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HomeMy WebLinkAbout19 LEGISLATIVE UPDATEAgenda Item 19 Reviewed: AGENDA REPORT City Manager Finance Director N/A MEETING DATE: JULY 17, 2018 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 California legislative items for 2018. RECOMMENDATION: At the direction of the City Council. NOVEMBER 2018 BALLOT MEASURES A flurry of legislative deals were made to keep certain ballot measures from appearing on the November ballot. Additional items were also placed on the ballot by legislative action. These agreements came together just before the June 28 deadline for proponents to pull measures from the ballot. Several of these compromises directly impact cities. Legislative Deals That Removed Ballot Measures The following bills were passed by the Legislature and signed into law by Gov. Jerry Brown on Thursday, June 28. Tax Fairness, Transparency and Accountability Act of 2018, AB 1838 (Budget) The Tax Fairness, Transparency and Accountability Act, which was labeled by the League of California Cities and other opponents as "The Corporate Tax Trick," was slated to appear on the November 2018 ballot. The ballot measure would have drastically limited the ability of local agencies to fund services by requiring all local taxes to be subject to a two-thirds vote, retroactively repealing 25 measures approved in June by local voters and placing onerous conditions on the imposition of local fees. Legislative Update July 17, 2018 Page 2of13 AB 1838 contains the comprise trailer bill deal supported by major soda corporations which had spent over $7 million to qualify the ballot measure. This measure pre-empts the ability of cities and other local agencies from levying any new tax, fee or assessment on groceries and soda for 12 years. The League submitted an oppose letter on AB 1838 because of a provision that would withhold all sales taxes if a charter city, or their voters, validly exercise their existing constitutional right to address local municipal affairs, which includes the decision of whether or not to levy a soda tax. Charter city authority would be quickly eroded if other interest groups used this precedent in the effort to undermine a constitutional right. Following the Governor's signature of AB 1838, the Corporate Tax Trick was removed from the November ballot. California Consumer Privacy Act of 2018, AB 375 (Chau) The California Consumer Privacy Act of 2018 ballot measure qualified to be on the November 2018 ballot but was pulled by proponents following the passage of AB 375 (Chau). The ballot measure would have given consumers the right to control their personal information or data collected by companies using or providing internet services. Customers would have been able to stop a company's collection of their data and hold a company accountable for information that is compromised due to a data breach. AB 375 (Chau) is a narrower version of the ballot measure. Opponents to the initiative expressed their concerns over the compromise bill, but preferred it to the ballot measure. This was, in part, because AB 375 narrowed the circumstances under which consumers could sue companies. The League did not have an official position on either the trailer bill or the ballot measure. Healthy Homes and Schools Act 2018 The lead paint measure was removed from the November ballot. Last minute negotiations involving a proposed ballot measure sponsored by paint companied titled the Healthy Homes and Schools Act, addressing liability for lead paint remediation, took place on Thursday. The proponents agreed to drop the ballot measure in exchange for other bills not moving through the legislature. Legislative Update July 17, 2018 Page 3 of 13 Other Legislative Measures Placed on the Ballot The Legislature placed two other measures on the ballot that were unrelated to pending ballot measures. Proposition 2: No Place Like Home Act of 2018, AB 1827 (Budget) The original No Place Like Home program was signed into law on July 1, 2016. This program authorized the distribution $2 billion dollars among counties as deferred payment loans to finance capital costs of permanent supportive housing for persons who are eligible for services under Proposition 63 (2004) and are homeless, chronically homeless, or at risk of chronic homelessness. Although this program is currently law, it has not allocated funds due to legal challenges, thus the Legislature opted to seek ratification of this program by the voters. Under AB 1827, now Prop. 2, the voters are being asked to ratify the No Place Like Home program, which proposes to fund the construction of 10,000 housing units available for the homeless and mentally ill, as being consistent with and in furtherance of the Mental Health Services Act. The League supported the original No Place Like Home bill, supported AB 1827, and now supports Prop. 2. Proposition 7: Elimination of Daylight Savings Time AB 807 (Chu) After several prior unsuccessful attempts, Assembly Member Kansen Chu (D -San