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HomeMy WebLinkAbout07 LEGISLATIVE UPDATEDocuSign Envelope ID: AB8635DC-E195-479A-13056-06E08E351C67 ,. AGENDA REPORT s� Agenda Item 7_ Reviewed: DS m5,-W City Manager N/A Finance Director MEETING DATE: OCTOBER 17, 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 October 4. 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 September that is attached to the staff report. Legislative Tracking Matrix Attached is a legislative tracking matrix as of October 4 that tracks bills of interest. Attachments: - TPA September 2023 update - Legislative Matrix as of October 4 - 2023 Legislative Platform DocuSign Envelope ID: AB8635DC-E195-479A-1305B-06ENE351C67 TOWNSEND TPA MEMORANDUM To: City of Tustin From: Townsend Public Affairs Date: October 4, 2023 Subject: September 2023 Monthly Report Overview of the 2023 Legislative Year September 14 marked the final night of the 2023 Legislative Session, constituting the end of the first year of the two-year 2023-24 legislative cycle. The 2023 legislative year featured a number of anomalies, including a record number of freshman legislators, significant leadership changes in both houses, and the highest number of bill introductions in over a decade. In the final week of the Session alone, the Legislature had more than 700 bills that were still active. This set the stage for a frenetic pace of activity, with the Legislature determined to act on a number of consequential policy issues, including behavioral health reform, public safety reforms, conservatorship expansion, and proposed constitutional amendments that would enhance and protect local revenue sources. Nevertheless, the Legislature decided the fate of a number of bills important to local governments in its final days of session. Of the 3,030 bills introduced this year, the Legislature passed close to 1,100 measures. As of October 1, the Governor has signed 209 bills, vetoed 11, and still has 738 bills (excluding proposed constitutional amendments and resolutions that do not require executive action) to consider before the October 14 deadline. During Governor Newsom's first four years in office, he vetoed between 7.9% and 16.5% of the bills sent to his desk each year for action. Governor Newsom's vetoes typically trend with concerns about a lack of state resources to effectively support the implementation of measures. It is anticipated that his vetoing of measures from the 2023 Legislative Session will follow a similar pattern. The end of the 2023 Legislative Session also marked the beginning of Interim Recess. The Legislature will resume the second half of the 2023-24 Legislative Session on January 3, 2024. In the coming months, lawmakers are expected to return to their districts to meet with constituents and local stakeholders, hold staff retreats to determine policy priorities for the next year, and participate in informational hearings in preparation for major policy reforms anticipated next year. Looking forward, there are over 400 measures that did not meet specified deadlines for passage in 2023 and were held as "2-Year Bills." These measures will be eligible for consideration in January of 2024 and may be re -integrated into the legislative process along with other measures introduced at the beginning of the new session. (J Page 1 DocuSign Envelope ID: AB8635DC-E195-479A-B05B-06EO8E351C67 Below is an overview of a few of the bills the Legislature has passed onto the Governor's desk for final consideration, organized by issue area: Behavioral Health Reform This year, Governor Newsom and Legislative Leaders made overhauling the State's existing behavioral healthcare infrastructure a top priority. The Behavioral Health Reform Package, comprised of the Mental Health Services Act (MHSA) policy reforms contained within SB 326 (Eggman) and the $6.38 billion bond proposal to support residential care facility construction contained within AB 531 (Irwin), passed the Legislature in the final days of Session and will appear on the March Primary ballot. SB 326 includes amendments to the MHSA originally passed by the voters nearly 20 years ago. The changes proposed in SB 326 would have a considerable and long-term impact on how funds are allocated to support the provision of behavioral health services in communities, by prioritizing spending on housing solutions and expanding the pool of individuals eligible for services to include substance use disorders as qualifying criteria. AB 531, if approved by the voters at the March 5, 2024, statewide primary election, authorizes the issuance of $6.38 billion in general obligation bonds to finance loans or grants for the acquisition of capital assets for the conversion, rehabilitation, or new construction of permanent supportive housing and behavioral health infrastructure. The bill specifies $1.5 billion of the total to be awarded specifically to cities, counties, and tribes for programs across the continuum of behavioral health treatment resources. The measure also includes language to streamline the development of behavioral health infrastructure via a by -right process. In addition to the behavioral health reform package headed for the ballot, the Legislature considered reforms introduced by Senator Eggman to expand the definition of "gravely disabled" under the state's conservatorship process and improve data collection requirements to better track the use and need of the state's behavioral health supportive resources. Ultimately, SB 43 (Eggman), which expands the definition of "gravely disabled," for purposes of involuntarily detaining to include a severe substance use disorder or mental health disorder and is unable to additionally provide for personal safety or necessary medical care, passed the Legislature after undergoing numerous iterations of amendments and is pending action from the Governor. SB 363 (Eggman), which would have required various agencies to develop a real-time, internet- based database to collect, aggregate, and display information about beds in specified facilities to identify the availability of inpatient and residential mental health needs and usage, was ultimately held in the Assembly Appropriations Committee. Brown Act Reform Following the COVID-19 pandemic and the expanded use of remote teleconferencing capabilities, the Legislature once again introduced several measures that sought to build upon existing Brown Act flexibilities for local agencies. Measures introduced included AB 817 (Pacheco), which allows a subsidiary body of a local agency to use teleconferencing for its meetings without posting agendas at each teleconference location, identifying each teleconference location in the notice and agenda, making each teleconference location accessible to the public, and requiring at least a quorum of the subsidiary body to participate from within the local agency's jurisdiction, subject (� Page 2 DocuSign Envelope ID: AB8635DC-E 1 95-479A-BO5B-06EO8E351 C67 to certain conditions. Ultimately, this bill was made into a 2-year measure and can be acted upon in 2024. This can be partially attributed to concerns expressed by Local Government Committee chairs, who thought additional flexibilities could have unintended consequences, such as certain local officials opting to utilize teleconferencing instead of in -person appearances and interactions with constituents. In addition to AB 817, the Legislature considered AB 557 (Hart), which eliminates the sunset date on provisions of law allowing local agencies to use teleconferencing without complying with specified Ralph M. Brown Act (Brown Act) requirements during a proclaimed state of emergency. This measure was passed by the Legislature and is pending final action from the Governor. If signed into law, the bill allows local agencies to automatically go back into pandemic -style teleconferencing whenever there is a state of emergency that necessitates social distancing. Additionally, it extends the timeframe by which local governing bodies need to re -certify a state