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HomeMy WebLinkAbout2023-12-12; City Council Legislative Subcommittee; ; Legislative and Advocacy UpdateLEGISLATIVE SUBCOMMITTEE Staff Report Meeting Date: Dec. 12, 2023 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: Renne Public Policy Group - will present updates and overviews of federal and state legislative activity, including summaries of the city's advocacy efforts in 2023 and a look-ahead at key issues to be addressed in 2024 (Exhibits 1 and 2). 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 2023/2024 Legislative Session. Exhibits 1.Carpi & Clay -2023 Year in Review and Monthly Federal Update 2.Renne Public Policy Group -2023 End of Year Report Dec. 12,2023 Item #2 Page 1 of 21 City of Carlsbad 2023 Year in Review and Monthly Federal Update 2023: A Year in Review 1 December 6, 2023 The 118th Congress kicked off in January in a rather unexpected manner. The results of the November 2022 elections caused a power flip in the House of Representatives with the Republicans taking over the majority. As such, the first order of business was to elect a Speaker. It took the House five days and fifteen rounds of voting to elect Rep. Kevin McCarthy (R-CA) as Speaker of the House. Additionally, with the start of the new· Congress we saw the opening of the House and Senate office buildings to the public for the first time since early 2020. Much of Congress' attention and efforts this year has been focused on the Fiscal Year (FY) 2024 appropriations process. In late May, Congress and President Biden negotiated legislation to raise the debt limit, as well as set spending limits for both FY24 and FY25 (which was set at current FY23 leyels). While the Senate chose to write their bills to the agreed upon levels, the House decided to write their bills at lower funding levels, resulting in a roughly $113 billion difference. Fall has seen quite a flurry of activity on the federal level. At the eleventh hour on the last day of the federal fiscal year, Congress passed a Continuing Resolution (CR) to keep the government open and funded through November 17th. Just three days after Congress passed the CR , the House held an unprecedented vote, and for the first time in history, removed the sitting Speaker of the House Kevin McCarthy from his position. Following the successful motion to vacate, the House Republican caucus spent the next twenty-two days attempting to elect a new Speaker. Three different candidates (Majority Leader Steve Scalise (R-LA), Judiciary Committee Chair Jim Jordan (R-OH), and Majority Whip Tom Emmer (R-MN)) were each selected by the caucus as their candidate for Speaker, but none of them could obtain the necessary number of votes on the floor to get elected. Finally, on October 25th, the House Republican caucus coalesced around a candidate and elected Rep. Mike Johnson of Louisiana to serve as the next Speaker of the House. October also saw the end of an era with the passing of Senator Dianne Feinstein , who served the State of California in the U.S. Senate for over three decades. Following her passing, Governor Gavin Newsom announced that he would be appointing Laphonza Butler to fulfill the remainder of Feinstein's term until the end of 2024. Sen. Butler recently announced that she will not be running for a full six-year term. www.carpiclay.com Dec. 12,2023 Item #2 1 Page 2 of 21 Prior to Thanksgiving, Congress passed yet another CR to avoid a government shutdown. The new CR takes a two-tiered laddered approach to extending federal funding. The CR extends funding across all federal agencies at current levels, but groups the twelve appropriations bills into the following two groups with two different deadlines, January 19th and February 2nd respectively. Carpi & Clay Activities on behalf of the City of Carlsbad Over the past year, Laura Morgan-Kessler and David Wetmore have been working on the following issues on behalf of the City: • Worked with City staff to draft and submit Fiscal Year 2024 community project requests to the City's congressional delegation . As a result of these efforts, Rep. Mike Levin included $850,000 for the City's Traffic Safety Improvement project. • Kept City staff updated on the status with the annual appropriations process and federal funding. • Planned and executed the City's federal advocacy trip to Washington , D.C. in March 2023. During this trip , the City met with the City's Congressional delegation as well as the Environmental Protection Agency. • Drafted letters of support for the City to send on the following bills: o Spent Fuel Prioritization Act (H .R. 3862) o Southern California Coast and Ocean Protection Act (H .R. 3978) • Provided the City with weekly transportation memos as well as monthly federal update memos. • Maintain strong relationships with the City's Congressional delegation and staff. Additionally, kept the City updated on changes to staff within the City's Congressional delegation. • Provided a memo to the City regarding the potential impacts to the City of a federal government shutdown. • Shared the City's Inflation Reduction Act Energy Efficiency and Conservation Block Grant program allocation of $168,840. • Shared the City's FY23 Community Development