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HomeMy WebLinkAbout07 LEGISLATIVE UPDATEDocusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 MEETING DATE TO: FROM: SUBJECT: SUMMARY: Agenda Item 7 AGENDA REPORT Reviewed: Initial City Manager Q5 Finance Director N/A SEPTEMBER 17, 2024 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL ALDO E. SCHINDLER, CITY MANAGER LEGISLATIVE UPDATE Staff and the City's consultant Townsend Public Affairs have prepared a summary of state legislative activity. RECOMMENDATION: 1. Receive and file legislative updates prepared by Townsend Public Affairs 2. Receive and file the updated legislative matrix as of September 5 FISCAL IMPACT: Not applicable. CORRELATION TO THE STRATEGIC PLAN: This legislative update correlates contributes to the fulfillment of the City's Strategic Plan Goal D: Strong Community and Regional Relationships. Specifically, this item implements Strategy 3 which is to ensure strong advocacy and regional leadership. BACKGROUND AND DISCUSSION: State Legislative Updates Townsend Public Affairs (TPA) has created a recap of the 2024 state legislative session that is attached to the staff report. Legislative Tracking Matrix Attached is a legislative tracking matrix as of September 5 that tracks bills of interest. Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 City Council Agenda Report Legislative Update September 17, 2024 Page 2 Attachments: 1. TPA 2024 Legislative Session recap 2. Legislative Matrix as of September 5 3. 2024 Legislative Platform Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 TCD`WNSEND TPA MEMORANDUM To: City of Tustin From: Townsend Public Affairs Date: September 5, 2024 Subject: 2024 Legislative End of Session Overview • Advocacy for the protection of key budget accounts that were proposed to be cut, including the Regional Early Action Planning 2.0 program ($300 million), Active Transportation Program, and Homeless, Housing Assistance and Prevention (HHAP) Grant Program. • Advocacy on behalf of statewide bond proposals and the inclusion of funding for local agency projects in the $10 billion climate bond and housing bond. • Advocacy efforts to support the organized retail theft package, which was signed into law and provides local law enforcement agencies additional tools to curb serial theft occurrences • Advocacy on behalf of local land use discretion protection via opposition to builders' remedy proposals and land use bills • Advocacy related to protecting the City from labor -related legislation that would hinder public sector contracting and require significant reporting resources Overview The 2024 legislative session came to a dramatic close just after midnight on Saturday, August 31, as both chambers were engulfed in a flurry of last-minute proposals, political maneuvering, and power plays among leadership in both houses and the Governor's Administration. This adjournment marked the end of the two-year 2023-24 Legislative Session, which saw over 4,000 bills introduced during its cycle. While last-minute policy introductions are a common feature of California's legislative process, this session was notable for the unusually high number of bills and amendments introduced in the final 72 hours. These last-ditch efforts aimed to make sweeping changes in key areas such as energy policy, industrial land use regulations, and gas pricing, among others. Adding to the usual end -of -session frenzy, Governor Newsom called a special session just hours before the regular session's end to address new mandates on oil refineries aimed at reducing gas prices. This unexpected move effectively pushes the Legislature into overtime, forcing lawmakers to grapple with the complex and politically sensitive issue of energy affordability just as the campaign season kicks into high gear ahead of the November 5 election. In response, the Assembly convened the special session on Saturday night, as directed by the Governor, while the Senate chose to defy the Governor's order. () Page 1 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 As for the legislative output of the 2024 session, of the 2,525 total bill vehicles introduced this year, nearly 1,500 were passed by the Legislature. As of September 5, Governor Newsom has signed 550 bills into law, vetoed 5, and has 1001 bills still awaiting his decision before the September 31 deadline. In his first four years in office, Governor Newsom has vetoed between 7.9% and 16.5% of the bills presented to him annually, often citing insufficient state resources to implement the proposed measures. It is expected that his vetoes from the 2024 session will follow a similar pattern, particularly given the current budget deficit. Most of the statutes signed into law will take effect on January 1, 2025. The conclusion of the 2024 legislative session also signals the start of the Interim Recess and the ramp -up to the November 2024 General Election. At least 23 State Assembly seats and 12 State Senate seats are set to change hands, representing over 25% of each house. When the Legislature reconvenes in January 2025 for the start of the 2025-26 session, a wave of freshman legislators will bring new priorities, leadership styles, and political dynamics to Sacramento. Overall, the Townsend Public Affairs team engaged in a number of hard fights on behalf of the City of Tustin including the protection of key budget accounts utilized by local agencies and the local business community in Tustin, the passage of milestone legislative packages like the comprehensive public safety reform package that offers local law enforcement additional tools in curbing serial theft occurrences, opposition to measures that proposed costly mandates or the usurpation of local authority, advocacy for the inclusion of key funding pieces in statewide bond proposals the city will be eligible to receive if passed by voters, among many other advocacy items. Below is a detailed overview of priority measures and key events from the 2024 legislative session, organized by issue area: Artificial Intelligence Artificial intelligence (AI) has emerged as a complex and pressing issue for lawmakers, prompting deliberations on the appropriate scope and extent of its regulation. The state has been grappling with the challenge of understanding Al in its entirety, including its potential benefits and the risks it may pose. Until July, the California Privacy Protection Agency had been considering advancing formal rulemaking to regulate automated decision -making technologies —a subset of Al that utilizes inputs to replace human discretionary judgment. Both the Senate and Assembly have also undertaken efforts to legislate Al through individual bills and hearings. The Senate Judiciary Committee convened a hearing in December focused on the "Importance of Journalism in the Digital Age," examining the interactions between Al and news reporting. Additionally, three of the four Assembly Informational Hearings held this year centered on AI -related topics. Several lawmakers have introduced legislation addressing various aspects of Al regulation, reflecting growing concern and interest in ensuring responsible governance of this rapidly evolving technology. Those proposals included: AB 1831 by Assemblymember Marc Berman (D-Menlo Park) criminalizes the creation, distribution, and possession of AI -generated Child Sexual Abuse Material. AB 2877 by Assemblymember Rebecca Bauer -Kahan (D-Orinda) would have prohibited Al systems from using the personal information of children to train Al systems without affirmative authorization. () Page 2 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 • AB 2930 by Assemblymember Bauer -Kahan would have imposed various regulations on the use of "automated decision systems." • SB 1047 by Senator Scott Wiener (D-San Francisco) requires developers and trainers of powerful artificial intelligence models to put appropriate safeguards and policies into place to prevent harms. In August, a deal was cut between tech companies and Assemblymember Buffy Wicks (D- Oakland) that would dedicate more funding to local journalists and Al developers. The impetus for this deal was a piece of Assemblymember Wicks's legislation, AB 886, which would have required large internet platforms to pay a portion of their revenues to journalists as compensation for using the journalists' content on their own platforms and collecting advertising revenue. The deal includes $300 million allocated over five years to fund in -state newsrooms, but the settlement also funds an "Al Innovation Accelerator" program to develop artificial intelligence initiatives. So far, the deal has received mixed reviews from the journalism world, some of whom are concerned about advancing Al that could replace journalism jobs in the future. Others are grateful for the additional funding to in -state journalism. Bonds Pivoting away from impacting the state budget, ten different legislators introduced bills that would place general obligation (GO) bonds on the ballot to be approved or rejected by voters. AB 247 by Assemblymember Al Muratsuchi (D-Torrance) and SB 867 by Senator Ben Allen (D-Santa Monica) were the only two measures to make it out of the fray and are now Propositions 2 and 4, respectively, on the ballot. Prop 2 dedicates $10 billion for public school and community college facilities and Prop 4 issues $10 billion for various climate and environmental protection projects. The deficit strained the Legislature's capacity to authorize multiple bonds, so state lawmakers were forced to prioritize which bonds were to advance and also how much should be financed by each proposed bond. By approving bonds for school facilities and environmental protection projects, initiatives that would have funded higher education facilities, flood control, fentanyl prevention, and housing were put on hold. While housing is a top priority for the state, many were disappointed that a housing bond was not approved for the ballot. The two bonds that will be on the November ballot, Propositions 2 and 4, would still have a significant impact on the state's budget. The Legislative Analyst's Office estimates the cost to pay off Prop 2 would be $500 million per year for 35 years, and $400 million per year for 40 years for Prop 2 totaling $33.5 billion over the life of both bonds. Currently, the state is paying about $6 billion per year on debt service for existing bonds, so the drawdown on resources is substantial when weighing which bonds to approve each year. The following is a breakdown of Props 2 and 4: Proposition 2: Bonds for Public School and Community College Facilities • $4 billion for the modernization of school facilities, with at least 10% being reserved for small schools and $115 million for testing/remediation of lead in water • $3 billion for new construction of school facilities, with at least 10% being reserved for small school districts • $1.5 billion for community college facilities • $600 million for charter school facilities • $600 million for career technical education programs () Page 3 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 Proposition 4: Bonds for Safe Drinking Water, Wildfire Prevention, and Protecting Communities and Natural Lands From Climate Risks • $3.8 billion for safe drinking water, drought, flood, and water resilience programs • $1.5 billion for wildfire and forest resilience $450 million for extreme heat mitigation • $1.2 billion for biodiversity programs • $300 million for sustainable, climate -smart farms and working lands programs $1.2 billion for coastal resilience programs $700 million for park creation and outdoor access • $850 million for clean air programs • <$20 million for administrative costs • Up to 10% of funds within each funding pot must be allocated to severely disadvantaged communities Budget Following a couple of years of record surpluses driven by an infusion of federal funding, the state took a turn and started 2024 in a deficit to the tune of approximately $37.8 billion. This immediately put the state legislature on notice of difficult decisions to come, and the Governor directed state agencies to freeze any new spending. After the tax filing deadline in April, the deficit continued to grow as tax revenues came in lower than anticipated bringing the deficit to $46.8 billion. To balance the budget, the state largely leaned on reserves, deferrals, funding delays, and borrowing, and took Early Action in April to adjust spending levels. In June, the state passed a preliminary version of the budget after the Governor, Senate, and Assembly agreed on an overall budget plan that compiled input from the Department of Finance and Legislative Budget Subcommittees. At stake over the course of the budget negotiations was funding for core local government programs like Homeless Housing, Assistance and Prevention (HHAP), Regional Early Action Planning (REAP), Active Transportation Program (ATP), and Multifamily Housing Program (MHP). These programs received some adjustments or cuts, however, were overall still maintained in the final budget, due in large part to the advocacy of local agencies. Based on updated revenue estimates and potential impacts on future spending that came in after the budget was passed, the Legislature put together several trailer bills and budget bill "juniors" for routine implementation of the budget. These additional bills ranged in subject area from healthcare, energy, education, and natural resources, and some were passed as late as the last day of Session. Despite revenue fluctuations and overall volatility, the state still met its constitutional obligation to pass a balanced budget. Behavioral Health and Homelessness Proposition 1 Rollout As has been the case in most recent legislative sessions, this year also featured a major focus on behavioral health reforms and homelessness prevention. However, most actions this year centered on the rollout of Proposition 1 funds and regulatory and legal actions related to encampment sweeping. () Page 4 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 Proposition 1 was the only statewide initiative for voter consideration in the March Primary Election. During the 2023 Legislative Session, the Legislature approved AB 531 (Irwin) and SB 326 (Eggman) which comprised a package of reforms to the State's behavioral health care continuum. Specifically, AB 531 authorized $6.38 billion in general obligation bonds to finance permanent supportive housing and behavioral health treatment settings for individuals experiencing homelessness and behavioral health challenges. Notably, the measure contains a $1.5 billion set aside specifically for cities and counties. SB 326 complemented the capital project development goals of AB 531 by revising the Mental Health Services Act (MSHA) to include the expansion of services to individuals with diagnosed mental health disorders and substance use disorders, as well as recasting funding priorities to include the development and maintenance of supportive housing solutions. In late March, following a narrow vote margin, proponents of Proposition 1 announced that the measure won 50.2% to 49.8%, securing enough of a margin to ensure its passage. This measure required a simple majority vote to pass. Under Proposition 1, California will use -$6.4 billion in bond funding to build housing and residential treatment facilities for people with mental illness and will divert more of the State's mental health funding to intensive treatment. The Governor's Administration and the Department of Health Care Services (DHCS) quickly turned around the notice of funding availability for Round 1 of the program, comprised of $3.3 billion for the development of infrastructure to address the clinical needs of individuals struggling with behavioral health or substance use disorders. A subsequent $2 + billion in funding will be available at the end of 2024 for the development of housing solutions. Grants Pass Ruling Impacts on California's Encampments In one of the final cases to be dispensed from the docket, in late June the United States Supreme Court issued a ruling on The City of Grants Pass v. Oregon case, stating that local governments may enforce laws restricting homeless encampments on sidewalks and other public property. In a 6-3 decision, the Supreme Court ruled it is not "cruel and unusual" 8th Amendment violation punishment for city officials to forbid homeless people from sleeping on the streets or in parks. This decision removes legal uncertainties regarding local homeless ordinances. Local governments will now be permitted to uphold or enact local ordinances related to homeless populations and encampments. Historically, since 2018, judicial rulings from the United States Ninth Circuit Court of Appeals held that it was unconstitutional to enforce anti -camping laws against people who had no home and nowhere to sleep. Local government officials have stated those rulings led to the growth of tent encampments in most cities on the West Coast, and as such, they joined an appeal to the Supreme Court seeking to clarify their authority over public property. Following the Supreme Court's decision, Governor Newsom issued an executive order directing state agencies and departments to develop policies for addressing encampments, while encouraging local governments to do the same. According to the new order, state agencies are to model their encampment policies on the approach used by Caltrans, which has been removing camps from highways on and off -ramps, under overpasses, and on other transit agency - maintained land for several years. State agencies are required to give at least 48 hours notice before clearing a camp, store residents' belongings for at least 60 days, and seek services for displaced individuals from local organizations. If an encampment poses an "imminent threat" to life, health, safety, or infrastructure, agencies can remove it immediately. The order also tasks the () Page 5 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 California Interagency Council on Homelessness with developing guidance and providing technical assistance to help local leaders establish effective programs. Flexible Local Homeless Funding and "Local Accountability" The Governor and the Administration continued their plight for local accountability related to the spending of state budget homelessness dollars that are directly allocated to local governments throughout the 2024 Legislative session. While the 2024 budget deficit presented an issue for the continuance of local homelessness dollars, ultimately, the funding was restored due to the persistence of local governments and their existing programs. However, the use of funds was the subject of scrutiny. In 2023, the Joint Legislative Audit Committee initiated an audit of the State's homelessness funding, including an evaluation of the efforts undertaken by the State to address the growing crisis. With over 180,000 Californians experiencing homelessness in 2023, the State Legislature has committed billions of dollars in funding to prevent and end homelessness. In 2018, the Homeless Emergency Aid Program (HEAP) allocated $500 million in block grants, providing direct assistance to localities in addressing homelessness across California. Despite notable progress in recent years, local governments, which are primarily responsible for implementing homelessness programs and collecting data, bore the brunt of effectively evaluating program effectiveness and implementing regional plans to evaluate their effectiveness. As the homelessness crisis has worsened, the State has allocated $24 billion over the past five fiscal years for homelessness and housing programs, according to the Legislative Analyst's Office. Despite budget constraints and proposed cuts, local governments were successful in advocating for the restoration of a number of budget programs, including: Homeless Housing, Assistance, and Prevention (HHAP): HHAP provides local jurisdictions with flexible funding to support regional coordination and to expand or develop local capacity for addressing immediate homelessness challenges. Local leaders underscored the need for ongoing support through HHAP, arguing that regional collaboration is key to long-term solutions. Their advocacy ensured HHAP funding remained a priority in the state's budget, allowing jurisdictions to continue addressing the homelessness crisis at the ground level. This funding was restored in line with previous allocations to the tune of $1 billion, annually, with new requirements for local governments who receive direct allocations to create memorandums of understanding (MOUs) with neighboring jurisdictions regarding the disbursement and use of funds. Encampment Resolution Funding (ERF): ERF offers competitive grants to help local jurisdictions provide services and supports that improve the health and safety of people living in encampments. It focuses on creating meaningful pathways to stable housing. Local governments successfully argued for the program's inclusion in the budget, highlighting the urgent need for resources to address the humanitarian challenges of encampments, while also reducing their public health and safety risks. These funds were continued within the state's budget process, and complement the goals of the Governor's executive order and Grants Pass decision to remove encampments. C% Page 6 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 Energy Income -Tiered Rate Policies and Regulations The 2024 Legislative Session began with a focus on energy reform, including several proposals to repeal provisions of AB 205 (2022). AB 205 had directed the California Public Utilities Commission (CPUC) to develop income -graduated fixed charge for energy bills for customers of Investor -Owned Utilities (IOUs). Under this measure, the CPUC was tasked with working alongside IOUs to establish income -based rates, which were initially proposed to range from $24 per month for low-income earners to $128 per month for households earning $180,000 or more annually. The implementation of AB 205's provisions faced criticism from a range of stakeholders. Environmental groups argued that the proposed joint IOU plan did not sufficiently charge high - income earners their fair share. The solar industry, which relies on high electricity rates to justify the cost of rooftop solar installations, advocated for a shift toward time -differentiated rates to encourage flexible demand. Meanwhile, local agencies called for fixed rates to remain low, with substantial rebates offered to those who electrify by certain deadlines. These concerns led to multiple legislative proposals aimed at repealing AB 205 or introducing oversight measures to prevent future cost shifts. Among these were AB 1999 (Irwin), which sought to repeal the income -based rate escalator, and AB 1912 (Pacheco), which would have mandated a third -party actuarial review of all legislative proposals affecting energy ratepayers. These reviews would have needed to be completed and considered before any final vote. Despite the momentum, both legislative proposals were set aside by leadership amid ongoing internal negotiations involving the Legislature, the Administration, and the CPUC. Concerns over high costs for ratepayers, passthrough provisions, and the potential need for IOUs to access sensitive tax information to determine income levels ultimately led the CPUC to reject the original income -escalated charge proposal. Instead, a new structure was adopted, charging residential customers a flat rate of $24.15 per month, with a reduced rate of $6 to $12 for those enrolled in low-income programs. This new rate was implemented by the CPUC in July. Last Minute Rate Reduction and Clean Energy Bill Proposals As previously mentioned, the final days of the 2024 Legislative Session featured the introduction of numerous late -breaking amendments that inserted new policy proposals into existing bill vehicles. Among these were six measures focused on addressing California's clean energy challenges, specifically meeting mandates for clean, carbon -free energy and reducing some of the nation's highest electric bills. The primary proposal targeting California's escalating electric bills, AB 3121 (Petrie Norris), sought to provide each household with a modest, one-time credit ranging from $30 to $70. The estimated $500 million in savings would have been drawn from cuts to utility programs benefiting low-income residents and schools. Advocates for these programs argued that the