of emergency teleconferencing need, which used to be every 30 days. The bill would extend that to 45 days to minimize the instances where local agencies have to call special meetings just to recertify. Given the recent leadership changes and the appointment of a new Assembly Local Government Committee Chair, it is likely that Brown Act reform measures will continue to be considered and could have alternative outcomes depending on the priorities and decisions of leadership. Budget This year's budget process was marred with uncertainty. Throughout the numerous budget proposals and revisions, the Administration and various watchdog agencies iterated concerns about a potential $30+ billion deficit, which was compounded by an unprecedented tax return delay in response to the severe winter storms in January. In accordance with constitutional deadlines, Governor Newsom signed the 2023 Budget Act, SB 101, into law, which reflected a $310.8 billion spending plan for the 2023-24 fiscal year. The agreement also closes an estimated $32 billion budget deficit while setting aside about $37.8 billion in reserves. In his budget presentation, the Governor emphasized that his Administration is not modeling for an impending recession, but is taking into account the potential for a "mild recession" in the coming years which could further impact the budget to the tune of an additional $40 billion. He stressed the need to maintain and expand reserve resources. Further, the budget agreement included various spending cuts by pulling back on unallocated one-time spending funds, shifting to future bonds, and instituting funding delays. During budget negotiations with legislative leaders, the Governor pushed forward 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 the Governor conceding 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 have mostly stabilized from budget amounts in the past few years. Since the passage of the Budget Act, the Legislature considered and voted on two additional budget "clean-up" packages to make technical spending revisions and budget for additional programs. It is likely that next year's budget agreement will include careful spending practices to offset any lingering deficit impacts. (% Page 3 DocuSign Envelope ID: AB8635DC-E195-479A-B05B-06EO8E351C67 California Environmental Quality Act (CEQA) Reform During the Legislative Session, a series of bills pertaining to the California Environmental Quality Act (CEQA) generated significant controversy. CEQA requires state and local government agencies to inform decision -makers and the public about the potential environmental impacts of proposed changes to the physical environment and to reduce those environmental impacts to the extent feasible. In the final weeks before the constitutional budget deadline, Governor Newsom pushed forward a comprehensive CEQA reform package for large infrastructure projects in an attempt to position the state to receive billions of federal funding for solar and wind facilities, reservoirs, bridges, railways, and similar energy, water, and transportation projects. The new laws take aim at environmental policies that shape how state agencies approve large projects. For instance, numerous large-scale water storage and conveyance projects have been stalled for years as they undergo environmental reviews and engineering planning. At the center of the Governor's CEQA reform package is SB 149, which sets a 270-day limit for concluding CEQA lawsuits that challenge water, energy, transportation, and semiconductor projects. In addition to statewide CEQA reforms for large-scale projects, the Legislature passed several bills that reform CEQA practices for smaller -scale developments, including housing projects. These include AB 1633 (Ting), which strengthens the state's Housing Accountability Act (HAA) to prohibit local agencies from delaying a housing development under CEQA concerns if all legal requirements have been met. The measure was introduced in response to an incident that occurred within the Assembly Member's district, wherein the San Francisco Board of Supervisors overturned the Planning Commission's approval of a 500-unit project located at 469 Stevenson Street, a site near transit identified as a priority for development under the region's climate plan. Housing supporters claim the city acted in bad faith under the guise of needing further environmental study, providing no clear direction on how to bring the plans into compliance. This measure is pending action from the Governor. Further, the Legislature aimed at addressing recent CEQA court decisions around noise pollution. Earlier this year, a state appellate court blocked a proposed housing development for 1,100 UC Berkeley students, partly on the grounds that CEQA requires the university to study and mitigate the potential "noise impacts from loud student parties." This decision constituted a major expansion of CEQA law and was ultimately applied to a second housing development in Los Angeles, which included the construction of a private developer's housing project with 100 5- bedroom units near the University of Southern California. The court sided with neighborhood groups who argued that the student tenants they expect to occupy the project would likely party on the rooftop decks, creating "significant noise impacts" and thus required careful study under the state's signature environmental law. In response to these cases, Assembly Member and Housing Chair Buffy Wicks introduced AB 1307, which provides that the effects of noise generated by occupants and guests on human beings is not a significant effect on the environment, thus invalidating the recent court decisions. The Governor signed AB 1307 into law on September 7. Due to the inclusion of an urgency clause, the measure became effective immediately upon signature. Fentanyl Overdose Prevention With a growing number of fentanyl-related fatalities in California, opioid overdose prevention (� Page 4 DocuSign Envelope ID: AB8635DC-E195-479A-B05B-06EO8E351C67 emerged as a prominent focal point within the legislative agenda during this year's Session. Given the prevailing statistical trends and the pervasive nature of this crisis across both the state and the nation, Legislators introduced a plethora of legislative initiatives aimed at mitigating the impacts of the epidemic. According to the California Department of Public Health, between 2019 and 2021, California's opioid-related deaths spiked by 121 %. A majority of these deaths were linked to fentanyl, an extremely potent synthetic opioid. Legislation that passed both house floors moved to establish special task forces to fight opioid overdoses, provide fentanyl test strips in California Community Colleges and CSUs, and weigh existing sentencing enhancements for penalties associated with trafficking and furnishing substances. Measures that were unsuccessful this year included provisions for incarceration enhancement that ultimately sought to add to the state's penal code. Measures that made it to the Governor's Desk include AB 33 (Bains), which establishes the Fentanyl Misuse and Overdose Prevention Task Force to undertake specified duties relating to fentanyl abuse, AB 461 (Ramos), which requires the governing board of each community college district (CCD) and the Trustees of the California State University (CSU) to provide information about the use and location of fentanyl test strips as part of established campus orientations, and AB 701 (Villapudua), which applies the existing weight enhancements that increase the penalty and fine for trafficking substances containing heroin and cocaine to fentanyl. Measures that were unsuccessful this year include fentanyl and opioid legislation with sentencing enhancements provisions. They were intentionally held in the Assembly Public Safety Committee, as a majority of Committee members voiced concerns about adding to the state's penal code and the unintended impacts on minority communities and the state's legal system. Legislation that