HomeMy WebLinkAbout09 OVERVIEW OF LAND USE OPTIONS FOR HOUSING ELEMENT REZONING PROGRAMDocuSign Envelope ID: 63BOC69D-1BFD-4B3F-8FDF-D6C835E73DF6
MEETING DATE:
TO:
FROM:
SUBJECT:
SUMMARY:
Agenda Item y
AGENDA REPORT Reviewed: os
City Manager
Finance Director
DECEMBER 5, 2023
NICOLE BERNARD, ACTING CITY MANAGER
COMMUNITY DEVELOPMENT DEPARTMENT
OVERVIEW OF LAND USE OPTIONS FOR HOUSING ELEMENT
REZONING PROGRAM
The City's adopted Housing Element currently identifies a Rezoning Program that
establishes eighteen (18) housing element sites zoned for mixed -use development.
These eighteen (18) sites accommodate the City's obligation under the Regional Housing
Needs Allocation (RHNA). This report addresses how City staff intends to propose to
comply with the Housing Element Law's restrictions on rezoning sites that include mixed -
use zoning.
This report clarifies that City staff proposes to designate a few of the housing inventory
sites for "residential use only" development in accordance with the Housing Element, such
that non-residential uses would be prohibited on those sites. By doing so the remaining
housing inventory sites will maintain the land use flexibility currently allowed by the City
Code. The sites to be designated for residential uses only include a portion of land at
The Market Place shopping center that is currently used for parking and a portion of
Neighborhood D North within the Tustin Legacy Specific Plan (TLSP).
RECOMMENDATION:
That the City Council receive and file this staff report.
FISCAL IMPACT:
The City Council has appropriated funds to complete the Housing Element Rezoning
project.
CORRELATION TO THE STRATEGIC PLAN:
This action correlates to the City's Strategic Plan Goal A, Economic and Neighborhood
Development, Strategy 15, which is to create affordable and workforce housing options.
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City Council Staff Report
Housing Element Rezoning Options
December 5, 2023
Page 2
BACKGROUND:
California housing law requires cities and counties to update their General Plan Housing
Elements every eight (8) years (aka, "housing element cycle"). On October 5, 2021 the
City Council adopted an update to the Tustin General Plan Housing Element, which was
submitted to the California Department of Housing and Community Development (HCD)
for their review and comment. The adopted Housing Element was revised to
address HCD comments, and subsequently resubmitted to HCD. On September 12,
2022, HCD certified that the Housing Element complied with the statutory
requirements of housing element law. On October 4, 2022 the City Council
readopted the certified Housing Element.
Housing Element Site Inventory
The City's certified Housing Element establishes strategies to facilitate the development
of housing to meet the City's fair share of the regional housing need by income level
(RHNA) by providing an inventory of land adequately zoned or planned to be zoned for
housing development. Sites are determined to be suitable for residential development if
zoned appropriately and available for residential use during the planning period. If the
inventory demonstrates that there are insufficient adequate sites to accommodate the
RHNA for each income category, the inventory must identify sites for rezoning.
The City's certified Housing Element identifies eighteen (18) sites, fourteen (14) of which
already allow residential development under their existing mixed -use zoning. The
remaining four (4) sites require rezoning, as they do not currently allow residential
development or do not allow the number of residential units needed to meet the City's
RHNA requirement. The four (4) rezone sites include portions of the Enderle Center, the
Market Place Center, Tustin Legacy Neighborhood D (North and South), and Tustin
Legacy Neighborhood G.
In addition, where the inventory of sites does not identify adequate sites to accommodate
the RHNA for lower income households, the Housing Element must include a program to
rezone additional adequate sites that can be developed for housing within the planning
period and that are sufficient to accommodate 100 percent of the shortfall of sites
necessary to accommodate the remaining housing need for very low- and low-income
households. City Staff has calculated the shortfall within the two lower -income categories
that must be accommodated on the four (4) rezone sites is 948 units. The rezone sites
needed to accommodate a lower -income shortfall must comply with the following
requirements set forth in Government Code Section 65583.2(h):
• Permit owner -occupied and rental multifamily uses by right for developments in
which twenty (20) percent or more of the units are affordable to lower income
households. "By right" means local government review must not require
a conditional use permit, planned unit development permit, or other
discretionary review or approval.
