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HomeMy WebLinkAbout04 LEGISLATIVE UPDATEDocuSign Envelope ID: 63A42991-01B5-4C3D-A20E-28CA97933E8E C�1�r o�AGENDA REPORT Agenda Item 4 Reviewed: os City Manager Finance Director MEETING DATE: JULY 18, 2023 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: MATTHEW S. WEST, CITY MANAGER SUBJECT: LEGISLATIVE UPDATE SUMMARY: Staff and the City's consultant Townsend Public Affairs (TPA) have prepared a summary of state legislative activity. RECOMMENDATION: 1. Receive and file the updated legislative matrix as of July 7. 2. Receive and file legislative updates prepared by TPA. FISCAL IMPACT: Not applicable. DISCUSSION: State Legislative Updates TPA has created a summary of state legislative activity for the month of June that is attached to the staff report. Legislative Tracking Matrix Attached is a legislative tracking matrix as of July 7 that tracks bills of interest as well as bills tracked by the League of California Cities (LOCC), the Municipal Water District of Orange County (MWDOC) and other state and local associations. Attachments: - TPA June 2023 update - Legislative Matrix as of July 7 - 2023 Legislative Platform DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E TOWNSEND TPA MEMORANDUM To: City of Tustin From: Townsend Public Affairs Date: July 7, 2023 Subject: June 2023 Monthly Report The month of June saw the rapid approach of state budget and first house bill deadlines. Lawmakers worked to pass legislation out of their respective house of origin before June 2 and agree on a budget framework before June 15. Additionally, the Legislature negotiated with the Administration on a comprehensive budget framework for 2023. The Governor signed the 2023 Budget Act into law prior to the constitutional deadline of July 1. Below is an overview of pertinent state actions from the month of June. State Budget During the last week of June, the Legislature and Governor Newsom announced they had reached a deal on the 2023 State Budget. On June 13, Governor Newsom signed the 2023 Budget Act, SB 101, into law, four days before the constitutional deadline of July 1. Overall, the budget reflects a $310.8 billion spending plan for the 2023-24 fiscal year. This agreement also closes an estimated $32 billion budget deficit while setting aside about $37.8 billion in reserves. In early July, the Governor will continue to sign "Budget Jr. Bills" and "Budget Trailer Bills" which amend the Budget Act and provide implementing language for key spending programs and reflects the final agreement on the state's spending plan reached between the Administration and the Legislature. Much of the negotiations during June centered around the Governor's desire to include several measures to expedite large-scale infrastructure projects by, in part, accelerating the judicial review of CEQA lawsuits and providing funding for transit operations. Ultimately, the negotiations resulted in a concession the Governor made, to remove the proposed Delta Tunnel water project from being eligible for expedited CEQA review. Key accounts related to housing, homelessness, public safety, and transportation are mostly stabilized from budget amounts in the past few years. Below is an overview of key spending programs included in the final budget agreement, organized by issue area: Higher Education The higher education budget spares delays and cuts to construction and student housing projects by shifting costs to bonds, provides debt -free college to foster youth, and assures that the current DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E $289 million for the state's middle-class scholarship program will continue through 2024-25 to maintain the current level of funding for the program in that school year. For student housing, the budget provides $300 million General Fund per year for six years (each of 2023-24 through 2028-29) for the California Student Housing Revolving Loan Fund (Fund). The Fund, created in the 2022 Budget Act, will provide zero -interest loans to qualifying campuses of UC, CSU, and CCC for construction of affordable housing projects. Housing The housing package in the state budget includes various annual and one time funding programs. The California Dream for All shared equity down payment assistance program for first-time homebuyers is fully funded by rejecting the $200 million proposed cuts, as is the Accessory Dwelling Unit Grant Program by rejecting $50 million in proposed cuts. The budget directs $100 million to the Housing and Community Development Department's flagship affordable housing development program: Multi -Family Housing Program. It retains $50 million for the CalHome affordable housing retention and rehabilitation program, by partially rejecting $100 million in proposed cuts, and $82.5 million for the Foreclosure Intervention and Housing Preservation Program while achieving budget year savings through deferral of $345 million previously allocated to the program. Homelessness The state budget includes $1 billion into round five of the state's Homeless Housing, Assistance and Prevention program, which local officials can use for housing, outreach at encampments, emergency shelters and more. In accordance with the Governor's desire to see local accountability for use of funds, the agreement includes language to require local government recipients to incorporate more data relating to homelessness prevention goals and outcomes to more effectively assess the efficacy of the program. Public Safety The state budget includes various programs for opioid overdose education and prevention, with $3.5 million ongoing funding to county offices of education to supply opioid overdose reversal medication, with at least two units at all middle and high schools within each county office's jurisdiction. The budget also includes $15.3 million annually for four years from the Opioid Settlements Fund to support harm reduction programs for staff and costs related to delivery of naloxone, fentanyl test strips, overdose prevention and response training, and drug treatment provision and navigation, in the California Harm Reduction Initiative. Further, the budget agreement includes annual funding over the next four years for the expansion of the Naloxone Distribution Project includes expenditure authority from the Opioid Settlements Fund of $74.7 million in 2023-24, $35.7 million in 2024-25, and $24.7 million in 2025-26 and $24 million in 2026-27. Transportation 2 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E The transportation budget package includes a restoration of the $2 billion from the General Fund for the TIRCP program, as well as committing $1.1 billion in new and previously appropriated transit funding for the newly created Zero Emission Transit Capital Program. This funding would flow to regional transportation agencies by formula and can be used for transit capital infrastructure or can be directed to meet the operational needs of transit agencies in their jurisdiction. The trailer bill language describes the process by which the regions can access their share of these funds and includes some accountability measures regions must meet. In addition, the transportation package requires CaISTA to establish and convene the Transit Transformation Task Force to include representatives from transit operators, local governments, transportation advocacy organizations, and other stakeholders, to develop policy recommendations to grow transit ridership and improve the transit experience for all users of those services. From this effort, a report of findings and policy recommendations are to be submitted to the Legislature no later than October 31, 2025. Assembly Member Robert Rivas Succeeds Assembly Member Anthony Rendon as Speaker Following nearly a year -long transition, Friday, June 30 marked the final day of the Session with Anthony Rendon as the Assembly Speaker, as Robert Rivas was sworn in to serve as the 71 st Speaker of the Assembly. Assembly Member Rivas attempted to ascend to the Speakership in May 2022, following long and tense negotiations within the Democratic Caucus. It was then announced that a mid -session transition would take place following the final budget agreement. During a special order of business, Assembly Member Robert Rivas took the Oath of Office as the 71 st Speaker of the California State Assembly. Following the Oath of Office Ceremony, he made a speech wherein he told of his family's migration from Mexico and how growing up in farmworker housing with a single mother helped shape his political views. Representing an agricultural swath of central California, Rivas becomes the first Speaker in a generation to hail from a rural region. Seven of the last eight speakers were from Los Angeles; the other one was from San Diego. Speaker Rivas shared his goals for the upcoming year, which included working to address the issues of homelessness and affordable housing. In early July and after the Legislature's Summer Recess, Speaker Rivas is expected to announce his leadership team, as well as any changes that will be made to the membership of committees in the Assembly. This is likely to have a ripple effect in the Assembly's priorities, policy actions, and political factions of the legislative body as a whole. Governor Newsom Proposes Historic 28th Amendment to the United States Constitution to End America's Gun Violence Crisis In early June, Governor Newsom proposed a 28th Amendment to the United States Constitution to reform gun ownership and safety laws. Governor Newsom stated, "This will guarantee states the ability to enact common-sense gun safety laws while leaving the 2nd Amendment intact, respecting America's gun -owning tradition". The 28th Amendment will permanently enshrine four gun safety principles into the U.S. Constitution: • Raising the federal minimum age to purchase a firearm from 18 to 21; 3 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E Mandating universal background checks to prevent truly