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HomeMy WebLinkAbout2019-04-16; City Council; ; Priority State Legislation and Legislative Committee~ CITY COUNCIL V Staff Report Meeting Date: To: From: Staff Contact: Subject: April 16, 2019 Mayor and City Council Scott Chadwick, City Manager Jason Haber, Assistant to the City Manager jason.haber@carlsbadca.gov or 760-434-2958 Priority State Legislation and Legislative Committee Recommended Action CA Review ~ c.- 1. Receive bill analyses summarizing: AB 847 (Grayson), SB 4 (McGuire), SB 5 (Beall), SB 6 (Beall), SB 50 (Wiener), AB 11 (Chiu), SB 15 (Portantino), SB 532 (Portantino), AB 1640 (Boerner Horvath), AB 1031 (Nazarian), AB 392 (Weber) and SB 230 (Caballero) and consider taking positions on the proposed legislation. 2. Consider the creation of a City Council legislative committee. Executive Summary On March 19, 2019, the City Council received a report from California Strategies and Advocacy (California Strategies) and directed staff to bring the subject items back for consideration on this date. This item provides an opportunity for the City Council to discuss a list of priority bills that could impact the city during the current legislative session and to consider taking positions on the proposed legislation to guide advocacy efforts to be pursued on the city's behalf. This item also presents an opportunity for the City Council to consider several key questions and options for creating a City Council legislative committee. Discussion The City of Carlsbad 2018 Legislative Platform (Exhibit 1) outlines the adopted position of the City Council on priority issues and matters that impact the city's ability to operate effectively. The statements included in the platform allow the mayor, council members, and staff to take rapid action on these and other legislative issues if necessary. Relevant position statements found in the legislative platform are provided for reference in the priority bill list, below. The city is a member of the League of California Cities (League), an association of California city officials who work together to influence policy decisions that affect cities. The League has issued a letter of support for SB 5 -Beall (Exhibit 2) and a letter stating the League's opposition unless key concerns are addressed in SB 50 -Wiener (Exhibit 3), both of which are included in the City Council's list of priority bills. April 16, 2019 Item #5 Page 1 of 145 The City Council may consider taking any of the following positions on the bills presented below: 1. Support, 2. Oppose, 3. Support certain aspects of the bill, but remain neutral on or oppose other aspects, 4. Oppose unless amended, 5. Watch and report back, 6. Delay action and seek clarification, 7. Take no further action. Exhibit 4 includes Fact Sheets (as available) and Bill Text for each of the following priority bills, which will be discussed during the City Council meeting: Housing/Transportation/Land Use Planning/Redevelopment • AB 847 (Grayson) Housing: transportation-related impact fees grant program. o Status: Assembly Housing and Community Development o Legislative Platform Position(s): 5. Transportation a. Support measures that would increase the ability of local agencies to finance local transportation facilities. 12. Housing and Community Development a. Support efforts to develop federal and state participation, financial support and incentives (tax benefits, grants, loans) for programs which provide adequate, affordable housing (home ownership and/or rental opportunities) for all economic segments of the community including the elderly, handicapped, and low-income persons. • SB 4 (McGuire) Housing. o Status: Senate Governance and Finance o Legislative Platform Position(s): 11. Land Use Planning b. Support measures in local land use that is consistent with the doctrine of "home rule" and the local exercise of police powers in planning and zoning processes. • SB 5 (Beall) Affordable Housing and Community Development Investment Program. o Status: Senate Housing o Legislative Platform Position(s): 12. Housing and Community Development a. Support efforts to develop federal and state participation, financial support and incentives (tax benefits, grants, loans) for programs which provide adequate, affordable housing (home ownership and/or rental opportunities) for all economic segments of the community including the elderly, handicapped, and low-income persons. April 16, 2019 Item #5 Page 2 of 145 • SB 6 (Beall) Residential development: available land. o Status: Senate Governmental Organization o Legislative Platform Position(s): None. • SB 50 (Wiener) Planning and zoning: housing development: incentives. o Status: Senate Governance and Finance o Legislative Platform Position(s): 11. Land Use Planning b. Support measures in local land use that is consistent with the doctrine of "home rule" and the local exercise of police powers in planning and zoning processes. • AB 11 (Chiu) Community Redevelopment Law of 2019. o Status: Assembly Housing and Community Development o Legislative Platform Position(s): 12. Housing and Community Development a. Support efforts to develop federal and state participation, financial support and incentives (tax benefits, grants, loans) for programs which provide adequate, affordable housing (home ownership and/or rental opportunities) for all economic segments of the community including the elderly, handicapped, and low-income persons. b. Support legislation that provides incentives (tax benefits, grants, loans, credit for affordable units) to local agencies, private developers and non- profit groups in order to rehabilitate residential units and commercial properties. 13. Redevelopment b. Oppose legislation that would prohibit/limit the establishment of new redevelopment project areas and/or expansion of existing project areas. • SB 15 (Portantino) o Status: Senate Governance and Finance/ Senate Housing o Legislative Platform Position(s): 12. Housing and Community Development a. Support efforts to develop federal and state participation, financial support and incentives (tax benefits, grants, loans) for programs which provide adequate, affordable housing (home ownership and/or rental opportunities) for all economic segments of the community including the elderly, handicapped, and low-income persons. 13. Redevelopment c. Oppose any legislation that allows reallocation of tax increment revenues by the State to finance agencies and/or projects other than the redevelopment project which generated the increment. April 16, 2019 Item #5 Page 3 of 145 • SB 532 (Portantino) Redevelopment: bond proceeds: affordable housing. o Status: Senate Governance and Finance o Legislative Platform Position(s): 12. Housing and Community Development a. Support efforts to develop federal and state participation, financial support and incentives (tax benefits, grants, loans) for programs which provide adequate, affordable housing (home ownership and/or rental opportunities) for all economic segments of the community including the elderly, handicapped, and low-income persons. Local Government Finance • AB 1640 (Boerner Horvath) Local government finance: budget reserves. o Status: Assembly Local Government o Legislative Platform Position(s): Public Health 2. Local Government Finance c. Support measures which would provide fiscal independence to cities. j. Oppose any measure that would make cities more dependent on the State for financial stability and policy direction. ' • AB 1031 (Nazarian) Youth Substance Use Disorder Treatment and Recovery Program Act of 2019. o Status: Assembly Appropriations o Legislative Platform Position(s): 10. Safety Services k. Support legislation that would provide funding for addiction rehabilitation treatment. 17. Public Health Safety Services b. Support legislation that recognizes and prevents the adverse impacts affecting the public health and welfare of its citizens, and particularly minors. • AB 392 (Weber) Peace officers: deadly force. o Status: Assembly Public Safety (Special Order), hearing on April 9th o Legislative Platform Position(s): 10. Safety Services a. Support legislation that strengthens local law enforcement. • SB 230 (Caballero) Law enforcement: use of deadly force: training: policies. o Status: Senate Public Safety o Legislative Platform Position(s): 10. Safety Services a. Support legislation that strengthens local law enforcement. April 16, 2019 Item #5 Page 4 of 145 On March 19, 2019, the City Council also identified AB 136 (Quirk-Silva) as a priority bill for consideration; however, as of April 1, 2019, this bill has been amended to be about Personal Income Tax Law. Previously, AB 136 was relating to substance abuse programs. As currently written, this bill is no longer relevant to City of Carlsbad concerns. Legislative Committee Discussion On March 19, 2019, the City Council directed staff to bring back a discussion on this date to consider the creation of a City Council legislative committee. The follo'!'(ing questions are offered to provide a framework for City Council discussion: 1. Who would serve on the legislative committee? 2. How would committee members be appointed? 3. What would the committee's purview and primary function(s) be? 4. When in the legislative process would the committee be involved? 5. What level of staff support and resources would be required/expected? The following options are presented for City Council consideration: 1. Establish an Ad-hoc City Council Subcommittee • Membership comprised of no more than two City Council Members • Limited duration -(i.e., January 1 through June 15) • Narrow purview -(i.e., to review state budget, identify priority bills, or review the city's legislative platform) • Not subject to the Brown Act 2. Establish a Standing City Council Subcommittee • Membership comprised of no more than two City Council Members • Ongoing • Narrow or Broad purview -(i.e., any or all of the above, ongoing bill analysis and advocacy recommendations) • Requires Brown Act compliance and staff support to meet agenda preparation, posting and management 3. Establish an Advisory Group/ Committee/ Task Force • City Council appoints non-City Council membership • Ongoing or limited duration • Narrow or broad purview • Requires Brown Act compliance and staff support to meet agenda preparation, posting and management Given that City Council Policy No. 39 (Exhibit 5) establishes the guidelines of the city's legislative program and outlines the procedure by which the city is to take action on pending legislation, a policy amendment will be required to effectuate any of the above three options. Pursuant to City Council Policy No. 1 (Exhibit 6) an amendment to a City Council Policy would require four affirmative votes. April 16, 2019 Item #5 Page 5 of 145 Fiscal Analysis This item has no fiscal impact. Next Steps Staff will work with California Strategies to develop an advocacy strategy to reflect the positions taken by the City Council on priority bills and will pursue the City Council's direction regarding the creation of a legislative committee. Staff will present the City Council with a resourcing strategy and funding request to implement the city's legislative and intergovernmental affairs program in the proposed FY 2019-20 city operating budget. Environmental Evaluation (CEQA) Pursuant to Public Resources Code Section 21065, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to scheduled meeting date. Exhibits 1. City of Carlsbad 2018 Legislative Platform 2. SB 5 League of California Cities Support Letter 3. SB 50 League of California Cities Opposition Letter 4. Priority Bill Fact Sheets and Bill Text 5. City of Carlsbad Council Policy No. 39 6. City of Carlsbad Council Policy No. 1 April 16, 2019 Item #5 Page 6 of 145 Exhibit 1 CITY OF CARLSBAD 2018 LEGISLATIVE PLATFORM The City will actively monitor and advocate or oppose legislation as directed by the City Council, through this platform, to protect the City's interests and local legislative authority and will take appropriate action when required to safeguard and/or advance the City's interests. This includes preserving and protecting the City's charter powers, duties and prerogatives to enact local legislation concerning local affairs. The purpose of this Legislative Platform is to clearly outline the position of the City Council on priority issues and matters that impact the city's ability to operate effectively, without precluding the consideration of additional legislative and budget issues that arise during the legislative session. The statements outlined below allow the mayor, council members, and staff to take rapid action on these and other legislative issues if necessary. 1. General Government: (a) Oppose legislation or constitutional amendments that weaken or interfere with the powers of charter cities and preserve local autonomy or home rule authority. (b) Support measures which would strengthen cities' ability to reorganize and consolidate water districts, sewer districts, school districts, and · other special districts that operate within or provide service to a city. (c) Support legislation that provides State assistance for local public libraries. (d) Support measures which provide adequate funding for the State Library. (e) Support measures which lead to a state or national energy policy. (f) Support state and federal funding and legislation for the arts that benefits local communities. (g) Support legislation reducing and providing for recovery of costs, maintaining privacy, and eliminating attorney's fees for administering public records laws. (h) Oppose federal measures which remove the deduction of all state and local taxes for federal income tax purposes: April 16, 2019 Item #5 Page 7 of 145 (i) Support legislation and regulations of telecommunications facilities and services that: 1. Maintain local control over public right-of-ways. 2. Provide just compensation for use of right-of-ways and overseeing public service standards. 3. Ensure public, education, and governmental access is available and affordable. 4. Provide free access for public information services and announcements. 5. Maintain local control, including but not limited to discretionary permits over wireless communications facilities. 6. Reinstates competition in the telecommunications industry. U) Support legislation prohibiting firms from bidding on City projects if the firm is currently involved in legal proceedings against the City arising from prior projects. (k) Support legislation that facilitates economic development efforts and encourages businesses to locate or remain in California. (I) Oppose measures that would ~liminate state licensing requirements for professionals involved in designing public and private developments. (m) Support legislation that will foster independence of older Californians. (n) Support legislation that requires cable television companies to assure that audio and video portions of adult entertainment channels are completely blocked 24 hours a day in the homes of non-subscribers. (o) Support measures that provide funding for community park facilities, open space, and recreation programs. (p) Support legislation that either requires citizen initiatives to comply with CEQA before placing the initiative on the ballot or exempting from this requ·irement a City Council initiated ballot measure dealing with the same subject matter on the same ballot. 2. Local Government Finance: (a) Support measures that implement basic structural changes in state government that result in state budget expenditures being brought into balance with state revenues. (b) Support measures which safeguard existing revenue sources from preemption by the State or County. 2 April 16, 2019 Item #5 Page 8 of 145 (c) Support measures which would provide fiscal independence to cities. (d) Support legislation that makes funds to support public facilities (ie. facilities, open space) more available to local municipalities. (e) Support measures which relieve taxpayers of the burden of paying for services which could be charged directly to the service user, and which simplify the process of establishing such fees. (f) Support legislation that would provide greater accountability on the part of counties for the distribution of funds back to municipalities, including, but not limited to, fines and forfeitures. (g) Support measures to reinstate flexibility in the administration of Article XIII- B (The Gann Initiative). (h) Oppose any change in revenue allocations which would negatively (current or future) affect local government, including the redistribution of sales tax, property tax, transient occupancy tax and other taxes and fees. (i) Oppose any measure that shifts revenue from any unit of local government to other agencies. 0) Oppose any measure that would make cities more dependent on the State for financial stability and policy direction. (k) Support legislation to eliminate or repeal unfunded state and federal mandates or to require timely reimbursement and oppose measures that would impose those mandates for which there is no guarantee of local reimbursement or offsetting benefits, or would shift the cost of government services to cities. (I) Oppose any measure that restricts or limits a public entity's ability to use tax exempt debt for the purchase or construction of public purpose improvements. (m) Oppose legislation that shifts State/County criminal justice costs to cities. (n) Oppose the use of the federal gas tax for federal debt reduction. (o) Support legislation that streamlines permitting processes without undermining the ability of local government to apply and be compensated for the enforcement of reasonable building, planning and fire protection standards. 3 April 16, 2019 Item #5 Page 9 of 145 (p) Oppose legislation that creates surcharges for state oversight of state mandated programs. (q) Support legislation that allows cities with civil service/personnel systems to contract out services to the private sector to save taxpayer dollars. (r) Support legislation that assists cities to enforce and collect local taxes. (s) Support legislation that would exempt stormwater and urban runoff management programs from Proposition 218 requirements. (t) Oppose any measure or legislation that prevents local franchising of cable television or video services, regardless of the technology used to deliver the cable television or video services to the subscriber. (u) Oppose legislation that would erode or purport to erode a charter city's ability to design, implement, determine wage rates or fund any and all public works projects within its jurisdiction. (v) Oppose any legislation that attempts to repeal or eliminate the "pay first and litigate later" provisions of law and oppose any bill or amendment that proposes to reduce or eliminate the obligation of any online travel agency to pay transient occupancy taxes under state or local law." 3. Labor Relations: (a) Support legislation that limits the ability of employees to receive workers' compensation benefits for occupational injuries/illnesses that result from stress, disciplinary action, or performance evaluations or consultations. (b) Support any measure that would reverse the imposition of compulsory and binding arbitration with respect to public employees. (c) Oppose any measure that would grant employee benefits that should be decided at the local bargaining table. (d) Oppose any legislation that would reduce local authority to resolve public employee disputes, and support legislation that would preserve court jurisdiction, and/or impose regulations of an outside agency (such as PERS). (e) Oppose measures that propose a standard higher than the normal civil ones in disciplinary proceedings for peace officers. 4 April 16, 2019 Item #5 Page 10 of 145 (f) Oppose legislation that expands or extends any presumptions of occupational injury or illness and support legislation that repeals the presumption that the findings of a treating physician are correct. (g) Oppose legislation that increases workers' compensation benefits without providing for concurrent cost controls. (h) Support legislation that improves access to, and reduces the cost of, healthcare for public employees. 4. Tort Reform: (a) . Support measures to reform California's tort system to reduce/limit liability exposure for public agencies and restore the ability of public agencies to obtain affordable insurance. (b) Support legislation that recognizes or broadens immunities for public agencies and oppose legislation that attempts to limit or restrict existing immunities. (c) Support legislation that requires plaintiffs' to make a good faith showing of liability prior to filing a lawsuit against a public entity. 5. Transportation: (a) Support measures that would increase the ability of local agencies to finance local transportation facilities. (b) Support measures to finance local and regional transportation facilities and improvements, including alternative modes of transportation and transportation demand management systems. (c) Support legislation that provides for effective and efficient transportation alternatives. (d) Oppose transportation proposals that would adversely affect the quality of life in North San Diego County by causing traffic congestion, air pollution or other problems. (e) Encourage and support double tracking of the rail corridor within the City limits in a manner that: 1. Improves public safety access and response times. 2. Eliminates or reduces existing' at-grade rail cross_ings within the rail corridor. 5 April 16, 2019 Item #5 Page 11 of 145 3. Improves local, regional, and coastal access for all travel modes (bike, pedestrian, vehicle, transit). 4. Minimizes impacts to neighborhoods. 5. Maximizes community and neighborhood connections. 6. Protects and/or improves the economic vibrancy of surrounding neighborhoods and the city. 7. Protects and/or enhances environmental resources. 6. Coastline: (a) Support measures which provide funding for urban waterfront restoration and enhancement. (b) Support legislation that would aid the restoration, preservation and enhancement of beachfront property, sand, bluffs, access and parking. (c) Support measures that would preserve and extend the authority of cities over land use regulations, over the placement of onshore facilities which service offshore oil drilling. (d) Support legislation that requires the double hulling of all new oil tankers and the retrofitting of all existing oil tankers. (e) Support legislation that promotes aquatic research, education, aqua culture, and other related uses. (f) Oppose any new offshore oil and gas leasing, drilling and exploration in all State of California and U.S. waters in the Pacific Ocean. (g) Support legislation providing that if Coastal Commission staff has an opportunity to participate in local and or regional habitat management plans, there is a presumption of consistency with the Federal Coastal Management Act. 7. Water Management: (a) Support a balanced water transportation and regional storage system that provides for the needs of San Diego County, while protecting the Delta and Central Valley regions with minimal impact on agriculture and the environment. (b) Support measures that increase water supply and storage facilities within the region and allow for economically feasible water transfers within the system. 6 April 16, 2019 Item #5 Page 12 of 145 (c) Support efforts that will encourage water conservation practices by all water consumers. (d) Support efforts to assist in the production and distribution of reclaimed water. (e) Support measures that provide for the equitable allotment and distribution of preferential water rights. (f) Support legislation and regulations that encourage the use and development of alternative water sources, including desalination. (g) Support legislation that allows Water Districts to award contracts in conformity with the provisions of the local City Charter. 8. Environment: (a) Support legislation that complements Council's E.nvironmental Sustainability Guiding Principles. (b) Support efforts for the safe and cost effective disposal of solid, hazardous and medical waste. (c) Support legislation that encourages timely action to reduce the amount of ozone depleting compounds discharged into the atmosphere. (d) Support legislation that allocates state and/or federal funds for the construction of facilities to capture and treat the flow of raw sewage entering San Diego from Tijuana. (e) Support measures, which promote the recycling/reclaiming of natural resources, including water, timber, oil, gas minerals and earth metals. (f) Support measures that would make low-interest loans and/or grants available to local agencies for programs that would encourage the recycling/reclaiming of resources. (g) Support legislation that streamlines federal and State of California's environmental review processes and limits court reviews of environmental documentation. (h) Support legislation to develop an ongoing funding source to implement the federally mandated Clean Water Act of 1987 and to ensure protection of local resources. 7 April 16, 2019 Item #5 Page 13 of 145 (i) Support legislation that provides funding to improve recreational water quality, habitat management, and open space. U) Support legislation that promotes alternatively powered vehicles in the State vehicle buying program. (k) Oppose environmental legislation that creates an unfunded mandate for cities to implement and fund. 9. Waste Management: (a) Oppose legislation restricting the ability of local governments to regulate solid waste and recyclable materials. (b) Support measures that promote market development of recyclable materials. (c) Support legislation toward the procurement of recyclable and recycled materials. (d) Support legislation that promotes source reduction measures. (e) Support measures that encourage the streamlining of California Integrated Waste Management Board grant programs and provide maximum flexibility to local government. (f) Oppose legislation regulating "flow control" of solid waste materials. 10. Safety Services: (a) Support legislation that strengthens local law enforcement. (b) Support measures which strengthen present state or federal laws to increase penalties and give local governments the power to restrict or regulate the sale, manufacture, or use of dangerous drugs. (c) Support measures that would provide a greater share of seized assets to localities and increased discretion for local spending. (d) Support legislation that discourages, prevents, and penalizes driving under the influence of drugs or alcohol. (e) Support legislation that enhanced local agencies ability to recover costs froin guilty parties for damage to public property and services in accidents involving driving under the influence of drugs and/or alcohol. 8 April 16, 2019 Item #5 Page 14 of 145 (f) Support legislation that would allow for the destruction, confiscation, or extended safekeeping of firearms or other deadly weapons involved in domestic violence incidents. (g) Oppose legislation that would restrict or reduce the ability of local government to determine the extent or method of fire hazard mitigation necessary in or around wildland areas. (h) Support legislation granting immunity to or limiting liability of governmental entities and their employees who provide emergency medical instructions and/or treatment as a part of their public safety dispatch system. (i) Oppose legislation that would restrict a local government from revising the delivery of emergency medical service to its citizens and support measures that broaden these powers. G) Support legislation that would assist local safety agencies in regionalization of activities such as training, crime labs, and other appropriate functions. (k) Support legislation that would provide funding for addiction rehabilitation treatment. (I} Support legislation that provides financial assistance to local agencies for Homeland Security. 11. Land Use Planning: (a) Support legislation to strengthen the legal and fiscal capability of local agencies to prepare, adopt and implement fiscal plans for orderly growth, development, beautification and conservation of local planning areas, including, but not limited to, regulatory authority over zoning, subdivisions, annexations, and redevelopment areas. (b) Support measures in local land use that is consistent with the doctrine of "home rule" and the local exercise of police powers in planning and zoning processes. (c) Support legislation requiring environmental review of initiatives to amend a general plan or zoning ordinance before the initiative is placed on the ballot or enacted. (d) Support legislation to allow cities to issue all coastal development permits within their jurisdiction consistent with a previously certified coastal plan. 9 April 16, 2019 Item #5 Page 15 of 145 (e) Support legislation that facilitates and provides funds for habitat management planning, maintenance, administration, and local control. (f) Oppose legislation or constitutional amendments that would restrict the power of California cities to use eminent domain for public purpose projects. (g) Support measures that allow local agencies to condition mobile home park conversions from rental to resident ownership pursuant to local land use regulations including a requirement to provide public improvements and infrastructure where necessary to promote the health, safety, and welfare of park residents. 12. Housing and Community Development: (a) Support efforts to develop federal and state participation, financial support and incentives (tax benefits, grants, loans) for programs which provide adequate, affordable housing (home ownership and/or rental opportunities) for all economic segments of the community including the elderly, handicapped, and low-income persons. (b) Support legislation that provides incentives (tax benefits, grants, loans, credits for affordable units) to local agencies, private developers and non- profit groups in order to rehabilitate residential units and commercial properties. (c) Support legislation that would provide additional funding for rental subsidy assistance programs (such as Section 8) via more vouchers or certificates. (d) Support repeal of Article 34 (Public Housing Project Law) of the California Constitution. (e) Support legislation that allows entitlement cities to use CDBG funds for new construction of housing units. (f) Support state inclusionary housing legislation that allows for adoption of local programs such as that implemented in Carlsbad. (g) Support the repeal or modification of the Davis-Bacon Wage Act, as it relates to charter cities, that set a prevailing wage scale for public projects, substantially increasing the cost of publicly assisted housing developments. 10 April 16, 2019 Item #5 Page 16 of 145 (h) Support legislation that will consolidate and streamline the administration and reporting requirements for the Community Development Block Grant program. (i) Support the consolidation of the Section 8 Certificate and Voucher Programs. U) Oppose legislation that would give the State financial administrative responsibilities for . the Community Development Block Grant program (CDBG). (k) Oppose legislation that makes the local municipality or redevelopment agency financially responsible for the removal, abatement or mitigation of hazardous materials. (I) Support legislation that requires availability of adequate school facilities contemporaneously with occupancy of housing. 13. Redevelopment: (a) Support reform of reporting requirements for the Redevelopment Agency that simplify the process and eliminate the confusion regarding which reports to file with which State agency (Housing and Community Development or Controllers Office or both). (b) Oppose legislation that would prohibit/limit the establishment of new redevelopment project areas and/or expansion of existing project areas. (c) Oppose any legislation that allows reallocation of tax increment revenues by the State to finance agencies and/or projects other than the redevelopment project which generated the increment. (d) Oppose legislation or constitutional amendments that would restrict the power of California cities to use eminent domain for redevelopment projects, including economic redevelopment, where a prior finding of blight has been determined. 14. Child Care: (a) Support the reduction of present regulatory complexities. (b) Support the reduction of the burden of insurance costs. (c) Support funding for the construction, renovation and/or maintenance of child care facilities. 11 April 16, 2019 Item #5 Page 17 of 145 (d) Support the provision of reasonable tax incentives for employers who offer child care services. (e) Support legislation that restores local control over quality childcare in areas such as licensure, staffing, education and training. 15. Immigration: (a) Support legislation which recognizes the unique and difficult problems associated with recent legal and illegal immigrants to the United States, and assist local communities in dealing with these problems in such areas as housing, health services, education and employment. (b) Support legislation to increase the number of border patrol agents at the International Border. (c) Support state and federal assistance to local communities attempting to address the needs of migrant workers. 16. Energy: (a) Support legislation that develops regulatory and market mechanisms that ensure the State achieves the greatest level of energy self-sufficiency and security as soon as practical. (b) Support legislation that establishes a market structure and rules that promote real competition and reasonable, justifiable prices. (c) Support legislation that aggressively pursues refunds to consumers for rates that have been determined to be unjust or unreasonable. (d) Support legislation that commits to and expedites the development of needed infrastructure (e.g. generation, transmission, and natural gas pipelines) to create robust and functional markets. (e) Support legislation that increases the diversity of the State and region's energy resources, particularly increasing the use of higher-efficiency, clean distributed generation (e.g. combined heat and power) and renewable resources. (f) Support legislation that encourages and incentivizes the adoption of new and emerging technologies that provide real-time pricing to promote better price response by consumers. 12 April 16, 2019 Item #5 Page 18 of 145 (g) Support legislation that promotes municipal renewable energy development. (h) Support legislation that allows net electrical metering. (i) Support legislation that provides financial incentives for renewable energy. G) Support legislation that minimizes adverse environmental impacts of the State and the region's energy use. (k) Support legislation that encourages funding programs for and promotion of alternate energy sources (I) Support legislation that prohibits the California Energy Commission from issuing any license to operate . a power plant unless and until it has received the report required by the California Coastal Commission under the Warren-Alquist Act. 17. Public Health: (a) Support any measure that protects children and youth from exposure to tobacco, second hand smoke and tobacco-related products. (b) Support legislation that recognizes and prevents the adverse impacts affecting the public health and welfare of its citizens, and particularly minors. 13 April 16, 2019 Item #5 Page 19 of 145 Bill Text -AB-847 Housing: transportation-related impact fees grant program. Page 2 of 9 This bill would require the DepartmeAt of HousiAg aAd CommuAity DevelopmeAt, OR or before JuAe 30, 2020, aAd OR or before JuAe 30 e't'ery year thereafter, to re•riew each productioA report submitted by a city or couAty iA accordaAce with the provisioAs described abo•re to determiAe if that city or couAt'f has met its 't'CF'f low, low , aAd moderate iAcome housiAg goals, as def'iAed, for that reportiAg period. The bill would require the departmeAt, if it determiAes that a city or couAty has met oAe of those housiAg goals, to submit a certificatioA of that result to the CoAtroller by AO later thaA JuAe 30 of that year. (2)Article XIX of the California CoAstitutioA restricts the eicpeAditure of re't'eAues from taxes imposed by the state OR fuels used iA motor ,•chicles upoA public streets aAd highwa·fs to street aAd highway aAd certaiA mass traAsit purposes. ExistiAg law requires certaiA miscellaAeous re,•eAues deposited iA the State Highway AccouAt that are Rot restricted as to expeAditure by Article XIX of the CaliforAia CoAstitutioA to be traAsferred to the TraAsportatioA Debt Ser...ice FuAd iA the State TraAsportatioA FuAd, as specified, aAd requires the CoAtroller to traAsfer frnm the TraAsportatioA Debt Ser't'ice FuAd to the GeAeral FuAd .aA amouAt of those reveAues Aecessary to offset the curreAt 'fear debt service paymeAts made from the GeAeral FuAd OR geAeral obligatioA traAsportatioA boAds issued pursuaAt to PrnpositioA 116, as appFO't'ed b•; the 't'Oters at the JuAe s, 1990, statewide geAeral electioA . EicistiAg law creates the Road MaiAteAance and RehabilitatioA Prngram and, after certain allocations for the prngram are made, requires the remaining fuAds a·,•ailable for the prngram to be allocated S0°/o for maiAtenance of · the state highwa·,· system or to the state highway operatioA aAd prntection program and SO% for apportionment to cities and couAties by the Controller pursuant to a specified formula, which is referred to as the local streets aAd rnads ' program. Before receiving aA apportioAment of funds under the local streets and rnads program from the CoAtroller in a fiscal ·rear, existiAg law requires an eligible city or couAty to submit to the California Transportation Commission a list of prOjects proposed to be fuAded wi th these fuAds. ExistiAg law requires the commission to report to the Controller the cities and couAties that ha't'e submitted a list of prOjects and requires the Controller, upon receipt of the report, to apportion funds to eligible cities and counties included in the report, as specified. This bill would delete the transfer of certain miscellaneous re,..enues deposited iA the State Highway AccouAt to the TraAsportation Debt Ser't'ice Fund, thereby elimiAating the offsetting transfer to the General Fund for debt service OR geAeral obligatioA traAsportatioA boAds issued pursuaAt to PrnpositioA 116, as appFO't'ed by the 't'Oters at the JuAe S, 1990, statewide geAeral electioA. The bill would iAstead require the miscellaAeous re't'eAues, upoA apprnpriatioA by the Legislature, to be apportioAed by the CoAtFOller to cities aAd couAties pursuaAt to a specified formula if those cities aAd couAties are eligible to receive aA apportioAmeAt pursuaAt to the local streets and roads prngram, aAd if those cities aAd couAties ha't'e beeA certified by the DejJartmeAt of HousiAg aAd CommuAity DevelopmeAt to have met their very low iAcome housiAg goals or low iAcome housiAg goals. (3)UAder eicistiAg law, the California TraAsportatioA CommissioA allocates 't'arious state aAd federal traAsportatioA fuAds through specified state programs to local aAd regional traAsportatioA ageAcies to implemeAt prOjects coAsisteAt with the requiremeAts of those programs. These programs iAclude the Acti't'e TraAsportatioA Program aAd a program established as part of the Road MaiAteAaAce aAd RehabilitatioA Program to fuAd traAsportatioA impro't'emeAts iA couAties that have sought aAd recei't'ed ·,oter appro't'al of taxes or that ha..,e imposed fees, which tai<es or fees are dedicated solely to traAsportatioA impro't'emeAts. EicistiAg law requires the commissioA to adopt guideliAes for the allocatioA of fuAds for these programs. This bill would require the guideliAes for both of those specified programs to gi-.·e a 10'1', bonus iA certaiA iAstaAces to the selectioA priority of a prOject located iA a city or couAty certified by the DepartmeAt of HousiAg aAd CommuAity De't'elopmeAt to ha't'e met its moderate iAcome housiAg goals. Vote: majority Appropriation: no Fiscal Committee: yes Local Program: no THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 50467 is added to the Health and Safety Code, to read: 50467. (a) The department shall, upon appropriation by the Legislature, establish a competitive grant program to award grants to cities and counties, which may apply jointly with developers, to offset up to 100 percent of any transportation-related impact fees exacted upon a qualifying housing development project by the local jurisdiction. (b) A qualifying housing development project shall meet all of the following requirements: (1) The project will provide residential or mixed-use housing. http://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB84 7 4/5/2019 April 16, 2019 Item #5 Page 25 of 145 Bill Text -AB-847 Housing: transportation-related impact fees grant program. Page 3 of 9 (2) The project is consistent with the applicable sustainable communities strategy prepared by a metropolitan planning organization pursuant to Section 65080 of the Government Code. (3) At least 20 percent of the project's units will be available at an affordable housing cost. (c) In awarding moneys pursuant to the competitive grant program, the department shall give preference to a transit-oriented development project. SECTION l .Section 16965 of the Go'v'eFnFAent Code is aFAended to Fead: 16965.(a)(l)The Transportation Debt Senlice Fund is heFeby CFeated in the State TFeasurr. Moneys in the fund shall be dedicated to all of the following puFposes : (A)PayFAent of debt seFvice with Fespect to designated bonds, as defined in subdi'v'ision (c) of Section 16773, and as fUFther pro'v'ided in paragraph (3) and subdivision (b). (B)To FeiFAbUFSe the GeneFal Fund foF debt seF'v'iCe with Fespect to bonds. (C)To FedeeFA or FetiFe bonds, puFsuant to Section 16774, FAatuFing in a subsequent fiscal yeaF. (2)The bonds eligible undeF subparagraph (B) OF (C) of paragraph (1) include bonds issued puFsuant to the Clean Air and TFansportation IFApFO'v'eFAent Act of 1990 (Part 11.S (coFAFAencing with Section 99600) of Di•rision 10 of the Public Utilities Code), the PassengeF Rail and Clean AiF Bond Act of 1990 (Chapter 17 (coFAFAencing with Section 2701) of Di'v'ision 3 of the Streets and Highways Code), the SeisFAic Retrofit Bond Act of 1996 (Chapter 12.48 (comFAencing with Section 8879) of Di'v'ision 1 of Title 2), and the Safe, Reliable High Speed Passenger Train Bond Act for the 21st CentuFy (Chapter 20 (coFAFAencing with Section 2704) of Division 3 of the Streets and Highways Code), and nondesignated bonds under Prnposition 1B, as defined in subdi'v'ision (c) of Section 16773. (3)(A)The TFansportation Bond DiFect PayFAent Account is heFeby created in the State TFeasuFy, as a subaccount within the TranspoFtation Debt SeF'v'ice Fund, foF the puFpose of diFectly pa·ting the debt seF'rice, as defined in paragraph (4), of designated bonds of Proposition lB, as defined in subdivision (c) of Section 16773. ~Jotwithstanding Section 13340, FAoneys in the TFansportation Bond DiFect PayFAent Account aFe continuously apprnpFiated foF payFAent of debt service with Fespect to designated bonds as provided in subdivision (c) of Section 16773. So long as any designated bonds Femain outstanding, the moneys in the Transportation Bond DiFect Payment Account may not be used foF any otheF purpose, and may not be bOFFowed by OF a•.-ailable foF transfeF to the General Fund puFsuant to Section 16310 OF any similaF law, OF to the GeneFal Cash Revolving Fund puFsuant to Section 16381 or any similar law. (B)Once the TFeasuFer FAal~es a certification that payFAent of debt service with Fespect to all designated bonds has been paid OF prnvided for, any FeFAaining FAoneys in the Transportation Bond DiFect PayFAent Account shall be tFansfeFred back to the Transportation Debt Service Fund. (C)The moneys in the TFansportation Bond Direct PayFAent Account shall be invested in the SuFplus Money InvestFAent Fund, and all investFAent earnings shall accFUe to the account. (D)The ContrnlleF FAay establish subaccounts within the Transportation Bond Direct PayFAent Account as may be required by the resolution, indenture, or other docuFAents governing any designated bonds. (4)FoF purposes of this subdivision and subdi'v'ision (b), and subdivision (c) of Section 16773, "debt service" FAeans payFAent of all of the following costs and eicpenses with respect to any designated bond: (A)The pFincipal of and interest on the bonds. (B)Amounts payable as the result of tendeF on any bonds, as described in clause (i'v') of subpaFagraph (B) of paragFaph (1) of subdivision (d) of Section 16731. (C)AFAounts payable under any contractual obligation of the state to Fepay ad·.-ances and pay inteFest thereon undeF a cFedit enhanceFAent OF liquidity agFeeFAent as descFibed in clause (v) of subpaFagFaph (B) of paragraph (1) of subdivision (d) of Section 16731. (D)Any amount owed by the state to a counteFparty after any offset for payFAents owed to the state on any hedging contFact as described in subparagFaph (A) of paragraph (2) of subdivision (d) of Section 16731. (b)FFOFA the FAoneys transfeFFed to the fund puFSuant to paragraph (2) or (3) of subdi'v'ision (c) of Section 9400.4 of the Vehicle Code, there shall first be deposited into the Transportation Bond Direct Payment Account in each FAonth sufficient funds to equal the aFAount designated in a certificate subFAitted by the TreasUFer to the Contrnller and the Director of Finance at the staFt of each fiscal year, and as FAay be modified by the TreasuFer http:/ /leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB84 7 4/5/2019 April 16, 2019 Item #5 Page 26 of 145 Bill Text -AB-847 Housing: transportation-related impact fees grant program. Page 4 of9 thereafter upon issuance of any new is.sue of elesignateel 13onels or upon change in circumstances that requires such a moelification. This certificate shall 13c calculateel B'f the Treasurer to ielentify, for each month, the amount necessary to funEl all of the elei3t service with respect to all elesignateEl bonEls. This calculation shall 13c Elene in a manner proviEleEl in the resolution, inelenture, or other Elocuments governing the Elesignateel 13onels. If transfers to the Transportation Bone! Direct Payment Account in any month are less than the amounts requireel in the Treasurer's certificate, the shortfall shall carry O'v'CF to 13c part of the requires payment in the succeeeling month or months. (c)The state heres'; co•venants with the holelers from time to time of any ElesignateEl 13onels that it will not alter, amenel, or restrict the pro•visions of sui3Elivision (c) of Section 16773 of the Government Coele, or Sections 9100, 9100.1, 9100.1, anel 12205 of the Vehicle Coele, which prnviele elirectly or inelirectly for the transfer of weight fees to the Transportation Dest Service Fune! or the Transportation Bone! Direct Payment Account, or sui3elivisions (a) anEl (13) of this section, or reeluce the rate of imposition of vehicle weight fees uneler Sections 9100 anel 9100.1 of the Vehicle CoEle as they existeEl on the Elate of the first issuance of any elesignateel 13onEls, if that alteration, amenelment, restriction, or reEluction woulEl result in projecteel weight fees for the next fiscal year Eletermineel 13•,· the Director of Finance 13eing less than two times the maximum annual elei3t service with respect to all outstaneling elesignateel 13onEls, as such calculation is eletermineEl pursuant to the resolution, inelenture, or other elocuments governing the elesignateel 13onEls. The state may incluEle this co~•enant in the resolution, inelenture, or other elocuments governing the elesignateEl 13onels. (el)Once the requireel monthly eleposit, inclueling makeup of any shortfalls from any prior month, has seen maele pursuant to sui3elivision (13), from moneys transferreel to the funel pursuant to paragraph (2) or (3) of sui3Eli~·ision (c) of Section 9100.1 of the Vehicle Coele, or pursuant to Section 16965.1, the Contrnller shall transfer as an expeneliture reeluction to the General FunEl any amount necessary to offset the cost of current year elei3t service payments maele from the General FunEl with respect to any 13onEls issueel pursuant to Proposition 192 (1996) anel three quarters of the amount of current •iear elei3t service payments maEle from the General Fune! with respect to any nonelesignateel 13onels, as Elefineel in sui3eli~•ision (c) of Section 16773, issueel pursuant to Proposition 1B (2006). In the alternative, these funels may also 13c useel to reEleem or retire the applicable 13onels, pursuant to Section 16771, maturing in a sui3sequent fiscal year as elirecteel 13•; the Director of Finance. (e)Once the requires monthl•t eleposit, inclueling makeup of any shortfalls from any prior month, has seen maele pursuant to sui3eli•,•ision (13), from moneys transferreel to the funel pursuant to paragraph (2) or (3) of sui3elivision (c) of Section 9100.1 of the Vehicle Coele, or pursuant to Section 16965.1, the Controller shall transfer as an expenEliture reeluction to the General FunEl any amount necessary to offset the eligii31e cost of current year elei3t service payments maEle from the General Fune! with respect to any 13onEls issueel pursuant to Proposition 108 (1990) anEl Proposition 1/\ (2008), anel one quarter of the amount of current year Elei3t service payments maele from the General Fune! with respect to any nonelesignateEl 13onels, as Elefineel in sui3elivision (c) of Section 16773, issueel pursuant to Proposition 1B (2006). The Department of Finance shall notify the Controller 13y July 30 of every year of the percentage of elei3t service that is expecteel to 13c paiEl in that fiscal year with respect to 13onel funEleel projects that qualify as eligii31e guieleway projects consistent with the requirements applicai31e to the expeneliture of revenues uneler Article XIX of the California Constitution, anEl the Contrnller shall make payments only for those eligii31e projects. In the alternative, these funels may also 13c useel to reEleem or retire the applicai31e 13onels, pursuant to Section 16771, maturing in a sui3sequent fiscal year as Elirecteel 13y the Director of Finance. (f)On or 13efore the seconel 13usiness elay following the Elate on which transfers are maEle to the Transportation Dest Service Fune!, anEl after the ·requires monthly eleposits for that month, incluEling mal~eup of any shortfalls from any prior month, have seen maele to the Transportation Bone! Direct Payment Account, the Controller shall transfer the funEls Elesignateel for reimi3ursement of bonEl elebt service with respect to nonelesignateel 13onels, as elefineel in subelivision (c) of Section 16773, anel other bonels ielentifieel in sui3Elivisions (el) anEl (e) in that month from the funel to the General Fune! pursuant to this section. SEC. 2.Section 65100.5 is aEleleEl to the Government Coele, to reaEl: 65100.5.