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HomeMy WebLinkAbout10 LEGISLATIVE UPDATEAgenda Item 10 Reviewed: AGENDA REPORT City Manager Finance Director MEETING DATE: JULY 5, 2017 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: JEFFREY C. PARKER, CITY MANAGER SUBJECT: LEGISLATIVE UPDATE SUMMARY: Staff has prepared an update of proposed key legislative items. RECOMMENDATION: At the direction of the City Council. NEW ITEMS (SINCE LAST UPDATE JUNE 6, 2017) FY 2017-18 State Budget Package and Trailer Bills Passed Major Shift in Board of Equalization Jurisdiction Approved; Several Items Pending The Legislature adopted its FY 2017-18 budget package, which largely tracked Gov. Jerry Brown's framework in his May Revise with total spending of $125.1 billion for the state's General Fund, and $9.9 billion in total reserves. By the end of FY 2017-18, the Rainy Day Reserve Fund is projected to have a balance of $8.5 billion, equivalent to 66 percent of the Constitutional target. Important issues for cities within the package include the allocation of $2.8 billion in transportation funds under the recently passed SB 1 and a recent agreement on the cannabis trailer bill, SB 94, which reconciled existing medical marijuana law with recently enacted Proposition 64, and incorporated numerous amendments requested by the League and Police Chiefs. Other major issues that have yet to come together include funding for affordable housing, proposed extensions to the state's Cap -and -Trade program, and reforms to the state's recycling programs via a "bottle bill." A seismic shift in tax administration occurred with the passage of AB 102, where disputes over politics and mismanagement at the State Board of Equalization (BOE) culminated in a proposal by the Governor, legislative leaders with the support of the State Controller and Treasurer to transfer the many tax programs Legislative Update July 5, 2017 Page 2 BOE oversees, including the collection and allocation of local sales and use taxes, to a newly created Department of Tax and Fee Administration. As the budget came together, some controversial items included the expenditure of recently passed Prop. 56 funds derived from a new $2 per pack increase in tobacco taxes. The budget agreement shifted approximately half of the funds expected to be allocated to increase reimbursement rates for doctors treating medical patients, for other health care purposes. Another provision included in SB 96 imposed more rigorous signature verification requirements and additional processes on legislative recall requirements, with the debate touching on the pending effort to recall Sen. Josh Newman (D -San Dimas). Not included in the final package was the Administration's proposal to make water conservation a way of life, which has now been shifted to a policy discussion. Several trailer bills were ineligible to be heard due to the recently enacted 72 -hour print rule and are likely to be taken up soon. One trailer bill the Legislature has yet to take action on is AB 121/SB 106, opposed by the League and the California Association for Local Economic Development (CALED) due to provisions that undermine small cities and counties access to economic development set-aside funds from' Community Development Block Grants allocated by the Department of Housing and Community Development (HCD). UPDATES OF PRIOR ITEMS (LAST UPDATE JUNE 6, 2017) AB 346 (Daly & Brough): Redevelopment: Housing Successor: Low and Moderate Income Housing Asset Fund Existing law dissolved redevelopment agencies and community development agencies as of February 1, 2012, and provides for the designation of successor agencies to wind down the affairs of the dissolved redevelopment agencies and to, among other things, make payments due for enforceable obligations and to perform duties required by any enforceable obligation. This bill would authorize a housing successor to use funds remaining in the Low and Moderate Income Housing Asset Fund for homelessness services, transitional housing, or emergency housing services, as well as for the development of affordable housing. Association of California Cities Orange County— SUPPORTS League of California Cities — SUPPORTS Location: Passed Assembly — Signed by Governor/Enrolled Legislative Update July 5, 2017 Page 3 AB 572 (Quirk -Silva): Alcoholism or drug abuse treatment facilities: Orange County Pilot Program This bill would require the Department of Health Care Services to establish a voluntary pilot program to locate a Compliance Investigator within the County of Orange to investigate complaints against licensed adult alcoholism or drug abuse recovery or treatment facilities. This would be an added resource for cities, helping them to enforce state and local regulations, and provide patients with better outcomes. This legislation was brought to ACC -OC by Orange County cities to combat the complex issues related to sober living facilities. Association of California Cities Orange County — SPONSORED Location: Passed Senate — Moving Through Assembly AB 890 (Medina): Local land use initiatives: environmental review. Would require a proponent of a proposed initiative ordinance, at the time he or she files a copy of the proposed initiative ordinance for preparation of a ballot title and summary with the appropriate elections official, to also request that an environmental review of the proposed initiative ordinance be conducted by the appropriate planning department. League of California Cities — OPPOSES Location: Passed Assembly — Moving through Senate AB 1250 (Jones -Sawyer) Counties and cities: contracts for personal services. Would prohibit any city or county from contracting out any work until the city or county can show that the work will save the entity money and will not displace workers. In addition, the measure stipulates that employee benefit costs (e.g. CalPERS, healthcare, etc.) cannot be a sole factor in justifying a contract for service. League of California Cities — SUPPORTS (Changed from OPPOSITION) Association of California Cities Orange County - OPPOSES Location: Passed Assembly — Moving through Senate AB 1323 (Weber): Sustainable Water Use and Demand Reduction: Stakeholders Working Group AB 1323 would require the Department of Water Resources to convene a