Jose), succeeded in his quest to pass AB 807 (Chu), which will give California voters the choice to ratify the repeal of daylight savings time via Prop. 7. The League does not have a position on this ballot measure. Updated Final List of Ballot Measures for the November Ballot Below is a list of all ballot measures, including the ones described above that will be on the November 2018 ballot, and a brief summary of each proposition is attached. ➢ Prop. 1, (SB 3, Beall) Veterans and Affordable Housing Bond Act of 2018 ➢ Prop. 2, No Place Like Home "Homeless Housing" Ratification ➢ Prop. 3, Water Supply and Water Quality Act of 2018 ➢ Prop. 4, Children's Hospital Bond Act of 2018 ➢ Prop. 5, People's Initiative to Protect Postposition 13 Savings ➢ Prop. 6, Repeal of Recently Enacted State Transportation Funds Legislative Update July 17, 2018 Page 4of13 ➢ Prop. 7, Elimination of Daylight Savings Time ➢ Prop. 8, Fair Pricing for Dialysis Act ➢ Prop. 9, Three States Initiative ➢ Prop. 10, Affordable Housing Act "Restoring Rent Control Option" ➢ Prop. 11, Emergency Ambulance Employee Safety and Preparedness Act ➢ Prop. 12, Prevention of Cruelty to Farm Animals Act NEW LEGISLATIVE UPDATES S. 3157 — Streamlining The Rapid Evolution And Modernization of Leading-edge Infrastructure Necessary to Enhance (STREAMLINE) Small Cell Deployment Act The STREAMLINE Act would force local governments to lease out publicly owned infrastructure, eliminate reasonable local environmental and design review, and eliminate the ability for local governments to negotiate fair leases or public benefits for the installation of "small cell" wireless equipment on taxpayer -funded property. While local governments and other stakeholders were able to defeat the wireless industry's attempt to do this in California with a veto from Governor Brown of SB 649 (Hueso) last October, the industry is now aiming for Congress. League of California Cities — OPPOSE (HOT) Location: Considered before the United States Senate Commerce Committee July 25 ACR 149 (Choi) I Officer and Medal of Valor Recipient Waldron G. Karp Memorial . Highway This measure would designate a specified portion of Interstate 5 in the City of Tustin as the Officer and Medal of Valor Recipient Waldron G. Karp Memorial Highway. The measure would also request the Department of Transportation to determine the cost of appropriate signs showing this special designation and, upon receiving donations from nonstate sources covering the cost, to erect those signs. Location: Scheduled for Senate Fiscal Committed on August 6 AB 1971 (Santiago) I Mental health services: involuntary detention: gravely disabled This bill would expand the definition of "gravely disabled" for these purposes to also include a condition in which a person, as a result of a mental health disorder or chronic alcoholism, as applicable, is unable to provide for his or her medical treatment, as specified. The bill would make conforming changes. The bill would make certain legislative findings and declarations' related to mental health. League of California Cities — WATCH Association of California Cities Orange County — SUPPORT Location: In Senate Fiscal Committee Legislative Update July 17, 2018 Page 5of13 AB 3178 (Rubio) I Integrated waste management plans: source reduction and recycling element: diversion requirements. This bill would make findings, including, among others, that under China's National Sword import policy, many recyclable materials are now banned and may no longer be imported into that country, which has had a profound impact on California efforts to meet state recycling objectives. The bill would require the department, when evaluating a jurisdiction's good faith effort to implement a diversion program, to also consider whether China's National Sword import policy caused the absence or loss of a market for recyclable materials that necessitated the disposal of those materials as a temporary measure to avoid a public health threat, as specified. The bill would also require the department to consider the extent to which the jurisdiction has made efforts to reduce contamination and improve the quality of recycled materials and the extent to which the lack of an available market for one or more types of recyclable materials, which prevented the jurisdiction from fully implementing its diversion programs, was the result of circumstances beyond the reasonable control of the jurisdiction. League of California Cities — SUPPORT Association of California Cities Orange County— SUPPORT Location: In Senate Fiscal Committee AB 2249 (Cooley) I Public contracts: local agencies: alternative procedure. This bill would instead authorize public projects of $60,000 or less to be performed by the employees of a public agency, authorize public projects of $200,000 or less to be let to contract by informal procedures, and require public projects of more than $200,000 to be let to contract by formal bidding procedures. The current Uniform Public Construction Cost Accounting Act permits