was ultimately held included AB 367 (Maienschein), which adds sentencing enhancements for those who seriously injure or kill through fentanyl poisoning, AB 955 (Petrie -Norris) which increases penalties for dealers who sell fentanyl over social media, and AB 1058 (Patterson) which increases penalties for those possessing a large amount of fentanyl. In May 2023, the Assembly Health and Public Safety Committees met with the newly -formed Assembly Select Committee on Fentanyl, Opioid Addiction, and Prevention for an informational hearing that lasted over five hours, hearing testimony from experts, officials, and families affected by fentanyl. Lawmakers committed to studying proposed measures to address fentanyl public safety reforms over the interim recess and hold additional fentanyl-specific committee hearings to continue legislative conversations. Firearm Reform This year, the Legislatures introduced a multitude of firearm control reform bills in response to the incidents of gun violence and mass shootings that have occurred within both the state and the nation. In August 2023, a joint resolution (SJR 7) was introduced in the California Legislature by Senator Aisha Wahab and Assemblymember Reggie Jones -Sawyer. SJR 7 is Governor Newsom's proposal for a "Right to Safety", which proposes an amendment to the United States Constitution to ensure the people's elected representatives can determine what gun safety laws are appropriate for their communities and to enshrine fundamental, broadly supported gun safety measures into law. Specifically, SJR 7 requests Congress to call for a constitutional convention to propose a constitutional amendment affirming that federal, state, and local governments may adopt firearms (J Page 5 DocuSign Envelope ID: AB8635DC-E195-479A-1305B-06EME351C67 regulations consistent with the Second Amendment, or impose national firearm regulations related to background checks, assault weapons, age limits, and waiting periods. For the proposed constitutional amendment to be considered by Congress, legislatures in two-thirds of the states must vote in favor of a constitutional convention. If this is accomplished, and a convention is called, it is unlikely that the Constitutional Amendment will pass the three -fourths vote required, as Republicans currently control more than half of state legislatures, some of which have recently reduced gun restrictions. Another major firearm reform bill introduced this year was SB 2 by Senator Anthony Portantino. SB 2 restructures and recasts provisions of law related to carrying concealed firearms and concealed carry licenses (CCWs) in response to a recent United States Supreme Court decision invalidating a concealed carry law in New York similar to California's. Specifically, SB 2 aims to balance compliance with the Supreme Court's decision in New York State Rifle & Pistol Assn. vs. Bruen with stringent limitations on who can obtain a concealed -carry permit in California. SB 2 was signed by the Governor on September 26 and faces potential legal challenges that could reach the U.S. Supreme Court. Housinq and Land Use This year's Session ended with the passage of several notable land use reform measures. Two pieces of notable legislation were introduced by Senator Wiener, including SB 4 which requires a housing development project to be a "use by right" on land owned by an independent institution of higher education or a religious institution, and SB 423, which extends the sunset on SB 35 (Wiener, Chapter 366, Statutes of 2017) to January 1, 2036, makes various changes to labor requirements, and removes the categorical exemption of coastal parcels for streamlining, subject to certain conditions. Senate Bill 423 extends a decades -long state housing law set which is to expire in 2026. Current state housing laws grant developers the authority to bypass a substantial portion of bureaucratic procedures, frequently attributed to hindering the progression of multifamily construction projects. This exemption, however, applies exclusively to municipalities that have not yet met the state's housing targets. Initially, SB 423 faced controversy and backlash from labor unions. While SB 423 requires housing developers to provide wages at union standards and limited healthcare benefits, concerns have been raised by the Trades Council and numerous local and state labor organizations regarding doubts over the sufficiency of these provisions in adequately protecting the welfare of construction workers. To address those concerns, amendments were added to SB 423 that strengthened labor regulations on certain projects. Currently, SB 4 and SB 423 are pending final action from the Governor. Labor Relations Given that labor constitutes one of the most powerful lobbying groups in California, it came as no surprise that the Legislature considered and passed a number of transformative measures relating to labor and employment. One of the more high -profile pieces of legislation was a last-minute compromise deal on fast food workers that enacts a $20 minimum wage for covered workers in exchange for the withdrawal of a pending referendum on landmark legislation enacted last year (AB 257) to establish a powerful Fast Food Council. (J Page 6 DocuSign Envelope ID: AB8635DC-E195-479A-1305B-06ENE351C67 AB 1228 (Holden) represents a compromise between Governor Newsom, labor unions, and some fast-food industry participants, and would apply to fast food restaurants (and their employees) that are part of a national food chain of more than sixty establishments. The measure also preempts any local government from establishing higher minimum wages by prohibiting any ordinance or regulation applicable to fast food restaurant employees. On September 29 Governor Newsom signed AB 1228 into law. This measure is complementary to a similar measure designed to reform minimum wage standards for healthcare workers, which passed in a similar compromising fashion. SB 525 (Durazo) would enact a series of minimum wage requirements that vary by type of healthcare employer. In exchange, local healthcare worker minimum wage ordinances would be overridden, similar to the language included in AB 1228. In addition, media reports indicate that as part of this compromise, labor groups have agreed to a moratorium on legislation and/or ballot measures aimed at dialysis clinics. The Governor signed AB 1228 into law on September 28, and is currently pending action on SB 525. Other notable labor bills include AB 1484 (Zbur), which amends the Meyers-Milias-Brown Act to require the inclusion of temporary employees in the same bargaining unit as permanent employees. AB 1484 is currently pending final action from the Governor. Yet another major labor reform measure acted upon this year was SB 799 (Portantino), which provides that an employee would be eligible to receive unemployment after the first two weeks of a trade dispute. This measure was introduced in light of the significant labor activity and strikes occurring in Hollywood and elsewhere throughout the state. A similar measure was last proposed in 2019 but failed on the floor by two votes. Interestingly, when the proposal was last attempted the state's unemployment fund had a $3 billion surplus. Currently, the state has an $18 billion deficit. If SB 799 is signed, all employers (even those without striking workers) may pay higher taxes until the deficit is paid down. The Governor vetoed SB 799 on September 30, citing that although he has, "Deep appreciation and respect for workers who fight for their rights and come together in collective action [... ] Any expansion of eligibility for UI benefits could increase California's outstanding federal UI debt projected to be nearly $20 billion by the end of the year and could jeopardize California's Benefit Cost Ratio add -on waiver application, significantly increasing taxes on employers. Furthermore, the state is responsible for the interest payments on the federal UI loan and to date has paid $362.7 million in interest with another $302 million due this month". Revenue and Taxation Late into the final night of the Session, ACA 1 (Aguiar-Curry) and ACA 13 (Ward) passed the second house floor, both of which constitute major reforms to protect and enhance local revenue - generating tools. Because these measures propose amendments to the California Constitution, they will face consideration from the voters at the November 2024 General Election. ACA 1 allows voters to decide whether a 55% threshold for approving special taxes or incurring bonded indebtedness to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure or affordable housing projects is an appropriate standard. 