dangerous people from purchasing a gun that could be used in a crime; Instituting waiting periods for all gun purchases; and Barring civilian purchase of assault weapons. An amendment to the United States Constitution will require California lawmakers to introduce a joint resolution with a simple majority to call for a Constitutional Convention. If the Constitutional convention is triggered, then three -fourths of states would have to vote "yes" for it to pass (33 in total). There has never been a U.S. Constitutional amendment proposed by states that has ever passed. California Lawmakers indicated on Thursday that they began the process of drafting the joint resolution. Democratic Assembly Member Reggie Jones -Sawyer, who will be filing the resolution, didn't say when exactly when the legislation will be formalized. Legislature Releases Behavioral Health Policy and Funding Reforms to be Incorporated into 2024 Ballot In late June, Senator Eggman and Assembly Member Irwin gut and amended two bill vehicles to insert the anticipated Mental Health Services Act (MHSA) reforms and Behavioral Health Continuum funding packages. These developments follow an announcement from Governor Newsom in early March wherein he stated plans to develop a ballot initiative to improve how California treats mental illness, substance abuse, and homelessness. The package was said to include three parts: Amends the Mental Health Services Act (MHSA) leading to at least $1 billion every year in local assistance for housing and residential services for people experiencing mental illness and substance use disorders, and allowing MHSA funds to serve people with substance use disorder; 2. Authorizes a general obligation bond to build thousands of new community behavioral health beds in residential settings to house Californians with mental illness and substance use disorders, which could serve over 10,000 people every year in residential -style settings that have on -site services; and 3. Improves statewide accountability through the development of outcome measures (instead of just process measures) and increase fiscal transparency by requiring counties to report on annual expenditures for key funding brackets. Senator Eggman's SB 326 is the vehicle for MHSA policy reforms and Assembly Member Irwin's AB 531 is the vehicle for the issuance of bonds for the state's behavioral healthcare infrastructure needs. Additional details on both of the measures are outlined below: • SB 326 (Eggman) recasts the MHSA by, among other things, renaming it the Behavioral Health Services Act (BHSA), expanding it to include treatment of substance use disorders, changing the county planning process, and expanding services for which counties and the state can use funds. Key takeaways are that the reforms would greatly expand the pool of who can receive care with funds, improve interagency data collection practices to gather a better 4 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E understanding of the target population/population served, and update funding brackets to expand services to include housing interventions, among other things. • AB 531 (Irwin) enacts the Behavioral Health Infrastructure Bond Act of 2023 which, if approved by the voters, authorizes $4,680,000,000 in bonds to finance grants for the construction and capital acquisition of community -based treatment settings, residential care settings, and housing for veterans and others who are experiencing homelessness or are at risk of homelessness and are living with a behavioral health challenge. The Governor released a statement and factsheet regarding the release of the language. The anticipated next steps for these two policy bills is to work their way through the legislative process in the coming months, and will require consideration and approval by the Legislature before moving to the Governor's desk for signature in 2023. These steps need to occur prior to being presented to the voters for approval in March 2024. As shown with the passage of the CARE Court bill and now this push for the expansion of services and infrastructure — the State is moving in the direction of recentralizing its behavioral healthcare system, which was previously dismantled in the 1960s. New Study Explores Causes and Barriers to Housing for State's Homelessness Population In late June, the University of California San Francisco Benioff Homelessness and Housing Initiative released a long-awaited study on the causes and experiences of people experiencing homelessness in California. The representative study, Toward a New Understanding: The California Statewide Study of People Experiencing Homelessness, was compiled after 13 months of data collection between October 2021-November 2022. The study produced a number of interesting data points - some of which contradict common statements made during policy debates. For instance, the study found that money, more than addiction, mental health, poor decisions or other factors, is the main cause of — and potential solution to — homelessness. While a range of barriers prevented participants from obtaining housing, 89% of participants indicated that high housing costs negatively impacted their ability to exit homelessness and nearly all participants indicated that a financial subsidy or housing voucher would help them exit homelessness. Further, 90% of participants lost their last housing in California, and 75% of participants lost their last housing in the same county they currently reside in. This counters the common narrative that people come to California after losing their housing in another state or country. In addition, nearly every participant expressed interest in obtaining permanent housing. The study concluded with a range of policy recommendations for local, state, and federal policymakers, including increasing affordable housing access for low-income households, expanding homelessness prevention services and interventions, ensuring the availability of robust behavioral health services and supports, and embedding racial equity approaches into the homeless delivery system. Broadband Funding Updates On June 26, the United States Department of Commerce's National Telecommunications and Information Administration (NTIA) announced funding allocations for the $42.45 billion Broadband Equity, Access, and Deployment (BEAD) program from the Bipartisan Infrastructure Law to DocuSign Envelope ID: 63A42991-011354=-A20E-28CA97933E8E administer grant programs within their borders. California will receive $1.86 billion in funding from the BEAD program. BEAD funding will be used to deploy or upgrade broadband networks to ensure that everyone has access to reliable, affordable, high-speed Internet service. Once deployment goals are met, any remaining funding can be used to pursue eligible access, adoption, and equity -related uses. An overview of allocations can be found here. In response to the release of funding, the California Public Utilities Commission (CPUC) will host a live webinar for the Federal Funding Account broadband grant program on July 6, 2023, at 10 a.m. Applicants will have the opportunity to learn more about last mile broadband infrastructure project deployment and how to apply for funding. A link to the webinar registration information can be found here. The month of June saw several developments on the federal appropriations front, and the announcement of major policy initiatives in the issue areas of ending gun violence, aviation administration, transportation and infrastructure, and clean energy. Additionally, the end of the Supreme Court term produced a number of high -profile rulings on long -anticipated decisions. Below is the overview of pertinent federal actions from the month of June. Supreme Court Issues Rulings on Same -Sex Protections, Student Loan Debt Forgiveness, and Affirmative Action During the last week of June, the Supreme Court handed down its final opinions of the term, including highly anticipated decisions on student loan forgiveness and free speech and LGBTQ+ protections. Included are the following rulings and their associated impacts: Student Loan Forgiveness The Supreme Court ruled that the Biden administration does not have the authority to implement the President's student loan debt forgiveness plan. The program would have canceled $10,000 in student debt for all borrowers who made less than $125,000, up to $20,000 for borrowers who also received Pell grants and would have impacted over 43 million Americans. Roughly 26 million borrowers applied to have some of their student debt canceled while legal battles played out. Student loan payments will now begin accruing interest in September and payments are due to restart in October after a three-year pandemic -related hiatus. Estimates suggest that nearly 20 percent of borrowers are at risk of default when payments resume. President Biden will announce new actions to address student loan debt in light of the Supreme Court's decision and is working with the Department of Education to identify ways to ease the impact of payment resumption. Affirmative Action The Supreme Court issued a decision setting new limits on affirmative action programs. The lawsuit stemmed from allegations that affirmative action permits intentional discrimination toward Asian American applicants. The Supreme Court ruled that the 14th Amendment prohibits the use 0 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E of racial preferences in admissions, overriding the decades long precedent of permitting the consideration of race so long as schools did not use a quota system. While the decision states that, "nothing prohibits universities from considering an applicant's discussion of how race affected the applicant's life, so long as that discussion is concretely tied to a quality of character or unique ability that the particular applicant can contribute to the university," in practice, the ruling likely only narrowly preserves race -conscious considerations through an applicant's essay