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HomeMy WebLinkAbout06 LEGISLATIVE UPDATEDocusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 MEETING DATE TO: FROM: SUBJECT: SUMMARY: Agenda Item 6 AGENDA REPORT Reviewed: Initial ass City Manager _ Finance Director N/A FEBRUARY 18, 2025 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL ALDO E. SCHINDLER, CITY MANAGER LEGISLATIVE UPDATE Consideration of 2025 Legislative Platform and updates on legislative activity at the state and federal level. RECOMMENDATION: It is recommended that the City Council take the following actions: 1. Adopt 2025 Legislative Platform 2. Receive and file legislative update prepared by Townsend Public Affairs FISCAL IMPACT: There is no fiscal impact associated with this item. CORRELATION TO THE STRATEGIC PLAN: The Legislative Update 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: 2025 Legislative Platform Each year, the City prepares a Legislative Platform that is designed to do the following: - Provide direction to the City's legislative delegation on priorities, projects and principles of the City Council Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 City Council Agenda Report Legislative Update February 18, 2025 Page 2 - Allows staff and Townsend Public Affairs to identify priority bills being discussed in Sacramento and Washington, D.C. to create a targeted outreach plan - Allows staff and Townsend Public Affairs to act quickly on priority issues being discussed in Sacramento and Washington, D.C. The Legislative Platform includes guiding principles that give broad direction to staff and Townsend Public Affairs when considering legislative issues: - Preserve Local Control - Promote Fiscal Stability - Support Funding Opportunities The Legislative Platform also includes more specific statements in various policy areas such as: - Local Governance - Economic Development - Land Use Planning and Housing - Parks and Recreation - Public Works - Water Quality and Water Supply - Human Resources and Risk Management - Public Safety Each City department was given time to review and recommend modifications to the draft Legislative Platform prior to City Council consideration. Adoption of the Legislative Platform does not mean that staff and Townsend Public Affairs will focus solely on bills or issues that fall within the Legislative Platform, nor does it mean that Townsend Public Affairs will not continually seek the City's input or positions on specific legislation. Staff and Townsend Public Affairs will continue to keep the City Council apprised of legislation and proposals (whether specifically addressed by the Legislative Platform or not), and TPA will continue to seek input from the City as legislation of legislative proposals are discussed. The draft 2025 Legislative Platform is included as Attachment 1. Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 City Council Agenda Report Legislative Update February 18, 2025 Page 3 Legislative Update Townsend Public Affairs has created a summary of state and federal legislative activity for the month of January 2025 which is included as Attachment 2. Attachments: 1. Draft 2025 Legislative Platform 2. Townsend Public Affairs January 2025 update Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 CITY OF TUSTIN 2025 LEGISLATIVE PLATFORM The Mayor and City Manager are authorized to submit advocacy letters on behalf of the City if the proposed legislation, regulation, or state budget spending directive clearly follow the City's adopted legislative platform. PURPOSE The City of Tustin's 2025 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 2025 legislative, regulatory, and state budget issues in a timely manner, without precluding the consideration of additional 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, and 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: 11A96A78-34D4-4488-B1A8-D7DA505A8514 POLICY STATEMENTS Local Governance 1. 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. 2. Support maximum flexibility for local government in contracting and contract negotiations. 3. Support the implementation of additional flexibilities governing open government initiatives including provisions of the Ralph M. Brown Act. 4. Support legislation that facilitates the flexibility of local governments to share resources to increase efficiencies and decrease costs. 5. Support legislation that preserves the ability of local governments to determine the appropriate type of election and representation for their jurisdiction. 6. 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. 7. Oppose state or federal efforts to "borrow" local revenues and encourage the state to find other methods of balancing its budget. 8. Support and monitor efforts to increase the City's ability to recover payment related fees from customers. 9. Oppose policies that would increase the voter threshold for local revenue measures or would increase the potential for litigation over local taxes and fees. 10.Oppose efforts to further erode local control over permitting and enforcement of street vending. 11.Oppose and monitor efforts to increase City contribution costs to CalPERS. Economic Development 12. Support international, statewide, regional, and local efforts to attract, retain and provide resources for current and future commercial and industrial businesses. 13. 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. 1► Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 14. Support economic development initiatives that preserve and enhance a positive business climate and maintain and grow the business tax base. 15. 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 16. 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. 17. Support funding and policy modifications that require additional staffing resources be deployed by HCD to ensure uniformity within the housing element compliance and review process. 18. Support policies and regulations that require additional transparency and local stakeholder input within the Regional Housing Needs Determination (RHND) process. 19. 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. 20. Monitor local, state, and federal actions related to medical and recreational marijuana regulatory changes. 21. Support local control over the licensure and regulation of residential recovery facilities, parolee homes, sober living homes, and other group accommodations in residential areas, while respecting disabled persons' right to housing. 22. Support proposals that provide funding or tools to preserve historic neighborhoods and structures. 