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City Council Staff Report
Housing Element Rezoning Options
December 5, 2023
Page 3
• Permit the development of at least sixteen (16) units per site.
Ensure the sites allow a minimum of twenty (20) dwelling units per acre.
Ensure a) at least fifty (50) percent of the shortfall of low- and very low-income
regional housing need can be accommodated on sites designated for exclusively
residential uses, or b) if accommodating more than fifty (50) percent of the low -
and very low-income regional housing need on sites designated for mixed -uses,
all sites designated for mixed -uses must allow 100 percent residential use and
require residential use to occupy at least fifty (50) percent of the floor area in a
mixed -use project.
The City is currently undertaking the Rezoning project in compliance with the certified
Housing Element. The City is at this juncture determining the appropriate method of
rezoning to ensure that the City can be flexible to facilitate various development activities,
while at the same time meeting the Housing Element goals and objectives.
As mentioned, all eighteen (18) of the housing inventory sites, as identified in the Housing
Element, are zoned for, or will be zoned for, mixed -use development, which allows for a
combination of commercial and/or residential development. At the time of the Housing
Element approval, staff anticipated that the four (4) rezone sites would each be developed
with commercial and residential uses, either vertically or horizontally, with the residential
comprising at least fifty (50) percent of a project's square footage (Government Code §
65583.2(h)).
However, upon further analysis, it was determined that it would be beneficial to allow
more land use flexibility on many of the designated rezone sites. In order to provide
property owners with the flexibility to build projects consisting of less than fifty (50) percent
housing on these sites, the City is required to rezone fifty (50) percent of the shortfall sites
for "exclusively residential" uses; thus, prohibiting any non-residential or mixed -use
development. Accordingly, the rezoning project would propose to zone approximately
eighteen (18) acres in the Market Place and portion of the Neighborhood D North to only
allow residential development. Consistent with the requirements of Government Code
Section 65583.2(h), the identified exclusively residential rezonings is sufficient to
accommodate at least fifty (50) percent of the 948 lower income units shortfall, or 474
units. By designating these housing inventory sites as only allowing residential uses, the
remaining rezone sites can be zoned to provide broader mixed -use flexibility.
No Net Loss
The City's Housing Element must also demonstrate that Tustin has an adequate number
of vacant or underdeveloped sites to accommodate its fair share of housing for an eight -
year period. Senate Bill 166, known as the "No Net Loss" law (Government Code §
65863), was adopted to ensure that a city not only have adequate sites at the beginning
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City Council Staff Report
Housing Element Rezoning Options
December 5, 2023
Page 4
of their housing element cycle, but that the city maintains adequate sites throughout the
housing element cycle.
This means that if the City approves the development of a property identified on the
Housing Element's site inventory with a non-residential use, or with less than the number
of housing units allocated to that site in any income category, then the City must show
that there is adequate capacity on other sites identified in the site inventory to
accommodate the "lost" housing units. If the City cannot show that additional capacity
exists, then the City has 180 days to identify and/or rezone an additional site or sites
adequate to accommodate the "lost" housing units.
The Housing Element rezoning includes "buffer units" that the City has identified in the
certified Housing Element, and these units can be used to offset underdeveloped
inventory sites. The Housing Element proposed a rezoning to place 1,356 buffer units
within Neighborhood D North of the TLSP.
CONCLUSION:
The City's adopted Housing Element currently identifies an inventory of eighteen (18)
housing sites zoned for mixed -use development. Government Code § 65583.2(h) limits
development to predominantly residential projects (over 50 percent residential square
footage) when all of the housing inventory sites are zoned mixed -use. City staff proposes
a rezoning program that will designate two (2) properties as exclusively residential
(prohibiting non-residential uses). The residential only sites currently under consideration
include eighteen (18) acres within The Market Place shopping center that are currently
used for parking and a portion of Neighborhood D North, within the TLSP. By designating
these housing inventory sites as only allowing residential uses, the zoning for the
remainder of the rezone sites can maintain broader mixed -use flexibility.