or interview. Affirmative action has been banned in California since 1996 but the new decision will now extend the prohibition to private colleges and universities throughout the state. As a result of the ruling, higher education officials may now consider ways to promote diversity even if they can't consider race directly in admission decisions. This may lead to efforts to increase the enrollment of community college transfer students and increase high school outreach. President Biden responded shortly after the decision urging colleges to "give serious consideration to the adversities students have overcome, including the financial means of a student or their family; where a student grew up and went to high school; and personal experiences of hardship or discrimination, including racial discrimination, that a student may have faced." The Administration plans to roll out several actions in the coming months to provide colleges with clarity on what admissions practices and additional programs to support students remain lawful. LGBTQ+ Protections The Supreme Court ruled in favor of Lorie Smith, a Colorado -based web designer who claimed the First Amendment entitles her to refuse service to couples seeking websites that celebrate same -sex marriage. Smith, an evangelical Christian, originally filed suit in 2016, declaring her business exempt from the state's antidiscrimination law. Twenty-eight states (including California) and the District of Columbia have public accommodation discrimination laws protecting sexual orientation and gender identity. A federal appeals court in Denver previously ruled that businesses open to the public must treat all potential customers equally regardless of sexual orientation. However, in Smith's appeal to the Supreme Court, the 6-3 decision found that Colorado's antidiscrimination law couldn't be enforced to require a business owner to express ideas she opposes. The ruling may impact state public accommodation laws for businesses who sell "expressive" goods. President Biden responded to the decision by stating, "I'm deeply concerned that the decision could invite more discrimination against LGBTQI+ Americans. More broadly, today's decision weakens long-standing laws that protect all Americans against discrimination in public accommodations —including people of color, people with disabilities, people of faith, and women." The President called on Congress to amend civil-rights law to explicitly account for sexual orientation. Biden-Harris Administration Opens Streamlined Application Process for More Than $5.5 Billion in Funding to Help Carry Out Major Infrastructure Projects Across the Country During the last week of June, U.S. Transportation Secretary Pete Buttigieg announced that the Department of Transportation is now taking applications for up to $5.575 billion in funding from President Biden's Bipartisan Infrastructure Law for projects of regional or national significance. 7 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E This funding supports three major discretionary grant programs that involve surface transportation projects designed to strengthen supply chains, spur economic development, and improve safety and daily life. Applications for funding are being solicited together under a single opportunity titled the Multimodal Project Discretionary Grant program. Available grant funding includes: $1.8 billion for the National Infrastructure Project Assistance (Mega) program: The Mega program supports large, complex projects that are difficult to fund by other means and are likely to generate national or regional economic, mobility, or safety benefits. Eligible projects could include highway, bridge, freight, port, passenger rail, and public transportation projects of national or regional significance. Per the law, 50 percent of funds are available for projects above $500 million in total cost, and 50 percent are available for projects between $100 million and $500 million in total cost. $3.1 billion for the Infrastructure for Rebuilding America (INFRA) program: The INFRA program awards competitive grants to multimodal freight and highway projects of national or regional significance to improve the safety, accessibility, efficiency, and reliability of the movement of freight and people in and across rural and urban areas. Eligible projects will improve safety, generate economic benefits, reduce congestion, enhance resiliency, and hold the greatest promise to eliminate supply chain bottlenecks and improve critical freight movements. $675 million for the Rural Surface Transportation Grant (Rural) program: The Rural program supports projects that improve and expand our nation's surface transportation infrastructure in rural areas in order to increase connectivity, improve the safety and reliability of the movement of people and freight, and generate regional economic growth and improve quality of life. Eligible projects for Rural grants include highway, bridge, and tunnel projects that help improve freight, safety, and provide or increase access to agricultural, commercial, energy, or transportation facilities that support the economy of a rural area. 90% of rural funding must be awarded in $25 million or greater amounts. The deadline for applications is 11:59 pm EDT on August 21, 2023, additional information and other helpful resources are linked here. House Transportation and Infrastructure Committee Approves Bipartisan Federal Aviation Administration Reauthorization Bill In mid -June, the House Transportation and Infrastructure Committee approved a bipartisan bill to reauthorize the Federal Aviation Administration on a 63-0 vote. The bill, H.R. 3935 would authorize spending more than $100 billion on airports, equipment, and aviation operations over a five-year period. Over the course of the two-day markup, the panel discussed many amendments and adopted items such as raising the retirement age for pilots, providing extra training for airport employees who assist passengers in wheelchairs, and providing instructions on pumping for flight crews. The committee's vote is a step in the right direction for the bipartisan reauthorization plan, which leaders hope to bring to the House floor in July after adding tax and research elements that were taken into consideration by other committees. The legislation will need to be negotiated with the Senate before the FAA's existing authorities expire on September 30. The Senate Commerce Committee is scheduled to hold their own markup as well. 0 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E Additional measures pertaining to refunds and airline scheduling are included in the Senate FAA Act. In mid -June, consumer advocacy organizations slammed the House plan for giving airlines and FAA officials more control over consumers. The House plan would relax the rules that airlines must follow in order to advertise the complete cost of a ticket, which has angered advocacy groups. However, during the session, lawmakers praised the consumer protections. A clause regarding pilot training standards is one of the main differences between the House and Senate proposals. To qualify as first officers for commercial airlines, regulations stipulate that pilots must log at least 1,500 training flights; simulator use is now permitted for a maximum of 100 hours. Up to 150 additional hours in a full -flight simulator might be counted toward the training hours under the House proposal. Reconnecting Communities and Neighborhoods (RCN) Program The Office of the Secretary of Transportation (OST) will soon release a joint Notice of Funding Opportunity (NOFO) for the Reconnecting Communities Pilot (RCP) and Neighborhood Access and Equity (NAE) programs, which will combine two major discretionary grants into one NOFO. Together, this combined program will be known as the Reconnecting Communities and Neighborhoods (RCN) Program. Created in the Bipartisan Infrastructure Law, funding from the $1 billion pilot program will help reconnect communities that were previously cut off from economic opportunities by transportation infrastructure. Reconnecting a community could mean adapting existing infrastructure— such as building a pedestrian walkway over or under an existing highway— to better connect neighborhoods to opportunities or better means of access such as crosswalks and redesigned intersections. The RCN NOFO will solicit grant applications for the Reconnecting Communities Pilot discretionary grant program, and for the newly created Neighborhood Access and Equity discretionary grant program, established by the Inflation Reduction Act (IRA). Neighborhood Access grants can be used for a variety of projects that at their heart will restore connectivity in disadvantaged or underserved communities. Under the combined RCN Program, USDOT will offer three grant types: Capital Construction Grant: $1.15 Billion total: $148 Million RCP Capital Construction Funds and $1 Billion NAE Funds; To fund both reconnecting -focused projects and smaller projects focused on reducing environmental harm and improving access in disadvantaged communities. Community Planning: $185 Million total: $50 Million RCP Planning Funds and $135 Million NAE Funds, To provide funds for planning activities to support future construction projects and allow for innovative community planning to address localized transportation challenges. Regional Partnerships Challenge: $450 Million NAE Funds; To incentivize stronger partnerships between local governments, Tribal governments, MPOs/RPOs, State DOTs, and non-profit, private, and community partners to tackle persistent equitable access and mobility challenges, as well as green house gas emissions reductions. (Applicants must consist of a partnership between two or more eligible agencies). Additional information on how to apply, frequently asked questions, and the Department's Benefit Cost Analysis Guidance for Discretionary Grant programs are forthcoming and will be available 0 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E