23.Oppose legislation that would erode local control over City owned property, including Tustin Legacy and Pacific Center East. 24.Oppose proposals that increase requirements and place undue burdens on the City with regard to the Surplus Land Act. 25.Oppose efforts that require the City to ministerially approve housing development projects without adequate input from local agencies or a robust public engagement process. 3 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 26.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. 27. Support legislation, proposals, or regulations that helps cities achieve their housing element or regional housing needs assessment requirements and provides benefits for those that are fully compliant. 28.Oppose legislation or proposals that take away non -housing related revenues from cities for Housing Element or RHNA non-compliance. Parks and Recreation 29. Support continued state funding for local art, cultural, and music programs. 30. Support the creation of more affordable, innovative, and quality parks and recreation. 31. Support the inclusion of per -capita grants to cities and counties within statewide park bond measures. 32. Support efforts that strengthen policies to fund parks, open space acquisitions, bike lanes, and active transportation opportunities. 33. Promote local agency control over policies that recognize the benefits of parks and recreation facilities. 34. Support efforts to increase funding, accessibility and programs for seniors. Public Works 35. Support increased state and federal funding of transportation improvements with regional or sub -regional benefits for all modes of transportation. 36. Support protection of dedicated transportation -related tax revenues and enhance the ability of local agencies to finance local transportation programs and facilities. 37. Support Federal, State, County and local programs to increase funding and simplify permitting for transit, bicycling, and pedestrian travel. 38. Support all efforts to create efficiencies within the California Environmental Quality Act (CEQA), including benefits to streamline the development of mixed use infill projects that support transit and housing. 39. Support legislation that allows local governments to continue to retain full authority to reject projects or to condition project approvals and impose mitigation measures. M Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 40. Support efforts to facilitate public -private partnerships to complete development projects. 41. Support efforts that fund broadband infrastructure. 42. Support efforts that assist the City in meeting its waste and recycling mandates and adding flexibility to comply with state regulations. 43.Oppose efforts to remove City representation on regional boards that oversee water, drainage and/or sewage. Water Quality and Water Supply 44. 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. 45. Support the enhancement of a reliable and sustainable water supply for California as well as measures that improve water quality in the region. 46. Monitor the development of a state framework for long term water conservation measures. 47. 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. 48. Support efforts to address long term water resiliency and affordability without implementing a statewide water tax. 49. Support legislation that preserves local discretion in the assessment, collection and usage of development fees for projects, including but not limited to, water, wastewater, transportation, and other critical infrastructure needs. 50.Oppose efforts that restrict or eliminate local permitting and enforcement of water quality measures. 51.Oppose efforts that unilaterally reduces the indoor water use standards without the input of local and regional stakeholders. 5 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 Human Resources and Risk Management 52. 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. 53. Support policy and regulatory reforms to liability insurance to protect the function of local governments from unforeseen risk circumstances. 54. Support workers' compensation -related legislative measures which positively affect public employers. 55.Oppose redundant or unnecessary proposals (legislation or policies) that require excessive human resources burdens without sufficient reimbursement, such as numerous annual reports to the state on a variety of topics. 56.Oppose measures that reduce local control over employee relations issues or mandate new or enhanced local government employee benefits. Public Safety 57. Support measures that encourage community safety and well-being including those which support state and federal reimbursement of homeland security related expenses. 58. Support funding to mitigate the effects of Proposition 47 (The Reduced Penalties for Some Crimes Initiative — 2014) and Proposition 57 (The Public Safety and Rehabilitation Act — 2016) 59. Support initiatives involving county, state, and federal governments to reduce and prevent homelessness in Orange County. 60. Support measures that provide funding and local resources for wildfire fire prevention, suppression, and mitigation. 61. Support local control over adult entertainment facilities, alcohol establishments and properties where illegal drugs are sold. 62. 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. 63. Support legislation increasing resources and local authority for abatement of public vandalism, especially graffiti. Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 64. Support Federal, State, County or local efforts to develop programs, partnerships or grants programs to assist cities in providing housing solutions and/or services to address homelessness. 65. Support regional and state proposals to increase funding for locally operated homeless shelters. 66. Support efforts that add de-energization to the conditions that constitute a state and local emergency. 67. Support legislation that deters the distribution, sales, and consumption of controlled substances. 68. Support the continuation of Cal OES emergency preparedness funding for cities and counties to provide organized staffing during incidents. 69.Oppose legislation that places burdensome restrictions on law enforcement and limits their ability to protect public safety. 70. Support efforts that assist law enforcement in the rehabilitation of formerly incarcerated individuals. 71.Oppose efforts to limit the City's ability to enforce parking rules and regulations and recover the costs of implementation and maintenance. 