(a)For purposes of this section: (l)"Departrnent" means the Department of Housing anel Community De~·elopment. (2)"Prneluction report" means the information repartee! by a city or county pursuant to subparagraph (HJ of paragraph (2) of subElivision (a) of Section 65100 as a part of the annual report elescribeel in Section 65100. (b)The elepartment shall, on or 13efore June 30, 2020, anel on or before June 30 every year thereafter, review each proeluction report submitteEl 13y a city or county to eletermine if the city or county has met its very low, low , or moelerate income housing goals for that reporting perioel. For purposes of this section, "•very low, low , or rnoelerate income housing goals" means the proeluction report reflects that the numi3er of net ne• .... • units of http://leginfo.legislature.ca. gov /faces/billN avClient.xhtml ?bill _id=201920200AB84 7 4/5/2019 April 16, 2019 Item #5 Page 27 of 145 Bill Text -AB-847 Housing: transportation-related impact fees grant program. Page 6 of 9 are Aot limited to, project eligibility, applicatioA timeliAes, applicatioA ratiAg aAd raAkiAg criteria, project moAitoriAg, reportiAg, aAd traAspareAcy, aAd project perfurmaAce measuremeAt. (c)The guideliACS shall iAclude a process to CASUFC that AO less thaA 25 pCFCCAt of overall program fuAdS bCACfit disadvaAtaged commuAities duriAg each prngram cycle. The guideliAes shall establish a program defiAitioA for disadvaAtaged commuAities that may iAclude, but Aced Aot be limited to, the defiAitioA iA SectioA 39711 of the Health aAd Safety Code aAd the defiAitioA of low iAcome schools iA paragraph (7) of subdi•~isioA (b) of former SectioA 2333.5, as that sectioA read OA JaAuary 1, 2013. A praject eligible UAder this subdivisioA shall clearly demoAstrate a beAefit to a disadvaAtaged commuAity or be directly located iA a disad•t'aAtaged commuAity. (d)The guideliACS shall allow streamliAiAg of project delivery by authoriziAg aA implemCAtiAg ageAcy to seel( commissioA approval of a letter of AO prejudice that will allow the ageAcy to expeAd its owA fuAds for a project programmed iA a future year of the adopted program of prnjects, iA advaAce of allocatioA of fuAds to the project by the commissioA, a Ad to be reimbursed at a later time for eligible expCAditures. (e)The California TraAsportatioA CommissioA shall adopt the guideliAes aAd selectioA criteria for, aAd defiAe the types of projects eligible to be fuAded thrnugh, the prngram followiAg at least two public heariAgs. Projects fuAded iA this program shall be limited· to active traAsportation projects. The guidelines shall ensure that eligible projects meet one or more of the goals set forth in Section 2380 and may give iAcreased weight to wojects meeting multiple goals. (f)In developing the guidelines with regard to project eligibility, the commission shall include, but need not be limited to, the following project types: (l )Development of new bil<eways and walkways, OF improvemeAts to existing bikeways and walkways, that improve mobility, access, or safety for AOAmotorized users. (2)Secure bic;cle pa ricing at employment centers, park and ride lots, rail and transit stations, and ferry docks and laAdings. (3)Bicycle carrying facilities on public transit, including rail and ferries. (1)IAstallatioA of traffic coAtFOI devices to impro,·e the safety of pedestriaAs arid bicyclists. (5)Elimination of hazardous conditio.ns oA existing bilceways aAd walkways. (6)MaiAteAaAce of bikeways and walkways. (?)Recreational trails and trailheads, park projects that facilitate trail linkages or coAnectivity to nonmotorized corridors, aAd conversion of abandoned railroad corridors to trails. (8)Safe Routes to School projects that improve the safety of children walking aAd bic;cling to school, in accordance with Section 1101 of Public Law 109 59. (9)Safe routes to transit projects, which will encourage transit by improving biking and walking rnutes to mass transportatioA facilities and schoolbus stops. (lO)Educational programs to increase bilciAg and walking, and other noninfrastructure in~·estments that demoAstrate effectiveAess in increasing active transportation. (g)In developing the guidelines with regard to project selection, the commission shall include, but need not be limited to, the following criteria: (l)DemoAstrated Reeds of the applicant. (2)Potential for reducing pedestrian and bicyclist injuries and fatalities. (3)Potential for encouraging increased walkiAg and bicycling, especially among students. (1)Identification of safety hazards for pedestrians aAd bicyclists. (5)Identification of walking and bicycling routes to and from schools, traAsit facilities, and community centers. (6)IdeAtificatioA of the local public participation prncess that culminated in the project proposal, which may include Aoticed public meetings and consultatioA with local stakeholders. http://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB84 7 4/5/2019 April 16, 2019 Item #5 Page 29 of 145 Bill Text -AB-847 Housing: transportation-related impact fees grant program. Page 7 of 9 · (7)Benefit to disadvantaged communities. In developing guidelines relative to this paragraph, the commission shall consider, but need not be limited to, the definition of disadvantaged communities as applied pursuant to subdi•,<ision (c). (8)Cost effectiveness, defined as maximizing the impact of the funds provided. (9)The adoption by a city or county applicant of a bicycle transportation plan, pursuant to Section 891.2, a pedestrian plan, a safe routes to school plan, or an overall active transportation plan. (l0)Use of the Ca lifornia Conser.,·ation Corps or a 11ualified community conseFYation corps, as defined in Section 14 507.5 of the Public Resources Code, as partners to undertalce or construct applicable projects in accordance with Section 1524 of Public Law 112 141. (ll)Other factors, such as potential for reducing congestion, improving air 11uality, reducing greenhouse gas emissions, and increasing and improving connectivity and mobility of nonmotorized users. (h)For the use of federal Transportation Alternative Program funds, or other federal funds, commission guidelines shall meet all applicable federal re11uirements. (i)For the use of federal Highway Safety Improvement Program funds for acti•,<e transportation projects specific to reducing fatalities and serious injuries, the criteria for the selection of prCJ:iects shall be based on a data driven process that is aligned with the state's Strategic Highway Safety Plan . (j)The guidelines may include incenti.,•es intended to maicimize the potential for attracting funds other than program funds for eligible prO:iects. (lc)In reviewing and selecting projects funded by federal funds in the Recreational Trails Program, the commission shall collaborate with the Department of Parl<s and Recreation to evaluate proposed prO:iects, and to ensure federal re11uirements are met. (!)To ensure that regional agencies charged with allocating funds to prO:iects pursuant to paragraph (1) of subdivision (a) of Section 2381 ha.,·e sufficient discretion to develop regional guidelines, the commission may adopt separate guidelines for the state and for the regional agencies relative to subdivision (g). (m)The gu idelines shall give a 10 percent bonus to the selection priority of a project located in a city or county certified pursuant to Section 65400.5 to ha•,·e met its moderate income housing goals. SEC. 6.Section 9400.4 of the Vehicle Code is amended to read: 9400.4 .Weight fee revenue deposited into the State Highway Account pursuant to subdi•;ision (e) of Section 9400.1 and subdivision (a) of Section 42205 net of amounts appropriated for other purposes pursuant to subdi.,•ision (b) of Section 42205, and weight fee re•;enues deposited directly into the Transportation Debt SeFYice Fund pursuant to subdivision (e) of Section 9400.1 and subelivision (a) of Section 42205, as applicable, shall be used as follows: (a)For the 2010 11 fiscal year, seven hundred · fifty six million three hundred ninety siic thousand dollars ($756,396,000) is hereby appropriated from weight fee revenues in the State Highway Account for transfer to the General Fund as transportation bond debt seFYice reimbursement and loans as follows: (l)The Controller shall transfer all weight fee revenues deposited into the State Highway /l,ccount in any month to the Transportation Debt Service Fund for transfer to the General Fund as reimbursement for debt seFYice costs until all of the debt seFYice paid on transportation bonds for prO:iects that the Director of Finance indicates 11ualify for reimbursement as pro.,•ided for in Section 16965 of the Goli'ernment Code hali'e been reimbursed. (2)After the Director of Finance has notified the Controller that all debt ser .. ·ice costs for the 2010 11 fiscal year have been reimbursed, the Controller shall transfer any remaining monthly weig"1t fee reli'enues in the State Highway Account to the General Fund as a loan until the full amount appropriated in this subdili'ision has been transferred to the General Fund. The Director of Finance may repay any remaining portion of the outstanding balance of this loan in any year in which the Director of Finance determines the funds are needed to reimburse the General Fund for current year transportation bond debt seFYice or to redeem or retire those bonds, pursuant to Section 16774 of the Go.,·ernment Code, maturing in a subse11uent fiscal year, pro•,<ided that the loans shall be repaid no later than June 30, 2021. All funds loaned pursuant to this section, upon repayment to the State Highway Account, shall be immediately transferred by the Controller to the Transportation Debt Serli'ice Fund for use pursuant to Section 16965 of the Go·,·ernment Code. (3)By June 15, 2011, the Director of Finance in consultation with the Treasurer shall notify the Controller regarding the final amount of debt ser'o'ice paid from the General Fund during the 2010 11 fiscal year pursuant to http://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB84 7 4/5/2019 April 16, 2019 Item #5 Page 30 of 145 Bill Text -AB-847 Housing: transportation-related impact fees grant program. Page 8 of 9 Section 16965 of the GovernFRent Code and shall diFect the ContFOlleF to FeveFSe and adjust any transfers FRade as debt seFVice FeiFRbUFSeFRents OF loans so that a FRalEiFRUFR aFRount of transfers aFe FRade foF debt seF\'iCe FeiFRbuFseFRents and with any loan aFRounts liFRited to the diffeFence between this aFRount and the total aFRount apprnpFiated in this subdivision. The total aFRount of weight fee Fevenues transfeFFed froFR the State Highwa·,· Account foF the 2010 11 fiscal yeaF shall not be gFeateF than the total aFRount of weight fee Fevenues deposited into the State Highway Account foF that yeaF. (1)With Fespect to transfeFs OF portions of transfeFs that cannot be FRade in any given FRonth if weight fee Fevenues aFe insufficient, the fiFSt weight fee Fevenues available in the follo• ... ·ing FROnth OF FROnths shall be used to COFRplete the transfeFS foF the pFevious FROnth OF FROnths befoFe FRal<ing additional transfeFS foF lateF FROnths . (b)FoF the 2011 12 fiscal yeaF, all Fevenue generated froFR weight fees in the State Highway Account, as deteFFRined by Sections 9100.1 and 12205, e>Ecluding an aFRount equal to the loan of forty thFee FRillion seven hundFed thousand dollaFs ($13,700,000) authoFiced puFsuant to IteFR 2660 013 0012 of Section 2.00 of the Budget Act of 2011, is heFeby appFOpFiated foF tFansfeF to the General Fund as debt seFvice FeiFRbUFSeFRent and loans as follows: (l)The ContFOlleF shall tFansfeF all weight fee Fevenues deposited into the State Highway Account in any FRonth to the TFansportation Debt Service Fund for transfer to the GeneFal Fund as FeiFRburseFRent foF debt seFVice costs until all of the debt seF\'ice paid on transportation bonds foF pFojects that the DiFectoF of Finance indicates qualify foF FeiFRbUFSeFRent as pFovided foF in Section 16965 of the GoveFAFRent Code have been reiFRbUFSed. (2)AfteF the DiFectoF of Finance has notified the ContFOlleF that all debt seFvice costs for the 2011 12 fiscal yeaF ha\·e been FeiFRbuFsed, the ContFOlleF shall tFansfeF any FeFRaining weight fee Fevenues. foF that fiscal yeaF in the State Highway Account to the General Fund as a loan until all weight fee Fevenues foF that fiscal yeaF appropriated in this subdivision have been transferFed to the General Fund, e>Ecluding forty two FRillion dollaFs ($12,000,000), which shall be tFansfeFFed to the General Fund as a loan on July 1, 2012. The Director of Financ;e FRa·r repay an·r portion of the balance of this loan in any yeaF in which the DiFectoF of Finance deterFRines the funds aFe needed to reiFRburse the General Fund for CUFFent yeaF transportation bond debt seFvice OF to FedeeFR OF Fetire those bonds, puFsuant to Section 16771 of the GO'v'eFAFRent Code, FRaturing in a subsequent ·reaF, pFOvided that the loans shall be Fepaid no lateF than June 30, 2021. All funds loaned pursuant to this section, upon FepayFRent to the State Highway Account, shall be iFRFRediately transfeFred by the ControlleF to the TFansportation Debt SeF'v'ice Fund foF use puFsuant to Section 16965 of the GovernFRent Code. (3)By June 15, 2012, the DiFectoF of Finance in consu ltation with the TFeasuFeF shall notify the Contrnller FegaFding the final aFRount of debt seFvice paid froFR the GeneFal Fund duFing the 2011 12 fiscal ·reaF puFsuant to Section 16965 of the GoveFnFRent Code and shall diFect the ContFOlleF to FeveFse and adjust any tFansfeFS FRade as debt seFVice FeiFRbUFSeFRents OF loans so that a FRa>EiFRUFR aFRount of transfeFS aFe FRade foF debt SeFViCe FeiFRburseFRents and with any loan aFRounts liFRited to the diffeFence between this aFRount and the total aFRount appFOpFiated in this subdi'v'ision . The total aFRount of weight fee Fevenues transfeFFed fFOFR the State Highway Account foF the 2011 12 fiscal yeaF shall not be gFeateF than the total aFRount of weight fee Fevenues deposited into the State Highway Account in that yeaF. (1)With FCspect to tFansfeFs OF portions of tFansfers that cannot be FRade in any given FRonth if weight fee Fevenues aFe insufficient, the fiFst weight fee Fevenues available in the follov,•ing FRonth OF _FRonths shall be used to COFRplete the transfeFS foF the pFevious FROnth OF FROnths befon:: FRal<ing additional transfeFS for lateF FROnths. (c)(l)(A)Until the FRonth of fiFst issuance of designated bonds as defined in subdivision (c) of Section 16773 of the Go\·ernFRent Code, and at any tiFRe thereafteF that a TFeasureF's certification pursuant to subpaFagFaph (B) of paragFaph (3) of subdMsion (a) of Section 16965 of the Go•veFAFRent Code applies, all weight fee revenues subject to this section in any FRonth shall be tFansferred froFR the State Highway Account to the Transportation Debt Service Fund . (B)E>Ecept as provided in paragraph (3), OF when subparagraph (A) applies puFsuant to a Treasurer's certification, upon the first issuance of designated bonds, as defined in subdivision (c) of Section 16773 of the GovernFRent Code, starting in the FRonth following that first issuance, all weight fee Fe\·enues Fecei·,.ed by the ContFOller froFR the fiFst day thFOugh the 11th day of eveFy FRonth shall be transferred froFR the State Highway Account to the Transportation Debt SeFvice Fund . (C)AII funds transfeFFed pursuant to subparagraphs (A) and (B) aFe hereb•r appFOpFiated for tFansfeF to the General Fund by the Controller as reiFRburseFRent for debt service costs paid with Fespect to eligible bonds descFibed in subparagraph (A) of paragraph (2) of subdivision (a) of Section 16965 of the GovernFRent Code, until all debt service that the DirectoF of Finance indicates qualifies foF reiFRbuFseFRent as prnvided for in subdivision (d) or (e) of Section 16965 of the GovernFRent Code has been reiFRbursed , or to redeeFR or retire bonds, pursuant http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB847 4/5/2019 April 16, 2019 Item #5 Page 31 of 145 Bill Text -AB-847 Housing: transportation-related impact fees grant program. Page 9 of9 to Section 16774 of the Go11ernA'lent Code, as referenced in subdi¥ision (d) or (e) of Section 16965 of the Go11ernA'lent Code, that are A'laturing in a subsequent year. Alter the Director of Finance has notifieEI the Contmller that all debt sePrice costs for the fiscal year ha11e been reiA'lbursed, the Controller shall transfer any FeA'laining revenue generated froA'l weight fees subject to this section for that fiscal year in the State Highwa•r Account to the General Fund as a loan. The Director of Finance A'lay repay any portion of the balance of this loan in any year in which the Director of Finance deteFA'lines that the funds are needed to reiA'lburse the General Fund for current year transportation bond debt service or to redeeA'l OF retire those bonds pursuant to Section 16774 of the Go11ernf1'lent Code, A'laturing in a future fiscal •;ear, pro¥ided that the loans shall be repaid no later than June 30, 2021. All funds loaned pursuant to this section, upon repa•;fl'lent to the State Highway Account, shall be iA'lA'lediately transferred by the Contmller to the Transportation Debt Ser-.,ice Fund for use pursuant to Section 16965 of the GovernA'lent Code. B•; June 15 of each year, the Director of Finance, in consultation with the Treasurer, shall notify the Controller regarding the final aA'lount of debt seF11ice paid fFOA'l the General Fund during that fiscal year pursuant to subdivision (d) or (e) of Section 16965 of the Go¥eFRA'lent Code and shall direct the Contmller to re-.,erse or adjust any transfers A'lade as debt sef'rice reiA'lburseA'lents or loans so that a A'laximuA'l aA'lount of transfers are made for debt sefllice reiA'lburseA'lents and with any loan aA'lounts liA'lited to the difference between this aA'lount and the total aA'lount of revenue for that fiscal year generated froA'l weight fees, as deterA'lined by Sections 9400.1 and 4220S. The total aA'lount of weight fee re11enues transferred from the State Highway Accou nt in any fisca l year shall not be greater than the total aA'lount of weight fee re11enues deposited into the State Highway Account in that year. (2)Starting in the A'lonth following the first issuance of any designated bonds, unless a Treasurer's certification pursuant to subparagraph (B) of paragraph (3) of subdivision (a) of Section 1696S of the GovernA'lent Code applies, all weight fee re•renues subject to this section that are recei11ed b•y the Controller froA'l the 15th day of e11eP; A'lonth, or the first business day therealter if not a business day, through the last day of the A'lOnth shall be deposited directly in the Transportation Debt Service Fund and are hereby appropriated for transfer as follows: (A)First, to the Transportation Bond Direct PayA'lent Account as set forth in subdi11ision (b) of Section 1696S of the Go11ernf1'lent Code, to pro11ide for payA'lent of debt ser~•ice with respect to designated bonds. (B)Therealter, as pmvided in subparagraph (C) of paragraph (1). (3)Plotwithstanding paragraphs (1) and (2), if by the last day of a A'lonth the transfer for that A'lonth relating to designated bonds required by the Treasurer's certificate described in subdi11ision (b) of Section 16965 of the Go•,·ernA'lent Code has not been A'lade due to insufficient weight fee re11enue, weight fee revenue shall continue to be transferred pursuant to paragraph (2) beginning with the first day of the subsequent A'lOnth and continuing every day until such tiA'le as sufficient revenue for full coA'lpliance with the certificate has been transferred . . (4)Except as otherwise provided in paragraph (1), (2), or (3), with respect to any transfers or portions of transfers that cannot be A'lade in any given A'lonth if weight fee re•renues are insufficient, the first weight fee re11enues a11ailable in the following A'lonth or A'lonths shall be used to coA'lplete the transfers for the previous A'lonth or A'lonths before A'lal<ing additional transfers for later A'lonths. http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB847 4/5/2019 April 16, 2019 Item #5 Page 32 of 145 Bill Text -SB-4 Housing. Page 2 of 9 skilled and trained workforce requirements. The bill would also define "eligible parcel" to mean a parcel located within a city or county that has unmet regional housing needs and has produced fewer housing units than jobs over a specified period; is zoned to allow residential use and qualifies as an infill site; is not located within a historic district, coastal zone, very high fire hazard severity zone, or a flood plain; the development would not require the demolition of specified types of affordable housing; the parcel is not eligible for development under existing specified transit-oriented development authorizations; and the parcel in question has been fully reassessed on or after January 1, 2021, to reflect its full cash value. This bill would require a local agency to notify the development proponent in writing if the local agency determines that the development conflicts with any of the requirements provided for streamlined ministerial approval; otherwise, the development is deemed to comply with those requirements. The bill would limit the authority of a local agency to impose parking standards or requirements on a streamlined development approved pursuant to these provisions, as provided. The bill would prohibit a local agency, special district, or water corporation from considering a neighborhood multifamily unit to be a new residential use for the purpose of calculating fees charged for new development, except as otherwise provided. The bill would provide that if a local agency approves a project pursuant to that process, that approval will not expire if that project includes investment in housing affordability, and would otherwise provide that the approval of a project expire automatically after 3 years, unless that project qualifies for a one-time, one-year extension of that approval. The bill would provide that approval pursuant to its provisions would remain valid for 3 years and remain valid thereafter, so long as vertical construction of the development has begun and is in progress, and would authorize a discretionary one-year extension, as provided. The bill would prohibit a local agency from adopting any requirement that applies to a project solely or partially on the basis that the project receives ministerial or streamlined approval pursuant to these provisions. This bill would allow a local agency to exempt a project from the streamlined ministerial approval process described above by finding that the project will cause a specific adverse impact to public health and safety, and there is no feasible method to satisfactorily mitigate or avoid the adverse impact. (2) 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 does not apply to the approval of ministerial projects. This bill would establish a streamlined ministerial approval process for neighborhood multifamily and transit- oriented projects, thereby exempting these projects from the CEQA approval process. (3) The bill would make findings that ensuring access to affordable housing is a matter of statewide concern rather than a municipal affair and, therefore, applies to all cities, including a charter city and a charter city and county. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. UAEler existiAg law, ... ariaus ageAcies aelFAiAister 13ragraFAs ta 13reser,.e aAel ei<13aAel safe aAEl afferelable hausiAg a13partuAities aAel 13raFAate sauAel C0FAFAUAity grewth. This bill waulel state the iAteAt af the Legislature ta eAact legislatiaA that waulel liFAit restricti•ve lacal laAEl use palicies aAEl legislatiaA that waulel CAceurage iAcreaseel hausiAg EleYela13FAeAt Rea r traAsit aAEl jab ceAters, iA a FAaAAer that eAsures that e ... ery juriselictiaA ceAtributes Its fair share ta a housiAg salutiaA, while aclmawleelgiAg rele•,<aAt eliffereAces aFAaAg caFAFAUAities. Vote: majority Appropriation: no Fiscal Committee: -Reyes Local Program: -Reyes THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. (a) The Legislature finds and declares all of the following: (1) California's high and rising land costs necessitate dense housing construction in order for a project to be financially viable and affordable to lower income households. Yet, recent trends in California show that new housing has not commensurately increased in density. In a 2016 analysis, the Legislative Analyst's Office found https ://leginf o .legislature.ca. gov /faces/bill TextClient.xhtml ?bill_ id=201920200SB4 4/5/2019 April 16, 2019 Item #5 Page 35 of 145 Bill Text -SB-4 Housing. Page 3 of9 that the housing density of a typical neighborhood in California's coastal metropolitan areas increased only by 4 percent during the 2000s. The pattern of development in California has changed in ways that limit new housing opportunities. New development shifted from moderate, but widespread density in the 1960s and 1970s, to pockets of high-density housing near downtown cores surrounded by vast swaths of low-density single-family housing. (2) Economists widely agree that restrictive land use policies increase housing prices. Studies have found that housing prices in California are higher and increase faster in jurisdictions with stricter land use controls, and in some markets, each additional regulatory measure increases housing prices by nearly 5 percent. Stricter land use controls are also associated with greater displacement and segregation along both income and racial lines. Restrictive land use policies also hurt economic growth by preventing residents from moving to more productive areas where they can accept more productive jobs that pay higher wages. (3) At the same time, there are limitations to lowering housing prices by expanding supply. New housing stock takes decades to become affordable, and new housing can displace existing residents absent adequate safeguards. Moreover, reductions in the cost to produce housing do not necessarily lead to a reduction in housing prices. While local governments agencies control housing approvals, developers are ultimately responsible for construction. Finally, solutions that apply to the state's major metropolitan areas may not be effective in rural areas. (b) Therefore, it is the intent of the Legislature to enact legislation that would limit restrictive local land use policies and legislation that would encourage increased housing development near transit and job centers, in a manner that ensures that every jurisdiction contributes its fair share to a housing solution, while acknowledging relevant differences among communities. SEC. 2. Section 65913.5 is added to the Government Code, to read: 65913.5. For purposes of this section and Section 65913.6, the following definitions shall apply. (a) "Development proponent" means the developer who submits an application for streamlined approval pursuant to Section 65913.6. (b) "Eligible parcel" means a parcel that meets all of the following requirements: (1) The parcel on which the project would be located has been fully reassessed on or after January 1, 2021, to reflect its full cash value as if a change in ownership has occurred, as defined by Sections 60 and 61 of the Revenue and Taxation Code. (2) The parcel is located within the jurisdictional boundaries of a local agency that meets both of the following conditions: (A) The Department of Housing and Community Development has determined that the local agency has produced fewer housing units than jobs over the past 10 years, based on data developed by the United States Bureau of Labor Statistics and the Employment Development Department. (B) The local agency has unmet regional housing needs. (3) The parcel is not located within any of the following: (A) An architecturally or historically significant historic district, as defined in subdivision (h) of Section 5020.1 of the Public Resources Code. (B) A coastal zone, as defined in Division 20 (commencing with Section 30000) of the Public Resources Code. (C) A very high fire hazard severity zone, as determined by the Department of Forestry and Fire Protection pursuant to Section 51178, or within a high or very high fire hazard severity zone as indicated on maps adopted by the Department of Forestry and Fire Protection pursuant to Section 4202 of the Public Resources Code. A parcel is not ineligible within the meaning of this paragraph if it is either of the following: (i) A site excluded from the specified hazard zones by a local agency, pursuant to subdivision (b) of Section 51179. (ii) A site that has adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development. (D) A flood plain as determined by maps promulgated by the Federal Emergency Management Agency, unless the development has been issued a flood plain development permit pursuant to Part 59 (commencing with Section https ://leginf o .legislature.ca. gov /faces/bill TextClient.xhtml ?bill_ id=201920200SB4 4/5/2019 April 16, 2019 Item #5 Page 36 of 145 Bill Text -SB-4 Housing. Page 4 of 9 59.1) and Part 60 (commencing with Section 60.1) of Subchapter 8 of Chapter I of Title 44 of the Code of Federal Regulations. (4) The development of the project on the proposed parcel would not require the demolition of any of the following types of housing: (A) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (8) Housing that is subject to any form of rent or price control through a public entity's valid exercise of its police power. (C) Housing that has been occupied by tenants within the past 10 years. (5) The site was not previously used for housing that was occupied by tenants that was demolished within 10 years before the development proponent submits an application under this section. (6) The development of the project on the proposed parcel would not require the demolition of a historic structure that was placed on a national, state, or local historic register. (7) The proposed parcel does not contain housing units that are occupied by tenants, and units at the property are, or were, subsequently offered for sale to the general public by the subdivider or subsequent owner of the property. (8) The parcel is zoned to allow residential use and qualifies as an infill site. (9) The parcel does not qualify as an eligible TOD project site for a development under Article 4 (commencing with Section 29010) of Chapter 6 of Part 2 6f Division 10 of the Public Utilities Code. (c) "Eligible TOD project" means a TOD project, located on an eligible parcel in an urban community, that meets all of the following requirements: (1) It has a height less than or equal to one story, or 15 feet, above the highest allowable height for mixed use or residential use. For purposes of this paragraph, "highest allowable height" means the tallest height, including heights that require conditional approval, allowable pursuant to zoning and any specific or area plan that covers the parcel. (2) It is located within a one-half mile of an existing or planned transit station entrance. (3) It has a floor area ratio equal to or less than 0.6 times the number of stories that satisfies paragraph (1). If the parcel is not subject to a zoning ordinance or other restriction on maximum height, the maximum allowable floor area ratio shall be calculated by multiplying the number of stories proposed for the project by 0. 6. (4) It has a minimum density of 30 dwelling units per acre in jurisdictions considered metropolitan, as defined in subdivision (f) of Section 65583.2, or a minimum density of 20 dwelling units per acre in jurisdictions considered suburban as defined in subdivision (e) of Section 65583.2. (5) It provides parking as follows: (A) The project provides parking consistent with the provisions of subdivision (p) of Section 65915, if the project is located in a city with less than 100,000 residents or if the project is located in a city with over 100,000 residents and is between one-fourth and one-half mile from an existing or planned transit station. (8) No minimum parking requirement shall apply to a project located in a jurisdiction with over 100,000 residents and that is within one-fourth of a mile from an existing or planned transit station entrance. (6) At least two-thirds of the square footage of the development is designated for residential use. (7) The eligible TOD project meets all local requirements that do not conflict with this section or Section 65913.6, including, but not limited to, a general plan, specific plan, or zoning ordinance. If, on or after July 1, 2019, a local agency adopts an ordinance that eliminates residential zoning designations or decreases residential zoning development capacity within an existing zoning district in which the development is located other than what was authorized on July 1, 2019, then that development shall be deemed to be consistent with any applicable requirement of this section and Section 65913.6 if it complies with zoning designations not in conflict with this section and Section 65913.6 that were authorized as of July 1, 2019. (8) The development proponent of the TOD project, in coordination with the applicable local transit agency, develops a plan to ensure transit accessibility to the residents of the development. https :/ /leginf o .legislature.ca. gov /faces/bill TextClient.xhtml ?bill _id=201920200S84 4/5/2019 April 16, 2019 Item #5 Page 37 of 145 Bill Text -SB-4 Housing. Page 5 of 9 (9) For a TOD project relating to a planned transit station, the station has been approved by an ordinance or resolution adopted by the legislative body of the local agency with local land use zoning jurisdiction over the area in which the station· is located. (10) For a TOD project of 10 units or greater, the development proponent dedicates a minimum of 30 percent of the total number of units available at an affordable rent or affordable housing cost to households earning below 80 percent of the area median income and executes a recorded affordability restriction for at least 55 years. If the local agency has adopted a local ordinance that requires that greater than 30 percent of the units be dedicated to housing affordable to households making below 80 percent of the area median income, then that local ordinance shall apply. (11) The TOD project proponent certifies to the local agency that either of the following is true, as applicable: (A) The entirety of the development is a public work for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code. (8) If the development is not in its entirety a public work, that all construction workers employed in the execution of the development will be paid at least the general prevailing rate of per diem wages for the type of work and geographic area, as determined by the Director of Industrial Relations pursuant to Sections 1773 and 1773. 9 of the Labor Code, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate. If the development is subject to this subparagraph, then for those portions of the development that are not a public work all of the following shall apply: (i) The development proponent shall ensure that the prevailing wage requirement is included in all contracts for the performance of the work. (ii) All contractors and subcontractors shall pay to all construction workers employed in the execution of the work at least the general prevailing rate of per diem wages, except that apprentices registered in programs approved by the Chief of the Division of Apprenticeship Standards may be paid at least the applicable apprentice prevailing rate. (iii) Except as provided in clause (v), all contractors and subcontractors shall maintain and verify payroll records pursuant to Section 1776 of the Labor Code and make those records available for inspection and copying as provided therein. (iv) Except as provided in clause (v), the obligation of the contractors and subcontractors to pay prevailing wages may be enforced by the Labor Commissioner through the issuance of a civil wage and penalty assessment pursuant to Section 1741 of the Labor Code, which may be reviewed pursuant to Section 1742 of the Labor Code, within 18 months after the completion of the development, by an underpaid worker through an administrative complaint or civil action, or by a joint labor-management committee though a civil action under Section 1771.2 of the Labor Code. If a civil wage and penalty assessment is issued, the contractor, subcontractor, and surety on a bond or bonds issued to secure the payment of wages covered by the assessment shall be liable for liquidated damages pursuant to Section 1742.1 of the Labor Code. (v) Clauses (iii) and (iv) shall not apply if all contractors and subcontractors performing work on the development are subject to a project labor agreement that requires the payment of prevailing wages to all construction workers employed in the execution of the development and provides for enforcement of that obligation through an arbitration procedure. For purposes of this clause, "project labor agreement" has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code. (vi) Notwithstanding subdivision (c) of Section 1773.1 of the Labor Code, the requirement that employer payments not reduce the obligation to pay the hourly straight time or overtime wages found to be prevailing shall not apply if otherwise provided in a bona fide collective bargaining agreement covering the worker. The requirement to pay at least the general prevailing rate of per diem wages does not preclude use of an alternative workweek schedule adopted pursuant to Section 511 or 514 of the Labor Code. (12) (A) For a TOD project in which any of the following conditions apply, the development proponent certifies that a skilled and trained workforce shall be used to complete the development if one of the following is met: (i) The development consists of 50 or more units with a residential component that is not 100 percent subsidized affordable housing and will be located within a local agency located in a coastal or bay county with a population of 225,000 or more. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill _id=201920200SB4 4/5/2019 April 16, 2019 Item #5 Page 38 of 145 Bill Text -SB-4 Housing. Page 6 of 9 (ii) The development consists of more than 25 units with a residential component that is not 100 percent subsidized affordable housing and will be located within a local agency with a population of fewer than 550,000 and that is not located in a coastal or bay county. (8) Notwithstanding subparagraph (A), a project that is subject to approval pursuant to this section is exempt from the prevailing wage and skilled workforce requirements if it meets both of the following: (i) The project includes fewer than 10 units. (ii) The project is not a public work for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code. (C) For purposes of this paragraph, ."skilled and trained workforce" has the same meaning as provided in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code. (D) If the development proponent has certified that a skilled and trained workforce will be used to complete the development and the application is approved, all of the following shall apply: (i) The development proponent shall require in all contracts for the performance of work that every contractor and subcontractor at every tier will individually use a skilled and trained workforce to complete the development. (ii) Every contractor and subcontractor shall use a skilled and trained workforce to complete the development. (iii) Except as provided in clause (iv), the development proponent shall provide to the local agency, on a monthly basis while the development or contract is being performed, a report demonstrating compliance with Chapter 2. 9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code. A monthly report provided to the local agency pursuant to this clause shall be a public record under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1) and shall be open to public inspection. A development proponent that fails to provide a monthly report demonstrating compliance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code shall be subject to a civil penalty of ten thousand dollars ($10,000) per month for each month for which the report has not been provided. Any contractor or subcontractor that fails to use a skilled and trained workforce shall be subject to a civil penalty of two hundred dollars ($200) per day for each worker employed in contravention of the skilled and trained workforce requirement. Penalties may be assessed by the Labor Commissioner within 18 months of completion of the development using the same procedures for issuance of civil wage and penalty assessments pursuant to Section 1741 of the Labor Code, and may be reviewed pursuant to the same procedures in Section 1742 of the Labor Code. Penalties shall be paid to the State Public Works Enforcement Fund created pursuant to Section 1771 .3 of the Labor Code. (iv) Clause (iii) shall not apply if all contractors and subcontractors performing work on the development are subject to a project labor agreement that requires compliance with the skilled and trained workforce requirement and provides for enforcement of that obligation through an arbitration procedure. For purposes of this subparagraph, "project labor agreement" has the same meaning as set forth in paragraph (1) of subdivision (b) of Section 2500 of the Public Contract Code. (d) "Floor area ratio" means the ratio of gross building area of the development, excluding structured parking areas, proposed for the project, divided by the total area of the parcel or parcels used by the project. For purposes of this subdivision, "gross building area" means the sum of all finished areas of all floors of a building included within the outside faces of its exterior walls. (e) "Local agency" means a city, including a charter city, a county, including a charter county, or a city and county, including a charter city and county. (f) "Neighborhood multifamily project" means a project to construct a multifamily unit of up to two residential dwelling units in a nonurban community, and up to four residential dwelling units in an urban community, located on an eligible parcel, that meets all of the following requirements: (1) The parcel or parcels on which the neighborhood multifamily project would be located is vacant land, as defined in subdivision (p). (2) The neighborhood multifamily project meets all local requirements that do not conflict with this subdivision or Section 65913.6 for height, setbacks, lot coverage, and any other applicable local zoning requirement. If, on or after July 1, 2019, a local agency adopts an ordinance that eliminates residential zoning designations or decreases residential zoning development capacity within an existing zoning district in which the development is located than what was authorized on July 1, 2019, then that development shall be deemed to be consistent .with https://leginfo.legislature.ca. gov /faces/bill TextClient.xhtml ?bill_ id=201920200SB4 4/5/2019 April 16, 2019 Item #5 Page 39 of 145 Bill Text -SB-4 Housing. Page 7 of 9 any applicable requirement of this section and Section 65913.6 if it complies with zoning designations not in conflict with this section and Section 65913.6 that were authorized as of July 1, 2019. (3) The project provides at least 0.5 parking spaces per unit. (g) "Planned transit station" means a transit station that has completed the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) review and for which construction is more than 75 percent funded. (h) "Production report" means the information reported pursuant to subparagraph (HJ of paragraph (2) of subdivision (a) of Section 65400. (i) "Reporting period" means either of the following: (1) The first half of the regional housing needs assessment cycle. (2) The last half of the regional housing needs assessment cycle. (j) "Station entrance" means the entry point into an enclosed station structure, or, if that point is not clear or does not exist, the station fare gates. (k) "TOD" means transit-oriented development. (/) "Transit station" means a passenger rail or light-rail station or ferry terminal, but does not include stations solely served by National Railroad Passenger Corporation lines that leave the state. (m) "Unmet regional housing needs" means the Department of Housing and Community Development has determined that the number of units that have been entitled, or issued building permits or certificates of occupancy, is less than the local agency's share of the regional housing needs, for any income category, for that reporting period. A local agency shall remain subject to this subdivision until the department's determination for the next reporting period. A local agency shall be subject to this subdivision if it has not submitted an annual housing element report to the department pursuant to paragraph (2) of subdivision (a) of Section 65400 for at least two consecutive years before the development submitted an application for approval by Section 65913.6. (n) "Urban community" means either of the following: (1) A city with a population of 50,000 or greater that is located in a county with a population of less than 1,000,000. (2) An urbanized area or urban cluster, as designated by the United States Census Bureau, located in a county with a population of 1,000,000 or greater. (o) "Nonurban community" means an urbanized area or urban cluster, as designated by the United States Census Bureau, that is not an urban community. (p) "Vacant land" means either of the following: (1) A property that contains no existing structures. (2) A property that contains at least one existing structure, but the structure or structures have been unoccupied for at least five years and are considered substandard as defined by Section 17920.3 of the Health and Safety Code. (q) (1) "Infill site" means a site in an urban or nonurban community that meets either of the following criteria: (A} The site has not been previously developed for urban uses and both of the following apply: (i) The site is immediately adjacent to parcels that are developed with urban uses, or at least 75 percent of the perimeter of the site adjoins parcels that are developed with urban uses, and the remaining 25 percent of the site adjoins parcels that have previously been developed for urban uses. (ii) No parcel within the site has been created within the past 10 years unless the parcel was created as a result of the plan of a redevelopment agency. (BJ The site has been previously developed for urban uses. (2) For purposes of this subdivision, "urban use" means any residential, commercial, public institutional, transit or transportation passenger facility, or retail use, or any combination of those uses. https ://leginfo .legislature.ca. gov /faces/billTextClient.xhtml ?bill_ id=201920200SB4 4/5/2019 April 16, 2019 Item #5 Page 40 of 145 Bill Text -SB-4 Housing. Page 8 of 9 SEC. 3. Section 65913.6 is added to the Government Code, to read: 65913.6. (a) For purposes of this section, the definitions provided in Section 65913.5 shall apply. (b) Except as provided in subdivision (i), a development proponent of a neighborhood multifamily project or eligible TOD project located on an eligible parcel may submit an application for a development to be subject to a strecJmlined, ministerial approval process provided by subdivision (c) and not be subject to a conditional use permit if the development meets the requirements of this section and Section 65913.5 and is consistent with objective zoning standards and objective design review standards in effect at the time that the development is submitted to the local agency pursuant to this section. For purposes of this subdivision, "objective zoning standards" and "objective design review standards" means standards that involve no personal or· subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development proponent and the public official before the development proponent submits an application pursuant to this section. (c) (1) If a local agency determines that a development submitted pursuant to this section is in conflict with any of the requirements specified in this section or Section 65913.5, it shall provide the development proponent written documentation of which requirement or requirements the development conflicts with, and an explanation for the reason or reasons the development conflicts with that requirement or requirements, as follows: (A) Within 60 days of submission of the development to the local agency pursuant to this section if the development contains 150 or fewer housing units. (8) Within 90 days of submission o_f the development to the local agency pursuant to this section if the development contains more than 150 housing units. (2) If the local agency fails to provide the required documentation pursuant to paragraph (1), the development shall be deemed to satisfy the requirements of this section and Section 65913.5. (d) Any design review or public oversight of the development may be conducteq by the local agency's planning commission or any equivalent board or commission responsible for review and approval of development projects, or the city council or board of supervisors, as appropriate. That design review or public oversight shall be objective and be strictly focused on assessing compliance with criteria required for streamlined projects, as well as any reasonable objective design standards published and adopted by ordinance or resolution by a local agency before submission of a development application, and shall be broadly applicable to development within the local agency. That design review or public oversight shall be completed as follows and shall not in any way inhibit, chill, or preclude the ministerial approval provided by this section or its effect, as applicable: (1) Within 90 days of submission of the development to the local agency pursuant to this section if the development contains 150 or fewer housing units. (2) Within 180 days of submission of the development to the local agency pursuant to this section if the development contains more than 150 housing units. (e) Notwithstanding any other law, a local agency, whether or not it has adopted an ordinance governing automobile parking requirements in multifamily developments,' shall not impose automobile parking standards for a streamlined development that was approved pursuant to this section beyond those provided in the minimum requirements of Section 65913.5. (f) (1) If a local agency approves a development pursuant to this section, then, notwithstanding any other law, that approval shall not expire if the project includes public investment in housing affordability, beyond tax credits, and 50 percent of the units are affordable to households making below 80 percent of the area median income. (2) If a local agency approves a development pursuant to this section and the project does not include 50 percent of the units affordable to households making below 80 percent of the area median income, that approval shall automatically expire after three years except that a project may receive a one-time, one-year extension if the project proponent provides documentation that there has been significant progress toward getting the development construction ready. For purposes of this paragraph, "significant pror,Jress" includes filing a building permit application. (3) If a local agency approves a development pursuant to this section, that approval shall remain valid for three years from the date of the final action establishing that approval and shall remain valid thereafter for a project so long as vertical construction of the development has begun and is in progress. Additionally, the development proponent may request, and the local agency shall have discretion to grant, an additional one-year extension to https://leginfo.legislature. ca. gov /faces/bill TextClient.xhtml ?bill_ id=20 l 920200SB4 4/5/2019 April 16, 2019 Item #5 Page 41 of 145 Bill Text -SB-4 Housing. . Page 9 of 9 the original three-year period. The local agency's action and discretion in determining whether to grant the foregoing extension shall be limited to considerations and process set forth in this section. (g) A neighborhood multifamily project shall not be considered by a local agency, special district, or water corporation to be a new residential use for the purposes of calculating fees charged for new development, except as provided in paragraphs (1) and (2). (1) Connection fees and capacity charges related to water, sewer, and electrical service shall be determined in accordance with Chapter 5 (commencing with Section 66000) and Chapter 7 (commencing with Section 66012). (2) Fees charged by a school district pursuant to Chapter 4.9 (commencing with Section 65995) of this code and Chapter 6 (commencing with Section 17620) of Part 10.5 of Division 1 of Title 1 of the Education Code shall be limited to no more than three thousand dollars ($3,000) per dwelling unit. (h) A development proponent of an eligible TOD project may apply for a density bonus pursuant to Section 65915. For purposes of an application submitted pursuant to this section, "maximum allowable gross residential density," as that term is used in Section 65915, includes the highest allowable height, as defined in paragraph {1) of subdivision (c) of Section 65913.5, and the floor area ratio requirement described in of paragraph (2) of subdivision (c) of Section 65913.5. A project that meets the requirements of subdivision (c) of Section 65913.5 before the addition of any height increases, density increases, waivers, or concessions awarded through a density bonus shall remain eligible for streamlining under this section after the addition of a density bonus, waiver, incentive, or concession. (i) This section shall not apply if the local agency finds that the development project as proposed would have a specific, adverse impact upon the public health or safety, including, but not limited to, fire safety, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low-and moderate-income households. As used in this paragraph, a "specific, adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. Inconsistency with the zoning ordinance or general plan land use designation shall not constitute a specific, adverse impact upon the public health or safety. (j) A local agency shall not adopt any requirement, including, but not limited to, increased fees or inclusionary housing requirements, that applies to a project solely or partially on the basis that the project is eligible to receive ministerial or streamlined approval pursuant to this section. (k) This section shall not affect a development proponent's ability to use any alternative streamlined by right permit processing adopted by a local agency, including the provisions of subdivision (i) of Section 65583.2 or 65913.4. (/) This section shall become effective on January 1, 2022. SEC. 4. The Legislature finds and declares that ensuring access to affordable housing is a matter of statewide concern, and not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, the changes made by this act apply to all cities, including a charter city or a charter city and county. SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code. https ://leginf o .legislature.ca. gov /faces/billTextClient.xhtml ?bill_ id=201920200SB4 4/5/2019 April 16, 2019 Item #5 Page 42 of 145 Each applicant that has received financing pursuant to the program for any fiscal year shall provide a report to the Committee. The Committee will provide oversight of the funds and will be responsible for providing an annual report on program outputs to the Joint Legislative Budget Committee. SUPPORT California Association of Housing Authorities California State Pipe Trades Council California State Association of Electrical Workers City of Eureka City of Modesto First Community Housing International Association of Sheet Metal, Air, Rail and Transportation Workers International Union of Operating Engineers Laborers' International Union of North America League of Cities Mayor of San Jose Northern California Carpenters Regional Council Petaluma Pie Company Plumbers, Steamfitters, Pipefitters and HV AC/R Service Technicians UA Local Union 393 Santa Clara & San Benito Counties Building & Construction Trades Council Sprinkler Fitters and Apprentices Local 483 State Building and Construction Trades Council, ALF- CIO Ventura Council of Governments W estem States Council of Sheet Metal Workers Working Partnership USA (WPUSA) Verbal support Bay Area Council (waiting for support letter) FOR MORE INFORMATION Sunshine Borelli Office of Senator Jim Beall (916) 651-4015 Sunsine.Borelli@sen.ca.gov Senator Jim Beall (D-San Jose)· SB 5 Fact Sheet· 03/12/2018 April 16, 2019 Item #5 Page 44 of 145 Bill Text -SB-5 Affordable Housing and Community Development Investment Program. Page 2 of 11 $250,000,000 per year from July 1, 2025, to June 30, 2029, in reductions in annual ERAF contributions for applicants for plans approved pursuant to this program. This bill would provide that eligible projects include, among other things, construction of workforce and affordable housing, certain transit oriented development, and projects promoting strong neighborhoods. The bill would require the Affordable Housing and Community Development Investment Committee, upon approval of a plan, to issue an order directing the county auditor to reduce the total amount of ad valorem property tax revenue otherwise required to be contributed to the county's ERAF from the applicant by the annual reduction amount approved. The bill would require a cou nty auditor, auditor to deposit the total annual reduction amount approved within a county into the Affordable Housing and Community Development Investment Fund, which is created by this bill in the treasury of each county, and allocate moneys in that fund as directed by the committee, as specified. The bill would require the auditor, if the applicant is an enhanced infrastructure financing district, affordable housing authority, transit village development district, or community revitalization investment authority, to transfer to the district or authority city or county that created the authority or district an amount of property tax revenue equal to the reduction amount approved by the Affordable Housing and Community Development Investment Committee. Committee for that authority or district. The bill would require the city or county that created the district to, upon receipt, transfer those funds to the authority or district in an amount equal to the affordable housing and community development investment amount for that authority or district. By imposing additional duties on local officials, the bill would impose a state-mandated local program. The bill would authorize applicants to use approved amounts to incur debt or issue bonds or other financing to support an approved project. The bill also would require each applicant that has received funding to submit annual reports, as specified, and would require the Affordable Housing and Community Development Investment to provide a report to the Joint Legislative Budget Committee that includes certain project information. Section 8 of Article XVI of the California Constitution sets forth a formula for computing the minimum amount of revenues that the state is required to appropriate for the support of school districts and community college districts for each fiscal year. This bill would require the Director of Finance to adjust the percentage of General Fund revenues appropriated for school districts and community college districts for these purposes in a manner that ensures that the reductions in contributions to a county's ERAF pursuant to the Affordable Housing and Community Development Investment Program have no net fiscal impact upon the total amount of the General Fund revenue and local property tax revenue allocated to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution, as specified. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) In recent years the Legislature has created several new opportunities to use tax increment financing, which include the formation of enhanced infrastructure financing districts, affordable housing authorities, and community revitalization investment authorities. While these new tools can be useful to local agencies, they are widely viewed as lacking sufficient financial capacity compared to what existed under the former tax increment financing tool utilized by community redevelopment agencies. (1) Under redevelopment, all of the growth in property tax (tax increment) within a project area over a base year, net of mandatory pass-through payments, that would otherwise be allocated to cities, counties, special districts and school districts was dedicated to redevelopment purposes. Under the new tax increment tools, however, property tax increment from affected taxing agencies other than the initiating city or county can only be dedicated with the approval of the affected local agencies. https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_ id=201920200SB5 4/5/2019 April 16, 2019 Item #5 Page 46 of 145 Bill Text -SB-5 Affordable Housing and Community Development Investment Program. Page 3 of 11 (2) While potential local partnerships between cities, counties, and special districts involving new economic development tools continue to be explored by the state and local governments, a reality is that the state and local governments often have other policy and budget priorities, and lack incentives to participate. (3) The language in the new tax increment laws currently prohibit school districts from participating, largely reflecting state concerns over potential backfill requirements for school funding under the requirements of Proposition 98 of 1988. (b) The state shares many policy priorities with local governments, including affordable housing and economic development, that can be advanced by creating a new infrastructure financing tool that would focus on the following: (1) Increasing the production of affordable housing available to very low, low-, and moderate-income families. (2) Expanding transit-oriented development at higher densities. (3) Reducing jobs-housing imbalances in areas with high job growth. (4) Increasing the availability of high-quality jobs through the rehabilitation, construction, and maintenance of housing and infrastructure. (5) Improving the quality of life in neighborhoods and disadvantaged communities. (6) Incentivizing growth in urban areas, thereby reducing sprawl and ensuring that open space is preserved throughout the state. (7) Reducing poverty and caseloads of state and county safety net support programs by incentivizing the training and hiring of affected individuals to jobs where they can be self-supporting. (8) Protecting communities dealing with the effects of sea level rise, which is one of the most significant threats of climate change. (c) The Legislature has .declared that the policy priorities listed in subdivision (b) are matters of statewide concern. It is therefore appropriate that the state and local governments contribute financially to the realization of these priorities. (d) By allowing local agencies to reduce their contributions to their county's Educational Revenue Augmentation Fund (ERAF) to fund affordable housing projects and related infrastructure, the state can advance its policy priorities while also protecting funding for schools and limiting effects on the state budget. The state's interests can be ensured and protected in the following manner: (1) Requiring approval of the newly created Affordable Housing and Community Development Investment Committee, to ensure that the investment of property taxes otherwise allocated to schools through a county's educational revenue augmentation fund are used only for projects that maximize state policy benefits while ensuring that an economic analysis projects increased property tax revenues for schools in the affected territory upon project completion. (2) Offering additional incentives to participating counties and special districts. (3) Establishing an annual cap on the total affordable housing and community development investment amount · that may be approved to be allocated by the Affordable Housing and Community Development Investment Committee, as follows: (A) Not to exceed two hundred million dollars ($200,000,000) annually between July 1, 2020, and June 30, 2025. (B) Not to exceed two hundred fifty million dollars ($250,000,000) annually between July 1, 2025, and June 30, 2029. (4) Requiring annual reports to the Legislature on the status of all projects funded through this program. (e) It is the intent of the Legislature that schools and community colleges receive no less total funding from General Fund and local property tax revenue as a result of the bill. (f) It is the intent of the Legislature to have the state provide increased funding in an amount that equals reductions in local ERAF funds to the point necessary for schools to meet their minimum funding guarantee pursuant to existing law. https :/ /leginf o .legislature. ca. gov /faces/billN avClient.xhtml ?bill _id=201920200SB5 4/5/2019 April 16, 2019 Item #5 Page 47 of 145 Bill Text -SB-5 Affordable Housing and Community Development Investment Program. Page 4 of 11 (g) It is the intent of the Legislature that local agencies receive the same amount of excess ERAF as they would have if the program established by this bill were not in effect. SEC. 2. Section 41202.6 is added to the Education Code, to read: 41202.6. (a) It is the intent of the Legislature to ensure that the program authorized by the Affordable Housing and Community Development Investment Program established by Part 4 (commencing with Section 55900) of Division 2 of Title 5 of the Government Code does not affect the amount of funding required to be applied for the support school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution. (b) The Director of Finance shall adjust "the percentage of General Fund revenues appropriated for school districts and community college districts" for the purpose of applying paragraph (1) of subdivision (b) of Section 8 of Article XVI of the Cal ifornia Constitution in a manner that ensures that reductions in contributions to a county's Educational Revenue Augmentation Fund authorized by Section 97.68.1 of the Revenue and Taxation Code shall have no net fiscal impact upon the total amount of General Fund revenue and local property tax revenue allocated to school districts and community college districts pursuant to Section 8 of Article XVI of the California Constitution. The Director of Finance shall make this adjustment effective with the 2020-21 fiscal year, consistent with the start of the grant program pursuant paragraph (1) of subdivision (a) of Section 55906 of the Government Code. The Director of Finance shall update the adjustment for subsequent increases or decreases in the amount of reductions authorized by Affordable Housing and Community Development Investment Program. SEC. 3. Part 4 (commencing with Section 55900) is added to Division 2 of Title 5 of the Government Code, to read: PART 4. Affordable Housing and Community Development Investment Program 55900. This part is known and may be cited as the Affordable Housing and Community Development Investment Program. 55901. The Affordable Housing and Community Development Investment Program is hereby established to create a local-state ·partnership to reduce poverty and advance other state priorities financed, in part, by property tax increment. 55902. As used in this part, the following terms have the following meanings: (a) "Affordable housing and community development investment amount" is the amount of property tax revenue allocated pursuant to Section 97.68.1 of the Revenue and Taxation Code. (b) "Applicant" means any entity identified in paragraph (a) of Section 55905 that has submitted an application a plan to the committee pursuant to that section. (c) "Committee" means the Affordable Housing and Community Development Investment Committee established by Section 55904. (d) "Plan" means an application for one or more projects that is submitted to the committee. (e) "Program" means the Affordable Housing and Community Development Investment Program established by this part. (f) "Project" shall include: (1) A project undertaken by a city, county, city or county, joint powers authority, enhanced infrastructure financing district, affordable housing authority, community revitalization and investment authority, or a transit village development district. (2) A transit priority project that meets the requirements of subd ivision (d) of section 65470. (g) "Skilled and trained workforce" has the same meaning as set forth in Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code. (h) "Transit Priority Project Program" has the same meaning as contained in Section 65470. 