2023 marked the fifth year Assembly Member Aguiar-Curry attempted to move the measure forward. The legislation took numerous iterations of amendments, including language that limits the number of propositions authorized by the measure a local government can place on the ballot until all funds from a proposition have been committed, along with other transparency requirements. (% Page 7 DocuSign Envelope ID: AB8635DC-E 1 95-479A-BO5B-06EO8E351 C67 ACA 13 requires an initiative constitutional amendment to comply with any increased voter approval threshold that it seeks to impose on future ballot measures. Additionally, ACA 13 guarantees in the state constitution the ability of local governments to submit advisory questions to voters. The most recent amendments specify that the measure's voter threshold requirement would "apply to statewide initiative measures that appear on the ballot on or after January 1, 2024. ACA 13 was introduced in response to the Taxpayer Protection and Government Accountability Act, which seeks to raise vote threshold requirements for the passage of state and local tax measures and imposes a stringent burden of proof standard that local governing bodies must meet when modifying or increasing all taxes and fees by justifying their use, need, and duration. The measure has qualified for the November 2024 ballot and is sponsored by the California Business Round Table and its affiliates. If enacted by voters, it would make it extremely difficult for local governments to maintain existing tax revenues and modify them in the future. After the bill was approved by the Assembly on the final night of the session, Assembly Member Ward and Assembly Leadership announced that they would be holding ACA 13 at the Assembly Desk until November 1st (2023) and would then process the measure. While this may seem like a minor processing item, the practical effect is that ACA 13 will not be processed in time to be placed on the March 2024 primary election ballot but will instead be placed on the November 2024 general election ballot. ACA 13 contains language that states its provisions apply to initiatives that appear on the same ballot, so if ACA 13 passes on the November 2024 ballot, its provisions would apply to initiatives on that same ballot, such as the Taxpayer Protection and Government Accountability Act. It is possible that the Legislature will continue to negotiate with the California Business Round Table to reach a compromise in advance of next year's November General Election. If that compromise requires legislative action, the Legislature will have until June 2024 to approve a new measure. Transportation Like many other issue areas, one of the biggest challenges of the year for transportation was funding. The FY 2021-22 Budget Act included $3.65 billion from the General Fund for transit capital projects, and also included a legislative "goal" to appropriate $2 billion for transit in FY 2023. Despite the Legislature's stated intention, Governor Newsom only included $1 billion in his proposed 2023-24 budget as the specter of a budget shortfall loomed large. However, through significant Legislative pressure and in the face of a statewide transit fiscal crisis, the final negotiated budget included $2 billion for transit operating or capital and $410 million for a newly created Zero -Emission Transit Capital Program. The funding did not come for free, as several additional reporting requirements and accountability measures were included in SB 125, the transportation budget trailer bill. Specifically, SB 125 requires CaISTA to establish a "Transit Transformation Task Force" to solicit and develop a structured, coordinated process for engagement of all parties to develop policy recommendations to grow transit ridership and improve the transit experience for all users. The task force is to include a detailed analysis of specific issues and recommendations, including reforming the Transportation Development Act. (� Page 8 DocuSign Envelope ID: AB8635DC-E195-479A-1305B-06ENE351C67 To further assist in addressing the transit operations deficit in the Bay Area, Senator Wiener introduced SIB 532 which would have increased the toll rate for vehicles for crossing the state- owned toll bridges in the San Francisco Bay area by $1.50 and redirected the additional revenue to transit operators. This bill passed out of the Assembly Appropriations Committee but was pulled from the Assembly Appropriations Committee agenda by the author as he struggled to secure the support he needed to move the measure forward. After years of failure, proponents of speed enforcement cameras finally passed AB 645 (Friedman) authorizing an automated camera speed enforcement pilot program in the Cities of Los Angeles, Long Beach, San Francisco, Oakland, Glendale and San Jose. The cameras, whose use must be authorized in a public meeting, may be used for up to five years and can only be placed in school zones, safety corridors, and streets with a high number of incidents of speed contests or exhibitions of speed. Revenues beyond the administration of the pilot can only be spent on traffic calming measures within the respective jurisdictions. AB 645 is currently pending final action by the Governor. Finally, Assembly Member Reyes was able to successfully send AB 126 to the Governor's Desk, extending various fees originally established in 2004 and 2007 which fund several Clean Transportation Programs that were set to expire at the end of 2023. Specifically, AB 126 extended revenue streams such as smog abatement fees, vehicle registration fees, and certain specialized license plate fees to fund programs like the Carl Moyer Program, the Air Quality Improvement Program, and the Enhanced Fleet Modernization Program. It looked like this bill would not make it out of the Legislature before end of session, having stalled during budget talks in June, but was revived in the last week of session and pushed through on the last day before fall recess began. This measure is currently pending final action by the Governor. Water Water policy continues to be a major legislative focus of the California Legislature every year regardless of statewide drought conditions. The adopted FY 2023-2024 Budget maintained $8.1 billion in allocated funding from previous Budgets for drought resilience and response programs to help communities and fish and wildlife avoid immediate impacts from extreme drought, while advancing projects and programs that will improve the State's resilience to future droughts and floods. Additional consideration and efforts were made to bolster the State's spending on drought and flood prevention through work on proposed bonds that aim to address climate priorities. The Senate and Assembly both worked to advance conversations around potential climate bonds with the hope of negotiating a deal for the November 2024 ballot. Funding categories for a proposed climate bond are anticipated to include water recycling, flood protection, clean energy, wildfire mitigation, coastal resiliency, and protection of agricultural resources. Headlining the year's legislative agenda was a package of bills aimed at addressing the State's outdated and complex water rights system. Assembly Member Rebecca Bauer-Kahan's AB 460 and Assembly Member Wick's AB 1337 both proposed to increase the State Water Resources Control Board's authority to order