HomeMy WebLinkAbout2024-10-08; City Council Legislative Subcommittee; ; Legislative and Advocacy UpdateMeeting Date: Oct. 8, 2024
To: Legislative Subcommittee
From: Jason Haber, Intergovernmental Affairs Director
Staff Contact: Jason Haber, Intergovernmental Affairs Director
jason.haber@carlsbadca.gov, 442-339-2958
Subject: Legislative and Advocacy Update
District: All
Recommended Action
Receive updates on federal and state legislative and budget activity and recent and ongoing
advocacy efforts; discuss and provide feedback to staff, including identifying high-priority bills,
advocacy positions, funding opportunities, and items for future City Council consideration.
Discussion
Staff and the city’s contract lobbyists – Federal: Carpi & Clay / State: California Public Policy Group
–will present updates and overviews of federal and state legislative activity (Exhibits 1 and 2) and
intergovernmental matters being tracked on behalf of the city.
The Subcommittee is requested to provide feedback to help city staff and the city’s lobbying
consultants focus the city’s advocacy efforts on high-priority bills and to identify bills for future City
Council consideration.
Next Steps
Staff and the city’s contract lobbyists will monitor, evaluate, and engage the Legislative
Subcommittee in a discussion of legislative activity and proposed measures that may impact city
operations and policy priorities throughout the 2024 Legislative Session.
If the Legislative Subcommittee decides to refer any matters to the City Council, staff will work with
the City Manager to place an item on a future City Council agenda for consideration.
Exhibits
1.Carpi & Clay – Federal Update
2.California Public Policy Group – State Update
LEGISLATIVE SUBCOMMITTEE
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September 30, 2024
City of Carlsbad
Federal Update
www.carpiclay.com
Exhibit 1
FY25 Appropriations Update
Congress passed a Continuing Resolution (CR) on September 25th to fund federal agencies through December 20th by a strong bipartisan vote in both the House and Senate. The CR includes additional funding for the Secret Service and the Presidential Transition, and it extends several expiring authorizations, including the Temporary Assistance for Needy Families (TANF) and the National Flood Insurance Program (NFIP). While no additional funding was allocated
for the Federal Emergency Management Agency (FEMA), the resolution allows FEMA to spend
at an accelerated rate to respond to disasters during the CR period. Speaker Mike Johnson (R-LA) acknowledged that while the clean CR was not ideal for House Republicans, it is the most prudent option to avoid a government shutdown. Looking forward, the November elections are expected to influence the final Fiscal Year (FY) 2025 appropriations, with Congress also
needing to address significant legislative items such as FY25 National Defense Authorization
Act.
CONGRESSIONAL ACTIVITY
Bipartisan Group of Members Request FAA Community Engagement on Airplane Noise Provisions. A bipartisan group of 40 representatives sent a letter to Secretary of Transportation Pete Buttigieg and Federal Aviation Administration (FAA) Administrator Michael Whitaker requesting that the FAA prioritize community engagement as it implements airplane
noise provisions included in the recent FAA Reauthorization Act of 2024. The letter requests that FAA invite at least four community representatives to be part of the Aircraft Noise Advisory Committee created by the Reauthorization Act, as suggested by the Aviation-Impacted Communities Alliance, and encourages robust community engagement for other provisions related to aircraft noise.
California Democrats Urge Caltrans to Eliminate Redundant Federal Environmental Reviews. A group of California Democratic Representatives sent a letter to California Secretary of Transportation Toks Omishakin and Department of Transportation (Caltrans) Director Tony Tavares calling on the state to eliminate redundant and expensive federal
environmental reviews for major transportation projects. The letter states that lawmakers want
Caltrans to “recognize that California’s state environmental review process makes any federal review redundant, a waste of taxpayer funds, and needlessly dilatory” as funding from the Bipartisan Infrastructure Law (BIL) is awarded to the state.