proposed cuts would disproportionately harm low-income Californians and children while offering only a minimal reduction in ratepayers' utility bills. This measure ultimately failed to pass before the end -of - session deadline. �� Page 7 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 Another significant proposal, AB 3264 (Petrie Norris), mandates that the Public Utilities Commission study ways to reduce the costs associated with expanding transmission capacity and report on energy efficiency programs funded through consumers' utility bills. This bill successfully passed through the legislature under the tight deadline and is now awaiting the Governor's decision. Other proposals within the late -breaking package that passed the legislative process included SB 1420 (Caballero), which aims to streamline hydrogen facility permitting, and SB 1142 (Menjivar), which seeks to prevent power shutoffs for ratepayers with active payment plans. Two additional bills did not survive the legislative process, including SB 1003 (Dodd), which would have increased oversight of utility wildfire costs. In a statement to the press following the session's close, Senate Pro Tern Mike McGuire expressed his commitment to reintroducing more energy - related proposals next year to build upon the efforts of this package. Housinq and Land Use RHNA Reform As is typical of the Legislature in recent years, the 2024 Legislative Session was keenly focused on housing production and compliance with state housing laws. This included an analysis of the regional housing needs allocation (RHNA) process and improvements that could be implemented prior to the start of Cycle 7. In April, the California Department of Housing and Community Development (HCD) released its entitled California's Housing Future 2040: The Next Regional Housing Needs Allocation (RHNA), outlining dozens of suggested reforms to improve the RHNA methodology, regional determination, and compliance process. A series of bill proposals emerged during the session that aligned with the suggested reforms in the report. This included: AB 3093 (Ward), which creates two new income categories - Acutely Low Income (ALI) and Extremely Low Income (ELI) - in the Regional Housing Needs Determination (RHND), Regional Housing Needs Allocation (RHNA), and Housing Element Law. Creating the ELI and ALI categories will require regions and local governments to develop targeted programs and strategies in their housing elements that cater to the needs of Californians at the lowest end of the income spectrum, including homeless individuals and those at risk of homelessness. This bill drew strong support from the Governor. It passed the Legislature and is awaiting final action. • SB 7 (Blakespear) makes a number of technical changes to the regional housing needs determination (RHND) process conducted by HCD and the regional housing needs allocation process conducted by HCD or Councils of Governments (COGs). This measure passed the Legislature and is awaiting final action from the Governor. Other proposals geared toward reforming the RHNA process included AB 2485 (Carrillo), which would require HCD to convene and engage specified stakeholders to consider improvements to the process of determining the housing needs for each region. The bill would also require HCD to publish specified data and information on its website regarding the decision -making process used to determine regional housing needs. While this bill drew a wide array of support from local stakeholders, it was ultimately held in the second house appropriations committee. () Page 8 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 Builder's Remedy In addition to RHNA reforms, the Legislature this year turned its attention to refining the Builder's Remedy, a provision within the 1982 Housing Accountability Act (HAA) that prevents local governments from denying housing developments that include 20% lower -income units, even if the project does not conform to local zoning laws —provided the jurisdiction has not adopted a compliant housing element. Although several developers have attempted to invoke the Builder's Remedy in recent years, they have largely been unsuccessful. During the session, lawmakers introduced several proposals aimed at clarifying and refining the Builder's Remedy, focusing on legal interpretation, timing, and specific parameters for development projects. These proposals include: • AB 1886 (Alvarez): Clarifies that the Builder's Remedy is triggered by a determination of noncompliance from the Department of Housing and Community Development (HCD). It also specifies that development standards apply only if the city is in compliance, and projects remain eligible if the application was submitted while the city was non -compliant. AB 1893 (Wicks): Establishes guidelines regarding density, underlying zoning, and objective standards that a development must meet to qualify for the Builder's Remedy. It also reduces the required amount of affordable housing for a project to be eligible. • AB 2023 (Quirk -Silva): Introduces a rebuttable presumption of invalidity for housing elements deemed noncompliant by HCD, raising the burden of proof for jurisdictions seeking to challenge or dismiss HCD's noncompliance determination. Despite facing opposition from local agencies, all three bills successfully passed the Legislature and are now awaiting action from the Governor. Coastal Land Use Coastal land use became a central focus during the 2024 Legislative Session, particularly around addressing regulatory misalignment between the Department of Housing and Community Development (HCD) and the California Coastal Commission (CC) regarding housing development in coastal areas. The Coastal Commission, working closely with coastal cities and counties, is responsible for planning and regulating land and water use in the Coastal Zone. Development in these areas typically requires a special coastal development permit (CDP), either from the Commission or from local governments that have a certified Local Coastal Program (LCP). Currently, 73% of the Coastal Zone is governed by LCPs, allowing local governments to issue CDPs according to detailed planning and design standards. In jurisdictions with certified LCPs, permitting decisions can be appealed to the Coastal Commission under specific circumstances. This year, the Legislature sought to address tensions between housing production and coastal preservation, with both HCD and the Coastal Commission representing differing priorities. A key legislative goal was to align housing development efforts with the preservation values overseen by the Coastal Commission. Proposals included measures to increase housing density, synchronize housing element updates with local coastal plans, and clarify which agency holds ultimate regulatory authority in the development process. () Page 9 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 AB 2560 (Alvarez) addressed the intersection of the state's Housing Density Bonus Law and coastal protections. The bill aimed to exempt projects taking advantage of Density Bonus incentives, which allow developers to increase housing units in exchange for affordable housing, from Coastal Act requirements. This measure sparked significant debate around balancing housing needs with coastal environmental protections. A series of amendments from environmental groups that authorized the Coastal Commission unilateral authority over developments within the coastal zone made the bill untenable. At the request of the author and with significant input from local agencies, the bill was held. SB 1077 (Blakespear) focused on simplifying the development of accessory dwelling units (ADUs) in coastal areas. The bill initially required the Coastal Commission to assist cities and counties in updating their LCPs to streamline the permitting process for ADUs and junior ADUs, thereby promoting housing production while ensuring compliance with coastal regulations. However, significant cost concerns were raised by local governments related to the constant need to update LCPs to accommodate the bill's goals. Ultimately, the bill was amended to require HCD to provide technical guidance to local governments on how to streamline ADU permitting within the coastal zone. In addition, SB 951 (Wiener) sought to improve the process of appealing local jurisdiction approvals of coastal development permits. The bill clarifies the grounds for appealing local CDP decisions to the Coastal Commission and authorizes local governments to notify the Commission of final permit actions electronically, among other provisions aimed at enhancing transparency and efficiency. These legislative efforts underscore the complexity of managing coastal land use in California, as policymakers strive to balance the state's urgent need for housing with the imperative to protect its valuable coastal resources. It is anticipated that coastal land use issues will continue to emerge as a priority topic next session. Industrial Land Use Standards In a familiar legislative maneuver, AB 98—previously stalled earlier this year —was revived to establish design standards, electrification requirements, and minimum setback distances for warehouses located near sensitive receptors such as homes, schools, and hospitals. The bill also mandates that local governments update their circulation elements to incorporate truck routes, signage, parking, and idling restrictions, with enforcement led by the Attorney General. Weeks before the end of the legislative session, rumors emerged that stakeholders had returned to negotiations to reach a new agreement on warehouse development and zoning standards. When the language was finalized, the Laborers' International Union of North America and the California Chamber of Commerce took the lead in advocating for the revised bill. Although CalChamber officially maintained a "neutral" stance, it encouraged its members to support the compromise despite having opposed the prior version of the warehouse bill, AB 1000, from last year. Local government organizations, once again excluded from the drafting process, launched an opposition campaign due to the increased financial and legal burdens imposed on cities and counties. Similarly, environmental justice groups opposed the bill, citing concerns over provisions that would allow warehouse and distribution center development to continue near sensitive areas. After moving through policy and fiscal committees in the final 72 hours of the session, the bill encountered delays caused by political maneuvering between Senate and Assembly leadership, () Page 10 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 who were negotiating which bills to prioritize in the final days. Just 30 minutes before the midnight deadline, AB 98 passed the Assembly floor and was transmitted to the Governor. The narrow vote margins and impassioned speeches on both legislative floors underscored the contentious nature of the bill and the rushed legislative process. It is expected that further amendments will be required to address unresolved issues in the next legislative session. Revenue and Taxation In 2024, revenue and taxation policy took center stage, with various significant developments, including the looming threat of the Taxpayer Protection and Government Accountability Act, ongoing legislative efforts such as ACA 1 (Aguiar-Curry) to provide local governments with more financing tools for housing production, and proposals aimed at reducing impact fees. Taxpayer Protection Act After years of opposition, the California Supreme Court ruled unanimously in June, barring the Taxpayer Protection Act from appearing on the November General Election ballot. The measure would have severely restricted the ability of state and local governments to implement or maintain taxes and fees by retroactively nullifying recently passed tax measures, raising voter approval thresholds, and creating legal vulnerabilities for taxes and fees. The Court's decision was based on the initiative's far-reaching scope, which it deemed exceeded a simple constitutional amendment and instead represented a fundamental revision of state and local governance, requiring a constitutional convention. Although this outcome was positive for local agencies, it allowed the measure's proponents to redirect their resources and political influence elsewhere. ACA 1 /ACA 10 / Proposition 5 The Legislature passed ACA 1 (Aguiar-Curry), which, pending voter approval, would allow local governments to incur bonded indebtedness or impose special taxes for housing and infrastructure projects with 55% voter approval. Initially set for the March primary ballot, ACA 1 was moved to the November 2024 election due to political calculations surrounding the passage of Proposition 1. Concerns from stakeholders like the California Association of Realtors, which sought to exclude smaller properties from the measure's financing eligibility, led to the introduction of ACA 10 and AB 2810 in 2024. ACA 10 stripped the special tax provisions from ACA 1, leaving only the 55% threshold for bond approval intact. AB 2810 included the compromise with the realtors to exclude the application of bond financing housing projects under 5 units. The revised measure now appears on the November ballot as Proposition 5, which, if approved, would empower local agencies to pass revenue bond measures for affordable housing and public infrastructure projects with a reduced voter threshold. Impact Fees Housing affordability remained a central legislative theme in 2024, with impact fees and exactions targeted as contributors to high development costs. A critical decision from the U.S. Supreme Court this year mandated that local governments establish a clear "essential nexus" between development projects and the fees they impose, ensuring that fees are "roughly proportional" to () Page 11 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 the actual impact of the development. This ruling has the potential to significantly affect local government revenue streams. In addition, the Legislature advanced several measures aimed at limiting or deferring impact fees, including: SB 937 (Wiener), which defers certain development fees until a certificate of occupancy is issued. It also locks in impact fees before a building permit is granted and prohibits indexing fees for inflation or charging interest on deferred fees. While local governments opposed the measure, it passed and may see further refinement in future sessions. AB 1820 (Schiavo), which creates a framework for developers to receive preliminary and final estimates of project -related fees and exactions within specific timeframes. Both bills passed the Legislature and are currently awaiting action from the Governor. Labor and Employee Relations At the outset of the legislative session, several bills were introduced by progressive lawmakers, with backing from major labor organizations, including the American Federation of State, County, and Municipal Employees (AFSCME), the California Labor Federation, and the California State Council of the Service Employees International Union (SEIU). These labor groups, alongside numerous employee advocacy organizations, have recently prioritized addressing the reported labor shortages in the public sector. According to a recent study by the UC Berkeley Labor Center, vacancy rates in county job positions within three of California's most populous counties are now 1.5 to 2 times higher than they were prior to the COVID-19 pandemic. In response to these vacancy rates and workforce gaps, several pieces of legislation were introduced, seeking to increase transparency in public sector bargaining unit vacancies and to promote the hiring of internal labor over consultants. These measures also included substantial data reporting requirements for existing consultants and contractors in the public sector, aiming to support arguments in favor of using internal labor groups for essential tasks. The principal bills —AB 2557 (Ortega) and AB 2651 (McKinnor)—faced significant opposition from local governments and business interests during the legislative process. Despite this resistance, both bills successfully advanced through policy committees, largely along party lines, due to robust support from labor advocates among committee members. However, AB 2557 (Ortega), which would have required extensive reporting and auditing on public sector contracting, failed to pass the Senate Appropriations Committee before the legislative deadline and was shelved for the year. In contrast, AB 2561 (McKinnor), mandating that local public agencies with more than a 20% vacancy rate in any bargaining unit publicly present updates on vacancies, recruitment, and retention efforts at least once per fiscal year, passed the Legislature in the final days of the session and now awaits action by the Governor. Additionally, two weeks before the legislative session's close, SB 399 (Wahab) was amended. Originally introduced in 2023, the bill pertains to employee intimidation and aims to prevent employers from retaliating against or threatening employees who refuse to attend mandatory meetings where the employer communicates political or religious opinions. A key concern for local governments is the broad definition of "political," which encompasses issues related to elections, political parties, legislation, regulation, and decisions to join or support political or labor () Page 12 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 organizations. While the bill's intent —to prohibit employers from expressing inappropriate political opinions during mandatory meetings —is laudable, its broad language could inadvertently encompass routine job duties of local government employees, such as analyzing state or federal regulations or attending city council meetings where legislation is discussed. Despite only being reintroduced late in the session and facing strong opposition from local government advocates, SB 399 (Wahab) passed and now awaits the Governor's signature. Public Safety This year, Governor Newsom and legislative leadership in both houses prioritized addressing retail theft, resulting in a comprehensive public safety package. After several Retail Theft Select Committee hearings, a series of bills emerged and were signed by the governor on August 16 as part of an early action public safety initiative. These measures aim to enhance public safety statewide without amending Proposition 47 (2014). The key bills include: • AB 1779 (Irwin): restores cross -jurisdictional prosecutions for thefts committed in more than one county. • AB 1802 (Jones -Sawyer): makes permanent the crime of organized retail theft and the operation of the CHP property crimes task force. • AB 1960 (Soria): provides enhanced penalties for individuals who take or destroy property while committing a felony (smash and grab). • AB 1972 (Alanis): expands the CHP property crimes task forces to combat increased levels of cargo theft. • AB 2943 (Zbur, Speaker Rivas): creates the new crime of unlawful deprivation of a retail business opportunity and makes changes to law on arrest authority, aggregation, and probation terms for theft -related offenses. • AB 3209 (Berman, Speaker Rivas): authorizes courts to impose a Retail Crime Restraining Order on repeat offenders. • SB 905 (Wiener): creates a new alternate felony -misdemeanor for any person who forcibly enters a vehicle with the intent to commit a theft • SB 982 (Wahab): eliminates the sunset date for the crime of retail theft and the existence of a CHP taskforce to analyze organized retail theft activities • SB 1416 (Newman): creates new sentencing enhancements for selling property acquired through shoplifting Despite these legislative advancements, concerns remain among some public safety advocates that avoiding amendments to Proposition 47 may not sufficiently deter retail theft or enhance community safety. These concerns led to the launch of a ballot initiative, backed by District Attorneys, aiming to introduce stricter penalties for theft and drug -related crimes. Proposition 36 (Drug and Theft Crime Penalties and Treatment -Mandated Felonies Initiative), now qualified for the November ballot, proposes key changes to existing laws, including harsher penalties for serial theft offenders, increased felony charges for organized retail theft involving three or more people, and extended sentences for drug -related offenses involving substances like fentanyl, heroin, and methamphetamine. Initially, Governor Newsom introduced "poison pill" amendments to his retail theft package, which would have nullified the newly signed bills if Proposition 36 passed. However, following significant backlash, the nullification provisions were removed prior to final approval of the bills. () Page 13 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 In November, voters will decide on Proposition 36, which proposes rolling back aspects of Proposition 47 by restoring harsher penalties for serial theft offenders and drug traffickers, among other reforms. The initiative also introduces a "treatment -mandated felony" option for individuals charged with drug possession, allowing for charges to be dismissed upon completion of a rehabilitation program. Additionally, it would require courts to warn drug dealers that they could face murder charges if their actions result in a death. Because the Governor's Retail Theft Package avoids amending Proposition 47 and Proposition 36 explicitly seeks to amend the 2014 initiative, both measures could be enacted without conflict, taking effect in January 2025. This dual approach could strengthen public safety by increasing accountability for offenders and providing additional enforcement tools, all while avoiding the pitfalls of past policies that contributed to prison overcrowding. After a decade of debate on Proposition 47's impact, California voters will have the opportunity to shape the state's approach to addressing retail theft and public safety moving forward. Fire Insurance At the conclusion of the 2023 Legislative Session, the Governor and the Insurance Commissioner took significant action through an executive order and regulatory proceedings to enact changes aimed at stabilizing California's insurance market and retaining insurance companies in the state. This initiative focused on four key objectives: (1) Expanding insurance coverage in high -risk areas, (2) Modernizing the FAIR Plan to reintegrate members into the standard insurance market, (3) Updating rate review and filing timelines, and (4) Allowing the use of advanced catastrophic modeling tools. The latest draft regulations, last revised at the beginning of the year, specify the requirements for insurance companies wishing to use forward -looking catastrophe models for setting rates. Under these draft regulations, insurers must either offer policies in high -risk areas that represent at least 85% of their statewide market share or increase the number of plans in these areas by 5%. Additionally, insurers are required to consider wildfire mitigation efforts implemented by policyholders. A policy qualifies as being in a high -risk area if it is located in a county or ZIP code designated as distressed, undermarketed, and high -risk. A county is classified as "distressed" if more than 20% of its residential properties with fewer than five units are rated as "high" or "very high" risk by CAL FIRE. These designations will be reviewed and updated annually. The designated counties currently include Alpine, Amador, Butte, Calaveras, Del Norte, El Dorado, Humboldt, Lake, Lassen, Marin, Mariposa, Mendocino, Modoc, Mono, Monterey, Napa, Nevada, Placer, Plumas, San Luis Obispo, Santa Cruz, Shasta, Sierra, Siskiyou, Tehama, Trinity, Tuolumne, and Ventura. Following the release of these draft regulations, the Insurance Commissioner announced additional amendments to the FAIR Plan, California's insurance program designed to provide coverage to residents and businesses in both urban and rural areas who cannot secure insurance through the standard market. These changes, part of an agreement between the Department of Insurance and the California FAIR Plan, include provisions for recouping losses by imposing surcharges on residential and commercial insurance policies across the state in "extreme worst - case scenarios." Under the current framework, the FAIR Plan is responsible for paying claims once its reserves, reinsurance, and catastrophe bonds are depleted. The