at Reconnecting Communities and Neighborhoods Grant ProgramI US Department of Transportation. The Biden-Harris Administration Takes Additional Actions to Address Mental Health Needs of Young People and Make Communities Safer from Gun Violence In mid -June, the U.S. Department of Education (ED) and the U.S. Department of Health and Human Services (HHS) took additional steps to advance the investments and efforts set forth by President Biden's Bipartisan Safer Communities Act (BSCA). BSCA set forth crucial mental health investments and actions to prevent and respond to gun violence in communities, ensure that those experiencing grief and trauma resulting from gun violence have access to high -quality mental health services, and supports to make our schools safer and expand community violence interventions. BSCA implementation has a multifaceted approach to deliver on crucial protections and resources to help prevent gun violence in schools and support the development of high -quality school -based mental health services. At ED, this includes awarding $286 million to date across 264 grantees in 48 states and territories to boost the training, hiring, and diversification of mental health professionals in schools through its School -Based Mental Health and Mental Health Service Professional Demonstration grant programs (which will result in an estimated 14,000 additional mental health professionals in schools); distributing $1 billion in the Stronger Connections Grant program to help schools in high -need districts provide students with safe, welcoming, and supportive learning opportunities and environments that are critical for their success; and providing an additional $50 million to supplement before and after -school programming for young people through the Nita M. Lowey 21st Century Community Learning Centers, through evidence - based practices that increase attendance and engagement among middle- and high-school aged youth. At HHS, nearly $245 million in funding has been awarded to support youth mental health, help the health care workforce address mental health needs, and fund other critical mental health supports; $70 million to help develop and support school -based mental health programs; almost $60 million to prepare and train school personnel, emergency first responders, law enforcement and others to recognize the signs and symptoms of mental health challenges; and almost $55 million to increase treatment and support services for individuals and communities affected by trauma caused by gun violence. In the coming months, HHS will also provide almost $60 million to states and territories for the second of four increments in supplemental funding for the Community Mental Health Services Block Grant for mental health treatment and recovery services including crisis services and early serious mental illness treatment programs. Treasury Department Announces Details of Direct Pay for Cities, Counties, Special Districts, Non -Profits In mid -June the Treasury Department announced details of an expanded tax credit for clean energy technologies provided as a result of the Inflation Reduction Act which became law in August 2022. The tax credits include a provision that enables tax-exempt and government entities, such as cities, counties, water districts, college districts, transit districts, and non-profit organizations to receive the tax credit in the form of a direct payment. The feature, known as direct pay by the White House and elective pay by the IRS, applies to twelve tax credits created by the Inflation Reduction Act. Among these are a tax credit (direct payment) of up to $40,000 for qualified commercial clean vehicles such as buses, ambulances, 10 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E and other public fleet vehicles. There is also a tax credit for EV charging infrastructure and clean electricity production such as community solar panels and for clean energy storage. A full list of the tax credits eligible for direct pay is detailed on this IRS fact sheet here. Unlike most federal funding opportunities created in recent years this is not a competitive grant program. All eligible entities making eligible clean energy investments who file the required forms will receive direct payment. The process to access the payments will be similar to filing a tax return. Eligible entities will need to preregister with the IRS and then file an IRS Form 990-T for the tax year that the qualifying purchase was made. More information about the preregistration process will be provided by the IRS later this year. Once the required form is filed, the credit will be issued in the form of a direct payment, as though it were a tax refund. The Treasury's announcement in mid -June included proposed regulations implementing the direct pay provision. The proposed regulations were be published on June 21, and the announcement initiated a formal 60-day public comment period. The Treasury welcomes feedback on the proposed regulations through August 14, 2023. Additional Resources • IRS Fact Sheet: Elective Pay Overview • IRS Fact Sheet: State and Local Governments • IRS Fact Sheet: Tax -Exempt Organizations • IRS Fact Sheet: Elective Pay Eligible Tax Credits • Treasury Department Press Release (June 14, 2023) • IRS FAQ: Elective Pay and Transferability • White House Direct Pay Landing Page FAA Opens Public Comment Period on Noise Policy Review As part of the Federal Aviation Administrations (FAA's) ongoing commitment to address aircraft noise, the agency is asking for public comment on its Noise Policy Review (NPR). The agency published a Federal Register Notice (FRN) to solicit comments. The NPR will look at these key items and more based on input received from the public and stakeholders. • The FAA's current use of DNL or Day -Night Average Sound Level as the primary noise metric for assessing cumulative aircraft noise exposure. • If and how alternative noise metrics may be used in lieu of or in addition to DNL to better inform agency decisions and improve FAA's disclosure of noise impacts. • The community's understanding of noise impacts and how to better manage and respond to community's aviation noise concerns. • Ways to improve communications on proposed noise -related agency actions. • The findings from ongoing noise research, including the Neighborhood Environmental Survey and other research related to health impacts, speech interference, sleep disturbance, and economic impacts. 11 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E The FRN comment period deadline is July 31, 2023. To read and comment on the FRN, and to receive more information, click here. FY2024 Federal Appropriations While appropriators in the House had begun mark-ups of their 12 appropriations bills in May, much of the work was paused to finalize a debt ceiling deal with the White House. After much delay, on June 3, President Joe Biden signed into law the bipartisan debt bill, suspending the debt ceiling until January 1, 2025 and averting a first ever national default. Also included in the bill was an agreement on budget levels for Fiscal Years 2024 and 2025. With these levels in place, the House and Senate Appropriations Committees will restart stalled work on their FY24 appropriations bills. The Senate and the House began work again the second week of June. Subcommittee markups are the first step in the approval process, and is the first time the public is able to view the text of the appropriations bills, as well as the list of committee -approved earmarks. Following subcommittee approval, the full Appropriations Committee considers the bill before sending the bill to the full chamber for consideration. As part of the debt ceiling negotiations, a handshake deal was made between Senate Majority Leader Chuck Schumer and Minority Leader Mitch McConnell to move all twelve appropriations bills through the Senate before September 30. In recent years, the Senate has not held votes on their appropriations bills, opting instead to simply negotiate with the House and pass compromise bills largely crafted behind closed doors. The House has a similar goal of moving their twelve appropriations bills before the August recess. Anger over the debt deal among the House Republican Conference's right flank boiled over this week when eleven members voted against a procedural motion to consider unrelated bills, bringing the House floor to a standstill. In exchange for their votes to restart the legislative process the eleven dissidents are reportedly negotiating lower spending levels for the House appropriations bills than were negotiated as part of the debt deal. As a result of Speaker McCarthy's agreement with his hardliners we are told by committee members to expect lower than hoped for funding levels for both earmarks and funding accounts. With the exception of Defense, Veterans, and Homeland Security bills, House appropriators will be slashing funding to comply with the agreement. A full chart of House appropriations allocations is below: Subcommittee 2023 enacted 2024 House Change Percentage level (in plan change millions Agriculture -FDA $25,480 $17,838 $-7,642 -30% Commerce- 82,441 58,676 23,765 -29 Justice -Science Defense 797,736 826,448 28,712 4 Energy and 54,000 52,378 1,622 -3 Water Financial 27,556 11,311 -16,245 -59 Services 12 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E Homeland 60,703 6,2793 2,090 3 Security Interior- 38,850 25,417 -13,433 -35 Environment Labor-HHS- 207,367 147,096 -60,271 -29 Education Legislative 6,900 6,746 -154 -2 Branch Military 154,168 155,701 1,533 1 Construction -VA State and 59,693 41,367 -18,326 -31 Foreign Operations Transportation- 87,332 65,208 -22,124 -25 HUD Total 1,602,226 1,470,979 -131,247 -8 Meanwhile, while House Republicans are negotiating to fund the government at levels below the negotiated levels, Senate Republicans are seeking ways to increase the funding levels, especially for Defense. This dynamic will play out through the summer and fall as House and Senate appropriators and leadership negotiate final spending bills. During the week of June 12, the full House Appropriations Committee approved the FY24 Military Construction -Veterans Affairs bill on a party line vote as well as the FY24 Agriculture -FDA bill. The House Energy and Water Development and Defense Subcommittees also met and approved their respective earmark lists. The Senate held their first markups in the Agriculture and Military, VA Subcommittees. While the Senate started their process a couple weeks after the House, the chair of the Senate Appropriations committee has stated that she is committed to passing all 12 appropriations bills by September. Currently, Congress is in the middle of a two -week recess and will resume session on July 11. It is anticipated that committees in both chambers will continue to meet to approve the remaining funding bills before leaving again for the August recess. 