7 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 TOWNSEND TPA MEMORANDUM To: City of Tustin From: Townsend Public Affairs Date: February 3, 2025 Subject: January 2025 Legislative Monthly Report The Legislature reconvened in January for the 2025-2026 Legislative Session, commencing with the release of Governor Newsom's proposed FY 2025-26 State Budget. Legislators also began introducing new bills and resumed the Special Session declared by Governor Newsom in November 2024, aimed at allocating funding for potential federal litigation against the Trump Administration. In response to the devastating wildfires impacting Southern California communities, the Special Session was expanded to include measures related to a Los Angeles County wildfire recovery package. Below is an overview of pertinent state actions from the month of January. STATE BUDGET Breaking with tradition, the budget presentation was hosted by State Finance Director Joe Stephenshaw at the State Capitol, on January 10, while Governor Newsom remained in Los Angeles monitoring the ongoing wildfire response alongside Mayor Karen Bass and other state officials. Prior to the January 10 constitutional deadline, the Governor presented a budget preview, which despite a projected $2 billion deficit from the Legislative Analyst's Office, delivered a balanced $322.2 billion budget with no deficit and a modest surplus, backed by $16.9 billion in reserves. The Governor's proposal underscores California's economic leadership while addressing uncertainties posed by the incoming federal administration and anticipated challenges. Overall, the Governor acknowledged that the budget is a living document, subject to refinement during the May Revise period as updated tax receipt data becomes available. Looking forward to the next several weeks, the Legislature will hold budget committee hearings to receive additional information on the proposals contained within the Governor's budget proposal, as well as work to develop their own list of priorities. The budget subcommittee hearings will continue through the spring until the Governor provides updated financial information, and refined proposals, as part of the May Revise. At that point, the Legislature and Administration will work to reach agreement on a final budget proposal to be adopted prior to June 15. As always, subsequent revisions to the Budget Act can be expected in the later summer months. Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 Senate Budget and Fiscal Review Committee Informational Hearing In the last week of January, the Senate Budget and Fiscal Review Committee held an informational hearing containing an overview of Governor Newsom's proposed 2025-26 State Budget. The Committee was scheduled to receive an update from the California Air Resources Board (CARB) on the implementation of Senate Bill 253 (Wiener, 2023). However, due to scheduling conflicts, Committee Chair Senator Scott Wiener announced that the update from CARB will be presented during the first week of February. The Legislative Analyst's Office (LAO) presented an overview of the Governor's budget, highlighting key proposals and fiscal projections for the upcoming fiscal year. Overall, the LAO stated that while the Governor's proposed FY2025-26 budget appears balanced, ongoing structural deficits pose significant long-term challenges, and the LAO reiterated the importance of prudent fiscal management to mitigate projected structural deficits in the coming years. The LAO recommended that policymakers take a cautious approach to new spending initiatives and consider additional strategies to strengthen the State's fiscal position. Some recommendations include identifying further opportunities for cost containment, reassessing revenue policies, or implementing structural reforms to reduce long-term expenditure growth. The report suggests that careful fiscal management in the coming years will be essential to maintaining budget stability and avoiding deeper cuts in the future. Overall, the questions and comments from Committee Members focused on ensuring fiscal responsibility while balancing the need for continued investments in education, housing, climate action, and social services. Numerous legislators expressed concerns over proposed funding shifts, the sustainability of certain programs, and the potential long-term consequences of the budgetary decisions. Looking forward, Budget Subcommittees in both chambers will begin detailed reviews of specific budget areas, and will begin to hold hearings where legislators, experts, and the public can provide testimony on funding priorities and potential revisions. Department of Finance Issues Workload Budget Letter In mid -January, the California Department of Finance released a Budget Letter providing updated guidance for the 2025-26 Budget process. Despite a balanced budget and minor revenue growth outlined in the Governor's January proposal, future structural deficits and uncertainties, including delayed tax filings due to recent fires in Los Angeles and Ventura counties, necessitate fiscal caution. No increased current year spending is expected prior to the May Revise and the Administration anticipates that most changes within the May Revise will be based on caseload shifts, not investments in new or significantly expanded programs. Departments are directed to prioritize proposals within this framework, as resource constraints may limit funding for both new and existing adjustments. Key deadlines for Spring Budget Change Proposals are February 7 for general requests and February 10 for Capital Outlay requests. Agencies are advised to ensure compliance with these parameters and are cautioned that they "should have no expectation of full funding for either new or existing proposals or adjustments". The budget will continue to evolve over the coming months as legislative budget subcommittees evaluate the Governor's January Budget proposal. 