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Jay Eastman, AICP
Assistant Community Development
Director - Planning
Attachment: Government Code § 65583.2
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Jus -L-Vvillkom
Community Development Director
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�I�"+YW STATE OF CALIFORNIA
AUTHENTICATED
BUBFnu ELECTRONIC LEGAL MATERIAL
State of California
GOVERNMENT CODE
Section 65583.2
65583.2. (a) A city's or county's inventory of land suitable for residential
development pursuant to paragraph (3) of subdivision (a) of Section 65583 shall be
used to identify sites throughout the community, consistent with paragraph (10) of
subdivision (c) of Section 65583, that can be developed for housing within the planning
period and that are sufficient to provide for the jurisdiction's share of the regional
housing need for all income levels pursuant to Section 65584. As used in this section,
"land suitable for residential development" includes all of the following sites that
meet the standards set forth in subdivisions (c) and (g):
(1) Vacant sites zoned for residential use.
(2) Vacant sites zoned for nonresidential use that allows residential development.
(3) Residentially zoned sites that are capable of being developed at a higher density,
including sites owned or leased by a city, county, or city and county.
(4) Sites zoned for nonresidential use that can be redeveloped for residential use,
and for which the housing element includes a program to rezone the site, as necessary,
rezoned for, to permit residential use, including sites owned or leased by a city, county,
or city and county.
(b) The inventory of land shall include all of the following:
(1) A listing of properties by assessor parcel number.
(2) The size of each property listed pursuant to paragraph (1), and the general plan
designation and zoning of each property.
(3) For nonvacant sites, a description of the existing use of each property. If a site
subject to this paragraph is owned by the city or county, the description shall also
include whether there are any plans to dispose of the property during the planning
period and how the city or county will comply with Article 8 (commencing with
Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5.
(4) A general description of any environmental constraints to the development of
housing within the jurisdiction, the documentation for which has been made available
to the jurisdiction. This information need not be identified on a site -specific basis.
(5) (A) A description of existing or planned water, sewer, and other dry utilities
supply, including the availability and access to distribution facilities.
(B) Parcels included in the inventory must have sufficient water, sewer, and dry
utilities supply available and accessible to support housing development or be included
in an existing general plan program or other mandatory program or plan, including a
program or plan of a public or private entity providing water or sewer service, to
secure sufficient water, sewer, and dry utilities supply to support housing development.
This paragraph does not impose any additional duty on the city or county to construct,
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finance, or otherwise provide water, sewer, or dry utilities to parcels included in the
inventory.
(6) Sites identified as available for housing for above moderate -income households
in areas not served by public sewer systems. This information need not be identified
on a site -specific basis.
(7) A map that shows the location of the sites included in the inventory, such as
the land use map from the jurisdiction's general plan, for reference purposes only.
(c) Based on the information provided in subdivision (b), a city or county shall
determine whether each site in the inventory can accommodate the development of
some portion of its share of the regional housing need by income level during the
planning period, as determined pursuant to Section 65584. The inventory shall specify
for each site the number of units that can realistically be accommodated on that site
and whether the site is adequate to accommodate lower income housing,
moderate -income housing, or above moderate -income housing. A nonvacant site
identified pursuant to paragraph (3) or (4) of subdivision (a) in a prior housing element
and a vacant site that has been included in two or more consecutive planning periods
that was not approved to develop a portion of the locality's housing need shall not be
deemed adequate to accommodate a portion of the housing need for lower income
households that must be accommodated in the current housing element planning
period unless the site is zoned at residential densities consistent with paragraph (3)
of this subdivision and the site is subject to a program in the housing element requiring
rezoning within three years of the beginning of the planning period to allow residential
use by right for housing developments in which at least 20 percent of the units are
affordable to lower income households. Notwithstanding the foregoing, for a local
government that fails to adopt a housing element that the department has found to be
in substantial compliance with state law within 120 days of the statutory deadline in
Section 65588 for adoption of the housing element, rezoning pursuant to this
subdivision shall be completed no later than one year from the statutory deadline in
Section 65588 for adoption of the housing element. An unincorporated area in a
nonmetropolitan county pursuant to clause (ii) of subparagraph (B) of paragraph (3)
shall not be subject to the requirements of this subdivision to allow residential use by
right. The analysis shall determine whether the inventory can provide for a variety of
types of housing, including multifamily rental housing, factory -built housing,
mobilehomes, housing for agricultural employees, supportive housing, single -room
occupancy units, emergency shelters, and transitional housing, and whether the
inventory affirmatively furthers fair housing. The city or county shall determine the
number of housing units that can be accommodated on each site as follows:
(1) If local law or regulations require the development of a site at a minimum
density, the department shall accept the planning agency's calculation of the total
housing unit capacity on that site based on the established minimum density. If the
city or county does not adopt a law or regulation requiring the development of a site
at a minimum density, then it shall demonstrate how the number of units determined
for that site pursuant to this subdivision will be accommodated.