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Senator Padilla and Representative Peters Lead Request Emergency Funding for Cross-Border Wastewater Pollution. California Senator Alex Padilla (D) and Representative Scott Peters (D) led a letter to leaders in the House and Senate requesting emergency funding for
repairs and upgrades to the South Bay International Wastewater Treatment Plant in the upcoming disaster supplemental funding package. The letter states that additional funding is needed to expand and rehabilitate the plant to protect public health, the environment, and economic concerns related to cross-border sewage flows from Mexico.
Senators Introduce Bipartisan Bill to Reform FEMA Individual Assistance Programs.
Senators Gary Peters (D-MI) and Thom Tillis (R-NC) introduced the Disaster Survivors
Fairness Act of 2024 (S. 5067) to reform FEMA’s Individual Assistance Programs. The bill would expand FEMA’s ability to fund disaster mitigation projects and expand support for disaster-affected homeowners, allow FEMA to reimburse states for state-run post-disaster
housing programs, and require FEMA and the Government Accountability Office (GAO) to
report on additional challenges regarding the administration of post-disaster assistance. The bill was referred to the Senate Committee on Homeland Security and Government Affairs for consideration.
FEDERAL FUNDING OPPORTUNITIES
AmeriCorps Announces 2025 State and National Grants Competition. AmeriCorps announced it is accepting applications for the 2025 State and National Grants Competition
for organizations wishing to host AmeriCorps members beginning in the summer of 2025. Eligible applicants include State Service Commissions, nonprofit organizations, higher education institutions, local governments, and tribal governments. Applications are due by January 23rd.
EPA Announces $232 Million in Brownfields ARC Grant NOFOs. The Environmental
Protection Agency (EPA) announced several notices of funding opportunities (NOFOs) totaling $232 million through the Brownfields Assessment, Revolving Loan Fund, and Cleanup program. The funding will support restoring polluted, vacant, and abandoned brownfield sites with a focus on local economic development. Applications for all opportunities are due by
November 14th. The NOFOs include:
Cleanup Grants ($100 million)
Revolving Loan Fund Grants ($15 million)
Assessment Coalition Grants ($35 million)
Community-wide Assessment Grants ($46 million)
Community-wide Assessment Grants for States and Tribes ($36 million) EPA Releases $78 Million SWIFR NOFOs. EPA released two NOFOs for the availability of
$78 million through the Solid Waste Infrastructure for Recycling (SWIFR) grant program. The first NOFO is for Political Subdivisions of States and Territories with $58 million in funding, and the second NOFO is for Tribal Governments and Consortia with $20 million available. Funding will support projects that improve or transform water and materials management infrastructure.
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Applications for the Political Subdivisions of States and Territories opportunity are due by December 20th, and applications for Tribal Governments are due by March 14th.
EPA Releases REO NOFO. EPA released a NOFO for $39 million through the Recycling Education and Outreach (REO) Grant Program. Funding will support coalition applicants that include: 1) a project to develop a national consumer food waste reduction campaign; 2) a project that will increase the sales of compost; and 3) a project that will increase education and outreach to households on composting. Applications are due by December 20th.
EPA Announces $965 Million Available for Clean School Bus Rebate Program. EPA announced the availability of $965 million through the Clean School Bus Rebate Program. The rebate program will fund bus procurement and infrastructure costs for awardees requesting zero-emission school buses, driver training programs, and other workforce development
opportunities. Applicants may request up to $325,000 per bus, with a maximum of 50 buses
per application. Applications are due by January 9th. FEMA Releases State and Local Cybersecurity NOFO. FEMA released a $279.9 million NOFO through the FY24 State and Local Cybersecurity Grant Program. The funding will
support state, local, and territorial governments in managing and reducing cyber risk. Applications are due by December 3rd. IRS and DOE Accepting Applications for IRA Low-Income Communities Bonus Credit Program. The Internal Revenue Service (IRS) and DOE are accepting applications for the
2024 Program Year Inflation Reduction Act (IRA) Low-Income Communities Bonus Credit Program under Section 48(e) of the Internal Revenue Code. Applications for renewable energy and energy efficiency projects located in low-income communities, qualified low-income residential building projects, and qualified low-income economic benefit projects are being accepted on a rolling basis until October 10th. Applications for projects on Indian Lands are
being accepted until November 12th.