13 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E City of Tustin Priority State Legislation Matrix 2023 California State Legislative Session Updated 7.7.23 Bill Bill Summary Bill Status Position Community Services Status: 6/30/2023- Would update California's 1967 conservatorship law by From committee with SB 43 (Eggman) expanding the definition of "gravely disabled" to include author's amendments. Watch Behavioral Health. conditions that result in a substantial risk of serious harm to an Read second time and individual's physical or mental health. amended. Re -referred to Com. on JUD. SB 363 (Eggman) Status: 6/13/2023- Facilities for From committee: Do Inpatient and pass and re -refer to Residential Mental Would establish a real-time, internet-based dashboard to collect, Com. on APPR. with aggregate, and display information about available beds in recommendation: To Watch Health and psychiatric and substance abuse facilities. consent calendar. Substance Use (Ayes 15. Noes 0.) Disorder: (June 13). Re -referred Database. to Com. on APPR. Page 1 of 20 DocuSign Envelope ID: 63A42991-011354=-A20E-28CA97933E8E Status: 6/28/2023- From committee: Do AB 33 (Bains) pass and re -refer to Fentanyl Addiction Would establish a task force to analyze data on the extent of fentanyl Com. on APPR with Status: 6/7/2023- and Overdose use in California and evaluate approaches to increase public recommendation: To Referred to Com. on Prevention Task awareness. Consent Calendar. PUB S. Force. (Ayes 5. Noes 0.) (June 27). Re -referred to Com. on APPR. SB 19 (Seyarto) Would establish a task force to analyze data on the extent of fentanyl Status: 6/22/2023- Anti-Fentanyl use in California and evaluate approaches to increase public Read second time and Watch amended. Re -referred Abuse Task Force. awareness. to Com. on PUB. S. Page 2 of 20 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E AB 799 (L. Rivas) Status: 7/3/2023-From Homeless committee chair, with Housing, author's amendments: Assistance, and This measure would create new accountability requirements for Amend, and re -refer Prevention local governments accessing state funding through the Homeless to committee. Read Watch Housing, Assistance, and Prevention Program (HHAP). second time, Program: amended, and re - Homelessness referred to Com. on Accountability Act. HOUSING. AB 1215 (Carrillo) Pets Assistance with Support Status: 7/3/2023-In Grant Program: Would create a grant program for homeless and domestic violence committee: Referred Watch Homeless shelters to accommodate pets. to APPR suspense Shelters: Domestic file. Violence Shelters: Pets. Page 3 of 20 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E AB 1321 (Bonta) California Coordinated Would create a competitive grant program to implement a Status: 7/3/2023-In Neighborhood and comprehensive, integrated continuum of cradle -to -career committee: Referred to APPR suspense Watch Community solutions at the neighborhood level. file. Services Grant Program. Status: 7/5/2023-From Would require the State Department of Social Services to establish committee: Do pass AB 262 (Holden) and lead a stakeholder workgroup to gather information and and re -refer to Com. Children's Camps: provide recommendations to the Legislature regarding the on APPR. (Ayes 5. Watch Regulation. development of subsequent legislation for children's camps. Noes 0.) (July 3). Re- referred to Com. on APPR. Public Safety Page 4 of 20 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E AB 1034 (Wilson) Would prohibit a law enforcement agency or law enforcement Law Enforcement: officer from installing, activating, or using any biometric Facial Recognition surveillance system in connection with an officer camera or data Status: 5/24/2023- and Other collected by an officer camera and would authorize a person to Referred to Com. on Watch bring an action for equitable or declaratory relief against a law PUB S. Bi cnce. enforcement agency or officer who violates that prohibition. veill Surveillance. Would sunset on January 1, 2034. Would make it a crime for a person to willfully threaten to commit Status: 6/27/2023- SB 796 (Alvarado- a crime that will result in death or great bodily injury at a June 27 set for first Watch Gil) Threats. particular location or event. hearing canceled at the request of author. Would require the EMS authority to develop an electronic Status: 7/5/2023-From signature for use between the emergency department medical committee chair, with personnel at a receiving facility and the transporting emergency author's amendments: AB 40 (Rodriguez) medical personnel that captures the points in time when the Amend, and re -refer Emergency hospital receives notification of ambulance arrival and when to committee. Read Watch Medical Services. transfer of care is executed for documentation of ambulance second time, patient offload time and would require the authority to develop a amended, and re - statewide standard of 20 minutes, 90% of the time, for ambulance referred to Com. on patient offload time. HEALTH. Environment Page 5 of 20 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E Status: 6/28/2023-In committee: Set, first hearing. Hearing canceled at the request of author. AB 2 (Ward) Would create end -of -life management of photovoltaic modules (or From committee chair, Recycling: Solar solar panels), minimization of hazardous waste, and recovery of with author's Watch Photovoltaic commercially valuable materials. amendments: Amend, Modules. and re -refer to committee. Read second time, amended, and re - referred to Com. on E.Q. Page 6 of 20 DocuSign Envelope ID: 63A42991-011354=-A20E-28CA97933E8E Status: 6/27/2023- From committee chair, with author's AB 573 (E. Garcia) amendments: Amend, Organic Waste This measure intends to support rural and/or border cities with and re -refer to Watch Disposal meeting SB 1383 procurement targets. committee. Read Reduction Targets. second time, amended, and re - referred to Com. on E.Q. AB 863 (Aguiar- Curry) Carpet Recycling: Carpet Would increase the per day penalty for violations of carpet Status: 7/6/2023-Read Stewardship stewardship laws. Would provide that if a carpet stewardship second time and Organizations: organization violates a provision of the carpet stewardship law amended. Re -referred Watch Fines: three times, they become ineligible to act and the successor rules to Com. on APPR. will apply. pp y' Succession: Procedure. Status: 6/28/2023- From committee chair, Summary: Current law requires the Department of Conservation and the State with author's AB 1526 (Asm. Nat Water Resources Control Board to provide to the fiscal and relevant policy amendments: Amend, Resources) Solid committees of the Legislature an annual report regarding certain aspects of the and re -refer to Watch implementation of the Underground Injection Control Program until October 1, 2024. committee. Read Waste. This bill would make these provisions inoperative on October 1, 2029, and would second time, repeal them as of January 1, 2030. amended, and re - referred to Com. on E.Q. SIB 615 (Allen) Would require electric vehicle manufacturers, dealers and other Status: 6/15/2023- Solid Waste: parties to be responsible for making sure lithium -ion vehicle June 20 set for first Watch Lithium Vehicle batteries are recycled and repurposed at the end of their useful hearing canceled at Batteries. life. the request of author. Page 7 of 20 DocuSign Envelope ID: 63A42991-011354=-A20E-28CA97933E8E Status: 7/3/2023-From committee with SIB 707 (Newman) Would require textile producers to establish a stewardship program author's amendments. Watch Textile Recovery. for the collection and recycling of a covered textile product. Read second time and amended. Re -referred to Com. on NAT. RES. Status: 7/3/2023- VOTE: Do pass as AB 50 (Wood) This measure aims to address situation delays with connecting amended, but first Energy Utility projects to the grid, including housing projects. amend, and re -refer to Watch Communication. the Committee on [Appropriations] (PASS) AB 1132 Would extend to 2034 the current limit on permit fees that a city or Status: 6/27/2023- Read second time. (Freidman) Solar county may charge for a residential and commercial solar energy Ordered to third Watch Permit Fees. system. reading. Page 8 of 20 DocuSign Envelope ID: 63A42991-011354=-A20E-28CA97933E8E Status: 6/20/2023- Would require local governments in coastal areas to implement From committee: Do SB 272 (Laird) Sea sea level rise planning and adaptation by 2034. Would also require pass and re -refer to Level Rise the California Coastal Commission and the San Francisco Bay Com. on APPR. (Ayes Watch Planning. Conservation and Development Commission to establish guidelines 10. Noes 1.) (June for the preparation of that planning and adaptation by 2024. 