Block Grant allocation of $545,490. • Provided real-time grant funding opportunities to the City for federal programs of interest to the City. • Participated on monthly conference calls with City staff and presented monthly federal updates to the City's Legislative Subcommittee meetings. www.carpiclay.com Dec. 12,2023 Item #2 2 Page 3 of 21 Federal Update (December 2023) Congress Passes Continuing Resolution Before departing Washington, D.C. for the Thanksgiving holiday, Congress passed a Continuing Resolution (CR) to allow the federal government to remain funded beyond the November 17th deadline from the previous CR. The new CR takes a two-tiered laddered approach to extending federal funding. The CR extends funding across all federal agencies at current fiscal year (FY) 2023 levels, but groups the twelve appropriations bills into the following two groups with two different deadlines: ■ Extends the agencies funded under the below bills through January 19, 2024: • Agriculture-FDA • Energy and Water • Military Construction-Veterans Affairs • Transportation-Housing and Urban Development ■ Extends agencies funded under the below bills through February 21 2024: • Commerce-Justice-Science • Labor-Health and Human Services-Education • Defense • Financial Services • Homeland Security • Interior-Environment • Legislative Branch • State-Foreign Operations In addition to extending current funding levels for federal agencies, the CR also includes extensions for the following programs: ■ Health programs, including funding for community health centers and delay of Medicaid payment cuts to disproportionate share hospitals through January 19th ■ Temporary Assistance for Needy Families (TANF) through February 2nd ■ National Flood Insurance Program (NFIP) through February 2nd ■ Farm bill programs through September 30th 2024 Congressional Calendar Released The House and Senate released their anticipated schedules for 2024. Since it is an election year, in addition to Congress being in recess the month of August, Congress will also be in recess the month of October, returning to Washington, D.C. after the November election. A combined copy of the calendars can be found HERE. www.carpiclay.com Dec. 12,2023 Item #2 3 Page 4 of 21 Legislation Introduced: Behavioral Health and Homelessness Services Senators Alex Padilla (D-CA) and Edward Markey (D-MA), along with Representative Madeleine Dean (D-PA), introduced the Homelessness and Behavioral Health Care Coordination Act of 2023 (H.R. 773/5. 3165). The legislation would establish a grant program through the Department of Health and Human Services (HHS) to award five- year grants of up to $500,000 to eligible entities to improve their capacity to coordinate homelessness services. House Legislation Introduced to Reduce Wildfire Risk from Power Lines Representatives Salud Carbajal (D-CA), Lori Chavez-DeRemer (R-OR), Jim Costa (D- CA), and David Valadao (R-CA) introduced the Fire Safe Electrical Corridors Act of 2023 (H.R. 6012), a companion bill to the Senate bill introduced by the late Senator Dianne Feinstein (D-CA) (S. 2269). The legislation would allow the Forest Service to approve the removal of hazardous trees near power lines on federal land without requiring a timber sale. The legislation was referred to the Committee on Agriculture and the Committee on Natural Resources for consideration. Federal Funding Opportunities & Announcements EPA Releases $2 Billion NOFO for Community Change Grants. The Environmental Protection Agency (EPA) released a $2 billion Notice of Funding Opportunity (NOFO) for the Environmental and Climate Justice Community Change Grants Program, authorized in the Inflation Reduction Act (IRA). Funding will support projects that promote climate resiliency and adaptation, mitigate climate and health risks, monitor and prevent indoor and outdoor pollution, implement infrastructure upgrades, and develop workforce initiatives. Applications are accepted on a rolling basis through November 21 , 2024. There are two application tracks: • Community-Driven Investments for Change: EPA expects to award $1 .96 billion for 150 projects, totaling between $10 and $20 million for each awardee. • Meaningful Engagement for Equitable Governance: EPA expects to award $40 million for 20 projects, totaling between $1 and $3 million for each awardee. DOT Publishes $1.5 Billion RAISE Grant NOFO. DOT published a $1 .5 billion NOFO for the FY 2024 Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant program. The program supports municipalities, tribal governments, counties, and other eligible entities in completing critical freight and passenger transportation infrastructure projects. Applications are due February 28th. ## ## ## www.carpiclay.com Dec. 12,2023 Item #2 4 Page 5 of 21 2023 END OF YEAR REPORT City of Carlsbad Prepared By: Sharon Gonsalves Director of Government Affairs Phone: (916) 849-5536 sgonsalves@publicpolicygroup.com {city of Carlsbad Ca forn a TABLE OF CONTENTS TRANSMITTAL LETTER ...................................................................................... 3 2023: YEAR IN REVIEW ....................................................................................... 5 RPPG/CITY OF CARLSBAD HIGHLIGHTS 2023 ................................................ 