diversion curtailments to all water rights holders, regardless of how old. These bills signaled a willingness of some individuals in the Legislature to change decades -old policies that afford different curtailment policies and procedures to pre-1914 water rights holders. AB 460 and AB 1337 were both held for the year and will be the subject of negotiations when the Legislature returns in January 2024. (J Page 9 DocuSign Envelope ID: AB8635DC-E195-479A-1305B-06ENE351C67 Other topics of consideration this year that were successful in reaching the Governor's desk include additional perfluoroalkyl and polyfluoroalkyl substances (PFAS) source control measures, exemptions for Medium- and Heavy -Duty Zero -Emission Vehicle Fleet Purchasing for water and wastewater utilities, and a directive to eliminate non-functional turf irrigation with potable water. Leadership Changes As the Legislature's Interim Recess began in September, the 2023 Legislative Session served as a major year for legislative leadership changes, which included transitions of power from former Assembly Speaker Anthony Rendon and former Senate President Pro Tempore Toni Atkins. These changes were only accentuated by the record number of new state legislators — over a quarter of which took the oath of office for the first time last year. Following nearly a year -long transition, 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. Following this transition, the new Assembly Speaker Rivas announced his appointments for Speaker Pro Tem and Assembly Majority Leader. Assembly Member Cecilia Aguiar-Curry will assume the role of Speaker Pro Tem, and Assembly Member Isaac Bryan will be the new Majority Leader for the 62-member Democratic caucus. It is expected that Speaker Rivas will make additional changes to Assembly policy committee chairs, which are likely to include high -profile committees overseeing issues like the state budget, appropriations, housing, and transportation. In addition to the Assembly Speakership transition, Senate President Pro Tempore Toni Atkins announced during the final month of Session an agreement to transition Senator Mike McGuire into the Pro Tem position, with a final vote and ceremony to occur in early 2024. Senator McGuire was integral to several legislative victories, including the 2022 climate package and the infrastructure streamlining package negotiated alongside this year's state budget. It is anticipated that leadership changes as well as new Committee seats will be announced next year after the Pro Tem transition. Due to term limits, Senator McGuire is eligible to serve as Senate President Pro Tem in the California Senate until 2026, an intentional move to toe the line between progressives and moderates until a more permanent Speakership transition deal is reached. "Taxpayer Protection and Government Accountability Act" Initiative Challenged in Court On September 26, Governor Newsom, the Legislature, and voter John Burton filed an emergency petition with the California Supreme Court on Tuesday seeking to remove the "Taxpayer Protection and Government Accountability Act" initiative from the November 2024 Ballot. The Act, sponsored by the California Business Roundtable (CBRT) and its affiliates, seeks to raise voter thresholds to pass state and local taxes and requires local governments to provide a high standard of proof justifying the use, duration, and need for taxes and fees. If passed by voters, the Act would apply to any tax and certain fees adopted after Jan. 1, 2022. Local governments would have one year to ask voters to reapprove those taxes. The Act also imposes new requirements for the ballot materials used to submit taxes to voters. Passage of the Act would (� Page 10 DocuSign Envelope ID: AB8635DC-E195-479A-B05B-06EO8E351C67 result in the loss of billions of dollars annually in critical state and local funding, restricting the ability of local agencies and the State's ability to fund specific services and infrastructure. The Legislature and Governor argue that the proposed ballot initiative unlawfully revises the state constitution and upends essential state and local government functions, such as the ability to "impose" rather than "propose" tax initiatives required to maintain basic government activities. A petition for a Writ of Mandate in this circumstance is used to question the validity of an initiative before it is considered by voters. Overall, it signals the desire from the Legislature and executive branch to take any actions necessary to stop the harmful measure from becoming law. State Insurance Commissioner Initiates Regulatory Process for Wildfire Home Insurance In the final days of the 2023 Legislative Session, it was rumored that the Governor and lawmakers representing fire -prone areas were working on a legislative deal that could let insurance rates go up in an attempt to get insurers to come back to California. Earlier this year, insurance giants State Farm and Allstate announced they would no longer offer new policies due to climate change - fueled disasters and high building costs. Since 2017, the largest and deadliest wildfires to happen in state history have destroyed more than 50,000 homes, buildings, and other structures in California. A state -run pool that serves as the insurer of last resort for many could face pressure as enrollments surge. The state pool — the California Fair Access to Insurance Requirements (FAIR) Plan — provides basic fire insurance coverage for properties in high -risk areas when traditional insurance companies will not. Enrollments have jumped in recent years to 272,846 homes in 2022. All in all, these circumstances led to a push from insurance regulators and lawmakers to act before the start of next year's fire season. While the efforts did not result in a legislative proposal before the end of the Session, on September 21, Governor Newsom issued an Executive Order urging Insurance Commissioner Ricardo Lara to take swift action to address issues with the insurance market and expand coverage options for consumers, while maintaining consumer protections and keeping plans affordable. Later that afternoon, Insurance Commissioner Lara announced a set of new rate -setting regulations. Under the terms of the agreement, insurance companies that want to operate in California will be required to increase their presence in disaster -prone areas to at least 85 percent of their market share elsewhere in the state when they file to update their rates. For instance, if an insurance company provides 10% of the homeowner policies across California, they would be required to provide 8.5% of the coverage in areas deemed "at -risk". They will also have to bring on policyholders from the state's FAIR Plan, thus skirting the insolvency of the fund. In exchange, insurance companies will be allowed to use forward -looking catastrophe modeling when they set their rates, models that consumer advocates have objected to in prior negotiations on the grounds that they will lead to higher insurance costs tied to increasing wildfire risk. Companies may also be allowed to incorporate the costs they pay for reinsurance in California, to hedge against their own risk, in the rates they charge. The proposed regulatory framework is still in its fledgling stage and will require a transparent rulemaking and public comment process. It is likely that legislators will introduce legislation addressing the issue during the 2024 legislative session that compliments the regulatory actions, (% Page 11 DocuSign Envelope ID: AB8635DC-E195-479A-1305B-06EO8E351C67 such as requiring insurance companies to use a transparent and uniform catastrophe modeling tool in order to calculate risk. FHWA Releases Safe System Approach for Speed Management Report In honor of Pedestrian Safety Month, the Federal Highway Administration (FHWA) released the report, "Safe System Approach for Speed Management." The report helps practitioners link speed management to the Safe System Approach and creates a vision for speed management for all