4 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 STATE LEGISLATURE In January, Legislators introduced hundreds of new measures, which will continue in the coming weeks, leading up to the bill introduction deadline on February 21. The February 21 bill introduction deadline will signal a change in legislative action, with the beginning of legislative policy committee hearings to kickstart the bill consideration process that runs until September 12. So far, approximately 708 bills (including measures introduced in the Special Session), resolutions, and constitutional amendments have been introduced since December 2. Notable measure introductions include: BILL SUMMARY/STATUS Eliminates the sunset on provisions added to the Brown Act by Assembly Bill 2449 (Rubio, 2022), which provided local agencies the option to invoke AB 259 (Rubio) alternative Brown Act meeting procedures in the event of a board member's absence in connection with a "just cause" or "emergency circumstance." Status: Pending Policy Committee Referral Clarifies that landlords prioritizing applicants who qualify for or receive rental AB 282 assistance does not count as income -based discrimination under the Pellerin California Fair Employment and Housing Act (FEHA). Status: Pending Policy Committee Referral Requires the Public Utilities Commission to reduce the kilowatt -per -hour AB 286 rate for electricity charged to ratepayers by not less than 30%. (Gallagher) Status: Pending Policy Committee Referral Effective from June 1, 2025, to June 1, 2031, this measure prohibits cities and counties from modifying building standards, including those related to residential units, unless the California Building Standards Commission (Commission) deems such modifications necessary to protect health and safety as emergency standards. Additionally, AB 306 restricts the AB 306 Commission from considering, approving, or adopting any new building Schultz standards affecting residential units during this period, unless similar emergency conditions are determined to exist. This measure would apply to all cities, including charter cities. This measure contains an urgency statute and would become effective immediately if signed into law. Status: Pending Policy Committee Referral 3 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 The Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, known as Proposition 4, allows for $10 billion in bonds to fund projects related to water safety, drought, wildfire resilience, and climate solutions. Approved in the November 2024 election, it allocates AB 307 (Petrie- $1.5 billion for wildfire prevention. Within this, $25 million is designated for Norris) new fire detection technologies by the Department of Forestry and Fire Protection. This measure requires that $10 million (from the $25 million for fire detection technologies) be specifically allocated for the ALERTCalifornia fire camera mapping system. Status: Pending Policy Committee Referral Existing law that prohibits manufacturing, distributing, selling, or offering for sale in the state any new, not previously owned, textile articles that contain regulated perfluoroalkyl and polyfluoroalkyl substances (PFAS), except as AB 333 (Alanis) specified, and requires a manufacturer to use the least toxic alternative when removing regulated PFAS in textile articles. Until January 1, 2028, AB 333 exempts apparel designed for and used by law enforcement. Status: Pending Policy Committee Referral Authorizes Department of Alcoholic Beverage Control to issue an "additional serving hours license" if the local governing body of the city, in which the licensed premises is located, adopts an ordinance that meets AB 342 certain requirements. The "additional serving hours license" allows (Haney) licensees to sell or give alcoholic beverages until 4:00am on Thursday, Friday, Saturday, and certain holidays. Status: Pending Policy Committee Referral Requires broadband internet service providers to offer affordable home AB 353 internet to California residents. Boerner Status: Pending Policy Committee Referral Exempts student and faculty housing projects, as defined, from requiring a AB 357 coastal development permit. Alvarez Status: Pending Policy Committee Referral Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 The Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024, known as Proposition 4, allows for $10 billion in bonds to fund projects related to water safety, drought, wildfire resilience, and climate solutions. Approved in the November 2024 election, it allocates SB 90 (Sevarto) $1.5 billion for wildfire prevention. This measure expands the list of fundable projects to include improvements to public evacuation routes, firefighting support facilities like mobile rigid dip tanks and water storage, and enhancements to fire engines and helicopters. Status: Pending Policy Committee Referral Redefines a "housing development" for purposes of the Density Bonus Law to instead mean a development project for 5 or more residential units, SB 92 including mixed -use developments if at least two thirds of the square (Blakespear) footage of the mixed -use development is designated for residential use. Status: Pending a hearing date in the Senate Housing Committee. Allows individuals to file civil lawsuits for damages of $10,000 or more SB 222 against parties responsible for climate disasters or extreme weather events Wiener linked to climate change, that meets specific criteria. Status: Pending Policy Committee Referral First Extraordinary Session Update On January 22, the Special Session Budget Committees in both legislative houses convened to consider measures within a Los Angeles County wildfire recovery package, along with legislation to allocate funding for anticipated federal lawsuits against the Trump Administration. On January 23, both houses approved the measures included in the Los Angeles wildfire response and recovery package. These measures contain an urgency statute, allowing for immediate implementation upon being signed into law. On the same day, Governor Newsom signed the following wildfire recovery legislation into law: ABX1 4 (Gabriel and Wiener) Allocates up to $1.5 billion in one-time General Fund for immediate disaster relief efforts, such as emergency protective measures, evacuations, sheltering for survivors, household hazardous waste removal, assessment and remediation of post -fire hazards such as flash flooding and debris flows, traffic control, air quality and water and other environmental testing. SBX1 3 (Wiener and Gabriel) allocates the following one-time General Fund for the LA Wildfire relief recovery: • $4 million one-time General Fund to the Department of Housing and Community Development for a grant program to help local governments in areas impacted by the Los Angeles wildfires, to provide additional planning, review, and building inspection resources for purposes of expediting building approvals during the recovery period after the fires (available until June 30, 2028). 