7 KEY PERFORMANCE INDICATORS ................................................................... 8 CLIENT COMMUNICATION ............................................................................... 12 OTHER RPPG EFFORTS ................................. , ................................................ 13 LOOKING AHEAD: 2024 LEGISLATIVE SESSION .......................................... 14 CHANGE IN COMMITTEE CHAIRS ................................................................... 14 LOOMING BUDGET DEFICIT ............................................................................ 14 A SLOWDOWN IN HOUSING LEGISLATION ... NOT SO FAST ....................... 15 GOVERNMENT TRANSPARENCY ACT ........................................................... 15 CLIMATE BOND ................................................................................................ 16 WILDFIRE INSURANCE .................................................................................... 16 2 City of Carlsbad 2023 End of Year Report Dec. 12, 2023 Item #2 Page 7 of 21 TRANS MITT AL LETTER November 15, 2023 To: Scott Chadwick City Manager City of Carlsbad From: Sharon Gonsalves Director of Government Affairs Renne Public Policy Group Dear Mr. Chadwick, On behalf of the Renne Public Law Group, LLP [OBA Renne Public Policy Group (RPPG)], I want to thank you, your team, and the City of Carlsbad City Council for engaging our firm for state legislative advocacy services. This end of year report provides an overview of the services provided by our firm to the City of Carlsbad during the 2023 legislative year, as well as insights and potential next steps in preparation for the 2024 legislative year. Additionally, this report provides a recap on efforts currently underway for the 2024 legislative session. Over the past year, RPPG has worked with your staff to take an aggressive approach to raise the City's profile and to build relationships with the Administration, state agencies, and Members of the Legislature. 2023 proved to be a productive year in continuing the City's presence and educating decision makers about the City's top priorities. RPPG continued to work with your staff to provide clarity on issues through the following mechanisms: drafting memos, providing information on administrative actions, and providing detailed policy and political analysis on dozens of items of interest to the City. RPPG engaged on state legislative measures in the areas of housing, land use, mental health, climate, homelessness, elections, political reform, as well as on governmental operations and employment issues with specific applicability to the City. This resulted in over 350 individual "touchpoints", either with the City or on behalf of the City. Deliverables included drafting memos, providing legislative analysis, advising City staff, meeting with state lawmakers or their staff, drafting state and federal position letters, etc. In 2023, RPPG monitored and/or engaged on over 1,500 pieces of state legislation. In total, the City of Carlsbad officially positioned on 23 pieces of state legislation in 2023. Furthermore, we were proud to work in partnership with the City to successfully sponsor and get signed into law SB 428 authored by Senator Blakespear, which allows an employer to obtain a temporary restraining order on behalf of an employee. We are grateful that the City will continue its relationship with RPPG moving into the 2024 legislative session. Despite our team's success on behalf of the City, we believe there is still much more work to be done, and we certainly do not take this responsibility lightly. Thank you once again for the opportunity to serve the City of Carlsbad. We look forward to continuing our partnership and building on the success we have achieved. 3 City of Carlsbad 2023 End of Year Report Dec. 12, 2023 Item #2 Page 8 of 21 Sincerely, Sharon Gonsalves Director of Government Affairs Renne Public Policy Group CC: Jason Haber, Intergovernmental Affairs Director, City of Carlsbad Allegra Frost, Assistant City Attorney, City of Carlsbad 4 City of Carlsbad 2023 End of Year Report Dec. 12, 2023 Item #2 Page 9 of 21 2023: YEAR IN REVIEW The 2023-2024 session of the California State Legislature began with both houses convening in early December 2022 for an organizational session. During this time, Members in each house took their oaths of office and passed their respective chamber rules. The first formal action taken by the Assembly was to adopt a leadership transition plan (House Resolution H.R. 1) which solidified the transition of Assembly Speakership from Anthony Rendon (D, Lakewood) to Robert Rivas (D, Hollister) effective July 1, 2023. In the Senate, Toni Atkins (D, San Diego) was re-elected President pro Tempore and Mike McGuire (D, Healdsburg) was re-elected as Majority Leader. However, there was a changing of the guard on the Senate Republican side with Brian Jones (R, Santee) replacing Scott Wilk (R, Santa Clarita) as Minority Leader. Additionally in December, Governor Gavin Newsom declared a special legislative session to introduce a gasoline price gouging measure in response to rapidly rising prices at the pump throughout the state during 