the governing body of a public agency, in the event all bids received for the performance of that public project are in excess of $175,000, to award the contract at $187,500 or less to the lowest responsible bidder if it determines the cost estimate of the public agency was reasonable. League of California Cities — SUPPORT Association of California Cities Orange County — SUPPORT Location: Concurrence — Awaiting Enrollment AB 2363 (Friedman) I Vision Zero Task Force Would require the Secretary of Transportation, on or before July 1, 2019, to establish and convene the Vision Zero Task Force, which shall include, but is not limited to, representatives from the Department of the California Highway Patrol, the University of California and other academic institutions, the Department of Transportation, local governments, bicycle safety organizations, statewide motorist service membership organizations, transportation advocacy organizations, and labor organizations. The bill Legislative Update July 17, 2018 Page 6of13 would require the task force to develop a structured, coordinated process for early engagement of all parties to develop policies to reduce traffic fatalities to zero. League of California Cities — SUPPORT Association of California Cities Orange County — WATCH Location: In Senate Fiscal Committee UPDATES OF PRIOR ITEMS (LAST UPDATE JUNE 19, 2018) AB 448 (Daly) I Joint powers authorities: Orange County Housing Trust ACC -OC has been working in partnership with the County of Orange and others to develop an Orange County Housing Trust (OCHT). In May, Assembly members Daly and Quirk -Silva introduced AB 448. This legislation will create a JPA that acts as a financial and funding vehicle for homelessness solutions — including but not limited to the planning and construction of permanent supportive housing, affordable housing/workforce housing, crisis stabilization units, mental and physical health facilities, rapid re -housing and emergency beds. The OCHT will have the ability to receive both public and private funding, bond against those funds, utilize tax credits, and service debt. It would not act as a regulator of land use, an owner or operator of housing units, or as a substitute for local control. League of California Cities — WATCH Association of California Cities Orange County (SPONSORED) - SUPPORT Location: In Senate Policy Committee AB 1912 (Rodriguez) I Public Employees' Retirement: Joint Powers Agreements Local governments have a long history of addressing service delivery challenges with creativity, self-reliance and innovation. Unique local challenges and limited resources continue to fuel innovative efforts to obtain expertise and provide high quality services. Joint Powers Authorities (JPAs) play a vital role in promoting regional and, in some cases, statewide collaboration in addressing public needs that cannot be effectively achieved by each local government agency acting on its own. These activities include regional public improvements, local and statewide infrastructure for water and roadways, emergency communications systems, law enforcement, fire protection, emergency medical services, and public financing, among others. AB 1912 places substantial burdens and new unworkable requirements on local and state agencies. It applies retroactive as well as prospective joint and several liabilities for all retirement related obligations to any current or former member of a JPA since inception. Legislative Update July 17, 2018 Page 7of13 Such obligations include active employee normal pension costs, retiree unfunded accrued liabilities (UAL), as well as both active and retiree healthcare and other post -employment retirement benefits (OPEBs). These costs cannot be overstated. Additionally, AB 1912 would mandate that a public retirement system, like California Public Retirement System (CalPERS), 37 Act System, or a city -based retirement systems file suit against all local or state agencies that have ever been a member of a terminated JPA for all retirement related obligations. It also prohibits any retirement system from approving a new JPA without a contract containing express joint and several liability provisions. League of California Cities — OPPOSE (HOT) Location: In Senate Fiscal Committee SB 623 (Monning) I Water quality: Safe and Affordable Drinking Water Fund Would establish the Safe and Affordable Drinking Water Fund in the State Treasury and would provide that moneys in the fund are continuously appropriated to the State Water Resources Control Board. The bill would require the board to administer the fund to secure access to safe drinking water for all Californians, while also ensuring the long- term sustainability of drinking water service and infrastructure. The bill would authorize the state board to provide for the deposit into the fund of federal contributions, voluntary contributions, gifts, grants, bequests, and settlements from parties responsible for contamination of drinking water supplies. League of California Cities — OPPOSE UNLESS AMENDED Association of California Cities Orange County — OPPOSE Location: In Assembly Policy Committee AB 3160 (Grayson) I Federal public lands conveyances: Defense BRAC Pursuant to last year adoption of SB 50, existing law generally establishes a policy of the state to discourage conveyances of federal public lands in California from the federal government. Existing law specifies that these conveyances are void ab initio unless the State Lands Commission was provided with the right of first refusal or the right to arrange for the transfer of the federal public land to another entity. Existing law exempts the sale of real property acquired by a federal agency through a foreclosure proceeding from these provisions. This bill would additionally exempt from these provisions the sale, lease of surplus, or excess real property that is authorized for disposal or realignment by the federal government during the base realignment and closure process, as specified. League of California Cities — WATCH Location: Failed Deadline - DEAD Legislative Update July 17, 2018 Page 8of13 PLANNING AND ZONING SB 828 (Wiener) I Land Use: Housing Element (RHNA) The Planning and Zoning Law requires a city or county to adopt a comprehensive, long- term general plan for the physical development of the city or county and of any land outside its boundaries, that bears relation to its planning. Mainly contains "intent language"; requires a local jurisdiction to plan accommodate 200% of RHNA, and establish a methodology for the comprehensive assessment for unmet housing need. League of California Cities — OPPOSE UNLESS AMEND Association of California Cities Orange County - WATCH Location: In Assembly Fiscal Committee AB 1771 (Bloom) I Regional Housing Needs Assessment Spot bill that would enact legislation that would make changes to the process for distributing regional housing needs (RHNA) to various jurisdictions to ensure fairness and the achievement of stated goals regarding housing. League of California Cities — WATCH Association of California Cities Orange County - WATCH Location: In Senate Fiscal Committee AB 1759 (McCarty) I General plans: Housing element: Production report: Withholding of transportation funds Would require planning agencies to provide an annual report to the State on the status of the general plan and progress in meeting the community's share of regional housing needs. Essentially, if jurisdictions due not meet their housing goals, those jurisdictions would be disqualified from receiving transportation (SB 1) funding. League of California Cities — WATCH Association of California Cities Orange County - WATCH Location: In Senate Fiscal Committee ACCESSORY DWELLING UNITS SB 831 (Wieckowski) - Land Use: Accessory Dwelling Units This bill would delete the requirement that the area be zoned to allow single-family or multifamily use. Local agency must act within 120 days of submitted application or it is deemed approved. Would not require a minimum lot size unless findings related to public safety impacts are made. No fees of any kind would be allowed to be collected or levied. League of California Cities — OPPOSE Association of California Cities Orange County— OPPOSE UNLESS AMENDED Location: Failed Deadline - DEAD Legislative Update July 17, 2018 Page 9of13 AB 2071 (Bloom) I Accessory dwelling units: Improvements: Liability Limits a public entities liability with regard to an owner attempting to bring the accessory dwelling unit into compliance with applicable local agency rules, regulations, or ordinances. League of California Cities — WATCH Location: In Senate Policy Committee SB 1226 (Bates) I Building standards: Accessory dwelling units Allows a local ordinance to authorize, when a record of the issuance of a building permit for an accessory dwelling unit does not exist, an enforcement official to make a determination of when the accessory dwelling unit was constructed and apply the State Housing Law, the building standards published in the California Building Standards Code, and other specified rules and regulations in effect when the accessory dwelling unit was determined to be constructed in order to issue a building permit for the accessory dwelling unit. League of California Cities — WATCH Location: In Assembly Fiscal Committee DENSITY BONUS SB 1227 (Skinner) I Density Bonuses Requires a density bonus to be provided if the development includes at least 20% of the total rental beds for students enrolled at an institution of higher education accredited by the Western Association of Schools and Colleges. Requires that these units be subject to a recorded affordability restriction of 55 years and be provided at the same affordability level as very low income units; sets the density bonus at 35% of the number of these units. League of California Cities — WATCH Location: In Assembly Policy Committee AB 2372 (Gloria) I Planning and zoning: Density bonus: FAR bonus Authorizes a city council or county board of supervisors to establish a procedure by