55903. (a) Funding allocated to the program shall be used to support a plan that includes affordable housing. Eligible uses of this funding include: https ://leginf o .legislature.ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200SB 5 4/5/2019 April 16, 2019 Item #5 Page 48 of 145 Bill Text -SB-5 Affordable Housing and Community Development Investment Program. Page 5 of 11 (1) Construction of affordable housing. For purposes of this section, the term "affordable housing" means housing affordable to households earning under 120 percent of area median income. (2) Transit-oriented development in priority locations that maximize density and transit use, and contribute to the reduction of vehicle miles traveled and greenhouse gas emissions. Fiscal incentives shall be offered to offset local community impacts associated with greater densities. (3) Infill development and equity by rehabilitating, maintaining, and improving existing infrastructure that supports infill development and appropriate reuse and redevelopment of previously developed, underutilized land that is presently served by transit, street, water, sewer, and other essential services, particularly in underserved areas, and to preserving cultural and historic resources. (4) Promoting strong neighborhoods through support of local community planning and engagement efforts to revitalize and restore neighborhoods, including repairing infrastructure and parks, rehabilitating and building housing, promoting public-private partnerships, supporting small businesses and job growth for affected residents. (5) Protecting communities dealing with the effects of sea level rise, which is one of the most significant threats of climate change, including the construction, repair, replacement, and maintenance infrastructure related to protecting communities from sea level rise. (6) The acquisition, construction, or rehabilitation of land or property pursuant to eligible uses of funding specified in paragraphs (1) to (5), inclusive. (b) At least 50 percent of the funding provided pursuant to the program and at least 50 percent of the funding of each project included in the plan shall be allocated according to paragraph (1) of subdivision (a). (c) (1) Except as provided in paragraph (2), any plan approved pursuant to the program shall be subject to a recorded affordability restriction that requires the project or projects to include a minimum of 30 percent of the total number of housing units to be available at an affordable rent or affordable housing cost to, and occupied by, households earning below 120 percent of the area median income for at least 55 years. (2) If the local agency has adopted a local ordinance that requires that greater than 30 percent of the units in a project be dedicated to housing affordable to households making below 120 percent of the area median income, that ordinance shall apply. (d) The affordable housing and community development investment amount shall not be used to subsidize the construction of market rate units. It is the intent of the Legislature to preserve the incentives for affordable housing provided by existing density bonus law. (e) (1) At least 12, percent of the overall funding for the program shall be set aside for counties with populations of less than 200,000. Of this amount, 2 percent shall be set aside to provide technical assistance for counties with populations of less than 200,000, which shall not be considered administrative costs for purposes of a plan. (2) Notwithstanding subdivision (a) of Section 55906, to the extent that all funds set aside in one year for counties with populations of less than 200,000 are not dedicated to plans approved by the committee, the amount of funds not dedicated shall be available to counties with populations of less than 200,000 residents in the following year pursuant to this program. (f) All projects approved pursuant to the program shall be considered public work for purposes of Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code. 55904. (a) The Affordable Housing and Community Development Investment Committee is .hereby established and shall be comprised of the following: (1) The Chair of the Strategic Growth Council, or the chair's designee. (2) The Chair of the California Infrastructure and Economic Development Bank, or the chair's designee. (3) The Chair of California Workforce Investment Board, or the chair's designee. (4) The Director of Housing and Community Development, or the director's designee. (5) Two people appointed by the Speaker of the Assembly. (6) Two people appointed by the Senate Committee on Rules. https:/ /leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200SB5 4/5/2019 April 16, 2019 Item #5 Page 49 of 145 Bill Text -SB-5 Affordable Housing and Community Development Investment Program. Page 6 of 11 (7) One public member appointed by the Joint Legislative Budget Committee who has expertise in education finance. (b) The committee shall review and approve or deny applications plans received pursuant to Section 55905. (c) The Department of Housing and Community Development shall provide the technical assistance and administrative support necessary for the committee to consider ap13lications. plans. 55905. (a) An a1313lication ,1 plan for the affordable housing and community development investment amount may be submitted by any of the following: (1) A city, county, or city and county. (2) A joint powers authority formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 that is composed of entities that may submit an a1313lication a plan pursuant to this subdivision. (3) An enhanced infrastructure financing district established pursuant to Chapter 2.99 (commencing with Section 53398.50) of Part 1 of Division 2 of Title 5. (4) An affordable housing authority established pursuant to Division 5 (commencing with Section 62250) of Title 6. (5) A community revitalization and investment authority established pursuant to Division 4 (commencing with Section 62000) of Title 6. (6) A transit village development district established pursuant to Article 8.5 (commencing with Section 65460) of Chapter 3 of Division 1 of Title 7. (b) A plan to participate in the program may be submitted to the committee and shall include all of the following information: (1) A description of the proposed project or projects to be completed by the applicant pursuant to the plan and the funding amount necessary for each year the applicant requests funding pursuant to the program. The applicant may request funding for no more than 30 years for each project included in the plan. (2) Information necessary to demonstrate that each project proposed by the plan complies with all of the statutory requirements of any statutory authorization pursuant to which the project is proposed. (3) Certification that any low-and moderate-income housing or other projects or portions of other projects that receive funding from the program will comply with paragraph (8) of subdivision (a) of Section 65913.4. (4) A strategy for outreach to, and retention of, women, minority, disadvantaged youth, formerly incarcerated, and other underrepresented subgroups in coordination with the California Workforce Investment Board and local boards, to increase their representation and employment opportunities in the building and construction trades. (5) For each project identified in the plan, a requirement that no eviction has been made on any project site within the last 10 years, and protections to avoid displacement of individuals affected by the project. (6) A requirement that any project included in the plan would not require the demolition of any of the following types of housing: (A) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (B) Housing that is subject to any form of rent or price control through a public entity's valid exercise of its police power. (C) Housing that has been occupied by tenants within the past 10 years. (7) A requirement that the site was not previously used for housing that was occupied by tenants that was demolished within 10 years before the applicant submits a plan pursuant to this section. (8) A requirement that the development of the project or projects included in the plan would not require the demolition of a historic structure that was placed on a national, state, or local historic register. (9) A requirement that the project or projects included in the plan would not contain present or former tenant- occupied housing units that are will be or were, subsequently offered for sale to the general public by the subdivider or subsequent owner of the property. https ://leginfo.legislature.ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200SB 5 4/5/2019 April 16, 2019 Item #5 Page 50 of 145 Bill Text -SB-5 Affordable Housing and Community Development Investment Program. Page 7 of 11 (10) An economic and fiscal analysis, paid for by the applicant and prepared by the applicant or an individual or entity approved by the committee that includes the following information as it pertains to the plan: (A) The estimated cost of providing services or facilities for each project included in the plan. (B) The estimated revenue available to provide services or facilities by each project included in the plan. (C) Identification of the taxing entities that are participating in the financing of each project included in the plan through the pledge of an amount equal to the entity's incremental share of the property tax or other means. (D) Identification of the property tax, sales tax, and other public funding available to invest in each project included in the plan or the services or facilities needed by each project included in the plan, as proposed. proposed, including, but not limited to, information from the county auditor describing how the county or counties where the applicant is from has historically distributed its educational revenue augmentation fund revenue to schools and local agencies. (E) Identification of the funding and financing methods that will be used by each project included in the plan, including whether the applicant intends to issue bonds that will be repaid from property tax increment. (F) The affordable housing and community development investment amount requested by the applicant to complete each project included in the plan or the services or facilities needed by each project included in the plan, as proposed, and the proposed date on which the annual allocation of the affordable housing and community development investment amount will terminate. (G) The amount of administrative costs associated with the plan. The plan may set aside not more than 5 percent of the total affordable housing and community development investment amount requested in the plan for administrative costs. (c) (1) The applicant shall certify that a skilled and trained workforce will be used to complete the project if the applicatioR plan is approved. (2) If the applicant has certified that a skilled and trained workforce will be used to complete the project or projects and the plan is approved, the following shall apply: (A) The applicant shall require every contractor and subcontractor at every tier performing work on the project to provide the applicant with an enforceable commitment that the contractor or subcontractor will individually use a skilled and trained workforce to complete the project. (B) Every contractor and subcontractor shall individually use a skilled and trained workforce to complete the project. (C) The applicant shall be considered an awarding body for purposes of Section 2602 of the Public Contract Code. (3) This subdivision shall not apply to projects that meet the following criteria __ . (d) (1) Within 30 days of receipt of aR applicatioR a plan pursuant to this section, the committee shall provide the applicant with a written statement identifying any questions about the applicatioR. plan. (2) If the committee denies approval of the plan, the committee shall, not more than 30 days following the date the committee has issued a decision, provide the applicant with a written statement explaining the reasons why the plan was denied. (3) The committee shall develop a rubric to determine which plan to approve. The rubric shall give priority to plans based on, but not limited to, the following factors: (A) The number of housing units created. (B) The share of housing units to be constructed that are available to individuals with an area median income below 120 percent. (C) The share of housing units to be constructed that are available to individuals with an area median income below 80 percent. (D) The share of housing units to be constructed that are available to individuals with an area median income below 50 percent. (E) The level of local, state, and federal funds that will be dedicated toward the projects included in the plan, including but not limited to tax credits, in-kind transfers, personnel costs and services, and land. https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_ id=201920200SB5 4/5/2019 April 16, 2019 Item #5 Page 51 of 145 Bill Text -SB-5 Affordable Housing and Community Development Investment Program. Page 8 of 11 (F) Whether the applicant adopts plans that streamline development including those adopted through a Workforce Housing Opportunity Zone (Article 10.10 (commencing with Section 65620) of Chapter 3 of Division 1 of Title 7), a Housing Sustainability District (Chapter 11 (commencing with Section 66200) of Division 1 of Title 7), or plans to streamline development funded by the Building Homes and Jobs Act (Chapter 2.5 (commencing with Section 50470) of Part 2 of Division 31 of the Health and Safety Code). 55906. (a) The committee shall adopt annual priorities consistent with the objectives set forth in Section 55903 and shall adhere to the following funding schedule: (1) For the five-year period commencing July 1, 2020, and ending June 30, 2025, the committee may approve no more than two hundred million dollars ($200,000,000) in funding in any year for plans approved pursuant to the .program. (2) For the four-year period commencing July 1, 2025, and ending June 30, 2029, the committee may approve no more than two hundred fi~y million dollars ($250,000,000) in funding in any year for plans approved pursuant to the program. (3) The Legislature may direct the committee to suspend consideration of applications plans submitted pursuant to Section 55903 in any fiscal year in which the Legislature passes a bill described in Section 22 of Article XVI of the California Constitution. Nothing in this paragraph shall affect or have any financial impact upon previously approved funding pursuant to this program. (4) The Legislature may direct the committee to suspend consideration of plans submitted pursuant to Section 55903 in any fiscal year in which the Legislature passes a bill described in Section 8 of Article XVI of the California Constitution. Nothing in this paragraph shall affect or have any financial impact upon previously approved funding pursuant to this program. (b) The annual amounts dedicated to individual approved projects shall be allocated based on the schedule of funding included in the plan that includes the project, unless the committee decides to allocate a different level ·of funding or change the number of years that the project is to receive funding pursuant to the program in accordance with the plan approved pursuant to subdivision (d). (c) The committee shall adopt guidelines to explain how geographic equity will be maintained in the approval of plans pursuant to this program. (d) (1) The committee shall approve or deny a plan submitted pursuant to Section 55905 upon both of the following: (A) Receipt of the information required to be submitted pursuant to paragraphs (1) through (4) of subdivision (b) of Section 55905. (B) A determination that the affordable housing and community development investment amount requested is consistent with the guidelines adopted pursuant to subdivision (b). (2) The approval shall state the amount of the affordable housing and community development investment amount approved and the date upon which the affordable housing and community development investment amount terminates. (e) The committee may require the applicant to reimburse it for the reasonable cost incurred to review the plan to participate in the program. (f) The committee shall review, and may approve or deny, any changes to a plan submitted by the applicant. 55907. (a) Upon approval of a plan pursuant to subdivision (d) of Section 55906, the committee shall issue an order directing the county auditor to reduce the amount of ad valorem property tax revenue pursuant to Section 97.68.1 of the Revenue and Taxation Code by the annual affordable housing and community development investment amount approved by the committee. (b) The revenues allocated to an applicant pursuant to Section 97.68.1 of the Revenue and Taxation Code may be used for the purposes set forth in Section 55903. (c) The applicant may use the additional revenue received pursuant to Section 97.68.1 of the Revenue and Taxation Code to incur debt or issue bonds or other financing to support the project or projects included in the plan. https ://leginfo .legislature.ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200SB 5 4/5/2019 April 16, 2019 Item #5 Page 52 of 145 Bill Text -SB-5 Affordable Housing and Community Development Investment Program. Page 9 of 11 55908. (a) On or before July 1, 2021, and annually thereafter, each applicant that has received financing pursuant to the program for any fiscal year shall provide a report to the committee that includes all of the following information for the previous fiscal year: (1) The affordable housing and community development investment amount that the county auditor reallocated to the applicant pursuant to Section 97.68.1 of the Revenue and Taxation Code. (2) The purposes for which that reallocated money was used, including t:he number of housing units constructed and at which income level. (3) The actions taken during the prior fiscal year to implement the project. (4) The total amount of funds expended for planning and general administrative costs. (b) Notwithstanding Section 10231.5, on or before March 1, 2020, and annually thereafter, the committee shall provide a report to the Joint Legislative Budget Committee that includes all of the following information for the preceding fiscal year: (1) The name, location, and general description, including the number of housing units constructed and at which income level, of each project that received an affordable housing and community development investment amount pursuant to this program. (2) The total amount of money that county auditors reallocated from affordable housing and community development investment funds pursuant to the program in the previous fiscal year. (3) An evaluation of the value of the state's investment through the funding provided by this program as measured by a net revenue increase to the General Fund and progress towards achieving the purposes and intent of the program. (c) The committee shall develop a corrective action plan for noncompliance with the requirement of this part. 55909. (a) If, based on annual reports submitted to the committee pursuant to Section 55908, the committee determines that any of the following has occurred, the committee shall direct the applicant to develop a corrective action plan based on recommendations made by the committee: (1) The applicant is not on track to produce the number of housing units included in the plan. (2) The applicant is not on track to spend at least 50 percent of plan funds on affordable housing. (3) The applicant is on track to exceed 5 percent of the administrative limit. (4) The applicant is found to have used funding provided by the program for purposes not authorized by the act. (5) The applicant is found to have used funds to subsidize market rate housing. (6) The applicant has violated antidisplacement provisions pursuant to paragraph (6), (7), (8), or (9) of subdivision (a) of Section 55905. (7) The applicant is not on track to complete all of the projects included in the plan according to the timeline included in the plan . (b) The applicant shall have one year from the date that the committee directed the applicant to develop a corrective action plan . (c) The committee shall issue a finding that the applicant is out of compliance with the program if the committee finds either of the following apply: (1) The applicant has not provided an adequate corrective action plan to the committee within one year of the date the committee directed the applicant to develop a corrective action plan. (2) The annual report provided to the committee pursuant to Section 55908 does not demonstrate that the applicant has taken adequate steps to implement the corrective action plan that was provided to the committee within one year of the date the committee directed the applicant to develop a corrective action plan. (d) If the committee finds that the applicant is out of compliance with the program, the committee shall direct the auditor to stop reducing ERAF contributions approved pursuant to the program under Section 97.68.1 of the Revenue and Taxation Code, and prohibit the applicant from applying for additional funds for this program for a period of five yea rs. https ://leginf o .legislature.ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200SB 5 4/5/2019 April 16, 2019 Item #5 Page 53 of 145 Bill Text -SB-5 Affordable Housing and Community Development Investment Program. Page 10 of 11 (e) If an applicant is found to be out of compliance with the program, the applicant shall be ineligible to apply for other state grant programs for a period of five years. SEC. 4. Section 97.68.1 is added to the Revenue and Taxation Code, to read: 97.68.1. Notwithstanding any other provision of law, for each fiscal year for which funding for a plan for the county is approved under Part 4 (commencing with Section 55900) of Division 2 of Title 5 of the Government Code, in allocating ad valorem property tax re•,<enue revenue, all of the following shall apply: (a) fBThe auditor shall reduce the total amount of ad valorem property tax revenue otherwise required to be allocated to a county's Educational Revenue Augmentation Fund by the countywide affordable housing and community development investment amount. (2)In the case of a 13lan that includes an enhanced infrastructure financing district, affordal31e housing authority, transit village develo13Rwnt district, or community revitaliration investment authority, the auditor shall reduce the total amount of ad valorem 13ro13erty tal< revenue otherwise required to 13e allocated to a county's Educational Revenue /\ugmentation Fund from the city or county that created the authorit'I or district in an amount 13ro13ortional to the local go·,•ernment's contril3ution to that district or authority tiy the countywide affordal31e housing and cornmunity develo13ment investment arnount. (b) (1) The auditor shall allocate the funds as directed 13y the committee to the a13131icant in a se13arate fund that shall, except as provided in paragraph (2), deposit the countywide affordable housing and community development investment amount into the Affordable Housing and Community Development Investment Fund, which shall be established in the treasury of each county. Moneys in the Affordable Housing and Community Development Investment Fund shall only be used for plans approved pursuant to Part 4 (commencing with Section 55900) of Division 2 of Title 5 of the Government~ Code, and shall.be allocated to the applicant as directed by the committee. (2) In the case of an applicant that is an enhanced infrastructure financing district, affordable housing authority, community revitalization investment authority, or transit village development district, the auditor shall allocate an amount equal to the enhanced infrastructure financing district's, affordable housing authority's, community revitalization investment authority's, or transit village development district's affordable housing and community development investment amount to the city or county that created the enhanced infrastructure financing district, affordable housing authority, community revitalization investment authority, or transit village development district. The city or county shall, upon receipt, transfer those funds to that enhanced infrastructure financing district, affordable housing authority, community revitalization investment authority, or transit village development district, in an amount equal to the affordable housing and community development investment amount for that enhanced infrastructure financing district, affordable housing authority, community revitalization investment authority, or transit village development district. (3) The auditor shall allocate one-half of an amount specified in paragraph (1) or (2) on or before January 31 of each fiscal year, and the other one-half on or before May 31 of each fiscal year. (c) For purposes of this section, all of the following shall apply: (1) "Affordable housing and community development investment amount" for a particular city, county, or city and county means the amount approved by the Affordable Housing and Community Development Committee pursuant to Part 4 (commencing with Section 55900) of Division 2 of Title 5 of the Government Code. (2) "Countywide affordable housing and community development investment amount" means, for any fiscal year, the total sum of the amounts described in paragraph (1) for a county or a city and county, and each city and county. (d) This section shall not be construed to do any of the following: (1) Reduce any allocations of excess, additional, or remaining funds that would otherwise have been allocated to county superintendents of schools, cities, counties, and cities and counties pursuant to clause (i) of subparagraph (B) of paragraph (4) of subdivision (d) of Sections 97.2 and 97.3 or Article 4 (commencing with Section 98) had this section not been enacted. The allocations required by this section shall be adjusted to comply with this paragraph .. (2) Require an increased ad valorem property tax revenue allocation or increased tax increment allocation to a community redevelopment agency. https:/ /leginf o .legislature.ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200SB 5 4/5/2019 April 16, 2019 Item #5 Page 54 of 145 Bill Text -SB-5 Affordable Housing and Community Development Investment Program. Page 11 of 11 (3) Alter the manner in which ad valorem property tax revenue growth from fiscal year to fiscal year is otherwise determined or allocated in a county. (4) Reduce ad valorem property tax revenue allocations required under Article 4 (commencing with Section 98). (e) If, for the fiscal year, after complying with Section 97.68, there is not enough ad valorem property tax revenue that is otherwise required to be allocated to a county Educational Revenue Augmentation Fund for the auditor to complete the allocation reduction required by subdivision (a), the auditor shall additionally reduce the total amount of ad valorem property tax revenue that is otherwise required to be allocated to all school districts and community college districts in the county for that fiscal year by an amount equal to the difference between the countywide affordable housing and community development investment amount and the amount of ad valorem property tax revenue that is otherwise required to be allocated to the county Educational Revenue Augmentation Fund for that fiscal year. This reduction for each school district and community college district in the county shall be the percentage share of the total reduction that is equal to the proportion that the total amount of ad valorem property tax revenue that is otherwise required to be allocated to the school district or community college district bears to the total amount of ad valorem property tax revenue that is otherwise required to be allocated to all school districts and community college districts in a county. For purposes of this subdivision, "school districts" and "community college districts" do not include any districts that are excess tax school entities, as defined in Section 95. (f) Any reduction in the amount of ad valorem property tax revenues deposited in the county's Educational Revenue Augmentation Fund as a result of subparagraph (A) shall be applied exclusively to reduce the amounts that are allocated from that fund to school districts and county offices of education, and shall not be applied to reduce the amounts of ad valorem property tax revenues that are otherwise required to be allocated from that fund to community college districts. (g) (1) A property tax revenue a/location reduction or property tax revenue transfer made pursuant to subdivision (a) or (b) shall not be considered for purposes of determining under Section 96.1 the amount of property tax revenue allocated to a jurisdiction in the prior fiscal year. (2) The auditor may include the cost of workload related to calculating reductions pursuant to subdivision (a) for the purposes of Section 95.3. SEC. 5. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. SEC. 6. Each provision of this act is a material and integral part of the act, and the provisions of this act are not severable. If any provision of this act or its application is held invalid, the entire act shall be null and void. https ://leginfo .legislature.ca. gov /faces/billN avClient.xhtml?bill_ id=201920200SB5 4/5/2019 April 16, 2019 Item #5 Page 55 of 145 Bill Text -SB-6 Residential development: available land. Page 2 of 2 THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 11011.8 is added to the Government Code, to read: 11011.8. (a) On or before December 31 of each year, the Department of Housing and Community Development shall furnish to the Department of General Services a list of lands suitable and available for residential development that were identified by a local government as part of the housing element of its general plan pursuant to paragraph (3) of subdivision (a) of Section 65583 and that were submitted to the Department of Housing and Community Development pursuant to Section 65585. (b) The Department of General Services shall create a database of information that was furnished to it pursuant to subdivision (a) and information regarding the state lands determined or declared excess pursuant to Section 11011. The department shall make this database available and searchable by the public by means of a link on its internet website. SECTIOPJ l.The LegislatuFe fiAdS a Ad declaFeS all ef the fellewiAg: (a)Califemia is iA the midst ef a seFieus heusiAg CFisis . A majeF facteF iA this cFisis is the state's heusiAg shertage. From 195~ te 1989, iAclusive, Califemia ceAStFUcted aA avernge ef mere thaA 200,000 Aew hemes aAAuall'f'. SiAce theA, hewe~·eF, ceAStFUctieA has drepped sigAificaAtly. The DepartmeAt ef HeusiAg aAd CemmuAit't DevelopmeAt (HCD) estimates that apprmcimatel'f' 1.8 millieA Aew housiAg uAits, 180,000 Aew hemes per year, are Reeded te meet the state's prejected pepulatieA aAd heusiAg growth by 2025. EveA wheA heusiAg productieA rose iA the mid 2000s, it AeveF Feached the 180,000 maFI<, aAd e·v'eF the last 10 yeaFs ceAstructieA averaged just 80,000 Aew hemes per .,.ear. (b)Califemia's heusiAg sheFtage dispropertieAally impacts !ewer iAceme families. AccerdiAg to the NatieAal Low IAceme HeusiAg CealitieA, while Reeds vaFy b'f' FegieA, California has a statewide suFplus ef above mederate market rnte heusiAg (abeut 300,000), but suffers a shertfall ef abeut 1.5 millieA uAits fer extremely lew aAd very lew iAcome heuseholds (these heuseholds at OF below 50 perceAt of area mediaA iAcome). As a result, HCD estimates that appreximately 2.7 millioA loweF iAcome households aFe FeAt buFdeAed (meaAiAg they speAd at least 30 perceAt of their iAcome oA reAt), 1.7 millioA of which are se·v'eFely reAt burdeAed (speAdiAg at least 50 · peFceAt ef theiF iAceme DA re At). (c)The lack of affeFdable housiAg also woFIEs agaiAst the state's eAviFDAmeAtal goals, as people "dFive uAtil they qualify," ·.vhich results iA leAger commutes to the workplace wheA people seek housiAg that they caA afford. (d)While a CFitical cempeAeAt te aA evernll selutioA, fuAdiAg feF housiAg aloAe caAAot selve the statewide housiAg CFisis. Califemia Reeds additioAal subsidi2ed aAd uAsubsidi2ed housiAg to FeiA its housiAg pFices iA the loAg term. (e)A variety ef causes have cMtributed te the laclE ef heusiAg productieA. ReceAt reperts by the Legislative AAal.,.st's Office a Ad others poiAt to local approval processes as a major factoF. They argue that local govemmeAts coAtrol mest ef the decisioAs about whCFe, wheA, aAd hew te build Aew housiAg, aAd those govemmeAts are quiclc to respoAd te vocal cemmuAity membeFs that may Aet waAt Aew Aeighbors. These issues pose challeAges to coAstFUctiAg maFl<et Fate aAd affeFdable heusiAg develepmeAts alike. (f)ThCFefere, the LegislatuFe iAteAds te eAact state wide pelicy chaAges that weuld help eAceurage heusiAg productioA, iAcludiAg streamliAiAg approval processes, ideAtifyiAg sufficieAt aAd adequate sites fer housiAg ceAstFUctieA, aAd peAaliz'iAg lecal decisieAmakiAg aAd plaAAiAg that Festricts heusiAg productieA. https ://leginfo .legislature.ca. gov /faces/billN avClient.xhtml ?bill _id=201920200SB6 4/5/2019 April 16, 2019 Item #5 Page 58 of 145 J Statewide, California's businesses have created 4.5 jobs for every new housing unit; according to the Building Industry Association, the ideal ratio is 1.5 jobs per housing unit. According to the Department of Housing and Community Development: "Land use policies and planning can help encourage greater supply and affordability, as well as influence the type and location of housing. Thoughtful land use policies and planning can translate into the ability for families to access neighborhoods of opportunity, with high-performing schools, greater availability of jobs that afford entry to the middle-class, and convenient. access to transit and services. Easy access to jobs and amenities reduces a household's daily commute and other travel demands. Encouraging new homes in already developed areas and areas of opportunity not oruy alleviates the housing crisis, but also supports the State's climate change and equity goals." SOLUTION While the housing shortage is chronic across most California jurisdictions, there are several examples of cities taking the lead on reforms that help alleviate the crisis by encouraging infill housing near transit, job, and educational opportunities. These include Los Angeles, which authorized creation of the Transit Oriented Communities (TOC) program in 2017. The measure created powerful incentives for affordable housing near Metro subway stops and bus services through modifications to the zoning code; as projects move closer to high-quality transit, they are required to increase the amount of affordable housing. Oakland's experience also offers a positive vision for future housing growth. In 2016, the city eliminated minimum parking requirements, drastically reducing the cost of new housing construction while encouraging new developments on . high-quality transit corridors. The changes to the city's zoning and development standards have resulted in a mini-boom of walkable, transit-oriented apartments near BART and AC Transit bus stations, and within a short distance from the city's primary job locations. Senate Bill 50 integrates lessons learned from cities like Los Angeles and Oakland to expand the benefits of affordable, ,transit- rich and job-rich housing across the state. The bill will give cities new tools to provide relief to rent-burdened workers and families while reversing the growing, and alarming, trends of homelessness, displacement, and migration out of California. State Minimums, More Housing Choices: The bill waives apartment bans near high-quality transit and in job-rich areas to ensure that the benefits of public investments in transportation are broadly accessible to Californians of all incomes. The bill also includes specific requirements to provide low-income housing in new development to ensure that market-rate construction is always coupled with affordable units for the lowest income Californians. SB 50 applies to sites that are either within ½ mile of high-quality public transportation, or within a job- rich, high-opportunity neighborhood. Under SB 50, a local government will be allowed to approve higher- density housing with no parking requirements, provided the site is adjacent to transit, or reduced parking requirements in areas close to jobs and high- quality schools. Height limits for new housing with close, walkable access to rail or connected transit will be loosened to encourage mid-rise, apartment-style housing construction. For example, in areas close to rail or transit-connected ferry service, a local government may allow buildings of up to 4-5 stories, depending on the distance from transit. · Preservation of Local Control: Under the legislation, all housing projects will still be subject to environmental review (the California Environmental Quality Act), and must follow existing labor and . employment standards for new construction. Local development fees, community engagement processes, and architectural design review for each housing development will remain as- is. Additionally: • Anti-demolition: A local · government retains existing authority to ban, prohibit, or restrict demolition of existing housing, consistent with the Housing Accountability Act. At a minimum, a local government may not issue demolition permits for housing currently or recently occupied by renters. • Local affordable housing policy: If a local government requires more affordable housing than what is required in SB 50, that policy will be honored in new developments. • Neighborhood height limits: A local government retains authority to set or maintain local height limits for new housing in areas without easy access to rail transit. • Local initiatives to encourage TOD: If a community has a successful, preexisting, program to encourage apartments near public transportation, such as the TOC program in Los Angeles, then properties eligible for that incentive will be ineligible for this program. More HOMES Act of 2019 Fact Sheet-Updated 3.14.2019 April 16, 2019 Item #5 Page 60 of 145 Key provisions for renters and sensitive communities: SB 50 includes the following provisions: • • • • • • • • • • • • • • • • • • • • Tenant Protections: Establishes strict tenant protections to ensure long-time residents will not be displaced from their communities, including a prohibition on demolishing buildings currently or recently occupied by renters. Affordable Housing: Establishes a requirement that every new housing development larger than 20 units must include a significant number of housing units affordable to for low, very low, or extremely low-income households, ensuring affordable housing will be built for people of all income levels. Each project must designate 15-25% of the total units to low-income families, or designate an equivalent amount for very low- or extremely low-income families. Sensitive Communities: Allows for delayed implementation in sensitive communities at risk of gentrification and displacement, q11d grants five years for a community-led planning process in these neighborhoods. Job-Rich Communities: Proposes a new "job-rich housing project~ designation to ensure that high-opportunity communities with easy access to jobs allow a broader range of multifamily housing choices for people of all income levels, even in the absence of high- quality transit .. CO-AUTIIORS Sen. Anna Caballero CD-Salinas) Sen. Ben Hueso (D-San Diego) Sen. John Moorlach (R-Costa Mesa) Sen. Nancy Skinner CD-Berkeley) Sen. Jeff Stone CR-Temecula) Asm. Autumn Burke (D-Marina Del Rey) Asm. Kansen Chu (D-San Jose) Asm. Tyler Diep CR-Westminster) Asm. Vince Fong CR-Bakersfield) Asm. Ash Kalra (D-San Jose) Asm. Kevin Kiley CR-Rocklin) Asm. Evan Low CD-Campbell) Asm. Kevin McCarty CD-Sacramento) Asm. Robert Rivas CD-Hollister) Asm. Phil Ting (D-San Francisco) Asm. Buffy Wicks CD-Oakland) SPONSORS/SUPPORT • California Yimby (Co-Sponsor) • Non-Profit Housing (NPH) Association of Northern California (Co-Sponsor) • Abundant Housing Los Angeles • American Association of Retired Persons - (AARP) • Bay Area Council • Bay Area Housing Advocacy Coalition • Bay Area Rapid Transit (BART) • Black American Political Association of California (BAP AC) -Sacramento Chapter • California Apartment Association • California Asian Pacific Islander Chamber of Commerce • California Association of Realtors • California Foundation of Independent Living Centers • California League of Conservation Voters (CLCV) • California Public Interest Research Group (CalPIRG) • California Renters Legal Advocacy and Education Fund (CaRLA) • City and County of San Francisco, Mayor London Breed • City,of Campbell, Councilmember Jeffrey R. Cristina • City of El Cerrito, Mayor Gabe Quinto • City of Emeryville Councilmember Dianne Martinez • City of Emeryville, Councilmember John Banters • City of Fairfield, Vice Mayor Chuck Timm • City of Foster City, Councilmember Herb Perez • <:;ity of Half Moon Bay, Mayor Deborah Penrose • City of Healdsburg, Mayor David Hagele • City of Los Gatos, Councilmember Rob Rennie • City of Milpitas, Vice Mayor Marsha Grilli • City of Oakland, Mayor Libby Schaaf · • City of Palo Alto, Councilmember Adrian Fine • City of Pinole, Councilmember Vincent Salimi • City of Sacramento, Mayor Darrell Steinberg • City of San Jose, Mayor Sam Liccardo • City of South San Francisco, Mayor Pradeep Gupta • City of Stockton, Mayor Michael Tubbs • City of Woodland, Mayor Enrique Fernandez • Council of Infill Builders • East Bay for Everyone • Environment California • Grow The Richmond • Habitat for Humanity More HOMES Act of 2019 Fact Sheet-Updated 3.14.2019 April 16, 2019 Item #5 Page 61 of 145 • Los Angeles Business Council • Los Angeles Chamber of Commerce . • Mission YIMBY • Natural Resources Defense Council (NRDC) • Northern Neighbors • People for Housing -Orange County Yim by • Progress Noe Valley • San Francisco Housing Action Coalition • San Francisco Planning and Urban Research (SPUR) • Santa Cruz Yimby • Silicon Valley Community Foundation • Silicon Valley Leadership Group • South Bay Yimby • State Building and Construction Trades Council, AFL~CIO • Supervisor David Canepa, San Mateo County • Supervisor Don Horsley, San Mateo County • Supervisor Jim Spering, Solano County • Supervisor Michael Kelley, Imperial County • Supervisor Miguel Villapudua, San Joaquin County • Up For Growth, California • Valley Industry Commerce Association • YIMBY Action FOR MORE INFORMATION Annie Fryman, Legislative Aide Email: ann.fryman@sen.ca.gov Phone: (916) 651-4011 More HOMES Act of 2019 Fact Sheet-Updated 3.14.2019 April 16, 2019 Item #5 Page 62 of 145 Bill Text -SB-50 Planning and zoning: housing development: incentives. Page 2 of 13 The bill would include findings that the changes proposed by tl'lis sill these provisions address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. The bill would also declare tl'le intent of tl'le Legislature to delay implementation of----tflis---aH! these provisions in sensitive communities, as defined, until July 1, 2020, as provided. By adding to the duties of local planning officials, this bill would impose a state-mandated loca l program. The Housing Accountability Act 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 or an emergency shelter unless the local agency makes specified written findings based on a preponderance of the evidence in the record. That law provides that the receipt of a density bonus is not a valid basis on which to find a proposed housing development is inconsistent, not in compliance, or not in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision of that act. This bill would additionally provide that the receipt of an equitable communities incentive is not a valid basis on which to find a proposed housing development is inconsistent, not in compliance, or not in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision of that act. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 65589.5 of the Government Code is amended to read: 65589.5. (a) (1) The Legislature finds and declares all of the following: (A) The lack of housing, including emergency shelters, is a critical problem that threatens the economic, environmental, and social quality of life in California. (B) California housing has become the most expensive in the nation. The excessive cost of the state's housing supply is partially caused by activities and policies of many local governments that limit the approval of housing, increase the cost of land for housing, and require that high fees and exactions be paid by producers of housing. (C) Among the consequences of those actions are discrimination against low-income and minority households, lack of housing to support employment growth, imbalance in jobs and housing, reduced mobility, urban sprawl, excessive commuting, and air quality deterioration. (D) Many local governments do not give adequate attention to the economic, environmental, and social costs of decisions that result in disapproval of housing development projects, reduction in density of housing projects, and excessive standards for housing development projects. (2) In enacting the amendments made to this section by the act adding this paragraph, the Legislature further finds and declares the following: (A) California has a housing supply and affordability crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the state's environmental and climate objectives. (B) While the causes of this crisis are multiple and complex, the absence of meaningful and effective policy reforms to significantly enhance the approval and supply of housing affordable to Californians of all incom_e levels is a key factor. (C) The crisis has grown so acute in California that supply, demand, and affordability fundamentals are characterized in the negative: underserved demands, constrained supply, and protracted unaffordability. (D) According to reports and data, California has accumulated an unmet housing backlog of nearly 2,000,000 units and must provide for at least 180,000 new units annually to keep pace with growth through 2025. https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200SB50 4/5/2019 April 16, 2019 Item #5 Page 64 of 145 Bill Text -SB-50 Planning and zoning: housing development: incentives. Page 3 of 13 (E) California's overall homeownership rate is at its lowest level since the 1940s. The state ranks 49th out of the 50 states in homeownership rates as well as in the supply of housing per capita. Only one-half of California's households are able to afford the cost of housing in their local regions. (F) Lack of supply and rising costs are compounding inequality and limiting advancement opportunities for many Californians. (G) The majority of California renters, more than 3,000,000 households, pay more than 30 percent of their income toward rent and nearly one-third, more than 1,500,000 households, pay more than 50 percent of their income toward rent. (H) When Californians have access to safe and affordable housing, they have more money for food and health care; they are less likely to become homeless and in need of government-subsidized services; their children do better in school; and businesses have an easier time recruiting and retaining employees. (I) An additional consequence of the state's cumulative housing shortage is a significant increase in greenhouse gas emissions caused by the displacement and redirection of populations to states with greater housing opportunities, particularly working-and middle-class households. California's cumulative housing shortfall therefore has not only national but international environmental consequences. (J) California's housing picture has reached a crisis of historic proportions despite the fact that, for decades, the Legislature has enacted numerous statutes intended to significantly increase the approval, development, and affordability of housing for all income levels, including this section. (K) The Legislature's intent in enacting this section in 1982 and in expanding its provisions since then was to significantly increase the approval and construction of new housing for all economic segments of California's communities by meaningfully and effectively curbing the capability of local governments to deny, reduce the density for, or render infeasible housing development projects and emergency shelters. That intent has not been fulfilled. (L) It is the policy of the state that this section should be interpreted and implemented in a manner to afford the fullest possible weight to the interest of, and the approval and provision of, housing. (3) It is the intent of the Legislature that the conditions that would have a specific, adverse impact upon the public health and safety, as described in paragraph (2) of subdivision (d) and paragraph (1) of subdivision (j), arise infrequently. (b) It is the policy of the state that a local government not reject or make infeasible housing development projects, including emergency shelters, that contribute to meeting the need determined pursuant to this article without a thorough analysis of the economic, social, and environmental effects of the action and without complying with subdivision (d). (c) The Legislature also recognizes that premature and unnecessary development of agricultural lands for urban uses continues to have adverse effects on the availability of those lands for food and fiber production and on the economy of the state. Furthermore, it is the policy of the state that development should be guided away from prime agricultural lands; therefore, in implementing this section, local jurisdictions should encourage, to the maximum extent practicable, in filling existing urban areas. (d) A local agency shall not disapprove a housing development project, including farmworker housing as defined in subdivision (h) of Section 50199. 7 of the Health and Safety Code, for very low, low-, or moderate-income households, or an emergency shelter, or condition approval in a manner that renders the housing development project infeasible for development for the use of very low, low-, or moderate-income households, or an emergency shelter, including through the use of design review standards, unless it makes written findings, based upon a preponderance of the evidence in the record, as to one of the following: (1) The jurisdiction has adopted a housing element pursuant to this article that has been revised in accordance with Section 65588, is in substantial compliance with this article, and the jurisdiction has met or exceeded its share of the regional housing need allocation pursuant to Section 65584 for the planning period for the income category proposed for the housing development project, provided that any disapproval or conditional approval shall not be based on any of the reasons prohibited by Section 65008. If the housing development project includes a mix of income categories, and the jurisdiction has not met or exceeded its share of the regional housing need for one or more of those categories, then this paragraph shall not be used to disapprove or conditionally approve the housing development project. The share of the regional housing need met by the jurisdiction shall be calculated consistently with the forms and definitions that may be adopted by the Department of Housing and Community Development pursuant to Section 65400. In the case of an emergency shelter, the https ://leginf o .legislature.ca. gov /faces/billN avClient.xhtrnl ?bill_ id=201920200SB5 0 4/5/2019 April 16, 2019 Item #5 Page 65 of 145 Bill Text -SB-50 Planning and zoning: housing development: incentives. Page 4 of 13 jurisdiction shall have met or exceeded the need for emergency shelter, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583. Any disapproval or conditional approval pursuant to this paragraph shall be in accordance with applicable law, rule, or standards. (2) The housing development project or emergency shelter as proposed would have a specific, adverse impact upon the public health or safety, and. there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low-and moderate-income households or rendering the development of the emergency shelter financially infeasible. As used in this paragraph, a "specific, adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. Inconsistency with the zoning ordinance or general plan land use designation shall not constitute a specific, adverse impact upon the public health or safety. (3) The denial of the housing development project or imposition of conditions is required in order to comply with specific state or federal law, and there is no feasible method to comply without rendering the development unaffordable to low-and moderate-income households or rendering the development of the emergency shelter financially infeasible. ( 4) The housing development project or emergency shelter is proposed on land zoned for agriculture or resource preservation that is surrounded on at least two sides by land being used for agricultural or resource preservation purposes, or which does not have adequate water or wastewater facilities to serve the project. (5) The housing development project or emergency shelter is inconsistent with both the jurisdiction's zoning ordinance and general plan land use designation as specified in any element of the general plan as it existed on the date the application was deemed complete, and the jurisdiction has adopted a revised housing element in accordance with Section 65588 that is in substantial compliance with this article. For purposes of this section, a change to the zoning ordinance or general plan land use designation subsequent to the date the application was deemed complete shall not constitute a valid basis to disapprove or condition approval of the housing development project or e·mergency shelter. (A) This paragraph cannot be utilized to disapprove or conditionally approve a housing development project if the housing development project is proposed on a site that is identified as suitable or available for very low, low-, or moderate-income households in the jurisdiction's housing element, and consistent with the density specified in the housing element, even though it is inconsistent with both the jurisdiction's zoning ordinance and general plan land use designation. (B) If the local agency has failed to identify in the inventory of land in its housing element sites that can be developed for housing within the planning period and are sufficient to provide for the jurisdiction's share of the regional housing need for all income levels pursuant to Section 65584, then this paragraph shall not be utilized to disapprove or conditionally approve a housing development project proposed for a site designated in any element of the general plan for residential uses or designated in any element of the general plan for commercial uses if residential uses are permitted or conditionally permitted within commercial designations. In any action in court, the burden of proof shall be on the local agency to show that its housing element does identify adequate sites with appropriate zoning and development standards and with services and facilities to accommodate the local agency's share of the regional housing need for the very low, low-, and moderate-income categories. (C) If the local agency has failed to identify a zone or zones where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit, has failed to demonstrate that the identified zone or zones include sufficient capacity to accommodate the need for emergency shelter identified in paragraph (7) of subdivision (a) of Section 65583, or has failed to demonstrate that the identified zone or zones can accommodate at least one emergency shelter, as required by paragraph (4) of subdivision (a) of Section 65583, then this paragraph shall not be utilized to disapprove or conditionally approve an emergency shelter proposed for a site designated in any element of the general plan for industrial, commercial, or multifamily residential uses. In any action in court, the burden of proof shall be on the local agency to show that its housing element does satisfy the requirements of paragraph (4) of subdivision (a) of Section 65583. (e) Nothing in this section shall be construed to relieve the local agency from complying with the congestion management program required by Chapter 2.6 (commencing with Section 65088) of Division 1 of Title 7 or the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code). Neither shall anything in this section be construed to relieve the local agency from making one or more of the findings required pursuant to Section 21081 of the Public Resources Code or otherwise complying with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). https ://leginf o .legislature.ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200SB5 0 4/5/2019 April 16, 2019 Item #5 Page 66 of 145 Bill Text -SB-50 Planning and zoning: housing development: incentives. Page 5 of 13 (f) (1) Nothing in this section shall be construed to prohibit a local agency from requiring the housing development project to comply with objective, quantifiable, written development standards, conditions, and policies appropriate to, and consistent with, meeting the jurisdiction's share of the regional housing need pursuant to Section 65584. However, the development standards, conditions, and policies shall be applied to facilitate and accommodate development at the density permitted on the site and proposed by the development. (2) Nothing in this section shall be construed to prohibit a local agency from requiring an emergency shelter project to comply with objective, qµantifiable, written development standards, conditions, and policies that are consistent with paragraph (4) of subdivision (a) of Section 65583 and appropriate to, and consistent with, meeting the jurisdiction's need for emergency shelter, as identified pursuant to paragraph (7) of subdivision (a) of Section 65583. However, the development standards, conditions, and policies shall be applied by the local agency to facilitate and accommodate the development of the emergency shelter project. (3) This section does not prohibit a local agency from imposing fees and other exactions otherwise authorized by law that are essential to provide necessary public services and facilities to the housing development project or emergency shelter. ( 4) For purposes of this section, a housing development project or emergency shelter shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision if there is substantial evidence that would allow a reasonable person to concl,ude that the housing development project or emergency shelter is consistent, compliant, or in conformity. ( g) This section shall be applicable to charter cities because the Legislature finds that the lack of housing, including emergency shelter, is a critical statewide problem. (h) The following definitions apply for the purposes of this section: (1) "Feasible" means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social, and technological factors. (2) "Housing development project" means a use consisting of any of the following: (A) Residential units only. (B) Mixed-use developments consisting of residential and nonresidential uses with at least two-thirds of the square footage designated for residential use. (C) Transitional housing or supportive housing. (3) "Housing for very low, low-, or moderate-income households" means that either (A) at least 20 percent of the total units shall be sold or rented to lower income households, as defined in Section 50079.5 of the Health and Safety Code, or (B) 100 percent of the units shall be sold or rented to persons and families of moderate income as defined in Section 50093 of the Health and Safety Code, or persons and families of middle income, as defined in Section 65008 of this code. Housing units targeted for lower income households shall be made available at a monthly housing cost that does not exceed 30 percent of 60 percent of area median income with adjustments for household size made in accordance with the adjustment factors on which the lower income eligibility limits are based. Housing units targeted for persons and families of moderate income shall be made available at a monthly housing cost that does not exceed 30 percent of 100 percent of area median income with adjustments for household size made in accordance with the adjustment factors on which the moderate-income eligibility limits are based. (4) "Area median income" means area median income as periodically established by the Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code. The developer shall provide sufficient legal commitments to ensure continued availability of units for very low or low-income households in accordance with the provisions of this subdivision for 30 years. (5) "Disapprove the housing development project" includes any instance in which a local agency does either of the following: (A) Votes on a proposed housing development project application and the application is disapproved, including any required land use approvals or entitlements necessary for the issuance of a building permit. (B) Fails to comply with the time periods specified in subdivision (a) of Section 65950. An extension of time pursuant to Article 5 (commencing with Section 65950) shall be deemed to be an extension of time pursuant to this paragraph. https ://leginf o .legislature. ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200SB5 0 4/5/2019 April 16, 2019 Item #5 Page 67 of 145 Bill Text -SB-50 Planning and zoning: housing development: incentives. Page 6 of 13 (i) If any city, county, or city and county denies approval or imposes conditions, including design changes, lower density, or a reduction of the percentage of a lot that may be occupied by a building or structure under the applicable planning and zoning in force at the time the application is deemed complete pursuant to Section 65943, that have a substantial adverse effect on the viability or affordability of a housing development for very low, low-, or moderate-income households, and the denial of the development or the imposition of conditions on the development is the subject of a court action which challenges the denial or the imposition of conditions, then the burden of proof shall be on the local legislative body to show that its decision is consistent with the findings as described in subdivision (d) and that the findings are supported by a preponderance of the evidence in the record. For purposes of this section, "lower density" includes any conditions that have the same effect or impact on the ability of the project to provide housing. (j) (1) When a proposed housing development project complies with applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the housing development project's application is determined to be complete, but the local agency proposes to disapprove the project or to impose a condition that the project be developed at a lower density, the local agency shall base its decision regarding the proposed housing development project upon written findings supported by a preponderance of the evidence on the record that both of the following conditions exist: (A) The housing development project would have a specific, adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density. As used in this paragraph, a "specific, adverse impact" means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. (B) There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to paragraph (1), other than the disapproval of the housing development project or the approval of the project upon the condition that it be developed at a lower density. (2) (A) If the local agency considers a proposed housing development project to be inconsistent, not in compliance, or not in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision as specified in this subdivision, it shall provide the applicant with written documentation identifying the provision or provisions, and an explanation of the reason or reasons it considers the housing development to be inconsistent, not in compliance, or not in conformity as follows: (i) Within 30 days of the date that the application for the housing development project is determined to be complete, if the housing development project contains 150 or fewer housing units. (ii) Within 60 days of the date that the application for the housing development project is determined to be complete, if the housing development project contains more than 150 units. (B) If the local agency fails to provide the required documentation pursuant to subparagraph (A), the housing development project shall be deemed consistent, compliant, and in conformity with the applicable plan, program, policy, ordinance, standard, requirement, or other similar provision. (3) For purposes of this section, the receipt of a density bonus pursuant to Section 65915 or an equitable communities incentive pursuant to Section 65918.51 shall not constitute a valid basis on which to find a proposed housing development project is inconsistent, not in compliance, or not ·in coAfeFmity, conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision specified in this subdivision. (4) For purposes of this section, a proposed housing development project is not inconsistent with the applicable zoning standards and criteria, and shall not require a rezoning, if the housing development project is consistent with the objective general plan standards and criteria but the zoning for the project site is inconsistent with the general plan. If the local agency has complied with paragraph (2), the local agency may require the proposed housing development project to comply with the objective standards and criteria of the zoning which is consistent with the general plan, however, the standards and criteria shall be applied_ to facilitate and accommodate development at the density allowed on the site by the general plan and proposed by the proposed housing development project. (5) For purposes of this section, "lower density" includes any conditions that have the same effect or impact on the ability of the project to provide housing. (k) (1) (A) The applicant, a person who would be eligible to apply for residency in the development or emergency shelter, or a housing organization may bring an action to enforce this section. If, in any action brought to enforce this section, a court finds that either (i) the local agency, in violation of subdivision (d), disapproved a housing https ://leginf o .legislature.ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200SB 50 4/5/2019 April 16, 2019 Item #5 Page 68 of 145 Bill Text -SB-50 Planning and zoning: housing development: incentives. Page 7 of 13 development project or conditioned its approval in a manner rendering it infeasible for the development of an emergency shelter, or housing for very low, low-, or moderate-income households, including farmworker housing, without making the findings required by this section or without making findings supported by a preponderance of the evidence, or (ii) the local agency, in violation of subdivision (j), disapproved a housing development project complying with applicable, objective general plan and zoning standards and criteria, or imposed a condition that the project be developed at a lower density, without making the findings required by this section or without making findings supported by a preponderance of the evidence, the court shall issue an order or judgment compelling compliance with this section within 60 days, including, but not limited to, an order that the local agency take action on the housing development project or emergency shelter. The court may issue an order or judgment directing the local agency to approve the housing development project or emergency shelter if the court finds that the local agency acted in bad faith when it disapproved or conditionally approved the housing development or emergency shelter in violation of this section. The court shall retain jurisdiction to ensure that its order or judgment is carried out and shall award reasonable attorney's fees and costs of suit to the plaintiff or petitioner, except under extraordinary circumstances in which the court finds that awarding fees would not further the purposes of this section. For purposes of this section, "lower density" includes conditions that have the same effect or impact on the ability of the project to provide housing. (B) (i) Upon a determination that the local agency has failed to comply with the order or judgment compelling compliance with this section within 60 days issued pursuant to subparagraph (A), the court shall impose fines on a local agency that has violated this section and require the local agency to deposit any fine levied pursuant to this subdivision into a local housing trust fund. The local agency may elect to instead deposit the fine into the Building Homes and Jobs Fund, if Senate Bill 2 of the 2017-18 Regular Session is enacted, or otherwise in the Housing Rehabilitation Loan Fund. The fine shall be in a minimum amount of ten thousand dollars ($10,000) per housing unit in the housing development project on the date the application was deemed complete pursuant to Section 65943. In determining the amount of fine to impose, the court shall consider the local agency's progress in attaining its target allocation of the regional housing need pursuant to Section 65584 and any prior violations of this section. Fines shall not be paid out of funds already dedicated to affordable housing, including, but not limited to, Low and Moderate Income Housing Asset Funds, funds dedicated to housing for very low, low-, and moderate-income households, and federal HOME Investment Partnerships Program and Community Development Block Grant Program funds. The local agency shall commit and expend the money in the local housing trust fund within five years for the sole purpose of financing newly constructed housing units affordable to extremely low, very low, or low-income households. After five years, if the funds have not been expended, the money shall revert to the state and be deposited in the Building Homes and Jobs Fund, if Senate Bill 2 of the 2017-18 Regular Session is enacted, or otherwise in the Housing Rehabilitation Loan Fund, for the sole purpose of financing newly constructed housing units affordable to extremely low, very low, or low-income households. (ii) If any money derived from a fine imposed pursuant to this subparagraph is deposited in the Housing Rehabilitation Loan Fund, then, notwithstanding Section 50661 of the Health and Safety Code, that money shall be available only upon appropriation by the Legislature. (C) If the court determines that its order or judgment has not been carried out within 60 days, the court may issue further orders as provided by law to ensure that the purposes and policies of this section are fulfilled, including, but not limited to, an order to vacate the decision of the local agency and to approve the housing development project, in which case the application for the housing development project, as proposed by the applicant at the time the local agency took the initial action determined to be in violation of this section, along with any standard conditions determined by the court to be generally imposed by the local agency on similar projects, shall be deemed to be approved unless the applicant consents to a different decision or action by the local agency. (2) For purposes of this subdivision, "housing organization" means a trade or industry group whose local members are primarily engaged in the construction or management of housing units or a nonprofit organization whose mission includes providing or advocating for increased access to housing for low-income households and have filed written or oral comments with the local agency prior to action on the housing development project. A housing organization may only file an action pursuant to this section to challenge the disapproval of a housing development by a local agency. A housing organization shall be entitled to reasonable attorney's fees and costs if it is the prevailing party in an action to enforce this section. (I) If the court finds that the local agency (1) acted in bad faith when it disapproved or conditionally approved the housing development or emergency shelter in violation of this section arid (2) failed to carry out the court's order or judgment within 60 days as described in subdivision (k), the court, in addition to any other remedies provided by this section, shall multiply the fine determined pursuant to subparagraph (B) of paragraph (1) of subdivision (k) by a factor of five. For purposes of this section, "bad faith" includes, but is not limited to, an action that is frivolous or otherwise entirely without merit. https://leginfo .legislature.ca. gov /faces/billN avClient.xhtrnl ?bill_ id=201920200SB50 4/5/2019 April 16, 2019 Item #5 Page 69 of 145 Bill Text -SB-50 Planning and zoning: housing development: incentives. Page 8 of 13 (m) Any action brought to enforce the provisions of this section shall be brought pursuant to Section 1094.5 of the Code of Civil Procedure, and the local agency shall prepare and certify the record of proceedings in accordance with subdivision (c) of Section 1094.6 of the Code of Civil Procedure no later than 30 days after the petition is served, provided that the cost of preparation of the record shall be borne by the local agency, unless the petitioner elects to prepare the record as provided in subdivision (n) of this section. A petition to enforce the provisions of this section shall be filed and served no later than 90 days from the later of (1) the effective date of a decision of the local agency imposing conditions on, disapproving, or any other final action on a housing development project or (2) the expiration of the time periods specified in subparagraph (B) of paragraph (5) of subdivision (h). Upon entry of the trial court's order, a party may, in order to obtain appellate review of the order, file a petition within 20 days after service upon it of a written notice of the entry of the order, or within such further time not exceeding an additional 20 days as the trial court may for good cause allow, or may appeal the judgment or order of the trial court under Section 904.1 of the Code of Civil Procedure. If the local agency appeals the judgment of the trial court, the local agency shall post a bond, in an amount to be determined by the court, to the benefit of the plaintiff if the plaintiff is the project applicant. (n) In any action, the record of the proceedings before the local agency shall be filed as expeditiously as possible and, notwithstanding Section 1094.6 of the Code of Civil Procedure or subdivision (m) of this section, all or part of the record may be prepared (1) by the petitioner with the petition or petitioner's points and authorities, (2) by the respondent with respondent's points and authorities, (3) after payment of costs by the petitioner, or (4) as otherwise directed by the court. If the expense of preparing the record has been borne by the petitioner and the petitioner is the prevailing party, the expense shall be taxable as costs. (o) This section shall be known, and may be cited, as the Housing Accountability Act. SECTION 1.SEC. 2. Chapter 4.35 (commencing with Section 65918.50) is added to Division 1 of Title 7 of the Government Code, to read: CHAPTER 4.35. Equitable Communities Incentives 65918.50. For purposes of this chapter: (a)"Affordable" means available at affordable rent or affordable housing cost to, and occupied by, persons and families of e)(tremely low, very low, lo'N, or moderate incomes, as specified in conte)(t, and sub:iect to a recorded affordability restriction for at least 55 years. (a) "Development proponent" means an applicant who submits an application for an equitable communities .incentive pursuant to this chapter. (b) "Eligible applicant" means a development proponent who receives an equitable communities incentive. (c) "FAR" means floor area ratio. (d) "High-quality bus corridor" means a corridor with fixed route bus service that meets all of the following criteria: (1) It has average service intervals of no more than 15 minutes during the three peak hours between 6 a.m. to 10 a.m., inclusive, and the three peak hours between 3 p.m. and 7 p.m., inclusive, on Monday through Friday. (2) It has average service intervals of no more than 20 minutes during the hours of 6 a.m. to 10~ p.m., inclusive, on Monday through Friday. (3) It has average intervals of no more than 30 minutes during the hours of 8 a.m. to 10 p.m., inclusive, on Saturday and Sunday. (e) (1) "Jobs-rich area" means an area identified by the Department of Housing and Community Development in consultation with the Office of Planning and Research that is both high opportunity and jobs rich, based on whether, in a regional analysis, the tract meets the following: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200SB50 4/5/2019 April 16, 2019 Item #5 Page 70 of 145 Bill Text -SB-50 Planning and zoning: housing development: incentives. Page 9 of 13 (A) The tract is higher opportunity and its characteristics are associated with positive educational and economic outcomes for households of all income levels residing in the tract. (8) The tract meets either of the following criteria: (i) New housing sited in the tract would enable residents to live in or near a jobs-rich area, as measured by employment density and job totals. (ii) New housing sited in the tract would enable shorter commute distances for residents, compared to existing commute levels. (2) The Department of Housing and Community Development shall, commencing on January 1, 2020, publish and update, every five years thereafter, a map of the state showing the areas identified by the department as ''jobs- rich areas." (f) "Job-rich housing project" means a residential development within an area identified as a jobs-rich area by the Department of Housing and Community Development--afle in consultation with the Office of Planning and Research, based on indicators such as proximity to jobs, high area median income relative to the relevant region, and high-quality public schools, as an area of high opportunity close to jobs. A residential development shall be deemed to be within an area designated as job-rich if both of the following apply: (1) All parcels within the project have no more than 25 percent of their area outside of the job-rich area. (2) No more than 10 percent of residential units or 100 units, whichever is less, of the development are outside of the job-rich area. (g) "Local government" means a city, including a charter city, a county, or a city and county. (h) "Major transit stop" means a site containin§ an eidstin§ rail transit station or a ferry terminal serves by either bus or rail transit serviee. that is a major transit stop pursuant to subdivision (b) of Section 21155 of the Public Resources Code. (i) "Residential development" means a project with at least two-thirds of the square footage of the development . designated for residential use. (j) "Sensitive community" means-itfl either of the following: (1) Except as provided in paragraph (2), an area identified by the Department of Housing and Community Development, which identification shall be updated every five years, in consultation with local community-based organizations in each metropolitan planning region, as an area vulnerable to sisplaeement pressures, bases on insieators sueh as pereenta§e of tenant householss livin§ at, or unser, the po\·ert·r line relative to the re§ion. where both of the following apply: (A) Thirty percent or more of the census tract lives below the poverty line, provided that college students do not compose at least 25 percent of the population. (B) The location quotient of residential racial segregation in the census tract is at least 1.25 as defined by the Department of Housing and Community Development. (2) In the Counties of Alameda, Contra Costa, Marin, Napa, Santa Clara, San Francisco, San Mateo, Solano, and Sonoma, areas designated by the Metropolitan Transportation Commission on December 19, 2018, as the intersection of disadvantaged and vulnerable communities as defined by the Metropolitan Transportation Commission and the San Francisco Bay Conservation and Development Commission, which identification of a sensitive community shall be updated at least every five years by the Department of Housing and Community Development. (k) "Tenant" means a person resisin§ in who does not own the property where they reside, including residential situations that are any of the following: (1) Residential real property rented by the person under a long-term lease. (2) A single-room occupancy unit. (3) An accessory dwelling unit that is not subject to, or does not have a valid permit in accordance with, an ordinance adopted by a local agency pursuant i:o Section 65852.22. (4) A residential motel. https ://leginf o .legislature. ca. gov /faces/billN avClient.xhtml ?bill _id=201920200SB 5 0 4/5/2019 April 16, 2019 Item #5 Page 71 of 145 Bill Text -SB-50 Planning and zoning: housing development: incentives. Page 10 of 13 (5) A mobilehome park, as governed under the Mobilehome Residency Law (Chapter 2.5 (commencing with Section 798) of Title 2 of Part 2 of Division 2 of the Civil Code), the Recreational Vehicle Park Occupancy Law (Chapter 2.6 (commencing with Section 799.20) of Title 2 of Part 2 of Division 2 of the Civil Code), the Mobilehome Parks Act (Part 2.1 (commencing with Section 18200) of Division 13 of the Health and Safety Code), or the Special Occupancy Parks Act (Part 2.3 (commencing with Section 18860) of Division 13 of the Health and Safety Code). (6) Any other type of residential property that is not owned by the person or a member of the person's household, for which the person or a member of the person's household provides payments on a regular schedule in exchange for the right to occupy the residential property. (I) "Transit-rich housing project" means a residential development the· parcels of which are all within a one-half mile radius of a major transit stop or a one-quarter mile radius of a stop on a high-quality bus corridor. A project shall be deemed to be within·a one half mile the radius of a major transit stop or a one quarter mile radius of a stop on a high quality bus corridor if both of the following apply: (1) All parcels within the project have no more than 25 percent of their area outside of a one-half mile radius of a major transit stop or a one-quarter mile radius of a stop on a high-quality bus corridor. (2) No more than 10 percent of the residential units or 100 units, whichever is less, of the project are outside of a one-half mile radius of a major transit stop or a one-quarter mile radius of a stop on a high-quality bus corridor. 65918.51. W A local government shall, upon request of a development proponent, grant an equitable communities incentive, as specified in Section 65918.53, when the development proponent seeks and agrees to construct a residential development that satisfies the requirements specified in Section 65918.52. (b)It is the . intent of the Legislature that, absent exceptional circumstances, actions talEen by a local legislati•re body that increase residential density not undermine the equitable communities incentive program established by this chapter. 65918.52. In order to be eligible for an equitable communities incentive pursuant to this chapter, a residential development shall meet all of the following criteria: (a) The residential development is either a job-rich housing project or transit-rich housing project. (b) The residential development is located on a site that, at the time of application, is zoned to allow housing as an underlying use in the zone, including, but not limited to, a residential, mixed-use, or commercial zone, as defined and allowed by the local government. (c) (1) If the local government has adopted an inclusionary housing ordinance requiring that the development include a certain number of units affordable to households with incomes that do not exceed the limits for moderate-income, lower income, very low income, or extremely low income specified in Sections 50079.5, 50093, 50105, and 50106 of the Health and Safety Code, and that ordinance requires that a new development include levels of affordable housing in excess of the requirements specified in paragraph (2), the residential development complies with that ordinance. The ordinance may provide alternative means of compliance that may include, but are not limited to, in-lieu fees, land dedication, offsite construction, or acquisition and rehabilitation of existing units. (2) (A) If the local government has not adopted an inclusionary housing ordinance, as described in paragraph (1), and the residential de~·elopment includes __ or more residential units, the residential development includes eft5ite an affordable housing contribution for households with incomes that do not exceed the limits for extremely low income, very low income, and low income specified in Sections 50093, 50105, and 50106 of the Health and Safety Code. It is the intent of the Legislature to require that any de·,elopment of __ or more residential units receiving an equitable communities incentive pursuant to this chapter include housing affordable to low, very low or extremely low income households, which, for projects with low or very low income units, are no less than the number of onsite units affordable to low or very low income households that would be required pursuant to subdivision (f) of Section 6S91S for a development receiving a density bonus of 3S percent. (8) For. purposes of this paragraph, the residential development is subject to one of the following: (i) If the project has 10 or fewer units, no affordability contribution is imposed. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200SB50 4/5/2019 April 16, 2019 Item #5 Page 72 of 145 Bill Text -SB-50 Planning and zoning: housing development: incentives. Page 11 of 13 (ii) If the project has 11 to 20 residential units, the development proponent may pay an in-lieu fee to the focal government for affordable housing, where feasible, pursuant to subparagraph (C). (iii) If the project has more than 20 residential units, the development proponent shall do either of the following: (I) Make a comparable affordability contribution toward housing offsite that is affordable to lower income households, pursuant to subparagraph (C). (II) Include units on the site of the project that are affordable to extremely low income, as defined in Section 50105 of the Health and Safety Code, very low income, or low-income households, as defined in Section 50079.5 of the Health and Safety Code, as follows: Project Size 21-200 units 201-350 units 351 or more units Inclusionary Requirement 15% low income; or 8% very low income; or 6% extremely low income 17% low income; or 10% very low income; or 8% extremely low income 25% low income; or 15% very low income; or 11% extremely low income (C) The development proponent of a project that qualifies pursuant to clause (ii) or subclause (I) of clause (iii) of subparagraph (B) may make a comparable affordability contribution toward housing offsite that is affordable to lower income households, as follows: (i) The local government collecting the in-lieu fee payment shall make every effort to ensure that future affordable housing will be sited within one-half mile of the original project location within the boundaries of the local government by designating an existing housing opportunity site within a one-half mile radius of the project site for affordable housing. To the extent practicable, local housing funding shall be prioritized at the first opportunity to build affordable housing on that site. (ii) If no housing opportunity sites that satisfy clause (i) are available, the local government shall designate a site for affordable housing within the boundaries of the local government and make findings that the site for the affordable housing development affirmatively furthers fair housing; as defined in Section 8899.50. (D) Affordability of units pursuant to this paragraph shall be restricted by deed for a period of 55 years for rental units or 45 years for units offered for sale. (d) The site does not contain, or has not contained, either of the following: (1) Housing occupied by tenants within the seven years preceding the date of the application, including housing that has been demolished or that tenants have vacated prior to the application for a development permit. (2) A parcel or parcels on which an owner of residential real property has exercised his or her their ri_ghts under Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 to withdraw accommodations from rent or· lease within 15 years prior to the date that the development proponent submits an application pursuant to this chapter. (e) The residential development complies with all applicable labor, construction employment, and wage standards otherwise required by law and any other ,generally applicable requirement regarding the approval of a development project, including, but not limited to, the local government's conditional use or other discretionary permit approval process, the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), or a streamlined approval process that includes labor protections. (f) The residential development complies with all other relevant standards, requirements, and prohibitions imposed by the local government regarding architectural design, restrictions on or oversight of demolition, impact fees, and community benefits agreements. (g) The equitable communities incentive shall not be used to undermine the economic feasibility of delivering low- income housing under the state density bonus program or a local implementation of the state density bonus program, or any locally adopted program that puts conditions on new development applications on the basis of https :/ /leginfo .legislature.ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200SB5 0 4/5/2019 April 16, 2019 Item #5 Page 73 of 145 Bill Text -SB-50 Planning and zoning: housing development: incentives. Page 12 of 13 receiving a zone change or general plan amendment in exchange for benefits such as increased affordable housing, local hire, or payment of prevailing wages. 65918.53. (a) A Fesidential development Any transit-rich or jobs-rich housing project that meets the criteria specified in Section 65918.52 shall receive, upon request, an equitable communities incentive as follows: (l)Any eligible applicant shall receive the following: (1) A waiver from maximum controls on density. (2) A waiver from maximum minimum automobile parking requirements greater than 0.5 automobile parking spots per unit. (3) Up to three incentives and concessions pursuant to subdivision (d) of Section 65915. (b) An eligible applicant proposing a residential development that is located within a one-half mile radius, but outside a one-quarter mile radius, of a major transit stop and includes no less than __ percent affordable housing units shall receive, in addition to the incentives specified in parngraph (1), subdivision (a), waivers from all of the following: (1) Maximum height requirements less than 45 feet. (2) Maximum FAR requirements less than 2.5. (3) Notwithstanding subparagraph (B) of paragraph (1), any maximum automobile parking requirement. (c) An eligible applicant proposing a residential development that is located within a one-quarter mile radius of a major _transit and includes no less than __ percent affordable housing units stop shall receive, in addition to the incentives specified in paragraph (1), subdivision (a), waivers from all of the following: (1) Maximum height requirements less than 55 feet. (2) Maximum FAR requirements less than 3.25. (3) Notwithstanding subparagraph (B) of paragraph---f-1-h-(1) of subdivision (b), any mai<imum minimum automobile parking requirement. (d) Notwithstanding any other law, for purposes of calculating any additional incentive or concession in accordance with Section 65915, the number of units in the residential development alter applying the equitable communities incentive received pursuant to this chapter shall be used as the base density for calculating the incentive or concession under that section. (e) An eligible applicant proposing a project that meets all of the requirements under Section 65913.4 may submit an application for streamlined, ministerial approval in accordance with that section. https ://leginfo .legislature. ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200SB 5 0 4/5/2019 April 16, 2019 Item #5 Page 74 of 145 Bill Text -SB-50 Planning and zoning: housing development: incentives. Page 13 of 13 (f) The local government may modify or expand the terms of an equitable communities incentive provided pursuant to this chapter, provided that the equitable communities incentive is consistent with, and meets the minimum standards specified in, this chapter. 65918.54. The Legislature finds and declares that this chapter addresses a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this chapter applies to all cities, including charter cities. 65918.55. (a) It is tAe iAteAt of tAe Legislature tAat implemeAtatioA Implementation of this chapter shall be delayed in sensitive communities until July 1, 2020. (b)It is fuFtAer tAe iAteAt of tAe Legislature to eAact legislatioA tAat does all of tAe followiAg : (b) Between January 1, 2020, and __ ,---at!ews a local government, in lieu of the requirements of this chapter,---te may opt for a community-led planning process in sensitive communities aimed toward increasing residential density and multifamily housing choices near transit~ stops, as follows: (2)EAcourages seAsitive (1) Sensitive communities to opt for that pursue a community-led planning process at the neighborhood level-ta ~ shall, on or before January 1, 2025, produce a community plan that may include zoning and any other policies that encourage multifamily housing development at a range of income levels to meet unmet needs, protect vulnerable residents from displacement, and address other locally identified priorities. (3)Sets FAiAiFAUFA performaAce staAdards for COFAFAUAity plaAS, SUER as FAiAiFAUFA (2) Community plans shall, at a minimum, be consistent with the overall residential development capacity and the minimum affordability standards set forth-in this cAapter. chapter within the boundaries of the community plan. (1)Automaticall't' applies tAe (3) The provisions of this chapter shall apply on January 1, 2025, to sensitive communities that-ae have not--Aa:Ve adopted community plans that meet the minimum standards described in paragraph-f3t,-(2), whether those plans were adopted prior to or after enactment of this chapter. SEC.----2-.-SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for _the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code. https://leginf o .legislature. ca. gov /faces/billN avClient.xhtml ?bill _id=201920200SB5 0 4/5/2019 April 16, 2019 Item #5 Page 75 of 145 ASSEMBLY BILL 11 CHIU, AGUIAR-CURRY, BLOOM, BONTA, DALY, E. GARCIA, GLORIA, HOLDEN, IRWIN, MULLIN, SANTIAGO, TING, AND WICKS AFFORDABLE HOUSING AND INFRASTRUCTURE FINANCING AGENCY SUMMARY Allows cities and counties to create affordable housing and infrastructure agencies (agencies) to fund affordable housing and infrastructure projects using tax increment financing with state approval. The new agencies would be required to set aside thirty percent of funding for the creation, improvement, or rehabilitation of affordable housing. BACKGROUND In the past, redevelopment agencies (RDAs) were a major source of funding for affordable housing and infrastructure. Cities created RDAs by establishing a project area and freezing the property tax rate at the point of creation. They were authorized to capture any incremental increase in property tax after the base year that would have otherwise flowed to all the other taxing entities -schools, special districts, and counties. RDAs were authorized to bond against that tax increment to fund their activities. Facing severe budget constraints, in 2011 the Governor and Legislature moved to scale back these activities. However, after legal challenges, RDAs were dissolved. At the time of dissolution, RDAs were diverting 12% of property taxes statewide to local activities. The Controller estimated that the amount required to be spent on affordable housing was approximately $1 billion. THE PROBLEM Due to Proposition 13, local jurisdictions lack the property tax base necessary to fund many important activities including affordable housing and infrastructure. Tax increment can be an important tool to support these activities if safeguards are applied at the state level to ensure funds are used strategically. Although the Legislature has created new tax increment funding tools since the dissolution of redevelopment, none are as robust as RDAs . The new tools do not include the schools' share of property taxes, making it hard to generate enough tax increment to fund projects. Redevelopment provided an important local funding tool married with state resources to build affordable housing. The loss of this funding tool has contributed to the housing affordability crisis facing California. THE SOLUTION AB 11 would authorize the creation of a new tax increment financing tool to fund infrastructure and affordable housing that includes the schools portion of tax increment, but only with state approval. Cities and counties would need to pass a resolution creating an agency that includes a description of the project area, the intended activities, and local funding commitments. All taxing entities would be required to participate, however cities would pass property taxes back to counties and special districts in an amount equivalent to what they would have received if the agency did not exist. The state would backfill schools to maintain adequate funding under Prop 98. An agency submits their plan to the Strategic Growth Council (SGC) for review and approval. SGC would determine if the agency supports the state's greenhouse gas reduction goals and approve or deny it. The dissolution of RDAs exposed the need for greater oversight to ensure tax increment was being used appropriately. AB 11 includes the following safeguards: 1. Robust replacement housing policies and anti- displacement policies. 2. Requires agencies to keep detailed records of use offunds. Creates a $10,000 fine per violation of the record keeping requirements. 3. Requires an independent audit each year by a certified public accountant. Requires the audit be submitted to the Controller. 4. The Controller annually determines major audit violations and refers any violations that are not corrected to the Attorney General. 5. Authorizes fines for major audit violations that are not corrected up to $250,000. 6. The agencies is governed by a board made up of multiple other agencies and the public. SUPPORT California Association of Realtors San Francisco Housing Coalition FOR MORE INFORMATION Lisa Engel I Chiefof Consultant Office of Assemblymember David Chiu Lisa.Engel@asm.ca.gov I (916) 319-2085 April 16, 2019 Item #5 Page 76 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 2 of 32 The bill would provide for a governing board of the agency consisting of one member appointed by the legislative body or the legislative bodies, as applicable, that adopted the resolution of intention, one member appointed by each affected taxing entity, and 2 public members. The bill would authorize an agency formed pursuant to these provisions to finance specified infrastructure and housing projects, and to carry out related powers, such as the power to purchase and lease property within' the redevelopment project area, that are similar to the powers previously granted to redevelopment agencies. The bill would require an agency to adopt an annual budget and to maintain detailed records of every action taken by that agency for a specified period of time, and would provide that any person who violates this requirement be subject to a fine of $10,000 per violation. The bill would require the agency to submit an annual report containing specified information, and a final report of any audit undertaken by any other local, state, or federal government entity, to its governing body within specified time periods. The bill would also require the agency to submit a copy of the annual report with the Controller and a copy of any audit report with the Department of Housing and Community Development. The bill would establish procedures under which the Controller would identify major audit violations and the Attorney General would bring an action to compel compliance. The bill would require the governing board of an agency to designate an appropriate official to prepare a proposed redevelopment project plan, in accordance with specified procedures. The bill would require the agency to hold a public hearing on the proposed redevelopment project plan, and would authorize the governing board to either adopt the redevelopment project plan or abandon proceedings, in which case the agency would cease to exist. The bill would authorize the redevelopment project plan to provide for the division of taxes levied upon taxable property, if any, between an affected taxing entity and the agency, as provided. The bill would declare that this authorization fulfills the intent of constitutional redevelopment provisions. The bill would also require that not less than 30% of all taxes allocated to the agency from an affected taxing entity be deposited into a separate fund, established by the agency, and used for the purposes of increasing, improving, and preserving the community's supply of low-and moderate-income housing available at an affordable housing cost, as provided. The bill would authorize the agency to issue bonds to finance redevelopment housing or infrastructure projects, in accordance with specified requirements and procedures, including that the resolution proposing the bonds include a description of the facilities or developments to be financed and the estimated cost of those facilities or developments, and that the resolution adopting the bonds provide for specified matters such as the principal amount of bonds. The bill would also authorize a city, county, or special district that contains territory within the boundaries of an agency to loan moneys to the agency to fund activities described in the redevelopment project plan. The bill would require the agency to contract for an independent financial and performance audit every 2 years alter the issuance of debt. By imposing additional duties on the county auditor with respect to the allocation of tax increment revenues, and the review of information submitted to the county auditor by an agency pursuant to these provisions, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACTAS FOLLOWS: SECTION 1. Section 53993 of the Government Code is amended to read: 53993: (a) Notwithstanding any other law, except as provided in subdivision (b), for the purpose of any law authorizing the division of taxes levied upon taxable property, including, but not limited to, Sections 53369.30, 53396, 53398.30, 53398. 75, and 62005, no revenues derived from the imposition of a property tax rate approved by the voters pursuant to subdivision (b) of Section 1 of Article XIII A of the California Constitution and levied in addition to the property tax rate limited by subdivision (a) of Section 1 of Article XIII A of the California Constitution shall be divided. (b) Subdivision (a) shall not apply to---#te either of the following: (1) The allocation of property taxes pursuant to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code. https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 78 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. (2) The division of taxes authorized by Section 100660. SEC. 2. Title 23 (commencing with Section 100600) is added to the Government Code, to read: TITLE 23. Community Redevelopment Law of 2019 PART 1. General Provisions 100600. This title shall be known, and may be cited, as the Community Redevelopment Law of 2019. 100601. For purposes of this title: Page 3 of 32 (a) "Affected taxing entity" means any governmental taxing agency which levied or had levied on its behalf a property tax on all or a portion of the property located in the proposed agency in the fiscal year before the designation of the agency district. (b) "Affected taxing entity equity amount" means the amount of ad valorem property tax revenue that the affected taxing entity would have received from property located within the redevelopment project area in the absence of the redevelopment and housing and infrastructure agency, calculated pursuant to subdivision (d) of Section 100661. (c) "Agency" means an affordable housing and infrastructure agency created by this title. (d) "County" means a county or a city and county. (e) "Debt" means any binding obligation to repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals. (f) "Designated official" means the appropriate official, such as an engineer of a city or county that is an affected taxing entity, designated pursuant to Section 100650. (g) "Governing board" means the governing body of an agency established pursuant to this title. (h) "Landowner" or "owner of land" means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of the land by the governing board. The governing board has no obligation to obtain other information as to the ownership of land, and its determination of ownership shall be final and conclusive for the purposes of this chapter. A public agency is not a landowner or owner of land for purposes of this chapter, unless the public agency owns all of the land to be included within the proposed agency. (i) "Legislative body" means the city council of the city or board of supervisors of the county. (j) "Redevelopment project" means any undertaking of an agency pursuant to this title. (k) "Special district" means an agency of the state formed for the performance of governmental or proprietary functions within limited geographic boundaries. 100602. (a) The Legislature declares that this title constitutes the Community Redevelopment La w within the meaning of Article XVI of Section 16 of the California Constitution, and that an affordable housing and infrastructure agency formed pursuant to this title shall have all powers granted to a redevelopment agency pursuant to that section. (b) Unless the context clearly indicates otherwise, whenever the term "redevelopment agency" or "Community Redevelopment Law" appears in this code or any other code, except those laws described in the following sentence, it shall be deemed to refer to an "affordable housing and infrastructure agency" formed pursuant to this part or the "Community Redevelopment Law of 2019," as applicable. The previous sentence does not apply to any of the following laws: (1) Part 1 (commencing with Section 33300) of Division 24 of the Health and Safety Code. (2) Part 1. 7 (commencing with Section 34100) of Division 24 of the Health and Safety Code. (3) Part 1.8 (commencing with Section 34161) of Division 24 of the Health and Safety Code. (4) Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code. (5) Part 1.9 (commencing with Section 34192) of Division 24 of the Health and Safety Code. PART 2. Formation of an Affordable Housing and Infrastructure Agency https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 79 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 4 of 32 100610. (a) The legislative body of a city or county, subject to the conditions as may apply under Section 100633, may propose to form an agency pursuant to this title by adopting a resolution of intention to establish the agency. The resolution of intention shall contain all the following: (1) A statement that an affordable housing and infrastructure agency is proposed to be established in accordance with the terms of this title. (2) A statement of the need for the proposed agency and the goals that the proposed agency seeks to achieve. (3) A preliminary project plan prepared by the legislative body. The preliminary project plan shall, at a minimum, include the following: (A) A description of the proposed boundaries of the project area. This may be accomplished by reference to a map on file in the office of the clerk of the city or in the office of the recorder of the county, as applicable. (B) A general statement of the land uses, layout of principal streets, population densities and building intensities, and standards proposed as the basis for the redevelopment of the project area. (C) Evidence that redevelopment will achieve the purposes of this title. (D) Evidence that the proposed redevelopment is consistent with the general plan of each applicable city or county in which the projects are proposed to be located. (E) A general description of the impact of the project upon the area's residents and upon the surrounding neighborhood. (F) A description of the affordable housing or infrastructure projects that are proposed to be financed by the agency. (4) A financing section that shall contain all of the following information: (A) A projection of the amount of tax revenues expected to be received by the agency in each year during which the agency will receive tax revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year. (B) A plan for financing the affordable housing or infrastructure projects to be assisted by the agency, including a detailed description of any intention to incur debt. (C) A statement of the total number of dollars of taxes that may be allocated to the agency pursuant to the plan. (D) The date on which the agency will cease to exist, by which time all tax allocation to the agency will end. The date shall not be more than 45 years from the date on which the issuance of bonds is approved pursuant to Section 100684, or the issuance of a loan is approved by the legislative body of a city, county, or special district pursuant to Section 100689. (E) An analysis of the costs to the city or county of providing facilities and services to the area of the agency while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the city or county as a result of expected development in the area of the agency. (F) An analysis of the projected fiscal impact of the agency and the associated development upon each affected taxing entity. (G) A passthrough provision that provides that the agency will, except as otherwise provided in this subparagraph, pay to each affected taxing entity an amount equivalent to the affected taxing entity equity amount. A passthrough provision shall not provide payment to the city or county that proposes to form the agency, or to any school entity, as defined pursuant to subdivision (f) of Section 95 of the Revenue and Taxation Code. (H) An override passthrough provision that provides that the agency will pay to each affected taxing entity that imposed an override property tax on property located within the proposed redevelopment project area an amount that is equivalent to the amount the affected taxing entity would have received from the override property tax imposed on that property in the absence of the affordable housing and infrastructure agency. For purposes of this subparagraph, "imposed an override property tax" means that an ad valorem property tax was imposed on property by, on or behalf of, the affected taxing entity within the meaning of subdivision (b) of Section 1 of Article XIII A of the California Constitution and levied in addition to the property tax rate limited by subdivision (a) of https:/ /leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 80 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 5 of 32 Section 1 of Article XIII A of the California Constitution. An override passthrough provision shall not provide payment to the city or county that proposes to form the agency, or to any school entity, as defined pursuant to subdivision (f) of Section 95 of the Revenue and Taxation Code. (5) A statement that the city or county adopting the resolution thereby elects to not receiving, whether by pass through or otherwise, a portion of those ad valorem property tax revenues that are in excess of the base year amount as described in paragraph (2) of subdivision (a) of Section 100660 that the city or county would have otherwise been entitled to from property in the redevelopment project area in the absence of the affordable housing and infrastructure agency. This statement is irrevocable unless and until the agency ceases to exist pursuant to the redevelopment project plan. (6) A statement that a public hearing shall be held on the proposal, and a statement of the time and place of that hearing. (b) The legislative body shall direct the city clerk or county recorder, as applicable, to mail a copy of the resolution of intention to each affected taxing entity. 100610.5. (a) The legislative body of two or more cities may propose to jointly form an agency pursuant to this title, subject to the conditions as may apply under Section 100633, by adoption of a resolution of intention by each city proposing to jointly form the agency. (b) In order to jointly form an agency pursuant to this section, each city shall do both of the following: (1) Include all of the elements required by subdivision (a) of Section 100610 in its resolution of int~ntion adopted pursuant to this section. (2) Comply with all other applicable requirements of this part with respect to the formation of an agency. (c) The proposed boundaries of the project area of an agency proposed to be jointly formed pursuant to this section may include any or all of the territory within each city proposing to jointly form the agency. 100611. (a) The city or county that adopted the resolution of intention pursuant to Section 100610, or each of the cities that adopted a resolution of intention pursuant to Section 100610.5, as applicable, shall consult with each affected taxing entity. Any affected taxing entity may suggest revisions to be included in the resolution of formation. (b) Any affected taxing entity entitled to receive a passthrough may submit a written election to not receive an amount that the entity otherwise would have received under a passthrough provision described in subparagraphs (G) or (H) of paragraph (4) of subdivision (a) of Section 100610. The affected taxing entity shall include in that written election a statement that the affected taxing entity consents to not receive any amount that would have been received under a passthrough provision, and that the entity is aware that statement is irrevocable unless and until the agency ceases to exist pursuant to the redevelopment project plan. 100612. (a) The legislative body shall, no sooner than 60 days after the resolution of intention was provided to each affected taxing entity pursuant to subdivision (b) of Section 100610, hold a public hearing on the proposal. (b) The legislative body shall provide notice of the public hearing by publication not less than once a week for four successive weeks in a newspaper of general circulation published in each city or county in which the proposed agency is located. The notice shall state that the agency will be used to finance affordable housing or infrastructure projects, briefly describe the proposed affordable housing or infrastructure projects, briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue, describe the boundaries of the proposed agency and state the day, hour, and place when and where any persons having any objections to the proposed agency or the regularity of any of the prior proceedings, may appear before the legislative body and object to the formation of the agency. (c) At the public hearing, the legislative body shall proceed to hear and pass upon all written and oral objections to the formation of the agency. The hearing may be continued from time to time. The legislative body shall consider the recommendations, if any, of affected taxing entities, and all evidence and testimony for and against the formation of the agency. (d) At the conclusion of the public hearing, the legislative body may adopt a resolution proposing the formation of the agency. The resolution of formation shall contain all the information described in subdivision (a) of Section 100610, and shall consider the recommendations, if any, of affected taxing entities, and all evidence and testimony for and against the adoption of the plan. The legislative body shall direct the city clerk or county recorder, as applicable, to mail the resolution of formation to each affected taxing entity. https:/ /leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill _id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 81 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 6 of32 100613. (a) For purposes of this section, "state ·fiscal impact" means the impact on the amount that the state is required to apportion to local educational entities, in accordance with existing requirements, with respect to all agencies within the state. (b) (1) For the 2020-21 fiscal year, and each fiscal year therealter, the Controller shall determine the state fiscal impact with respect to all agencies within the state, based on the latest annual report for each agency filed pursuant to paragraph (1) of subdivision (c) of Section 100640. The Controller's determination of the state fiscal impact shall remain in effect for one year. (2) If the state fiscal impact exceeds __ dollars ($ __ ) in any fiscal year, an agency shall not be formed until the next fiscal year in which the Controller determines that the state fiscal impact is below the limit specified in this paragraph. (3) The Controller shall publish on his or her Internet Web site a notice that includes his or her determination of the state fiscal impact of all agencies within the state for the prior fiscal year and stating whether or not any additional agencies may be formed pursuant to this title based on that determination. 