stakeholder working group to develop, evaluate, and recommend proposals for establishing new water use targets for urban water suppliers. A number of bills have been introduced in the Legislature proposing the next iteration of long-term water use efficiencies beyond the existing 2020 -time frame. Inevitably, those bills represent different stakeholder perspectives, visions, and approaches to the development of California's future efficiency Legislative Update July 5, 2017 Page 4 and conservation framework. In the face of these conflicting perspectives, AB 1323 takes an important and necessary step towards creating consensus recommendations that can be advanced legislatively. Association of California Cities Orange County — SUPPORTS Location: Passed Assembly — Moving through Senate AB 1479 (Bonta) Public Records: Supervisor of Records: Fines oppose League Opposes AB 1479 (Bonta) would place substantial burdens on local agencies by adding onerous, costly and unnecessary requirements in processing California Public Records Act (CPRA) requests. AB 1479 would mandate that every local agency assign a "Supervisor of Record" to review each public records act denial prior to the final determination being issued. Association of California Cities Orange County - OPPOSES Location: Passed Assembly — Moving through Senate AB 1654 (Rubio): Water Shortage: Urban Water Management Plan This bill would create a new process of drought -response planning and reporting by local water suppliers. By requiring water suppliers to describe and analyze the reliability of their water supplies in greater detail, AB 1654 would improve overall urban water management planning. Annual reporting from every urban retail water supplier would allow the state to better identify suppliers experiencing water shortages, as well as suppliers prepared to deal with drought conditions. Association of California Cities Orange County- SUPPORTS League of California Cities — SUPPORTS Location: Passed Assembly — Moving through Senate AB 1668 (Friedman): Water Management Planning This bill creates a new drought response plan by making numerous changes to water supply planning, and drought planning to incorporate climate change, and enhance water supply analysis. Unlike the Rubio bills, being supported by ACC -OC (AB 968 and AB 1654), this bill would require three separate reporting mechanisms, which would be unnecessary and burdensome to local governments. Association of California Cities Orange County - OPPOSES Location: Passed Assembly — Moving through Senate Legislative Update July 5, 2017 Page 5 SB 2 (Atkins) Building Homes and Jobs Act SB 2 would generate hundreds of millions of dollars per year for affordable rental or ownership housing, supportive housing, emergency shelters, transitional housing and other housing needs via a $75 recordation fee on specified real estate documents. League of California Cities — SUPPORTS Location: Awaiting Third Senate Reading SB 3 (Beall) Affordable Housing Bond Act of 2018 Affordable Housing Bond Act of 2018 authorizes a $3 billion general obligation bond to fund affordable housing programs and infill infrastructure projects. League of California Cities — SUPPORTS Location: Passed Senate — Moving through Assembly SB 35 (Wiener) Planning and zoning: affordable housing: streamlined approval process. Would pre-empt local, discretionary land use authority by making approvals of multifamily developments and accessory dwelling units (ADUs) that meet inadequate criteria, "ministerial" actions. League of California Cities — OPPOSES Association of California Cities Orange County - OPPOSES Location: Passed Senate — Moving through Assembly SB 54 (De Leon): Law Enforcement: Sharing Data Existing law provides that when there is reason to believe that a person arrested for a violation of specified controlled substance provisions may not be a citizen of the United States, the arresting agency shall notify the appropriate agency of the United States having charge of deportation matters. This bill would repeal those provisions. This bill contains other related provisions and other existing laws. Association of California Cities Orange County - OPPOSES California Police Chiefs Association — OPPOSES Location: Passed Senate — Moving through Assembly SB 540 (Roth): Workforce Housing Opportunity Zone Local elected leaders are acutely aware of the severity of California's housing affordability crisis and their role in fashioning solutions. While numerous factors are contributing to the problem, there is an agreement that more needs to be done to create a path for and streamline new housing construction. Local governments do not build homes. Cities are responsible for planning and land use decisions that allow housing to be built. The League Legislative Update July 5, 2017 Page 6 of California Cities® is sponsoring Sen. Richard Roth's (D -Riverside) SB 540 to create a robust system for planning and streamlining housing approvals and construction that ensures public engagement on the upfront planning process. League of California Cities – SUPPORTS Location: Passed Senate – Moving through Assembly SB 649 (Hueso): Wireless Telecommunications Facilities The bill would establish a streamlined permitting process for small cell wireless facilities, and limit the fees that local governments may charge for placement of small cells on city or county owned infrastructure. This is concerning to cities in Orange County and throughout the State, because it severely restricts the ability for cities to make necessary discretionary decisions related to the aesthetic and safety of small cell and wireless infrastructure within their jurisdictions. League of California Cities – OPPOSES Association of California Cities Orange County - OPPOSES Location: Passed Senate – Moving through Assembly SB 711 (Hill): Local -State Sustainable Investment Incentive Program Despite all the state's focus on infill development and greenhouse gas reduction, the sobering reality is that — absent sufficient resources to address financing gaps — many desirable projects fail to pencil -out. Such missed opportunities_ will frustrate the state's efforts to achieve its greenhouse gas reduction goals. League of California Cities – SUPPORTS Location: Passed Senate – Moving through Assembly