2022. The measure, SBX1-2, was carried by Senator Nancy Skinner (D, Berkeley) and authorizes the State Energy Resources Conservation and Development Commission to set a maximum gross gasoline refining margin and to establish a penalty if this margin is exceeded. The measure was signed into law by the Governor on March 28 and went into effect on June 26. While this measure did not have a direct impact on local government authority or operations, RPPG closely monitored this action to ensure that there was momentum to modify SB 1 allocations. The Legislature reconvened for the regular 23-24 legislative session the first week of January 2023. With 35 newly elected Members coming to Sacramento (25 Assemblymembers and 10 Senators), California saw the largest number of new state-elected representatives join the Legislature since modified constitutional term limits for state lawmakers were approved by the voters in 2012. While historically new legislators tend to ease into their newly minted roles-introducing only a handful of new legislation in year one-this new class took a different approach. As a result, we saw more than 3,000 individual legislative and budgetary measures introduced in 2023 alone. This was the most in the first year of session in more than a decade. Major themes and priorities of the 2023 session included: • Major overhaul of the state's behavioral health system and its funding. • Policies that further streamlined housing production and fast-tracked critical infrastructure projects. • Significant labor dispensations and extensions. • Attempts to address the ongoing fentanyl crisis. • Preparation and mitigation for climate change. • Advancement of several constitutional amendments and statewide funding measures for voter consideration in 2024. In early January, Governor Newsom unveiled his proposed budget for fiscal year (FY) 2023-2024. Contrary to the historic budget surpluses in the previous fiscal years, the Governor confirmed that the state was projecting a $22 billion deficit moving into the new year. Factors the Administration cited included a drop in anticipated personal income tax revenues, a generally slowing economy, high inflation, and Federal Reserve interest rate increases. Despite these negative drags on the economy, the Administration did not project a recession in the budget. In response, the Administration proposed a combination of triggered spending cuts, funding delays, shifts in funding sources, and the issuance of bonds to close the gap and pass a balanced budget. 5 City of Carlsbad 2023 End of Year Report Dec. 12,2023 Item #2 Page 10 of 21 Given the sheer volume of legislation introduced, the spring of 2023 was a remarkably hectic time for the Legislature and advocates alike. All told there were more than 150 legislative, fiscal, and budgetary hearings dispensing with measures that directly impacted local government. The timing of these policy hearings coincided directly with Governor Newsom's "May Revise" in which the Administration proposed an increase of $9 billion in total spending along with an increase in the state's projected deficit-now surpassing $30 billion. All told the final FY 23-24 budget consisted of $310 billion in total spending. The final budget advanced by the Legislature contained appropriate cuts to close the $31.5 billion deficit and was signed by the Governor on June 27 to adhere to constitutional deadlines. The Administration's and Legislature's priorities in the FY 23-24 budget were consistent with previous years which dedicated funding to homelessness, climate change, healthcare, education, and housing. Governor Newsom, along with Assemblymember Jacqui Irwin (D, Thousand Oaks) and Senator Susan Eggman (D, Stockton), announced in mid-June a behavioral health policy package. The two measures that comprise this behavioral health package, AB 531 (Irwin) and SB 326 (Eggman), were signed into law on October 12 and will be put to voters on the March 2024 ballot as Proposition 1. AB 531 will provide $6.38 billion in new funding for behavioral health infrastructure efforts. In response to a strong lobbying effort from local government advocates, the measure was amended in the eleventh hour to increase the total funding amount and to provide direct allocation to cities. SB 326 will rename and modernize the Mental Health Services Act passed by the voters as Proposition 63 in November 2004. AB 531 and SB 326 received bipartisan support on both the Assembly and Senate Floors. Robert Rivas was sworn in as the 71 st Speaker of the State Assembly on June ·30. He made several changes to Assembly leadership on July 3, including appointing Isaac Bryan (D, Los Angeles) as the new Majority Leader and Cecilia Aguiar-Curry (D, Winters) as the new Speaker pro Tempore. Additionally, Juan Carrillo (D, Palmdale) was appointed the new chair of the Local Government Committee. Speaker Rivas was elected to the Legislature in 2018 and with 12-year term limits could potentially hold his leadership position until he terms out in 2030. Senator Atkins announced in late August that the Senate Democratic Caucus had determined that Senator McGuire will be the Pro Tern "Designee," with a specific transition date to be announced in January 2024. Senator