road users, including pedestrians and bicyclists. A five -stage framework toward this goal includes establishing a vision and building consensus for speed management; collecting and analyzing speed and safety data; prioritizing locations for speed management proactively; selecting speed management countermeasures; and conducting ongoing monitoring, evaluation, and adjustment. Case studies and other examples in the report demonstrate the value of the Safe System Approach, along with key themes gathered from international and domestic documents and interviews. Governor Newsom Signs Executive Order to Prepare California for the Progress of Artificial Intelligence California is the epicenter of generative artificial intelligence (GenAl), which holds the potential to reshape the world. On September 6, Governor Newsom issued an Executive Order to outline California's measured approach that focuses on shaping the future of ethical, transparent, and trustworthy Al, while remaining the world's Al leader. The Executive Order contains the following provisions: Risk -Analysis Report: Directs state agencies and departments to perform a joint risk analysis of potential threats to and vulnerabilities of California's critical energy infrastructure by using GenAl. Procurement Blueprint: To support a safe, ethical, and responsible innovation ecosystem inside state government, agencies will issue general guidelines for public sector procurement, uses, and required training for the application of GenAl — building on the White House's Blueprint for an Al Bill of Rights and the National Institute for Science and Technology's Al Risk Management Framework. State agencies and departments will consider procurement and enterprise use opportunities where GenAl can improve the efficiency, effectiveness, accessibility, and equity of government operations. • Beneficial Uses of GenAl Report: Direct state agencies and departments to develop a report examining the most significant and beneficial uses of GenAl in the state. The report will also explain the potential harms and risks for communities, government, and state government workers. • Deployment and Analysis Framework: Develop guidelines for agencies and departments to analyze the impact that adopting GenAl tools may have on vulnerable communities. The state will establish the infrastructure needed to conduct pilots of GenAl projects, including California Department of Technology approved environments or "sandboxes" to test such projects. (� Page 12 DocuSign Envelope ID: AB8635DC-E195-479A-1305B-06ENE351C67 • State Employee Training: To support California's state government workforce and prepare for the next generation of skills needed to thrive in the GenAl economy, agencies will provide training for state government workers to use state -approved GenAl to achieve equitable outcomes, and will establish criteria to evaluate the impact of GenAl to the state government workforce. • GenAl Partnership and Symposium: Establish a formal partnership with the University of California, Berkeley, and Stanford University to consider and evaluate the impacts of GenAl on California and what efforts the state should undertake to advance its leadership in this industry. The state and the institutions will develop and host a joint summit in 2024 to engage in meaningful discussions about the impacts of GenAl on California and its workforce. • Legislative Engagement: Engage with Legislative partners and key stakeholders in a formal process to develop policy recommendations for the responsible use of Al, including any guidelines, criteria, reports, and/or training. • Evaluate Impacts of Al on an Ongoing Basis: Periodically evaluate for potential impact of GenAl on regulatory issues under the respective agency, department, or board's authority and recommend necessary updates as a result of this evolving technology. The Senate resumed session during the first week of September, and the House returned on September 12. Within the last few weeks of September, the two chambers faced coming to an agreement on government funding before the current budget agreement lapsed on September 30. To avoid a shutdown, Congress approved a stopgap funding measure through November 17. Congress Averts Government Shutdown, Passes Short-term Extension of Federal Funding Defying conventional wisdom, Congress averted a shutdown on September 30 by approving a stopgap funding measure through November 17. The continuing resolution (CR) funds the government at existing Fiscal Year 2023 levels for the next seven weeks, buying Congress more time to negotiate new funding levels for Fiscal Year 2024. If Congress is unable to pass funding legislation before November 14, the federal government will experience a lapse in appropriations. This phenomenon, commonly known as a government shutdown, can have wide-ranging impacts due to the interruption of key federal services. The potential impacts of a government shutdown are contingent on many factors, making exact impacts difficult to predict. The next weeks leading up to the new funding deadline will be dramatic ones. Speaker Kevin McCarthy needed to rely on the support of more Democrats than Republicans to get the CR out of the House. This angered several of his most ardent detractors on the Right who have vowed to try and oust McCarthy from the Speakership. The recent fight over government funding has laid bare the fact that Speaker McCarthy does not control a governing majority in the House. This dynamic, and growing mistrust among House members will shape the coming debate on government funding for the rest of FY24. (� Page 13 DocuSign Envelope ID: AB8635DC-E195-479A-1305B-06ENE351C67 The seven -week stopgap may have kept the lights on for now, but it does nothing to resolve the larger fights over full FY24 funding. The House canceled its planned two -week recess in October and will spend the rest of the month working on their remaining FY24 appropriations bills. The Senate's agenda is a little less certain. Majority Leader Chuck Schumer had brought up three of the Senate's appropriations bills for debate in September only to have them filibustered for more than two weeks before pivoting to work on their own version of a CR. The Senate may try to once again vote on appropriations bills in order to exert leverage over the House, or they could spend time approving nominees while waiting to see what the House is able to approve or not approve. Laphonza Butler Appointed to Complete California Senate Term Following the passing of Senator Dianne Feinstein, California Governor Gavin Newsom appointed Laphonza Butler to complete the senator's term which expires on January 3, 2025. Senator - designate Butler will be sworn into office by Vice President Kamala Harris in the first week of October. To take office Senator -designate Butler will be stepping down from her current role as President of EMILY's List, a political action committee with the aim of electing Democratic women to office. Before joining EMILY's List, Senator -designate Butler worked as a political consultant and Director of Public Policy and Campaigns for Airbnb. Additionally, she served for nearly 20 years as an organized labor leader within SEIU, serving as SEIU International Vice President and president of the SEIU California State Council. By appointing Ms. Butler, Governor Newsom avoids picking a candidate already in the running for Senator Feinstein's seat. Longtime Representative Barbara Lee, who is the highest-ranking Black woman appointed to Democratic leadership, is up against fellow Democratic Representatives Adam Schiff and Katie Porter, two of the House's top fundraisers who have already amassed millions of dollars each for their bids. Senator -designate Butler has not yet indicated if she too will run in the already competitive primary, however, Governor Newsom indicated that his appointment was free to do so, contrary to comments made a few weeks ago that he would be appointing a placeholder to the position. US Department of