new agreement stipulates that, should () Page 14 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 these funds be exhausted, insurers will be required to cover up to $2 billion in FAIR Plan claims— $1 billion for residential and $1 billion for commercial policies. Insurers can then, with the insurance commissioner's approval, temporarily surcharge their policyholders for up to half of the amount assessed. It is important to note that homeowners will not be surcharged for commercial losses; only commercial policyholders will bear those costs. Additionally, insurers may surcharge policyholders for 100% of claims exceeding these amounts, pending the insurance commissioner's approval. This restructuring of the FAIR Plan is a component of Commissioner Lara's broader Sustainable Insurance Strategy, a series of executive actions designed to stabilize California's insurance market. These actions come in response to the growing reluctance of insurers to issue new policies or renew existing ones, particularly in areas with high wildfire risks, due to the surge in wildfire -related claims. As insurers have withdrawn from high -risk areas, the number of residential FAIR Plan policies has more than doubled since 2019, reaching approximately 408,000 as of June. Similarly, the number of commercial policies under the FAIR Plan has increased to 11,026. The FAIR Plan will implement a Plan of Operation that includes the following: • Expanded Coverage: Introducing a new "high -value" commercial coverage option with limits up to $20 million per building, alongside past increases for residential policies. • Financial Stability: Establishing a sound financial formula to protect policyholders in extreme loss scenarios. • Improved Transparency: Requiring enhanced public reporting on FAIR Plan activities and customer service metrics. In alignment with the Administration's and Legislature's objectives, this regulatory process has advanced without intervening legislation during the 2024 Session. Various legislative proposals, including those seeking to increase oversight of insurance modeling tools and mandate consideration of home hardening practices for rate reductions, did not pass due to concerns that they might disrupt market conditions and the ongoing regulatory process. This includes Senator Becker's SB 1060, which would have required insurers using risk models for underwriting to account for wildfire risk reductions achieved through hazardous fuel reduction, home hardening, and defensible space. The bill would have also authorized the Department of Insurance to examine underwriting models for compliance and issue necessary orders. The Department of Insurance plans to adopt these regulations by the end of 2024. Issues concerning coverage affordability and availability will likely be addressed through legislation in the coming year. Transportation As with many other areas, funding dominated the conversation on transportation in 2024. In 2023, through SB 125, the Legislature appropriated $2 billion from the General Fund, with a promise of an additional $2 billion in 2024, to the Transit and Intercity Rail Capital Program. These funds were allocated based on a population -based formula for regional transportation planning agencies, offering flexibility to support both transit operations and capital improvements. SB 125 also established the $1.1 billion Zero -Emission Transit Capital Program, which allocated funds for zero -emission transit equipment and operations through both population -based and revenue - based formulas. () Page 15 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 However, the state's fiscal challenges in 2024 significantly impacted transportation funding. Facing a multibillion -dollar General Fund deficit, the Governor's January budget proposal reduced the promised SB 125 funding for 2024-25 from $2 billion to $1 billion. By April, the Department of Finance went further, freezing the $2 billion allocated in the current year. Nevertheless, the Legislature employed creative budgetary tactics, shifting the funding source from the General Fund to cap -and -trade revenues, enabling them to preserve $1 billion in this year's budget for the SB 125 program, with the remaining $1 billion deferred to future years. In July, the Department of Finance unfroze last year's funding, allowing regional agencies to finally access the SB 125 resources. Despite these efforts, budget experts are predicting another deficit in next year's budget, raising concerns that next year's promised transit set -asides may be delayed or cut. While transportation funding was largely preserved this year, the outlook remains uncertain for the future. On the policy front, the Legislature passed several significant transportation -related measures: SB 960 (Wiener) mandates that Caltrans include "complete streets" elements in its asset management plan, system highway management plan, and the performance report for the State Highway Operation and Protection Program (SHOPP). The bill also requires Caltrans to adopt a transit priority policy, develop guidelines, and set specific four-year targets for incorporating complete streets facilities into SHOPP. • SB 1098 (Blakespear) directs the California State Transportation Agency (CaISTA) to submit a report to the Legislature within two years on the long-term viability of the Los Angeles -San Diego -San Luis Obispo (LOSSAN) Rail Corridor. The bill also requires the CaISTA Secretary to convene a working group of stakeholders to develop recommendations for improving coordination and service along the corridor. These policy measures reflect the Legislature's ongoing efforts to address both immediate transportation needs and long-term sustainability in the face of fiscal challenges. The 2025-26 legislative session marks the start of a new two-year cycle, introducing a fresh slate of bills and policy initiatives when lawmakers reconvene in January. This session will be particularly notable for significant leadership transitions, with over 25% of both legislative houses turning over as new freshman members take office. Additionally, the session will coincide with the final two years of Governor Gavin Newsom's administration, as his term concludes in 2026. Senate President Pro Tern Mike McGuire will also serve his final term under the same limits, initially expected to provide continuity until a longer -serving successor takes the reins. Below is an overview of the key issues and policy debates anticipated to dominate the 2025 session. Budget Outlook Leading into this year's budget deficit, the Legislative Analyst's Office (LAO) anticipated future structural shortfalls of about $30 billion per year until 2028. The LAO identified spending reductions and revenue (tax) increases as difficult decisions on the horizon. In an election year, tax increases were immediately off the table but could be considered in the future as a component of larger reforms or solutions. To increase state revenue without directly raising taxes, one tool () Page 16 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 the state used was a suspension of the net operating loss (NOL) deduction for California businesses until 2027. The business community has rallied to reinstate the NOL deduction, or at least guarantee the suspension is not extended even more. Another target of reform is the State Appropriations Limit, colloquially known as the Gann Limit, which institutes a cap on state and local spending intended to control the growth in year over year spending. Between the 2021-22 and 2022-23 budget years, the state faced issues with the Gann limit as its spending plan exceeded the set limits, which resulted in additional qualified capital outlay spending and taxpayer rebates as a solution to exclude spending from the appropriations limit. The Gann Limit has been considered a constraint on the state's ability to make investments in its top priorities, so there have been minor reforms suggested by lawmakers and stakeholders. A recent reform counted realignment revenues to local government against local governments' limits, which freed up billions of dollars under the state's limit. Broader reforms would have to go back to the ballot because the Gann Limit was created by Proposition 4 in 1979 and is enshrined in the state's Constitution. The most recent cash receipts are 10% above the Budget Act forecast for July, and since April, General Fund agency cash receipts have been $4.2 billion above projections. The summer is not a particularly busy time for revenue collection, and with future deficits still anticipated the state will need more fiscal prudence over the next few years. nd Trade Reauthorization California's Cap -and -Trade Program will reduce greenhouse gas (GHG) emissions by setting a firm cap on statewide GHG emissions from major sources, which is measured in metric tons of carbon dioxide equivalent (MTCO2e). This cap will decline over time. Each covered entity (major polluter) is required to surrender one "permit to emit" for each ton of GHG emissions they emit. Some covered entities will be allocated some allowances and will be able to buy additional allowances at auction, purchase allowances from others, or purchase offset credits. The "cap" on GHG emissions that drive global warming is a firm limit on pollution. The cap gets stricter over time. The "trade" part is a market for companies to buy and sell allowances that let them emit only a certain amount, as supply and demand set the price. Trading gives companies a strong incentive to save money by cutting emissions in the most cost-effective ways. Money secured through the Cap -and -Trade Program goes to fund several programs, including large transportation programs. One of these programs is the Transit and Intercity Rail Capital Program (TIRCP), which is the state's most significant source of funding for large-scale public transit projects. Many transit operations and authorities are reliant on TIRCP for State Funding to help build their climate friendly transit projects. Furthermore, many of these same operators and authorities NEED future funding commitments from TIRCP in the coming years in order to meet their Non -Federal cost share obligations, allowing them to stay in major federal funding programs such as the Federal Transit Administration's New Starts Program. Large transportation projects need reliable funding over many years as they take years (and sometimes decades) to complete. TIRCP is a five-year program in which the state estimates revenues over the next five years and plans how much each of those years it will be able to provide for each project. The out years comprise the new capacity for the program, so in 2026 () Page 17 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 the TIRCP program will have limited out -year revenues if Cap and Trade does extend beyond 2030. If the Legislature and Governor's Administration do not reauthorize the Cap -and -Trade program this year, there is the very real possibility of California losing out on Tens of Billions of Federal Dollars. The Governor has committed to tackling the reauthorization before the end of his term in 2026. It is likely the conversations will begin next year as the negotiations may take some time to reach a compromise. Community Reinvestment Pending official scheduling, the Assembly Committee on Community Reinvestment, Chaired by Assembly Member Papan (D-San Mateo), will hold an informational hearing during the Legislature's interim recess to discuss the dissolution of redevelopment, existing local revenue financing tools, and ideas to build upon efforts to create a more equitable system wherein local governments can keep pace in meeting state housing goals and development needs without relying solely on state subsidies. While the specific details of policy reform proposals are still in the works, the hearing signifies a will from the legislature to create and improve revenue - generating regimes at the local level. Decline of Transportation Funding For decades, California has been a national leader in fighting climate change, utilizing many different initiatives and programs to reduce greenhouse gas (GHG) emissions in the state. To pursue this effort, the California Air Resources Board (CARB) regularly updates its Scoping Plan to lay out the state's strategy for achieving its goals. Among other things, the Scoping Plan includes specific policies targeted at increasing the adoption of zero -emission vehicles (ZEVs), increasing the use of lower -carbon fuels, and reducing the number of vehicle miles traveled (VMT). While these efforts should assist in accomplishing CARB's mission of GHG reduction, it will come at a cost. In a recent report titled "Assessing California's Climate Policies — Implications for State Transportation Funding and Programs," the Legislative Analyst's Office (LAO) estimates how much meeting the state's GHG reduction goals could impact existing state transportation revenues and programs. The news is not good. Specifically, the LAO concludes that CARB's policy directives for GHG emission reduction will have dramatic negative impacts on the state's transportation revenues. This is because the vast majority of transportation funding in California is derived from taxes on motor fuels such as gasoline and diesel. If people are driving more fuel -efficient vehicles (or zero -emission vehicles), and are driving fewer miles in total, then the state is collecting less fuel tax revenues. Compared to current transportation funding levels, the LAO projects dramatic revenue declines over the next decade from the state's gasoline excise tax ($5 billion or 64 percent), diesel excise tax ($290 million or 20 percent), and diesel sales tax ($420 million or 20 percent). On net, the LAO estimates that if the state follows CARB's Scoping Plan to reduce GHGs, annual state transportation revenues will decline by $4.4 billion (31 percent) over the next decade as compared to current levels. () Page 18 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 The projected revenue declines will result in certain state transportation programs having less capacity to support state and local transportation projects and activities. For instance, the LAO projects funding for Caltrans' highway maintenance programs will drop by roughly $1.5 billion (26 percent) over the next decade, from $5.7 billion to $4.2 billion. In addition, the LAO estimates that the State Transit Assistance program, which funds local transit operations, will experience funding declines of about $300 million by 2034-35, or about one-third of its total funding. In cases where programs distribute funding to local governments, such as for local streets and roads and transit, the magnitude of the impacts will vary across jurisdictions. In general, jurisdictions that historically have been more dependent on state funding for their local efforts will experience greater impacts across their transportation systems, likely resulting in reduced services and/or poorer road conditions for their residents. In order to maintain our local streets and roads and transit funding, one of two things must happen: either the state needs to reverse its efforts to reduce GHG emissions from the transportation sector (which is highly unlikely), or the state will need to find an alternative funding source for its transportation needs. While the state has several approaches it could pursue to replace the dwindling tax revenues, each comes with various benefits and trade-offs that will need to be considered. The LAO proposes options for addressing the funding gaps which include: • Increasing existing fuel taxes to try and maintain funding levels • Increasing other existing vehicle fees to replace the dwindling fuel tax revenues • Supplementing with other funding sources like the General Fund or Cap -and -Trade revenues • Implementing a new mechanism for collecting transportation revenue e.g. a road charge • Implementing new taxes on alternative fuels and dedicating the revenues to transportation It is possible the Legislature begins serious deliberations on this issue in the coming year. If it pushes this to future years, the problem will continue to grow and more impactful solutions will be required. Fire InsurancP The public comment period is officially open for CDI's proposed regulations to allow insurers to use forward -looking "catastrophe modeling" when setting rates, as opposed to using data from historical losses. This model is intended to provide more accurate pricing for insurance rates and has been advocated by insurance companies and the Insurance Commissioner who both cite climate change as a significant risk for more wildfires. Another set of recently implemented reforms for the insurance market will streamline the department's rate approval process that currently lacks clarity and often slows down new rate requests. The new process will bring transparency and consistency in the rate filing process, which will also demand complete rate filings from insurance companies and good faith from intervenors. Next, CDI will hold a public hearing on the catastrophe modeling regulations on September 17 and plans to enact the new regulations in December. Also on September 17, the Assembly Insurance Committee will hold an Oversight Hearing in Los Angeles for updates on the progress of CDI's Sustainable Insurance Strategy. The Legislature will stay acutely involved in reforming California's insurance market. A proposed trailer bill to expedite insurance rate filings failed to pick up traction and CDI pivoted to the regulatory process, but there will certainly be more legislative action from individual members. So far in 2024, wildfires have burned over 800,000 () Page 19 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 acres and damaged or destroyed over 1,200 structures. An active wildfire season is a key indicator of legislative activity the following year. Proposals that failed to pass this year will also likely be reintroduced as a starting point for legislative negotiations in early 2025. () Page 20 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 T 0 W N S E N D P U B L I C A F FA I R 5 TPA City of Tustin Legislative Matrix AB 52 (Grayson, D) Income tax credit: sales and use taxes paid: manufacturing equipment: research and development equipment. Status: 08/29/2024 - Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0.). 1st House 2nd House I]pck PpIiry Fi stsl Flp r prsk Pnhi , Filial Floor (-,PrK. rc E—P1140 VMord Chmpltrrd Location: 08/29/2024 - Assembly ENROLLMENT Summary: The Bradley -Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Exemptions from state sales and use taxes are automatically incorporated into the local tax laws. The Sales and Use Tax Law imposes state taxes on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The Sales and Use Tax Law provides various exemptions from those taxes, including a partial exemption from those taxes, on and after July 1, 2014, and before July 1, 2030, for the gross receipts from the sale of, and the storage, use, or other consumption of, qualified tangible personal property, as defined, that is, among other things, purchased by a qualified person for use primarily in manufacturing, processing, refining, fabricating, or recycling of tangible personal property, as specified, or purchased for use by a qualified person to be used primarily in research and development. Current law prohibits the exemption described above from applying with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, the Bradley -Burns Uniform Local Sales and Use Tax Law or the Transactions and Use Tax Law, sales and use taxes imposed pursuant to certain provisions of the Sales and Use Tax Law, and sales and use taxes imposed pursuant to certain provisions of the California Constitution. The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill would allow, for a taxable year beginning on or after January 1, 2025, and before January 1, 2030, a credit against those taxes to a taxpayer in an amount equal to the amount of tax reimbursement paid during the taxable year for sales tax on gross receipts that would be exempt from taxation under the Sales and Use Tax Law pursuant to the sales and use tax exemption described above but for the provision that prohibits that exemption from applying with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, the Bradley -Burns Uniform Local Sales and Use Tax Law or the Transactions and Use Tax Law, sales and use taxes imposed pursuant to certain provisions of the Sales and Use Tax Law, and sales and use taxes imposed pursuant to certain provisions of the California Constitution. (Based on 09/03/2024 text) AB 262 (Holden. D) Children's camps: safety and regulation. Status: 08/27/2024 - Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0.). 1st House 2nd House 11os1, Policy Fiscal Floor prsk Pnli�y FI-1 Floor E-61W Vetoed CHapbc d Location: 08/27/2024 - Assembly ENROLLMENT Summary: The California Community Care Facilities Act generally provides for the licensing and regulation of community care facilities, including child daycare facilities, by the State Department of Social Services. Current law also requires the State Public Health Officer to establish rules and regulations establishing minimum standards for organized camps, defined as a site with a program and facilities established for the primary purposes of providing an outdoor group living experience with social, spiritual, educational, or recreational objectives, for 5 days or more during one or more seasons of the year, except as specified. This bill, subject to an appropriation by the Legislature for this purpose, would require the State Department of Social Services to prepare a report, in consultation with a wide variety of stakeholders, regarding approaches for children's camp health and Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 safety regulation and oversight. The bill would require the stakeholder group to be composed of representatives of designated state entities, including, but not limited to, the State Department of Public Health and the State Department of Education, and other stakeholders, such as parent advocate groups and local parks and health departments. The bill would require the department, following consultation with the stakeholder group, and within 24 months after funds are appropriated, to submit its recommendations in a report to the Legislature, as specified. (Based on 08/29/2024 text) AB 440 (Pellerin, D) Ballot measures. Status: 07/03/2024 - Chaptered by Secretary of State - Chapter 82, Statutes of 2024 1st reuse and House Desk Policy Fiscal Floor Desk Policy FSC&I Roar Co-dCo-x, Enrolled Vetoed Chapt.-d Location: 07/03/2024 - Assembly CHAPTERED Summary: Current law requires a constitutional amendment, bond measure, or other measure submitted to the people by the Legislature to appear on the ballot of the first statewide election occurring at least 131 days after the adoption of the proposal. Pursuant to the time limit specified above, Assembly Constitutional Amendment 13 (ACA 13) of the 2023-24 Regular Session is scheduled to appear on the ballot of the statewide general election occurring on November 5, 2024. If approved by the voters, ACA 13 would provide that an initiative measure that includes one or more provisions that amend the Constitution to increase the voter approval requirement to adopt any state or local measure is approved by the voters only if the proportion of votes cast in favor of the initiative measure is equal to or greater than the highest voter approval requirement that the initiative measure would impose. ACA 13 would specify that this requirement applies to statewide initiative measures that appear on the ballot on or after January 1, 2024. ACA 13 would also expressly authorize a local governing body to hold an advisory vote for the purpose of allowing voters within the jurisdiction to voice their opinions on an issue. This bill would call a special election to be consolidated with the statewide general election scheduled for November 3, 2026, and would instead require the submission of ACA 13 to the people at that election. (Based on 07/03/2024 text) AB 453 (Cervantes, D) District -based elections. Status: 08/26/2024 - Chaptered by Secretary of State - Chapter 195, Statutes of 2024 1st reuse and House - — ! —9_* Desk Policy Fiscal Floor DVO Pnl:y ri—,i rinnr CwdConc, Enrolled Veoed Chaptumd Location: 08/26/2024 - Assembly CHAPTERED Summary: Current law requires a political subdivision that changes from an at -large method of election to a district -based election, or that establishes district -based elections, to perform various actions before a public hearing at which it votes upon an ordinance establishing district -based elections. Among these actions, the political subdivision must hold at least 2 public hearings before drawing a draft map of the proposed boundaries and at least 2 public hearings after all maps are drawn, and invite the public's input at these hearings. This bill would require a public hearing concerning district -based elections, as described above, that is consolidated with a meeting of the governing body of the political subdivision that includes other substantive agenda items, to begin at a fixed time regardless of its order on the agenda. The bill would require the governing body to provide notice of the hearing to the public. (Based on 08/26/2024 text) AB 460 (Bauer -Kahan, D) State Water Resources Control Board: water rights and usage: civil penalties. Status: 08/30/2024 - In Assembly. Concurrence in Senate amendments pending. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 65. Noes 5.). 1st House and House Dock Policy Fiscal Floor DeSk Policy Fiy 1 Mor Co d.Conc. En- Il.d Vctocd Ch,pbered Location: 08/30/2024 - Assembly ENROLLMENT Summary: Under current law, the diversion or use of water other than as authorized by specified provisions of law is a trespass, subject to specified civil liability. This bill would require the State Water Resources Control Board to adjust for inflation, by January 1 of each year, beginning in 2026, the amounts of civil and administrative liabilities or penalties imposed by the board or in water right actions brought at the request of the board, as specified. (Based on 09/04/2024 text) AB 799 (Rivas. Luz, D) Interagency Council on Homelessness: funding: state programs. Status: 08/28/2024 - In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 30 pursuant to Assembly Rule 77. Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 157 Hwse 2nd House Desk Policy Fr5cal Flour QeSk Poky Fiscal Floor Cord,Cdnc, Enr ll*d Veord Clhap[ered Location: 08/28/2024 - Assembly ENROLLMENT Summary: Current law requires the Governor to create an Interagency Council on Homelessness, consisting of specified members. Among other goals, existing law requires the council to coordinate existing funding and applications for competitive funding. Current law requires the council to create a statewide data system, which is known as the Homeless Data Integration System, that collects local data through the Homeless Management Information System, with a goal of matching data on homelessness to programs impacting homeless recipients of state programs. Current law also requires the council to collect, compile, and make available to the public financial data provided to the council from all state -funded homelessness programs. Current law defines state programs as any programs a California state agency or department funds, implements, or administers for the purpose of providing housing or housing -based services to people experiencing homelessness or at risk of homelessness, except as specified. This bill would additionally require the council to include the Governor's Tribal Advisor. The bill would remove the above -mentioned reference to competitive funding and would instead require the council to coordinate applications for funding. The bill would require council staff to develop and regularly maintain a strategic funding guide and a calendar of new or existing funding opportunities. The bill would require agencies and departments administrating state programs to provide the council updated information on new or existing funding opportunities on a quarterly basis. The bill would also require council staff to collect fiscal and outcome data, as defined, from state agencies and departments administering state homelessness programs with a grantee or entity that is required to enter data elements on the individuals and families it serves into its local Homeless Management Information System, as specified. (Based on 08/31/2024 text) AB 863 (Aguiar-Curry, D) Carpet recycling: producer responsibility organizations: fines: succession: training. Status: 08/31/2024 - Read third time. Passed. Ordered to the Assembly. (Ayes 24. Noes 9.). In Assembly. Concurrence in Senate amendments pending. Senate amendments concurred in. To Engrossing and Enrolling. 1st House 2nd House n1 k Policy Fiscal Floor Desk P0,.r Fi ,,, Floor COW..Conc. Enroll.d Vetoed 1>r pbr d Location: 08/31/2024 - Assembly ENROLLMENT Summary: The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, generally regulates the disposal, management, and recycling of solid waste. The act establishes stewardship programs for various products, including, among others, carpet. The act requires a manufacturer of carpets sold in this state, individually or through a carpet stewardship organization, to submit a carpet stewardship plan to the department, which is required to include specified elements, including achieving specified carpet recycling rates and a funding mechanism that provides sufficient funding to carry out the plan. The act requires the funding mechanism to establish and provide for a carpet stewardship assessment to be added to the purchase price of carpet sold in the state by a manufacturer to a California retailer or wholesaler or otherwise sold for use in the state and requires each retailer and wholesaler to add the assessment to the purchase price of all carpet sold in the state. The act requires a manufacturer or carpet stewardship organization submitting a carpet stewardship plan to pay the department an administrative fee, as determined by the department, and imposes administrative civil penalties upon a person who violates these provisions. The act requires the carpet stewardship organization to provide various reports to ensure compliance with these provisions. This bill would require a carpet stewardship organization to include nonvoting board members, as specified, and would require the carpet stewardship organization to pay the travel costs and other expenses for those nonvoting members to participate in all board meetings. The bill would require a carpet stewardship organization to be responsible for, and make decisions regarding, a carpet stewardship plan, as specified. The bill would prohibit a carpet stewardship organization from delegating any responsibility of its board of directors or any decisionmaking responsibility to a person who is not a member of its board of directors. The bill would require a carpet stewardship organization to allocate 8% of the assessments it collects for grants to apprenticeship programs, as provided. The bill would authorize the department to audit a carpet stewardship organization and a manufacturer annually. (Based on 09/05/2024 text) AB 1034 (Grayson, D) Labor Code Private Attorneys General Act of 2004: exemption: construction industry employees. Status: 08/31/2024 - Senate amendments concurred in. To Engrossing and Enrolling. 1st House 2nd House rlq Sk poicy FF cC l Flour Desk Ppli" Fytpl Floor CM40)-1c Enroll*d Veocd Chap Mred Location: 08/31/2024 - Assembly ENROLLMENT Summary: The Labor Code Private Attorneys General Act of 2004 (PAGA) exempts, until January 1, 2028, from its provisions an employee in the construction industry with respect to work performed under a valid collective bargaining agreement in effect any time before January 1, 2025, that expressly provides for the wages, hours of work, and working conditions of employees, Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 premium wage rates for all overtime hours worked, and for the employee to receive a regular hourly pay rate of not less than 30% more than the state minimum wage rate, and does certain things, including prohibits all of the violations of the Labor Code that would be redressable pursuant to PAGA and provides for a grievance and binding arbitration procedure to redress those violations. This bill would delete the January 1, 2025, date described above and would extend the sunset of the exemption described above until January 1, 2038. (Based on 09/05/2024 text) AB 1168 (Bennett, D) Emergency medical services (EMS): prehospital EMS. Status: 08/27/2024 - Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 69. Noes 0.). 1st House 2nd House D-k Polity FfStbl Floor PM riyrul Floor Co.d.Cooc. Enroll.d Vexed Chapte d Location: 08/27/2024 - Assembly ENROLLMENT Summary: Current law requires a county to enter into a written agreement with a city or fire district that contracted for or provided prehospital EMS as of June 1, 1980. Current law requires, until that written agreement is reached, prehospital EMS to be continued at not less than the existing level and the administration of prehospital EMS by cities and fire districts contracting for or providing those services as of June 1, 1980, to be retained by those cities and fire districts. This bill would require a city to be treated as if it had retained its authorities regarding, and the administration of, prehospital EMS if specified requirements are met. If a joint powers agreement regarding prehospital EMS was initially executed on or after January 1, 2024, 2025, the bill would ensure a city or fire district retains its existing authorities regarding, and the administration of, prehospital EMS. The bill would set various conditions for a joint powers agreement, including, among other things, requiring uniform operational procedures for prehospital EMS throughout the EMS area or subarea covered by the agreement. (Based on 08/29/2024 text) AB 1567 (Garcia. D) Safe Drinking Water, Wildfire Prevention, Drought Preparation, Flood Protection, Extreme Heat Mitigation, Clean Energy, and Workforce Development Bond Act of 2024. Status: 05/22/2024 - Re -referred to Com. on N.R. & W. lsi House 2nd House ngSk Pglify FucC l Flq r Qe5k Policy piK�l Floor Cpnl.{qnc. Enrolled Vetoed ChpptCred Location: 05/22/2024 - Senate Natural Resources and Water Summary: Would enact the Safe Drinking Water, Wildfire Prevention, Drought Preparation, Flood Protection, Extreme Heat Mitigation, Clean Energy, and Workforce Development Bond Act of 2024, which, if approved by the voters, would authorize the issuance of bonds in the amount of $15,995,000,000 pursuant to the State General Obligation Bond Law to finance projects for safe drinking water, wildfire prevention, drought preparation, flood protection, extreme heat mitigation, clean energy, and workforce development programs. (Based on 05/26/2023 text) AB 1657 (Wicks. D) The Affordable Housing Bond Act of 2024. Status: 03/04/2024 - From committee chair, with author's amendments: Amend, and re -refer to committee. Read second time, amended, and re -referred to Com. on APPR. 1s1: H—e 2nd House D-k Policy F 1 Floor Orsk Policy Fi—I Floor C.W..Cenc. Enrolled Vetoed al p[ered Location: 03/04/2024 - Senate Appropriations Summary: Current law authorizes the issuance of bonds in specified amounts pursuant to the State General Obligation Bond Law and requires that proceeds from the sale of these bonds be used to finance various existing housing programs, capital outlay related to infill development, brownfield cleanup that promotes infill development, and housing -related parks. This bill would enact the Affordable Housing Bond Act of 2024, which, if adopted, would authorize the issuance of bonds in the amount of $10,000,000,000 pursuant to the State General Obligation Bond Law. Proceeds from the sale of these bonds would be used to finance programs to fund affordable rental housing and homeownership programs, including, among others, the Multifamily Housing Program, the CalHome Program, and the Joe Serna, Jr. Farmworker Housing Grant Program. This bill would provide for submission of the bond act to the voters at the March 5, 2024, statewide general election in accordance with specified law. (Based on 03/04/2024 text) AB 1779 (Irwin, D) Theft: jurisdiction. Status: 08/16/2024 - Chaptered by Secretary of State - Chapter 165, Statutes of 2024 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 2.t Hd-- 2nd Ho- - 0 . 0 0 W DCsk Policy Fiscal Floor QrSk Ppli" Fi 'd Floor Co--f.QWK. Enrolled Vetoed Chap-w d Location: 08/16/2024 - Assembly CHAPTERED Summary: Current law defines types of theft, including petty theft, grand theft, and shoplifting. Current law also defines the crimes of robbery and burglary. Current law sets forth specific rules relating to the jurisdiction for the prosecution of theft by fraud, organized retail theft, and receiving stolen property, including that the jurisdiction for prosecution includes the county where an offense involving the theft or receipt of the stolen merchandise occurred, the county in which the merchandise was recovered, or the county where any act was done by the defendant in instigating, procuring, promoting, or aiding or abetting in the commission of a theft offense or other qualifying offense. Current law jurisdictionally limits prosecution of each of the above to criminal actions brought by the Attorney General. This bill would no longer limit the jurisdictional rules for the above crimes to criminal actions brought by the Attorney General. If a case is brought by someone other than the Attorney General and multiple offenses are committed by the same defendant in multiple jurisdictions, the bill would allow a criminal action to be brought in any of those jurisdictions subject to a hearing on consolidation of the offenses, as specified. (Based on 08/16/2024 text) Position: Support AB 1886 (Alvarez, D) Housing Element Law: substantial compliance: Housing Accountability Act. Status: 08/30/2024 - In Assembly. Concurrence in Senate amendments pending. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 56. Noes 7.). 1st Hausa 2nd House Desk Policy F-5-1 Floor Dc k Policy Fscal Floor C.W..Conc. Enr AW VMoed ah peered Location: 08/30/2024 - Assembly ENROLLMENT Summary: The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. Current law, commonly referred to as the Housing Element Law, prescribes requirements for a city's or county's preparation of, and compliance with, its housing element, and requires the Department of Housing and Community Development to review and determine whether the housing element substantially complies with the Housing Element Law, as specified. If the department finds that a draft housing element or amendment does not substantially comply with the Housing Element Law, current law requires the legislative body of the city or county to either (A) change the draft element or amendment to substantially comply with the Housing Element Law or (B) adopt the draft housing element or amendment without changes and make specified findings as to why the draft element or amendment substantially complies with the Housing Element Law despite the findings of the department. This bill would provide that a housing element or amendment is considered substantially compliant with the Housing Element Law when the local agency has adopted a housing element or amendment, the department or a court of competent jurisdiction determines the adopted housing element or amendment to be in substantial compliance with the Housing Element Law, and the department's compliance findings have not been superseded by subsequent contrary findings by the department or by a decision of a court of competent jurisdiction or the court's decision has not been overturned or superseded by a subsequent court decision or by statute. (Based on 09/04/2024 text) Position: Oppose Unless Amended AB 1889 (Friedman, D) Conservation element: wildlife and habitat connectivity. Status: 08/28/2024 - In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 30 pursuant to Assembly Rule 77. Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. 1st Hausa 2nd House Peck Policy Fiscal Floor Desk Policy pi —I Flom C.W..Co— Enrolled Ve-d al pt—d Location: 08/28/2024 - Assembly ENROLLMENT Summary: The Planning and Zoning Law requires the legislative body of a city or county to adopt a comprehensive general plan that includes various elements, including land use, housing, and conservation elements, as specified. Current law requires the conservation element to consider the effect of development within the jurisdiction on natural resources located on public lands. This bill would additionally require the conservation element to consider the effect of development within the jurisdiction on the movement of wildlife and habitat connectivity. The bill would require the conservation element, upon the next update of one or more elements on or after January 1, 2028, to, among other things, identify and analyze connectivity areas, permeability, and natural landscape areas within the jurisdiction, identify and analyze existing or planned wildlife passage features, and consider the impacts of development and the barriers caused by development to wildlife, as defined, and habitat connectivity. The bill would authorize a city, county, or city and county to incorporate by reference into its general plan an existing plan, including a certified local coastal plan, that meets these requirements. The bill would authorize a city, county, or city and county preparing Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 to update its conservation element to consider incorporating appropriate standards, policies, and feasible implementation programs, consult with specified entities, and consider relevant best available science and the most appropriately scaled scientific information on linkages, corridors, and other locations that are essential to maintain landscape connectivity. (Based on 08/31/2024 text) AB 1893 (Wicks, D) Housing Accountability Act: housing disapprovals: required local findings. Status: 08/31/2024 - Read third time. Passed. Ordered to the Assembly. (Ayes 26. Noes 4.). In Assembly. Concurrence in Senate amendments pending. Senate amendments concurred in. To Engrossing and Enrolling. 1st House 2nd House O • i i • ���i��O�1 Desk Policy Fi cW Floor Desk Policy Fiscal Floor Co.d,Conc. Enrvll.d Veocd CHapbered Location: 08/31/2024 - Assembly ENROLLMENT Summary: The Housing Element Law prescribes requirements for a city's or county's preparation of, and compliance with, its housing element, and requires the Department of Housing and Community Development to review and determine whether the housing element substantially complies with the Housing Element Law, as specified. The Housing Accountability Act, among other things, prohibits a local agency from disapproving, or conditioning approval in a manner that renders infeasible, a housing development project for very low, low-, or moderate -income households unless the local agency makes written findings as to one of certain sets of conditions, as specified. Among these conditions, the act allows a local agency to disapprove a housing development project that is inconsistent with the jurisdiction's zoning ordinances and general plan land use designation as it existed on the date the application was deemed complete, if the jurisdiction has adopted a revised housing element that is in substantial compliance with the Housing Element Law, as specified. This bill would make various changes to that condition. The bill would specify that a local agency may disapprove or condition approval of a housing development project or emergency shelter, as described above, if the local agency makes written findings that on the date the application for the housing development project or emergency shelter was deemed complete the jurisdiction did not have an adopted revised housing element that was in substantial compliance with the Housing Element Law and the housing development project is not a builder's remedy project, as defined. (Based on 09/05/2024 text) AB 2023 (Quirk -Silva, D) Housing element: inventory of land: substantial compliance: rebuttable presumptions. Status: 08/28/2024 - In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 30 pursuant to Assembly Rule 77. Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. 1st House 2nd House Desk Policy Fr5-1 Flour Desk Policy F al Floor C.W..Can Enrollyd Vexed Chapbered Location: 08/28/2024 - Assembly ENROLLMENT Summary: Current law, commonly referred to as the Housing Element Law, prescribes requirements for a city's or county's preparation of, and compliance with, its housing element, and requires the Department of Housing and Community Development to review and determine whether the housing element substantially complies with the Housing Element Law, as specified. Current law requires the housing element to include an inventory of land suitable and available for residential development. If that inventory of sites does not identify adequate sites to accommodate the need for groups of all household income levels, as provided, current law requires that the local government rezone sites within 3 years after the date the housing element is adopted or within one year if the local government fails to adopt a housing element that the department finds to be in substantial compliance with the Housing Element Law within 120 days of the statutory deadline to adopt the housing element. This bill, for the 7th and each subsequent revision of the housing element, would require a local government to complete the rezoning of sites within one year of the statutory deadline for the adoption of the housing element or 3 years and 90 days of the statutory deadline if the local government satisfies certain requirements, including submitting a draft element or draft amendment to the department for review within specified timeframes and adopting a draft element or draft amendment that the department finds to be in substantial compliance with the Housing Element Law, as specified. (Based on 08/31/2024 text) AB 2085 (Bauer -Kahan D) Planning and zoning: permitted use: community clinic. Status: 08/29/2024 - Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 62. Noes 6.). 1st House 2nd House n] Sk PpIicy RSCal Flq r Dv5k Ppli" Fixnl Flppr Cp.d,4p c EnrOmd Vowd Chap Mrcd Location: 08/29/2024 - Assembly ENROLLMENT Summary: The Planning and Zoning Law, among other things, authorizes a development proponent to submit an application for a housing development that is subject to a specified streamlined, ministerial approval process not subject to a conditional Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 use permit, if the development satisfies certain objective planning standards. The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA does not apply to the approval of ministerial projects. This bill would make a development that meets specified objective planning standards, including that, among other things, it is on a parcel that is within a zone where office, retail, health care, or parking are a principally permitted use, a permitted use and would require a local agency to review an application for that development on an administrative, nondiscretionary basis. The bill would require a local agency, within 60 calendar days of receiving an application pursuant to these provisions, to approve or deny the application subject to specified requirements, including that, among other things, if the local agency determines that the development is in conflict with any of the above -described standards, the local agency is required to provide the development proponent written documentation of which standard or standards the development conflicts with, as specified. (Based on 09/03/2024 text) AB 2091 (Grayson, D) California Environmental Quality Act: exemption: public access: nonmotorized recreation. Status: 08/29/2024 - Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 73. Noes 0.). 