Atkins has served in the Legislature since 2012. As an Assemblymember she rose to power- becoming Speaker of the Assembly from 2014-2016 before running for State Senate. Senator Atkins then became the Pro Tern of the Senate in 2018. She terms out of the Legislature in 2024. Senator McGuire was elected to the Senate in 2014 and has served as Majority Leader since 2022. He terms out of the Legislature in 2026 and has filed paperwork to run for Insurance Commissioner. By the evening of September 14, the legislature had advanced a total of 1,046 bills to the Governor for his consideration. By October 14, the Governor had signed 890 measures into law and vetoed 156-an approximate rate of 85% to 15%. The Legislature is now adjourned and will resume the second year of the two-year legislative session on January 3, 2024. 6 City of Carlsbad 2023 End of Year Report Dec. 12, 2023 Item #2 Page 11 of 21 RPPG/CITY OF CARLSBAD HIGHLIGHTS 2023 7 City of Carlsbad 2023 End of Year Report Dec. 12,2023 PIECES OF LEGISLATION TRACKED ON BEHALF OF THE CITY Legislation tracked and assessed for impacts on City operations, legal and/or local decision making. SUCCESS RA TE ON LEGISLATIVE ENGAGEMENT -MAKING THE CITY'S VOICE HEARD RPPG achieved the desired outcome or secured critical amendments to dramatically reduce adverse impacts on the City. (13 desired outcomes OR significantly improved based on RPPG's engagement. This does not include 2 support bills that were vetoed or 4 support bills that were held in committee and will continue to move next year.) IN STATE FUNDING SECURED Combined funds that RPPG secured for the City from direct state funding in the fiscal year 2023-2024 budget for the State ·Street Parking Lot EV Charging Stations Project. COMBINED DELIVERABLES AND TOUCHPOINTS PROVIDED TO AND ON BEHALF OF THE CITY Legislative updates, legislative and budgetary position letters, policy, and political analysis, meetings with City and/or state legislature on behalf of the City. SB 428 (SPONSORED LEGISLATION) SIGNED BY GOVERNOR NEWSOM RPPG worked with the City, bill author Senator Blakespear, and the Administration to introduce SB 428 and advance it to the Governor's desk, where it was signed into law on September 30, 2023. Item #2 Page 12 of 21 KEY PERFORMANCE INDICATORS At its core, legislative advocacy is working with individual lawmakers (both within the City's legislative district and out), committee staff, the Governor's administration, and regulatory officials to support the City's policy goals. Equally important is the ability to work with those same stakeholders to mitigate legal, operational, or fiscal impacts that state legislation may have on the City of Carlsbad. Successful legislative advocacy is predicated on raising awareness and education. Being able to empower City Council, staff, and the City's advocacy team are critical in any effort to advance legislative efforts. In Sacramento, direct advocacy can range from working personally with a legislator, an aide, policy committee staff, and/or the Administration on the wording of a bill, to mobilizing broad coalitions that align with the City's cause. This work includes educating legislators, supporters, and the public about the issue, working with the media, and continuously seeking out allies and being persistent over long periods of time. Over time, a sustained legislative advocacy, effort will help the City form strong allies. Working with lawmakers and familiarizing them with your concerns often results in lawmakers, even those outside of your legislative district, becoming champions for your specific issues. Establishing personal relationships with legislators, both in the City's legislative district and outside of its district, provides the City with the credibility needed to have a meaningful impact during the legislative process. While there is no guarantee that a sustained effort will lead to success on any particular issue of importance, a lack of a sustained effort will lead to state policies that will remove local decision making and create new financial, legal, or operational challenges for the City of Carlsbad. Below is a condensed narrative outlining many of the highlights and key performance indicators of success during the 2023 legislative session. Highlights: Legislative Advocacy Success ✓ SB 428 (Blakespear) Temporary restraining orders and protective orders: employee harassment (City Position, Sponsor) This year, the City sponsored SB 428 authored by Senator Catherine Blakespear which expands the circumstances under which an employer can seek a restraining order on behalf of their employees. Under existing law an employer cannot engage on behalf of an employee until there is a credible threat of violence. As an employer for whom the safety of its employees is of the utmost importance, we would like the opportunity to be proactive and take action prior to a situation escalating to a level of possible violence. This year, RPPG worked hand in hand with City staff, drafting legislative language, meeting with legislative policy committee staff, various outside stakeholders, and administrative officials to successfully negotiate a bill that allows the City and any employer to file a temporary restraining order on behalf