ordinance to grant a developer of an eligible housing development a floor area ratio (FAR) bonus in lieu of a density bonus awarded based on dwelling units per acre. Restricted to multifamily developments. League of California Cities — WATCH Location: On Senate Floor Legislative Update July 17, 2018 Page 10 of 13 AB 2753 (Friedman) I Density bonuses: Density bonus application Requires that if a city or county does not determine whether a density bonus application is complete within 30 calendar days after it was submitted, or within 10 days in the case of a resubmitted application, then that application is deemed approved. City or county must act with 60 days of determining application is complete, otherwise, bonus is approved. League of California Cities — WATCH Location: In Senate Fiscal Committee AB 2797 (Bloom) I Planning and zoning: Density bonuses Prohibits any density bonus, incentives or concessions, waivers or reductions of development standards, and parking ratios from being a basis for finding a project inconsistent with "highly scenic areas" (Public Resources Code 30251). League of California Cities — WATCH Location: In Senate Policy Committee PARKING AND AUTONOMOUS VEHICLES AB 87 (Ting) I Autonomous Vehicles Requires vehicle manufacturers provide written notification to local authorities if an autonomous vehicle is being operated in their jurisdiction. The manufacturer must provide law enforcement with an interaction plan, which instructs law enforcement on how to interact with autonomous vehicles. League of California Cities — WATCH Location: In Senate Fiscal Committee AB 2263 (Friedman) I State historical buildings: Parking Spaces For the conversion of a historical structure for residential or mixed-use purposes, prohibits a local ordinance from imposing parking standards that exceed the parking standards that applied at the time the historical building was originally constructed. League of California Cities — WATCH Location: In Senate Fiscal Committee AB 3000 (Friedman) I Land use: New housing developments: Parking requirements Prohibits a city, county, or city and county from imposing minimum parking requirements for new housing developments where off-street parking is permitted. League of California Cities — WATCH Location: In Fiscal Committee 1St House. Held under Submission. Legislative Update July 17, 2018 Page 11 of 13 HOMELESSNESS AB 2161 (Chiu) I Housing: Homeless integrated data warehouse Directs the Department of Housing and Community Development to create a state homeless integrated data warehouse, in coordination with the Homeless Coordinating and Financing Council, to develop a composite portrayal of the homeless population in the state and the services provided to this population or to those at risk of becoming homeless. Data includes the number of individuals and families experiencing homelessness, their access to benefits, and the stated reasons for their homelessness. League of California Cities — WATCH Location: In Senate Fiscal Committee AB 2162 (Chiu) I Planning and zoning: Housing development: Supportive Housing Requires that supportive housing be a use by right in zones where multiple dwelling uses are permitted, including commercial zones. Projects must be subject to recorded affordability restrictions for 55 years; 100% of the units are dedicated to "low-income households"; and, 35% of the units are restricted to supportive housing. League of California Cities — WATCH Location: In Senate Fiscal Committee AB 3171 (Ting) I Homeless Persons Services Block Grant Establishes the Local Homelessness Solutions Program and creates the Local Homelessness Solutions Account for the purpose of providing funding to cities to create innovative and immediate solutions to the problems caused by homelessness. Allocates an unspecified amount of General Funds. League of California Cities — WATCH Location: In Senate Policy Committee SB 918 (Wiener) I Homeless Youth Act of 2018 Establishes the Office of Homeless Youth in the Department of Housing and Community Development. Requires the office to identify funding, policy, and practice gaps across state systems that serve, or hold the potential to serve, young people experiencing homelessness, develop specific recommendations and timelines for addressing these gaps, and report to the Legislature. Appropriates up to $60 million in General Funds for grants to nonprofits or a continuum of care administrative entity. League of California Cities — WATCH Location: In Assembly Fiscal Committee Legislative Update July 17, 2018 Page 12 of 13 OTHER AB 3162 (Friedman) I Alcoholism or drug abuse recovery or treatment facilities Requires, for any licensing application submitted on or after January 1, 2019, the department to deny an application for a new facility license, if the proposed location is in proximity to an existing facility that would result in overconcentration. Requires the department, at least 45 days prior to approving any application for any new facility, to post on its Internet Web