GRANT AWARD ANNOUNCEMENTS
BJA Releases JAG Formula Allocations. The Bureau of Justice Assistance (BJA) released FY24 allocations for local governments through the Edward Byrne Memorial Justice Assistance Grant (JAG). BJA is accepting applications for formula funding to provide additional
personnel and purchase equipment, supplies, contractual support, training, technical
assistance, and informational systems for law enforcement and civil proceeds. The Grants.gov application deadline is October 16th, and the JustGrants deadline is October 22nd. DOE Announces $90 Million for RECI Program. DOE announced $90 million for 25 projects in 17 states through the Resilient and Efficient Codes Implementation (RECI) initiative. The
funding will support workforce development, community engagement, and research and
development to assist building code upgrade activities. DOT Announces SS4A Grant Awards. The Department of Transportation (DOT) announced $1.07 billion in Round 1 and 2 Safe Streets and Roads for All (SS4A) grant awards to 354 local,
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regional, and tribal communities to help provide funding for implementation, planning, and demonstration activities as a part of a systematic approach to help prevent roadway deaths.
FAA Announces AIP Grant Awards. The FAA announced $1.9 billion for 519 airport projects in the fifth round of the Airport Improvement Program (AIP) grant awards. The grants help fund airport infrastructure projects such as runways, taxiways, signage, lighting, and markings. FEMA Announces FY23 Flood Mitigation Assistance Awards. FEMA announced $715
million in Flood Mitigation Assistance Awards for 197 projects in 25 states. The funding will support projects that reduce or eliminate the risk of repetitive flood damage to buildings insured through NFIP. Funding will also support flood risk reduction through property elevations, acquisitions, and mitigation reconstruction of buildings insured through NFIP.
HUD Announces $69.1 Million in GRRP Leading Edge Awards. The Department of Housing
and Urban Development (HUD) announced $69.1 million for 11 housing properties in 10 states through the Green and Resilient Retrofit Program’s (GRRP) Leading Edge cohort. The grants and loans will fund energy and water efficiency upgrades, renewable energy options, reductions in housing costs, promote the use of green building materials, and other resiliency
projects for over 2,000 homes. HUD Announces $87 Million for HRH and LBP Capital Fund Programs. HUD announced awards totaling $87 million for addressing health hazards in public housing. HUD will provide $47.7 million for 14 projects through the Capital Fund Housing-Related Hazards (HRH)
program and $40 million for 22 projects through the Lead-Based Paint (LBP) Capital Fund program. The funding will support projects that evaluate and reduce residential health hazards in public housing, including lead-based paint, carbon monoxide, mold, radon, and fire safety. HUD Announces $48 Million in Comprehensive Housing Counseling Awards. HUD
announced $48 million in awards for over 160 HUD-approved counseling agencies, state
housing finance agencies, educational institutions, and national, regional, multistate, and non-profit organizations through the FY24 Comprehensive Housing Counseling Program. Funding will support organizations that provide housing counseling services, workforce development training, and the dissemination of educational materials to the public about pre-purchase home
buying, financial literacy, foreclosure and rental eviction prevention, reverse mortgage
counseling, disaster recovery, appraisal bias, and heirs’ property management. HUD Announces $6 Million in Choice Neighborhoods Planning Grants. HUD awarded $6 million to 13 communities in 11 states through the Choice Neighborhoods Planning Grants
program. The funding will support the redevelopment of distressed public housing or HUD-
assisted housing, aid residents, and provide new amenities for residents. NOAA Announces $45 Million for Coast Habitat Restoration and Resilience Projects. The National Oceanic and Atmospheric Administration (NOAA) announced $45 million in funding
for 27 projects through the Coastal Habitat Restoration and Resilience Grants for Tribes and
Underserved Communities program. $20 million will support tribal initiatives, and $25 million will support coastal projects in underserved communities.