1st H—e 2nd House n] Sk Policy F*5c3l Flq r OUr k POli�y Fi:tpl Floor Cprrfq:9rc E-V1140 VCtucd q;lhaplcrcd Location: 08/29/2024 - Assembly ENROLLMENT Summary: Would exempt from the California Environmental Quality Act (CEQA) a change in use approved by a lead agency that is a park district or the Great Redwood Trail Agency to allow public access to preexisting paved and natural surface roads, preexisting trails, preexisting pathways, and preexisting disturbed areas for vehicle parking, as specified, and rail lines converted by the Great Redwood Trail Agency into trails known as the Great Redwood Trail, in areas used exclusively for nonmotorized recreation, if certain conditions are met. The bill would require the lead agency to post notice of, and hold, a public meeting to consider and solicit public input on the change in use under consideration before making a determination to approve or carry out the change in use, as specified. The bill would require the lead agency, if the lead agency determines that a change in use is not subject to CEQA pursuant to this provision and determines to approve or carry out the activity, to file a notice with the State Clearinghouse in the Office of Planning and Research and with the county clerk of the county in which the land is located, as provided. By imposing duties on public agencies related to the exemption, this bill would create a state -mandated local program. The bill would repeal these provisions on January 1, 2030. This bill would make legislative findings and declarations as to the necessity of a special statute for the Great Redwood Trail Agency. (Based on 09/03/2024 text) AB 2199 (Berman, D) California Environmental Quality Act: exemption: residential or mixed -use housing projects. Status: 08/28/2024 - Enrolled and presented to the Governor at 4 p.m. 1st House 2nd House n1 k Policy R-1 Floor >,k Policy Fi ,,, Floor C.W..Cm Enr 1W Veood Chapcerod Location: 08/28/2024 - Assembly ENROLLED Summary: The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. Current law, until January 1, 2025, exempts from CEQA residential or mixed -use housing projects, as defined, located in unincorporated areas of a county meeting certain requirements, except for residential or mixed -use housing projects if certain conditions exist, as specified. Current law requires a lead agency, if the lead agency determines that a residential or mixed -use housing project qualifies for this exemption from CEQA and determines to approve or carry out the project, to file a notice of exemption with the Office of Planning and Research and the county clerk in the county in which the project is located. This bill would extend the operation of that exemption until January 1, 2035. 2032. (Based on 08/26/2024 text) AB 2243 (Wick- D) Housing development projects: objective standards: affordability and site criteria. Status: 08/31/2024 - Read third time. Passed. Ordered to the Assembly. (Ayes 28. Noes 0.). In Assembly. Concurrence in Senate amendments pending. Senate amendments concurred in. To Engrossing and Enrolling. 1st Hetlse 2nd House O ! i i • ���i--�0�1 Desk Policy FfScel Floor Desk Policy Fiscal Rood Co-Konc, Enm1lud Veocd 1�lhapcercd Location: 08/31/2024 - Assembly ENROLLMENT Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 Summary: The Middle Class Housing Act of 2022 provides that a housing development project is an allowable use on a parcel that is within a zone where office, retail, or parking is a principally permitted use, if the proposed development complies with specified requirements. Under that act, one of those requirements is that the project site is 20 acres or less. This bill, if the site is a regional mall, as defined, would instead require that the project site not be greater than 100 acres. (Based on 08/27/2024 text) AB 2283 (Pacheco D) Civil actions: electronic service. Status: 07/18/2024 - Chaptered by Secretary of State - Chapter 151, Statutes of 2024 1st House 2nd Mouse i0 ! ! rlp5k peli(y FSCJI Flq r PvSk Ppl': Fiunl Floor COr K.f c Enrolled Vetoed CHaptnrrd Location: 07/18/2024 - Assembly CHAPTERED Summary: Current law authorizes the service of documents in a civil action by electronic means pursuant to rules adopted by the Judicial Council. Current law requires a court, on and after July 1, 2024, to electronically transmit those documents to a party who is subject to mandatory electronic service, or who has consented to accept electronic service, as specified. This bill would extend the deadline for courts to comply with the requirement described above to July 1, 2025, and would make a conforming change to clarify that court's electronic transmittal of documents constitutes service of those documents. (Based on 07/18/2024 text) AB 2302 (Addis, D) Open meetings: local agencies: teleconferences. Status: 08/27/2024 - Enrolled and presented to the Governor at 12 p.m. 1st House 2nd House 11rs1, Policy Fiscal Floor >r k policy Fi,cnl Floor C.W..Conc. EnrelW Vexed Chap[c d Location: 08/27/2024 - Assembly ENROLLED Summary: The Ralph M. Brown Act generally requires for teleconferencing that the legislative body of a local agency that elects to use teleconferencing post agendas at all teleconference locations, identify each teleconference location in the notice and agenda of the meeting or proceeding, and have each teleconference location be accessible to the public. Current law also requires that, during the teleconference, at least a quorum of the members of the legislative body participate from locations within the boundaries of the territory over which the local agency exercises jurisdiction. The act provides an exemption to the jurisdictional requirement for health authorities, as defined. Current law, until January 1, 2026, authorizes the legislative body of a local agency to use alternative teleconferencing in specified circumstances if, during the teleconference meeting, at least a quorum of the members of the legislative body participates in person from a singular physical location clearly identified on the agenda that is open to the public and situated within the boundaries of the territory over which the local agency exercises jurisdiction, and the legislative body complies with prescribed requirements. Current law imposes prescribed restrictions on remote participation by a member under these alternative teleconferencing provisions, including establishing limits on the number of meetings a member may participate in solely by teleconference from a remote location, prohibiting such participation for a period of more than 3 consecutive months or 20% of the regular meetings for the local agency within a calendar year, or more than 2 meetings if the legislative body regularly meets fewer than 10 times per calendar year. This bill would revise those limits, instead prohibiting such participation for more than a specified number of meetings per year, based on how frequently the legislative body regularly meets. (Based on 08/22/2024 text) AB 2346 (Lee, D) Organic waste reduction regulations: procurement of recovered organic waste products. Status: 08/29/2024 - Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 75. Noes 0.). 1st House 2nd Mouse - • • 0 • 0 0 -0 0­40--o-­0 Desk Policy F:scol Floor Desk Policy Fiscal Floor C.W..Ca— Enrdl.d Vexed al pte d Location: 08/29/2024 - Assembly ENROLLMENT Summary: Current law requires the State Air Resources Board to complete, approve, and implement a comprehensive strategy to reduce emissions of short-lived climate pollutants in the state to reduce the statewide methane emissions by 40% below 2013 levels by 2030. Current law requires the Department of Resources Recycling and Recovery, in consultation with the state board, to adopt regulations that achieve specified targets for reducing organic waste in landfills, as provided. The department's organic waste regulations require local jurisdictions to annually procure a quantity of recovered organic waste products and to comply with their procurement targets by directly procuring recovered organic waste products for use or giveaway or by requiring, through a written agreement, that a direct service provider to the jurisdiction procure recovered organic waste products, or both. Those regulations specify the types of recovered organic waste products that a jurisdiction may procure, including compost that is produced at a compostable material handling operation or facility, or a specified digestion facility that composts Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 onsite. Other regulations of the department require all compostable materials handling activities to obtain a facility permit from the department prior to commencing operations and meet other specified requirements, but exclude from those requirements certain activities that the regulations state do not constitute a compostable material handling operation or facility, including the composting of green material, agricultural material, food material, and vegetative food material, and the handling of compostable materials under certain conditions, as provided. This bill would authorize local jurisdictions to count towards their procurement targets compost produced and procured from specified compost operations and specified investments and expenditures related to meeting its procurement target, as provided. The bill would authorize a local jurisdiction to determine a local per capita procurement target using information from a local waste characterization study, as specified. The bill would authorize a local jurisdiction to satisfy its annual procurement obligations by procuring a quantity of recovered organic waste products that meets or exceeds a 5-year procurement target, as specified. (Based on 09/03/2024 text) AB 2427 (McCarty, D) Electric vehicle charging stations: permitting: curbside charging. Status: 08/28/2024 - Senate amendments concurred in. To Engrossing and Enrolling. 15t Hause 2nd House Peck Rpliry Fiscal Floor Pesk Policy F1; 1 Flppr Cp.K—c. Enrvll.d Ve-d 6hapNrcd Location: 08/28/2024 - Assembly ENROLLMENT Summary: Current law continues into existence the zero -emission vehicle (ZEV) division within Governor's Office of Business and Economic Development (GO -Biz) as the Zero -Emission Vehicle Market Development Office. Current law references GO- Biz's Electric Vehicle Charging Station Permitting Guidebook, which recommends best practices for electric vehicle supply equipment permitting. This bill would require the office to develop a model permitting checklist, model zoning ordinances, and best practices for permit costs and permit review timelines to help local governments permit curbside charging stations as part of the office's development of the Electric Vehicle Charging Station Permitting Guidebook or any subsequent updates. The bill would also require the office to consult with local governments, electric vehicle service providers, and utilities while developing the above -described materials. (Based on 08/31/2024 text) AB 2430 (Alvarez. D) Planning and zoning: density bonuses: monitoring fees. Status: 08/28/2024 - In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 30 pursuant to Assembly Rule 77. Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. 1st Hause 2nd House D] k Policy Fiscal Floor G,e k Policy F1­1 Flppr Cwd.Conc. lnr 1W Vetoed Uh ptered Location: 08/28/2024 - Assembly ENROLLMENT Summary: Current law, commonly referred to as the Density Bonus Law, requires a city, county, or city and county to provide a developer that proposes a housing development within the city or county with a density bonus, waivers or reductions of development standards and parking ratios, and other incentives or concessions, as specified, if the developer agrees to construct certain types of housing, including a housing development in which 100% of the units are for lower income households, except that up to 20% of the units in the development may be for moderate -income households, as specified. This bill would prohibit a city, county, or city and county from charging a monitoring fee, as defined, on those types of housing developments if certain conditions are met, except as specified. The bill would provide that, beginning on January 1, 2025, any housing development that is currently placed in service, is subject to monitoring fees, and meets those conditions shall no longer be subject to those fees. (Based on 08/31/2024 text) AB 2488 (Ting. D) Downtown revitalization and economic recovery financing districts: City and County of San Francisco. Status: 08/29/2024 - Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 72. Noes 0.). lsi H—e 2nd Ho- - • • ■ • 1000-42-- --o Peck PgIicy FKcol Floor Desk fticy Fiscal Roar CwACW c Enrolled Vetoed C"ptered Location: 08/29/2024 - Assembly ENROLLMENT Summary: Current law authorizes the legislative body of a city or a county to establish an enhanced infrastructure financing district to finance public capital facilities or other specified projects of communitywide significance, including the acquisition, construction, or rehabilitation of housing for persons of very low, low, and moderate income. Current law requires the legislative body to establish a public financing authority, defined as the governing board of the enhanced infrastructure financing district, at the same time the resolution to form an enhanced infrastructure district is adopted. Current law requires the public financing authority to adopt an infrastructure financing plan that includes specified information, including a finding that the development and financial assistance are of communitywide significance and provide significant benefits to an area larger than the area Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 of the district. This bill would authorize the City and County of San Francisco to designate one downtown revitalization and economic recovery financing district for the purpose of financing commercial -to -residential conversion projects with incremental tax revenues generated by commercial -to -residential conversion projects within the district. (Based on 09/03/2024 text) AB 2553 (Friedman D) Housing development: major transit stops: vehicular traffic impact fees. Status: 08/28/2024 - Enrolled and presented to the Governor at 4 p.m. 1" House 2nd Ho — Desk Policy FScel Floor Desk pphi ? Fiscal Floor Co-f.QWK, Enrollud Veoed Chpptered Location: 08/28/2024 - Assembly ENROLLED Summary: The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA exempts from its requirements residential projects on infill sites and transit priority projects that meet certain requirements, including a requirement that the projects are located within 1/2 mile of a major transit stop. This bill would revise the definition of "major transit stop" to increase the frequency of service interval to 20 minutes. (Based on 08/26/2024 text) AB 2561 (McKinnor, D) Local public employees: vacant positions. Status: 08/31/2024 - Read third time. Passed. Ordered to the Assembly. (Ayes 27. Noes 10.). In Assembly. Concurrence in Senate amendments pending. Senate amendments concurred in. To Engrossing and Enrolling. 15t House 2nd House D-1, Policy F1,_1 Floor Desk Policy FI-1 Floor Cp-d,ConcEnr 1W Vetoed Uh ptered Location: 08/31/2024 -Assembly ENROLLMENT Summary: The Meyers-Milias-Brown Act (act) authorizes local public employees, as defined, to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on matters of labor relations. The act requires the governing body of a public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations and to consider fully presentations that are made by the employee organization on behalf of its members before arriving at a determination of policy or course of action. This bill would, as specified, require a public agency to present the status of vacancies and recruitment and retention efforts at a public hearing at least once per fiscal year, and would entitle the recognized employee organization to present at the hearing. If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the bill would require the public agency, upon request of the recognized employee organization, to include specified information during the public hearing. (Based on 08/23/2024 text) AB 2574 (Valencia, D) Alcoholism or drug abuse recovery or treatment programs and facilities: disclosures. Status: 08/29/2024 - Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 75. Noes 0.). lsi House 2nd House Peck Policy FScel Floor Onk Pohi , FH�.d Floor CM40)-H. 9proll*d Veoed C"ptered Location: 08/29/2024 - Assembly ENROLLMENT Summary: Current law grants the sole authority in state government to the State Department of Health Care Services to certify alcohol or other drug programs and to license adult alcoholism or drug abuse recovery or treatment facilities. Current law requires certified programs and licensed facilities to disclose specified information to the department, including ownership or a financial interest in a recovery residence, as defined, and contractual relationships with entities that provide recovery services to clients of certified programs or licensed facilities if the entity is not a part of a certified program or a licensed facility. This bill would require a program or a licensed facility to disclose to the department if any of its agents, partners, directors, officers, or owners own or have a financial interest in a recovery residence and whether it has contractual relationships with entities that provide recovery services to clients of certified programs or licensed facilities if the entity is not a part of a certified program or a licensed facility. (Based on 09/03/2024 text) Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 AB 2597 (Ward, D) Planning and zoning: revision of housing element: regional housing need allocation appeals: Southern California Association of Governments. Status: 08/29/2024 - Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 58. Noes 13.). 1st House 2nd House O ■ ■ ■ • 0 0 0 0-­J Desk Polity F:scol Floor Desk Po1ky Racal Ph— Cocd.Con, Enrdl.d Vetoed ah poered Location: 08/29/2024 - Assembly ENROLLMENT Summary: The Planning and Zoning Law requires each county and each city to adopt a comprehensive, long-term general plan for the physical development of the county or city, and specified land outside its boundaries, that includes, among other specified mandatory elements, a housing element. Current law requires, for the 4th and subsequent revisions of the housing element, the Department of Housing and Community Development (department), in consultation with the council of governments, to determine the existing and projected need for housing for each region, as specified. Current law requires the council of governments or delegate subregion, as applicable, to adopt a final regional housing needs plan that allocates a share of the regional housing need to each city, county, or city and county. Current law requires each council of governments and delegate subregion to distribute a draft allocation of regional housing needs to each local government in the region or subregion. Current law authorizes, within 45 days following receipt of the draft allocation, a local government within the region or the delegate subregion or the department to appeal to the council of governments or the delegate subregion for a revision of the share of the regional housing need proposed to be allocated to one or more local governments, as specified. This bill would reduce the period to appeal from 45 days following receipt of the draft allocation to 30 days. (Based on 09/03/2024 text) AB 2631 (Fong, Mike, D) Local agencies: ethics training. Status: 08/26/2024 - Chaptered by Secretary of State - Chapter 201, Statutes of 2024 1st House 2nd House Doak Policy Fsc61 Floor Desk Po1ky Rse.l Fkor Cocd.C—. Enrolled Vetoed Ch.pt—a Location: 08/26/2024 - Assembly CHAPTERED Summary: Current law requires all local agency officials to receive training in ethics, at specified intervals, if the local agency provides certain monetary payments to a member of a legislative body, as provided. Current law requires all local agency officials who are members of specified public bodies to receive the above -described training, whether or not the member receives any type of compensation, salary, or stipend or reimbursement for actual and necessary expenses incurred in the performance of official duties. Current law requires an entity that develops curricula to satisfy the above -described requirements to consult with the Fair Political Practices Commission and the Attorney General regarding the sufficiency and accuracy of the proposed course content. Current law prohibits the Fair Political Practices Commission and the Attorney General, as specified, from precluding an entity from also including local ethics policies in the curricula. This bill would require the Fair Political Practices Commission, in consultation with the Attorney General, to create, maintain, and make available to local agency officials an ethics training course, as specified. (Based on 08/26/2024 text) AB 2632 (Wilson. D) Planning and zoning: thrift retail stores. Status: 08/28/2024 - In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 30 pursuant to Assembly Rule 77. Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. 1s1 House 2nd House • ■ i ■ ■ • • • ■ I�;--mod D¢sk Policy Rsc61 Floor Desk Policy Rs Vl Floor Conf.C&ic Enrolled Vetoed Chnptered Location: 08/28/2024 - Assembly ENROLLMENT Summary: The Planning and Zoning Law, among other things, requires the legislative body of each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city and of any land outside its boundaries that relates to its planning. Current law authorizes the legislative body, if it deems it to be in the public interest, to amend all or part of an adopted general plan, as provided. Current law also authorizes the legislative body of any county or city, pursuant to specified procedures, to adopt ordinances that, among other things, regulate the use of buildings, structures, and land as between industry, business, residences, open space, and other purposes. This bill would prohibit a local agency, as defined, from treating a thrift retail store, as defined, differently from a nonthrift retail store engaged in the sale of new items that are similar to items sold by a thrift retail store for purposes of zoning, development standards, or permitting, except as specified. The bill would allow a local agency to require that thrift retail stores meet certain aesthetic or design standards, as prescribed. (Based on 08/31 /2024 text) Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 AB 2675 (Low, D) Planning and zoning: regional housing needs: exchange of allocation. Status: 05/07/2024 - Re -referred to Com. on RLS. 15t House 2nd House Pesk Policy F s,;:I �1 : r Oesk PO" Fiatal Floor Cp.d,Lonc, Urmlled Vetoed Chapbc d Location: 05/06/2024 - Assembly Rules Summary: The Planning and Zoning Law requires the legislative body of each county and city to adopt a comprehensive, long- term general plan for the physical development of the county or city that includes, among other specified mandatory elements, a housing element. That law, for the 4th and subsequent revisions of the housing element, requires the Department of Housing and Community Development to determine the existing and projected need for housing for each region. That law further requires the appropriate council of governments, or, for cities and counties without a council of governments, the department, to adopt a final regional housing plan that allocates a share of the regional housing need to each city, county, or city and county in accordance with certain requirements. This bill would authorize a city or county, by agreement, to transfer all or a portion of its allocation of regional housing need to another city or county. The bill would allow the transferring city to pay the transferee city or county an amount determined by that agreement, as well as a surcharge to offset the impacts and associated costs of the additional housing on the transferee city. (Based on 05/06/2024 text) AB 2684 (Bryan, D) Safety element: extreme heat. Status: 08/28/2024 - In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 30 pursuant to Assembly Rule 77. Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. lst H—e 2nd Ho- - r 0 i f 0— Peck PgIiy Fscal Floor Desk Policy Fiscal Floor CprKA . Enrdlwd Vetoed Chplo red Location: 08/28/2024 - Assembly ENROLLMENT Summary: The Planning and Zoning Law requires the legislative body of a city or county to adopt a comprehensive, long- term general plan that includes various elements, including, among others, a safety element for the protection of the community from unreasonable risks associated with the effects of various geologic and seismic hazards, flooding, and wildland and urban fires. This bill would require a city or county, upon the next update of one or more of the elements included in the general plan on or after January 1, 2028, to review and update its safety element as necessary to address the hazard of extreme heat, as specified. The bill would authorize a city or county that has adopted an extreme heat action plan or other document that fulfills commensurate goals and objectives to use that information in the safety element, as specified, and, upon doing so, would require the city or county to summarize and incorporate into the safety element the other plan or document. (Based on 08/31/2024 text) AB 2694 (Ward D) Density Bonus Law: residential care facilities for the elderly. Status: 08/29/2024 - Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 75. Noes 0.). 