100614. (a) The legislative body that adopted the resolution of formation pursuant to subdivision (d) of Section 100612 shall submit that resolution, along with all supporting documents, to the Strategic Growth Council for review. (b) (1) The Strategic Growth Council shall determine whether the establishment of an agency pursuant to this title, as provided in the resolution of intention, would promote statewide greenhouse gas reduction goals. In making the determination required by this paragraph, the Strategic Growth Council shall ensure that the projects proposed in the resolution of intention equitably represent rural, suburban, and urban communities, and that establishing the agency would not result in an inequitable geographic distribution of agencies throughout the state. (2) The Strategic Growth Council shall approve the resolution of formation of an agency if it determines both of the following: (A) Formation of the agency would not result in a state fiscal impact that exceeds the limit specified in Section 100613. (B) Formation of the agency would promote statewide greenhouse gas reduction goals, as specified in paragraph (1). (3) (A) If the Strategic Growth Council approves the resolution of formation, the agency shall be deemed to be in existence as of the date of that approval. (B) If the Strategic Growth Council determines that either or both of the criteria specified in paragraph (2) are not met, it shall disapprove the formation of the agency and provide a written explanation of its disapproval to the legislative body and to each affected taxing agency. (c) The Strategic Growth Council shall adopt policies and procedures for the receipt and evaluation of resolutions of intention pursuant to this section. (d) The Strategic Growth Council shall establish a program to provide technical assistance to a city or county that desires to form an affordable housing and infrastructure agency. The Strategic Growth Council shall provide that technical assistance by entering into a contract with that city or county, and may include a provision in that contract to recover the reasonable cost of the council in providing the technical assistance. In providing technical assistance, the council shall encourage that the proposed agency promote statewide greenhouse gas reduction goals as described in subdivision (b). PART 3. Governing Board of an Affordable Housing and Infrastructure Agency 100620. (a) The governing board of the agency shall consist of the following: (1) (A) Except as otherwise provided in subparagraph (B), one member appointed by the legislative body that adopted the resolution of intention pursuant to Section 100610. (B) In the case of an agency jointly formed by two or more cities pursuant to Section 100610.5, one member appointed by the legislative body of each city that adopted the resolution of intention pursuant to Section 100610.5. https:/ /leginfo.legislature.ca.gov/faces/billNavClient.:xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 82 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 7 of32 (2) One member appointed by each affected taxing entity. (3) Two public members initially appointed by the members appointed by the board composed of the members described in paragraphs (1) and (2) appointed, and then thereafter appointed by the board as a whole. The public members shall not be an elective officer or employee of any affected taxing entity. (b) A majority of the membership of the board constitutes a quorum for the transaction of any business, the performance of any duty, or the exercise of any power of the board. If a vacancy in the board occurs, then a majority of the remaining members of the board constitutes a quorum. 100621. Members of the governing board established pursuant to this chapter shall not receive compensation but may receive reimbursement for actual and necessary expenses incurred in the performance of official duties pursuant to Article 2.3 (commencing with Section 53232) of Chapter 2 of Part 1 of Division 2 of Title 5. 100623. (a) Members of the governing board are subject to Article 2.4 (commencing with Section 53234) of Chapter 2 of Part 1 of Division 2 of Title 5. (b) An agency created pursuant to this title shall be a local public agency subject to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1), and the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)). PART 4. Affordable Housing and Infrastructure Agency Powers and Duties CHAPTER 1. Agency Powers 100630. (a) (1) An agency may finance any of the following : (A) The purchase, construction, expansion, improvement, seismic retrofit, or rehabilitation of any real or other tangible property with an estimated useful life of 15 years or longer that constitutes affordable housing or infrastructure projects as described in subdivision (b). (B) The planning and design work that is directly related to the purchase, construction, expansion, or rehabilitation of property. (C) The costs described in Sections 100635 and 100636. (2) Facilities financed pursuant to this title are not required to be physically located within the boundaries of the agency. However, any facilities financed outside of an agency's boundaries shall have a tangible connection to the work of the agency, as detailed in the redevelopment project plan adopted pursuant to Part 5 (commencing with Section 100650). (3) An agency shall not finance routine maintenance, repair work, or the costs of an ongoing operation or providing services of any kind. (b) An agency shall only finance redevelopment projects that the agency finds are appropriate or necessary in the interests of the general welfare. For purposes of this title, redevelopment projects shall only include the following housing or infrastructure projects: (1) Highways, interchanges, ramps and bridges, arterial streets, parking facilities, and transit facilities. (2) Sewage treatment and water reclamation plants and interceptor pipes . (3) Facilities for the collection and treatment of water for urban uses. (4) Flood control levees and dams, retention basins, and drainage channels. (5) Child care facilities. (6) Libraries. (7) Parks, recreational facilities, and open space. (8) Facilities for the transfer and disposal of solid waste, including transfer stations and vehicles. (9) 'Brownfield restoration and other environmental mitigation. (10) The acquisition, construction, or rehabilitation of housing for persons of very low, low, and moderate income, as those terms are defined in Sections 50105 and 50093 of the Health and Safety Code, for rent or purchase. The https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 83 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 8 of 32 agency may finance mixed-income housing developments, but may finance only those units in a mixed-income development that are restricted to occupancy by persons of very low, low, or moderate incomes, as those terms are defined in Sections 50105 and 50093 of the Health and Safety Code, and those onsite facilities for child care, after school care, and social services that are integrally linked to the tenants of the restricted units. (11) Transit priority projects, as defined in Section 21155 of the Public Resources Code, that are located within a transit priority project area. For purposes of this paragraph, a transit priority project area may include a military base reuse plan that meets the definition of a transit priority project area and it may include a contaminated site within a transit priority project area. An agency may reimburse a developer of a project that is located entirely within the boundaries of that agency for any permit expenses incurred and to offset additional expenses incurred by the developer in constructing affordable housing units pursuant to the Transit Priority Project Program established in Section 65470. (12) Projects that implement a sustainable communities strategy, when the State Air Resources Board, pursuant to Chapter 2.5 (commencing with Section 65080) of Division 1 of Title 7, has accepted a metropolitan planning organization's determination that the sustainable communities strategy or the alternative planning strategy would, if implemented, achieve the greenhouse gas emission redu_ction targets. (13) Port or harbor infrastructure, as defined by Section 1698 of the Harbors and Navigation Code. (c) An agency shall not finance any project that is not described in subdivision (b). (d) The agency shall require, by recorded covenants or restrictions, that housing units built pursuant to this section shall remain available at affordable housing costs to, and occupied by, persons and families of very low, low-, or moderate-income households for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units. (e) An agency may utilize any powers under either the Polanco Redevelopment Act (Article 12.5 (commencing with Section 33459) of Chapter 4 of Part 1 of Division 24 of the Health and Safety Code) or Chapter 6.10 (commencing with Section 25403) of Division 20 of the Health and Safety Code, and finance any action necessary _ to implement that act. 100630.5. (a) Except as provided in subdivision (b), an agency shall not, directly or indirectly, allocate or transfer any funds received by the agency pursuant to Chapter i (commencing with Section 100660) of Part 6 to any city, county, or special district. (b) Notwithstanding subdivision (a), an agency shall make any payment required by a passthrough provision that was included in the financing section of its resolution of formation and included within the redevelopment project plan, as required by paragraphs (8) and (9) of subdivision (d) of Section 100651. In making payments required by this subdivision, the agency shall comply with the requirements of subparagraphs (G) and (H) of paragraph (4) of subdivision (a) of Section 100610. An agency shall not, directly or indirectly, make passthrough payments to any affected taxing entity, including by entering into a passthrough agreement, unless that passthrough provision was included in the resolution of formation of the agency. 100631. An agency may, within the area established in an approved redevelopment project plan, do either of the following: (a) Purchase, lease, obtain option upon, acquire by gift, grant, bequest, devise, or otherwise, any real or personal property, any interest in property, and any improvements on it, including repurchase of developed property previously owned by the agency, to be used in a redevelopment project. An agency shall obtain an appraisal from a qualified independent appraiser to determine the fair market value of property before the agency acquires or purchases real property. (b) Acquire real property by eminent domain to be used in a redevelopment project. Property already devoted to a public use may be acquired by the agency through eminent domain, but the agency shall not acquire property of a public body without the consent of that public body. 100632. An agency may rent, maintain, manage, operate, repair, and clear real property owned by the agency within the area established in an approved redevelopment project plan for the purpose of providing affordable housing. 100633. A city or county that created a former redevelopment agency, as defined in Section 33003 of the Health and Safety Code shall neither initiate the creation of an agency, either on its own pursuant to Section 100610 or https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 84 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 9 of 32 jointly pursuant to Section 100610.5, nor participate in the governance or financing of an agency, until each of the following has occurred: (a) The successor agency for the former redevelopment agency created by the city or county has received a finding of completion, as specified in Section 34179. 7 of the Health and Safety Code. (b) The city or county certifies to the Department of Finance and to the agency that no former redevelopment agency assets that are the subject of litigation involving the state, where the city or county, the successor agency, or the designated local authority are a named plaintiff, have been or will be used to benefit any efforts of an agency formed under this title, unless the litigation and all possible appeals have been resolved in a court of law. The city or county _shall provide this certification to the Department of Finance within 10 days of its legislative body's action to participate or initiate the formation of an agency under this title. (c) The Controller has completed its review as specified in Section 34167 .5 of the Health and Safety Code. (d) The successor agency and the entity that created the former redevelopment_ agency have complied with all of the Controller's findings and orders stemming from the reviews as specified in subdivision (c). 100634. (a) An agency may include any portion of a former redevelopment project area that was previously created pursuant to Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code, provided that the city or county that created the former redevelopment agency has met the requirements of Section 100633. (b) An agency may finance only the facilities authorized in this title to the extent that the facilities are in addition to those provided in the territory of the agency before the agency was created. The additional facilities may not supplant facilities already available within that territory when the agency was created but may supplement, rehabilitate, upgrade, or make more sustainable those facilities. (c) An agency may include areas which are not contiguous. 100635. It is the intent of the Legislature that the creation of an agency should not ordinarily lead to the removal of existing dwelling units. If, however, any dwelling units are proposed to be removed or destroyed in the course of public works construction within the area of the agency or private development within the area of the agency that is subject to a written agreement with the agency or that is financed in whole or in part by the agency then the redevelopment project plan adopted pursuant to Part 5 (commencing with Section 100650) shall contain provisions to do all of the following: (a) If the dwelling units to be removed or destroyed are or were inhabited by persons or families of very low, low, or moderate income, as defined in Sections 50105 and 50093 of the Health and Safety Code, at any time within five years before establishment of the agency, cause or require the construction or rehabilitation of an equal number of replacement dwelling units, within one-half mile of the location of the units to be removed or destroyed, that have an equal or greater number of bedrooms as those removed or destroyed units, within two years of the removal or destruction of the dwelling units. The replacement dwelling units shall be available for rent or sale to persons or families of very low, low, or moderate income, at affordable rent, as defined in Section 50053 of the Health and Safety Code, or at affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to persons in-the same or a lower income category (extremely low, very low, low, or moderate), as the persons displaced from, or who last occupied, the removed or destroyed dwelling units. (b) If the dwelling units to be removed or destroyed were not inhabited by persons of low or moderate income within the period of time specified in subdivision (a), cause or require the construction or rehabilitation within one-half mile of the location of the units to be removed or destroyed of at least one unit but not less than 25 percent of the total dwelling units removed or destroyed, within two years of the removal or destruction of the dwelling units. The units constructed or rehabilitated pursuant to this subdivision shall be of equivalent size and type to the units to be removed or destroyed. An equal percentage of the replacement dwelling units constructed or rehabilitated pursuant to this subdivision shall be available for rent or sale at affordable rent, as defined in Section 50053 of the Health and Safety Code, or affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to extremely low and very low income persons or families, as defined in Sections 50105 and 50106 of the Health and Safety Code. (c) Comply with all relocation assistance requirements of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1, for persons displaced from dwelling units by any public works construction within the area of the agency or private development within the area of the agency that is subject to a written agreement with the agency or that is financed in whole or in part by the agency as a result of the_ redevelopment project plan adopted https ://leginfo .legislature.ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 85 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 10 of 32 pursuant to Part 5 (commencing with Section 100650). The displacement of any persons from a dwelling unit as a result of the plan shall be deemed to be the result of public action. (d) Ensure that removal or destruction of any dwelling units occupied by persons or families of low or moderate income not take place unless and until there has been full compliance with the relocation assistance requirements of this section, Section 100651, and Chapter 16 (commencing with Section 7260) of Division 7 of Title 1. (e) (1) The agency shall require, by recorded covenants or restrictions, that all dwelling units constructed or rehabilitated pursuant to this section shall remain available at affordable rent or housing cost to, and occupied by, persons and families of the same income categories as required by subdivision (a) or (b), as applicable, for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units. (2) The agency may permit sales of owner-occupied units before the expiration of the 45-year period for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program that protects the agency's investment of moneys in the unit or units, including, but not limited to, an equity sharing program, that is not in conflict with another public funding source or law, and that establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds based on the length of occupancy. For purposes of this paragraph, the terms of the equity sharing program shall be consistent with the provisions of paragraph (2) of subdivision (c) of Section 65915, provided, however, that the program shall require any amounts recaptured by the agency to be used within five years for any of the affordable housing purposes described in Section 34176.1 of the Health and Safety Code. 100636. Any action or proceeding to attack, review, set aside, void, or annul the creation of an agency, adoption of redevelopment project plan, including a division of taxes thereunder, shall be commenced within 30 days after the formation of the agency. Consistent with the time limitations of this section, action or proceeding with respect to a division of taxes under this chapter may be brought pursuant to_ Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. 100637. An action to determine the validity of the issuance of bonds pursuant to this title may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. However, notwithstanding the time limits specified in Section 860 of the Code of Civil Procedure, the action shall be commenced within 30 days after adoption of the resolution pursuant to Section 100684 providing for issuance of the bonds if the action is brought by an interested person pursuant to Section 863 of the Code of Civil Procedure. Any appeal from a judgment in that action or proceeding shall be commenced within 30 days after entry of judgment. 100638. (a) An agency shall maintain detailed records of every action taken by that agency, including, but not limited to, all the following: (1) Original copies of any agreement, memorandum of understanding, or contact entered into by the agency. (2) A record of any payment made by the agency. (3) For each loan, advance, or indebtedness incurred or entered into, all of the following information: (A)·The date the loan, advance, or indebtedness was incurred or entered into. (B) The principal amount, term, purpose, interest rate, and total interest of each loan, advance, or indebtedness. (C) The principal amount and interest due in the fiscal year in which the statement of indebtedness is filed for each loan, advance, or indebtedness. (D) The total amount of principal and interest remaining to be paid for each loan, advance, or indebtedness. (b) The agency shall maintain any record described in this section for a period of 15 years after the later of the following: (1) The date the record was originally created. (2) The date that the agreement, memorandum of understanding, or contract expired or concluded. (3) The date that the loan was fully paid off. (c) Any person' who violates this section is subject to a civil penalty of ten thousand dollars ($10,000) per violation. All moneys collected as penalties pursuant to this subdivision shall be deposited in the Housing Rehabilitation Loan Fund, and, notwithstanding Section 50661 of the Health and Safety Code, those funds shall be https ://leginf o .legislature.ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 86 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 11 of 32 available, upon appropriation by the Legislature, for support of the Multifamily Housing Program (Chapter 6. 7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code). 100639. (a) An agency shall adopt an annual budget containing all of the following specific information: (1) The proposed expenditures of the agency. (2) The proposed indebtedness to be incurred by the agency. (3) The anticipated revenues of the agency. (4) The work program planned by the agency with respect to projects approved for the coming year, including goals. (5) An examination of the previous year's achievements and a comparison of the achievements with the goals of the previous year's work program. (b) An agency may amend the annual budget from time to time. All expenditures and indebtedness of the agency shall be in conformity with the adopted or amended budget. CHAPTER 2. Reporting Requirement 100640. (a) An agency shall submit an annual report to its governing board within six months of the end of the agency's fiscal year. The agency shall also submit the final report of any audit undertaken by any other local, state, or federal government entity to its governing board within 30 days of receipt of that audit report. (b) The annual report required by subdivision (a) shall contain all of the following: (1) (A) An independent financial audit report for the previous fiscal year. For purposes of this section, "audit report" means an examination of, and opinion on, the financial statements of the agency which present the results of the operations and financial position of the agency, including all financial activities with moneys required to be held in a separate fund established pursuant to subdivision (a) of Section 100670. This audit shall be conducted by a certified public accountant or public accountant, licensed by the State of California, in accordance with Government Auditing Standards adopted by the Comptroller General of the United States. The audit report shall meet, at a ,minimum, the audit guidelines prescribed by the Controller's office pursuant to Section 100642, and also include a report on the agency's compliance with laws, regulations, and administrative requirements governing activities of the agency, and a calculation of the excess surplus, as that term is defined in subdivision (g) of Section 100674, in the separate fund established pursuant to subdivision (a) of Section 100670. (B) However, the governing board may elect to omit from inclusion in the audit report prepared pursuant to subparagraph (A) any distinct activity of the agency that is funded exclusively by the federal government and that is subject to audit by the federal government. (2) A fiscal statement for the previous fiscal year that contains the information required pursuant to Section 100644. (3) A description of the agency's activities in the previous fiscal year affecting housing and displacement that contains the information required by Section 100643. (4) A description of the agency's progress, including specific actions and expenditures, in accomplishing the agency's purpose in the previous fiscal year. (5) A list of, and status report on, all loans made by the agency that are filty thousand dollars ($50,000) or more, that in the previous fiscal. year were in default, or not in compliance with the terms of the loan approved by the agency. (6) A description of the total number and nature of the properties that the agency owns and those properties the agency has acquired in the previous fiscal year. (7) A list of the fiscal years that the agency expects each of the following time limits to expire: (A) The time limit for the commencement for eminent domain proceedings to acquire property within the project area. (B) The time limit for the establishment of loans, advances, and indebtedness to finance the redevelopment project. https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 87 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 12 of 32 (C) The time limit for the effectiveness of the redevelopment plan. (D) The time limit to repay indebtedness with the proceeds of property taxes. (8) Any other information that the agency believes useful to explain its programs, including, but not limited to, the number of jobs created and lost in the previous fiscal year as a result of its activities. (c) (1) The agency shall file with the Controller within six months of the end of the agency's fiscal year a copy of the annual report required by subdivision (a). In addition, the agency shall file with the Department of Housing and Community Development a copy of an audit report as required by subdivision (a). The reports shall be made in the time, format, and manner prescribed by the Controller a~er consultation with the Department of Housing and Community Development. (2) The agency shall pr9vide a copy of the annual report required by subdivision (a), upon the written request of any person or any affected taxing entity. If the report does not include detailed information regarding administrative costs, professional services, or other expenditures, the person or affected taxing entity may request, and the agency shall provide, that information. The person or affected taxing entity shall reimburse the agency for all actual and reasonable costs incurred in connection with the provision of the requested information. 100641. (a) When the agency presents the annual report to the governing board pursuant to Section 100640, the agency shall inform the governing board of any major audit violations of this title based on the independent financial audit report. The agency shall inform the governing board that the failure to correct a major audit violation of this part may result in the filing of an action by the Attorney General pursuant to Section 100646. (b) The governing board shall review any report submitted pursuant to Section 100640 and take any action it deems appropriate on that report no later than the first meeting of the governing board occurring more than 21 days from the receipt of the report. 100642. The Controller shall develop and periodically revise the guidelines for the content of the report required by Section 100640. The Controller shall appoint an advisory committee to advise in the development of the guidelines. The advisory committee shall include representatives from among those persons nominated by the Department of Housing and Community Development, the Legislative Analyst, the California Society of Certified Public Accountants, and any other authorities in the field that the Controller deems necessary and appropriate. 100643. (a) For the purposes of compliance with paragraph (3) of subdivision (b) of Section 100640, the description of the agency's activities shall contain the following information, regardless of whether each activity is funded exclusively by the state or federal government, for each project area and for the agency overall: (1) The total number of nonelderly and elderly households, including separate subtotals of the numbers of very. low income households, other lower income households, and persons and families of moderate income, that were displaced or moved from their dwelling units as part of a redevelopment project of the agency during the previous fiscal year. (2) The total number of nonelderly and elderly households, including separate subtotals of the numbers of very low income households, other lower income households, and persons and families of moderate income, that the agency estimates will be displaced or will move from their dwellings as part of a redevelopment project of the agency during the present fiscal year and the date of adoption of a replacement housing portion of the redevelopment project plan required by Section 100635. (3) The total number of dwelling units housing very low income households, other lower income households, and persons and families of moderate income, respectively, which have been destroyed or removed from the low-or moderate-income housing market during the previous fiscal year as part of a redevelopment project of the agency, specifying the number of those units that are not subject to the replacement requirements of Section 100635. (4) The total numbers of agency-assisted dwelling units which were constructed, rehabilitated, acquired, or subsidized during the previous fiscal year for occupancy at an affordable housing cost by elderly persons and families, but only if the units are restricted by agreement or ordinance for occupancy by the elderly, and by very low income households, other lower income households, and persons and families of moderate income, respectively, specifying those units that are not currently so occupied, those units which have replaced units destroyed or removed pursuant to Section 100635, and the length of time any agency-assisted units are required to remain available at affordable costs. https:/ /leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 88 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 13 of 32 (5) The total numbers of new or rehabilitated units subject to Section 100635, including separate subtotals of the number originally affordable to and currently occupied by, elderly persons and families, but only if the units are restricted by agreement or ordinance for occupancy by the elderly, and by very low income households, other lower income households, and persons and families of moderate income, respectively, and the length of time these units are required to remain available at affordable costs. (6) The status and use of the separate fund established pursuant to subdivision (a) of Section 100670, including information on the use of this fund for very low income households, other lower income households, and persons and families of moderate income, respectively. If the separate fund is used to subsidize the cost of onsite or offsite improvements, then the description of the agency's activities shall include the number of housing units affordable to persons and families of low or moderate income which have been directly benefited by the onsite or offsite improvements. (7) The amount of excess surplus, as defined in Section 100673.5, that has accumulated in the agency's separate fund established pursuant to subdivision (a) of Section 100670. Of the total excess surplus, the description shall also identify the amount that has accrued to the separate fund during each fiscal year. This component of the annual report shall also include any plan required to be reported by subdivision (c) of Section 100673.5. (8) The total amount of funds expended for planning and general administrative costs. (9) Any other information which the agency believes useful to explain its housing programs, including, but not limited to, housing for persons and families of other than low and moderate income. (10) The total number of dwelling units for very low income households, other lower income households, and persons and families of moderate income to be constructed under the terms of an executed agreement or contract and the name and execution date of the agreement or contract. These units may only be reported for a period of two years from the execution date of the agreement or contract. (11) The date and amount of all deposits and withdrawals of moneys deposited to and withdrawn from the separate fund established pursuant to subdivision (a) of Section 100670. (b) As used in this section: (1) "Elderly," has the same meaning as specified in Section 50067 of the Health and Safety Code. (2) "Persons and families of moderate income," has the same meaning as specified in subdivision (b) of Section 50093 of the Health and Safety Code. (3) "Other lower income households," has the same meaning as "lower income households" as specified in Section 50079.5 of the Health and Safety Code, exclusive of very low income households. (4) "Persons and families of low or moderate income," has the same meaning as specified in Section 50093 of the Health and Safety Code. (5) "Very low income households," has the same meaning as specified in Section 50105 of the Health and Safety Code. (c) Notwithstanding any other law, costs associated with preparing the report required by this section may be paid with moneys from the separate fund established pursuant to subdivision (a) of Section 100670. 100644. For the purposes of compliance with paragraph (2) of subdivision (b) of Section 100640, the fiscal statement shall contain the following information: (a) The amount of outstanding indebtedness of the agency and each project area. (b) The amount of tax increment property tax revenues generated in the agency and in each project area. (c) The financial transactions report required pursuant to Section 53891. (d) The amount of outstanding debt and the total amount of payments required to be paid on that debt for that fiscal year. (e) The amount owed under any passthrough provision that was approved at the time of the creation of the agency, and calculated pursuant to subdivision (d) or (e) of Section 100661. (f) Any other fiscal information which the agency believes useful to describe its programs. https:/ /leginfo.legislature.ca.gov/faces/billNavClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 89 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 14 of 32 100645. (a) On or before May 1 of each year, the Department of Housing and Community Development shall compile and publish reports of the activities of each agency for the previous fiscal year, based on the information reported pursuant to paragraph (3) of subdivision (b) of Section 100640 and reporting the types of findings made by agencies pursuant to subdivision (a) of Section 100670, including the date of the findings. The department shall publish this information for each redevelopment project of each agency. These reports may also contain the biennial review of relocation assistance required by Section 50460 of the Health and Safety Code. The report shall contain a list of those project areas that are not subject to the requirements of Section 100635. (b) The department shall send a copy of the executive summary of its report to each agency for which information was reported pursuant to Section 100640 for the fiscal year covered by the report. The department shall send a copy of its report to each agency that requests a copy. 100646. (a) On or before April 1 of each year, the Controller shall compile a list of agencies that appear to have major audit violations as defined in this section, based on the independent financial audit reports filed with th~ Controller pursuant to Section 100640. (b) On or before June 1 of each year, for each major audit violation of each agency identified pursuant to subdivision (a), the Controller shall determine if the agency has corrected the major audit violation. Before making this determination, the Controller shall consult with each affected agency that is the subject of the report. In making this determination, the Controller may request and shall receive the prompt assistance of public officials and public agencies, including, but not limited to, the affected agency subject to the report, counties, and cities. If the Controller determines that an agency has not corrected the major audit violation, the Controller shall send a list of that agency, its major violations, all relevant documents, and the affidavits required pursuant to subdivision (d) to the Attorney General for action pursuant to this section. (c) For each agency that the Controller refers to the Attorney General pursuant to subdivision (b), the Controller shall notify the agency and the governing board that the agency was on the list sent to the Attorney General. The Controller's notice shall inform the agency and the governing board of the duties imposed by Section 100641. (d) Within 45 days of receiving the referral from the Controller pursuant to subdivision (b), the Attorney General shall determine whether to file an action to compel the agency's compliance with this title. Any action filed pursuant to this section shall be commenced in the County of Sacramento. The time limit for the Attorney General to make this determination is directory and not mandatory. Any action shall be accompanied by an affidavit or affidavits, to be provided by the Controller with the referral, setting forth facts that demonstrate a likelihood of success on the merits of the claim that the agency has a major audit violation. The affidavit shall also certify that the agency and the governing board were informed not less than 10 days before the date on which the action was filed. The agency shall file a response to any action filed by the Attorney General pursuant to this section within 15 days of service. (e) (1) On the earliest day that the business of the court will permit, but not later than 45 days after the filing of an action pursuant to this section, the court shall conduct a hearing to determine if good cause exists for believing that the agency has a major audit violation and has not corrected that violation. (2) If the court determines that no good cause exists or that the agency had a major audit violation but corrected the major audit violation, the court shall dismiss the action. (3) If the court determines that there is good cause for believing that the agency has a major audit violation and has not corrected that major audit violation, the court shall immediately issue an order that prohibits the agency from doing any of the following: (A) Encumbering any funds or expending any money derived from any source except to pay the obligations designated in paragraph (1) of subdivision (e) of Section 100674. (B) Adopting a redevelopment project plan. (C) Amending a redevelopment project plan, except to correct the major audit violation that is the subject of the action. (D) Issuing, selling, offering for sale, or delivering any bonds or any other evidence of indebtedness. (E) Incurring any indebtedness. (f) In a case that is subject to paragraph (3) of subdivision (e), the court shall also set a hearing on the matter within 60 days. https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 90 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 15 of 32 (g) If, on the basis of that subsequent hearing, the court determines that the agency has a major audit violation and has not corrected that violation, the court shall order the agency to comply with· this part within 30 days, and order the agency to forfeit to the state no more than: (1) Two thousand dollars ($2,000) in the case of an agency with a total revenue, in the prior year, of less than one hundred thousand dollars ($100,000) as reported in the Controller's annual financial reports. (2) Five thousand dollars ($5,000) in the case of an agency with a total revenue, in the prior year, of at least one hundred thousand dollars ($100,000) but less than two hundred fifty thousand dollars ($250,000) as reported in the Controller's annual financial reports. (3) Ten thousand dollars ($10,000) in the case of an agency with a total revenue, in the prior year, of at least two hundred fifty thousand dollars ($250,000) as reported in the Controller's annual financial reports. (h) The order issued by the court pursuant to paragraph (3) of subdivision (e) shall continue in effect until the court determines that the agency has corrected the major audit violation. If the court determines that the agency has corrected the major audit violation, the court may dissolve its order issued pursuant to paragraph (3) of subdivision (e) at any time. (i) An action filed pursuant to this section to compel an agency to comply with this part is in addition to any other remedy, and is not an exclusive means to compel compliance. (j) As used in this section, "major audit violation" means that, for the fiscal year in question, an agency did not: (1) File an independent financial audit report that substantially conforms to the requirements of paragraph (1) of subdivision (b) of Section 100640. (2) File a fiscal statement that includes substantially all of the information required by Section 100644. (3) Deposit all required tax increment revenues directly into the separate fund established pursuant to subdivision (a) of Section 100670 upon receipt, as required under Chapter 2 (commencing with Section 100670) of Part 6. (4) Establish a separate fund as required by subdivision (a) of Section 100670. (5) Accrue interest earned by the separate fund established pursuant to subdivision (a) of Section 100670 to that fund, as required by subdivision (b) of Section 100670. (6) Determine that the planning and administrative costs charged to the separate fund established pursuant to subdivision (a) Section 100670 are necessary for the production, improvement, or preservation of low-and moderate-income housing, as required by subdivision (d) of Section 100670.5. (7) Initiate development of housing on real property acquired using moneys from the separate fund established pursuant to subdivision (a) of Section 100670 or sell the property, as required by Section 100676. PART 5. Preparation of Redevelopment Project Plans 100650. (a) After the agency is formed, the governing board of the agency shall designate an appropriate official, such as an engineer of a city or county that is an affected taxing entity, to prepare a redevelopment project plan pursuant to Section 100651. (b) In the case of an agency proposed for port or harbor infrastructure, the governing board shall designate and direct the harbor agency, except as provided in Section 1719 of the Harbors and Navigation Code, to prepare a redevelopment project plan pursuant to Section 100651. 100651. The official designated pursuant to Section 100650 shall prepare a proposed redevelopment project plan. The redevelopment project plan shall be consistent with the general plan of each city or county within the agency's boundaries, or, if the proposed project is located outside those boundaries, with the general plan of the city or county that the project is located. The plan shall include all of the following: (a) A map and legal description of the proposed agency, which may include all or a portion of the agency designated in the resolution of formation. (b) A description of the public facilities and other forms of development or financial assistance that is proposed in the area of the agency, including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public improvements and facilities to be financed with assistance from the proposed agency, and those to be provided jointly. The description shall include the proposed location, timing, and costs of the development and financial_ assistance. https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_ id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 91 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 16 of 32 (c) If tax increment funding is incorporated into the financing plan, a finding that the development and financial assistance further the purposes of this title and are for redevelopment purposes. (d) A financing section that shall contain all of the following information: (1) A projection of the amount of tax increment revenues expected to be received by the agency in each year during which the agency will receive tax increment revenues, including an estimate of the amount of tax revenues attributable to each affected taxing entity for each year. (2) A plan for financing the public facilities to be assisted by the agency, including a detailed description of any intention to incur debt. (3) A statement of the total number of dollars of taxes that may be allocated to the agency pursuant to the plan. (4) A date on which the agency will cease to exist, by which time all tax allocation to the agency will end. The date shall not be more than 45 years from. the date on which the issuance of bonds is approved pursuant to Section 100684, or the issuance of a loan is approved by the legislative body of a city, county, or special district pursuant to Section 100689. (5) An analysis of the costs to the city or county of providing facilities and services to the area of the agency while the area is being developed and after the area is developed. The plan shall also include an analysis of the tax, fee, charge, and other revenues expected to be received by the city or county as a result of expected development in the area of the agency. (6) An analysis of the projected fiscal impact of the agency and the associated development upon each affected taxing entity. (7) A plan for financing any potential costs that may be incurred by reimbursing a developer of a project that is both located entirely within the boundaries of that agency and qualifies for the Transit Priority Project Program, pursuant to Section 65470, including any permit and affordable housing expenses related to the project. (8) A passthrough provision that is consistent with the requirements of subparagraph (G) of paragraph (4) of subdivision (a) of Section 100610. (9) An override passthrough provision that is consistent with the requirements of subparagraph (H) of paragraph (4) of subdivision (a) of Section 100610. (e) A housing program that describes how the agency will comply with Chapter 2 (commencing with Section 100670) of Part 6. The program shall include the following information: (1) The amount available in the separate fund established pursuant to subdivision (a) of Section 100670 and the estimated amounts that will be deposited in the fund during each of the next five years. (2) Estimates of the number of new, rehabilitated, or price restricted residential units to be assisted during each of the five years and estimates of the expenditures of moneys from the fund during each of the five years. (3) Estimates of the number of units, if any, developed by the agency for very low, low-, and moderate-income households during the next five years. (f) Those components required to be included pursuant to Section 100671.5. (g) The goals the agency proposes to achieve for each project financed pursuant to Section 100630. (h) When preparing the plan, the designated official shall consult with each affected taxing entity, and, at the request of any affected taxing entity, shall meet with representatives of an affected taxing entity. Any affected taxing entity may suggest revisions to the plan. 100652. The designated official shall mail the redevelopment project plan to each owner of land within the agency's boundaries and to each affected taxing entity together with any report required by the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that pertains to the proposed public facilities or the proposed development project for which the public facilities are needed, and shall be made available for public inspection. The report shall also be sent to the governing board. 100653. (a) The agency shall, no sooner than 60 days after the redevelopment project plan was submitted to each affected taxing entity pursuant to Section 100652, hold a public hearing on the proposal. https ://leginf o .legislature.ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 92 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 17 of32 (b) The agency body shall provide notice of the public hearing by publication not less than once a week for four successive weeks in a newspaper of general circulation published in each city or county in which the agency is located. The notice shall briefly describe the proposed affordable housing or infrastructure projects, briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue, and state the day, hour, and place when and where any persons having any objections to the proposed agency or the regularity of any of the prior proceedings, may appear before the governing board and object to the proposed redevelopment project plan. (c) At the public hearing, the governing board shall proceed to hear and pass upon all written and oral objections to the proposed redevelopment project plan. The hearing may be continued from time to time. The governing board shall consider the recommendations, if any, of affected taxing entities, and all evidence and testimony for and against the proposed redevelopment project plan. The governing board may modify the plan by eliminating or reducing the size and cost of the proposed facilities or development or by reducing the amount of proposed debt or by making other necessary changes. 100654. (a) At the conclusion of the hearing pursuant to Section 100653, the governing board may adopt a resolution proposing the adoption of the redevelopment project plan, as modified, or it may adopt a resolution abandoning the proceedings. If the proceedings are abandoned, then the agency shall cease to exist by operation of this section with no further action required of the legislative body that initially proposed to form the agency and the governing board may not enact a resolution of intention to adopt a plan that includes the same geographic area within one year of the date of the resolution abandoning the proceedings. (b) The redevelopment project plan shall take effect upon the adoption of the resolution. The redevelopment project plan shall specify if the agency shall be funded solely through the agency's share of tax increment, governmental or private loans, grants, bonds, assessments, fees, or some combination thereof. However, the agency shall not issue bonds or levy assessments or fees that may be included in the redevelopment project plan before one or more of the following: (1) Approval pursuant to Section 100673, if applicable, to issue bonds to finance the redevelopment project plan. (2) Compliance with the procedures required in subdivision (e) of Section 100660, to levy assessments or fees to finance the redevelopment project plan. (c) In addition, the agency may expend up to 10 percent of any accrued tax increment in the first two years of the effective date of the formation of the agency on planning and dissemination of information to the residents within the agency's boundaries about the redevelopment project plan and planned activities to be funded by the agency. PART 6. Division of Taxes CHAPTER 1. General Provisions 100660. (a) Any redevelopment, project plan may contain a provision that taxes, if any, levied upon taxable property in the area included within the agency each year by or for the benefit of the State of California, or any affected taxing entity after the effective date of the ordinance approving the redevelopment project plan, shall be divided as follows: (1) That portion of the taxes that would be produced by the rate upon which the tax is levied each year by or for each of the affected taxing entities upon the total sum of the assessed value of the taxable property in the agency as shown upon the assessment roll used in connection with the taxation of the property by the affected taxing entity, last equalized prior to the effective date of the formation of the agency, shall be allocated to, and when collected shall be paid to, the respective affected taxing entities as taxes by or for the affected taxing entities on all other property are paid. For the purpose of allocating taxes levied by or for any affected taxing entity or entities that did not include the territory in a redevelopment project on the effective date of the ordinance but to which that territory has been annexed or otherwise included after that effective date, the assessment roll of the county last equalized on the effective date of the ordinance shall be used in determining the assessed valuation of the taxable property in the project on the effective date. (2) That portion of the levied taxes each year in excess of the amount specified in paragraph (1) shall be allocated to and when collected shall be paid into a special fund of the agency to pay the principal of and interest on loans, moneys advanced to, or indebtedness (whether funded, refunded, assumed, or otherwise) incurred by the agency to finance or refinance, in whole or in part, the redevelopment project. Unless and until the total assessed valuation of the taxable property in a redevelopment project exceeds the total assessed value of the taxable property in that project as shown by the last equalized assessment roll referred to in paragraph (1), all of the taxes levied and collected upon the taxable property in the redevelopment project shall be paid to the https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 93 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 18 of 32 affected taxing entities. When the loans, advances, and indebtedness, if any, and interest thereon, have been paid, all moneys thereafter received from taxes upon the taxable property in the redevelopment project shall be paid to the affected taxing entities as taxes on all other property are paid. When the agency ceases to exist pursuant to the adopted redevelopment project plan, all moneys thereafter received from taxes upon the taxable property in the agency shall be paid to the respective affected taxing entities as taxes on all other property are paid. (3) That portion of the taxes in excess of the amount identified in paragraph (1) which are attributable to a tax rate levied by an affected taxing entity for the purpose of producing revenues in an amount sufficient to make annual repayments of the principal of, and the interest on, any bonded indebtedness for the acquisition or improvement of real property shall be allocated to, and when collected shall be paid into, the fund of that affected taxing entity. This subdivision shall only apply to taxes levied to repay bonded indebtedness approved by the voters of the affected taxing entity on or after January 1, 1989. (b) Notwithstanding subdivision (a), where an agency's boundaries overlap with the boundaries of any former redevelopment project area that is subject to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code, any debt or obligation of the agency shall be subordinate to any and all enforceable obligations of the former redevelopment agency, as approved by the Oversight Board and the Department of Finance. For the purposes of this part, the division of taxes allocated to the agency pursuant to subdivision (a) shall not include any taxes required to be deposited by the county auditor-controller into the Redevelopment Property Tax Trust Fund created pursuant to subdivision (b) of Section 34170.5 of the Health and Safety Code. (c) (1) The legislative body of the city or county forming the agency, or of each city that jointly formed the agency, as applicable, may choose to dedicate any portion of its net available revenue to the agency through the redevelopment project plan. (2) For the purposes of this subdivision, "net available revenue" means periodic distributions to the city or county from the Redevelopment Property Tax Trust Fund, created pursuant to Section 34170.5 of the Health and Safety Code, that are available to the city or county after all preexisting legal commitments and statutory obligations funded from that revenue are made pursuant to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code. "Net available revenue" shall not include any funds deposited by the county auditor- controller into the Redevelopment Property Ta x Trust Fund or funds remaining in the Redevelopment Property Tax Trust Fund before distribution. (d) (1) That portion of any ad valorem property tax revenue annually allocated to a city or county pursuant to Section 97.70 of the Revenue and Taxation Code that is specified in the redevelopment project plan adopted pursuant to Part 5 (Commencing with Section 100650), and that corresponds to the increase in the assessed valuation of taxable property shall be allocated to, and, when collected, shall be apportioned to, a special fund of the agency for redevelopment purposes. (2) When the agency ceases to exist pursuant to the adopted redevelopment project plan, the revenues described in this subdivision shall be allocated to, and, when collected, shall be apportioned to, the respective city or county. (e) This section shall not be construed to prevent an agency from utilizing revenues from any of the following sources to support its activities provided that the applicable voter approval has been obtained, and the redevelopment project plan has been approved: (1) The Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code). (2) The Municipal Improvement Act of 1913 (Division 12 (commencing with Section 10000) of the Streets and Highways Code). (3) The Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code). (4) The Landscaping and Lighting Act of 1972 (Part 2 (commencing with Section 22500) of Division 15 of the Streets and Highways Code). (5) The Vehicle Parking District Law of 1943 (Part 1 (commencing with Section 31500) of Division 18 of the Streets and Highways Code). (6) The Parking District Law of 1951 (Part 4 (commencing with Section 35100) of Division 18 of the Streets and Highways Code). https ://leginf o .legislature .ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 94 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 19 of 32 (7) The Park and Playground Act of 1909 (Chapter 7 (commencing with Section 38000) of Part 2 of Division 3 of Title 4 of this code). (8) The Mello-Roos Community Facilities Act of 1982 (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of this title). (9) The Benefit Assessment Act of 1982 (Chapter 6.4 (commencing with Section 54703) of Part 1 of Division 2 of this title). (10) The so-called facilities benefit assessment levied by the charter city of San Diego or any,substantially similar assessment levied for the same purpose by any other charter city pursuant to any ordinance or charter provision. 