5 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 $1 million one-time General Fund to the Department of General Services Los Angeles and Pasadena school districts and affected charter schools to rebuild damaged facilities (available until June 30, 2026). Up to $1 billion one-time General Fund for state departments/agencies to address emergency needs in wildfire -affected areas, subject to the DOF's approval, until the state of emergency ends. In late January, the special session considered but did not take final action on the measures below, which are aimed at allocating funding for future federal lawsuits against the Trump Administration. SBX1 1 (Wiener and Gabriel) allocates up to $25 million to the Department of Justice (DOJ) to defend the state against federal enforcement and legal actions, pursue affirmative litigation against federal government actions, and take authorized administrative measures to mitigate federal impacts. This measure mandates annual reporting by the DOJ to the Joint Legislative Budget Committee on administrative activities and the use of outside counsel. Additionally, the DOJ must maintain a public website that details litigation efforts against the federal government. The allocated funds are available for encumbrance until June 30, 2026, and for expenditure until June 30, 2028. SBX1 2 (Wiener and Gabriel) allocates funding to support legal and immigration services for vulnerable populations. It appropriates $10 million to the Judicial Council, distributed through the Legal Services Trust Fund Commission, to provide legal aid to individuals at risk of detention, deportation, eviction, wage theft, and other safety threats due to federal actions. An additional $10 million is designated for immigration services through the Department of Social Services, and $5 million is allocated to the California Access to Justice Commission to support nonprofit legal service providers. Up to 2.5% of funds in relevant programs may be used for administrative costs. The funding is available for encumbrance until June 30, 2026, and for expenditure until June 30, 2028, with all programs requiring regular reporting to the Joint Legislative Budget Committee. Ralph M. Brown Act Modernization Legislation Update In March 2020, Governor Gavin Newsom issued an Executive Order to provide flexibility under public meeting requirements to local governments in response to the COVID-19 pandemic. The Executive Order temporarily suspended specific provisions of the Ralph M. Brown Act (Brown Act), enabling public agencies to hold meetings via teleconference without the traditional in - person attendance requirements. Public agencies were still required to provide a method for public participation, ensuring the continuity of governmental operations while prioritizing public health and safety during the crisis. The temporary suspension under the Governor's Executive Order expired on September 30, 2021. Since then, legislators have introduced various measures to modernize and expand provisions in the Brown Act. In late -January, two Brown Act modernization measures were introduced in the Assembly and Senate. AB 259 introduced by Assembly Member Blanca Rubio makes permanent certain provisions added to the Ralph M. Brown Act by Assembly Bill 2449 (Rubio, 2022). AB 2449 (Rubio, 2022) provides local agencies the option to invoke alternative Brown Act meeting procedures in the event of a board member's absence in connection with a 'just cause" or "emergency circumstance." X Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 SB 239 introduced by Senator Jesse Arreguin expands existing teleconferencing provisions under the Ralph M. Brown Act by allowing certain subsidiary bodies of local agencies to use alternative teleconferencing procedures while maintaining public access and transparency. This measure imposes specific requirements for agenda posting, public participation, and on -camera visibility during meetings. Subsidiary bodies overseeing police oversight, elections, or budgets are exempt from teleconferencing provisions. SB 239 (Arreguin) is a reintroduction of AB 817 (Pacheco, 2023), which failed passage in the 2023-24 Legislative Session. SB 239 (Arreguin) currently contains amendments which were recommended by the Senate Local Government Committee for AB 817 (Pacheco, 2023), which were not incorporated into AB 817. Currently, AB 259 (Rubio) and SB 239 (Arreguin) are pending committee assignment. CARB's 2025 Priorities: Advanced Clean Fleets (ACF) Regulations and Local Government Compliance As cities and counties across California continue working toward a cleaner transportation future, the California Air Resources Board (CARB) has reaffirmed its commitment to enforcing Advanced Clean Fleets (ACF) regulations on state and local fleets. Despite recent shifts at the federal level — including CARB's withdrawal of several Clean Air Act waiver requests —the requirements for public sector fleets remain in place. Local governments therefore must continue their compliance efforts as CARB moves forward with its broader climate agenda. ACF Regulations: What Public Agencies Need to Know The ACF regulations are a key component of California's strategy to transition medium- and heavy-duty vehicle fleets to zero -emission alternatives. These regulations mandate a phased transition, requiring local governments to begin replacing aging fleet vehicles with zero -emission alternatives. The timeline for compliance is already underway: • January 1, 2024 — State and local agencies must begin replacing fleet vehicles with zero - emission alternatives. • 2025-2035 — Compliance benchmarks will increase incrementally, leading up to a full transition by 2045. Although CARB withdrew three pending EPA waivers —affecting ACF requirements for private and federal fleets, in -use locomotive standards, and commercial harbor craft regulations —the agency has been clear that the ACF rules still apply to public sector fleets. Cities and counties should not assume exemptions or delays in enforcement. Potential State Mandate Reimbursement One major development stemming from CARB's waiver withdrawal is the potential reclassification of ACF regulations as reimbursable state mandates. Previously, CARB maintained that ACF was not a state mandate because it applied to both public and private fleets. However, with private sector enforcement now uncertain, local governments may be able to file a test claim with the Commission on State Mandates to seek reimbursement for the costs incurred in complying with the regulations. This process is complex and often takes years to yield funding, but it could provide some financial relief for local agencies burdened by the transition. 