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(2) The number of units calculated pursuant to paragraph (1) shall be adjusted as
necessary, based on the land use controls and site improvements requirement identified
in paragraph (5) of subdivision (a) of Section 65583, the realistic development capacity
for the site, typical densities of existing or approved residential developments at a
similar affordability level in that jurisdiction, and on the current or planned availability
and accessibility of sufficient water, sewer, and dry utilities.
(A) A site smaller than half an acre shall not be deemed adequate to accommodate
lower income housing need unless the locality can demonstrate that sites of equivalent
size were successfully developed during the prior planning period for an equivalent
number of lower income housing units as projected for the site or unless the locality
provides other evidence to the department that the site is adequate to accommodate
lower income housing.
(B) A site larger than 10 acres shall not be deemed adequate to accommodate lower
income housing need unless the locality can demonstrate that sites of equivalent size
were successfully developed during the prior planning period for an equivalent number
of lower income housing units as projected for the site or unless the locality provides
other evidence to the department that the site can be developed as lower income
housing. For purposes of this subparagraph, "site" means that portion of a parcel or
parcels designated to accommodate lower income housing needs pursuant to this
subdivision.
(C) A site may be presumed to be realistic for development to accommodate lower
income housing need if, at the time of the adoption of the housing element, a
development affordable to lower income households has been proposed and approved
for development on the site.
(3) For the number of units calculated to accommodate its share of the regional
housing need for lower income households pursuant to paragraph (2), a city or county
shall do either of the following:
(A) Provide an analysis demonstrating how the adopted densities accommodate
this need. The analysis shall include, but is not limited to, factors such as market
demand, financial feasibility, or information based on development project experience
within a zone or zones that provide housing for lower income households.
(B) The following densities shall be deemed appropriate to accommodate housing
for lower income households:
(i) For an incorporated city within a nonmetropolitan county and for a
nonmetropolitan county that has a micropolitan area: sites allowing at least 15 units
per acre.
(ii) For an unincorporated area in a nonmetropolitan county not included in clause
(i): sites allowing at least 10 units per acre.
(iii) For a suburban jurisdiction: sites allowing at least 20 units per acre.
(iv) For a jurisdiction in a metropolitan county: sites allowing at least 30 units per
acre.
(4) (A) For a metropolitan jurisdiction:
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(i) At least 25 percent of the jurisdiction's share of the regional housing need for
moderate -income housing shall be allocated to sites with zoning that allows at least
4 units of housing, but not more than 100 units per acre of housing.
(ii) At least 25 percent of the jurisdiction's share of the regional housing need for
above moderate -income housing shall be allocated to sites with zoning that allows at
least 4 units of housing.
(B) The allocation of moderate -income and above moderate -income housing to
sites pursuant to this paragraph shall not be a basis for the jurisdiction to do either of
the following:
(i) Deny a project that does not comply with the allocation.
(ii) Impose a price minimum, price maximum, price control, or any other exaction
or condition of approval in lieu thereof. This clause does not prohibit a jurisdiction
from imposing any price minimum, price maximum, price control, exaction, or
condition in lieu thereof, pursuant to any other law.
(iii) The provisions of this subparagraph do not constitute a change in, but are
declaratory of, existing law with regard to the allocation of sites pursuant to this
section.
