing 6/13/13 Provides more flexibility in creating district, adopting the plan and issuing bonds. LAST ACTION: Re-referred to an Infrastructure Financing District • Authorizes a newly created public financing authority, consisting of 3 members of the city council Appropriations Comm. and does not preclude former and 2 members of the public, to adopt the infrastructure financing plan, subject to the approval 5/16/13 Redevelopment Project Areas from by the legislative body, and majority vote of the authority by resolution. Assembly, referred to Committee becoming Infrastructure Districts. COMMITTEE LOCATION: Local • Creates a public accountability committee, as specified, to review the actions of the public Government financing authority. HEARING DATE: 6/12/13 • Extends the expiration date of an infrastructure financing district from 30 years to 40 years. 4/11/13 Passed in the Senate (24 - Requires any District constructing residential units to set aside 20% of the units for affordable 13) housing. 3/6/13 AMENDED AB 229 Perez • Maintains the 2/3 voter approval to create an infrastructure financing district and issue debt 6/25/13 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: Third reading. 2/3 voter approval necessary to maturity date of up to 30 years. 5/23/13 form a district and to issue debt. • Authorizes a district to finance projects in former redevelopment project areas and former Referred to Committee. On 5/9/13, passed the Assembly (71- military bases. 3) and ordered 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 7/1/13 Provides for the formation of an of debt with 55% voter approval. LAST ACTION: placed on second infrastructure financing district • Authorizes the creation of a district for up to 40 years and the issuance of debt with a final reading file pursuant to Senate within publicly owned land on a maturity date of up to 30 years. Rule 28.8 former military base without voter • Authorizes a district to finance projects in former redevelopment project areas and former 5/23/13 Ordered to Committee. On a approval. military bases. 5/9/13, passed the Assembly (44- • Provides that the formation of the district and the issuance of bonds on land of a former military 29) and ordered to Senate. base that is publicly owned is NOT subject to voter approval. COMMITTEE LOCATION: Governance & Finance HEARING DATE: 6/12/13 AB 294 Holden • The Bill was AMENDED to create a pilot program. 5/24/13 AMENDED to create a pilot program Major Issues/ Opportunities • Local -State Joint Investment Partnership Pilot Program — establishes a pilot program whereby certain local LAST ACTION: Held under and no longer considering an AB 662 government entities, upon the approval and oversight of the Infrastructure and Economic Development submission. Infrastructure Financing District. Allows former redevelopment Bank, are authorized to reallocate their payments directed to the Educational Revenue Augmentation Fund COMMITTEE LOCATION: Approximately 18 cents of every City of project areas to be included in an to instead finance certain kinds of public works that further state policy, as specified. Appropriations Tustin property tax dollar could be infrastructure financing district. 5/06/13 AMENDED available. INFRASTRUCTURE FINANCING DISTRICTS Bill # Primary Description of Bill Status Major Issues/ Opportunities Author AB 662 Atkins • Deletes the prohibition on infrastructure financing districts including any portion of a 6/24/13 Allows former redevelopment redevelopment project area LAST ACTION: In committee: project areas to be included in an Hearing postponed by committee. infrastructure financing district. 5/24/13 Re-referred to Committee 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, 6/26/13 Eliminates voter approval the creation of an infrastructure financing district, and the issuance of bonds with respect to a LAST ACTION: Do pass and re- requirements but does require 25% transit priority project. refer to Com. on H. & C.D. of tax increment revenues be • Requires a city that uses infrastructure financing district bonds to finance its transit priority 6/3/13 expended on affordable housing project to use at least 25% of the tax increment revenue for affordable housing. Assembly, referred to Committee. 5/20/13 passed in the Senate (24- for extremely low, very low and • Extends the date at which the infrastructure finance district ceases to exist to 40 years from the 11). Ordered to Assembly. low income households. current 30 years. COMMITTEE LOCATION: Local Government 5/14/13 AMENDED ECONOMIC DEVELOPMENT Bill # Primary Description of Bill Status Major Issues/ Opportunities Author SB 1 Steinberg GENERAL PROVISIONS 6/14/13 • Includes a provision for the receipt • Establishes Sustainable Communities Investment Areas that are able to use tax increment revenue LAST ACTION: Referred to Corns. of tax increment funds. o In order to receive tax increment from other taxing entities (school districts are excluded), the taxing on H. & C.D. and L. GOV • A limited area of MCAS Tustin entity must authorize by resolution the allocation of tax increment (all or a portion). 5/29/13 would be eligible, all properties no o An Area must include one of the following: In Assembly, held at desk. On more than one-half mile from the ECONOMIC DEVELOPMENT Bill # ■ Transit priority project area; May include a military base reuse plan that meets of the definition of 5/28/13, passed the Senate (27- Tustin Metrolink Station and OCTA Major Issues/ Opportunities a transit priority project area; Small walkable community 11) and ordered to the Assembly. Bus Route 70 (Edinger Avenue AB 53 • Within Areas, Sustainable Communities Investment Authority ("Authority") can be formed COMMITTEE LOCATION: N/A between 55 Freeway and • The Authority is responsible for creating Sustainable Communities Investment Plan of a California Economic Development Strategic Plan, including convening a series of meetings to Metrolink Station). o Adopt a jobs plan, focusing on job creation associated with new economic development provide recommendations regarding an economic development strategic plan. • Establishes a Sustainable o Adopt a sustainable parking standards ordinance 5/02/13 AMENDED Communities Investment • Independent financial and performance audit every 5 years business development goals. 