100661. (a) The portion of taxes required to be allo.cated pursuant to paragraph (2) of subdivision (a) of Section 100660 shall be allocated and paid to the agency by the county auditor or officer responsible for the payment of taxes into the funds of the affected taxing entities pursuant to the procedure contained in this section. (b) Not later than October 1 of each year, for each redevelopment project for which the redevelopment project plan provides for the division of taxes pursuant to Section 100660, the agency shall file, with the county auditor or officer described in subdivision (a), a statement of indebtedness consistent with subdivision (c), a reconciliation statement consistent with subdivision (d), and a passthrough statement consistent with subdivision (e). All statements required to be filed by this subdivision shall be certified by the chief financial officer of the agency. (c) (1) For each redevelopment project for which a statement of indebtedness is required to be filed, the statement of indebtedness shall contain all of the following: (A) For each loan, advance, or indebtedness incurred or entered into, all of the following information: (i) The date the loan, advance, or indebtedness was incurred or entered into. (ii) The principal amount, term, purpose, interest rate, and total interest of each loan, advance, or indebtedness. (iii) The principal amount and interest due in the fiscal year in which the statement of indebtedness is filed for each loan, advance, or indebtedness. (iv) The total amount of principal and interest remaining to be paid for each loan, advance, or indebtedness. (B) The sum of the amounts determined under clause (iii) of subparagraph (A). (C) The sum of the amounts determined under clause (iv) of subparagraph (A). (D) The available revenues as of the end of the previous year, as determined pursuant to paragraph (10) of subdivision (d). (2) The agency may estimate the amount of principal or interest, the interest rate, or term of any loan, advance, or indebtedness if the nature of the loan, advance, o'r indebtedness is such that the amount of principal or interest, the interest rate or term cannot be precisely determined. The agency may list on a statement of indebtedness any loan, advance, or indebtedness incurred or entered into on or before the date the statement is filed. (d) For each redevelopment project for which a reconciliation statement is required to be filed, the reconciliation statement shall contain all of the following: (1) A list of all loans, advances, and indebtedness listed on the previous year's statement of indebtedness. (2) A list of all loans, advances, and indebtedness, not listed on the previous year's statement of indebtedness, but incurred or entered into in the previous year and paid in whole or in part from revenue received by the agency pursuant to Section 100650. This listing may aggregate loans, advances, and indebtedness incurred or entered into in the previous year for a particular purpose, including relocation expenses, administrative expenses, consultant expenses, or property management expenses, into a single item in the listing. (3) For each loan, advance, or indebtedness described in paragraph (1) or (2), all of the following information: (A) The total amount of principal and interest remaining to be paid as of the later of the beginning of the previous year or the date the loan, advance, or indebtedness was incurred or entered into. (B) Any increases or additions to the loan, advance, or indebtedness occurring during the previous year. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 95 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 20 of 32 (C) The amount paid on the loan, advance, or indebtedness in the previous year from revenue received by the agency pursuant to Section 100660. (D) The amount paid on the loan, advance, or indebtedness in the previous year from revenue other than revenue received by the agency pursuant to Section 100660. (E) The total amount of principal and interest remaining to be paid as of the end of the previous fiscal year. (4) The available revenues of the agency as of the beginning of the previous fiscal year. (5) The amount of revenue received by the agency in the previous fiscal year pursuant to Section 100660. (6) The amount of available revenue received by the agency in the previous fiscal year from any source other than pursuant to Section 100660. (7) The sum of the amounts specified in subparagraph (D) of paragraph (3), to the extent that the amounts are not included as available revenues pursuant to paragraph (6). (8) The sum of the amounts specified in paragraphs (4), (5), (6), and (7). (9) The sum of the amounts specified in subparagraphs (C) and (D) of paragraph (3). (10) The amount determined by subtracting the amount determined under paragraph (9) from the amount determined under paragraph (8). The amount determined pursuant to this paragraph shall be the available revenues as of the end of the previous fiscal year. (e) An agency shall prepare a passthrough statement that includes all of the following information: (1) The projected amount of revenue that the agency expects to be allocated as provided in paragraph (2) of subdivision (a) of Section 100660. (2) For each affected taxing entity that is entitled to a passthrough, the agency shall subtract from the amount described in paragraph (1) the proportional amount that the affected taxing entity would have received from property located in the redevelopment project area. However, in no instance shall the amount calculated under this paragraph result in the affected taxing entity receiving an amount of ad valorem property tax revenue that is greater or lesser than the amount of ad valorem tax revenue-received by the agency that is attributable to that affected taxing entity. (3) A statement of the total amount of passthrough payments that the agency is required to make as calculated pursuant to paragraph (2). (f) For each agency that has an override passthrough prov1s1on in the financing section of its resolution of intention, in accordance with subparagraph (H) of paragraph (4) of subdivision (a) of Section 160010, at the time of creation of that agency, the agency shall prepare an override passthrough statement that includes all of the following information: (1) The projected amount of revenue that the agency expects to be allocated as provided in paragraph (2) of subdivision (a) of Section 100660. (2) For each affected taxing entity that imposed an override property tax with respect to property located with the redevelopment project area, the agency shall subtract from the amount described in paragraph (1) the amount that is equivalen_t to the amount the affected taxing entity would have received from the override property tax imposed on that property in the absence of the affordable housing and infrastructure agency. The agency shall include in the override passthrough statement a description of the applicable override property tax that was imposed, the purpose it was imposed for, and the entity that is entitled to receive revenue under that override property tax. (3) A statement of the total amount of passthrough payments that the agency is required to make as calculated pursuant to paragraph (2). (g) For the purposes of this section, available revenues shall include all cash or cash equivalents held by the agency that were received by the agency pursuant to Section 100660 and all cash or cash equivalents held by the agency that are irrevocably pledged or restricted to payment of a loan, advance, or indebtedness that the agency has listed on a statement of indebtedness. However, available revenue, for purposes of this section, shal) not include the amount of any payment that the agency is required to make under a passthrough provision as described in the passthrough statements prepared pursuant to subdivisions (e) and (f). https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 96 of 145 Bill Text-AB-11 Community Redevelopment Law of 2019. Page21 of32 (h) The county auditor or officer shall, at the same time or times as the payment of taxes into the funds of the affected taxing entities of the county, allocate and pay the portion of taxes provided by paragraph (2) of subdivision (a) of Section 100660 to each agency. The amoun_t allocated and paid shall not exceed the amount determined pursuant to subparagraph (C) of paragraph (1) of subdivision (c) plus the amount owed under any passthrough provision under subdivision (d) or (e), minus the amount determined pursuant to subparagraph (D) of paragraph (1) of subdivision (c). (i) (1) The statement of indebtedness constitutes prima facie evidence of the loans, advances, or indebtedness of the agency. (2) (A) If the county auditor or other officer disputes the amount of loans, advances, or indebtedness as shown on the statement of indebtedness, the county auditor or other officer shall, within 30 days after receipt of the statement, give written notice to the agency thereof. (B) The agency shall, within 30 days after receipt of notice pursuant to subparagraph (A), submit any further information it deems appropriate to substantiate the amount of any loans, advances, or indebtedness which has been disputed. If the county auditor or other officer still disputes the amount of loans, advances, or indebtedness, final written notice of that dispute shall be given to the agency, and the amount disputed may be withheld from allocation and payment to the agency as otherwise required by subdivision (h). In that event, the auditor or other officer shall bring an action in the superior court in declaratory relief to determine the matter not later than 90 days after the date of the final notice. (3) In any court action brought pursuant to this section, the issue shall involve only the amount of loans, advances, or indebtedness, and not the validity of any contract or debt instrument or any expenditures pursuant thereto. Payments to a trustee under a bond resolution or indenture _of any kind or payments to a public agency in connection with payments by that public agency pursuant to a lease or bond issue shall not be disputed in any action under this section. The matter shall be set for trial at the earliest possible date and shall take precedence over all other cases except older matters of the same character. Unless an action is brought within the time provided for herein, the auditor or other officer shall allocate and pay the amount shown on the statement of indebtedness as provided in subdivision (h). (j) This section does not permit a challenge to or attack on matters precluded from challenge or attack by reason of Section 100636 or 100637. However, this section does not deny a remedy against the agency otherwise provided by law. (k) The Controller shall prescribe a uniform form for a statement of indebtedness, reconciliation, passthrough, and override passthrough. These forms shall be consistent with this section. In preparing these forms, the Controller shall obtain the input of county auditors, redevelopment agencies, and organizations of county auditors and redevelopment agencies. (1) For the purposes of this section, a fiscal year shall be a year that begins on July 1 and ends the following June 30. 100662. (a) Section 100660 fulfills the intent of Section 16 of Article XVI of the California Constitution. To further carry out the intent of Section 16 of Article XVI of the Constitution! whenever that provision requires the allocation of money between agencies such allocation shall be consistent with the intent of the people when they approved Section 16 of Article XVI of the California Constitution. Whenever money is allocated between agencies by means of a comparison of assessed values for different years, that comparison shall be based on the same assessment ratio. When there are different assessment ratios for the years compared, the assessed value shall be changed so that it is based on the same assessment ratio for the years so compared. (b) As used in this part, the word "taxes" shall include, but without limitation, all levies on an ad valorem basis upon land or real property. However, "taxes" shall not include amounts of money deposited in a Sales and Use Tax Compensation Fund pursuant to Section 97.68 of the Revenue and Taxation Code or a Vehicle License Fee Property Tax Compensation Fund pursuant to Section 97. 70 of the Revenue and Taxation Code. 100663. (a) This section implements and fulfills the intent of this article and of Article XIII B and Section 16 of Article XVI of the California Constitution. The allocation and payment to an agency of the portion of taxes specified in paragraph (2) of subdivision (a) of Section 100660 for the purpose of paying principal of, or interest on, loans, advances, or indebtedness incurred for redevelopment activity, as defined in subdivision (b) of this section, shall not be deemed the receipt by an agency of proceeds of taxes levied by or on behalf of the agency within the meaning or for the purposes of Article XIII B of the California Constitution, nor shall such portion of taxes be deemed receipt of proceeds of taxes by, or an appropriation subject to limitation of, any other public body within the meaning or for purposes of Article XIII B of the California Constitution or any statutory provision https://leginfo.legislature.ca.gov/faces/b1llN avClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 97 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 22 of 32 enacted in implementation of Article XIII B. The allocation and payment to an agency of this portion of taxes shall not be deemed the appropriation by an agency of proceeds of taxes levied by or on behalf of an agency within the meaning or for purposes of Article XIII B of the California Constitution. (b) As used in this section, "redevelopment activity" means redevelopment meeting all the following criteria: (1) Is redevelopment as prescribed in Section 100630. (2) Primarily benefits the project area. (3) None of the funds are used for the purpose of paying for employee or contractual services of any local governmental agency unless these services are directly related to a redevelopment project, as described in subdivision (b) of Section 100630. (c) Should any law hereafter enacted, without a vote of the electorate, confer taxing power upon an agency, the exercise of that power by the agency in any fiscal year shall be deemed a transfer of financial responsibility from the community to the agency for that fiscal year within the meaning of subdivision (a) of Section 3 of Article XIII B of the California Constitution. 100664. An agency that is allocated a portion of taxes pursuant to paragraph (2) of subdivision (a) of Section 100660 and subdivision (h) of Section 100661 in a fiscal year shall distribute those taxes according to the following schedule: (a) First, to satisfy any passthrough provisions described in subparagraph (G) or (H) of paragraph (4) of subdivision (a) Section 100610 that was approved at the time of the formation of the agency, and calculated pursuant to subdivision (d) or (e) of Section 100661. (b) Second, 30 percent of the amount remaining after making the allocations pursuant to subdivision (a) shall be deposited into the separate fund established pursuant to Section 100670. (c) Third, any amount remaining shall be available to the agency for any valid redevelopment purpose. CHAPTER 2. Housing for Persons of Low and Moderate Income 100670. (a) Not less than 30 percent of all taxes that are allocated to the agency from any affected taxing entity pursuant to Section 100660 shall be deposited into a separate fund, which the agency shall establish pursuant to Section 100670.5, and the agency shall use all moneys in that fund for the purposes of increasing, improving, and preserving the community's supply of low-and moderate-income housing available at affordable housing cost, as defined by the following sections of the Health and Safety Code: Section 50052.5, to persons and families of low or moderate income, as defined in Section 50093, lower income households, as defined by Section 50079.5, very low income households, as defined in Section 50105, and extremely low income households, as defined by Section 50106, that is occupied by these persons and families unless the agency makes a finding that combining funding received under this program with other funding for the same purpose shall reduce administrative costs or expedite the construction of affordable housing. If the agency makes the finding described in the previous sentence, then (1) an agency may transfer funding from the program adopted pursuant to subdivision (e) of Section 100651 to the housing authority within the territorial jurisdiction of the local jurisdiction that created the agency or to the entity that received the housing assets of the former redevelopment agency pursuant to Section 34176 of the Health and Safety Code or to a private nonprofit housing developer, and (2) Section 34176.1 of the Health and Safety Code shall not apply to funds transferred. The agency shall spend all funds described in this subdivision within the plan area in which the funds were generated. Any person who receives funds transferred pursuant to this subdivision shall comply with all applicable provisions of this part. (b) In carrying out the purposes of this section, the agency may exercise any or all of its powers for the construction, rehabilitation, or preservation of affordable housing for extremely low, very low, low-and moderate- income persons or families, including the following: (1) (A) Improve real property or building sites with onsite or offsite improvements, but only if both of the following are met: (i) The improvements are part of the new construction or rehabilitation of affordable housing units for low-or moderate-income persons that are directly benefited by the improvements, and are a reasonable and fundamental component of the housing units. https ://leginfo .legislature.ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 98 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 23 of 32 (ii) The agency requires that the units remain available at affordable housing cost to, and occupied by, persons and families of extremely low, very low, low, or moderate income for the same time period and in the same manner as provided in subdivision (c) and paragraph (2) of subdivision (f) of Section 100670.5. (B) If the newly constructed or rehabilitated housing units are part of a larger project and the agency improves or pays for onsite or offsite improvements pursuant to the authority in this subdivision, the agency shall pay only a portion of the total cost of the onsite or offsite improvement. The maximum percentage of the total cost of the improvement paid for by the agency shall be determined by dividing the number of housing units that are affordable to low-or moderate-income persons by the total number of housing units, if the project is a housing project, or by dividing the cost of the affordable housing units by the total cost of the project, if the project is not a housing project. (2) Donate real property to private or public persons or entities. (3) Finance insurance premiums necessary for the provision of insurance during the construction or rehabilitation of properties that are adm inistered by governmental entities or nonprofit organizations to provide housing for lower income households, as defined in Section 50079.5 of the Health and Safety Code, including rental properties, emergency shelters, transitional housing, or special residential care facilities. (4) Construct buildings or structures. (5) Acquire buildings or structures. (6) Rehabilitate buildings or structures. (7) Provide subsidies to, or for the benefit of, extremely low income households, as defined by Section 50106 of the Health and Safety Code, very low income households, as defined by Section 50105 of the Health and Safety Code, lower income households, as defined by Section 50079.5 of the Health and Safety Code, or persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code, to the extent those households cannot obtain housing at affordable costs on the open market. Housing units available on the open market are those units developed without direct government subsidies. (8) Develop plans, pay principal and interest on bonds, loans, advances, or other indebtedness, or pay financing or carrying charges. (9) Maintain the community's supply of mobilehomes. (10) Preserve the availability to lower income households of affordable housing units in housing developments that are assisted or subsidized by public entities and that are threatened with imminent conversion to market rates. (c) The agency may use these funds to meet, in whole or in part, the replacement housing provisions in Section 100635. However, this section shall not be construed as limiting in any way the requirements of that section. (d) The agency shall use these funds inside the plan area. (e) The Legislature finds and declares that expenditures or obligations incurred by the agency pursuant to this section shall constitute an indebtedness of the plan area. (f) (1) (A) An action to compel compliance with the requirement of this section to deposit not less than 25 percent of all taxes that are allocated to the agency pursuant to Section 100660 in the separate fund established pursuant to subdivision (a) shall be commenced within 10 years of the alleged violation. A cause of action for a violation accrues on the last day of the fiscal year in which the funds were required to be deposited in that separate fund. (B) An action to compel compliance with the requirement of this section that money deposited in the separate fund established pursuant to subdivision (a) be used by the agency for purposes of increasing, improving, and preserving the community's supply of low-and moderate-income housing available at affordable housing cost shall be commenced within 10 years of the alleged violation. A cause of action for a violation accrues on the date of the actual expenditure of the funds. (C) An agency found to have deposited less into the separate fund established pursuant to subdivision (a) than mandated by Section 100670.5 or to have spent money from that fund for purposes other. than increasing, improving, and preserving the community's supply of low-and moderate-income housing, as mandated by this section, shall repay the funds with interest in one lump sum pursuant to Section 970.4 or 970.5 or may do either of the following: (i) Petition the court under Section 970.6 for repayment in installments. https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 99 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 24 of 32 (ii) Repay the portion of the judgment due to the separate fund in equal installments over a period of five years following the judgment. (2) Repayment shall not be made from the funds required to be set aside or used for low-and moderate-income housing pursuant to this section. (3) Notwithstanding clauses (i) and (ii) of subparagraph (C) of paragraph (1), all costs, including reasonable attorney's fees if included in the judgment, are due and shall be paid upon entry of judgment or order. (4) Except as otherwise provided in this subdivision, Chapter 2 (commencing with Section 970) of Part 5 of Division 3.6 of Title 1 for the enforcement of a judgment against a local public entity applies to a judgment against a local public entity that violates this section. (5) This subdivision applies to actions filed on and after January 1, 2019. (6) The limitations period specified in subparagraphs (A) and (B) of paragraph (1) does not apply to a cause of action brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. 100670.5. (a) The funds that are required by Section 100670 or 100671.5 to be used for the purposes of increasing, improving, and preserving the community's supply of low-and moderate-income housing shall be held in a separate fund, established pursuant to subdivision (a) of Section 100670, until used. (b) Any interest earned by the separate fund and any repayments or other income to the agency for loans, advances, or grants, of any kind from that fund, shall accrue to and be deposited in, the fund and may only be used in the manner prescribed for the separate fund. (c) The moneys in the separate fund established pursuant to subdivision (a) of Section 100670 shall be used to increase, imprnve, and preserve the supply of low-and moderate-income housing within the territorial jurisdiction of the agency. (d) It is the intent of the Legislature that the separate fund established pursuant to subdivision (a) of Section 100670 be used to the maximum extent possible to defray the costs of production, improvement, and preservation of low-and moderate-income housing and that the amount of money spent for planning and general administrative activities associated with the development, improvement, and preservation of that housing not be disproportionate to the amount actually spent for the costs of production, improvement, or preservation of that housing . The agency shall determine annually that the planning and administrative expenses are necessary for the production, improvement, or preservation of low-and moderate-income housing. (e) (1) Planning and general administrative costs that may be paid with moneys from the separate fund established pursuant to subdivision (a) of Section 100670 are those expenses incurred by the agency that are directly related to the programs and activities authorized under subdivision (e) of Section 100670 and are limited to the following: (A) Costs incurred for salaries, wages, and related costs of the agency's staff or for services provided through interagency agreements, and agreements with contractors, including usual indirect costs related thereto. (B) Costs incurred by a nonprofit corporation which are not directly attributable to a specific project. (2) Legal, architectural, and engineering costs and other salaries, wages, and costs directly related to the planning and execution of a specific project that are authorized under subdivision (e) of Section 100670 and that are incurred by a nonprofit housing sponsor are not planning and administrative costs for the purposes of this section, but are instead project costs. (f) (1) The requirements of this subdivision apply to all new or substantially rehabilitated housing units developed or otherwise assisted with moneys from the separate fund established pursuant to subdivision (a) of Section 100670. Except to the extent that a longer period of time may be required by other provisions of law, the agency shall require that housing units subject to this subdivision shall remain available at affordable housing cost to, and occupied by, persons and families of low or moderate income and very low income and extremely low income households for the longest feasible time, but for not less than the following periods of time: (A) Fifty-five years for rental units. However, the agency may replace rental units with equally affordable and comparable rental units in another location within the community if both of the following are met: (i) The replacement units are available for occupancy before.the displacement of any persons and families of low or moderate income residing in the units to be replaced. https:/ /leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 100 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 25 of32 (ii) The comparable replacement units are not developed with moneys from the separate fund. (B) Forty-five years for owner-occupied units. However, the agency may permit sales of owner-occupied units before the expiration of the 45-year period for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program which protects the agency's investment of moneys from the separate fund, including, but not limited to, an equity sharing program which establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds based on the length of occupancy. The remainder of the excess proceeds of the sale shall be allocated to the agency and deposited in the separate fund. Only the units originally assisted by the agency shall be counted towards the agency's obligations under Section 100671. (C) Fifteen years for mutual self-help housing units that are occupied by and affordable to very low and low- income households. However, the agency may permit sales of mutual self-help housing units before expiration of the 15-year period for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program that (i) protects the agency's investment of moneys from the separate fund, including, but not limited to, an equity sharing program that establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds based on the length of occupancy, and (ii) ensures through a recorded regulatory agreement, deed of trust, or similar recorded instrument that if a mutual self-help housing unit is sold at any time after expiration of the 15-year period and before 45 years after the date of recording of the covenants or restrictions required pursuant to paragraph (2), the agency recovers, at a minimum, its original principal from the separate fund from the proceeds of the sale and deposits those funds into that fund. The remainder of the excess proceeds of the sale not retained by the seller shall be allocated to the agency and deposited in the separate (und. For the purposes of this subparagraph, "mutual self-help housing unit" means an owner-occupied housing unit for which persons and families of very low and low income contribute no fewer than 500 hours of their own labor in individual or group efforts to provide a decent, safe, and sanitary ownership housing unit for themselves, their families, and others authorized to occupy that unit. This subparagraph does not preclude the agency and the developer of the mutual self-help housing units from agreeing to 45-year deed restrictions. (2) If land on which those dwelling units are located is deleted from the plan area, the agency shall continue to require that those units remain affordable as specified in this subdivision. (3) The agency shall require the recording in the office of .the county recorder of the following documents: (A) The covenants or restrictions implementing this subdivision for each parcel or unit of real property subject to this subdivision. The agency shall obtain and maintain a copy of the recorded covenants or restrictions for not less than the life of the covenant or restriction. (B) For all new or substantially rehabilitated units developed or otherwise assisted with moneys from the separate fund established pursuant to subdivision (a) of Section 100670, a separate document called "Notice of Affordability Restrictions on Transfer of Property," set forth in 14-point type or larger. This document shall contain all of the following information: (i) A recitation of the affordability covenants or restrictions. The document recorded under this subparagraph shall be recorded concurrently with the covenants or restrictions recorded under subparagraph (A), the recitation of the affordability covenants or restrictions shall also reference the concurrently recorded document. (ii) The date the covenants or restrictions expire. (iii) The street address of the property, including, if applicable, the unit number, unless the property is used to confidentially house victims of domestic violence. (iv) The assessor's parcel number for the property. (v) The legal description of the property. (4) The agency shall require the recording of the document required under subparagraph (B) of paragraph (3) not more thah 30 days after the date of recordation of the covenants or restrictions required under subparagraph (A) of paragraph (3). (5) The county recorder shall index the documents required to be recorded under paragraph (3) by the agency and current owner. (6) Notwithstanding Section 27383, a county recorder may charge all authorized recording fees to any party, including a public agency, for recording the document specified in subparagraph (B) of paragraph (3). https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 101 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 26 of 32 (7) Notwithstanding any other law, the covenants or restrictions implementing this subdivision shall run with the land and shall be enforceable against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following: . (A) The agency. (B) Any affected taxing entity. (C) A resident of a unit subject to this subdivision. (D) A residents' association with members who reside in units subject to this subdivision. (E) A former resident of a unit subject to this subdivision who last resided in that unit. (F) An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this subdivision, if the applicant conforms to all of the following : (i) Is of low or moderate income, as defined in Section 50093 of the Health and Safety Code. (ii) Is able and willing to occupy that particular unit. (iii) Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this subdivision. (G) A person on an affordable housing waiting list who is of low or moderate income, as defined in Section 50093 of the Health and Safety Code, and who is able and willing to occupy a unit subject to this subdivision. (8) A dwelling unit shall not be counted as satisfying the affordable housing requirements of this title, unless covenants for that dwelling unit are recorded in compliance with subparagraph (A) of paragraph (3). (9) Failure to comply with the requirements of subparagraph (B) of paragraph (3) shall not invalidate any covenants or restrictions recorded pursuant to subparagraph (A) of paragraph (3). (g) "Housing," as used in this section, includes residential hotels, as defined in subdivision (k) of Section 37912 of the Health and Safety Code. The definitions of "lower income households," "very low income households," and "extremely low income households" in Sections 50079.5, 50105, and 50106 of the Health and Safety Code shall apply to this section. "Longest feasible time," as used in this section, includes, but is not limited to, unlimited duration. (h) "Increasing, improving, and preserving the community's supply of low-and moderate-income housing," as used in this section and in Section 100670, includes the preservation of rental housing units assisted by federal, state, or local government on the condition that units remain affordable to, and occupied by, low-and moderate- income households, including extremely low and very low income households, for the longest feasible time, but not less than 55 years, beyond the date the subsidies and use restrictions could be terminated and the assisted housing units converted to market rate rentals. In preserving these units the agency shall require that the units remain affordable to, and occupied by, persons and families of low-and moderate-income and extremely low and very low income households for the longest feasible time, but not less than 55 years. (i) Funds from the separate fund established pursuant to subdivision (a) of Section 100670 shall not be used to the extent that other reasonable means of private or commercial financing of the new or substantially rehabilitated units at the same level of affordability and quantity are reasonably available to the agency or to the owner of the units. Before the expenditure of funds from the separate fund for new or substantially rehabilitated housing units, where those funds will exceed SO percent of the cost of producing the units, the agency shall find, based on substantial evidence, that the use of the funds is necessary because the agency or owner of the units has made a good faith attempt but has been unable to obtain commercial or private means of financing the units at the same level of affordability and quantity. 100671. (a) Except as specified in subdivision (d), each agency shall expend over each 10-year period of the redevelopment project plan the moneys in the separate fund established pursuant to subdivision (a) of Section 100670 to assist housing for persons of low income and housing for persons of very low income in at least the same proportion as the total number of housing units needed that each of those income groups bears to the total number of units needed for persons of moderate, low, and very low income within the community, as those needs have been determined for the community pursuant to Section 65584. In determining compliance with this obligation, the agency may adjust the proportion by subtracting from the need identified for each income category, the number of units for persons of that income category that are newly constructed over the duration of the implementation plan with other locally controlled government assistance and without agency assistance and https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 102 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 27 of 32 that are required to be affordable to, and occupied by, persons of the income category for at least 55 years for rental housing and 45 years for ownership housing, except that in making an adjustment the agency may not subtract units developed pursuant to a replacement housing obligation under state or federal law. (b) Each agency shall expend over the duration of each plan, the moneys in the separate fund established pursuant to subdivision (a) of Section 100670 to assist housing that is available to all persons regardless of age in at least the same proportion as the number of low-income households with a member under 65 years of age bears to the total number of low-income households of the community as reported in the most recent census of the United States Census Bureau. (c) An agency that has deposited in the separate fund established pursuant to subdivision (a) of Section 100670 over the first five years of the period of a plan an aggregate that is less than two million dollars ($2,000,000) shall have an extra five years to meet the requirements of this section. (d) For the purposes of this section, "locally controlled" means government assistance if the city or county that proposed formation of the agency pursuant to Section 100610, one or more of the cities that jointly proposed formation of the agency pursuant to Section 100610.5, or other local government entity has the discretion and the authority to determine the recipient and the amount of the assistance, whether or not the source of the funds or other assistance is from the state or federal government. Examples of locally controlled government assistance include, but are not limited to, the Community Development Block Grant Program (42 U.S.C. Sec. 5301 et seq.) funds allocated to a city or county, the Home Investment Partnership Program (42 U.S.C. Sec. 12721 et seq.) funds allocated to a city or county, fees or funds received by a city or county pursuant to a city or county authorized program, and the waiver or deferral of city or other charges. 100671.5. Every redevelopment project plan shall contain both of the following: (a) A provision that requires, whenever dwelling units housing persons and families of low or moderate income are destroyed or removed from the low-and moderate-income housing market as part of a revitalization project, the agency to, within two years of such destruction or removal, rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to persons and families of low or moderate income an equal number of replacement dwelling un.its at affordable housing costs, as defined by Section 50052.5 of the Health and Safety Code, within the territorial jurisdiction of the agency, in accordance with all of the provisions of Section 100635. (b) A provision that prohibits the number of housing units occupied by extremely low, very low-, and low-income households, including the number of bedrooms in those units, at the time the plan is adopted, from being reduced in the plan area during the effective period of the plan. 100672. Programs to assist or develop low-and moderate-income housing pursuant to this title shall be entitled to priority consideration a~er a program implemented by a housing successor pursuant to Section 34176.1 of the Health and Safety Code for assistance in housing programs administered by the California Housing Finance Agency, the Department of Housing and Community Development, and other state agencies and departments, if those agencies or departments determine that the housing is otherwise eligible for assistance under a particular program. 100672.5. The same notice requirements as specified in Section 65863.10 shall apply to multifamily rental housing that receives financial assistance pursuant to Sections 100670 and 100670.5. 100673. Notwithstanding Sections 100670 and 100670.5, assistance provided by an agency to preserve the. availability to lower income households of affordable housing units within the plan area which are assisted or subsidized by public entities and which are threatened with imminent conversion to market rates may be credited and offset against an agency's obligations under Section 100670. 100673.5. (a) Except as otherwise provided in this subdivision, not later than six months following the close of any fiscal year of an agency in which excess surplus accumulates in the agency's separate fund established pursuant to subdivision (a) of Section 100670, the agency may adopt a plan pursuant to this section for expenditure of all moneys in the separate fund within five years from the end of that fiscal year. The plan may be general and need not be site-specific, but shall include objectives respecting the number and type of housing to be assisted, identification of the entities that will administer the plan, alternative means of ensuring the affordability of housing units for the longest feasible time, as specified in subdivision (f) of Section 100670.5, the income groups to be assisted, and a schedule by fiscal year for expenditure of the excess surplus. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 103 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 28 of32 (b) The agency shall separately account for any excess surplus accumulated each year either as part of or in addition to the separate fund established pursuant to subdivision (a) of Section 100670. (c) If the agency develops a plan for expenditure of excess surplus or other moneys in the separate fund established pursuant to subdivision (a) of Section 100670, a copy of that plan and any amendments to that plan shall be included in the agency's annual report pursuant to Section 100640. 100674. (a) (1) Upon failure of the agency to expend or encumber excess surplus in the separate fund established pursuant to subdivision (a) of Section 100670, within one year from the date the moneys become excess surplus, as defined in paragraph (1) of subdivision (g), the agency shall do either of the following: (A) Disburse voluntarily its excess surplus to the county housing authority, a private nonprofit housing developer, or to another public agency exercising housing development powers within the territorial jurisdiction of the agency in accordance with subdivision (b). (8) Expend or encumber its excess surplus within two additional years. (2) If an agency, after three years has elapsed from the date that the moneys become excess surplus, has not expended or encumbered its excess surplus, the agency shall be subject to sanctions pursuant to subdivision (e), until the agency has expended or encumbered its excess surplus plus an additional amount, equal to 50 percent of the amount of the excess surplus that remains at the end of the three-year period. The additional expenditure shall not be from the agency's separate fund established pursuant to subdivision (a) of Section 100670, but shall be used in a manner that meets all requirements for expenditures from that fund. (b) The housing authority or other public agency to which the money is transferred shall utilize the moneys for the purposes of, and subject to the same restrictions that are applicable to, the agency under this part, and for that purpose may exercise all of the powers of a housing authority under Part 2 (commencing with Section 34200) of Division 24 of the Health and Safety Code to an extent not inconsistent with these limitations. (c) Notwithstanding Section 34209 of the Health and Safety Code or any other law, for the purpose of accepting a transfer of, and using, moneys pursuant to this section, the housing authority of a county or other public agency may exercise its powers within the territorial jurisdiction of an agency located in that county. (d) The amount of excess surplus that shall be transferred to the housing authority or other public agency because of a failure of the agency to expend or encumber excess surplus within one year shall be the amount of the excess surplus that is not so expended or encumbered. The housing authority or other public agency to which the moneys are transferred shall expend or encumber these moneys for authorized purposes not later than three years after the date these moneys were transferred from the separate fund established pursuant to subdivision (a). (e) (1) Until a time when the agency has expended or encumbered excess surplus moneys pursuant to subdivision (a), the agency shall be prohibited from encumbering any funds or expending any moneys derived from any source, except that the agency may encumber funds and expend moneys to pay the following obligations, if any, that were incurred by the agency before three years from the date the moneys became excess surplus: (A) Bonds, notes, interim certificates, debentures, or other obligations issued by an agency, whether funded, refunded, assumed, or otherwise, pursuant to Part 7 (commencing with Section 100680). (8) Loans or moneys advanced to the agency, including, but not limited to, loans from federal, state, or local agencies, or a private entity. (C) Contractual obligations which, if breached, could subject the agency to damages or other liabilities or remedies. (D) Indebtedness incurred pursuant to Section 100670 or 100672. (E) An amount, to be expended for the operation and administration of the agency, that may not exceed 75 percent of the amount spent for those purposes in the preceding fiscal year. (2) This subdivision shall not be constr.ued to prohibit the expenditure of excess surplus funds or other funds to meet the requirement in paragraph (2) of subdivision (a) that the agency spend or encumber excess surplus funds, plus an amount equal to 50 percent of excess surplus, before spending or encumbering funds for any other purpose. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill _id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 104 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 29 of 32 (f) This section shall not be construed to limit any authority that an agency may have under other provisions of this title to contract with a housing authority, private nonprofit housing developer, or other public agency exercising housing developer powers, for increasing or improving the community's supply of low-and moderate- income housing. (g) For purposes of this section: (1) "Excess surplus" means any unexpended and unencumbered amount in an agency's separate fund established pursuant to subdivision (a) of Section 100670 that exceeds the greater of one million dollars ($1,000,000) or the aggregate amount deposited into the separate fund pursuant to Sections 100670 and 100672 during the agency's preceding four fiscal years. The first fiscal year to be included in this computation is the 2019-20 fiscal year, and the first date on which an excess surplus may exist is July 1, 2024. (2) Moneys shall be deemed encumbered if committed pursuant to a legally enforceable contract or agreement for expenditure for purposes specified in Sections 100670 and 100670.5. (3) (A) For purposes of determining whether an excess surplus exists, it is the intent of the Legislature to give credit to agencies which convey land for less than fair market value, on which low-and moderate-income housing is built or is to be built if at least 49 percent of the units developed on the land are available at an affordable housing cost to lower income households for at least the time specified in subdivision (f) of Section 100670.5, and otherwise comply with all of the provisions of this division applicable to expenditures of moneys from a low-and moderate-income housing fund established pursuant to Section 100670.5. Therefore, for the sole purpose of determining the amount, if any, of an excess surplus, an agency may make the following calculation: if an agency sells, leases, or grants land acquired with moneys from the separate fund established pursuant to subdivision (a) of Section 100670 for an amount which is below fair market value, and if at least 49 percent of the units constructed or rehabilitated on the land are affordable to lower income households, as defined in Section 50079.5 of the Health and Safety Code, the difference between the fair market value of the land and the amount the agency receives may be subtracted from the amount of moneys in an agency's separate fund. (B) If taxes that are deposited in the separate fund are used as security for bonds or other indebtedness, the proceeds of the bonds or other indebtedness, and income and expenditures related to those proceeds, shall not be counted in determining whether an excess surplus exists. The unspent portion of the proceeds of bonds or other indebtedness, and income related thereto, shall be excluded from the calculation of the unexpended and unencumbered amount in the separate fund when determining whether an excess surplus exists. (C) This subdivision shall not be construed to restrict the authority of an agency provided in any other provision of this title to expend funds from the separate fund established pursuant to subdivision (a) of Section 100670. (D) The Department of Housing and Community Development shall develop and periodically revise the methodology to be used in the calculation of excess ·surplus as required by this section. The Director of Housing and Community Development shall appoint an advisory committee to advise in the development of this methodology. The advisory committee shall include department staff, affordable housing advocates, and representatives of the housing successors of former redevelopment agencies, the League of California Cities, the California Society of Certified Public Accountants, the Controller, and any other authorities or persons interested in the field that the director deems necessary and appropriate. (h) Communities in which an agency has disbursed excess surplus funds pursuant to this section shall not disapprove a low-or moderate-income housing project funded in whole or in part by the excess surplus funds if the project is consistent with applicable building codes and the land use designation specified in any element of the general plan as it existed on the date the application was deemed complete. A local agency may require compliance with local development standards and policies appropriate to and consistent with meeting the quantified objectives relative to the development of housing, as required in housing elements of the community pursuant to subdivision (b) of Section 65583. 100674.5. (a) Notwithstanding Sections 50079.5, 50093, and 50105 of the Health and Safety Code, for purposes of an agency providing assistance to mortgagors participating in a homeownership residential mortgage revenue bond program pursuant to Section 33750 of the Health and Safety Code, or a home financing program pursuant to Section 52020 of the Health and Safety Code, or a California Housing Finance Agency home financing program, "area median income" means the highest of the following: (1) Statewide median household income. (2) Countywide median household income. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 105 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page 30 of 32 (3) Median family income for the area, as determined by the United States Department of Housing and Urban Development with respect to either a standard metropolitan statistical area or an area outside of a standard metropolitan statistical area. (b) To the extent that any portion of the separate fund established pursuant to subdivision (a) of Section 100670 is expended by an agency to provide assistance to mortgagors participating in programs whose income exceeds that of persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, the agency shall, within two years, expend or enter into a legally enforceable agreement to expend twice that sum exclusively to increase and improve the community's supply of housing available at an affordable housing cost, as defined in Section 50052.5 of the Health and Safety Code, to lower income households, as defined in Section 50079.5 of the Health and Safety Code, of which at least SO percent shall be very low income households, as defined in Section 50105 of the Health and Safety Code. (c) In addition to the requirements of subdivision (c)-of Section 33413 of the Health and Safety Code, the agency shall require that the lower and very low income dwelling units developed pursuant to this subdivision remain available at an affordable housing cost to lower and very low income households for at l'east 45 years, except as to dwelling units developed with the assistance of federal or state subsidy programs which terminate in a shorter period and cannot be extended or renewed. (d) The agency shall include within the report required by Section 100640 information with respect to compliance by the agency with the requirements of this section. 100675. The covenants or restrictions imposed by the agency pursuant to subdivision (f) of Section 100670.5 may be subordinated under any of the following alternatives: (a) To a lien, encumbrance, or regulatory agreement under a federal or state program when a federal or state agency is providing financing, refinancing, or other assistance to the housing units or parcels, if the federal or state agency refuses to consent to the seniority of the agency's covenant or restriction on the basis that it is required to maintain its lien, encumbrance, or regulatory agreement or restrictions due to statutory or regulatory requirements, adopted or approved policies, or other guidelines pertaining to the financing, refinancing, or other assistance of the housing units or parcels. (b) To a lien, encumbrance, or regulatory agreement of a lender other than the agency or from a bond issuance providing financing, refinancing, or other assistance of owner-occupied units or parcels, provided that the agency makes a finding that an economically feasible alternative method of financing, refinancing, or assisting the units or parcels on substantially comparable terms and conditions, but without subordination, is not reasonably available. (c) To an existing lien, encumbrance, or regulatory agreement of a lender other than the agency or from a bond issuance providing financing, refinancing, or other assistance of rental units, where the agency's funds are utilized for rehabilitation of the rental units. (d) To a lien, encumbrance, or regulatory agreement of a lender other than the agency or from a bond issuance providing financing, refinancing, or other assistance of rental units or parcels, provided that the agency makes a finding that an economically feasible alternative method of financing, refinancing, or assisting the units or parcels on substantially comparable terms and conditions, but without subordination, is not reasonably available, and the agency obtains written commitments reasonably designed to protect the agency's investment in the event of default, including, but not limited to, any of the following: (1) A right of the agency to cure a default on the loan. (2) A right of the agency to negotiate with the lender after notice of default from the lender. (3) An agreement that if before foreclosure of the loan, the agency takes title to the property and cures the default on the loan, the lender will not exercise any right it may have to accelerate the loan by reason of the transfer of title to the agency. (4) A right of the agency to purchase property from the owner at any time after a default on the loan. 100675.5. Subsidies provided pursuant to paragraph (8) of subdivision (b) of Section 100670 may include payment of a portion of the principal and interest on bonds issued by a public agency to finance housing for persons and families specified in that paragraph if the agency ensures by contract that the benefit of the subsidy will be passed on to those persons and families in the form of lower housing costs. https ://leginfo.legislature. ca. gov/faces/billN avClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 106 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. Page31 of32 100676. For each interest in real property acquired using moneys from the separate fund established pursuant to subdivision (a) of Section 100670, the agency shall, within five years from the date it first acquires the property interest for the development of housing affordable to persons and families of low and moderate income, initiate activities consistent with the development of the property for that purpose. These activities may include, but are not limited to, zoning changes or agreements entered into for the development and disposition of the property. If these activities have not been initiated within this period, the agency may, by resolution, extend the period during which the agency may retain the property for one additional period not to exceed five years. The resolution of extension shall affirm the intention of the governing board that the property be used for the development of housing affordable to persons and families of low and moderate income. In the event that physical development of the property for this purpose has not begun by the end of the extended period, or if the agency does not comply with this requirement, the property shall be sold and the moneys from the sale, less reimbursement to the agency for the cost of the sale, shall be deposited in the agency's separate fund established pursuant to subdivision (a) of Section 100670. PART 7. Tax Increment Bonds 100680. The agency may, by majority vote, initiate proceedings to issue bonds pursuant to this chapter by adopting a resolution stating its intent to issue the bonds. 100681. The resolution adopted pursuant to Section 100680 shall contain all of the following information: (a) A description of the facilities or developments to be financed with the proceeds of the proposed bond issue. (b) The estimated cost of the facilities or developments, the estimated cost of pr~paring and issuing the bonds, and the principal amount of the proposed bond issuance. (c) The maximum interest rate and discount on the proposed bond issuance. (d) A determination of the amount of tax revenue available or estimated to be available, for the payment of the principal of, and interest on, the bonds. (e) A finding that the amount necessary to pay the principal of, and interest on, the proposed bond issuance will be less than, or equal to, the amount determined ·pursuant to subdivision (e). 100682. (a) (1) Except as otherwise provided in subdivision (b), the clerk of the agency shall publish the resolution adopted pursuant to Section 100681 once a day for at least seven successive days in a newspaper published in the city or county at least six days a week, or at least once a week for two successive weeks in a newspaper published in the city or county less than six days a week. (2) In the case of an agency jointly formed by two or more cities pursuant to Section 100610.5, the clerk shall publish the resolution in a newspaper in each city in which the agency is located. (b) If there are no newspapers that meet the criteria specified in subdivision (a), the resolution shall be posted in three public places within the territory of the district for two succeeding weeks. 100683. (a) If the agency adopts a resolution proposing initiation of proceedings to issue bonds pursuant to Section 100680 for port or harbor infrastructure, it shall submit the proposal, together with the information specified in Section 100681, to the affected harbor agency pursuant to Section 1713 of the Harbors and Navigation Code for its preliminary approval. (b) If the harbor agency grants preliminary approval, the proposal shall be. considered by the State Lands Commission for final approval pursuant to Section 1714 of the Harbors and Navigation Code. (c) If the State Lands Commission votes in favor of the issuance of the bonds as provided in Section 1714 of the Harbors and Navigation Code, the agency may proceed with the issuance of bonds pursuant to this part. 100684. The agency shall issue bonds by adopting a resolution providing for all of the following: (a) The issuance of the bonds in one or more series. (b) The principal amount of the bonds that shall be consistent with the amount specified in subdivision (b) of Section 100681. (c) The date the bonds will bear. (d) The date of maturity of the bonds. https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 107 of 145 Bill Text -AB-11 Community Redevelopment Law of 2019. (e) The denomination of the bonds. (f) The form of the bonds. (g) The manner of execution of the bonds. (h) The medium of payment in which the bonds are payable. (i) The place or manner of payment and any requirements for registration of the bonds. U) The terms of call or redemption, with or without premium. Page 32 of32 100685. The agency may provide for refunding of bonds issued pursuant to this chapter. However, refunding bonds shall not be issued if the total net interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds exceeds the total net interest cost to maturity on the bonds to be refunded. The agency shall not extend the time to maturity of the bonds. 