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Reclamation Announce $92 Million for WaterSMART Aquatic Ecosystem Restoration Program. Reclamation awarded $92 million to 19 projects in six states through the
WaterSMART Aquatic Ecosystem Restoration Program. The funding will support the study, design, and construction of aquatic ecosystem restoration projects to improve the health of fish and marine wildlife.
FEDERAL AGENCY REGULATORY ACTIONS
President Biden Signs EO on Prioritizing Union Labor for Federally Funded Projects. President Joe Biden signed an Executive Order (EO) titled “Executive Order on Investing in
American and Investing in American Workers.” The EO directs federal agencies to prioritize
union involvement when making funding decisions for programs authorized in the American Rescue Plan Act, the Bipartisan Infrastructure Law, the Inflation Reduction Act, and the CHIPS Act.
EPA Finalizes Engagement and Public Participation Policy for Agency Decision-Making.
EPA released the final version of its “Achieving Health and Environmental Protection Through EPA’s Meaningful Engagement Policy.” The three main steps in the new policy are 1) understanding EPA actions and key issues the public can inform; 2) identifying the expected level of participation using EPA’s public participation spectrum; and 3) identifying the
appropriate engagement tools and practices using EPA’s public participation model.
FEMA Posts Guidance on Determination Letters. FEMA posted a new guidance document titled “Understanding Your FEMA Determination Letter and How to Appeal” for individual and household program applications. The guidance provides next-step options, information on
how to appeal a determination letter, and instructions on submitting appeal documents online,
in person, by mail, or by fax. HUD Publishes Manufactured Home Construction and Safety Standards Final Rule. HUD published a final rule updating the Manufactured Home Construction and Safety Standards,
which includes 90 new or revised standards, including open floor plans, accessibility features,
and specifications for attics. The final rule is effective on March 17th. OSHA Releases Proposed Heat Injury and Illness Prevention Rule. The Occupational Health & Safety Administration (OSHA) released its “Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings” proposed rule. The proposed rule contains a
programmatic standard that requires employers to create a heat injury and illness prevention
plan to evaluate and control heat hazards in their workplace. It establishes requirements for identifying heat hazards, implementing engineering and work practice control measures at or above two heat trigger levels, developing and implementing a heat illness and emergency response plan, training employees and supervisors, and retaining records. The standard would
apply to all employers conducting outdoor and indoor work in all general industry, construction,
maritime, and agriculture sectors where OSHA has jurisdiction, with limited exceptions. Comments are due by December 30th.
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Reclamation and EPA Propose BABA Waiver for AMI Meters. Reclamation released a proposed Build America, Buy America (BABA) Act waiver for Advanced Metering Infrastructure (AMI) water meters. The waiver, as proposed, would provide coverage for
purchases of AMI water meters for three years, using a phased approach. This proposed
waiver was drafted in partnership with EPA and will apply to projects funded by Reclamation and EPA. Treasury Proposes New Technology Neutral Clean Energy Tax Credit. The Department of
the Treasury (Treasury) proposed new clean energy tax credits for low-income areas that are technology-neutral as opposed to focused on solar and wind resources. The 48(e) low-income tax credit was finalized in 2023 for wind and solar installation by developers, and it will sunset in 2025. The proposed 48E(h) credit would allow developers to claim investments in geothermal, hydropower, nuclear, and other low-carbon energy resources through the tax
credit beginning in 2026. Comments are due by October 3rd, and Treasury is hosting a public hearing on the proposal on October 17th at 10 am ET.
FEDERAL AGENCY ANNOUNCEMENTS AND PERSONNEL CHANGES
DOL Releases Compliance Assistance Release on Cybersecurity. DOL announced a new Compliance Assistance Release from the Employee Benefits Security Administration that
provides best cybersecurity practices for all plans governed by the Employee Retirement
Income Security Act, including health, welfare, and employee retirement benefit plans. Updated guidance includes Tips for Hiring a Service Provider, Cybersecurity Program Best Practices, and Online Security Tips.