site the address of the proposed new facility. League of California Cities — SUPPORT (Hot) Association of California Cities Orange County — SUPPORT Location: On Senate Floor AB 3194 (Daly) I Housing Accountability Act: Project approval Prohibits a housing development project from being found inconsistent, not in compliance, or not in conformity, with the applicable zoning ordinance, and would prohibit a local government from requiring a rezoning of the project site, if the existing zoning ordinance does not allow the maximum residential use, density, and intensity allowable on the site by the land use or housing element of the general plan. League of California Cities — OPPOSE Location: On Senate Floor SB 833 (McGuire) I Emergency Alerts: Evacuation orders: Operators Requires the Office of Emergency Services (OES) to ensure that each emergency management office within a city or county is a registered federal Wireless Emergency Alert (WEA) operator and has functional, up-to-date WEA software and annual training for operation of the WEA system. Additionally, this bill would require a "red alert" system designed for quick response to issue and coordinate alerts for evacuation orders and to incorporate the system into a variety of notification resources, including the state -utilized emergency notification system inclusive of local digital signs, radio, television, text messaging, or other technologies. League of California Cities — SUPPORT (Hot) Association of California Cities Orange County — SUPPORT Location: In Assembly Fiscal Committee SB 946 (Lara) I Sidewalk Vendors Prohibits a local authority from adopting rules or regulations that regulate or prohibit sidewalk vendors unless it first adopts a sidewalk vending licensing program that requires a sidewalk vendor to obtain a license from the local authority before selling food or merchandise. Prohibits restricting the location of a licensed sidewalk vendor unless the Legislative Update July 17, 2018 Page 13 of 13 restriction is directly related to objective health, safety, or welfare concerns. Prohibits restricting licensed sidewalk vendors from selling food or merchandise in a park. League of California Cities — WATCH Location: On Assembly Floor ATTACHMENT A — November 2018 Ballot Measure Summary November 6, 2018, Statewide Ballot Measures Legislative Update July 17, 2018 Attachment A PROPOSITION 11 Veterans and Affordable Housing Bond Act of 2018 This measure places a $4 billion general obligation bond on the ballot to fund affordable housing programs and the veterans homeownership program (Cal Vet). This bill would enact the Veterans and Affordable Housing Bond Act of 2018, which, if adopted, would authorize the issuance of bonds for $4,000,000,000 pursuant to the State General Obligation Bond Law. Of the proceeds from the sale of these bonds, $3,000,000,000 would be used to finance various existing housing programs, as well as infill infrastructure financing and affordable housing matching grant programs, as provided, and $1,000,000,000 would be used to provide additional funding for the above- described program for farm, home, and mobile home purchase assistance for veterans, as provided. PROPOSITION 21 No Place Like Home "Homeless Housing" Ratification Authorizes the distribution of $2 Billion for capital costs for permanent supportive housing. This bill would enact the No Place Like Home Act of 2018 and provide for submission of that act to the voters at the Nov. 6, 2018, statewide general election. The bill would specify that the service contracts between the authority and the department may be single -year or multiyear contracts and provide for payments to the department from amounts on deposit in the Supportive Housing Program Subaccount. The bill would include any appropriation or transfer to the No Place Like Home Fund from the General Fund or other funds as moneys required to be paid into the No Place Like Home Fund. The bill would authorize the Legislature to amend the No Place Like Home Act of 2018 by a two- thirds vote, so long as the amendment is consistent with and furthers the intent of the act. PROPOSITION 3 1 Water Supply and Water Quality Act of 2018 Authorizes bonds to fund projects for water supply and quality, watershed, fish, wildlife, water conveyance, and groundwater sustainability and storage. Initiative statute. Authorizes $8.877 billion in state general obligation bonds for various infrastructure projects: $3.03 billion for safe drinking water and water quality, $2.895 billion for watershed and fisheries improvements, $940 million for habitat protection, $855 million for improved water conveyance, $685 million for groundwater sustainability/storage, and $472 million for surface water storage/dam repairs. Appropriates money from General Fund to pay off bonds. Requires certain projects to provide matching funds from non - state sources; gives priority to disadvantaged communities. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local Legislative Update Attachment A July 17, 2018 Page 2 of 5 government: State costs of $17.3 billion to pay off principal ($8.9 billion) and interest ($8.4 billion) on bonds over a 40 -year period. Annual payments would average $433 million. Annual payments would be lower than this average in the initial and final few years and somewhat higher in the intervening years. Varying fiscal effects on individual local governments depending on specific projects undertaken, amount of grants and loans received, and amount of local cost -share required. PROPOSITION 4 1 Children's Hospital Bond Act of 2018 Authorizes Bonds Funding Construction at Hospitals Providing Children's Health Care. Initiative Statute. Authorizes $1.5 billion in bonds, to be repaid from state's General Fund, to fund grants for construction, expansion, renovation, and equipping of qualifying children's hospitals. Designates 72 percent of funds to qualifying private nonprofit hospitals providing comprehensive services to high volumes of children eligible for governmental programs and children with special health needs eligible for the California Children's Services program, 18 percent of funds to University of California general acute care children's hospitals, and 10 percent of funds to public and private nonprofit hospitals providing services to children eligible for the California Children's Services program. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: State costs of $2.9 billion to pay off principal ($1.5 billion) and interest ($1.4 billion) on bonds over a 35 -year period. Annual payments would average $84 million. Annual payments would be lower than this average in the initial and final few years, and somewhat higher in the intervening years. PROPOSITION 5 1 People's Initiative to Protect Postposition 13 Savings Changes Requirements for Property Owners to Transfer Their Property Tax Base to Replacement Property. Initiative Constitutional Amendment and Statute. Removes the following current requirements for homeowners who are over 55 years old or severely disabled to transfer their property tax base to a replacement residence: that replacement property be of equal or lesser value, replacement residence be in specific county, and the transfer occur only once. Removes similar replacement -value and location requirements on transfers for contaminated or disaster -destroyed property. Requires adjustments to the replacement property's tax base, based on the new property's value. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Annual property tax losses for cities, counties, and special districts of around $150 million in the near term, growing overtime to $1 billion or more per year (in today's dollars). Annual property tax losses for schools of around $150 million per year in the near term, growing over time to $1 billion or more per year (in today's dollars). Increase in state costs for schools of an equivalent amount in most years. Legislative Update Attachment A July 17, 2018 Page 3 of 5 PROPOSITION 61 Repeal of Recently Enacted State Transportation Funds Eliminates Recently Enacted Road Repair and Transportation Funding by Repealing Revenues Dedicated for those Purposes. Requires any Measure to Enact Certain Vehicle Fuel Taxes and Vehicle Fees be Submitted to and Approved by the Electorate. Initiative Constitutional Amendment. Repeals a 2017 transportation law's tax and fee provisions that pay for repairs and improvements to local roads, state highways, and public transportation. Requires the Legislature to submit any measure enacting specified taxes or fees on gas or diesel fuel, or on the privilege to operate a vehicle on public highways, to the electorate for approval. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Reduced annual state transportation tax revenues of $2.9 billion in 2018-19, increasing to $4.9 billion annually by 2020-21. These revenues would primarily have supported state highway maintenance and rehabilitation, local streets and roads, and mass transit. In addition, potentially lower transportation tax revenues in the future from requiring voter approval of such tax increases, with the impact dependent on future actions by the Legislature and voters. PROPOSITION 71 Elimination of Daylight Savings Time Ends Daylight Savings Time in California. This bill would repeal the Daylight Saving Time Act and would require the standard time within the state to be that of the 5th zone designated by federal law as Pacific standard time. The bill would require the advancement of this time by one hour during the daylight saving time period commencing at 2 a.m. on the 2nd Sunday of March of each year and ending at 2 a.m. on the first Sunday of November of each year, and would authorize the Legislature to amend these provisions by a 2/3 vote to change the dates and times of the daylight saving time period, consistent with Federal law. The bill would also authorize the Legislature to amend these provisions by a 2/3 vote to provide for the application of year- round daylight saving time when authorized by federal law. PROPOSITION 81 Fair Pricing for Dialysis Act Authorizes State Regulation of Kidney Dialysis Clinics. Limits Charges for Patient Care. Initiative Statute. Limits amounts outpatient kidney dialysis clinics may charge for patient care and imposes penalties for excessive charges. Requires annual reporting to the state regarding clinic costs, patient charges, and revenue. Prohibits clinics from discriminating against patients based on the source of payment for care. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: State administrative costs of around $1 million annually to be covered by increases in license Legislative Update Attachment A July 17, 2018 Page 4 of 5 fees on chronic dialysis clinics. State and local government savings largely associated with reduced government employee and retiree health benefits spending on dialysis treatment, potentially up to tens of millions of dollars annually. PROPOSITION 9 1 Three States Initiative Division of California into Three States. Initiative Statute. Divides California into three states subject to approval by Congress. Assigns each county to a new state. Upon passage, directs Governor to request that Congress grant approval within twelve months. If Congress approves, directs Legislature to divide California's assets and liabilities between the new states. Provides that, if Legislature fails to act within twelve months of Congressional approval, debts shall be distributed among new states based on population relative to California population as a whole, and assets within boundaries of each new state shall become the assets of that new state. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Assuming this measure is approved by voters and the federal government and allowed by the courts, all tax collections and spending by the existing State of California would end. California's existing state assets and liabilities would be divided among three new states. These states would make their own decisions about state and local taxes and spending. PROPOSITION 10 1 Affordable Housing Act "Restoring Rent Control Option" Expands Local Governments' Authority to Enact Rent Control on Residential Property. Initiative Statute. Repeals state law that currently restricts the scope of rent -control policies that cities and other local jurisdictions may impose. Allows policies that would limit the rental rates that residential -property owners may charge for new tenants, new construction, and single- family homes. In accordance with California law, provides that rent -control policies may not violate landlords' right to a fair financial return on their rental property. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Unknown, but potentially significant, changes in state and local government tax revenues. Net decrease more likely than net increase. Potential increase in local government costs of up to tens of millions of dollars per year in the long term, likely paid by fees on owners of rental housing PROPOSITION 111 Emergency Ambulance Employee Safety and Preparedness Act Requires Private -Sector Emergency Ambulance Employees to Remain on Call During Work Breaks. Changes Other Conditions of Employment. Initiative Statute. Makes the labor law that entitles hourly employees to take work (meal and rest) breaks without being on call inapplicable to private -sector emergency ambulance employees. Legislative Update Attachment A July 17, 2018 Page 5 of 5 Regulates timing of meal breaks for these employees. Exempts employers from potential liability for violations of existing law regarding work breaks. Requires employers to pay for employees to be trained regarding certain emergency incidents, violence prevention, and mental health and wellness. Requires employers to provide employees with certain mental-health services. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Local government net savings likely in the tens of millions of dollars annually due to lower emergency ambulance contract costs. PROPOSITION 121 Prevention of Cruelty to Farm Animals Act Establishes New Standards for Confinement of Certain Farm Animals, Bans Sale of Certain Non - Complying Products. Initiative Statute. Establishes new minimum space requirements for confining veal calves, breeding pigs, and egg -laying hens; requires egg -laying hens be raised in cage -free environment after December 31, 2021. Prohibits certain commercial sales of specified meat and egg products from animals confined in non -complying manner. Defines sales violations as unfair competition. Creates good faith defense for sellers relying upon written certification by suppliers that meat or animal products comply with new confinement standards. Requires State of California to issue implementing regulations. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Potential decrease in state and local tax revenues from farm businesses, likely not to exceed the low millions of dollars annually. Potential state costs ranging up to ten million dollars annually to enforce the measure.