(C) This paragraph does not apply to an unincorporated area.
(D) For purposes of this paragraph:
(i) "Housing development project" has the same meaning as defined in paragraph
(2) of subdivision (h) of Section 65589.5.
(ii) "Unit of housing" does not include an accessory dwelling unit or junior
accessory dwelling unit that could be approved pursuant to Section 65852.2 or Section
65852.22 or through a local ordinance or other provision implementing either of those
sections. This paragraph shall not limit the ability of a local government to count the
actual production of accessory dwelling units or junior accessory dwelling units in
an annual progress report submitted pursuant to Section 65400 or other progress report
as determined by the department.
(E) Nothing in this subdivision shall preclude the subdivision of a parcel, provided
that the subdivision is subject to the Subdivision Map Act (Division 2 (commencing
with Section 66410)) or any other applicable law authorizing the subdivision of land.
(d) For purposes of this section, a metropolitan county, nonmetropolitan county,
and nonmetropolitan county with a micropolitan area shall be as determined by the
United States Census Bureau. A nonmetropolitan county with a micropolitan area
includes the following counties: Del Norte, Humboldt, Lake, Mendocino, Nevada,
Tehama, and Tuolumne and other counties as may be determined by the United States
Census Bureau to be nonmetropolitan counties with micropolitan areas in the future.
(e) (1) Except as provided in paragraph (2), a jurisdiction shall be considered
suburban if the jurisdiction does not meet the requirements of clauses (i) and (ii) of
subparagraph (B) of paragraph (3) of subdivision (c) and is located in a Metropolitan
Statistical Area (MSA) of less than 2,000,000 in population, unless that jurisdiction's
population is greater than 100,000, in which case it shall be considered metropolitan.
A county, not including the City and County of San Francisco, shall be considered
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suburban unless the county is in an MSA of 2,000,000 or greater in population in
which case the county shall be considered metropolitan.
(2) (A) (i) Notwithstanding paragraph (1), if a county that is in the San
Francisco -Oakland -Fremont California MSA has a population of less than 400,000,
that county shall be considered suburban. If this county includes an incorporated city
that has a population of less than 100,000, this city shall also be considered suburban.
This paragraph shall apply to a housing element revision cycle, as described in
subparagraph (A) of paragraph (3) of subdivision (e) of Section 65588, that is in effect
from July 1, 2014, to December 31, 2028, inclusive.
(ii) A county subject to this subparagraph shall utilize the sum existing in the
county's housing trust fund as of June 30, 2013, for the development and preservation
of housing affordable to low- and very low income households.
(B) A jurisdiction that is classified as suburban pursuant to this paragraph shall
report to the Assembly Committee on Housing and Community Development, the
Senate Committee on Housing, and the Department of Housing and Community
Development regarding its progress in developing low- and very low income housing
consistent with the requirements of Section 65400. The report shall be provided three
times: once, on or before December 31, 2019, which report shall address the initial
four years of the housing element cycle, a second time, on or before December 31,
2023, which report shall address the subsequent four years of the housing element
cycle, and a third time, on or before December 31, 2027, which report shall address
the subsequent four years of the housing element cycle and the cycle as a whole. The
reports shall be provided consistent with the requirements of Section 9795.
(f) A jurisdiction shall be considered metropolitan if the jurisdiction does not meet
the requirements for "suburban area" above and is located in an MSA of 2,000,000
or greater in population, unless that jurisdiction's population is less than 25,000 in
which case it shall be considered suburban.
(g) (1) For sites described in paragraph (3) of subdivision (b), the city or county
shall specify the additional development potential for each site within the planning
period and shall provide an explanation of the methodology used to determine the
development potential. The methodology shall consider factors including the extent
to which existing uses may constitute an impediment to additional residential
development, the city's or county's past experience with converting existing uses to
higher density residential development, the current market demand for the existing
use, an analysis of any existing leases or other contracts that would perpetuate the
existing use or prevent redevelopment of the site for additional residential development,
development trends, market conditions, and regulatory or other incentives or standards
to encourage additional residential development on these sites.