DOT Announces ACAA Advisory Committee Appointments. DOT announced 17 Air
Carrier Access Act (ACAA) Advisory Committee appointments. The ACAA Advisory Committee is tasked with assessing the existing and emerging disability-related access barriers for passengers with disabilities, evaluating the extent to which the Department’s programs and activities are eliminating disability-related access barriers, and recommending actions to
improve the air travel experience of passengers with disabilities. This Committee will report its
assessment and recommendations to the Secretary. EDA Assistant Administrator Castillo Leaves Agency. Assistant Secretary of Commerce for Economic Development Alejandra Castillo has left her role at the Economic Development
Administration (EDA). She is now a Resident Fellow at Harvard University Kennedy School of
Government’s Institute of Politics. EPA and the Forest Service Released Updated AirNow Fire and Smoke Map. EPA and the Forest Service released an updated version of the AirNow Fire and Smoke Map. The tool has
a new design and incorporates new information such as air quality monitoring data, information
on individual wildland fires, and data from the low-cost fine particle sensors in Canada (in partnership with Environment and Climate Change Canada).
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EPA Releases CRAFT Federal Funding Tool. EPA released a new online tool called the Climate Resilience and Adaptation Funding Toolbox (CRAFT). CRAFT is intended to be a resource for federal funding applicants to develop, apply for, and implement climate-resilient
investments. The new website includes program overviews, climate risk tools, communications
materials, engagement resources, and definitions of commonly used terms. EPA Updates ECHO Database to Add Water Quality Indicators Tool. EPA updated the Enforcement and Compliance History Online (ECHO) website to include the new Water
Quality Indicators tool. The new tool allows users to compare data records from water monitoring stations to help identify potential sources contributing to water quality problems. EPA Releases Interagency Water Workforce Working Group Report to Congress. EPA released the 2024 Interagency Water Workforce Working Group Report to Congress,
identifying challenges facing the water workforce. The challenges include recruitment, training, retention, and partnerships, and the report provides a framework for water agencies to address these challenges. The report also identifies examples of utilities, communities, and organizations implementing these strategies for practical implementation of the framework provided by EPA.
EPA Announces SmartWay Excellence Awards. EPA announced 47 SmartWay Excellence Awards to truck carriers and freight shippers in recognition of their leadership in supply chain, environmental, and energy efficiency efforts. These SmartWay Partners represent top-performing and environmentally responsible freight carriers that move goods with lower
emissions and less energy. EPA Announces 2024 WaterSense Awards. EPA announced 51 awards to utilities, government agencies, manufacturers, retailers, buildings, and other organizations through the WaterSense® program. The WaterSense program allows consumers to use less water with
water-efficient products, homes, and services. The awards include the Sustained Excellence Award, the WaterSense Partners of the Year Award, and the Excellence Award. FHWA Administrator Steps Down. FHWA Administrator Shailen Bhatt left the agency effective September 10th. Administrator Bhatt began in the role of FHWA Administrator in January 2023. FHWA Deputy Administrator Kristin White is now the Acting Administrator.
FHWA Publishes Study on Ways to Address Road Safety Among the Homeless. FHWA published a report titled “Promising Practices for Transportation Agencies to Address Road Safety Among People Experiencing Homelessness.” The study presents strategies for improving safety for homeless individuals facing higher road fatality risks. It recommends
engaging with homeless individuals in planning, using data to guide decisions, leveraging DOT
resources for affordable housing, offering staff training, and coordinating with social services to provide a humane approach to encampment management. The study emphasizes proactive, collaborative measures that prioritize dignity and safety while aiming to achieve zero roadway deaths.
HUD Joins American Climate Corps MOU. HUD joined the memorandum of understanding (MOU) between several federal agencies on the American Climate Corps,
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including USDA, DOE, EPA, and AmeriCorps. HUD will work with the interagency group to develop workforce initiatives for a clean energy economy as the transition to renewable and clean energy continues.
HUD Releases Extreme Heat Playbook. HUD released a new resource titled the Extreme Heat Playbook to provide HUD grantees and community partners with a framework to address extreme heat in communities nationwide. The playbook provides steps to increase resilience to extreme heat, support vulnerable populations, and work with community stakeholders to
reduce the overall effects of extreme heat.