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 Status Major Issues/ Opportunities Author AB 53 Perez • Requires the Governor's Office of Business and Economic Development to lead the preparation 6/25/13 of a California Economic Development Strategic Plan, including convening a series of meetings to LAST ACTION: From committee provide recommendations regarding an economic development strategic plan. chair, with author's amendments: • Recommends all state policies and programs conform to the adopted state economic and Amend, and re-refer to business development goals. committee. Read second time, amended, and re-referred to Com. on B., P. & E.D. 6/03/13 Referred to Committee. On 5/30/13, passed in the Assembly (55-21) & 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 6/27/13 after January 1, 2015 to not less than $8.75/hr, and on and after January 1, 2016 to not less than LAST ACTION: From committee: $9.25/hr. Do pass as amended and re-refer to Com. on APPR. 6/3/13 Passed in the Assembly (45-27), Ordered to Senate, Read & Referred to Committee COMMITTEE LOCATION: Rules ENTERPRISE ZONES/LAMBRA Bill # Primary Description of Bill Status Major Issues/ Opportunities Author AB 28 Perez • Authorizes the California Department of Housing and Community Development to increase the 4/30/13 Status Major Issues/ Opportunities processing fee charged for Hiring Tax Credit Vouchers from $15 to $20. LAST ACTION: Re-referred to SB 341 DeSaulnier Committee 6/26/13 AB 9 Holden Originally, the Bill appeared to be a placeholder with limited language declaring the intent of the 4/23/13 LAST ACTION: Do pass and re- Moderate Income Housing Asset Legislature to enact legislation that promotes job and business growth and encourages economic LAST ACTION: Hearing refer to Com. on APPR. Fund. development. The Bill was AMENDED on 3/19/13 to address Hiring Tax Credits in Enterprise Zones. cancelled 5/30/13 • Modifies the definition of a qualified employee, as specified, and requires qualified wages to rehousing services to individuals and families who are homeless or would be homeless but for Re-referred to Committee exceed an average monthly wage of $2,000, as specified. this assistance, and for the development of affordable housing. COMMITTEE LOCATION: AFFORDABLE HOUSING Bill # Primary Description of Bill Status Major Issues/ Opportunities Author SB 341 DeSaulnier • Provides that funds in the Low and Moderate Income Housing Asset Fund be used in accordance 6/26/13 Expands the use of the Low and with applicable housing -related provisions of the Community Redevelopment Law. Requires LAST ACTION: Do pass and re- Moderate Income Housing Asset funds be expended for the purpose of monitoring and preserving the long-term affordability of refer to Com. on APPR. Fund. the units subject to affordability restrictions or covenants, for homeless prevention and rapid 5/30/13 rehousing services to individuals and families who are homeless or would be homeless but for Re-referred to Committee this assistance, and for the development of affordable housing. COMMITTEE LOCATION: • Provides that any program income generated may be expended anywhere within the jurisdiction Housing & Community of the housing successor without a finding of benefit. Development • Requires the housing successor to conduct and provide to its governing body an independent financial audit of the Low and Moderate Income Housing Asset Fund. Also requires the housing 5/6/13 Passed Senate (34-0) successor to post specified information on its Internet Web site. 5/30/13 AMENDED SB 391 DeSaulnier • Enacts the 'California Homes and Jobs Act of 2013' 6/14/13 A new 'tax'. • Imposes a fee of $75 to be paid at the time of the recording of every real estate instrument, LAST ACTION: Referred to Through a competitive process, a paper, or notice required or permitted by law to be recorded. Corns. on H. & C.D. and L. & E. potential source of funds for • Revenues sent quarterly to the Department of Housing and Community Development (HCD) to 5/30/13 affordable housing. deposit in the California Homes and Jobs Trust Fund. In Assembly, Read and Held at • Funds may be expended for supporting affordable housing, administering housing programs, and Desk. On 5/29/13, passed in the cost of periodic audits. Senate (27-12) and ordered to • Amended to require HCD to report on efforts to promote a geographically balanced distribution Assembly. of funds. • Amended to take effect immediately os on urgency statute. COMMITTEE LOCATION: N/A • 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, SUCCCESSOR AGENCY/OVERSIGHT BOARD that are funded, in whole or in part, by the bill. The bill would authorize the department to charge 5/20/13 AMENDED Description of Bill T T Status Major Issues/ Opportunities each person or entity awarding a construction contract for the reasonable and directly related Author costs of the monitoring and enforcement activities. Mullin • Prohibits the Department of Finance from taking any future action to modify the enforceable SUCCCESSOR AGENCY/OVERSIGHT BOARD Bill # Primary Description of Bill T T Status Major Issues/ Opportunities Author AB 564 Mullin • Prohibits the Department of Finance from taking any future action to modify the enforceable 6/26/13 Prohibits the Department of obligations, including loan agreements between cities and former redevelopment agencies, LAST ACTION: Do pass and re- Finance from revisiting items following the effective date of the approval of those enforceable obligations after review by the refer to Com. on APPR. previously approved by the oversight board and the Department. 6/03/13 Department. • Prohibits the Department of Finance from taking any future action to modify a transfer of Referred to Committee. On property, or the liquidation of property and the use of proceeds, if the transfer, liquidation, or 5/30/13, passed the Assembly use of proceeds is consistent with the approved plan of the successor agency. (77-0) and ordered to the Senate. COMMITTEE LOCATION: Rules 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 6/25/13 Former military bases that are 1080 development of a community revitalization plan to carry out certain provisions of Community LAST ACTION: Read second principally characterized by Redevelopment Law. time and amended. Re- deteriorated or inadequate • The community revitalization plan would include a provision for the receipt of tax increment referred to Com. on T. & H. infrastructure or structures are funds. 5/24/13 eligible. • Must dedicate 25% of tax increment revenue for affordable housing purposes. Referred to Committee. On 5/24/13, passed the Assembly (54-16) and ordered to the Senate. COMMITTEE LOCATION: Rules 5/20/13 AMENDED