of an employee. On September 30, Governor Newsom signed SB 428 into law. ✓ AB 33 (Bains) Fentanyl Misuse and Overdose Prevention Task Force (City Position, Support) Assemblywoman Dr. Jasmeet Bains introduced AB 33 as a promise she made when running for office to combat the opioid crisis that is occurring not only in the state, but nationwide. AB 33 will create a statewide Fentanyl Addiction and Overdose Prevention Task Force. Initially the bill faced a hurdle as the Assembly Public Safety decided against hearing any fentanyl related legislation this year. RPPG was part of the large group made up of local agencies, public safety and concerned parents who pushed the committee to reconsider their stance and ultimately the bill secured a hearing and passed with bipartisan support. Additionally, RPPG worked to support the Assemblywoman's efforts to obtain funding for the task force in the State Budget. 8 City of Carlsbad 2023 End of Year Report Dec. 12,2023 Item #2 Page 13 of 21 On October 13, Governor Newsom signed AB 33 into law. ✓ AB 40 (Rodriguez) Emergency medical services (City Position, Support) Sponsored by the California Professional Firefighters, AB 40 was a top priority for the City's fire department and all local agencies that also provide EMS services. Currently first responders can spend as long as twelve hours with a patient while they wait for medical care from a doctor taking away critical services and ability to respond to emergencies in the community. This critical legislation requires the California Emergency Medical Services Authority (EMSA) to take urgent actions to address the chronic issue of ambulance patient offload time. RPPG worked with the author's office, the sponsor, and Cal Cities to raise awareness about the importance of this legislation despite heavy opposition from the California Hospital Association. Additionally, RPPG drafted and submitted letters of support and testified on behalf of the City in the various policy committees. On October 13, Governor Newsom signed AB 40 into law. ✓ AB 531 (Irwin) The Behavioral Health Infrastructure Bond Act of 2023 (City Position, Support) With the passage of the Community Assistance, Recovery and Empowerment (CARE) Court in 2022, additional resources will continue to be necessary to provide the required housing to those who are receiving treatment. AB 531 is a $6.38 billion bond and one piece in Governor Newsom's proposed mental health overhaul. Appearing on the March 2024 ballot as Proposition 1, if approved it will provide funding to build more than 10,000 new behavioral health beds and housing and 26,700 outpatient treatment slots -filling critical needs across the state for homeless Californians with severe behavioral health issues. RPPG worked with the City to draft relevant support letters, provided testimony in a handful of Assembly and Senate committees, and expressed the City's support to the Newsom administration once the measure advanced out of the Legislature. On October 13, Governor Newsom signed AB 531 into law. ✓ AB 557 (Hart) Open meetings: local agencies: teleconferences (City Position, Support) AB 557 is a simple but important tool for local governments to continue to be accessible to the public during a Governor-declared state of emergency and continue to provide essential services to residents by eliminating the sunset provision in AB 361 (R. Rivas, 2021) pertaining to remote authority and the Ralph M. Brown Act. This permanently authorizes local agencies to meet remotely and without posting agenda location in instances where the Governor has declared a state of emergency and it would be impossible to meet in-person safely, such as during extreme flooding or wildfire. Additionally, this measure extends the period for a legislative body to make the necessary findings related to a continuing state of emergency to not later than 45 days after the first teleconferenced meeting, instead of within 30 days, and extends the renewal period from every 30 days to every 45 days. Historically, any measure that relates to Brown Act modernization is instantly controversial with Capitol committee staff and faces a harsh backlash from watchdog groups. RPPG worked closely with AB 557's sponsor, the California Special District's Association (CSDA), to support the effort by working with CSDA advocates to target key lawmakers to secure votes, lobbying legislators, and committee staff, and providing testimony. On October 8, Governor Newsom signed AB 557 into law. ✓ AB 584 (Hart) California Coastal Act of 1976: coastal development: emergency waiver (City Position, Support) This commonsense measure flew through the legislature in light of the damages the State saw in the winter of 2022/2023. In the event of a disaster or similar situation where emergency work is necessary to protect life and property and for repairs to certain public facilities and infrastructure, the coastal commission can 9 City of Carlsbad 2023 End of Year Report Dec. 12,2023 Item #2 Page 14 of 21 authorize emergency actions or projects within the coastal zone up to $25,000, a threshold that has not been updated since 1976. AB 584 will update that threshold to $125,000 to reflect today's dollars and will update annually pursuant to