1st House 2nd House Peck Policy Fiscal Floor Desk Policy Fiscal Floor Co-Konc, Enrallud Veoed Chapoered Location: 08/29/2024 - Assembly ENROLLMENT Summary: The Density Bonus Law requires a city or county to provide a developer that proposes a housing development, as defined, within the city or county with a density bonus and other incentives or concessions, as specified, if the developer agrees to construct, among other options, a senior citizen housing development, as defined. The Density Bonus Law defines a "development" for these purposes to include a shared housing development, and defines various other terms, including "shared housing unit." This bill would expand the definition of a development for the above -described purposes to include a residential care facility for the elderly, as defined. The bill would also specify that, in the case of a residential care facility, a "shared housing unit" includes a unit without an individual kitchen where a room may be shared by unrelated and a unit where a room may be shared by unrelated persons that meets the minimum room area requirements, as specified. By expanding a city or county's duty to administer the Density Bonus Law, this bill would impose a state -mandated local program. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. (Based on 09/03/2024 text) AB 2712 (Friedman, D) Preferential parking privileges: transit -oriented development. Status: 08/28/2024 - In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 30 pursuant to Assembly Rule 77. Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 157 Hwse 2nd House Desk Policy Fiscal Flour QSSk Polky Fiscal Floor Cord,Cdnc, Enrvll*d Velucd Clhap[ered Location: 08/28/2024 - Assembly ENROLLMENT Summary: Current law authorizes a local authority, by ordinance or resolution, to prohibit or restrict the stopping, parking, or standing of vehicles on certain streets or highways during all or certain hours of the day. Current law authorizes the ordinance or resolution to include a designation of certain streets upon which preferential parking privileges are given to residents and merchants adjacent to the streets for their use and the use of their guests, under which the residents and merchants may be issued permits that exempt them from the prohibition or restriction of the ordinance or resolution. Current law prohibits a public agency from imposing any minimum automobile parking requirement on any residential, commercial, or other development project that is located within 1/2 mile of public transit, as defined, unless the public agency makes written findings that not imposing or enforcing minimum automobile parking requirements on the development would have a substantially negative impact on, among other things, the city's, county's, or city and county's ability to meet its share of the regional housing need for low- and very low income households. This bill would, for purposes of its provisions, define "development project" to mean a residential, commercial, or other development project exempt from minimum automobile parking requirements, or subject to parking minimum reductions based on any other applicable law, located within the boundaries of the City of Los Angeles. This bill, for a development project that is located within a preferential parking area, would require the development project to be excluded from the boundaries of the preferential parking area and would prohibit the local authority, as defined, from issuing any permit to the residents or visitors of the development project that grants preferential parking privileges. (Based on 08/31/2024 text) AB 2729 (Patterson, Joe, R) Development projects: permits and other entitlements. Status: 08/31/2024 - Read third time. Passed. Ordered to the Assembly. (Ayes 36. Noes 2.). In Assembly. Concurrence in Senate amendments pending. Senate amendments concurred in. To Engrossing and Enrolling. 1st House 2nd House Desk Polity Fiscal Floor C-1, Policy Fi ,,, Floor CoWC—. Enroll.d Vetoed 1>r pbr d Location: 08/31/2024 - Assembly ENROLLMENT Summary: The Planning and Zoning Law requires each county and each city to adopt a comprehensive, long-term general plan for its physical development, and the development of specified land outside its boundaries, that includes, among other mandatory elements, a housing element. The Permit Streamlining Act, among other things, requires a public agency that is the lead agency for a development project to approve or disapprove that project within specified time periods. Current law extended by 18 months the period for the expiration, effectuation, or utilization of a housing entitlement, as defined, that was issued before, and was in effect on, March 4, 2020, and that would expire before December 31, 2021, except as specified. Current law provides that if the state or a local agency extended the otherwise applicable time for the expiration, effectuation, or utilization of a housing entitlement for not less than 18 months, as specified, that housing entitlement would not be extended an additional 18 months pursuant to these provisions. This bill would extend by 18 months the period for the expiration, effectuation, or utilization of a housing entitlement, as defined, that was issued before January 1, 2024, and that will expire before December 31, 2025, except as specified. The bill would toll this 18-month extension during any time that the housing entitlement is the subject of a legal challenge. (Based on 08/21/2024 text) AB 2803 (Valencia, D) Campaign expenditures: criminal convictions: fees and costs. Status: 08/31/2024 - Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.). In Assembly. Concurrence in Senate amendments pending. Senate amendments concurred in. To Engrossing and Enrolling. 1st House 2nd House Dosk Policy FscJl Floor ¢CSk policy Fiscal Floor Cwd,Cdnc EnrAwd VMOed Chap-ptCred Location: 08/31/2024 - Assembly ENROLLMENT Summary: The Political Reform Act of 1974 deems all campaign contributions to be held in trust for expenses associated with seeking or holding office, and generally authorizes expenditures associated therewith if they are reasonably related to a political, legislative, or governmental purpose. Current law prohibits the use of campaign funds to pay or reimburse fines, penalties, judgments, or settlements, except as specified. Current law provides that the expenditure of campaign funds for attorney's fees and other costs in connection with administrative, civil, or criminal litigation are not related to a political, legislative, or governmental purpose unless the litigation is directly related to activities of a committee that are consistent with its primary objectives or arises directly out of a candidate's or elected officer's activities, duties, or status as a candidate or elected officer, as specified. This bill would prohibit campaign funds from being used to reimburse expenditures for attorney's fees and other costs in connection with criminal litigation if the litigation results in a conviction of the candidate or elected officer for a felony involving Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 certain types of offenses, as specified. The bill would prohibit the use of campaign funds to pay or reimburse a candidate or elected officer for a fine, penalty, judgment, or settlement relating to a conviction for a felony involving such specified offenses. The bill would require the candidate or elected officer, if convicted, to reimburse the campaign for all funds used in connection with other legal costs and expenses related to claims of criminal acts. (Based on 08/22/2024 text) AB 2813 (Aguiar-Curry, D) Government Investment Act. Status: 07/18/2024 - Chaptered by Secretary of State - Chapter 155, Statutes of 2024 1st House 2nd House n] Sk Policy F c[ l Floor prsk Policy Fixnl Floor Cw40)nc, Enrolled Vetoed Chapt d Location: 07/18/2024 - Assembly CHAPTERED Summary: The Proposition 218 Omnibus Implementation Act defines various terms and prescribes procedures and parameters for local jurisdictions to comply with specified provisions of the California Constitution. This bill, for purposes of ACA 1, would define "affordable housing" to include rental housing, ownership housing, interim housing, and affordable housing programs such as downpayment assistance, first-time homebuyer programs, and owner -occupied affordable housing rehabilitation programs, that are affordable to households earning up to 150% of countywide median income. The bill would require a local government to ensure that any project that is funded with ACA 1 bonded indebtedness to have an estimated useful life of at least 15 years or 5 years if the funds are for specified public safety facilities, infrastructure, and equipment. The bill would define "public infrastructure" to exclude the construction, reconstruction, rehabilitation, or replacement of a sports stadium or arena where the majority of the use of the facility is for private ticketed activities. The bill would prohibit ACA 1 bonded indebtedness from being used for the acquisition or lease of any real property that has, at the time of acquisition or lease, been improved with one to 4 dwelling units, except as specified. (Based on 07/18/2024 text) AB 2904 (Quirk -Silva, D) Zoning ordinances: notice. Status: 08/28/2024 - Enrolled and presented to the Governor at 4 p.m. 1st House 2nd House Pesk Policy F 1 Floor U-1, Policy Fiscal Floor Cocd.Ca— Enrolled Vetoed Chapbered Location: 08/28/2024 - Assembly ENROLLED Summary: Current law requires the planning commission to hold a public hearing on any zoning ordinance or an amendment to a zoning ordinance that changes any property from one zone to another. If the proposed ordinance or amendment to a zoning ordinance affects the permitted uses of real property, current law requires notice of the hearing to be, among other things, mailed or delivered at least 10 days prior to the hearing to the owner of the subject real property, as specified. This bill would instead require notice of the planning commission's hearing on a proposed zoning ordinance or amendment to a zoning ordinance, if the proposed ordinance or amendment to a zoning ordinance affects the permitted uses of real property, to be published, posted, mailed, and delivered, or advertised, as applicable, at least 20 days before the hearing. (Based on 08/26/2024 text) AB 2943 (Zbur, D) Crimes: shoplifting. Status: 08/16/2024 - Chaptered by Secretary of State - Chapter 168, Statutes of 2024 1st House 2nd House Desk Policy Fiscal Floor D,k Policy Fiscal Floor C.W..Conc. Enrolled Vetoed Ch pt—d Location: 08/16/2024 - Assembly CHAPTERED Summary: Current law divides theft into grand theft and petty theft. Existing law punishes petty theft as a misdemeanor while grand theft is punished as either a misdemeanor or a felony. Current law lists specific types of theft which are grand theft and all other cases of theft as petty theft. Current law authorizes a person to be charged with grand theft if the property taken exceeds $950 over the course of distinct but related acts. This bill would clarify that those related acts include acts committed against multiple victims or in counties other than the county of the current offense. The bill would also clarify that evidence that distinct acts are motivated by one intention, one general impulse, and one plan may include, but is not limited to, evidence that the acts involve the same defendant or defendants, are substantially similar in nature, or occur within a 90-day period. (Based on 08/16/2024 text) Position: Support AB 3012 (Grayson, D) Development fees: fee schedule template: fee estimate tool. Status: 08/29/2024 - Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0.). Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 157 Hwse 2nd House Desk Policy Fr5cal Flour Drsk Poky Fiscal Floor Cord,Cdnc, Enr ll*d Veord Clhap[ered Location: 08/29/2024 - Assembly ENROLLMENT Summary: Would require a city or county that has an internet website to make a fee estimate tool that the public can use to calculate an estimate of fees and exactions, as specified, for a proposed housing development project available on its internet website. The bill would authorize the city or county to choose the format of the fee estimate tool. The bill would require a city or county with a population of greater than 500,000 to meet these requirements on or before July 1, 2031. The bill would require a city or county with a population of 500,000 or fewer to meet these requirements on or before July 1, 2032. By requiring a city or county to include a fee estimate tool on its internet website, the bill would impose a state -mandated local program. (Based on 09/03/2024 text) AB 3057 (Wilson, D) California Environmental Quality Act: exemption: junior accessory dwelling units ordinances. Status: 08/27/2024 - Approved by the Governor. Chaptered by Secretary of State - Chapter 210, Statutes of 2024. 1st Haase 2nd House ri.-.k Policy Fiscal Floor Desk Policy Fiscal Flour C.W..Conc. Enrolled Veord Ch.pt—d Location: 08/27/2024 - Assembly CHAPTERED Summary: The California Environmental Quality Act (CEQA) requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA exempts from its requirements the adoption of an ordinance by a city or county to issue a zoning variance, special use permit, or conditional use permit for a dwelling unit to be constructed, or which is attached to or detached from, a primary residence on a parcel zoned for a single-family residence, as provided, or and the adoption of an ordinance to provide for the creation of accessory dwelling units in areas zoned to allow single-family or multifamily dwelling residential use. This bill would expand the above CEQA exemption to include the adoption of an ordinance by a city or county to provide for the creation of junior accessory dwelling units in single-family residential zones. (Based on 08/27/2024 text) AB 3068 (Haney, D) Adaptive reuse: streamlining: incentives. Status: 08/31/2024 - In Assembly. Concurrence in Senate amendments pending. Senate amendments concurred in. To Engrossing and Enrolling. 1st Haase 2nd Haase I]pck Paliry Fiscal Flp r :1rsk Pnli�y pimx"l Floor Cwd.Cnnc EM1rpI140 Venrd Chanitrrd Location: 08/31/2024 - Assembly ENROLLMENT Summary: The Planning and Zoning Law requires each county and city to adopt a comprehensive, long-term general plan for its physical development, and the development of certain lands outside its boundaries, that includes, among other mandatory elements, a housing element. That law allows a development proponent to submit an application for a development that is subject to a specified streamlined, ministerial approval process not subject to a conditional use permit, if the development satisfies certain objective planning standards, including that the development is a multifamily housing development that contains two or more residential units. This bill would deem an adaptive reuse project a use by right in all zones, regardless of the zoning of the site, and subject to a streamlined, ministerial review process if the project meets specified requirements, subject to specified exceptions. In this regard, an adaptive reuse project, in order to qualify for the streamlined, ministerial review process, would be required to be proposed for an existing building that is less than 50 years old or meets certain requirements regarding the preservation of historic resources, including the signing of an affidavit declaring that the project will comply with the United States Secretary of the Interior's Standards for Rehabilitation for, among other things, the preservation of exterior facades of a building that face a street, or receive federal or state historic rehabilitation tax credits, as specified. The bill would require an adaptive reuse project to meet specified affordability criteria. In this regard, the bill would require an adaptive reuse project for rental housing to include either 8% of the unit for very low income households and 5% of the units for extremely low income households or 15% of the units for lower income households. For an adaptive reuse project for owner -occupied housing, the bill would require the development to offer either 30% of the units at an affordable housing cost to moderate -income households or 15% of the units at an affordable housing cost to lower income households. The bill would require at least one-half of the square footage of the adaptive reuse project to be dedicated to residential uses. (Based on 08/23/2024 text) AB 3093 (Ward, D) Land use: housing element. Status: 08/29/2024 - Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 59. Noes 1.). Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 157 Hwse 2nd House Desk Policy Fiscal Flour QSSk Poky Fiscal Floor Conf.QWK. Enr ll*d Veord Clhap[ered Location: 08/29/2024 - Assembly ENROLLMENT Summary: The Planning and Zoning Law requires a city or county to adopt a general plan for land use development that includes, among other things, a housing element. Existing law requires a city or county to provide by April 1 of each year an annual report to, among other entities, the Department of Housing and Community Development. The annual report is required to include, among other things, the city's or county's progress in meeting its share of regional housing needs, as specified. This bill would require a city or county to include in the report on the progress in meeting the city's or county's share of regional housing need the progress in meeting the need for the 6th and previous revisions of the housing element. (Based on 09/03/2024 text) AB 3122 (Kalra, D) Streamlined housing approvals: objective planning standards and subdivision applications. Status: 08/28/2024 - In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 30 pursuant to Assembly Rule 77. Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. 1st Haase 2nd Ho- - • • 0 • 0 0 0 0—­J Desk Policy Fscal Floor Desk Policy Fscal Flour C.W..Canc. Enrdlird Vexed CHapoered Location: 08/28/2024 - Assembly ENROLLMENT Summary: The Planning and Zoning Law authorizes a development proponent to submit an application for a multifamily housing development that is subject to a streamlined, ministerial approval process, as provided, and not subject to a conditional use permit, if the development satisfies specified objective planning standards, including, among others, that the development is subject to a requirement mandating a minimum percentage of below market rate housing based on, among other things, that (1) the locality's latest production report reflects that there were fewer units of housing issued building permits affordable to either very low income or low-income households by income category than were required for the regional housing needs assessment cycle for that reporting period and (2) the project seeking approval dedicates 50% of the total number of units, as specified, to housing affordable to households making at or below 80% of the area median income. This bill would also include as an objective planning standard that (1) the locality's latest production report reflects the requirements described above and (2) the project application was submitted prior to January 1, 2019, and the project includes at least 500 units of housing, that the project dedicates 20% of the total number of units, as specified, as affordable units, with at least 9% affordable to households making at or below 50% of the area median income and the remainder affordable to households making at or below 80% of the area median income. (Based on 08/31/2024 text) AB 3177 (Carrillo, Wendy, D) Mitigation Fee Act: land dedications: mitigating vehicular traffic impacts. Status: 08/28/2024 - In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 30 pursuant to Assembly Rule 77. Assembly Rule 77 suspended. Senate amendments concurred in. To Engrossing and Enrolling. 1st House 2nd House D[ k Policy 195col Flour 4C5k Poky FiStal Floor Co 40)-x. Enroll*d Veocd C"pwcd Location: 08/28/2024 - Assembly ENROLLMENT Summary: The Mitigation Fee Act imposes various requirements with respect to the establishment, increase, or imposition of a fee by a local agency as a condition of approval of a development project. Current law requires a local agency that imposes a fee on a housing development for the purpose of mitigating vehicular traffic impacts to set the rate for the fee to reflect a lower rate of automobile trip generation if the housing development satisfies specified characteristics, including that the housing development is located within 1/2 mile of a transit station, as specified. Current law defines transit station for these purposes to mean a rail or light -rail station, ferry terminal, bus hub, or bus transfer station. This bill would instead require the housing development to be located within a transit priority area, as specified, for purposes of a local agency setting the rate for a mitigating vehicular traffic impacts fee to reflect a lower rate of automobile trip generation. The bill would define "transit priority area" as an area within 1/2 mile of a major transit stop that is existing or planned, if the planned stop is scheduled to be completed within the planning horizon included in a Transportation Improvement Program or applicable regional transportation plan. This bill would prohibit a local agency from imposing a land dedication requirement, as defined, on a housing development to widen a roadway if the land dedication requirement is for the purpose of mitigating vehicular traffic impacts, achieving an adopted traffic level of service related to vehicular traffic, or achieving a desired roadway width. (Based on 08/31/2024 text) ACA 10 (Aguiar-Curry, D) Local government financing: affordable housing and public infrastructure: voter approval. Status: 06/27/2024 - Chaptered by Secretary of State - Chapter 134, Statutes of 2024 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 2.t Hd-- 2nd Ho- - i — 0 - 0 0 W DCsk policy Fiscal Floor Desk Ppli" Fi 'd Floor Co-f.QWK, Enrolled Vetoed Chapin d Location: 06/27/2024 - Assembly CHAPTERED Summary: Assembly Constitutional Amendment No. 1 of the 2023-24 Regular Session (ACA 1) would, if adopted by the people, amend Section 4 of Article XIIIA, Section 2 of Article XIIIC, and Section 3 of Article MID of, and would add Section 2.5 of Article XIIIC to, the California Constitution, relative to local finance. Under these provisions, ACA 1 would condition the imposition, extension, or increase of a sales and use tax or transactions and use tax imposed in accordance with specified law or a parcel tax by a local government for the purposes of funding the construction, reconstruction, rehabilitation, or replacement of public infrastructure, affordable housing, including downpayment assistance, or permanent supportive housing, or the acquisition or lease of real property for those purposes, on the proposition proposing that tax being approved by a majority vote of the membership of the governing board of the local government and by 55% of its voters voting on the proposition and the proposition includes specified accountability requirements. ACA 1 would also make conforming changes. This measure would remove the above -described provisions of ACA 1 relating to special taxes and make conforming changes in other provisions of ACA 1. (Based on 06/27/2024 text) SIB 7 (Blakespear, D) Regional housing need: determination. Status: 09/04/2024 - Enrolled and presented to the Governor at 4 p.m. 1st House 2nd House D] k Policy F-1 Flc:oi 01 ,k Pnli,y F—1 Floor Cod.Conc. Enrollyd Vetoed Chapte d Location: 09/04/2024 - Senate ENROLLED Summary: The Planning and Zoning Law requires, for the 4th and subsequent revisions of the housing element, the Department of Housing and Community Development (department) to determine the existing and projected need for housing for each region, as specified. That law requires the department, in consultation with the council of governments, to determine the existing and projected need of housing for each region in a specified manner. That law requires the department's determination to be based upon population projections produced by the Department of Finance, as specified. That law also requires the department to meet and consult with the council of governments regarding the assumptions and methodologies to be used to determine each region's housing need and requires the council of governments to provide data assumptions from the council of governments' projections, as specified. That law authorizes the department to accept or reject the information provided by the council of governments and, after consultation with each council of governments, to make determinations on the council of governments' data assumptions and the methodology the department will use to determine each region's housing need. That law requires the department to provide its determinations to each council of governments, as specified. That law, upon making that determination, authorizes the council of governments to object to the determination. This bill, for regions in which the department is required to distribute the regional housing need, would prohibit a city or county from filing an objection to the regional housing need determination. (Based on 08/30/2024 text) SB 37 (Caballero D) Older Adults and Adults with Disabilities Housing Stability Act. Status: 09/03/2024 - Enrolled and presented to the Governor at 3 p.m. 1st House 2nd House i — — r 0 i i * — 0­----J Desk polipy Focal Floe- Desk Policy Fiscal Floor CwAQo c, EnFdlbd Vetoed appte-ed Location: 09/03/2024 - Senate ENROLLED Summary: Current law establishes various programs to address homelessness, including requiring the Governor to create an Interagency Council on Homelessness and establishing the Homeless Emergency Aid program for the purpose of providing localities with one-time grant funds to address their immediate homelessness challenges, as specified. Current law commits to the Department of Housing and Community Development the administration of various housing assistance programs, including provisions relating to residential hotel rehabilitation and tasks the department, in consultation with each council of governments, with the determination of each region's existing and projected housing need. This bill would, upon an appropriation by the Legislature for this express purpose, require the Department of Housing and Community Development, commencing January 1, 2025, to begin developing the Older Adults and Adults with Disabilities Housing Stability Pilot Program. (Based on 08/28/2024 text) SIB 399 (Wahab, D) Employer communications: intimidation. Status: 08/31/2024 - Assembly amendments concurred in. (Ayes 31. Noes 9.) Ordered to engrossing and enrolling. Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 19[ House 2nd House Desk Policy Fr5cal Flour pe5k Poky Fiscal Floor ConfQWK. Enrvll*d Velucd Clhap[ered Location: 08/31/2024 - Senate ENROLLMENT Summary: The Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations Act of 1975 provides that it is the policy of the state to encourage and protect the right of agricultural employees to full freedom of association, self -organization, and designation of representatives of their own choosing to negotiate the terms and conditions of their employment, and to be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives, self - organization, or other concerted activities for the purpose of collective bargaining or other mutual aid or protection. Other existing law relating to employment prohibits employers from making, adopting, or enforcing rules, regulations, or policies that forbid or prevent employees from engaging or participating in politics or from becoming candidates for public office, and from controlling or directing, or tending to control or direct, the political activities or affiliations of employees. This bill, except as specified, would prohibit an employer from subjecting, or threatening to subject, an employee to discharge, discrimination, retaliation, or any other adverse action because the employee declines to attend an employer -sponsored meeting or affirmatively declines to participate in, receive, or listen to any communications with the employer or its agents or representatives, the purpose of which is to communicate the employer's opinion about religious or political matters and would require an employee who refuses to attend a meeting as described to continue to be paid, as specified. The bill would impose a civil penalty of $500 on an employer who violates these provisions. (Based on 08/19/2024 text) SB 450 (Atkins, D) Housing development: approvals. Status: 08/29/2024 - Assembly amendments concurred in. (Ayes 28. Noes 9.) Ordered to engrossing and enrolling. IA Mouse 2nd House Dcsk POIiry Fscul Floor Orsk Pnl-;y Fiwc l Floor Co-Kmc. Enrolled Vetoed Chap Erred Location: 08/29/2024 - Senate ENROLLMENT Summary: The Planning and Zoning law requires a proposed housing development containing no more than 2 residential units within a single-family residential zone to be considered ministerially, without discretionary review or hearing, if the proposed housing development meets certain requirements, including that the proposed housing development does not allow for the demolition of more than 25% of the existing exterior structural walls, except as provided. Current law authorizes a local agency to impose objective zoning standards, objective subdivision standards, and objective design standards, as defined, except as specified, on the proposed housing development. Current law authorizes a local agency to deny a proposed housing development if specified conditions are met, including that the building official makes a written finding that the proposed housing development project would have a specific, adverse impact upon public health and safety or the physical environment, as provided. This bill would remove the requirement that a proposed housing development does not allow for the demolition of more than 25% of the existing exterior structural walls to be considered ministerially. The bill would prohibit a local agency from imposing objective zoning standards, objective subdivision standards, and objective design standards that do not apply uniformly to development within the underlying zone, but would specify that these provisions do not prohibit a local agency from adopting or imposing objective zoning standards, objective subdivision standards, and objective design standards on the development if the standards are more permissive than applicable standards within the underlying zone. The bill would remove the authorization for a local agency to deny a proposed housing development if the building official makes a written finding that the proposed housing development project would have a specific, adverse impact upon the physical environment. The bill would require the local agency to consider and approve or deny the proposed housing development application within 60 days from the date the local agency receives the completed application, and would deem the application approved after that time. (Based on 09/03/2024 text) SB 532 (Wiener. D) Parking payment zones. Status: 08/29/2024 - Assembly amendments concurred in. (Ayes 33. Noes 5.) Ordered to engrossing and enrolling. 1st Mouse 2nd House Dcsk Pglicy Fsrul Fl-r Prsk Policy Fi­l Fliinr Cwd.Cdn Enr 1W Vetoed Uh ptered Location: 08/29/2024 - Senate ENROLLMENT Summary: Current law allows a local authority to establish parking meter zones and fix the rate of fees for those zones by ordinance. Current law prohibits a local authority from requiring payment of parking meter fees by a mobile device, as specified. This bill would instead authorize, until January 1, 2033, in the City and County of San Francisco, City of Long Beach, and City of Santa Monica, a local authority to require payment of parking fees by a mobile device, if it meets certain requirements, such as adopting an accessible and equitable parking cash payment plan that does not utilize parking meters or payment centers in parking payment zones to provide reasonably accessible alternative means for payment of parking fees using cash. The bill Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 would also authorize the local authority in the City and County of San Francisco, City of Long Beach, and City of Santa Monica to operate the above -described parking zones for 5 years following the date of creation, in each of the respective entities, of the first mobile device parking payment zone, or until January 1, 2033, whichever is sooner. (Based on 09/03/2024 text) SB 615 (Allen) Vehicle traction batteries. Status: 08/31/2024 - Read third time. Passed. Ordered to the Senate. In Senate. Concurrence in Assembly amendments pending. Assembly amendments concurred in. (Ayes 33. Noes 1.) Ordered to engrossing and enrolling. 1st Mouse 2nd House 0Csk Pgliry F c[ l Floor posh Ppli" Fixnl Floor £pr4,0pr1[ EnrOmd Veoed C"pMred Location: 08/31/2024 - Senate ENROLLMENT Summary: Current law requires the Secretary for Environmental Protection to convene the Lithium -Ion Car Battery Recycling Advisory Group to review, and advise the Legislature on, policies pertaining to the recovery and recycling of lithium -ion vehicle batteries sold with motor vehicles in the state. Current law also requires the advisory group to submit policy recommendations to the Legislature aimed at ensuring that as close to 100%d as possible of lithium -ion vehicle batteries in the state are reused or recycled at end -of -life in a safe and cost-effective manner. This bill would require vehicle traction batteries, as defined, in the state to be recovered, and when possible, reused, repaired, repurposed, or remanufactured and eventually recycled at the end of their useful life, as provided. The bill would also require a battery supplier, as defined, to be responsible for, among other duties, ensuring the responsible end -of -life management of a vehicle traction battery if it is removed from a vehicle that is still in service, as provided, or if the battery is offered or returned to its battery supplier, and reporting information regarding the sale, transfer, or receipt of a vehicle traction battery or module to the department, as provided. The bill would impose related duties on a secondary user, as defined, and a secondary handler, as defined, including, among other duties, ensuring the responsible end - of -life management for a battery or returning a vehicle traction battery to the battery supplier, and reporting information regarding the sale, transfer, or receipt of a vehicle traction battery or module to the department as provided. (Based on 08/27/2024 text) SB 638 (Eclgman, D) Climate Resiliency and Flood Protection Bond Act of 2024. Status: 07/06/2023 - July 11 hearing postponed by committee. 1st Mouse 2nd House Desk Policy Fisrel Floor Desk Policy Fiscal Floor Conf.Conc, Enrolled Vetoed ChnpWred Location: 06/15/2023 - Assembly Water, Parks and Wildlife Summary: Would enact the Climate Resiliency and Flood Protection Bond Act of 2024 which, if approved by the voters, would authorize the issuance of bonds in the amount of $6,000,000,000 pursuant to the State General Obligation Bond Law, for flood protection and climate resiliency projects. (Based on 06/28/2023 text) SB 707 (Newman, D) Responsible Textile Recovery Act of 2024. Status: 08/30/2024 - Assembly amendments concurred in. (Ayes 32. Noes 8.) Ordered to engrossing and enrolling. 1st Meuse 2nd House Desk Policy Fiscal Floor Desk Policy Racal Floor Co-Konc, Enrolled Veoed Chnptered Location: 08/30/2024 - Senate ENROLLMENT Summary: Would enact a stewardship program known as the Responsible Textile Recovery Act of 2024, which would require a producer of apparel, as defined, or textile articles, as defined, to form and join a producer responsibility organization or PRO. The bill would require the PRO to be approved by the Department of Resources Recycling and Recovery pursuant to the requirements of the bill, as provided. The bill would require the department to adopt regulations to implement the program no earlier than July 1, 2028. The bill would require the PRO to submit to the department, for approval or disapproval, a complete plan for the collection, transportation, repair, sorting, and recycling, and the safe and proper management, of apparel, as defined, and textile articles, as defined, in the state. Upon approval of a plan, or commencing July 1, 2030, whichever is earlier, the bill would make a producer subject to specified civil penalties, unless the producer is a participant of a PRO, and all apparel and textiles are accounted for in the plan. The bill would require the PRO to review the plan at least every 5 years after approval. The bill would also require a PRO to submit an annual report to the department, as provided. The bill would require all reports and records provided to the department to be provided under penalty of perjury. By expanding the scope of the crime of perjury, the bill would impose a state -mandated local program. The bill would restrict public access to certain information collected for the purpose of administering the program. (Based on 08/22/2024 text) SB 834 (Portantino, D) Vehicles: preferential parking: residential, commercial, or other development project. Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 Status: 02/29/2024 - Re -referred to Com. on RLS. pursuant to Assembly Rule 96. 1st Heise 2nd House rl+-.k Policy Fise6l Floor M& pglicy Fie al Floor Cpof,Corx, Enrolled Vetoed Chaptered Location: 02/29/2024 - Assembly Rules Summary: Current law authorizes the legislative body of a city or a county to adopt ordinances establishing requirements for parking, and permits variances to be granted from the parking requirements of a zoning ordinance for nonresidential development if the variance will be an incentive to the development and the variance will facilitate access to the development by patrons of public transit facilities. Current law prohibits a public agency from imposing any minimum automobile parking requirement on any residential, commercial, or other development project, as defined, that is located within 1/2 mile of public transit, as defined. Current law, notwithstanding the above -described prohibition, authorizes a city, county, or city and county to impose or enforce minimum automobile parking requirements on a housing development project if specified conditions are met. Current law authorizes a local authority to authorize preferential parking for designated groups to park on specified streets if the local authority determines that use of the permits will not adversely affect parking conditions for residents and merchants in the area. This bill would prohibit a local authority from issuing any permit conferring preferential parking privileges to any residents or vendors of any developments within 1/2 mile of public transit and exempt from parking minimums. The bill would require the local authority to revise the boundaries of any such preferential parking district to exclude those developments from its boundaries. The bill would make related findings and declarations, and state that it is the intent of the Legislature to discourage car use by incentivizing development near public transit. (Based on 02/22/2024 text) SB 867 (Allen, D) Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024. Status: 07/03/2024 - Chaptered by Secretary of State - Chapter 83, Statutes of 2024 1st House 2nd House 11-1, Policy Frscal Floor Desk Policy pi —I Floor Conf.Ck­ Enrolled Vetoed Chaptered Location: 07/03/2024 - Senate CHAPTERED Summary: Would enact the Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, which, if approved by the voters, would authorize the issuance of bonds in the amount of $10,000,000,000 pursuant to the State General Obligation Bond Law to finance projects for safe drinking water, drought, flood, and water resilience, wildfire and forest resilience, coastal resilience, extreme heat mitigation, biodiversity and nature -based climate solutions, climate -smart, sustainable, and resilient farms, ranches, and working lands, park creation and outdoor access, and clean air programs. (Based on 07/03/2024 text) SB 905 (Wiener, D) Crimes: theft from a vehicle. Status: 08/16/2024 - Chaptered by Secretary of State - Chapter 170, Statutes of 2024 1st House 2nd House nr5k Policy FiScJl Floor Desk poli" Fix'l Floor CwdCorx, Enrolled Vetoed CHapm d Location: 08/16/2024 - Senate CHAPTERED Summary: Current law defines the crime of burglary to include entering a vehicle when the doors are locked with the intent to commit grand or petit larceny or a felony. Current law makes the burglary of a vehicle punishable as a misdemeanor or a felony. This bill would make forcibly entering a vehicle, as defined, with the intent to commit a theft or a felony therein a crime punishable by imprisonment in a county jail for a period not to exceed one year or imprisonment in a county jail for 16 months, or 2 or 3 years. (Based on 08/16/2024 text) Position: Support SB 937 (Wiener, D) Development projects: fees and charges. Status: 09/04/2024 - Enrolled and presented to the Governor at 4 p.m. 1st House 2nd House - • - • • 0 0 0 0­40---­0 11-1, Policy R-1 Floor Desk Policy pi —I Floor Cord.Co Vetoed Chap[ered Location: 09/04/2024 - Senate ENROLLED Summary: The Mitigation Fee Act regulates fees for development projects, fees for specific purposes, including water and sewer connection fees, and fees for solar energy systems, among others. The act, among other things, requires local agencies to comply with various conditions when imposing fees, extractions, or charges as a condition of approval of a proposed Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 development or development project. The act prohibits a local agency that imposes fees or charges on a residential development for the construction of public improvements or facilities from requiring the payment of those fees or charges until the date of the final inspection or the date the certificate of occupancy is issued, whichever occurs first, except for utility service fees, which the local agency is authorized to collect at the time an application for utility service is received. The act exempts specified units in a residential development proposed by a nonprofit housing developer if the housing development meets certain conditions. This bill would limit the utility service fees exception described above to utility service fees related to connections, and cap those fees at the costs incurred by the utility provider resulting from the connection activities. (Based on 08/30/2024 text) SB 969 (Wiener. D) Alcoholic beverages: entertainment zones: consumption. Status: 09/03/2024 - Enrolled and presented to the Governor at 3 p.m. 1st House 2nd House 11-1, Policy Rscal Floor 0,ck policy Fiscal Floor Cod.Conc. Vrtocd al p[ered Location: 09/03/2024 - Senate ENROLLED Summary: The Alcoholic Beverage Control Act contains various provisions regulating the application for, the issuance of, the suspension of, and the conditions imposed upon alcoholic beverage licenses by the Department of Alcoholic Beverage Control. Current law defines "entertainment zone" for purposes of the act as a zone created by ordinance on or after January 1, 2024, in the City and County of San Francisco, that authorizes consumption of one or more types of alcoholic beverages on public streets, sidewalks, or public rights -of -way adjacent to and during a special event permitted or licensed by the department. Current law authorizes the City and County of San Francisco to establish an entertainment zone, subject to certain requirements, including providing specified information relating to the entertainment zone to the department and establishing a process or procedure by which persons in possession of alcoholic beverages in the entertainment zone may be readily identifiable as being 21 years of age or older. This bill would, instead, define "entertainment zone" as a zone created by a city, county, or city and county ordinance on or after January 1, 2025, that authorizes consumption of one or more types of alcoholic beverages on public streets, sidewalks, or public rights -of -way. The bill would additionally authorize any city, county, or city and county to establish an entertainment zone, subject to the above -described requirements. Before enacting an ordinance to establish or modify an entertainment zone, the bill would require a city, county, or city and county to notify local law enforcement and request feedback about specific information, including, among others, the entertainment zone's proposed boundaries and days and hours of operation. (Based on 08/29/2024 text) SB 982 (Wahab, D) Crimes: organized theft. Status: 08/16/2024 - Chaptered by Secretary of State - Chapter 171, Statutes of 2024 1st House 2nd House *-- ICS!, Policy Rscal Floor Drsk policy Fiwal Floor CMd.C.dr1C. Enrolled Vetoed Chapt ..rrd Location: 08/16/2024 - Senate CHAPTERED Summary: Existing law, until January 1, 2026, makes a person guilty of organized retail theft, punishable as a misdemeanor or a felony, as specified, if the person acts in concert with one or more persons to steal merchandise from one or more merchant's premises or online marketplaces with the intent to sell or return the merchandise for value, acts in concert with 2 or more persons to receive, purchase, or possess merchandise knowing or believing it to have been stolen, acts as an agent of another to steal merchandise from one or more merchant's premises or online marketplaces as part of an organized plan to commit theft, or recruits, coordinates, organizes, supervises, directs, manages, or finances another to undertake acts of theft. This bill would extend the operation of the crime of organized retail theft indefinitely. By extending the operation of an existing crime, this bill would impose a state -mandated local program. This bill contains other related provisions and other existing laws. (Based on 08/16/2024 text) SB 1034 (Seyarto, R) California Public Records Act: state of emergency. Status: 07/18/2024 - Chaptered by Secretary of State - Chapter 161, Statutes of 2024 1st House 2nd House Desk Policy. Fiscal Floor Pcsk polls, Ri 1 Floor Co dkdO Enrolled Vetoed Chept—d Location: 07/18/2024 - Senate CHAPTERED Summary: The California Public Records Act requires state and local agencies to make their records available for public inspection, except as specified. Existing law requires each agency, within 10 days of a request for a copy of records, to determine whether the request seeks copies of disclosable public records in possession of the agency and to promptly notify the person of the determination and the reasons therefor. Existing law authorizes that time limit to be extended by no more than 14 days under unusual circumstances, and defines "unusual circumstances" to include certain circumstances. This bill would revise the unusual Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 circumstances under which the time limit may be extended to include the need to search for, collect, and appropriately examine records during a state of emergency, as defined, proclaimed by the Governor in the jurisdiction where the agency is located when the state of emergency currently affects, due to the state of emergency, the agency's ability to timely respond to requests due to staffing shortages or closure of facilities where the requested records are located, except as specified. (Based on 07/18/2024 text) SB 1037 (Wiener, D) Planning and zoning: housing element: enforcement. Status: 08/31/2024 - Read third time. Passed. Ordered to the Senate. In Senate. Concurrence in Assembly amendments pending. Assembly amendments concurred in. (Ayes 23. Noes 9.) Ordered to engrossing and enrolling. 