Transportation Adopts New Categorical Exclusion for EV Charging Stations In late September, the US Department of Transportation (DOT) accelerated the electric vehicle (EV) project delivery by adopting a Department of Energy Electric Vehicle Charging Station Categorical Exclusion under the National Environmental Policy Act (NEPA) that will speed up the installation of EV charging stations throughout the country. A categorical exclusion, or CE, is a class of actions that a Federal agency has determined does not individually or cumulatively have a significant effect on the human environment; neither an environmental assessment nor an environmental impact statement is normally required. By allowing nearly all of the DOT's $7.5 billion in EV charging funding to be considered under categorical exclusions, the actions enable state and local governments to complete environmental review procedures more quickly for EV charging infrastructure projects. The Federal Highway Administration (FHWA), which oversees the Department of Transportation's EV programs, already has a number of CEs available. However, with the adoption of DOE's EV Charging CE, (� Page 14 DocuSign Envelope ID: AB8635DC-E195-479A-1305B-06ENE351C67 DOT now has a CE that is specifically focused on EV charging. This is an important tool for non- traditional grantees who are less familiar with FHWA's current CEs, which cover many EV projects but necessitate proficiency with the NEPA process. SAFE Banking Act Update An updated version of legislation to open legal banking channels to cannabis businesses received a bipartisan vote of approval in committee on September 27. By a vote of 14 to 9 S. 2860, the SAFER Banking Act was favorably reported by the Senate Banking Committee. The legislation, dubbed the Secure and Fair Enforcement Regulation (SAFER) Banking Act, would give state -legalized marijuana businesses access to banking services, and would also prohibit regulators from ordering a bank or credit union to close an account based on reputational risk. The bill is backed by Majority Leader Chuck Schumer who has made its passage one of his goals for this fall. Supporters of the bill have said they are increasingly confident it will get the sixty votes needed to pass the Senate, with more Republicans shifting toward supporting cannabis legalization, including in Republican -run states. A version of the cannabis banking bill passed the House when Democrats controlled the chamber with majority backing in both parties, including from now -Speaker Kevin McCarthy, before stalling in the Senate amid demands by progressives for broader legislation. The timing of a vote by the full Senate is unclear at the moment, but it could come later this fall. Although Speaker McCarthy has supported the goals of the bill, it is also unclear if he will bring a Senate -passed bill up for a vote in the House. (� Page 15 DocuSign Envelope ID: AB8635DC-E195-479A-B05B-06EO8E351C67 City of Tustin Priority State Legislation Matrix 2023 California State Legislative Session Updated 10.4.23 Bill Bill Summary Bill Status Position Community Services Would update California's 1967 conservatorship law by Status: 9/21/2023- SB 43 (Eggman) expanding the definition of "gravely disabled" to include Enrolled and Watch Behavioral Health. conditions that result in a substantial risk of serious harm to an presented to the individual's Dhvsical or mental health. Governor at 4 D.m. AB 33 (Bains) Fentanyl Addiction Would establish a task force to analyze data on the extent of fentanyl and Overdose use in California and evaluate approaches to increase public Prevention Task awareness. Force. SB 19 (Seyarto) Would establish a task force to analyze data on the extent of fentanyl Anti-Fentanyl use in California and evaluate approaches to increase public Abuse Task Force. awareness. Status: 9/21 /2023- Enrolled and presented to the Governor at 3:30 p.m. Status: 9/21 /2023- Enrolled and Watch presented to the Governor at 4 p.m. Page 1 of 11 DocuSign Envelope ID: AB8635DC-E195-479A-B05B-06EO8E351C67 AB 1215 (Carrillo) Pets Assistance with Support Grant Program: Homeless Shelters: Domestic Violence Shelters: Pets. Would create a grant program for homeless and domestic violence shelters to accommodate pets. Status: 9/8/2023-Read third time and Watch amended. Ordered to second reading. Page 2 of 11 DocuSign Envelope ID: AB8635DC-E 1 95-479A-BO5B-06EO8E351 C67 Public Safety Page 3 of 11 DocuSign Envelope ID: AB8635DC-E 1 95-479A-BO5B-06EO8E351 C67 Would require the EMS authority to develop an electronic signature for use between the emergency department medical personnel at a receiving facility and the transporting emergency Status: 9/15/2023- AB 40 (Rodriguez) medical personnel that captures the points in time when the Enrolled and Emergency hospital receives notification of ambulance arrival and when presented to the Watch Medical Services. transfer of care is executed for documentation of ambulance Governor at 4 p.m. patient offload time and would require the authority to develop a statewide standard of 20 minutes, 90% of the time, for ambulance patient offload time. Environment Page 4 of 11 DocuSign Envelope ID: AB8635DC-E195-479A-B05B-06EO8E351C67 Summary: Current law requires the Department of Conservation and the State AB 1526 (Asm. Nat Water Resources Control Board to provide to the fiscal and relevant policy Status: 9/21/2023- Resources) Solid committees of the Legislature an annual report regarding certain aspects of the Enrolled and Watch implementation of the Underground Injection Control Program until October 1, 2024. presented to the Waste. This bill would make these provisions inoperative on October 1, 2029, and would Governor at 3:30 p.m. repeal them as of January 1, 2030. AB 50 (Wood) Status: 9/21/2023- Energy Utility This measure aims to address situation delays with connecting Enrolled and Watch Communication. projects to the grid, including housing projects. presented to the Governor at 3:30 p.m. AB 1132 Would extend to 2034 the current limit on permit fees that a city or Status: 9/13/2023- Enrolled and (Freidman) Solar county may charge for a residential and commercial solar energy presented to the Watch Permit Fees. system. Governor at 3 p.m. Page 5 of 11 DocuSign Envelope ID: AB8635DC-E195-479A-B05B-06EO8E351C67 Would require local governments in coastal areas to implement Status: 9/18/2023- SB 272 (Laird) Sea sea level rise planning and adaptation by 2034. Would also require Enrolled and Level Rise the California Coastal Commission and the San Francisco Bay presented to the Watch Planning. Conservation and Development Commission to establish guidelines Governor at 3 p.m. for the preparation of that planning and adaptation by 2024. SB 69 (Cortese) Would require local agencies to provide any subsequent revised or Status: 9/13/2023- CEQA Document amended copy of CEQA documents upon request by mail or email Enrolled and Watch Requests. and to submit the documents to the state clearinghouse. Would toll presented to the the statutes of limitation periods for each document request. Governor at 4 p.m. Housing SB 4 (Wiener) Planning and Zoning: Housing Status: 9/15/2023- Development: Would require that a housing development project be a use by right on Enrolled and Higher any land owned by an independent institution of higher education or presented to the Watch Education religious institution on or before January 1, 2024. Governor at 3 p.m. 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: 9/15/2023- Housing • Remove the 2026 sunset and makes the statutes permanent. Enrolled and Oppose Unless Approvals: • Apply SB 35 provisions to the Coastal Zone. presented to the Amended Multifamily • Allow the state to approve housing developments on property they Governor at 3 p.m. 