NOAA Announces Partnership with Climate Mayors. NOAA announced a new partnership with Climate Mayors, a bipartisan network of over 350 mayors from communities nationwide. The new MOU will advance collaborative efforts between NOAA and local governments to
accelerate the use of climate data and expertise at the local level. The MOU will remain in
effect for five years and be reviewed every two years. Reclamation Joins Integrated Water Resources Science and Services. Reclamation is joining the Integrated Water Resources Science and Services, a federal water management
partnership comprising USACE, the U.S. Geological Survey, NOAA, and FEMA. The agreement will allow the participating agencies to collaborate on sharing water information more efficiently, developing new ways to estimate and map water conditions from floods to droughts, and collaboratively enhancing capabilities to reduce water management risk, increase resilience, and support water resource development.
Reclamation Announces New Director of the Office of Program and Budget. Reclamation announced that Beth Hughes-Brown will serve as Director of the agency’s Office of Program and Budget. The office handles $3 billion in appropriated funding annually to support Reclamation’s more than 5,400 employees.
USGCRP Launches Interagency Sea Level Rise Website. The U.S. Global Change Research Program (USGCRP) released a new website called SeaLevel.GlobalChange.gov. USGCRP partnered with EPA, FEMA, NOAA, USACE, the Department of Defense, the National Aeronautics and Space Administration, and the U.S. Geological Survey to provide data and educational information on sea level rise so that the public can understand the causes
and effects of rising sea levels. ## ## ##
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October 2, 2024
To: Jason Haber, Intergovernmental Affairs Director
Cindie McMahon, City Attorney
City of Carlsbad
From: Sharon Gonsalves
Managing Director
California Public Policy Group
RE: CPPG Monthly Legislative Summary September 2024
LEGISLATIVE UPDATE
Governor’s Final Legislative Actions for the Year
September 30 marked the deadline for all bills to be acted upon by Governor Gavin Newsom. Overall,
in 2024, 1,206 bills, including two-year bills from the first year of the session, made it to the
Governor’s desk for consideration. Ultimately, a total of 1,017 were signed and 189 were vetoed. This
sign/veto rate is congruent with the average since the Governor took office at approximately 85
percent to 15 percent.
2024 Policy Trends
The 2024 legislative year saw legislative trends reflecting the state's ongoing commitment to
sustainability, equity, and addressing the homeless and housing crisis. Key areas of focus included:
•Climate Action: Enhanced measures to combat climate change, including a plastic bag ban,
stricter emissions regulations, investment in renewable energy, and initiatives for
sustainable agriculture.
•Affordable Housing and Homelessness: Legislation aimed at increasing the supply of
affordable housing, including streamlining permitting reforms and incentives for developers
to build more low-income units. Many policies focused on local accountability and instituted
ministerial reviews, additional repercussions for failing to meet state targets, deferment of
local revenues, and additional reporting requirements.
•Social Justice: Policies addressing racial and economic inequality, including criminal
justice reform and measures to support marginalized communities.
•Criminal Justice: A package of bills successfully made it through that enhances penalties
for fentanyl crimes and retail theft.
•Labor Rights: A controversial package of bills that would have placed fiscal and
administrative burdens on local agencies while strengthening worker protections and that
address vacancy rates and employer discrimination.
The Governor took a pro-housing approach while continuing to place the burden and accountability
on local governments by signing of most, if not all, of the housing bills passed by the Legislature.
Governor Newsom also approved AB 98 (Carrillo) [Chapter 931, Statutes of 2024], a warehouse bill
that was opposed by a broad coalition of local government, regional chambers of commerce, and
environmental groups. However, the Governor took a mixed approach to labor bills, vetoing AB 1890
Exhibit 2
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(Patterson), which was a prevailing wage bill, but signing AB 2561 (McKinnor) [Chapter 409, Statutes
of 2024], which addresses vacancy rates in public agencies.