inflation. On July 27, Governor Newsom signed AB 584 into law. ✓ AB 701 (Villapudua) Controlled substances: fentanyl (City Position, Support) As mentioned above under AB 33, fentanyl related legislation faced an uphill battle this legislative session, particularly in the Assembly Public Safety Committee. AB 701 adds fentanyl to the list of controlled substances, which currently includes cocaine, and heroin, for which sentencing enhancement and stiffer penalties may be levied against dealers. Leveraging our close relationships with the Calfirona Police Chiefs Association and the California Peace Officers Association, we worked collectively to garner support among the members of the legislature to ensure this bill continued to move and ultimately signed by the Governor. On October 8, Governor Newsom signed AB 701 into law. ✓ SB 19 (Seyarto) Fentanyl Misuse and Overdose Prevention Task Force (City Position, Support) SB 19 creates a task force to deal with the fentanyl epidemic to evaluate the nature and extent of fentanyl abuse in the state and to develop policy recommendations for addressing it. The bill was amended in the Assembly to adjust the timelines in the bill, and composition of the task force to conform the language to AB 33 (Bain, 2023). RPPG drafted and submitted letters of support to the relevant committees and the bill was on consent throughout the legislative process. On October 13, Governor Newsom signed SB 19 into law. ✓ SB 43 (Eggman) Behavioral health (City Position, Support) Creating solutions to address extreme mental illness was a priority for the City Council. On the heels of the passage of CARE Court in 2022, SB 43 authored by Senator Eggman proposed to broaden the definition of gravely disabled under the Lanterman-Petris Short Act (LPS). The law was originally passed when Ronald Reagan was Governor and despite over a decade of advocating for updates and modernization, efforts continued to fall short. On the heels of the homelessness crisis in the State, for the past two years RPPG worked with the Administration, Department of Public Health, and a large coalition of local government stakeholders, including the "Big 13 City Mayors" and League of California Cities to help advance this major piece of legislation. In addition, RPPG drafted support letters, testified in all relevant policy committees, and met with the Governor's office to express Bakersfield's strong support for the bill. On October 12, Governor Newsom signed SB 43 into law. ✓ SB 326 (Eggman) The Behavioral Health Services Act (City Position, Support) This legislation is tied to AB 531 and will appear as one ballot measure on the March 5, 2024 ballot as Proposition 1. Both bills are critical to Governor Newsom's efforts to address mental health, substance abuse and homelessness. SB 326 is designed to transform the state's Mental Health Services Act into the Behavioral Health Services Act and reallocating an existing tax on millionaires to treat the most seriously mentally ill and to increase programs for substance use disorders. There were concerns that reallocating funds in the Mental Health Services Act would threaten funding for existing outpatient mental health services. In addition to submitting letters in support, RPPG attended several hearings testifying in support of the bill and met with many lawmakers who initially had concerns to outline the benefits of the bill. On October 13, Governor Newsom signed SB 326 into law. 1 O City of Carlsbad 2023 End of Year Report Dec. 12,2023 Item #2 Page 15 of 21 ✓ SB 381 (Min) Electric bicycles: study (City Position, Support) SB 381 by Senator Min will require the Mineta Transportation Institute at San Jose State University to prepare a study on how to best improve the safety of electric bicycles. Given the City's prior experience in declaring a local emergency and taking a proactive approach in educating the public on the dangers of electric bikes, Senator Min's staff directly reached out to RPPG requesting support from the City of Carlsbad. Upon taking an official support position, RPPG drafted and submitted letters of support. The bill was on consent throughout the legislative process. On October 13, Governor Newsom signed SB 381 into law. Highlights: Measures Amended to Significantly Reduce Impacts to the City SB 423 (Wiener) Land use: streamlined housing approvals: multifamily housing developments (City Position, Oppose) At introduction SB 423-among various other provisions wou ld have:· • Eliminated the sunset provisions in the SB 35 streamlining program. • Permitted virtually unfettered development in high-fire and coastal zones. • Authorized the Department of General Services (DGS)to approve projects on any land owned by or leased to the State of California-without complying with CEQA, labor provisions or the review provisions required for any other SB 423 project. Leveraging the expertise of RPPG's senior policy advisors and staff, our team pulled together several policy-based analyses, including specific side-by-side comparisons to existing law. This enabled agency staff to assess the potential impacts that the measure, as introduced, would have had on the City. Moreover, our advocacy team worked directly with Senator Weiner, the Assembly