1st House 2nd House Pcsk Policy Fiscal Fluor V—k Policy Fatal FOW Cpnfk—. E-11.d VMocd Chapb—d Location: 08/31/2024 - Senate ENROLLMENT Summary: The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. The Planning and Zoning Law requires the Department of Housing and Community Development (HCD) to determine whether the housing element is in substantial compliance with specified provisions of that law. The Planning and Zoning Law requires HCD to notify a city, county, or city and county, and authorizes HCD to notify the office of the Attorney General, that the city, county, or city and county is in violation of state law if the local government has taken action in violation of specified provisions of law. The Planning and Zoning Law also requires, among other things, that an application for a housing development be subject to a specified streamlined, ministerial approval process if the development satisfies certain objective planning standards. The Planning and Zoning Law requires a city or county to bring its general plan into substantial compliance with provisions regulating general plans and specifies timelines under which the city or county is required to bring its zoning ordinance into consistency if the court finds in favor of a plaintiff in an action challenging the validity of a general plan, or any mandatory element thereof, as specified. This bill, in any action brought by the Attorney General or HCD to enforce the adoption of housing element revisions, as specified, or to enforce any state law that requires a city, county, or local agency to ministerially approve any planning or permitting application related to a housing development project, as specified, would subject the city, county, or local agency to specified remedies, including a civil penalty of, at minimum, $10,000 per month, and not exceeding $50,000 per month, for each violation, as specified. The bill would require that the penalties set forth in its provisions only apply when the local agency's acts or omissions, as described, are arbitrary, capricious, or entirely lacking in evidentiary support, contrary to established public policy, unlawful, or procedurally unfair. The bill would require a court to modify certain of its prior orders, including an order directing a city or county to substantially comply with provisions regulating general plans and to bring its zoning ordinance into consistency, to impose, among other things, the maximum penalty specified in these provisions, as provided. (Based on 08/23/2024 text) Position: Oppose Unless Amended SB 1046 (Laird, D) Organic waste reduction: program environmental impact report: small and medium compostable material handling facilities or operations. Status: 09/03/2024 - Enrolled and presented to the Governor at 3 p.m. 1st House 2nd House rJ••,k W: it r F ••r :I -1-oi .),k PW y Fiscal Flppr Cwd•C—. E.MW Ve-d Chapt—d Location: 09/03/2024 - Senate ENROLLED Summary: Current law requires the Department of Resources Recycling and Recovery, in consultation with the State Air Resources Board, to adopt regulations to achieve certain reduction targets in the organic waste disposed in landfills and to analyze the progress that the waste sector, state government, and local governments have made in achieving those reduction targets, as provided. Current law authorizes the department to provide incentives to facilitate progress towards the reduction targets if the department determines that sufficient progress has not been made. The California Environmental Quality Act (CEQA), requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect, as provided. This bill would require the Department of Resources Recycling and Recovery to prepare and certify, by January 1, 2027, a program environmental impact report that streamlines the process with which jurisdictions can develop and site small and medium compostable material handling facilities or operations, as defined, for processing organic material, as specified. (Based on 08/28/2024 text) SB 1059 (Bradford, D) Cannabis: local taxation: gross receipts. Status: 08/30/2024 - In Senate. Ordered to engrossing and enrolling. Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 157 Hwse 2nd House Desk Policy Fr5cal Flour pe5k Poky Fatal Floor ConfQWK. Enrvll*d Veord Clhap[ered Location: 08/30/2024 - Senate ENROLLMENT Summary: The Cannabis Tax Law imposes an excise tax upon purchasers of cannabis or cannabis products sold in this state at the rate of 15% of the gross receipts of any retail sale by a cannabis retailer, and prior to July 1, 2022, a cultivation tax on all harvested cannabis that entered the commercial market, as specified. Current law provides that taxes imposed under the Cannabis Tax Law are in addition to any other tax imposed by a city or county. Current law defines "gross receipts" for purposes of the Cannabis Tax Law as it is defined under the Sales and Use Tax Law. This bill would prohibit a city or county from including in the definition of gross receipts, for purposes of any local tax or fee on a licensed cannabis retailer, the amount of any cannabis excise tax imposed under the Cannabis Tax Law or any sales and use taxes. By imposing new requirements on local governments with respect to their taxes and fees, the bill would impose a state -mandated local program. (Based on 09/03/2024 text) SB 1072 (Padilla, D) Local government: Proposition 218: remedies. Status: 08/29/2024 - Assembly amendments concurred in. (Ayes 30. Noes 9.) Ordered to engrossing and enrolling. 1st Meuse 2nd House rl+-,k Policy Fiscal Floor DCsk Pniky Fiscal Floor Conf.Coix. Enrvllod Vexed CihaptCrcd Location: 08/29/2024 - Senate ENROLLMENT Summary: The California Constitution sets forth various requirements for the imposition of local taxes. The California Constitution excludes from classification as a tax assessments and property -related fees imposed in accordance with provisions of the California Constitution that establish requirements for those assessments and property -related fees. Under these requirements, an assessment is prohibited from being imposed on any parcel if it exceeds the reasonable cost of the proportional special benefit conferred on that parcel, and a fee or charge imposed on any parcel or person as an incident of property ownership is prohibited from exceeding the proportional cost of the service attributable to the parcel. The Proposition 218 Omnibus Implementation Act prescribes specific procedures and parameters for local compliance with the requirements of the California Constitution for assessments and property -related fees. This bill would require a local agency, if a court determines that a fee or charge for a property -related service, as specified, violates the above -described provisions of the California Constitution relating to fees and charges, to credit the amount of the fee or charge attributable to the violation against the amount of the revenues required to provide the property -related service, unless a refund is explicitly provided for by statute. (Based on 09/03/2024 text) SB 1130 (Bradford. D) Electricity: Family Electric Rate Assistance program. Status: 09/04/2024 - Enrolled and presented to the Governor at 4 p.m. 1st Meuse 2nd House Desk Policy Fr5col Floor Dc5k Poky Fiscal Floor CwdCdnc, Enroll*d Veoed C"pwcd Location: 09/04/2024 - Senate ENROLLED Summary: Current law requires the Public Utilities Commission to continue a program of assistance to residential customers of the state's 3 largest electrical corporations consisting of households of 3 or more persons with total household annual gross income levels between 200% and 250% of the federal poverty guideline level, which is referred to as the Family Electric Rate Assistance (FERA) program. This bill would expand eligibility for the FERA program by eliminating the requirement that a household consist of 3 or more persons. The bill would require the commission, by March 1, 2025, and each year thereafter, to require the state's 3 largest electrical corporations to report on their efforts to enroll customers in the FERA program. The bill would require the commission, by June 1, 2025, and each year thereafter, to review each electrical corporation's report to ensure it has made reasonable efforts to enroll eligible households in the FERA program commensurate with the proportion of households the commission determines to be eligible within the electrical corporation's service territory. (Based on 08/30/2024 text) SB 1164 (Newman, D) Property taxation: new construction exclusion: accessory dwelling units. Status: 06/24/2024 - June 24 set for first hearing canceled at the request of author. 1st Meuse 2nd House Desk Policy Fftebl Floor Dh&k Policy Fiscal Floor Cod.Cdnc. Enrolled Vetoed Chapbered Location: 06/03/2024 - Assembly Revenue and Taxation Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 Summary: The California Constitution generally limits ad valorem taxes on real property to 1 % of the full cash value of that property. For purposes of this limitation, "full cash value" is defined as the assessor's valuation of real property as shown on the 1975-76 tax bill under "full cash value" or, thereafter, the appraised value of that real property when purchased, newly constructed, or a change in ownership has occurred. This bill would exclude from classification as "newly constructed" and "new construction" the construction of an accessory dwelling unit, as defined, if construction on the unit is completed on or after January 1, 2025, and before January 1, 2030, until one of specified events occurs. The bill would require the property owner to, among other things, notify the assessor that the property owner intends to claim the exclusion for an accessory dwelling unit and submit an affidavit stating that the owner shall make a good faith effort to ensure the unit will be used as residential housing for the duration the owner receives the exclusion. (Based on 05/16/2024 text) SB 1211 (Skinner, D) Land use: accessory dwelling units: ministerial approval. Status: 08/29/2024 - Assembly amendments concurred in. (Ayes 30. Noes 9.) Ordered to engrossing and enrolling. 1st Hetlse 2nd House O • • • • 9 0 0 0- 4-- -­0 peak PpliSy FSpnl Floor 4e5k Poky Fatal Floor Co 40)nc, Enrolled Vowd C"poered Location: 08/29/2024 - Senate ENROLLMENT Summary: The Planning and Zoning Law authorizes a local agency, by ordinance, to provide for the creation of accessory dwelling units (ADUs) in areas zoned for residential use, as specified. That law prohibits, if a local agency adopts an ordinance to create ADUs in those zones, the local agency from requiring the replacement of offstreet parking spaces if a garage, carport, or covered parking structure is demolished in conjunction with the construction of, or is converted to, an ADU. This bill would also prohibit the local agency from requiring the replacement of offstreet parking spaces if an uncovered parking space is demolished in conjunction with the construction of, or is converted to, an ADU. (Based on 09/03/2024 text) SB 1243 (Dodd, D) Campaign contributions: agency officers. Status: 08/31/2024 - Read third time. Passed. Ordered to the Senate. In Senate. Concurrence in Assembly amendments pending. Assembly amendments concurred in. (Ayes 39. Noes 0.) Ordered to engrossing and enrolling. lsi House 2nd House rlGSk Pgli(y F5cal FlWr OeSk Ppli�y Fi 'd Floor Coif.{9nC Enrpll4d VMpC[l ChpplCrcd Location: 08/31/2024 - Senate ENROLLMENT Summary: The Political Reform Act of 1974 prohibits certain contributions of more than $250 to an officer of an agency by any party, participant, or party or participant's agent in a proceeding while a proceeding involving a license, permit, or other entitlement for use is pending before the agency and for 12 months following the date a final decision is rendered in the proceeding, as specified. The act requires disclosure on the record of the proceeding, as specified, of certain contributions of more than $250 within the preceding 12 months to an officer from a party or participant, or party's agent. The act disqualifies an officer from participating in a decision in a proceeding if the officer has willfully or knowingly received a contribution of more than $250 from a party or a party's agent, or a participant or a participant's agent, as specified. The act allows an officer to cure certain violations of these provisions by returning a contribution, or the portion of the contribution of in excess of $250, within 14 days of accepting, soliciting, or receiving the contribution, whichever comes latest. This bill would raise the threshold for contributions regulated by these provisions to $500, as specified. The bill would extend the period during which an officer may cure a violation to within 30 days of accepting, soliciting, or directing the contribution, whichever is latest. The bill would specify that a person is not a "participant" for the purposes of these provisions if their financial interest in a decision results solely from an increase or decrease in membership dues. (Based on 08/22/2024 text) SB 1319 (Wahab, D) Skilled nursing facilities: approval to provide therapeutic behavioral health programs. Status: 09/03/2024 - Enrolled and presented to the Governor at 3 p.m. lsi Hake 2nd 11- rl+-.k PpliSy Fr5col Floor QeSk Policy Fatal Floor CM40)-x. Enr911*d VMoed C"pMrcd Location: 09/03/2024 - Senate ENROLLED Summary: Current law provides for the licensure and regulation of health facilities, including, but not limited to, skilled nursing facilities, by the State Department of Public Health. The Alfred E. Alquist Hospital Facilities Seismic Safety Act of 1983 establishes, under the jurisdiction of the Department of Health Care Access and Information (HCAI), a program of seismic safety building standards for certain hospitals constructed on and after March 7, 1973. The act requires the governing board or other governing authority of a hospital, before adopting plans for the hospital building, as defined, to submit to HCAI an application for approval, accompanied by the plans, as prescribed. The Medi-Cal program is administered by the State Department of Health Care Services (DHCS), and under which qualified low-income individuals receive health care services. The Medi-Cal Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 program is, in part, governed and funded by federal Medicaid program provisions. Current law authorizes DHCS to adopt regulations to certify providers enrolled in the Medi-Cal program, and applicants for enrollment as providers, including providers and applicants licensed as health care facilities. This bill would require a licensed skilled nursing facility that proposes to provide therapeutic behavioral health programs in an identifiable and physically separate unit of a skilled nursing facility, and that is required to submit an application and receive approvals from multiple departments, as specified above, to apply simultaneously to those departments for review and approval of application materials. The bill, when an applicant for approval from one of the specified departments is unable to complete the approval process because the applicant has not obtained required approvals and documentation from one or both of the other departments, would authorize the applicant to submit all available forms and supporting documentation, along with a letter estimating when the remaining materials will be submitted. The bill would require the receiving department to initiate review of the application, and would require final approval of the application to be granted only when all required documentation has been submitted by the applicant to each department from which approval is required. (Based on 08/28/2024 text) SB 1361 (Blakespear, D) California Environmental Quality Act: exemption: local agencies: contract for providing services for people experiencing homelessness. Status: 08/19/2024 - Chaptered by Secretary of State - Chapter 188, Statutes of 2024 lsi House 2nd House �0 0 0 rlq Sk Pgli�y p5c3l Flppr pr5k Ppli4y Fi: d Floor Cprd-Cgnc. Enrolled Vetoed Chrptprrd Location: 08/19/2024 - Senate CHAPTERED Summary: The California Environmental Quality Act (CEQA) exempts for its requirements, among other things, actions taken by the Department of Housing and Community Development, the California Housing Finance Agency, or a local agency not acting as the lead agency to provide financial assistance or insurance for the development and construction of residential housing for persons and families of low or moderate income, as provided. This bill would additionally exempt from CEQAs requirements actions taken by a local agency to approve a contract for providing services for people experiencing homelessness, as provided. (Based on 08/19/2024 text) SJR 13 (Newman, D) Navy North Hangar Fire: contamination cleanup. Status: 07/17/2024 - Chaptered by Secretary of State - Chapter 149, Statutes of 2024 1st House 2nd House r' 11-1, Poli'y R—1 Flppr Desk Policy FI—I Floor Co d.Cd— Enrolled Vexed Ch phnd Location: 07/17/2024 - Senate CHAPTERED Summary: Would, among other things, urge the United States Congress and President Joseph R. Biden to support a $100,000,000 supplemental funding request to address the ongoing impacts on public health, the environment, and the local economy caused by cross -jurisdictional pollution from the Navy North Hangar Fire. The measure would also urge President Biden to declare a national emergency due to those ongoing impacts, and would urge President Biden and the United States Congress to include in future federal budgets sufficient ongoing operational and maintenance funding for Navy North Hangar Fire remediation. (Based on 07/17/2024 text) Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 CITY OF TUSTIN 2024 LEGISLATIVE PLATFORM The Mayor and City Manager are authorized to submit advocacy letters on behalf of the City if the proposed clearly follows the City's adopted legislative platform. PURPOSE The City of Tustin's 2024 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 2024 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 I. 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. II. 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 disaster recovery. Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 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 costs to CalPERS. 8. Support the reimbursement of local governments for disaster related expenses, including the need for essential public safety service overtime, personal protective equipment, public health response 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. 13.Oppose efforts to further erode local control over permitting and enforcement of street vending. E Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 Economic Development 14. Support international, statewide, regional, and local efforts to attract, retain and provide resources for current and future commercial and industrial businesses. 15. 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. 16. Support economic development initiatives that preserve and enhance a positive business climate and maintain and grow the business tax base. 17. 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 18.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. 19.Oppose legislation, proposals, or regulations that penalize local governments for noncompliance with their housing element or regional housing needs assessment requirements. 20. 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. 21. 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 retaining local control. 22. Monitor local, state, and federal actions related to medical and recreational marijuana regulatory changes. 23. Support local control over the licensure and regulation of alcoholism or drug abuse recovery or treatment facilities. 24.Oppose legislation that would erode local control over City owned property, including Tustin Legacy and Pacific Center East. 25. Support proposals that provide funding or tools to preserve historic neighborhoods and structures. 3 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 26.Oppose proposals that increase requirements and place undue burdens on the City with regard to the Surplus Land Act. 27.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 28.Oppose efforts that erode funding for vital regional and community services that negatively impact resident 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. 29. Support efforts that strengthen policies to fund parks, open space acquisitions, bike lanes, and active transportation opportunities. 30. Promote local agency control over policies that recognize the benefits of parks and recreation facilities. 31. Support efforts to increase funding, accessibility and programs for seniors. 32. Support policies that foster the creation and sustenance of public art initiatives. Public Works 33. Support increased state and federal funding of transportation improvements with regional or sub -regional benefits for all modes of transportation. 34. Support protection of dedicated transportation -related tax revenues and enhance the ability of local agencies to finance local transportation programs and facilities. 35. Support all efforts to create efficiencies within the California Environmental Quality Act (CEQA). 36. Support measures and reforms which streamline the CEQA process for the development of housing and mixed -use infill projects that support transit. 37. Support legislation that allows local governments to continue to retain full authority to reject projects or to condition project approvals and impose mitigation measures. 38. Support efforts to facilitate public -private partnerships to complete development projects. 39.Oppose efforts to remove City representation on regional boards that oversee water, drainage and/or sewage. n Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 40. Support efforts that fund broadband infrastructure. 41. 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 42. 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. 43. Support the enhancement of a reliable and sustainable water supply for California as well as measures that improve water quality in the region. 44. Monitor the development of a state framework for long term water conservation measures. 45. Support policy development, funding and research for water conservation, addressing urban runoff and beach closures and required programs associated with Orange County National Pollutant Discharge Elimination System (NPDES) permits. 46. Support efforts to address long term water resiliency and affordability without implementing a statewide water tax. 47.Oppose efforts that restrict or eliminate local permitting and enforcement of water quality measures. 48.Oppose efforts that unilaterally reduces the indoor water use standards without the input of local and regional stakeholders. Human Resources and Risk Management 49.Oppose measures that reduce local control over employee relations issues or mandate new or enhanced local government employee benefits. 50. Support pension reform measures designed to (i) control or decrease employer liability, or (ii) increase transparency in reporting, without imposing undue hardships or administrative burdens on local government. 51.Oppose redundant or unnecessary proposals (legislation or policies) that require excessive human resources burdens without sufficient reimbursement. 5 Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 Public Safety 52. Support measures that encourage community safety and well-being including those which support state and federal reimbursement of homeland security related expenses. 53.Oppose legislation that places burdensome restrictions on law enforcement and limits their ability to protect public safety. 54.Oppose legislative attempts at early release of incarcerated prisoners and measures that would further de -criminalize non-violent offenses. 55. Support funding for local mitigation efforts related to Proposition 47 (The Reduced Penalties for Some Crimes Initiative — 2014) and Proposition 57 (The Public Safety and Rehabilitation Act — 2016) 56. Support initiatives involving county, state, and federal governments to reduce and prevent homelessness in Orange County. 57. Support measures that provide funding and local resources for wildfire fire prevention, suppression, and mitigation. 58. Support local control over adult entertainment facilities, alcohol establishments and properties where illegal drugs are sold. 59. 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. 60. Support legislation increasing resources and local authority for abatement of public vandalism, especially graffiti. 61. Support regional and state proposals to increase funding for locally operated homeless shelters. 62.Oppose efforts to limit the City's ability to enforce parking rules and regulations and recover the costs of implementation and maintenance. 63. Support efforts that add de-energization to the conditions that constitute a state and local emergency. 64.Oppose efforts that change the public safety personnel certification framework and subject the City to additional litigation. R Docusign Envelope ID: A378D9AB-B8A3-461D-8C58-E562DC6AAEA6 65. Support efforts to address loud noise vehicles by providing public safety officers with resources to enforce state laws and local ordinances. 66. Support legislation that deters the distribution, sales, and consumption of controlled substances. 7