ADMINISTRATION ACTIONS
Proposition 36 Joint Public Safety Hearing
On September 10th, 2024, at 10am the Assembly and Senate Public Safety Committees held a joint
hearing to discuss Proposition 36, a public safety measure on the 2024 ballot. Presenters on the
measure included a neutral analysis from the Legislative Analyst Office’s (LAO), as well as
proponents and opponents of the measure including the League of California Cities in support.
Proposition 36 would overturn laws created from Proposition 47 (2014) and would primarily increase
punishment for some drug and theft crimes, require a warning of possible murder charges related to
drug sales, and allow drug offenders to be charged with a “treatment-mandated felony”.
The LAO’s analysis of Prop. 36 noted that the measure would lengthen sentences, increase
punishments and offer drug treatment for some offenders. Fiscally, it would increase prison
populations by thousands, increase state workload, and increase state criminal justice costs by
anywhere from $10 million to $100 million. Proponents of Prop. 36 discussed the public safety need
for the measure as small businesses have faced retail theft and drug crimes have increased and
emphasized the need for chosen drug treatment for addicts as part of this measure and the need for
it due to holes in law enforcement resources. Opponents emphasized their concerns with the
measure’s effectiveness on reducing crime due to the lack of funding and regulation for the proposed
drug treatment options. They also noted the prosecutorial discretion built into the measure leading
to varied criminal justice outcomes and the potential unjust effect the measure would have on
vulnerable, marginalized communities.
The hearing agenda and handout can be found here and here.
CalPERS Investment Returns and Impacts to Employer Contributions
In a recent webinar hosted by the California Public Employees’ Retirement System (CalPERS),
CalPERS leadership discussed their investment performance summary, impacts of investment
returns to employers, and the 2025 asset liability management cycle. The webinar began by
highlighting a 9.3% return last year, surpassing the target rate of 6.8%, which is crucial for achieving
a 100% funded status over the next 20 years. Earnings came in above target returns and a main
change this year has been to increase allocation to private equity and debt. Graphs mapping
CalPERS data by asset class of total returns noted public equity at 17.5%. The strong performance
of U.S. equities, particularly in the tech and communications sectors, was highlighted while
international markets saw only moderate gains.
CalPERS’ advantages noted were its size, long-term horizon, and brand strength which help navigate
market volatility and can help in negotiating better investment deals. The recent undertaking of the
Sustainable Investment 2030 strategy, in which CalPERS will aim to invest $100 billion in climate
related solutions was mentioned as were returns impact on employer contributions, noting that the
2023-2024 return will first impact employer Unfunded Accrued Liability (UAL) dollar amounts for
agencies in the fiscal year 2026-2027. Also discussed was the Risk Mitigation Policy Change
including no longer automating reduction to discount rates and that decisions will be left up to the
Board. CalPERS estimates 3% of rate plans will see a Public Employees’ Pension Reform Act (PEPRA)
employee rates change with a discount rate change and will affect roughly 7,500 employees.
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A recording of the webinar can be found here.
Governor Newsom’s Press Conference on Housing
In a press conference held by the Governor’s office on September 19th at 10am, Governor Gavin
Newsom, joined by California Business, Consumer Services and Housing Agency Secretary Tamika
Moss, Assemblymember Grayson, Assemblymember Wicks, and Attorney General Bonta, signed
several housing bills and answered questions from the press on housing responsibilities of the state
and local governments.
The elected officers introduced the conference by emphasizing the need for housing security for all
Californians and promoting the urgency needed at the local level in housing action. Newsom noted
significant improvements to builder’s remedy and housing element processes, citing the billions of
dollars the state has allocated to local jurisdictions housing crises. The overall tone doubled down
on the recent narrative that local agencies are where accountability and the burden of solutions to
both the housing crisis and homelessness reside. The Governor emphasized the need for cities and
counties to use the resources being allocated to them by the state to help their homeless
communities. He also announced a new program entitled “Homekey+” which will extend the
Homekey model by focusing on the transition of existing buildings that can be quickly converted into
permanent, affordable housing. Newsom concluded that before his term is over, he wants to focus
on driving results and accountability and wants to radically change the way things have been done.