7 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 Next Steps for Local Agencies Local governments should remain proactive in ensuring compliance with the ACF regulations while also exploring potential cost recovery options. Key actions include: • Continuing Compliance Efforts: The regulations remain in effect —public agencies should stay on track with their fleet transition plans and compliance. • Staying Engaged with CARB's Broader Priorities: In addition to ACF, CARB's 2025 agenda includes updating SB 375 VMT targets, landfill methane regulations, carbon capture rules, and corporate climate risk reporting. Local agencies should track these developments to ensure they remain informed about new regulatory requirements that could impact their operations. Resources • CARB's Jan. 23rd meeting recording (Steve Cliff's presentation at 1:32:00): CAL -SPAN • State -Mandated Cost Programs: State Controller's Office • Mandate Reimbursement Guidance: Commission on State Mandates Electricity Rates and the Impact on State Climate Policy In early January, the Legislative Analyst's Office (LAO) released a report analyzing climate policies in California, aimed at assisting the Legislature and other stakeholders in understanding the relationship between electricity rates and climate initiatives. The report explores key questions about residential electricity rates, including the primary drivers behind the state's high rates and their broader implications, particularly for California's climate change objectives. The State's residential electricity rates are among the highest in the nation and are increasing at a pace that exceeds both inflation and rate growth in other states. Although the report states that the reasons for the high rate have not been quantified, the report examines potential causes of the increase. Potential factors include significant wildfire -related expenses, the State's ambitious greenhouse gas (GHG) reduction policies, and operational differences among utilities. Additionally, cost -reduction programs for low-income households and incentives for rooftop solar systems shift costs to other ratepayers, increasing rates for those who do not qualify from these programs. The report also states that higher rates have also been seen for customers of IOUs, as compared to those served by publicly owned utilities (POUs). The Legislature potentially faces complex decisions in balancing affordability, sustainability, and climate adaptation. These include balancing ambitious greenhouse gas (GHG) reduction goals with the resulting costs to ratepayers, funding infrastructure needed for increased electrification, and determining how much of the funding for statewide climate policies should come from electricity rates versus other revenue sources. Additionally, rising wildfire -related costs could require decisions about balancing risk reduction with ratepayer affordability and funding appropriate utility mitigation efforts. Finally, designing fair utility rate structures, such as fixed charges, could require careful consideration to encourage beneficial electricity use while limiting financial burdens on vulnerable households. Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 California Begins Legal Battles with Federal Government On January 21, California joined seventeen other states in a lawsuit challenging President Trump's executive order that aims to revoke birthright citizenship for children born in the U.S. The lawsuit, filed in the U.S. District Court for the District of Massachusetts, argues that the order violates the Fourteenth Amendment and the Immigration and Nationality Act. California Attorney General Rob Bonta called the order a direct attack on Americans' fundamental rights, emphasizing its potential to render children born after February 19 stateless, deportable, and ineligible for federal services. The coalition of attorneys general is seeking an immediate injunction to halt the order before it takes effect. The lawsuit highlights the potential ramifications of the executive order, including denying citizenship to children who would have otherwise been entitled to it just days earlier. This policy could impact state programs like Medi-Cal and the Children's Health Insurance Program, restricting healthcare access for low-income families. LEGISLATIVE BRANCH ACTIVITY President Biden Signs Social Security Fairness Act On January 5, President Biden signed the Social Security Fairness Act (H.R. 82) into law. H.R. 82 had large bipartisan support and passed overwhelmingly in both chambers of Congress. The legislation targets two provisions that reduce monthly Social Security benefits for workers and their spouses if they also receive public pensions from jobs not covered by the Social Security system and not subject to its payroll tax. The provisions include: • Government pension offset, which reduces Social Security benefits for spouses and surviving spouses by two-thirds of their own pensions based on work not covered by Social Security. • Windfall elimination provision, which is a modified formula that reduces benefits for certain retired and disabled workers who also receive noncovered pensions. The changes apply to Social Security benefits after December 2023. The majority of beneficiaries affected by the rules are federal workers hired before Jan. 1, 1984, covered by the Civil Service Retirement System or similar retirement plan, and state and local government employees covered by alternative staff retirement systems. The windfall elimination provision affects about 2 million Social Security beneficiaries, and the government pension offset affects approximately 800,000 retirees. President Trump Signs Laken Riley Act On January 29, President Trump signed the Laken Riley Act (S.5). The legislation federal officials to deport illegal immigrants charged with theft and other crimes. Additionally, S.5 gives states a path to court if the federal government is not enforcing the federal law. The legislation would cost 9 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 $26.9 billion to implement in its first year, according to Immigration and Customs Enforcement (ICE) estimates. S.5 is named after Laken Riley, a Georgia nursing student killed by an undocumented immigrant. The legislation requires the Department of Homeland Security to detain non -US citizens who enter the country illegally and are arrested for burglary, theft, larceny, or shoplifting. DHS would have to issue a detainer — a notice to local law enforcement that it intends to take into custody an individual detained by the law enforcement agency — for a covered migrant. ICE would be required to