(2) In addition to the analysis required in paragraph (1), when a city or county is
relying on nonvacant sites described in paragraph (3) of subdivision (b) to
accommodate 50 percent or more of its housing need for lower income households,
the methodology used to determine additional development potential shall demonstrate
that the existing use identified pursuant to paragraph (3) of subdivision (b) does not
constitute an impediment to additional residential development during the period
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covered by the housing element. An existing use shall be presumed to impede
additional residential development, absent findings based on substantial evidence that
the use is likely to be discontinued during the planning period.
(3) Notwithstanding any other law, and in addition to the requirements in paragraphs
(1) and (2), sites that currently have residential uses, or within the past five years have
had residential uses that have been vacated or demolished, that are or were subject to
a recorded covenant, ordinance, or law that restricts rents to levels affordable to
persons and families of low or very low income, subject to any other form of rent or
price control through a public entity's valid exercise of its police power, or occupied
by low- or very low income households, shall be subject to a policy requiring the
replacement of all those units affordable to the same or lower income level as a
condition of any development on the site. Replacement requirements shall be consistent
with those set forth in paragraph (3) of subdivision (c) of Section 65915.
(h) The program required by subparagraph (A) of paragraph (1) of subdivision (c)
of Section 65583 shall accommodate 100 percent of the need for housing for very
low and low-income households allocated pursuant to Section 65584 for which site
capacity has not been identified in the inventory of sites pursuant to paragraph (3) of
subdivision (a) on sites that shall be zoned to permit owner -occupied and rental
multifamily residential use by right for developments in which at least 20 percent of
the units are affordable to lower income households during the planning period. These
sites shall be zoned with minimum density and development standards that permit at
least 16 units per site at a density of at least 16 units per acre in jurisdictions described
in clause (i) of subparagraph (B) of paragraph (3) of subdivision (c), shall be at least
20 units per acre in jurisdictions described in clauses (iii) and (iv) of subparagraph
(B) of paragraph (3) of subdivision (c) and shall meet the standards set forth in
subparagraph (B) of paragraph (5) of subdivision (b). At least 50 percent of the very
low and low-income housing need shall be accommodated on sites designated for
residential use and for which nonresidential uses or mixed uses are not permitted,
except that a city or county may accommodate all of the very low and low-income
housing need on sites designated for mixed use if those sites allow 100 percent
residential use and require that residential use occupy 50 percent of the total floor
area of a mixed -use project.
(i) For purposes of this section and Section 65583, the phrase "use by right" shall
mean that the local government's review of the owner -occupied or multifamily
residential use may not require a conditional use permit, planned unit development
permit, or other discretionary local government review or approval that would
constitute a "project" for purposes of Division 13 (commencing with Section 21000)
of the Public Resources Code. Any subdivision of the sites shall be subject to all laws,
including, but not limited to, the local government ordinance implementing the
Subdivision Map Act. A local ordinance may provide that "use by right" does not
exempt the use from design review. However, that design review shall not constitute
a "project" for purposes of Division 13 (commencing with Section 21000) of the
Public Resources Code. Use by right for all rental multifamily residential housing
shall be provided in accordance with subdivision (f) of Section 65589.5.
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0) Notwithstanding any other provision of this section, within one-half mile of a
Sonoma-Marin Area Rail Transit station, housing density requirements in place on
June 30, 2014, shall apply.
(k) For purposes of subdivisions (a) and (b), the department shall provide guidance
to local governments to properly survey, detail, and account for sites listed pursuant
to Section 65585.
(0 (1) The changes to this section made by Chapter 193 of the Statutes of 2020
shall become operative on January 1, 2022.
(2) The changes to this section made by Chapter 193 of the Statutes of 2020 shall
not apply to a housing element revision that is originally due on or before January 1,
2022, regardless of the date of adoption by the local agency.
(m) This section shall remain in effect only until December 31, 2028, and as of
that date is repealed.
(Amended (as amended by Stats. 2020, Ch. 193, Sec. 2) by Stars. 2021, Ch. 358, Sec. 2.5. (AB 1398)
Effective January 1, 2022. Repealed as of December 31, 2028, by its own provisions. See later operative
version amended by Sec. 3.5 of Stars. 2021, Ch. 358.)