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 Status: 9/18/2023- Surplus land planned disposal of surplus land if it receives a notice of violation from the Enrolled and Oppose Unless disposal: Department of Housing and Community Development and the violation is not presented to the Amended violations: Orange corrected within 60 days. Governor at 3 p.m. County. Page 6 of 11 DocuSign Envelope ID: AB8635DC-E195-479A-B05B-06EO8E351C67 Would require a city or county to provide, to a 100% affordable housing AB 1490 (Lee) project, the following: Affordable • Approving all entitlements and permits within 30 days or less. Status: 9/21/2023- Housing • Waiving local building and permit fees. Enrolled and Development • Low-income utility rates shall be available. presented to the Watch Projects: Adaptive • No minimum floor area ratio. Governor at 3:30 p.m. • No additional parking requirements. Reuse. • Local affordable housing funds shall include adaptive reuse as an eligible project. Status: 9/21 /2023- AB 480 (Ting) AB 480 makes various changes to the Surplus Land Act regarding the disposal Enrolled and Oppose Unless Surplus Land process, HCD's authority, and penalties for violations. presented to the Amended Governor at 3:30 p.m. SIB 747 (Caballero) Land Use: This bill makes changes to the Surplus Land Act (SLA) by addressing substantive Status: 9/21/2023- Economic issues with the SLA as it exists today, and reaffirms the role of the Economic Enrolled and Development, Opportunity Law when local agencies dispose of property. presented to the Governor at 4 p.m. surplus land AB 519 (Schiavo) Affordable Would require the Department of Housing and Community Housing: Development, by July 1, 2024, to establish a workgroup to develop a Status: 9/21/2023- Consolidated consolidated application for the purposes of obtaining grants, loans, Enrolled and Watch Funding tax credits, credit enhancement, and other types of financing for presented to the building affordable housing, and developing a coordinated review Governor at 3:30 p.m. Application process for the application. Process. Page 7 of 11 DocuSign Envelope ID: AB8635DC-E 1 95-479A-BO5B-06EO8E351 C67 ACA 1 (Aguiar- Curry) Local Government Would authorize a local government to impose, extend, or increase a Status: Status: 9/20/2023- Financing: sales and use tax or transactions and use tax for the purposes of C aptered by Affordable funding the construction, rehabilitation, or replacement of public Secretary of State- Watch Housing infrastructure, affordable housing, or permanent supportive housing if Chapter 173, Statutes and Public the proposition proposing that tax is approved by 55% of its voters of 2023 voting on the proposition. Infrastructure: Voter Approval. Transportation AB 744 (Carrillo) Would authorize the California Transportation Commission to Status: 9/21/2023- Transportation establish best practices for use of data in transportation planning Enrolled and Watch Planning. and to identify data elements that should be made available to presented to the state and local agencies for transportation planning. Governor at 3:30 p.m. Page 8 of 11 DocuSign Envelope ID: AB8635DC-E 1 95-479A-BO5B-06EO8E351 C67 Status: 9/21 /2023- AB 1637 (Irwin) Would state the intent to require a local jurisdiction to adopt a Enrolled and Watch Website Domains. ".gov" domain by 2025. presented to the Governor at 3:30 p.m. Status: 9/22/2023- AB 400 (Rubio) Would remove the January 1, 2025 sunset for local agencies to Approved by the Governor. Chaptered Public Contracts: use design build on specified projects thereby making the by Secretary of State - Watch Design Build. authority permanent. Chapter 201, Statutes of 2023. SB 706 (Caballero) Would authorize all cities, counties, city and counties, or special Status: 9/7/2023- Public Contracts: districts to use the progressive design -build process for other Enrolled and Watch Progressive projects in addition to water -related projects, and would remove presented to the Design Build. the project cap. Governor at 4 p.m. Status: 9/30/2023- AB 334 (Rubio) Would establish that an independent contractor, who meets Approved by the Public Contracts: specified requirements, is not an officer for purposes of being Governor. Chaptered Watch Conflict of subject to the prohibition on being financially interested in a by Secretary of State - Interests. contract. Chapter 263, Statutes of 2023. Taxes AB 1203 (Bains) Sales and Use Would exempt from the California sales and use tax the gross Status: 9/20/2023- Taxes: receipts for the sale of breast pumps, breast pump collection and Enrolled and Watch Exemptions: storage supplies, breast pump kits, and breast pads. This exemption presented to the Breast Pumps and would apply on or after January 1, 2024, and ends January 1, 2029. Governor at 4 p.m. Related Supplies. Page 9 of 11 DocuSign Envelope ID: AB8635DC-E195-479A-B05B-06E08E351C67 AB 84 (Ward) Property Tax: Would expand eligibility for exemptions from property taxes for Status: 9/20/2023- Welfare affordable rental housing (e.g., "welfare exemptions"). Specifically, Enrolled and Exemption: would expand this partial exemption to property acquired, presented to the Watch Affordable rehabilitated, developed, or operated, or any combination of Governor at 4 these factors, with financing from qualified 501(c)(3) bonds Housing. Governance and Labor AB 1484 (Zbur) Would require temporary employees to be automatically Status: 9/21/2023- Temporary Public included in the same bargaining unit as the permanent Enrolled and Watch employees upon the request of the recognized employee presented to the Employees. organization. Governor at 3:30 p.m. SB 751 (Padilla) Would prohibit a city, county, or city and county from entering an Status: 9/21/2023- Franchise exclusive franchise agreement for services on or after Enrolled and Agreements: January 1, 2024, or an agreement amended on or after that presented to the Watch Labor Impasse. date, that contains a force majeure provision that can be Governor at 4 p.m. triggered by a labor impasse. AB 504 (Reyes) State And Local Would allow local public employees to refuse to enter property Status: 9/20/2023- Public Employees: that is the site of a primary labor dispute, perform work for an Enrolled and Labor employer involved in a primary labor dispute, or go through or presented to the Watch Relations: work behind a primary picket line. Would prohibit an employer Governor at 4 from directing an employee to take those actions. Disputes. AB 764 (Bryan) Status: 9/20/2023- Elections: City This measures states the intent of the Legislature to add new to Enrolled and Watch And County add new requirements to the Fair Maps Acts. presented to the Redistricting. Governor at 4 p.m. AB 1248 (Bryan) Local Status: 9/21 /2023- Redistricting: Would require independent redistricting commissions for cities Enrolled and Watch Independent over 300,000 in population. presented to the Redistricting Governor at 3:30 p.m. Commissions. Page 10 of 11 DocuSign Envelope ID: AB8635DC-E195-479A-B05B-06E08E351C67 AB 557 (Hart) Would allow cities to meet remotely during proclaimed states of Status: 9/21/2023- Open Meetings: emergency under modified Brown Act requirements. Would also Enrolled and Watch Local Agencies: provide greater flexibility for agencies that meet on a fixed date presented to the Teleconferences. every month by extending the AB 361 renewal period to 45 days. Governor at 3:30 p.m. AB 37 (Bonta) Political Reform Status: 9/20/2023- Act of 1974: Would expand the ability for officials to expend campaign funds Enrolled and Watch Campaign Funds: for security expenses. presented to the Security Governor at 4 p.m. Expenses. Page 11 of 11 DocuSign Envelope ID: AB8635DC-E195-479A-1305B-06ENE351C67 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: AB8635DC-E195-479A-B05B-06EO8E351C67 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: AB8635DC-E195-479A-B05B-06EO8E351C67 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: AB8635DC-E195-479A-B05B-06EO8E351C67 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: AB8635DC-E195-479A-B05B-06EO8E351C67 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: AB8635DC-E195-479A-B05B-06E08E351C67 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