take immediate custody of the individual if they aren't already being detained by federal, state, or local authorities. The measure also would authorize state attorneys general to seek judicial relief on behalf of the state or its residents, in an appropriate US district court, against DHS or other federal agencies for any harm caused by violating: • Detention and removal requirements for asylum -seekers and other migrants at the border who are deemed inadmissible. • Mandatory detention requirements for migrants placed under a final removal order. • Requirements that immigration parole may only be granted on a case -by -case basis and solely for urgent humanitarian or public benefit reasons. • Requirements to discontinue granting visas to nationals of countries that deny or delay accepting nationals deported from the US. President Trump Meets with Speaker Johnson and Majority Leader Thune President Donald Trump sat down with House Speaker Mike Johnson and Senate Majority Leader John Thune for their first discussion since Republicans formally took power in Washington DC. The discussion centered around the President's agenda, deadlines to lift the debt ceiling, and funding the government using their narrow majorities. The budget reconciliation process, widely assumed to be used this year, will allow Republicans to address spending -related issues by simple majority, bypassing the Senate filibuster. Afterwards, Speaker Johnson told reporters he is personally working on a "one -bill strategy" to pass President Trump's policy agenda. House Majority Leader Steve Scalise suggested that Senate Republicans were on board for the one bill strategy; Senate Majority Leader Thune has previously vocalized support for two separate legislative packages on behalf of Senate Republicans. All three will continue their discussions throughout the first 100 days of President Trump's final term. House Committees began shaping their strategies for the reconciliation package. House Committee on Energy and Commerce Chair Brett Guthrie has said Republicans are interested in utilizing savings from the Greenhouse Gas Reduction Fund, a $27 billion investment created by the Inflation Reduction Act. Additionally, Republicans have discussed repealing green energy tax incentives and approving mining and oil and gas drilling projects in order to pay for their legislative priorities. 10 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 House Passes the Fix Our Forests Act The House or Representatives approved the Fix our Forests Act (H. R. 471), the legislation heads to the Senate for further consideration. Federal agencies would have expanded authorities to take preventative action against wildfires that would be exempt from environmental review and shielded from legal challenges. The Agriculture and Interior Departments would have to actively manage areas facing a heightened risk of wildfires, including by removing trees and vegetation that cause fire to spread. The bipartisan bill was considered by the House of Representatives in September of 2024 but was not taken up by the Senate before the end of last year's legislative session. The disastrous wildfires in Southern California renewed the effort by congressional leaders to address forest management issues, spurring renewed consideration of the legislation. President Trump Discusses Raising the SALT Deduction Cap The bipartisan SALT Caucus, led by Rep. Mike Lawler, is unhappy with the cap on state and local tax deductions (SALT) in current federal tax law. The SALT Caucus has recently opened discussions with President Donald Trump about raising the $10,000 SALT deduction. President Trump's economic advisers have discussed expanding the cap to $20,000 despite calls from lawmakers to completely eliminate it. The debate is part of the development of a tax reform package which many Republicans in Washington DC say should contain budget cuts to be offset cuts. Raising or eliminating the SALT cap would soften the burden for constituents in states like New York and California, where the combination of high tax rates and expensive property values make a write-off especially valuable. SALT was originally a feature of the 2017 Tax Cuts and Jobs Act (TCJA), which expires in December 2025. With Republicans controlling Congress for two years, their tax priorities are likely to be included in an extension of the TCJA. Lifting the cap is unpopular among some conservative Republicans from lower -tax states and nonpartisan analysts, who say the change would benefit mostly high -income households in largely Democratic states. The House Ways and Means Committee is generating models to show how different SALT caps will impact different congressional districts around the country. Republicans Consider Adding California Wildfire Relief to Debt Ceiling Vote In order to force a vote on raising the debt ceiling, House Republican leadership is discussing adding disaster relief funding for the current California wildfires to future legislation raising the nation's borrowing limit. Attaching a measure to a reconciliation package would make disaster relief conditional, thereby avoiding negotiation with Democrats. However, several lawmakers are loath to change the debt limit, which could jeopardize leadership's reconciliation plans. A number of Democratic lawmakers from California led by Rep. Judy Chu invited President Trump to visit California and assess the damages of the ongoing wildfires. In a letter to the President, Rep. Chu along with CA Senators Alex Padilla and Adam Schiff urged Congress "to pass bipartisan emergency disaster appropriations legislation to support the long recovery ahead." 11 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 Additionally, the group wrote to congressional leaders and appropriators inviting them to tour the damage. EXECUTIVE BRANCH ACTIVITY President Trump Sworn -in and Signs Dozens of Executive Actions On January 20, President Donald Trump signed 200 executive orders aimed at reversing policies from the previous administration and implementing his campaign promises. All information on the executive orders can be found here. Key actions include: 1. Unleashing American Energy The President declared a "national energy emergency" to expedite the development of fossil fuel infrastructure. This includes plans to: • replenish strategic reserves • increase energy exports, • cease federal leasing for wind farms, • withdraw from the Paris climate agreement, • encourage energy exploration on federal lands and waters, • dismantle subsidies and policies favoring electric vehicles These actions align with his campaign promises to boost the oil and gas industries and roll back climate policies from the previous administration. 