The Governor’s press release can be found here.
CPPG LEGISLATIVE ACTIVITY
CPPG continues to work with City staff to prepare for the next legislative session, to evaluate the
need for revision to the legislative platform, and to establish policy and fiscal priorities heading into
2025.
On September 18, CPPG sent the City an overview of impactful housing legislation passed by the
Legislature in 2024.
Update on Positioned Legislation
Below is the outcome for all legislation on which the City adopted a position that reached the
Governor’s desk in 2024.
• AB 1779 (Irwin) Theft: jurisdiction
o Status: Chaptered
o City Position: Support
• AB 1802 (Jones-Sawyer) Crimes: organized theft
o Status: Chaptered
o City Position: Support
• AB 1886 (Alvarez) Housing Element Law: substantial compliance: Housing Accountability
Act
o Status: Chaptered
o City Position: Oppose
• AB 1893 (Wicks) Housing Accountability Act: housing disapprovals: required local findings
o Status: Chaptered
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o City Position: Oppose
• AB 2081 (Davies) Substance abuse: recovery and treatment programs
o Status: Chaptered
o City Position: Support
• AB 2234 (Boerner) Vehicles: electric bicycles
o Status: Chaptered
o City Position: Sponsor
• AB 2257 (Wilson) Local government: property-related water and sewer fees and
assessments: remedies
o Status: Chaptered
o City Position: Support
• AB 2561 (McKinnor) Local public employees: vacant positions
o Status: Chaptered
o City Position: Oppose
• AB 2574 (Valencia) Alcoholism or drug abuse recovery or treatment programs and facilities:
disclosures
o Status: Chaptered
o City Position: Support
• AB 2684 (Bryan) Safety element: extreme heat
o Status: Signed by Governor
o City Position: Support
• AB 2715 (Boerner) Ralph M. Brown Act: closed sessions
o Status: Chaptered
o City Position: Sponsor
• AB 2729 (Patterson, Joe) Residential fees and charges
o Status: Chaptered
o City Position: Oppose
• AB 2943 (Zbur) Crimes: shoplifting
o Status: Chaptered
o City Position: Support
• AB 3093 (Ward) Land use: housing element: streamlined multifamily housing
o Status: Chaptered
o City Position: Oppose
• AB 3209 (Berman) Crimes: theft: retail theft restraining orders
o Status: Chaptered
o City Position: Support
• AJR 12 (Alvarez) Tijuana River: cross-border pollution
o Status: Chaptered
o City Position: Support
• SB 450 (Atkins) Housing development: approvals
o Status: Chaptered
o City Position: Oppose
• SB 689 (Blakespear) Local coastal program: bicycle lane: amendment
o Status: Chaptered
o City Position: Support
• SB 905 (Wiener) Crimes: theft from a vehicle
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o Status: Chaptered
o City Position: Support
• SB 937 (Wiener) Development projects: permits and other entitlements: fees and charges
o Status: Chaptered
o City Position: Oppose
• SB 1037 (Wiener) Planning and zoning: housing element: enforcement
o Status: Chaptered
o City Position: Oppose
• SB 1053 (Blakespear) Solid waste: reusable grocery bags: standards: plastic film
prohibition
o Status: Chaptered
o City Position: Support
• SB 1123 (Caballero) Planning and zoning: subdivisions: ministerial review
o Status: Chaptered
o City Position: Oppose
• SB 1242 (Min) Crimes: fires
o Status: Chaptered
o City Position: Support
• SB 1271 (Min) Electric bicycles, powered mobility devices, and storage batteries
o Status: Chaptered
o City Position: Support
LOOKING FORWARD
• DECEMBER 2: Organizational Session
• JANUARY 1: All legislation signed into law in 2024, unless otherwise excepted, goes into
effect
• JANUARY 6: The 2025-26 legislative session begins
Oct. 8, 2024 Item #2 Page 14 of 14
~CPPG
CALIFORNIA PUBLIC POLICY GROUP