100686. The agency or any person executing the bonds shall not be personally liable on the bonds by reason of their issuance. The bonds and other obligations of an agency issued pursuant to this part are not a debt of the city, county, or state or of any of its political subdivisions, other than the agency, and none of those entities, other than the agency, shall be liable on the bonds and the bonds or obligations shall be payable exclusively from funds or properties of the agency. The bonds shall contain a statement to this effect on their face. The bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation. 100687. The bonds may be sold at discount not to exceed 5 percent of par at public sale. At least five days before the sale, notice shall be published, pursuant to Section 6061, in a newspaper of general circulation and in a financial newspaper published in the City and County of San Francisco and in the City of Los Angeles. The bonds may be sold at not less than par to the federal government at private sale without any public advertisement. 100688. If any member of the agency whose signature appears on bonds ceases to be a member of the agency before delivery of the bonds, his or her signature is as effective as if he or she had remained in office. Bonds issued pursuant to this part are fully negotiable. 100689. Upon the approval of its legislative body, a city, county, or special district that contains territory within the boundaries of an agency may loan moneys to the agency to fund those activities described in the redevelopment project plan approved and adopted pursuant to Part 5 (commencing with Section 100650). Moneys loaned pursuant to this provision may be repaid at an interest rate that does not exceed the Local Agency Investment Fund rate that is in effect on the date that the loan is approved by the governing board. Notwithstanding any other provision of law, it is the intent of the Legislature that any loan issued to an agency by a governmental entity shall be repaid fully unless agreed to otherwise between the agency and the governmental entity. 100690. (a) Every two years after the issuance of debt pursuant to Section 100684, the agency shall contract for an independent financial and performance audit. The audit shall be conducted according to guidelines established by the Controller. A copy of the completed audit shall be provided to the Controller, the Director of Finance, and to the Joint Legislative Budget Committee. (b) Upon the request of the Governor or of the Legislature, the Bureau of State Audits may conduct financial and performance audits of districts. The results of the audits shall be provided to the agency, the Controller, the Director of Finance, and the Joint Legislative Budget Committee. SEC. 3. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB 11 4/5/2019 April 16, 2019 Item #5 Page 108 of 145 SB 15 (Portantino) Property tax revenue allocations: successor agencies. PROBLEM Redevelopment's dissolution deprived many local agencies of the primary tool they used to eliminate physical and economic blight, fi- nance new construction, improve public infra- structure, rehabilitate existing buildings, and increase the supply of affordable housing. Cal- ifornia has consistently failed in meeting the state's housing needs, especially in dealing with low-income affordable housing. BACKGROUND California is in the midst of a serious housing crisis. California is home to 21 of the 30 most expensive rental-housing markets in the coun- try, which has had a disproportionate impact on the middle class and the working poor. A major factor in this crisis is the state's hous- ing shortage. From 1954-1989, California constructed an average of more than 200,000 new homes annually, with multifamily housing accounting for the largest share of housing production. Since then, however, construction has dropped significantly. HCD estimates that approximately 1.8 million new housing units-180,000 new homes per year-are needed to meet the state's projected population and housing growth by 2025. From the early 1950s until they were dissolved in 2011, California redevelopment agencies (RDAs) used property tax increment financing to pay for economic development projects in blighted areas. Generally, property tax incre- ment financing involves a city or county form- ing a tax increment-financing district to issue bonds and use the bond proceeds to pay pro- ject costs within the boundaries of a specified project area. To repay the bonds, the district captures increased property tax revenues that are generated when projects financed by the bonds increase assessed property values within the project area. Until their dissolution, state law required RDAs to set-aside 20% of funding generated in a project area to increase the supply of low- and moderate-income housing. At the time RDAs were dissolved, the Controller estimated that statewide, RDAs were obligated to spend $1 billion on affordable housing. In 1992-93 and 1993-94, in response to serious budgetary shortfalls, the state permanently re- directed almost one-fifth of total statewide property tax revenue from cities, counties, and special districts to K-12 and community col- lege districts. Under the changes in property tax allocation laws, county auditors deposit the redirected property tax revenue into a county-· wide fund for schools, also known as a coun- ty's Educational Revenue Augmentation Fund (ERAF). In 2017-18, cities, counties, and spe- cial districts deposited around $9.6 billion into county ERAFs. SUMMARY This bill, for the 2020-21 fiscal year and each fiscal year thereafter, would require the county auditor of a county in which a successor agen- cy, as defined, is located to decrease the amount of ad valorem property tax revenue that is otherwise required to be allocated to the county Educational Revenue Augmentation Fund by the countywide local-state sustainable investment amount and to allocate a commen- surate amount to the successor agencies that are located within the county. The bill would require the successor agencies to use these funds for specified purposes, including to in- crease the availabilit of affordable housin . Office of Senator Anthony J. Portantino SB XXX-Fact Sheet Contact: Name-(916) 651-4025 or Email April 16, 2019 Item #5 Page 109 of 145 EXISTING LAW Existing property tax law requires the county auditor, in each fiscal year, to allocate property tax revenue to local jurisdictions in accordance with specified formulas and procedures, and generally provides that each jurisdiction shall be allocated an amount equal to the total of the amount of revenue allocated to that jurisdic- tion in the prior fiscal year, subject to certain modifications, and that jurisdiction's portion of the annual tax increment, as defined. Exist- ing property tax law also reduces the amount of ad valorem property tax revenue that would otherwise be annually allocated to the county, cities, and special districts pursuant to these general allocation requirements by requiring, for purposes of determining property tax reve- nue allocations in each county for the 1992-93 and 1993-94 fiscal years, that the amount of property tax revenue deemed allocated in the . prior fiscal year to the county, cities, and spe- cial districts be reduced in accordance with certain formulas. Existing property tax law requires that the rev- enues not allocated to the county, cities, and special districts as a result of these reductions be transferred to the Educational Revenue Augmentation Fund in that county for alloca- tion to school districts, community college dis- tricts, and the county office of education. Version: 4/2/2019 SUPPORT Office of Senator Anthony J. Portantino SB XXX-Fact Sheet Contact: Name-(916) 651-4025 or Email April 16, 2019 Item #5 Page 110 of 145 Bill Text -SB-15 Property tax revenue allocations: successor agencies. Page 2 of2 The California Constitution requires the state. to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. The Community Redevelopment Law authorized the establishment of redevelopment agencies in communities to address the effects of blight, as defined. Existing law dissolved rede·relopment agencies as of February 1, 2012, and provides for the designation of successor agencies, as defined, to wind down the affairs of the dissol·v'ed redevelopment agencies. This bill would state the intent of the Legislature to enact legislation relating to redevelopment. Vote: majority Appropriation: no Fiscal Committee: fteyes Local Program: fteyes THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 97.82 is added to the Revenue and Taxation Code, to read: 97.82. (a) Notwithstanding any other provision of law, for the 2020-21 fiscal year and for each fiscal year thereafter, the county auditor of a county in which a successor agency, as defined in paragraph (2), is located shall do both of the following: (1) Decrease the total amount of ad valorem property tax revenue that is otherwise required to be allocated to a county's Educational Revenue Augmentation Fund by the countywide local-state sustainable investment amount. (2) Allocate funds in the amount of the reduction described in paragraph (1) to successor agencies, as defined in Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code, that are located within the county. (b) A successor agency shall use the funds allocated by the county auditor pursuant to this section for the following purposes: (1) To increase the availability of affordable housing. (2) To increase the availability of high-quality jobs though the rehabilitation, construction, and maintenance of housing infrastructure, including public safety facilities. (3) To promote strong neighborhoods by supporting local community planning and engagement efforts to revitalize and restore neighborhoods, including by repairing parks, aging infrastructure, and public safety facilities. (c) Any ad valorem property tax revenue that would have otherwise been allocated to schools had this section not been enacted shall be backfilled with moneys from the General Fund. This subdivision does not constitute a change in, but is declaratory of existing law. (d) The revenue a/location modifications made pursuant to subdivision (a) shall not be considered in determining, for purposes of Section 96.1, the amount of property tax revenue allocated to a jurisdiction in the prior fiscal year. SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. SECTIO~i 1.It is the intent of the Legislature to enact legislation relating to redeveloprnent. https:/ /leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_ id=201920200S815 4/5/2019 April 16, 2019 Item #5 Page 112 of 145 SB 532 (Portantino) Redevelopment: bond proceeds: affordable housing PROBLEM The closure of redevelopment agencies across California and the removal of financing for affordable housing development have reduced the number of new affordable housing units and financing structures and incentives for de- velopment statewide. Glendale has a 2011 Subordinate Taxable Tax Allocation Bond in amount of approximately $27 million of "non- housing" dollars from the Central Glendale Redevelopment Project Area that it is prevent- ed from utilizing by the State because it is not allowed under the dissolution of redevelop- ment act (H&S 34191.4c). Rather than de- fease or cancel this bond, Glendale requests to delegate it toward 100% affordable housing purposes and in accordance with program re- quirements of Section 34176.1 (f) of the Cali- fornia Health and Safety Code (Code) govern- ing the use of Low and Moderate Income Housing Asset Fund (LMIHAF) by successor housing agencies. This would provide a sig- nificant a one-tiine, sole source of funds, local- ly controlled, for affordable housing. BACKGROUND As part of the 2011 Budget Act, approval was granted dissolving the state's 400 plus rede- velopment agencies (RDAs). After a period of litigation, RDAs were officially dissolved as of February 1, 2012. These agencies served · as an important component in affordable hous- ing development. Redevelopment provided the largest ongoing source of revenue for af- fordable housing in California as local rede- velopment agencies provided roughly $1 bil- lion annually for affordable housing. In Glen- dale, affordable housing funding in the amount of $9 million was generated annually by rede- velopment activities. The City of Glendale has a long record and commitment to affordable housing develop- ment and investment. Using redevelopment dollars for affordable housing, the City has provided new affordable rental housing for seniors, families, and special needs house- holds, as well as home ownership opportuni- ties for low and moderate income first time home buyers. The City has assisted in devel- oping a total of 1,193 new construction units for both rental and ownership opportunities at an investment of approximately $96 million in City affordable housing funds. In terms of leveraging funding with other sources of dol- lars to help fully finance and develop these projects, the City has successfully leveraged approximately $190 million in other non-City (federal, State, County) funds. Despite these accomplishments, rising housing costs are im- pacting Glendale residents and nearly all Cali- fornia communities. Housing production, on a statewide level, has not kept pace with increas- ing demand, while dwindling income and rev- enue sources have compounded the problem. SUMMARY This bill, notwithstanding the requirement that the remaining bond proceeds be used to de- fease the bonds or to purchase those same out- standing bonds on the open market for cancel- lation, would authorize a successor agency to use the remaining bond proceeds for the pur- poses of increasing, improving, and preserving affordable housing, as defined. The bill, if the remaining bond proceeds are used for these purposes, would require the Last and Final Recognized Obligation Payment Schedule to be adjusted to allow for the allocation of reve- nues from the Redevelopment Property Tax Trust Fund to the successor agency for purpos- es of paying the remaining principal and inter- est on the bonds. Office of Senator Anthony J. Portantino SB 532-Fact Sheet Contact: Benjamin Edelstein-(916) 651-4025 or Ben.Edelstein@sen.ca.gov April 16, 2019 Item #5 Page 113 of 145 EXISTING LAW Existing law dissolved redevelopment agen- cies and community development agencies as of February 1, 2012, and provides for the des- ignation of successor agencies that are required to wind down the affairs of the dissolved rede- velopment agencies. Existing law requires the Department of Finance to issue a finding of completion to a successor agency upon con-· firmation by the county auditor-controller that specified payments have been fully made by the successor agency. Existing law requires any successor agency that has been issued a finding of completion to use bond proceeds derived from bonds issued on or after January 1, 2011 , in excess of the amounts needed to satisfy approved enforceable obligations, in a manner consistent with the original bond cov- enants, subject to certain requirements, includ- ing a requirement that no more than 5% of the proceeds derived from the bonds be expended, unless the successor agency has an approved Last and Final Recognized Obligation Pay- ment Schedule, in which case the agency is authorized to expend no more than 20% of the proceeds derived from the bonds, subject to specified adjustments. Existing law requires remaining bond proceeds that cannot be spent pursuant to those requirements to be used at the earliest possible date to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation. SUPPORT City of Glendale (Sponsor) Version: 3/12/2019 Office of Senator Anthony J. Portantino SB 532-Fact Sheet Contact: Benjamin Edelstein-(916) 651-4025 or Ben.Edelstein@sen.ca.gov April 16, 2019 Item #5 Page 114 of 145 Bill Text -SB-532 Redevelopment: bond proceeds: affordable housing. Page 2 of 4 SECTION 1. Section 34191.4 of the Health and Safety Code is amended to read: 34191.4. The following provisions shall apply to any successor agency that has been issued a finding of completion by the department: (a) All real property and interests in real property identified in subparagraph (C) of paragraph (5) of subdivision (c) of Section 34179.5 shall be transferred to the Community Redevelopment Property Trust Fund of the successor agency upon approval by the Department of Finance of the long-range property management plan submitted by the successor agency pursuant to subdivision (b) of Section 34191.5 unless that property is subject to the requirements of any existing enforceable obligation. (b) (1) Notwithstanding subdivision (d) of Section 34171, upon application by the successor agency and approval by the oversight board, loan agreements entered into between the redevelopment agency and the city, county, or city and county that created the redevelopment agency shall be deemed to be enforceable obligations provided that the oversight board makes a finding that the loan was for legitimate redevelopment purposes. (2) For purposes of this section, "loan agreement" means any of the following: · (A) Loans for money entered into between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency under which the city, county, or city and county that created the former redevelopment agency transferred money to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose, and where the former redevelopment agency was obligated to repay the money it received pursuant to a required repayment schedule. (B) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency under which the city, county, or city and county that created the former redevelopment agency transferred a real prope.rty interest to the former redevelopment agency for use by the former redevelopment agency for a lawful purpose and the former redevelopment agency was obligated to pay the city, county, or city and county that created the former redevelopment agency for the real property interest. (C) (i) An agreement between the former redevelopment agency and the city, county, or city and county that created the former redevelopment agency under which the city, county, or city and county that created the former redevelopment agency contracted with a third party on behalf of the former redevelopment agency for the development of infrastructure in connection with a redevelopment project as identified in a redevelopment project plan and the former redevelopment agency was obligated to reimburse the city, county, or city and county that created the former redevelopment agency for the payments made by the city, county, or city and county to the third party. (ii) The total amount of loan repayments to a city, county, or city and county that created the former redevelopment agency for all loan agreements described in clause (i) shall not exceed five million dollars ($5,000,000). (3) If the oversight board finds that the loan is an enforceable obligation, any interest on the remaining principal amount of the loan that was previously unpaid after the original effective date of the loan shall be recalculated from the date of origination of the loan as approved by the redevelopment agency on a quarterly basis, at a simple.interest rate of 3 percent. The recalculated loan shall be repaid to the city, county, or city and county in accordance with a defined schedule over a reasonable term of years. Moneys repaid shall be applied first to the principal, and second to the interest. The annual loan repayments provided for in the recognized obligation payment schedules shall be subject to all of the following limitations: (A) Loan repayments shall not be made prior to the 2013-14 fiscal year. Beginning in the 2013-14 fiscal year, the maximum repayment amount authorized each fiscal year for repayments made pursuant to this subdivision and paragraph (7) of subdivision (e) of Section 34176 combined shall be equal to one-half of the increase between the amount distributed to the taxing entities pursuant to paragraph (4) of subdivision (a) of Section 34183 in that fiscal year and the amount distributed to taxing entities pursuant to that paragraph in the 2012-13 base year, provided, however, that calculation of the amount distributed to taxing entities during the 2012-13 base year shall not include any amounts distributed to taxing entities pursuant to the due diligence review process established in Sections 34179.5 to 34179.8, inclusive. Loan or deferral repayments made pursuant to this subdivision shall be second in priority to amounts to be repaid pursuant to paragraph (7) of subdivision (e) of Section 34176. (B) Repayments received by the city, county, or city and county that formed the redevelopment agency shall first be used to retire any outstanding amounts borrowed and owed to the Low and Moderate Income Housing Fund of https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_ id=201920200SB532 4/5/2019 April 16, 2019 Item #5 Page 116 of 145 Bill Text -SB-532 Redevelopment: bond proceeds: affordable housing. Page 3 of 4 the former redevelopment agency for purposes of the Supplemental Educational Revenue Augmentation Fund and shall be distributed to the Low and Moderate Income Housing Asset Fund established by subdivision (d) of Section 34176. Distributions to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1. (C) Twenty percent of any loan repayment shall be deducted from the loan repayment amount and shall be transferred to the Low and Moderate Income Housing Asset Fund, after all outstanding loans from the Low and Moderate Income Housing Fund for purposes of the Supplemental Educational Revenue Augmentation Fund have been paid. Transfers to the Low and Moderate Income Housing Asset Fund are subject to the reporting requirements of subdivision (f) of Section 34176.1. (c) (1) (A) Notwithstanding Section 34177.3 or any other conflicting provision of law, bond proceeds derived from bonds issued on or before December 31, 2010, in excess of the amounts needed to satisfy approved enforceable obligations shall thereafter be expended in a manner consistent with the original bond covenants. Enforceable obligations may be satisfied by the creation of reserves for projects that are the subject of the enforceable obligation and that are consistent with the contractual obligations for those projects, or by expending funds to complete the projects. An expenditure made pursuant to this paragraph shall constitute the creation of .excess bond proceeds .obligations to be paid from the excess proceeds. Excess bond proceeds obligations shall be listed separately on the Recognized Obligation Payment Schedule submitted by the successor agency. The expenditure of bond proceeds described in this subparagraph pursuant to an excess bond proceeds obligation shall only require the approval by the oversight board of the successor agency. (B) If remaining bond proceeds derived from bonds issued on or before December 31, 2010, cannot be spent in a manner consistent with the bond covenants pursuant to subparagraph (A), the proceeds shall be used at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation. (2) Bond proceeds derived from bonds issued on or after January 1, 2011, in excess of the amounts needed to satisfy approved enforceable obligations, shall be used in a manner consistent with the original bond covenants, subject to the following provisions: (A) No more than 5 percent of the proceeds derived from the bonds may be expended, unless the successor agency meets the criteria specified in subparagraph (B). (B) If the successor agency has an approved Last and Final Recognized Obligation Payment Schedule pursuant to Section 34191.6, the agency may expend no more than 20 percent of the proceeds derived from the bonds, subject to the following adjustments: (i) If the bonds were issued during the period of January 1, 2011, to January 31, 2011, inclusive, the successor agency may expend an additional 25 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 45 percent. (ii) If the bonds were issued during the period of February 1, 2011, to February 28, 2011, inclusive, the successor agency may expend an additional 20 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 40 percent. (iii) If the bonds were issued during the period of March 1, 2011, to March 31, 2011, inclusive, the successor agency may expend an additional 15 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 35 percent. (iv) If the bonds were issued during the period of April 1, 2011, to April 30, 2011, inclusive, the successor agency may expend an additional 10 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 30 percent. (v) If the bonds were issued during the period of May 1, 2011, to May 31, 2011, inclusive, the successor agency may expend an additional 5 percent of the proceeds derived from the bonds, for a total authorized expenditure of no more than 25 percent. (C) RemaiAiAg (i) Except as provided in clause (ii), remaining bond proceeds that cannot be spent pursuant to subparagraphs (A) and (B) shall be used at the at the earliest date permissible under the applicable bond covenants to defease the bonds or to purchase those same outstanding bonds on the open market for cancellation. (ii) (I) Notwithstanding clause (i), the remaining bond proceeds may be used for the purposes of increasing, improving, and preserving affordable housing. https:/ /leginf o .legislature. ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200SB 5 3 2 4/5/2019 April 16, 2019 Item #5 Page 117 of 145 Bill Text -SB-532 Redevelopment: bond proceeds: affordable housing. Page 4 of 4 (II) If the remaining bond proceeds are used for the purposes authorized in subclause (I), the Last and Final Recognized Obligation Payment Schedule shall be adjusted to allow for the allocation of revenues from the Redevelopment Property Tax Trust Fund to the successor agency for purposes of paying the remaining principal and interest on the bonds. (III) For purposes of this clause, both of the following definitions shall apply: (ia) "Affordable housing" means housing available at affordable housing cost, and occupied by, persons and families of low or moderate income as defined by Section 50093, lower income households as defined by Section 50079.5, very low income households as defined by Section 50105, and extremely low income households as defined by Section 50106. (ib) ''Affordable housing cost" has the same meaning as "affordable housing cost" described in Section 50052.5. (D) The expenditure of bond proceeds described in this paragraph shall only require the approval by the oversight board of the successor agency. (3) If a successor agency provides the oversight board and the department with documentation that proves, to the satisfaction of both entities, that bonds were approved by the former redevelopment agency prior to January 31, 2011, but the issuance of the bonds was delayed by the actions of a third-party metropolitan regional transportation authority beyond January 31, 2011, the successor agency may expe,nd the associated bond proceeds in accordance with clause (i) of subparagraph (B) of paragraph (2) of this section. (4) Any proceeds derived from bonds issued by a former redevelopment agency after December 31, 2010, that were issued, in part, to refund or refinance tax-exempt bonds issued by the former redevelopment agency on or before December 31, 2010, and which are in excess of the amount needed to refund or refinance the bonds issued on or before December 31, 2010, may be expended by the successor agency in accordance. with clause (i) of subparagraph (B) of paragraph (2) of this section. The authority provided in this paragraph is conditioned on the successor agency providing to its oversight board and the department the resolution by the former redevelopment agency approving the issuance of the bonds issued after December 31, 2010. (d) This section shall apply retroactively to actions occurring on or after June 28, 2011. The amendment of this section by the act adding this subdivision shall not result in the denial of a loan under subdivision (b) that has been previously approved by the department prior to the effective date of the act adding this subdivision. Additionally, the amendment of this section by the act adding this subdivision shall not impact the judgments, writs of mandate, and orders entered by the Sacramento Superior Court in the following lawsuits: (1) City of Watsonville v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001910); (2) City of Glendale v. California Department of Finance, et al. (Sac. Superior Ct. Case No. 34-2014-80001924). https ://leginf o .legislature.ca. gov /faces/billN avClient.xhtml ?bill _id=201920200 SB 5 3 2 4/5/2019 April 16, 2019 Item #5 Page 118 of 145 Bill Text -AB-1640 Local government finance: budget reserves. Page 2 of2 SECTION 1. The Legislature finds and declares as follows: (a) Some cities and counties hold high levels of budget reserves, olten in excess of 50 percent, while human services, homelessness, the housing crisis, and other important health and safety concerns remain unaddressed and unfunded. (b) It is important to hold cities and counties accountable for failing to address critical needs of the people in their communities. SEC. 2. Section 50058 is added to the Government Code, to read: 50058. (a) On or before . September 1, 2020, and annually on that date therealter, each local government shall submit a written report to the State Controller's office on how it plans to spend any of its budget reserves, subject to subdivision (b), during the next five fiscal years on the following priorities: (1) Mental and behavioral healthcare and services. (2) Affordable housing. (3) Homelessness. ( 4) Foster youth programs. (5) LGBTQ+ centers. (6) Veterans services. (7) Special needs youth and adult services. (8) In-home supportive services. (b) This section shall only apply to a local government if the local government's budget reserve in the immediately preceding fiscal year was in excess of 30 percent of the total expenditures of the local government in that fiscal year. (c) For purposes of this section: (1) "Budget reserves" means an amount that is the difference between the total revenue of the local government in a fiscal year, including all revenue generated by taxes, assessments, and fees, and the total expenditures of that local government in that fiscal year. (2) "Local government" means a city, including a charter city, or a county. SEC. 3. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. https:/ /leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill _id=201920200AB 1640 4/5/2019 April 16, 2019 Item #5 Page 120 of 145 Bill Text -AB-1031 Youth Substance Use Disorder Treatment and Recovery Program Ac... Page 2 of 6 programs to describe a continuum of care to identify, treat, and support recovery from substance misuse for youth under 21 years of age, as specified. The bill would require the department to report to the Legislature during budget hearings regarding the status of the implementation of the l3FO§FaA9. program, and to annually report to the Legislature specified utilization data. The bill would additionally require the department to update its Medi-Cal billing codes to include specified services, based on whether those services are medically necessary. The bill would make related findings and declarations. Vote: majority Appropriation: no Fiscal Committee: yes Local Program: no THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares all of the following: (a) Califor.nia families are confronted with challenging problems associated with drug and alcohol use among children and youth under 21 years of age. Families are in desperate need of assistance in the management and treatment of substance use in the youth population. (b) In 2015-16, the National Survey on Drug Use and Health classified slightly more than 5 percent of California adolescents 12 to 17 years of age, inclusive, as misusing either alcohol or illicit drugs, whi le substance use disorder (SUD) rates among young adults 18 to 25 years of age, inclusive, were as high as 15 percent. (c) Multiple studies have established that the developing brains of children and youth are more vulnerable to alcohol and other drug-related problems than those of adults. Most adults suffering from SUDs developed a pattern of alcohol and other drug dependence as adolescents (18 years of age or under) or young adults (19 to 25 years of age, inclusive). Youth with SUDs have high rates of cooccurring mental health disorders, along with other health, social, academic, relational, and legal challenges. Due to these complexities, services for youth require a different approach ·to drug prevention, ea rly intervention, and treatment of SUDs than that used for adults. (d) The draft "Youth Services Policy Manual" from the State Department of Health Care Services notes that" ... addressing adolescent substance use is a cost-effective, common-sense approach to preventing future challenges in other social service and public health related areas .... " (e) This act recognizes that federal, state, and local drug control spending assigns low priority to early intervention and treatment of youth SUDs, despite the extensive research that confirms that treatment is the most cost-effective way to address SUDs and drug-related crimes. (f) In California, the primary strategy for addressing youth substance use and related problems has been placed on the Division of Juvenile Justice, probation departments, and other law enforcement agencies. (g) California counties, which administer community alcohol and drug prevention and treatment programs, have long been in need of resources to develop youth-specific treatment and early intervention programs for children, adolescents, and young adults who have or are at risk of developing an SUD. (h)CalifeFAia has veF; few 13uelic sectoF treatffieAt resources fur youth SUDs. Pro13osition 64, the CoAtrel, Rei;ulate aAd Tax Adult Use sf MarijuaAa Act (AUMA), dedicates a 13ortioA of Aet reveAue to drui; educatioA, weveAtioA, early iAteFreAtioA, aAd treatA9eAt fur youth. OAe sf the stated iAteAts of Prs13ositioA 64 is to §eAerate reveAue fer ysuth SUD treatA9eAt aAd 13reveAtioA. Tax reveAues allocated to the Youth EducatioA, PreveAtion, Early Intervention and Treatffient Account (Youth Accsunt) csuld eventually 13e in the hundreds of ffiillions of dollars annually, accordin§ to a fiscal analysis of the A9easure ey the Lei;islative Analyst's Office. (h) One of the primary goals of Proposition 64 revenue disl3urseA9ents froA9 the Ysuth Account should 13e to €levelej3 64, the Adult Use of Marijuana Act, was to support a continuum of care for youth SUDs that is based on public health principles. This system of care should provide supportive services for youth that neither stigmatize nor criminalize youth substance use. (j)Pro13ositisn 64 tax revenues will 13rovide the State of CalifoFAia with a uniEjue 013130Ftunity to de,·elo13 a new, coA9A9unity eased continuuA9 of care fur the 13revention and treatffient of youth SUDs . (i) In alignment with federal guidance, a youth SUD continuum of care is developmentally relevant. This continuum of care wou ld include screening for early identification and intervention, assessment, outpatient modalities that involve families whenever possible, intensive outpatient treatment, partial hospitalization, https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB 1031 4/5/2019 April 16, 2019 Item #5 Page 124 of 145 Bill Text -AB-1031 Youth Substance Use Disorder Treatment and Recovery Program Ac... Page 3 of 6 medication-assisted treatment, case management, continuing care, recovery services and supports, parent or caregiver support, and residential treatment. (l)To accomplish these critical goals, Youth Education, Pre•t'ention, Early Intervention and Treatment Account funds from Proposition 64 revenue must remain sequestered, independent of preexisting treatment facilities for adults, and directed toward the creation and maintenance of a youth continuum of care developed by the State Department of Health Care Services in collaboration with counties, providers, and other stal<eholders. (j) Under California's Medicaid State Plan, beneficiaries under 21 years of age are eligible to receive Medicaid services pursuant to the federal mandate to provide Early Periodic Screening, Diagnostic, and Treatment (EPSDT). Under the EPSDT mandate, beneficiaries under 21 years of age are eligible to receive all appropriate and medically necessary services needed to correct and ameliorate health conditions that are coverable under Medicaid authority, including substance use disorder treatment services. Federal EPSDT statutes and regulations require states to furnish all Medicaid coverable, appropriate, and medically necessary services, regardless of whether those services are covered in the state's Medicaid State Plan. (k) EPSDT broadens the definition of medical necessity for youth and makes the full SUD benefit package available to all youth under 21 years of age, without any caps or limitations, for any youth under 21 years of age who is assessed as having or is at risk of developing a substance use disorder. SEC. 2. Chapter 4 (commencing with Section 11759) of Part 1 of Division 10.5 of the Health and Safety Code is repealed. SEC. 3. Chapter 4 (commencing with Section 11759) is added to Part 1 of Division 10.5 of the Health and Safety Code, to read: CHAPTER 4. Substance Use Disorder Treatment for Youth 11759. This act shall be known, and may be cited, as the Youth Substance Use Disorder Treatment and Recovery Program Act of 2019. 11759.1. On or before January 1, 2021, the department, in collaboration with counties and providers of substance use disorder services, shall establish regulations regarding community-based nonresidential and residential treatment and recovery programs to intervene and treat the problems of alcohol and drug use among youth under 21 years of age. 11759.2. The department, in collaboration with counties and providers of substance use disorder services, shall establish through regulation criteria for participation, programmatic requirements, treatment standards, and terms and conditions for funding. The criteria shall also include consideration of indicators of drug and alcohol use among youth. 11759.3. (a) The Legislature finds and declares that substance use manifests differently in youth than adults, and that to be effective, youth treatment must be developmentally appropriate, tailored to address the unique psychosocial needs of youth, and distinct from programs designed to treat addiction in adults. (b) Regulations promulgated under this chapter shall define and describe a comprehensive, evidence-based continuum of care to identify, treat, and support recovery from substance misuse for youth under 21 years of age. The continuum of care shall include, but need not be limited to, the following health care services: (1) Screening and assessment for substance use and cooccurring mental health conditions. (2) Collaborative treatment planning between health professionals, youth, and their families, as appropriate. (3) Outpatient substance use therapies, including substance use education, individual counseling, group counseling, and family therapy. (4) Intensive outpatient programs. (5) Partial hospitalization. (6) Medications for addiction treatment )Nhen clinically indicated and offered in combination with counseling and case management. (7) Residential treatment and detoxification. (8) Treatment for cooccurring mental health conditions. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB 1031 4/5/2019 April 16, 2019 Item #5 Page 125 of 145 Bill Text -AB-1031 Youth Substance Use Disorder Treatment and Recovery Program Ac... Page 4 of 6 (9) Case management that strengthens linkages to other health, wellness, social, and supportive services. (10) Recovery services and supports for both youth and their families, so youth have access to continuing care outside a treatment environment and family needs are addressed. (c) The department shall consider encouraging the programs and services offered under the youth continuum of care to: (1) Provide prevention strategies and early intervention opportunities. (2) Provide care that is culturally and gender competent and trauma-informed. (3) Provide nonstigmatizing care in a variety of environments including schools, homes, and other community- based locations. (4) Prioritize family engagement. (5) Support academic and work performance. (6) Be delivered by professionals with expertise in treating substance use disorders in adolescents and young adults. (7) Address cooccurring mental health conditions. 11759.4. Nothing in this chapter shall preclude regional approaches to service delivery by counties, including the utilization of community-based nonresidential and residential programs. 11759.5. Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this chapter through all-county information notices or similar written instructions until regulations are adopted. 11759.6. (aJ The department, in collaboration with the counties and providers of substance use disorder services, shall report to the Legislature, during budget hearings, regarding the status of the implementation of this chapter. (bJ (1J Beginning January 1, 2021, and each year thereafter, the department shall report to the Legislature, and publish on its internet website, the utilization data relevant to services to youth under 21 years of age. (2J The report required pursuant to this subdivision shall include, but not be limited to, all of the following: (AJ The number of unique Medi-Cal enrollees served. (BJ The number of unique Medi-Cal enrollees screened for substance use disorders. (CJ The number of assessments of youth for substance use disorders. (DJ The number of individual counseling services for youth with substance use disorders. (EJ The number of collateral services for youth with substance use disorders. (FJ The number of family therapy services for youth with substance use disorders. (GJ The number of group sessions for youth with substance use disorders. (HJ The number of intensive outpatient service sessions, meaning sessions lasting 6 to 19 hours, inclusive, provided to youth with substance use disorders. (IJ The number of partial hospitalization sessions, meaning sessions lasting 20 hours or more, provided to youth with substance use disorders. (JJ The number of medication-assisted treatment services to youth with substance use disorders. (KJ The number of case management services provided to youth with substance use disorders. (LJ The number of parent or caregiver support services. (MJ The number of residential service episodes for youth with substance use disorders. (NJ The number of youth provided with inpatient services for treatment of detoxification or withdrawal. https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB 1031 4/5/2019 April 16, 2019 Item #5 Page 126 of 145 Bill Text -AB-1031 Youth Substance Use Disorder Treatment and Recovery Program Ac... Page 5 of 6 (c) A report to be submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code. (a)It is the intent ef the Legislature that the department seel< funding fer this chapter threugh federal financial participatien for all services cevered by Medi Cal. The Legislature recemmends that the department use additional funding from cannabis ta➔E revenues in the Youth Education, Prevention, Early Intervention and Treatment Account established pursuant to the Control, Regulate and Ta)( Adult Use of Marijuana Act. 11759.7. (a) For the purposes of implementing this chapter, the department may seek funding from federal financial participation for all services covered by Medi-Cal, or from foundations or other nongovernmental sources. (b) It is-fl:lftfleF the intent of the Legislature that no more than 4 percent of funds made available to the department pursuant to subdivision (a) be expended for purposes of developing regulations, standards, and procedures to implement this chapter. (c) Each county that administers this chapter shall continue to use current behavioral health funding sources as applicable, including, but not limited to, the Behavioral Health Subaccount of the Local Revenue Fund 2011 and Drug Medi-Ca/ funds, including federal financial participation, to fund substance use disorder treatment services for Medi-Cal beneficiaries under 21 years of age who access services under this chapter. SEC. 4. Section 14059. 5 of the Welfare and Institutions Code is amended to read: 14059.5. (a) For individuals 21 years of age or older, a service is "medically necessary" or a "medical necessity" when it is reasonable and necessary to protect life, to prevent significant illness or significant disability, or to alleviate severe pain. (b) (1) For individuals under 21 years of age, a service is "medically necessary" or a "medical necessity" if the service meets the standards set forth in Section 1396d(r)(5) of Title 42 of the United States Code. (2) The department and its contractors shall update any model evidence of coverage documents, beneficiary handbooks, and related material to ensure the medical necessity standard for coverage for individuals under 21 years of age is accurately reflected in all materials. (3) The department shall update its Medi-Cal billing codes, based upon what is medically necessary for individuals under 21 years of age, to include all of the following: (A) Screening for early identification and intervention. (BJ Assessment using the American Society of Addiction Medicine criteria. (C) Residential treatment and withdrawal management. (D) Oµtpatient substance use therapies, including substance use education and individual and group counseling. (E) Family counseling. (F) Intensive outpatient treatment. (G) Medications for addiction treatment when clinically indicated. (HJ Case management. (I) Recovery services and supports. (4) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department, without taking any further regulatory action, shall implement, interpret, and make specific this subdivision by means of all-county letters, plan letters, plan provider bulletins, manuals, plan contract amendments, or similar instructions until regulations are revised or adopted. (5) By July 1, 2022, the department shall revise or adopt regulations in accordance with the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB 1031 4/5/2019 April 16, 2019 Item #5 Page 127 of 145 Bill Text -AB-I 031 Youth Substance Use Disorder Treatment and Recovery Program Ac... Page 6 of 6 (c) This section shall not be construed to limit the application of subdivisions (a) and (b) of Section 51184 of Title 22 of the California Code of Regulations. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB 1031 4/5/2019 April 16, 2019 Item #5 Page 128 of 145 reasonable alternative to using deadly force, including warnings, verbal persuasion, or other nonlethal methods of resolution or de-escalation. However, this bill specifies that officers can always invoke the self-defense law that applies to the public. If AB 392 becomes law, police departments can discipline or fire officers who use deadly force that is unnecessary, and in cases where the use of force was not in self-defense or in defense of another person, local District Attorneys could file criminal charges. This bill reflects policies that policing experts recognize as effective at better preserving life while also allowing officers the latitude needed to ensure public safety. Under President Obama, the U.S. Department of Justice helped many cities adopt similar policies, including San Francisco and Seattle. Seattle's federal monitor determined that the policy change resulted in a marked reduction in serious uses of force without compromising the safety of officers. SUPPORT ACLU of California (Co-Sponsor) Alliance for Boys and Men of Color/PolicyLink (Co-Sponsor) Anti Police-Terror Project (Co-Sponsor) Black Lives Matter -California (Co-Sponsor) California Faculty Association (Co-Sponsor) Communities United for Restorative Youth Justice (CURYJ) (Co-Sponsor) California Families United 4 Justice (Co- Sponsor) PICO California (Co-Sponsor) Silicon Valley DeBug (Co-Sponsor) STOP Coalition (Co-Sponsor) UDW America -AFSCME Local 3930 (Co- Sponsor) Youth Justice Coalition (Co-Sponsor) All Saints Church Alliance San Diego American Friends Service Committee Amnesty International USA Asian Americans Advancing Justice -California Asian Law Alliance Asian Pacific Environmental Network Asian Solidarity Collective Black American Political Association of California Brothers Sons Selves Coalition California Calls California Civil Liberties Advocacy California Latinas for Reproductive Justice California Nurses Association/National Nurses United California Pan-Ethnic Health Network California Public Defenders Association Center for African Peace and Conflict Resolution Center on Juvenile and Criminal Justice Cesar Chavez Service Club at San Diego High School Change Begins With Me Children's Defense Fund -California Roger Clark, Retired Los Angeles County Sheriffs Department Lieutenant Clergy & Laity United for Economic Justice Cloverdale Indivisible Coalition for Humane Immigrant Rights Coalition for Justice and Accountability Committee for Racial Justice Community Coalition for Substance Abuse Prevention and Treatment Council on American-Islamic Relations -CA Courage Campaign Davis People Power Disability Rights California Earl B. Gilliam Bar Association Ella Baker Center Empowering Pacific Islander Communities Fannie Lou Hamer Institute Fathers & Families of San Joaquin Feminists in Action Los Angeles Michael Gennaco, Police Practices Expert HA WK Institute Hillcrest Indivisible Human Impact Partners If/When/How: Lawyering for Reproductive Justice Japanese American Citizens League, San Jose Chapter Indivisible CA-37 Office of Assemblymember Shirley Weber · AB 392: California Act to Save Lives · Page 2 April 16, 2019 Item #5 Page 130 of 145 Indivisible CA-43 Indivisible CA: StateStrong Indivisible Colusa County Indivisible Marin Indivisible Peninsula and CA-14 Indivisible Project Indivisible San Diego Central Indivisible Sausalito Indivisible Stanislaus Indivisible South Bay -LA Indivisible Ventura Indivisible Watu Indivisibles of Sherman Oaks Initiate Justice InnerCity Struggle Jewish Voice for Peace -San Diego Chapter Justice & Witness Ministry of Plymouth United Church of Christ Justice Teams Network Kehilla Community Synagogue LA Voice League of Women Voters of California Los Angeles Black Worker Center Mid-City CAN MILPA Martin Monica, Retired Police Chief of Parlier National Association for the Advancement of Colored People -California State Conference National Center for Youth Law National Juvenile Justice Network National Lawyers Guild Los Angeles Oakland Police Commission Oakland Privacy Orchard City Indivisible Our Revolution Long Beach Pacifica Social Justice Pan African Global Trade and Development Conference Partnership for the Advancement of New Americans Paving Great Futures Peace and Freedom Party of California People Power LA I West Progressive Students of MiraCosta College Public Health Advocates Public Health Justice Collective The Resistance Northridge -Indivisible Reverend Al Sharpton Revolutionary Scholars Riverside Temple Beth El Rooted in Resistance Sacramento Area Black Caucus Sacramento Jewish Community Relations Council Sacramento LGBT Community Center Saint Mark LA United Methodist Church San Diegans for Criminal Justice Reform San Diego City College's Urban Scholar's Union San Diego LGBT Community Center San Francisco District Attorney George Gascon San Francisco No Injunctions Coalition San Francisco Public Defender's Office San Jose/Silicon Valley NAACP Santa Barbara Women's Political Committee Santa Clara University School of Law's International Human Rights Clinic Service Employees International Union (SEIU) Local 1000 Showing Up For Racial Justice (SUR]) Southeast Asia Resource Action Center SURJ Bay Area SURJ Boston SURJ Marin SURJ at Sacred Heart SURJ San Diego SURJ Santa Barbara Social & Environmental Justice Committee of the Universalist Unitarian Church of Riverside Together We Will/Indivisible -Los Gatos United Food and Commercial Workers Western States Council University of South Carolina Professor Alpert University of South Carolina Professor Stoughton W. Haywood Bums Institute We The People -San Diego White People 4 Black Lives Women For: Orange County Women's Foundation of California Youth ALIVE! Youth Forward 1 Individual OPPOSITION Anaheim Police Association Association for Los Angeles Deputy Sheriffs Office of Assemblymember Shirley Weber · AB 392: California Act to Save Lives · Page 3 April 16, 2019 Item #5 Page 131 of 145 Brawley Public Safety Employee Association Brisbane Police Officers Association California Peace Officers' Association California Statewide Law Enforcement California Rifle and Pistol Association Chula Vista Police Officers Association El Cerrito Police Employees Association Fresno Police Officers Association Glendale Police Officers' Association Hanford Police Officers' Association Hawthorne Police Officers Association Kem Law Enforcement Association Los Angeles Police Protective League Napa County Deputy Sheriffs' Association North Valley Chapter of PORAC Peace Officers Association of Petaluma Resource Protection Peace Officers Association Riverside County Sheriff's Department Riverside Sheriffs' Association Sacramento County Alliance of Law Enforcement San Diego County Probation Officers Association San Diego District Attorney Investigator's Association San Diego Harbor Police Officers Association San Francisco Police Officers Association San Joaquin County Deputy Sheriff's Association Santa Barbara County Deputy Sheriffs' Association Solano County Deputy Sheriff Association Stockton Police Officer's Association Union City Police Officer's Association Ventura County Deputy Sheriffs' Association 2 Individuals FOR MORE INFORMATION Anthony DiMartino Legislative Director Office of Assemblymember Shirley Weber 916-319-2079 Anthony.DiMartino@asm.ca.gov Office of Assemblymember Shirley Weber· AB 392: California Act to Save Lives · Page 4 April 16, 2019 Item #5 Page 132 of 145 Bill Text -AB-392 Peace officers: deadly force. Page 2 of 3 The bill would also affirmatively prescribe the circumstances under which a peace officer is authorized to use deadly force to effect an arrest, to prevent escape or to overcome resistance. Vote: majority Appropriation: no Fiscal Committee: no Local Program: no THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 196 of the Penal Code is amended to read: 196. (a) Homicide is justifiable when committed bY peace officers and those acting by their command in their aid and assistance, under any of the following circumstances: (1) In obedience to any judgment of a competent court. (2) When the homicide results from a peace officer's use of force, other than deadly force, that is in compliance with subdivision (b) of Section 835a. (3) When, except as otherwise provided in subdivision--fbr, (c), the homicide would be justifiable pursuant to Section 197, in self-defense or the defense of another person. (4) When, subject to subdivision----fet,-(c), the officer rec;1sonably believes, based on the totality of the circumstances, that the use of force resulting in a homicide is necessary to prevent the escape of a person, and all of the following are true: (A) The peace officer reasonably believes that the person has committed, or has attempted to commit, a felony involving the use or threatened use of deadly force. (B) The peace officer reasonably believes that the person will cause death or inflict serious bodily injury to another unless immediately apprehended. (C) If feasible, the peace officer has identified themselves as a peace officer and given a warning that deadly force may be used unless the person ceases flight, unless the officer has reasonable ground to believe the person is aware of these facts. (b) As used in paragraph (4) of subdivision (a), "necessary" means that, given the totality of the circumstances, an objectively reasonable peace officer in the same situation would conclude that there was no reasonable alternative to the use of deadly force that would prevent death or serious bodily injury to the peace officer or to another person. The totality of the circumstances means all facts known to the peace officer at the time and includes the tactical conduct and decisions of the officer leading up to the use of deadly force. (c) Neither this section nor Section 197 provide a peace officer with a defense to manslaughter in violation of Section 192, if that person was killed due to the criminally negligent conduct of the officer, including situations in which the victim is a person other than the person that the peace officer was seeking to arrest, retain in custody, or defend against, or if the necessity for the use of deadly force was created by the peace officer's criminal negligence. SEC. 2. Section 835a of the Penal Code is amended to read: 835a. (a) The Legislature finds and declares all of the following: (1) That the authority to use physical force, conferred on peace officers by this section, is a serious responsibility that shall be exercised judiciously and with respect for human rights and dignity and for the sanctity of every human life. The Legislature further finds and declares that every person has a right to be free from excessive use of force by officers acting under color of law. (2) That the decision by a peace officer to use force shall be evaluated carefully and thoroughly, in a manner that reflects the gravity of that authority and the serious consequences of the use of force by peace officers, in order to ensure that officers use force consistent with law and agency policies. (3) That the decision by a peace officer to use force shall be evaluated from the perspective of a reasonable officer in the same situation, based on the totality of the circumstances known to or perceived by the officer at the time, rather than with the benefit of hindsight, and that the totality of the circumstances shall account for occasions when officers may be forced to make quick judgments about using force. (4) That individuals with physical, mental health, developmental, or intellectual disabilities are significantly more likely to experience greater levels of physical force during police interactions, as their disability may affect their https://leginfo.legislature.ca.gov/faces/billN avClient.xhtml ?bill_id=201920200AB3 92 4/5/2019 April 16, 2019 Item #5 Page 134 of 145 Bill Text -AB-392 Peace officers: deadly force. Page 3 of 3 ability to understand or comply with commands from peace officers. It is estimated that individuals with disabilities are involved in between one-third and one-half of all fatal encounters with law enforcement. (b) Any peace officer who has reasonable cause to believe that the person to be arrested has committed a public offense may use reasonable force, other than deadly force, to effect the arrest, to prevent escape or to overcome resistance. (c) A peace officer who makes or attempts to make an arrest need not abandon or desist from the arrest by reason of the resistance or threatened resistance of the person being arrested. A peace officer shall not be deemed an aggressor or lose the right to self-defense by the use of reasonable force to effect the arrest or to prevent escape or to overcome resistance. A peace officer shall, however, attempt to control an incident through sound tactics, including the use of time, distance, communications, tactical repositioning, and available resources, in an effort to reduce or avoid the need to use force whenever it is safe, feasible, and reasonable to do so . This subdivision does not conflict with the limitations on the use of deadly force set forth in this section or Section 196. (d) (1) A peace officer is justified in using deadly force upon another person only when the officer reasonably believes, based on the totality of the circumstances, that such force is necessary for either of the following reasons: (A) To defend against a threat of imminent death or serJous bodily injury to the officer or to another person. (B) To prevent the escape of a fleeing suspect consistent with paragraph (4) of subdivision (a) of Section 196. (2) A peace officer shall not use deadly force against a person based on the danger that person poses to themselves, if the person does not pose an imminent threat of death or serious bodily injury to the peace officer or to another person. (3) This subdivision does not provide the legal standard and shall not be used in any criminal proceeding against a peace officer relating to the use of force by that peace officer, or to any defenses to criminal charges under Sections 196 or 197 or any other defense asserted by that officer, but may be used in any civil or administrative proceeding. (e) For purposes of this section, the following definitions shall apply: (1) "Deadly force" means any use of force that creates a substantial risk of causing death or serious bodily injury, including, but not limited to, the discharge of a firearm. (2) A threat of death or serious bodily injury is "imminent" when, based on the totality of the circumstances, a reasonable officer in the same situation would believe that a person has the present ability, opportunity, and apparent intent to immediately cause death or serious bodily injury to the peace officer or another person. An imminent harm is not merely a fear of future harm, no matter how great the fear and no matter how great the likelihood of the harm, but is one that, from appearances, must be instantly confronted and addressed. (3) "Necessary" means that, given the totality of the circumstances, an objectively reasonable peace officer in the same situation would conclude that there was no reasonable alternative to the use of deadly force that would prevent death or serious bodily injury to the peace officer or to another person. (4) "Totality of the circumstances" means all facts known to the peace officer at the time and includes the tactical conduct and decisions of the officer leading up to the use of deadly force. https://leginf o .legislature.ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200AB3 92 4/5/2019 April 16, 2019 Item #5 Page 135 of 145 intervention and alternatives to deadly force with approved methods and devices available to assist. SB 230 requires all 500+ police agencies in the state to comply with these requirements. Statistics regarding use-of-force policies for 91 of the largest police departments in the United States show the significance of these changes below: a. Only 30 of the 91 largest police departments in the nation require an officer to intervene to stop another officer from using excessive force. - b. Only 34 of the 91 largest police departments in the nation require officer to de-escalate situations, when possible, before using force. - c. Only15ofthe91 largestpolice departments in the nation specify detailed reporting requirements. 3. Requires retraining of all officers through Peace Officer Standards and Training, or POST, with periodic updates. 4. Includes in policies, guidelines for rendering medical aid when safe and reasonable. 5. Includes in policies, an officer's duty to intercede when observing excessive use of force, as well as prompt internal reporting and investigation, and the factors a supervisor must use in evaluating and reviewing all use of force incidents. 6. Includes guidelines and training on how to handle vulnerable populations, such as children, the elderly, pregnant, and the physical and developmentally disabled. SUPPORT California Police Chiefs Association (co-sponsor) Peace Officers Research Association of California (co- sponsor) Los Angeles Police Protective League (co-sponsor) Association for Los Angeles Deputy Sheriffs (co-sponsor) Riverside Sheriff's Association (co-sponsor) California Narcotic Officers Association Los Angeles County Professional Peace Officers CONTACT Adriana Zerio I Legislative Director adriana.zerio@sen.ca.gov 1916.651.4012 Fact Sheet for SB 230 I UPDATED 3/11 /19 April 16, 2019 Item #5 Page 137 of 145 Bill Text -SB-230 Law enforcement: use of deadly force: training: policies. Page 2 of 5 This bill would refine the circumstances under which a homicide by a peace officer is justifiable to those situations in which the officer reasonably believes the suspect poses an imminent threat of death or serious physical injury to the officer or others or when a fleeing suspect has committed a forcible and atrocious felony. By changing the circumstances under which a peace officer may be charged and convicted of a homicide, this bill wou ld impose a state-mandated local program. (3) Existing law establishes the Commission on Peace Officer Standards and Training in the Department of Justice and requires the commission to adopt rules establishing minimum standards regarding the recruitment of peace officers. Existing law requires the commission to develop guidelines and implement courses of instruction regarding racial profiling, domestic violence, hate crimes, vehicle pursuits, and human trafficking, among others. This bill wou ld require the commission to implement a course or courses of instruction for the regular and periodic training of law enforcement officers in the use of force. The bill would require the commission to develop uniform, minimum guidelines for adoption and promulgation by California law enforcement agencies for the use of force, as specified. The bill would encourage law enforcement agencies to adopt and promulgate a use of force policy and wou ld state the. intent of the Legislature that each law enforcement agency adopt, promulgate, and require regular and periodic training consistent with the agency's policy that complies with the guidelines developed under this bill. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason . With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares: (a) The highest priority of California law enforcement is safeguarding the life, dignity, and liberty of all persons, without prejudice to anyone. (b) Law enforcement officers shall be guided by the principle of reverence for human life in all investigative, enforcement, and other contacts between officers and members of the public. When officers are called upon to detain or arrest a suspect who is uncooperative or actively resisting, may attempt to flee, poses a danger to others, or poses a danger to themselves, they should consider tactics and techniques that may persuade the suspect to voluntarily comply or may mitigate the need to use a higher level of force to resolve the situation safely. (c) Vesting officers with the authority to use reasonable force and to protect the public welfare requires monitoring, evaluation, and a careful balancing of all interests. (d) The authority to use force is a serious responsibility given to peace officers by the people who expect them to exercise that authority judiciously and with respect for human rights, dignity, and life. (e) The intent of this act is to establish the minimum standard for policies and reporting procedures regarding California law enforcement agencies' use of force. The purpose of these use of force policies is to provide law enforcement agencies with guidance regarding the use and application of force to ensure such applications are used only to effect arrests or lawful detentions, overcome resistance, or bring a situation under legitimate control. (f) The legal standard used to determine the lawfulness of a use of force is the Fourth Amendment to the United States Constitution. The decision of the United States Supreme Court in Graham v. Connor (1989) 490 U.S. 386 states in part, "[t]he reasonableness of a particular use of force must be judged from the perspective of a reasonable officer on the scene, rather than with the 20/20 vision of hindsight .... The calculus of reasonableness must embody allowance for the fact that police officers are often forced to make split-second judgments -in circumstances that are tense, uncertain, and rapidly evolving -about the amount of force that is necessary in a particular situation" and "the test of reasonableness under the Fourth Amendment is not capable of precise definition or mechanical application." https://leginf o .legislature. ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200SB23 0 4/5/2019 April 16, 2019 Item #5 Page 139 of 145 Bill Text -SB-230 Law enforcement: use of deadly force: training: policies. Page 3 of 5 (g) No policy can anticipate every conceivable situation or exceptional circumstance which officers may face. In all circumstances, officers are expected to exercise sound judgment and critical decision making when using force options. (h) Every instance in which a firearm is discharged, including exceptional circumstances, shall be reviewed by the department on a case-by-case basis to evaluate all facts and to determine if the incident is within policy and in accordance with training. SEC. 2. Chapter 17.4 (commencing with Section 7286) is added to Division 7 of Title 1 of the Government Code, to read: CHAPTER 17.4. Law Enforcement Use of Force Policies 7286. (a) For the purposes of this section: (1) "Deadly force" means force reasonably anticipated and intended to create a substantial likelihood of causing death or great bodily injury. (2) "Feasible" means capable of being done or carried out to successfully achieve the arrest or lawful objective without increasing risk to the officer or another person. (3) "Imminent" does not mean immediate or instantaneous, but shall include an officer's objectively reasonable belief that a danger of injury or death may occur if force is not applied. (4) "Law enforcement agency" means any police department, sheriff's department, district attorney, county probation department, transit agency police department, school district police department, the police department of any campus of the University of California, the California State University, or community college, the Department of the California Highway Patrol, and the Department of Justice. (b) Each law enforcement agency shall maintain a policy that provides guidelines on the use of force, and the following: (1) Utilizing deescalation techniques, crisis intervention teams, and other alternatives to force when feasible. (2) Balancing the amount of force with the seriousness of the suspected offense and the reasonably perceived level of actual or threatened resistance. (3) An officer's duty to report potential excessive force to a superior officer when present and observing another officer using force that the officer believes to be beyond that which is objectively reasonable under the circumstances based upon the totality of information actually known to the officer. (4) Taking into account the possibility that other officers may have additional information regarding the threat posed by a subject, an officer's duty to intercede when present and observing another officer using force that is clearly beyond that which is objectively reasonable under the circumstances. (5) Approved methods and devices available for the application of force with corresponding guidelines for each. (6) The officer's responsibility to carry out duties, including use of force, in a manner that is fair and unbiased. (7) Specific guidelines for the application of deadly force. (8) Prompt internal reporting and notification requirements regarding a use of force incident, including reporting use of force incidents to the Department of Justice in compliance with Section 12525.2. (9) The role of supervisors in the review of use of force applications. (10) Ensuring medical assistance is procured, when reasonable and safe to do so, for persons following a use of force incident. (11) Training standards and requirements relating to an officer's demonstrated knowledge and understanding of their law enforcement agency's use of force policy. (12) Training and guidelines regarding vulnerable populations, including, but not limited to, children, elderly persons, people who are pregnant, and people with physical and developmental disabilities. (13) Situations under which the discharge of a firearm at a moving vehicle may or may not be permitted. (14) Factors for evaluating and reviewing all use of force incidents. https :/ /leginfo .legislature.ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200SB23 0 4/5/2019 April 16, 2019 Item #5 Page 140 of 145 Bill Text -SB-230 Law enforcement: use of deadly force: training: policies. Page 4 of 5 (15) Minimum entry level and annual hourly training and course titles required to meet the objectives in the use of force policy. (c) Each law enforcement agency shall make their use of force policy accessible to the public. (d) This section does not supersede the collective bargaining procedures established pursuant to the Myers-Milias- Brown Act (Chapter 10 (commencing with Section 3500) of Division 4 ), The Ralph C. Dills Act (Chapter 10.3 (commencing with Section 3512) of Division 4), or the Higher Educati,on Employer-Employee Relations Act (Chapter 12 (commencing with Section 3560) of Division 4). SEC. 3. Section 196 of the Penal Code is amended to read: 196. Homicide is justifiable--w!,ef\ if committed by public officers and those acting by their cornrnand in their aid and assistance, either a peace officer or by an individual acting under the command of a peace officer in the peace officer's aid and assistance, under any of the following circumstances: (a) In obedience to any judgment of a competent Court; or, court. (b) When necessarily committed in overcoming actual resistance to the execution of sorne legal process, or in t he discharge of any other legal duty; or, discharge of a legal duty if the officer reasonably believes the suspect poses an imminent threat of death or serious physical injury to the officer or others. (c) When necessarily committed in retaking felons who have been rescued or have escaped, or when necessarily cornrnitted in arresting persons charged with felony, and who are fleeing frorn justice or resisting such arrest. escaped. (d) When necessarily committed in arresting a suspect who is fleeing from justice or resisting arrest if the officer reasonably believes that the suspect poses a significant threat of death or serious physical injury to the officer or others. (e) When necessarily committed in arresting a suspect who is fleeing if the officer reasonably believes the fleeing suspect has committed a forcible or atrocious felony. SEC. 4. Section 13519.10 is added to the Penal Code, immediately following Section 13519.9, to read: 13519.10. (a) (1) The commission shall implement a course or courses of instruction for the regular and periodic training of law enforcement officers in the use of force and shall also develop uniform, minimum guidelines for adoption and promulgation by California law enforcement agencies for use of force. The guidelines and course of instruction shall stress that the use of force by law enforcement personnel is of important concern to the community and law enforcement and that law enforcement should safeguard life, dignity, and liberty of all persons, without prejudice to anyone. These guidelines shall be a resource for each agency executive to use in the creation of a use of force policy that the agency is encouraged to adopt and promulgate, and that reflects the needs of the agency, the jurisdiction it serves, and the law. (2) As used in this section, "law enforcement officer" includes any peace officer of a local police or sheriff's department or the California Highway Patrol, or of any other law enforcement agency authorized by law to use force to effectuate an arrest. (b) The course or courses of basic training for law enforcement officers and the guidelines shall include adequate consideration of each of the following subjects: (1) Legal standards for use of force. (2) Duty to intercede. (3) The reasonable force doctrine. (4) Deescalation. (5) Tactical communications. https ://leginf o .legislature.ca. gov /faces/billN avClient.xhtrnl ?bill_ id=201920200SB23 0 4/5/2019 April 16, 2019 Item #5 Page 141 of 145 Bill Text -SB-230 Law enforcement: use of deadly force: training: policies. (6) Use of force options. (7) Rendering medical aid. (8) Supervisory responsibilities. (9) Use of force review and analysis. (10) Dealing with vulnerable populations. (11) Guidelines for the use of deadly force. (12) State required reporting. (13) Reasonable alternatives to use of force. Page 5 of 5 (c) Law enforcement agencies are encouraged to include, as part of their advanced officer training program, periodic updates and training on use of force. The commission shall assist where possible. (d) (1) The course or courses of instruction, the learning and performance objectives, the standards for the training, and the guidelines shall be developed by the commission in consultation with appropriate groups and individuals having an interest and expertise in the field on use of force. The groups and individuals shall include, but not be limited to, law enforcement agencies, police academy instructors, subject matter experts, and members of the public. (2) The commission, in consultation with these groups and individuals, shall review existing training programs to determine the ways in which use of force training may be included as part of ongoing programs. (e) It is the intent of the Legislature that each law enforcement agency adopt, promulgate, and require regular and periodic training consistent with an agency's specific use of force policy that, at a mini.mum, complies with the guidelines developed under subdivisions (a) and (b). SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the . California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or _infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution. However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. https ://leginfo .legislature.ca. gov /faces/billN avClient.xhtml ?bill_ id=201920200SB23 0 4/5/2019 April 16, 2019 Item #5 Page 142 of 145 . r Exhibit 5 CITY OF CARLSBAD Page 1 of 2 Policy No .. __ =-3 9..._ ____ _ COUNCIL POLICY STATEMENT Date Issued 4/19/94 General Subject: Administration Effective Date 4 / 2 0 / 9 4 Cancellation Date ------Supersedes No.39 dated 2/19/91 Specific Subject: Legislative Program Copies to: City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File PURPOSE: To establish the guidelines of the City's legislative program. BACKGROUND: Historically, the City handled legislation in an ad hoc procedure. As the number of bills the City addressed increased, so did the need to establish a program that more efficiently and effectively handled legislative matters. Staff researched the programs of several cities in San Diego Country to develop an appropriate and flexible program for Carlsbad. POLICY: 1. Participate in the County Legislative Coalition, which will serve to promote the unified position of municipalities in San Diego County to the State and Federal legislature. 2. Adopt a legislative platform expressing the City's general legislative concerns. 3. The Mayor or his/her designee will review specific bills for consistency with the platform. Bills of interest to the City not covered by the platform shall be forwarded to the entire City Council for consideration. 4. Only the City Council may authorize a letter be sent on behalf of the City to oppose or support legislation. If a Board, Committee, Commission or advisozy group believes the City should send such a letter, staff members for that group will forward the request to the City Manager's Office. The request will be processed according to this policy . April 16, 2019 Item #5 Page 143 of 145 CITY OF CARLSBAD Page 2 of 2 Policy No. __ 3,.,.9..,_ ____ _ COUNCIL POLICY STATEMENT Date Issued.--""4.s./-=1=9.s.{=9=4 ___ _ General Subject: Specific Subject: Copies to: PROCEDURE: Administration Legislative Program Effective Date 4 / 2 o / 9 4 Cancellation Date ------SupersedesNo.39 dated 2/19/91 City Council, City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File A Adopt the County Legislative Coalition's platform as a base and add to it as needed. B. Staff will monitor the League of California Cities' Legislative Bulletin, the San Diego County Legislative Coalition, SAND AG and department heads to learn about bills which would have a direct and significant impact on the City of Carlsbad. C. Staff will present pertinent bills to the Mayor or his/her designee for review. If a bill is consistent with the adopted platform, the Mayor or his/her designee will authorize appropriate action. If a bill is not covered by the adopted platform, it will be placed on the Council Agenda for consideration. D. Staff will present requests from a Board, Committee, Commission or advisory group to support or oppose legislation to the Mayor or his/her designee for review. If a bill is consistent with the adopted platform, the Mayor or his/her designee will authorize appropriate action. If a bill is not covered by the adopted platform, it will be placed on the Council Agenda for consideration. E. Staff will provide the full Council with a monthly update on the progress of key bills. April 16, 2019 Item #5 Page 144 of 145 ..__,. ·------------------ CITY OF CARLSBAD COUNCIL POLICY STATEMENT Policy No. 1 Date Issued Exhibit 6 8-18-70 General Subject: ADMINISTRATION Effective Date 8-18-70 Specific Subject: Adoption of Council Policy Statements Cancellation Date Supersedes No. Copies to: City Council,-City Manager, City Attorney, Department and Division Heads, Employee Bulletin Boards, Press, File {Res. No. 1775) PURPOSE: To clearly identify policies of the City Council not covered by ordinances, and to make such policies of the City. Council readily available to all con- cerned: STATEMENT OF POLICY: 1. There is hereby established the Council Policy Manual. 2. The Policy Manual shall be in loose-leaf form. 3. Policies of the Council shall not conflict with any ordinance of the City. 4. All policies shall receive fo~r (4) Counc,] votes • 5. A policy shall be in writing and include, as required : (1) The background (2) Its purpose (3) A concise statement of the policy PROCEDURE: A. 8. c. Any member of the City Council, the City Manager, or the Ci .ty Attor- ney m~y place a proposed policy on the Council Agenda, provided that a written statement of the proposal is distributed prior to Council consideration. The Council may direct the creation of a policy and assign its prepa- ration to a member of the Council or t~e City Manager. Prior to final adoption, t~e City Manager, in cooperation with the City Attorney, shall assign a brief title and place ~he policy within a prescribed format. D. Following adoption the policy shall be indexed and printed for general distribution to City Officials and interested parties. . . ... April 16, 2019 Item #5 Page 145 of 145 Morgen Fry From: Sent: To: Cc: Subject: Morgen, Council Internet Email Tuesday, April 16, 2019 9:27 AM Morgen Fry Jason Haber FW: Discussion on S850 Please distribute to council as this relates to agenda item no. 5 Andi From: Kris Wright I Sent: Monday, April 15, 2019 6:49 PM To: Council Internet Email <CityCouncil@carlsbadca.gov> Subject: Discussion on S850 Salutations to the Mayor and Council Members, All Receive -Agenda Item # S For the Information of the: PTY COUNt:;IL Date~ CA ✓ cc ✓ CM JL_ coo L DCM (3) ~ As a 40 year resident of Carlsbad who has seen the Growth Management Plan in action, I would urge you all to take an official position against SBSO, Scott Weiner's senate bill which would literally destroy our Growth Management Plan. As many of you know, I have been researching the Housing and development past and future, studying the Housing Element and mandates .laid out by the State of California. We have a proven plan that works; we have an affordable (inclusionary) housing ordinance and Carlsbad is a proven visionary while providing a reasonable plan for the future. As we approach buildout, we will need to carefully consider our housing issues along with a careful placement of affordable housing in our city without succumbing to generalized state actions which mostly affect Northern California not Carlsbad. Hopefully we will not lose our own local control, which allows us to continue us to have such a great city. Pfease, I hope, all of you will vote to voice an objection to SBSO. Thank you, Kris Wright Kris Wright 1 Morgen Fry Subject: FW: opposition to SB-50 From: Todd Macey Sent: Tuesday, April 16, 2019 2:04 PM To: Council Internet Email <CityCouncil@carlsbadca.gov> Subject: opposition to SB-SO Hello Council, All Receive -Agenda Item# ...2. For the Informat ion of the: I S1Tt COUNCIL Date ':2.lfil.B CA ..,,.,..---cc v' CM K_ coo ~OCM (3) v - I'm writing to urge that you pass a resolution opposing the SB-SO bill making its way through the state legislature. The removal of significant local controls from the decision making process cannot be allowed. I strongly urge you to resist this bill as much as possible and to pass a resolution to that effect. Kind Regards, Todd Macey Carlsbad/92008 resident 1 Morgen Fry Subject: FW: Request resolution to oppose SB SO From: amanda.macey Sent: Tuesday, April 16, 2019 12:19 PM To: Council Internet Email <CityCouncil@carlsbadca.gov> Subject: Request resolution to oppose SB SO Dear Council, Please draft and send to Sacramento a resolution opposing SB 50. Regards, Amanda Macey, 92008 1 /\II Receive -Agenda Item # 5 For the Information of the: CITY COUNCIL -Oa-te ~1-li>h"-1-EA "-· -cc ✓ ---- CM _:!____ COO _:L DCM (3) ~ - Morgen Fry Subject: FW: SB 50 opposition -----Original Message----- From: Ranee Sent: Tuesday, April 16, 2019 1:12 PM To: Council Internet Email <CityCouncil@carlsbadca.gov> Subject: SB 50 opposition I am requesting that you pass a Resolu~ion opposing SBS0. This is not right for our City: Sincerely, Ranee and Bob Kozlowski Carlsbad, CA Sent from my iPad 1 /\IJ Receive -Agenda Item# 2 For the Information of the: CITY COUNCIL Date t.\-\1~\lqcA__-j_cc_{__ cM_.::!...coo_:L_,ocM(3) ✓ Morgen Fry To: Andrea Dykes Subject: RE: Oppose SB 50 · From: Ba.rbara .Hamilton Sent: Tuesday, April 16, 2019 2:36 PM To: Andrea Dykes <Andrea.Dykes@carlsbadca.gov> Subject: Fwd: Oppose SB 50 Andi, Can you please share this email and the attachments with all council? Barbara Hamilton Carlsbad City Council Member barbara.hamilton@carlsbadca.gov Office·: 760-434-2830 Cell: 760-717-6627 Follow my council Face book page, and sign up for my Newsletter. Open office hours: Thursdays 3-Spm, Council Offices at 1200 Carlsbad Village Drive. Call Andi at 760-434-2830 to confirm schedule . . Your thoughts, your words, your actions: they matter. Begin forwarded message: From: Sharon Commins Date: April 16, 2019 at 2:33:07 PM PDT To: Barbara Hamilton <Barbara.Hamilton@CarlsbadCA.gov> Subject: Re: Oppose SB SO Hi Barbara: You're welcome. LA voted to oppose today. 12-0, 3 absences Also, SB 590 is NOT the only time bomb. /\II Receive -Agenda Item# [; For the Information of the: . SIT~ COUNCIL ' Date !:ttlki8CA ✓ CC ✓ CM ~coo ~DCM (3) ✓ There are at least 14 other bills including a couple which propose to define expanding the ½ mile radius for major transit stops to include those of "on demand" routes [AB 1560, CEQA 7 and "local car share drop off or pickup" [AB 881, ADUs7 I would presume if those get through, they would wind up inSB 1818, the density bonus law as well as the statutes pertaining to transit. 1 My methodology was to look at Wieners co-sponsors/friends in Assembly and Seriate to see what else is buried in 2019-20 proposed housing bills which were submitted before the deadline. I checked for potential changes in existing definitions--like transit stops--as well as words related to "streamlining" and "sensitive communities". Clearly, the strategy is piecemealing key parts of SB 50 so it becomes difficult to track components and the heart of the bill gets through even if it takes 3 or 4 separate bills to accomplish this. I did a matrix for my people in LA and I've attached it. I don't know how many of these bills are actually moving through, or have been amended to date, but the sheer number of them is of great concern. Best, Sharon From: Barbara Hamilton <Barbara.Harnilton@CarlsbadCA.gov> Sent: Tuesday, April 16, 2019 2:21 PM To: Sharon Commins Subject: Re: Oppose SB 50. Than.k you, Sharon. We are watching the proposed bills and will have a conversation at council tonight. Barbara Hamilton Carlsbad City Council Member barbara.hamilton@carlsbadca.gov Office: 760-434-2830 Cell: 760-717-6627 Follow my council Face book page, and sign up for my Newsletter. Open office hours: Thursdays 3-Sprn, Council Offices at 1200 Carlsbad Village Drive. Call Andi at 760-434-2830 to confirm schedule. Your thoughts, your words, your actions: they matter. On Apr 16, 2019, at 2:18 PM, Sharon Commins wrote: Hi Barbara: . I live on Valencia Ave and I believe we talked briefly while you were going door to door before your successful election. eq•ui•ty/'ekwade/Submit noun 1. the quality of being fair and impartial." equity of treatment" 2 . I synonyms: fairness, fair-mindedness, justness, justice, equitableness, fair play; Self-determination is at the heart of equity. If you don't have the right to determine your future, you don't have equity. SB 50 stops local community input cold. It transfers the power to set FAR and use to the state. It creates a whole new class of one size fits all, 'by-right' projects which go straight to permit. Furthermore, a 7 year wait time for development of tenant occupied properties means nothing to the massive offshore wealth seeking to speculate on transit/job locations in OUR neighborhoods by building more luxury housing and displacing OUR community. The present state legislative system which allows ideological, lobbyist-written blunt instrument legislation such as SB 50 to be introduced without extensive vetting in local public hearings prior to consideration needs reform. The recent corruption scandals in our state legislature did NOT result in any changes in how business is done: "Besides being the butt of a few late-night comedy jokes, the reality is that the Calderon scandal served only to deepen people's mistrust of politicians and led to a few reform bills that were quietly killed," said Kathryn Phillips, a spokeswoman for California Common Cause." https://www.latimes.com/politics/la-pol-ca-ronald- calderon-released-20190119-story.html 3 Former state Sen. Ronald Calderon released after serving three years in political corruption case ;_ Los Angeles Times Three years after he went to prison following a political corruption scandal, former state Sen. Ronald Calderon completed his sentence and was released from a halfw, house Friday, ending a dark ... www.latimes.com In conclusion, I am profoundly disturbed by a few politicians' trendy, oligarch-ish thinking that local democracy is past its shelf life. I would think the ongoing situation in our nation would be enough of a warning about losing our local democracy, including the right to have meaningful, collaborative input into planning our neighborhoods for a wide variety of housing typologies. Please oppose SB 50. Kind regards, Sharon Commins, writing as a private citizen not as: CoChair, ReCodeLA Zoning Advisory Committee [Los Angeles] CoChair, Westside Regional Alliance of Councils Land Use and Planning Committee [Los Angeles] Member, Plancheck Steering Committee PlancheckNC [Los Angeles] and Past Chair, Mar Vista Community Council [Los Angeles] 4 AB 1279 BLOOM Housing: 4-plexes by right in all sf zones within High Resourcos Aroas 65913.6 AB725 WICKS, WIENER, SKINNER Housing: Radically limits SF Use In RHNA Goals to 20% of abovo moderate income housing 65583.2 AS I"> 1"i f'RH-01V1J\~J Tr:-tn!,it: CEOA· 1=>:p.11ul•; tht\ (ipf1a1:1on td 111:1Jn, {1:-1n ;, stopo:, to cou11t t111111 '::'-ftlh,111lon1] !?e~1on:d P! 1u ~,top•; tl,.1 t may MEVEP. hr h111lt SB 330 SKINNER: FULL STOP of your local planning processes for 10 years 65358.5 65850.1 0 65905.5 65913.3 65913.10 17921.8 SB 50 Density Bonus Expands state zoning control via FAR & Use to 1/2 ml radius of all Major Transit Stops WIENER, CABALLERO, HUESO, MOORLACH, SKINNER, & ABMs BURKE, KALRA, KILEY, LOW, ROBERT RIVAS, TING, WICKS "T(o·llt'·,j'i: ·(~ ;:,;,,"\·. t· 11;'-'lttH)•,. ;),:..;fi~j ~COi!: :,: :'/l:1jor ":r~:r.1'.>~! ·;•o~)'":. ·~·, --~~-· ~,,(_1n·:;:·4n:ir !l:.·.:H·, ~-~:,·~ l 210625 :.!Wf.2.·IO AB 1485 WICKS Housing: Streamlining: Back up to SB 50 65913.4 INCOMP!..ETE TEXT BURKE Housing: Streamlining: Higher Densities: Fast tracks high density 65913 INCOMPl.ETE TEXT C\O !J['.'.·l BLOO~I AOU·< -fr:,n'.~it: ,·;r:Of\: i·.:·,:p:.111'1:~ public tr;H,~el 1.k•firfr(;hr: 'to 1'k•(·;·1I (..·:u ~t~~H·r\ <lrop-oH.'' ~/1.1~•d:,l0--. tiiq f1.:~nsit,, '~"Jf~l'','\"tht.•rp DIAGRAM: SB 50 AND 8 RELATED 2019-2020 BILLS These 8 bills, 6 of which are introduced by SB 50 co-authors. all contain various "pieces" of SB 50's key concepts https: //leg info. legislature .ca .gov /faces/billCompareC!ient.xhtm l?bill id= 201920200SB50. There are sweeping changes to California planning and environmental laws contemplated such as: • Definitions expanding the ½ mile radius for major transit stops to include those of "on demand" routes [AB 1560, CEQA] and "local car share drop off or pickup" [AB 881, ADUs] • Limiting single family use towards RHNA goals [AB 725] or eliminating low density areas altogether by requiring cities to approve fourplexes by right in SF zones in "high resource areas" [AB 1279] Some of these bills have incomplete texts. They could be easily configured-individually or collectively--to serve as surrogates should SB 50 be significantly amended, or fail adoption .. • SB 330 SKINNER: Housing Crisis Act-WILL BE AMENDED TO KNOCK OUT COASTAL ZONE HEIGHT LIMITS https: //leg info. legislature .ca .gov /faces/billCompa reClient.xhtml?bill id =201920200SB330 • AB 1485 WICKS Housing: Streamlining: Sensitive Communities https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill id=201920200AB1485 • AB 1562 BURKE: Housing: Streamlining: Higher Densities https://leginfo.legislature.ca.gov/faces/bi!ICompareClient.xhtml?bill id=201920200AB1562 • AB 1560 FRIEDMAN, GABRIEL: Transit: CEQA: Expands Definition of Major Transit Stops to "on-demand" https: //leg info. legislature .ca.gov /faces/billCompareClient.xhtml?bill id= 201920200AB1560 • AB 881 BLOOM: ADUs Transit: CEQA: Expands public transit definition to "local car share drop-off https: //leg info. legislature .ca.gov /faces/billCompareClient.xhtml?bill id =201920200AB881 • AB 1515 FRIEDMAN: Transit: CEQA: Expands definition of major transit stops to include future regional plan transit stops https: //leg info. legislature.ca .gov /faces/billCompareClient.xhtml?bill id =201920200AB1515 • AB 725 WICKS, WIENER, SKINNER: Housing:Umits SF Use In RHNA Goals https: //leg info. legislature .ca.gov /faces/billCompareClient. xhtml?bill id= 2019 20200AB725 • AB 1279 BLOOM: Housing: 4-plexes by right in all sf zones within High Resources Areas , https://leginfo.legislature.ca.gov/faces/billCompareClient.xhtml?bill id=201920200AB1279 They aren't the only ones, either. MORE POTENTIALLY RELATED PIECES OF THE PUZZLE: • AB 68 TING, GLORIA, SKINNER, WIENER: allow multiple ADUs on sf property https: //leg info. legislature .ca .gov /faces/billCompareClient.xhtml?bill id= 201920200AB68 • AB 587 . FRIEDMAN, GABRIEL: Sale of ADUs https: //leg info. legislature .ca .gov /faces/billCompareClient.xhtml?bill id= 201920200AB587 • AB 1239 CUNNINGHAM: incomplete text: intent of the Legislature to enact legislation that would ensure regional housing needs are being met https: //leg info. legislature .ca.gov /faces/b illCompa reClient.xhtm l?b i II id= 201920 200AB1239 • AB 1561 GARCIA: freezes all local ordinances which might increase housing costs https: //leg info. legislature .ca .gov /faces/billCompareClient.xhtml?bill id =201920200AB1561 • AB 1706 QUIRK : streamlining and benefits to developers of middle-income housing projects https: //leg info. legislature.ca .gov /faces/billCompareClient.xhtml?bill id= 201920200AB1706 • SB 13 WIECKOWSKI, BEALL, WIENER, GLORIA, SKINNER, LEVINE: incomplete text: reduce impact fees for creating ADUs https: //leg info. legislature .ca.gov /faces/billCompareClient.xhtml?bill id =201920200SB13 Prepared by Sharon Commins, private citizen March 2019 Tammy McMinn From: Council Internet Email Sent: Cc: Wednesday, April 17, 2019 9:05 AM Jason Haber; City Clerk Subject: FW: S850 City Council Members, This email came in late yesterday, before the meeting. Andi From: drdianeb@ Sent: Tuesday, April 16, 2019 3:28 PM To: Council Internet Email <CityCouncil@carlsbadca.gov> Subject: SBSO Esteemed Mayor and council: As a 26.5 year resident of Carlsbad, I request that you please formulate a resolution to oppose S850. I am very concerned that this is an attempt by state legislators who do not even live in our area, to disrupt and override the General Plan in Carlsbad, which has worked very well for years. Carlsbad is already working on solutions for housing, and has done well so far. Thank you for your consideration. Diane Bedrosian 1 Tammy McMinn From: Council Internet Email Sent: To: Wednesday, April 17, 2019 9:06 AM City Clerk Cc: Jason Haber Subject: FW: Tonite Council meeting -SB 50 FYI -----Original Message----- From: Diane Rivera Sent: Tuesday, April 16, 2019 4:38 PM To: Matthew Hall <Matt.Hall@carlsbadca.gov>; Priya Bhat-Patel <Priya.Bhat-Patel@CarlsbadCA.gov>; Keith Blackburn <Keith.Blackburn@carlsbadca.gov>; Barbara Hamilton <Barbara.Hamilton@CarlsbadCA.gov>; Cori Schumacher <Cori.Schumacher@CarlsbadCA.gov>; Council Internet Email <CityCouncil@carlsbadca.gov> Subject: Tonite Council meeting -SB SO Honorable Mayor Honorable Mayor Pro Tern Council Members Dear all, Please pass a resolution tonite to oppose SB SO. Your "No On SB SO" vote must reach Sacramento my tomorrow, April 17th early AM. Thank you Diane Rivera 92008 Sent from my iPhone 1 I To the members of th~: CITY COUNCIL Date 4\uol It.\ CA ✓ cc ✓ ' CM _/coc:;-_ COO__!_ DCM (3). J April 16, 2019 Council Memorandum To: Honorable Mayor Hall .iffl.flHli.w~ers of the City Council From: Scott Chadwick, City M na {city of Carlsbad Re: Responses to Questions rom April 15, 2019 City Council Briefings Agenda Item No. 1-REPORT ON CITY INVESTMENTS _, Question 1: "All pooled investments have been made in accordance 'Nith the city's Investment Policy adopted January 2, 1985 and last revised January 8, 2019." Can you ple~se confirm that the City Treasurer makes recommendations only, and will be bringing the policy back to Council for concurrence in regard to divestment from fossil fuels? Answer: City Council has the final authority in matters of investment decisions within the constraints of the investment policy. Although the City Treasurer annually revises the City's Investment Policy, the City Council majority has to approve all changes to the Investment . Policy. Question 2: Regarding Exhibit 8, can you please expand on how the Park Development Fund is used? Answer: These funds are used to acquire park land and develop city parks, in-lieu of a developer building a park themselves. There are four funds broken out by quadrant within the city with an addition~! fund for Zone 5. These five funds equal the $7,738,237 shown in Exhibit 8 to the staff report. Question 3: Are the Gas Tax funds already allocated for specific mobility projects? Answer: A majority of the Gas Tax funds (including S81) have been allocated/programmed for specific projects. There is some flexibility for re-programming projects or adding new projects. There are specific rules that govern the spending of Gas Tax funds (including SBl). These projects are identified in the city's adopted capital improvement program budget for FY 2018- 19 on page J-2 of the capital improvement summary by fund section. Agenda Item No. 4-COMMUNITY CHOICE ENERGY TECHNICAL FEASIBILITY STUDY , Question 1: How is the Council Contingency Fund used here, and in general how has it been used· by Council? Answer: Per the-staff report dated 7/11/2017, Council authorized staff to spend up to $60,000 for the city's share of a regional Community Choice Energy Technical Feasibility Study. This is City Manager's Office City Hall 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-4820 t Honorable Mayor Hall and Members of the City Council April 16, 2019 Page 2 being led by the City of Encinitas. See the staff report for additional information: http://edocweb/HPRMWebClient/HPRMServiceApi/Record/477095/File/Document. Staff presented a report to Council on the use of Council contingency funds on 1/29/19. Exhibit 4 of that staff report provides a detailed list of how the Council' contingency has been used since Fiscal Vear 2012-13. See the staff report for additional information: http:// edocwe b/H PRMWe bCI ient/H PRMServiceApi/Reco rd/528800/Fi le/Document. Question 2: What is the current balance in the Fund? Are there already other specified allocations earmarked from this balance? Answer: The balance as of March 31, 2019 in the Council contingency fund is $1,162,490. At this time, no other specified allocations have been earmarked from this balance. Only Council and the grant approvals authorized in Council Policy No. 51 have the ability tC? use these funds. Question 3: Are we differentiating between "renewable" and "GHG-free" in our CCE goal? From the agenda item, it looks like the two are used interchangeably, but they are not the same. Answer: Yes, the power supply portfolios analyzed in the feasibility study (and as discussed in questions 2 and 3 of the FAQ provided in Exhibit 2 to the staff report) do differentiate between "renewable" and "GHG-free" resources, as defined by state law. Agenda Item No. 5 -PRIORITY STATE LEGISLATIVE REPORT AND CONSIDER CREATION OF A . LEGISLATIVE COMMITTEE Question 1: Regarding AB 847, what would 85% of our regional housing needs be, and would that be assessable for us to achieve in order to receive funding as a result of this bill? Does the bill eliminate incentives which would otherwise be available for affordable housing? -Answer: The AB 847 Fact Sheet provided as part of the April 16, 2019, City Council packet (see item 5, .exhibit 4) notes local jurisdictions under the proposed bill would receive a direct allocation of transportation funding if they "issue completed entitlements, building permits, or certificates of occupancy for 85% or more of their share of regional housing needs for their low and very-low income housing categories." However, it appears this provision has been deleted from the bill text. · Based on the latest Annual Housing Progress Report (AHPR), prepared for 2013-2018. and presented to City Council last month, Carlsbad has completed 16.5% of its very low and low- income regional housing need (265 of 1,605 units). The city would need to complete 1,100 more units in this income category in the remaining three years of the reporting period to meet the 85% threshold. The Fact Sheet also describes a "10-percent selection priority bonus" for certain agency funding applications if the agency has issued permits for at least 85% of its mo9erate-income housing need. Per the latest AHPR, the city has completed 24% of its moderate-income regional housing Honorable Mayor Hall and Members of the City Council April 16, 2019 Page 3 need (257 of 1,062 units) and would need to complete 650 more units in the next three years to meet 85%. Since 2013, the city has annually completed an average 474 homes. About 84% are homes affordable to above moderate-income households. Regarding the bill's elimination of any incentives, the proposed bill text is minimal. It would establish a competitive grant program to cities to offset transportation impact fees. The text does not discuss potential funding sources for the grant program or loss of incentives that might otherwise be available to affordable housing. The bill does note transit-oriented development projects would have preference in a competitive grant program. While this development type is not defined, it may exclude affordable housing development in Carlsbad not located near the train stations. Question 2: Regarding SB 50, what is Carlsbad's current jobs to housing ratio? How does the Housing Accountability Act (HAA) restrict demolition of existing housing? Answer: Carlsbad's current jobs-to-housing ratio is 1.6:1. We have 1.6 jobs to each housing unit. ) The HAA does not contain any restrictions on demolition of existing housing. As currently proposed, SB SO contains the following restriction: in order for a developer to request the development incentives in SB 50, the project cannot be located on a site that is occupied by tenants, or has been occupied by tenants in the past 7 years. Question 3: Regarding AB 11, SB 5, SB 15, what are the essential differences between these bills focused on making up the affordable housing gap since the end of RDAs? Answer: Because there is not a lot of detail with any of these bills yet and the expectation is that they all may be revised significantly over coming weeks, staff has completed a higher-level analysis which indicates the following differences as we understand the bills today. ABll has an unspecified state commitment for funding. The bill provides economic development tools similar to the old redevelopment program, and is primarily for infrastructure development. It has a requirement for 30% of funds to be used for affordable housing. It has a unique condition that formation of an infrastructure and affordable housing agency could not be created if.it has a negative impact on the state. It relies on an award of funding from the state based on review of a resolution of intention for a proposed project plan. The new agency can use affected taxing entity's share of property tax if the affected taxing entity consents. This may prove to be difficult to obtain the financing for this program. SBS allows for the creation of new redevelopment programs for affordable housing and investment for neighborhood revitalization, using post redevelopment tools. It will have less flexibility than previous redevelopment programs, and less resources for economic Honorable Mayor Hall and Members of the City Council April 16, 2019 Page 4 development. It is proposed to have an appropriation of funding from the State to back fill lost revenue to school districts, but also has a "rainy day" clause that can be invoked by the State if the provision of financial support must be suspended by the state. It will require a 30% inclusionary requirement for affordable housing. It also will have a State Oversight Board that will be established to review and approve all proposed projects. SB15 is primarily a funding program through the Department of Finance for certain infrastructure projects. Cities would apply to the Department of Finance for funding for certain purposes and affordable housing. It requires an appropriation of property tax revenues by the State. Question 4: Regarding SB 532, does Carlsbad also still have funds left over from RDA? A successor agency? Answer: Neither the Carlsbad Redevelopment Agency nor its Successor Agency had tax increment funds or bond proceeds left over to be expended on eligible projects at the time that the State moved forward to dissolve all redevelopment agencies. We have two debts to be repaid -tax increment bonds and city loans to the Agency. The loan repayment from Agency to City requires 20% to be set-aside for affordable housing for low income households. We have approximately $2.8 million available for expenditure. Question 5: Regarding AB 392, SB 230, what are the major differences in these two bills? Answer: AB 392 revises the legal standard for use of deadly force by peace officers, by limiting it to those situations where it is necessary to defend against a threat of imminent serious bodily injury or death to the officer or to another person. SB 230 requires law enforcement agencies to have a policy on the minimum standard on the use of force. It also calls for more and standardizes police training, documenting departmental policies, and an emphasis on utilizing . de-escalation techniques or other alternatives to force when feasible. cc: Celia Brewer, City Attorney Gary Barberio, Deputy City Manager Paz Gomez, Deputy City Manager Laura Rocha, Deputy City Manager Jason Haber, Assistant to the City Manager Debbie Fountain, Community & Economic Development Director Jason Haber, Assistant to the City Manager April 16, 2019 Priority State Legislation and Legislative Committee Recommended Action 1.Receive bill analyses summarizing priority state legislation identified by the City Council on March 19, 2019. 2.Consider the creation of a City Council legislative committee. Legislative Program •City Council Policy No. 39 •Legislative Platform –Position Statements •League of California Cities •Legislative Consultants –California Strategies & Advocacy Taking Positions on Priority Bills •Support •Oppose •Oppose unless amended •Support if amended •Watch •Take no further action City of Carlsbad April 16, 2019 Monique Ramos, Associate Partner Kathrina Gregana, Legislative Advocate CALIFORNIA STRATEGIES & ADVOCACY, LLC California Legislation •AB 136 (Quirk-Silva) Personal Income Tax Law: deductions: charitable contributions. •As of 4/1/2019 -Previously: Substance Abuse Programs -amended to Personal Income Tax Law. •AB 1640 (Boerner Horvath) Local government finance: budget reserves. •Would require each local government to submit a written report to the State Controller’s office on how it plans to spend any of its budget reserves during the next five years on specified priorities. •Two-Year Bill –the bill will not be moving this year •SB 6 (Beall) Residential development: available land. •Would require the Department of General Services to create a public and searchable database of local lands suitable and available for residential development, as well as information regarding state and local surplus properties and vacant properties, as specified. •Carlsbad General Plan includes inventory of sites suitable and available for residential development. •SB 532 (Portantino) Redevelopment: bond proceeds: affordable housing. •Allows redevelopment successor agencies to use bond proceeds in excess of what they need to cover existing obligations to fund affordable housing projects. •Carlsbad has no excess bond proceeds. Recommended for no further action…CALIFO RN I A STRAT EGIES & A DVOCAC Y, LLC •SB 4 (McGuire) Housing. •Streamlined approval process for projects within ½ mile of transit station •Coastal zone exclusion •15 foot height bonus over max. allowed within ½ mi. of transit station & for TOD •Eliminates parking requirements •Streamlined approval process for fourplexes within single family residential zones •By-right housing approvals •Requires prevailing wage and PLAs for projects with 50 units or more •Status: Senate Environmental Quality –Hearing Date: April 24th •Carlsbad impact: Bill provisions would apply within ½ mile of the Carlsbad Village and Carlsbad Poinsettia Coaster Stations. Growth Management Plan compliance concerns. Coastal Zone exclusion. Housing/Land Use/ Transportation/Redevelopment CAL I FORN I A STRATEGIE S & ADVOCA C Y, LLC •SB 5 (Beall) Affordable Housing and Community Development Investment Program. •Provides up to $2B, establishes an application process, a process for distributing funds, and accountability measures for the following eligible uses: •Affordable Housing •Transit-oriented development •Infill Development •Neighborhood Revitalization and Restoration •Protecting Communities from Effects of Sea-level Rise •Status: Senate Appropriations –Hearing Date: April 22nd •Carlsbad impacts: Could provide funding support for affordable housing and sea-level rise adaptation projects. Housing/Land Use/ Transportation/Redevelopment CAL I FORN I A STRATEGIE S & ADVOCA C Y, LLC •AB 847 (Grayson) Housing: transportation-related impact fees grant program. •Requires the Dept of Housing and Community Development, upon appropriation by the Legislature, to establish a competitive grant program to award grants to cities and counties •Offset up to 100% of any transportation-related impact fees exacted upon a qualifying housing development project, as defined, by the local jurisdiction •Status: Assembly Housing and Community Development Hearing: April 24th •Carlsbad impacts: Could incentivize affordable housing development in general, with increased benefit for transit-oriented development (TOD) projects near the Carlsbad Village and Carlsbad Poinsettia Coaster Stations. Housing/Land Use/ Transportation/Redevelopment CAL I FO RN I A STRAT EGIES & A DVOCACY, LLC •SB 15 (Portantino) Property tax revenue allocations: Local-State Sustainable Investment Program. •Would authorize a city, a county, or a specified joint powers agency to apply to the Department of Finance for funding for projects that further certain purposes, including increasing the availability of affordable housing. •Status: Senate Housing –Hearing Date: April 22nd •Carlsbad impacts: Could provide additional funds to successor agency for construction of affordable housing. Housing/Land Use/ Transportation/Redevelopment CAL I FO RN I A STRAT EGIES & A DVOCACY, LLC •SB 50 (Wiener) Planning and zoning: housing development: incentives. •Unlimited density near high-quality transit and in job-rich, high-opportunity areas •Requirements to provide low-income housing in new development •55-foot height limit with unlimited density and no minimum parking requirement within ½ mile of major transit stop •Up to three density bonus incentives •Status:Sen Governance and Finance –Hearing Date: April 24th •Carlsbad impacts: Bill provisions would apply within ½ mile of the Carlsbad Village and Carlsbad Poinsettia Coaster Stations.There are no qualifying “high-quality bus corridors” in Carlsbad. More definition/analysis is needed to determine how “jobs-rich” and “high-opportunity area” provisions apply. Housing/Land Use/ Transportation/Redevelopment CAL I FO RN I A STRAT EGIES & A DVOCACY, LLC •AB 11 (Chiu) Community Redevelopment Law of 2019. •Would allow cities and counties to create affordable housing and infrastructure agencies (AHIAs) to fund infrastructure and a variety of community improvements. •Would require that 30% of funding generated be set-aside for affordable housing activities. •Status: Assembly Local Government –Hearing Date: April 24th •Carlsbad impacts: Could provide a new tool to fund infrastructure improvements, community facilities and affordable housing projects . Housing/Land Use/ Transportation/Redevelopment CALI FORN I A STRAT EGIES & A DVOC A C Y, LLC •AB 1031 (Nazarian) Youth Substance Use Disorder Treatment and Recovery Program Act of 2019. •Would require the Department of Health Care Services (DHCS) to develop regulations for a comprehensive continuum of substance use disorder (SUD) care for California youth under age 21. •Status: Assembly Appropriations •Carlsbad impacts: No unique impacts to Carlsbad identified. Public Health CALI FORN I A STRAT EGIES & A DVOC A C Y, LLC •AB 392 (Weber) Peace officers: deadly force. •Would revise the legal standard for use of deadly force by peace officers, by limiting it to those situations where it is necessary to defend against a threat of imminent serious bodily injury or death to the officer or to another person. •Status: Assembly Rules •Carlsbad impacts: Increases the legal standards applied to Carlsbad peace officers’ use of deadly force. Safety Services CALI FORN I A STRAT EGIES & A DVOC A C Y, LLC •SB 230 (Caballero) Law enforcement: use of deadly force: training: policies. •Requires law enforcement policies on the minimum standard for use of force •Calls for more and standardized police training •Requires documentation of departmental policies •Emphasis on utilizing de-escalation techniques or alternatives to force when feasible •Status: Senate Public Safety –Hearing Date: April 23rd •Carlsbad impacts: Fiscal and operational impacts associated with new policy development and training requirements. Safety Services CALI FORN I A STRAT EGIES & A DVOC A C Y, LLC Legislative Engagement Legislative Calendar January•Jan 7 –Legislature reconvenes •Jan 10 –Budget must be submitted by Governor•Jan 25 –Last day to submit bill requests to the Office of Legislative Counsel February•Feb 22 –Last day for bills to be introduced March•Budget sub-committees start hearing the Governor’s budget•Policy committees start to hear legislationApril•April 11 –Spring Recess begins•April 22 –Legislature reconvenes•April 26 –Last day for policy committees to hear and report to fiscal committees fiscal bills introduced in their houseMay•May 3 –Last day for policy committees to hear non-fiscal bills •May 10 –Last day for policy committees to meet prior to house of origin deadline•May 14 –Governor’s May Revise Budget due •May 17 –Last day for fiscal committees to hear house of origin bills. •May 15 –24 –Budget sub-committee’s complete hearings (dates are approximate)•May 27 –June 7 –Budget Conference Committee meets to resolve difference (dates are approximate)•May 28-31 –Floor Session Only•May 31 –Last day for bills to be passed out of the house of origin Legislative Engagement Legislative Calendar (continued) June •June 3 –Policy committee meetings may resume to hear legislation •June 15 –Budget Bill must be passed by midnight July •July 10 –Last day for policy committees to hear fiscal bills •July 12 –Last day for policy committees to hear non-fiscal bills. Summer Recess begins. August •Aug 12 –Legislature reconvenes •Aug 30 –Last day for fiscal committees to hear bills September •Sept 3-13 –Floor Session Only •Sept 6 –Last day to amend bills on the Floor •Sept 13 –Last day for each house to pass bills. Interim Study Recess begins October •Oct 13 –Last day for Governor to sign or veto bills passed by the Legislature by September 13th and in the Governor’s possession after September 13th City Council Legislative Committee •Who would serve on the committee? •How would members be appointed? •What would the committee’s purview and primary function(s) be? •When in the legislative process would the committee be involved? •What level of staff support and resources would be required/expected? Legislative Committee Options 1.Ad-hoc City Council Subcommittee 2.Standing City Council Subcommittee 3.Advisory Group / Committee / Task Force •Membership •Duration •Purview •Brown Act Compliance •Amending Policy No. 39 April 16, 2019 Priority State Legislation and Legislative Committee