19). Re -referred to Com. on APPR. AB 1567 (E. Would collectively propose $20 billion in bonds for safe drinking Status: 6/14/2023- Garcia), SB 638 water, wildfire prevention, drought preparation, flood protection, Referred to Corns . on Watch (Eggman), and SB and extreme heat mitigation. N.R. & W. and GOV. 867 (Allen) & F. Status: 6/22/2023- From committee with SB 69 (Cortese) Would require local agencies to provide any subsequent revised or author's amendments. Read second time and CEQA Document amended copy of CEQA documents upon request by mail or email amended. Re -referred Watch Requests. and to submit the documents to the state clearinghouse. Would toll to Com. on NAT. RES. the statutes of limitation periods for each document request. June 26 set for first hearing canceled at the request of author. AB 460 (Bauer- Would authorize the State Water Resources Control Board to fine Status: 6/27/2023-In Kahan) State $10,000 for each day in which a violation occurs and $5,000 for committee: Set, first Water Board each acre-foot of water diverted in violation of an interim relief hearing. Hearing Watch Authority. order. canceled at the request of author. Housing Page 9 of 20 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E SB 4 (Wiener) Planning and Zoning: Housing Status: 6/30/2023- Development: Would require that a housing development project be a use by right on Read second time and Higher any land owned by an independent institution of higher education or amended. referred Watch Education religious institution on or before January 1, 2024. N to Com. on NAT. RES. Institutions and Religious Institutions. Would modify and expand SB 35 provisions that allow certain SB 423 (Wiener) multifamily housing developments to take advantage of a streamlined, Streamlined ministerial approval process. Specifically, this measure would: Status: 6/30/2023- Housing • Remove the 2026 sunset and makes the statutes permanent. Read second time and Oppose Unless Approvals: • Apply SB 35 provisions to the Coastal Zone. amended. Re -referred Amended Multifamily • Allow the state to approve housing developments on property they to Com. on NAT. RES. Housing own or lease. Developments. • Prohibit a city from enforcing its inclusionary housing ordinance if the income limits are higher than those in SB 35. SB 34 (Umberg) Prohibits Orange County, or any city located therein, from proceeding with a Surplus land planned disposal of surplus land if it receives a notice of violation from the Status: 6/29/2023- Oppose Unless disposal: Department of Housing and Community Development and the violation is not Assembly Rule 56 Amended violations: Orange corrected within 60 days. suspended.. County. Status: 7/3/2023-From AB 1505 committee chair, with (Rodriguez) Would appropriate $250,000,000 from the General Fund to the California author's amendments: Seismic Residential Mitigation Program, as opposed to in the 2023-2024 Budget Act, for the Amend, and re -refer to committee. Read Support retrofitting:soft purpose of implementing the Seismic Retrofitting Program for Soft Story Multifamily p p p g g g Y Y second time, story multifamily Housing. amended, and re- housing referred to Com. on G.O. Page 10 of 20 DocuSign Envelope ID: 63A42991-011354CM-A20E-28CA97933E8E Would require a city or county to provide, to a 100% affordable housing AB 1490 (Lee) project, the following: Status: 7/6/2023-From Affordable • Approving all entitlements and permits within 30 days or less. committee: Amend, Housing • Waiving local building and permit fees. and do pass as Development • Low-income utility rates shall be available. amended and re -refer Watch • No minimum floor area ratio. to Com. on APPR. Projects: Adaptive . No additional parking requirements. (Ayes 5. Noes 2.) Reuse. • Local affordable housing funds shall include adaptive reuse as an (July 5). eligible project. Status: 7/3/2023-Read AB 480 (Ting) AB 480 makes various changes to the Surplus Land Act regarding the disposal second time and amended. Re -referred Oppose Unless Surplus Land process, HCD's authority, and penalties for violations. Amended to Com. on HOUSING. SB 747 (Caballero) Land Use: This bill makes changes to the Surplus Land Act (SLA) by addressing substantive Status: 6/30/2023- Economic issues with the SLA as it exists today, and reaffirms the role of the Economic Read second time and Support Development, Opportunity Law when local agencies dispose of property. amended. referred H. to Com. on H. & C.D. surplus land Status: 7/3/2023-From AB 519 (Schiavo) Would require the Department of Housing and Community committee chair, with Affordable Development, by July 1, 2024, to establish a workgroup to develop a author's amendments: Housing: consolidated application for the purposes of obtaining grants, loans, A mend, and re -refer A Consolidated tax credits, credit enhancement, and other types of financing for committee. Read Watch Funding building affordable housing, and developing a coordinated review second time, Application process for the application. amended, and re - Process. referred to Com. on HOUSING. Page 11 of 20 DocuSign Envelope ID: 63A42991-011354CM-A20E-28CA97933E8E AB 1657 (Wicks) The Affordable Housing Bond Act of 2024. Would enact The Affordable Housing Bond Act of 2024, which, if adopted, would authorize the issuance of bonds in the yet-todetermined amount pursuant to the State General Obligation Bond Law. Proceeds from the sale of these bonds would be used to finance programs to fund affordable rental housing and homeownership programs. Status: 6/21/2023- From committee: Do pass and re -refer to Com. on GOV. & F. (Ayes 9. Noes 2.) (June 20). Re -referred to Com. on GOV. & F. Watch SB 834 (Portantino) Housing: Would enact the California Family Home Construction and California Family Homeownership Bond Act of 2023, which, if adopted, would authorize Status: 6/8/2023- the issuance of bonds in the amount of $25 billion pursuant to the State Referred to Com. on Watch Home General Obligation Bond Law to finance the California Family Home H. & C.D. Construction and Construction and Homeownership Program. Homeownership Bond Act of 2023. ACA 1 (Aguiar- Curry) Local Government Would authorize a local government to impose, extend, or increase a Financing: sales and use tax or transactions and use tax for the purposes of Status: 5/31/2023-Re- Affordable funding the construction, rehabilitation, or replacement of public referred to Com. on L. Watch Housing infrastructure, affordable housing, or permanent supportive housing if GOV.. the proposition proposing that tax is approved by 55% of its voters and Public voting on the proposition. Infrastructure: Voter Approval. Page 12 of 20 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E Status: 6/7/2023- Coauthors revised. ACA 10 (Haney) Would declare that the state recognizes the fundamental human right From committee: Be adopted, and re -refer Fundamental to adequate housing for everyone in California. Would make it the to Com. on APPR. Re- Watchreferred. Human Right to shared obligation of state and local jurisdictions to respect, protect, (Ayes 6. Housing. and fulfill this right by all appropriate means. Noes 2.) (June 7). Re - referred to Com. on APPR. Transportation AB 6 (Friedman) Would prioritize transportation funding that significantly contribute Status: 6/14/2023- Transportation towards the goals outlined in a region's sustainable communities' Referred to Corns. on Watch Planning. strategy. TRANS. and E.Q. Status: 6/21 /2023- From committee chair, with author's AB 744 (Carrillo) Would authorize the California Transportation Commission to amendments: Amend, Transportation establish best practices for use of data in transportation planning and re -refer to Watch and to identify data elements that should be made available to committee. Read Planning. state and local agencies for transportation planning. second time, amended, and re - referred to Com. on TRANS. Page 13 of 20 DocuSign Envelope ID: 63A42991-011354=-A20E-28CA97933E8E AB 316 (Aguiar- Would prohibit the operation of an autonomous vehicle with a Curry) gross vehicle weight of 10,000 pounds or more on public roads for Status: 6/14/2023- Transportation: testing purposes, transporting goods, or transporting passengers Referred to Com. on Watch Autonomous without a human safety operator physically present in the TRANS. Vehicles. autonomous vehicle at the time of operation. Status: 6/27/2023- From committee: Do SB 30 (Umberg) Would develop and design light -duty zero -emission vehicle pass and re -refer to Transportation: charging and fueling station signage to be placed along state Com. on APPR. with recommendation: To Watch Zero -Emission highways based on charger or fueling type and vehicle consent calendar. Vehicle Signage. compatibility. (Ayes 15. Noes 0.) (June 26). Re -referred to Com. on APPR. Status: 6/29/2023- AB 1637 (Irwin) Would state the intent to require a local jurisdiction to adopt a Read second time and Website Domains. ".gov" domain by 2025. amended. Re -referred Watch to Com. on APPR. (Amended 6/29/2023) AB 400 (Rubio) Would remove the January 1, 2025 sunset for local agencies to Status: 7/5/2023-Read Public Contracts: use design build on specified projects thereby making the second time. Ordered Watch Design Build. authority permanent. to Consent Calendar. SB 706 (Caballero) Would authorize all cities, counties, city and counties, or special Status: 6/28/2023- Public Contracts: districts to use the progressive design -build process for other Read second time and Watch Progressive projects in addition to water -related projects, and would remove amended. Re -referred Design Build. the project cap. to Com. on APPR. Page 14 of 20 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E Status: 7/6/2023-From committee: Do pass AB 334 (Rubio) Would establish that an independent contractor, who meets and re -refer to Com. Public Contracts: specified requirements, is not an officer for purposes of being on APPR with Conflict of subject to the prohibition on being financially interested in a recommendation: To Watch Interests. contract. Consent Calendar. (Ayes 11. Noes 0.) (July 6). Re -referred to Com. on APPR. Taxes AB 52 (Grayson) Sales and Use Tax Law: This measure states the intent of the Legislature to expand the sales Status: 6/26/2023-In Manufacturing and use tax exemption for manufacturing and research and committee: Referred Watch Equipment: development equipment. to APPR. suspense Research and file. Development Equipment. AB 1203 (Bains) Sales and Use Would exempt from the California sales and use tax the gross Status: 7/3/2023-In Taxes: receipts for the sale of breast pumps, breast pump collection and committee: Referred Watch Exemptions: storage supplies, breast pump kits, and breast pads. This exemption to APPR suspense Breast Pumps and would apply on or after January 1, 2024, and ends January 1, 2029. file. Related Supplies. AB 1249 (Ta) Sales Would exempt from sales and use taxes the gross receipts from the Status: 5/1/2023-In and Use Taxes: sale of qualified school supplies for the two-day period beginning committee: Set, final Exemption: Tax at 12:01 a.m. on the third Saturday of July annually and ending at hearing. Held under Watch Holiday: School 11:59 p.m. on the following day. This exemption would apply on or submission. Supplies. after January 1, 2024, and ends January 1, 2029 Page 15 of 20 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E Status: 7/5/2023-From AB 84 (Ward) committee chair, with Property Tax: Would expand eligibility for exemptions from property taxes for author's amendments: Welfare affordable rental housing (e.g., "welfare exemptions"). Specifically, Amend, and re -refer Exemption: would expand this partial exemption to property acquired, to committee. Read Watch Affordable rehabilitated, developed, or operated, or any combination of second time, these factors, with financing from qualified 501(c)(3) bonds amended, and re - Housing. referred to Com. on GOV. & F. Would change the requirements for statements included on local Status: 7/6/2023-From SB 532 (Wiener) ballots regarding the purpose of the measures that are being committee: Do pass and re -refer to Com. Ballot Measures: voted on. For measures that increase a tax with more than one on APPR. (Ayes 10. Watch Local Taxes. rate or authorizes bonds, this measure would require that local "see Re - Noes 4.) (July 5). Re - ballots include the statement voter guide for measure referred to Com. on information statement." APPR. SB 721 (Becker) Would amend the California Government Code to specify that Status: 6/1/2023- Special Taxes: taxes levied on vacant sites by a city, county, or special district are Referred to Com. on Watch Vacant Land. a special tax, for parcels identified in a city's housing element P. & C.P. inventory AB 972 (Maienschein) Uniform Would coordinate, align, and streamline local government Status: 23- Procedures for assistance resources by convening a statewide, cross -agency Read seccondond time ime and Local Assistance Local Assistance and Grant Program Streamlining Workgroup no amended. Re -referred Watch and later than April 2024. to Com. on APPR. (Amended 6/29/2023) Climate Resiliency Grant Programs. Governance and Labor Page 16 of 20 DocuSign Envelope ID: 63A42991-011354=-A20E-28CA97933E8E SB 252 (Gonzalez) Public Retirement Status: 6/8/2023- Systems: Fossil Would require CalPERS to divest from fossil fuels by 2030. Referred to Com. on Watch Fuels: P.E. & R. Divestment. AB 1484 (Zbur) Would require temporary employees to be automatically Status: 6/14/2023- Temporary Public included in the same bargaining unit as the permanent Referred to Com. on Watch Employees. employees upon the request of the recognized employee L., P.E. & R. organization. Status: 6/29/2023- SB 399 (Wahab) Would prohibit an employer from requiring its employees to From committee: Do Employer attend an employer -sponsored meeting or participate in any pass and re -refer to Communications: communications with the employer, the purpose of which is to Com. on JUD. (Ayes Watch communicate the employer's opinion about religious matters, 5. Noes 1.) (June 28). Intimidation. political matters. Re -referred to Com. on JUD. SB 751 (Padilla) Would prohibit a city, county, or city and county from entering an Franchise exclusive franchise agreement for services on or after Status: 6/15/2023- Agreements: January 1, 2024, or an agreement amended on or after that Referred to Com. on Watch date, that contains a force majeure provision that can be NAT. RES. Labor Impasse. triggered by a labor impasse. AB 504 (Reyes) Status: 6/28/2023- State And Local Would allow local public employees to refuse to enter property From committee: Do Public Employees: that is the site of a primary labor dispute, perform work for an pass and re -refer to Labor employer involved in a primary labor dispute, or go through or Com. on JUD. (Ayes Watch work behind a primary picket line. Would prohibit an employer 4. Noes 1.) (June 28). Relations: from directing an employee to take those actions. Re -referred to Com. Disputes. on JUD. Page 17 of 20 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E AB 453 Would require a public hearing concerning district -based Status: 5/10/2023- (Cervantes) elections that is consolidated with a meeting of the governing Referred to Coms. on Watch District -based body include other substantive agenda items, to begin at a fixed E. & C.A. and GOV. & Elections. time. F. Status: 7/6/2023-From AB 764 (Bryan) committee: Do pass Elections: City This measures states the intent of the Legislature to add new to and re -refer to Com. on GOV. & F. (Ayes 6. Watch And County add new requirements to the Fair Maps Acts. Noes 1.) (July 5). Re - Redistricting. referred to Com. on GOV. & F. AB 1248 (Bryan) Status: 7/6/2023-From Local committee: Do pass Redistricting: Would require independent redistricting commissions for cities and re -refer to Com. Independent over 300,000 in population. on GOV. & F. (Ayes 6. Watch Noes 1.) (July 5). Re - Redistricting referred to Com. on Commissions. GOV. & F. AB 557 (Hart) Would allow cities to meet remotely during proclaimed states of Status: 6/29/2023- Open Meetings: emergency under modified Brown Act requirements. Would also Read second time. Watch Local Agencies: provide greater flexibility for agencies that meet on a fixed date Ordered to third Teleconferences. every month by extending the AB 361 renewal period to 45 days. reading. Page 18 of 20 DocuSign Envelope ID: 63A42991-01B5-4C3D-A20E-28CA97933E8E SIB 730 (Lowenthal) California Public Would require a city to promptly provide an employee with Records Act: written notice of a request to disclose a record related to Public Agency personnel, medical, or similar information of that employee. Status: 3/13/2023-Set Watch Employees: Notice Would also require the agency, before disclosing, to provide not for hearing April 17. Requirements: less than 21 days' written notice to the employee of its intent to Personnel And disclose. Medical Information. SIB 251 (Newman) Status: 4/19/2023- Political Reform Would prohibit an elected officer from employment by any other April 18 set for first Act of 1974: elected officer with the same constituency, except if the elected hearing. Failed Elected Officers: officer first began their employment by the other officer with the passage in committee. Watch Conflicts of same constituency on or before December 31, 2023. (Ayes 2. Noes 0.) Reconsideration Interest. granted. AB 37 (Bonta) Status: 7/6/2023-From Political Reform committee: Amend, Act of 1974: Would expand the ability for officials to expend campaign funds and do pass as Campaign Funds: for security expenses. amended and re -refer Watch to Com. on APPR. Security (Ayes 7. Noes 0.) Expenses. (July 5). SIB 769 (Gonzalez) Local Status: 6/22/2023- Government: Would require local officials to have two hours of fiscal training Read second time and Watch Fiscal and every two years amended. Re -referred Financial to Com. on APPR. Training. Page 19 of 20 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E Status: 6/29/2023- SB 329 (Dodd) Approved by the Cities: City Would allow general law cities to increase the council member Governor. Chaptered Watch Council Members: salaries to reflect inflation by Secretary of State. Compensation. Chapter 27, Statutes of 2023. Page 20 of 20 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E CITY OF TUSTIN 2023 LEGISLATIVE PLATFORM The Mayor and City Manager are authorized to submit advocacy letters on behalf of the City if the proposed state or federal legislation clearly follows the City's adopted legislative platform. PURPOSE The City of Tustin's 2023 Legislative Platform confirms the City Council's position on current issues with the potential to directly or indirectly impact the City, thereby establishing guidelines to actively pursue pending legislation through monitoring and communications activities. Below are the Guiding Principles and Policy Statements that will allow City staff to address 2023 legislative and regulatory issues in a timely manner, without precluding the consideration of additional legislative and budget issues that may arise during the legislative session. GUIDING PRINCIPLES PRESERVE LOCAL CONTROL Preserve and protect the City's powers, duties and prerogatives to enact local legislation and policy direction concerning local affairs and oppose legislation that preempts local authority. Local agencies should preserve authority and accountability for land use planning, revenues raised and services provided. PROMOTE FISCAL STABILITY Support measures that promote fiscal stability, predictability, financial independence, and preserve the City's revenue base and maximum local control over local government budgeting. Oppose measures that shift local funds to the County, State or Federal Governments and/or make cities more dependent on the County, State or Federal Governments for financial stability, such as unfunded mandates or mandated costs with no guarantee of local reimbursement or offsetting benefits. III. SUPPORT FUNDING OPPORTUNITIES Support opportunities that allow the City to compete for its fair share of regional, state and federal funding. Support funding for programs including, but not limited to economic development such as infrastructure investment and housing, transportation projects including road resurfacing, bicycle and pedestrian safety, multi -modal transportation systems and transit -oriented development, air quality, water quality and local water reliability, parks and recreation, historic preservation, natural resources, hazard mitigation, public safety, public health and COVID-19 business and government recovery. DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E POLICY STATEMENTS Local Governance 1. Oppose state or federal efforts to "borrow" local revenues and encourage the state to find other methods of balancing its budget. 