2. Deployment of U.S. Troops to the Border An executive order was signed to deploy U.S. troops to the southern border. Additionally, certain international cartels and crime organizations have been labeled as terrorist groups. The Departments of Homeland Security and Defense have been directed to complete the construction of the border wall and deploy personnel for border control. These actions are part of a series of 11 border -related executive orders aimed at enhancing U.S. border security. 3. End of Birthright Citizenship President Trump signed an executive order to end birthright citizenship for children of undocumented immigrants. This policy, set to take effect in 30 days, claims that U.S. citizenship should not automatically extend to children born in the country to parents who are unlawfully present, non -citizens, or under temporary legal status. This move contradicts the 14th Amendment, which grants automatic citizenship to anyone born on U.S. soil, and significant legal challenges have already been filed. 4. Reversal of Transgender Protections and Termination of DEI Programs 12 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 President Trump signed executive orders that reverse protections for transgender individuals and terminate diversity, equity, and inclusion (DEI) programs within the federal government. One order restricts federal recognition to only two sexes, male and female, based on reproductive anatomy, blocking federally funded transition services and other transgender affirmations such as pronoun use in government facilities. Another order halts federal DEI initiatives, promoting a return to merit - based treatment. These actions have provoked significant backlash from civil rights groups who argue that gender and equity are more nuanced. 5. Pardons Related to January 6 Capitol Riot The President issued pardons for individuals charged in connection with the January 6 Capitol riot. This includes approximately 1,500 people charged in the 2021 attack, directing the Justice Department to drop about 300 pending cases, and ordering the release of a small group of 14 other defendants who were charged in the most serious sedition cases. These actions go farther than many were expecting, as they cover roughly 600 people with felony convictions for assaulting police officers or impeding police during the riot. 6. Withdrawal from the World Health Organization (WHO) An executive order was signed to begin the process of withdrawing the United States from the World Health Organization. This move has raised concerns among scientists and public health experts, who fear it could roll back decades -long gains made in fighting infectious diseases and weaken global defenses against dangerous new outbreaks capable of triggering pandemics. 7. California Water Conveyance Memorandum The memo issued by President Trump directs the U.S. Bureau of Reclamation, U.S. Fish and Wildlife Service, and National Marine Fisheries Service to "route more water from the Sacramento -San Joaquin Delta to other parts of the state for use by the people there who desperately need a reliable water supply." The agencies have 90 days to report on what their future actions will be. The likely outcome is that the agencies will reinitiate consultation on the long term operations of the Central Valley Project and State Water Project and work toward issuance of a new biological opinion managing the CVP and SWP operations. These executive orders reflect President Trump's commitment to implementing his "America First" agenda and reversing policies from the previous administration Office of Management and Budget Reverses Course on Funding Freeze On January 27, the acting director of the Trump Administration's Office of Management and Budget (OMB) issued the now defunct memo directing agencies to halt all federal financial assistance. The memo directed agencies to "temporarily pause all activities related to obligation or disbursement of all federal financial assistance, and other relevant agency activities that may be implicated by the executive orders, including, but not limited to, financial assistance for foreign aid, nongovernmental organizations, DEI, woke gender ideology, and the green new deal." Additionally, a spreadsheet was circulated that reveals the broad scope of President Trump's 13 Docusign Envelope ID: 11A96A78-34D4-4488-B1A8-D7DA505A8514 scrutiny of federal spending. It provided a list of programs that could at least temporarily be affected by a funding pause, though many of the programs appear to be unrelated to President Trump's focus on cultural issues. As a result, many states reported issues accessing funds under the Medicaid low-income health insurance program. Preschool centers struggled to obtain reimbursements under the federal program known as Head Start, putting some childcare services at risk. However, the directive likely does not comply with the Budget and Impoundment Control Act of 1974, which sets the parameters under which the President can rescind or delay money that's been approved by Congress. The Trump Administration argues that this law is unconstitutional. The memo earned quick criticism on Capitol Hill and consternation across Washington DC, with officials saying the sweeping guidance could imperil critical programs. The Trump Administration stated that the funding pause would not affect Social Security or Medicare, or other instances of assistance provided directly to individuals. Ultimately, a federal judge in Washington temporarily blocked the funding pause as several nonprofits filed lawsuits over the action. Facing significant backlash, OMB issued another memo rescinding the original freeze on federal funds. President Trump Reverses Biden Electric Vehicle Orders President Donald Trump has issued executive orders to eliminate subsidies and other policies that favor electric vehicles. The orders direct agencies to pause disbursement of funds appropriated through the Inflation Reduction Act and Infrastructure Investment and Jobs Act, including funding for EV charging stations. The order calls for terminating waivers that allow states to limit gas -powered car sales, indicating that President Trump will look to take on California on those grounds. Currently, California requires automakers to deliver increasing numbers of zero - emission vehicles every year through 2035, when all new cars sold will need to be zero -emission. 14