2. Support local government action, rather than the imposition of state, federal or regional mandates upon local governments, as well as federal mandates placed on the state. 3. Support maximum flexibility for local government in contracting and contract negotiations. 4. Support open government initiatives as well as the principles of the open meetings provisions of the Ralph M. Brown Act at all levels of government. 5. Support legislation that facilitates the flexibility of local governments to share resources to increase efficiencies and decrease costs. 6. Support legislation that preserves the ability of local governments to determine the appropriate type of election and representation for their jurisdiction. 7. Oppose and monitor efforts to increase City contribution cost to CalPERS. 8. Support the reimbursement of local governments for COVID-19 related expenses, including the need for essential public safety service overtime, personal protective equipment, and small business relief. 9. Support and monitor efforts to increase the City's ability to recover payment related fees from customers 10. Support efforts to provide local legislative bodies with additional flexibilities regarding remote meetings and Ralph M. Brown Act requirements. 11. Oppose policies that would increase the voter threshold for local revenue measures or would increase the potential for litigation over local taxes and fees. 12. Oppose efforts to de -localize the redistricting process. Economic Development 13. Support international, statewide, regional, and local efforts to attract, retain and provide resources for current and future commercial and industrial businesses. 14. Support policies and programs that encourage working with other cities, counties and government agencies to jointly leverage resources and assets to create and strengthen economic clusters within the region. 15. Support economic development initiatives that preserve and enhance a positive business climate and maintain and grow the business tax base. E DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E 16. Support policies and initiatives that will facilitate development of City owned property, including Tustin Legacy and Pacific Center East. Oppose policies and initiatives that run counter. Land Use Planning and Housing 17. Oppose legislation, proposals, or regulations that impose regional, state, or federal growth development or land use planning standards within the City without the City's direct input. 18.Oppose legislation, proposals, or regulations that penalize local governments for noncompliance with their housing element or regional housing needs assessment requirements. 19. Support efforts to provide flexibility to local governments as well as resources for local governments to allow them to submit compliant housing elements and complete the required rezoning. 20. Support housing measures that promote the development and enhancement of safe and affordable housing and accessible housing within the City for all economic segments of the population, while still retaining local control. 21. Monitor local, state, and federal actions related to medical and recreational marijuana regulatory changes. 22. Support local control over the licensure and regulation of alcoholism or drug abuse recovery or treatment facilities. 23. Oppose legislation that would erode local control over City owned property, including Tustin Legacy and Pacific Center East. 24. Support proposals that provide funding or tools to preserve historic neighborhoods and structures. 25. Oppose proposals that increase requirements and place undue burdens on the City with regard to the Surplus Land Act and Tustin Legacy. 26. Oppose efforts that require the City to ministerially approve housing development projects without adequate input from local agencies or a robust public engagement process. Parks and Recreation 27. Oppose efforts that erode funding for vital regional and community services that negatively impact Californian's access to parks, open space, bike lanes and bike ways, after school programming, senior services and facilities that promote physical activity and protect natural resources. 28. Support efforts that strengthen policies to fund parks, open space acquisitions, bike lanes, and active transportation opportunities. 3 DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E 29. Promote local agency control over policies that recognize the benefits of parks and recreation facilities. 30. Support efforts to increase funding, accessibility and programs for seniors. Public Works 31. Support increased state and federal funding of transportation improvements with regional or sub -regional benefits for all modes of transportation. 32. Support protection of dedicated transportation -related tax revenues and enhance the ability of local agencies to finance local transportation programs and facilities. 33. Support all efforts to create efficiencies within CEQA. 34. Support measures and reforms which streamline the CEQA process for the development of housing and mixed -use infill projects that support transit. 35. Support legislation that allows local governments to continue to retain full authority to reject projects or to condition project approvals and impose mitigation measures. 36. Support efforts to facilitate public private partnerships to complete development projects. 37. Oppose efforts to remove City representation on regional boards that oversee water, drainage and/or sewage. 38. Support efforts that fund broadband infrastructure. 39. Support efforts that assist the City in meeting its waste and recycling mandates and adding flexibility to comply with state regulations. Water Quality and Water Supply 40. Support and monitor legislation that increases the availability of, and funding for, water conservation, water reuse technologies, water recycling, local water storage and other water supply technologies such as the Groundwater Replenishment System project. 41. Support the enhancement of a reliable and sustainable water supply for California as well as measures that improve water quality in the region. 42. Monitor the development of a state framework for long term water conservation measures. 43. Support policy development, funding and research for water conservation, addressing urban runoff and beach closures and required programs associated with OC NPDES permits. 44. Support efforts to address long term water resiliency and affordability without implementing a statewide water tax. 45. Oppose efforts that restrict or eliminate local permitting and enforcement of water quality measures. n DocuSign Envelope ID: 63A42991 -01 B5-4C3D-A20E-28CA97933E8E 46. Oppose efforts that unilaterally reduces the indoor water use standards without the input of local and regional stakeholders. Human Resources and Risk Management 47. Oppose measures that reduce local control over employee relations issues or mandate new or enhanced local government employee benefits. 48. Support pension reform measures designed to control or decrease employer liability or increase transparency in reporting without imposing undo hardships or administrative burdens on local government. 49. Oppose redundant or unnecessary proposals that require excessive human resources burdens without sufficient reimbursement. Public Safety 50. Support measures that encourage community safety and well-being including those which support state and federal reimbursement of homeland security related expenses. 51. Oppose legislation that places burdensome restrictions on law enforcement and limits their ability to protect public safety. 52. Oppose legislative attempts at early release of incarcerated prisoners and measures that would further de -criminalize non-violent offenses. 53. Support funding for local mitigation related to Proposition 47 and Proposition 57 54. Support initiatives involving county, state, and federal governments to reduce and prevent homelessness in Orange County. 55. Support measures that provide funding and local resources for wildfire fire prevention, suppression, and mitigation. 56. Support local control over adult entertainment facilities, alcohol establishments and properties where illegal drugs are sold. 57. Support local control for the regulation of cultivation, storage, manufacture, transport and use of medicinal and recreational marijuana and monitor legislative and administration activity to create a regulatory structure for medical and adult use. 58. Support legislation increasing resources and local authority for abatement of public vandalism, especially graffiti. 59. Support regional and state proposals to increase funding for locally operated homeless shelters. 60. Oppose efforts to limit the City's ability to enforce parking rules and regulations and recover the costs of doing so. 5 DocuSign Envelope ID: 63A42991-01B5-4C3D-A20E-28CA97933E8E 61. Support efforts that adds de-energization to the list of conditions that constitutes a state and local emergency. 62. Oppose efforts that changes the certification framework for public safety personnel and subjecting the City to additional litigation. 63. Support efforts to address loud noise vehicles by providing public safety officers with resources to enforce state laws and local ordinances. R