Housing and Community Development committee and the California Carpenters Union to secure an amendment to eliminate the ability for DGS to develop on land leased to the state and requires the State to follow the same procedures outlined for local government with respect to CEQA and Labor provisions. Finally, working with the California Fire Chiefs, California Coastal Commission, several environmental groups, and poverty rights advocates, RPPG was successful in providing reasonable guardrails for responsible development in environmentally sensitive areas-while restoring a reasonable sunset period . While the measure is still problematic, RPPG 's sustained engagement on behalf of the City reduced many of the most challenging provisions while restoring some of the local decision making back into the bill. On October 11, Governor Newsom s1gnea SB 423 (as amended) into law. AB 1484 (Zbur) Temporary public employees (City Position, Oppose) We confirmed early in the year that the Governor was planning on signing AB 1484. This required our team to shift its approach from simply trying to stop the measure, to ensuring that the most problematic provisions of the measure were either eliminated or reduced . Throughout the year, we worked with several public and private stakeholders to build a strong opposition coalition. We engaged with the author and sponsor several times to negotiate amendments, drafted opposition letters, Floor Alerts and testified in all appropriate policy committees. In addition, we worked from a messaging standpoint to tie AB 1484 to the broader "labor package" advancing this year-measures included SB 799 (Portantino), AB 452 (Addis), and SB 558 (Rubio). The goal was to try and persuade Governor Newsom to veto these bills on behalf of the Broader coalition. While AB 1484 ultimately advanced, our efforts resulted this bill being substantially 11 City of Carlsbad 2023 End of Year Report Dec. 12,2023 Item #2 Page 16 of 21 amended to remove the grievance process language entirely-as well clarify that the provisions do not apply to contracted employees secured through third party staffing entities. On October 10, Governor Newsom signed AB 14tJ4 (as considerably amended) into Jaw. Highlights: State Budget Earmarks Apart from timing deadlines enshrined in California's constitution, the state budget process is a nuanced and often convoluted process. Timing for when requests are made is often dependent upon each individual legislator. Some legislators prefer that requests come to their capitol office, while others prefer that all budget earmarks are submitted through their district office. With respect to Carlsbad's legislative delegation, each office used a combination of approaches outlined above. Working with your legislative delegation and with the help of City staff, RPPG worked quickly to provide a set of project specific narratives highlighting how state budget dollars-if awarded-would be used to close the gap on shovel ready projects while providing tremendous community benefit. As a result, were able to secure the following state budget earmark: Project Lawmaker Amount State Street Parking Lot EV Charging Stations Assemblymember Tasha Boerner $350,000 Client Communication Client communication is a critical component of our overall advocacy approach. The better informed our clients are, the better the advocates we can be for them. One way to achieve this goal is to provide memos which include client-specific analyses of legislation, of regulatory matters, and of the overall legislative process, as needed. RPPG has sent more than 36 memos to your team in 2023 which have detailed legislative analyses that illustrate client-specific impacts and/or potential funding sources for the City and which keep it apprised of specific legislation and policies that may be of interest to the City or impact City operations, including but not limited to the following areas: • State budget, including infrastructure trailer bills. • Constitutional amendments. • Ballot measures. • Regulatory actions. • Transportation and public works. • Housing, ADUs, land use, and homelessness. • Public employer-employee relations and conditions. In 2023, RPPG has conducted weekly Zoom meetings with the City to keep it updated on what is happening in Sacramento. We call these check-in meetings the "bookends;" in between these meetings, our team connects with City staff almost daily via calls and emails. RPPG has also provided the City with a legislative summary each month which informs the City Council and staff of key developments in the Legislature and of announcements by the Administration, and which updates the City on any positioned legislation. We also present slide decks to the Legislative Subcommittee and staff, during the monthly meetings, on legislative developments and on the City's. engagement in the legislative process. 12 City of Carlsbad 2023 End of Year Report Dec. 12,2023 Item #2 Page 17 of 21 ADVOCACY FOR THE PUBLIC GOOD. Other RPPG Efforts At RPPG, the job does not begin and end with state legislative advocacy. We worked tirelessly throughout this year to assist the City of Carlsbad in any way we were able. This includes helping to solve local issues that have a state nexus, working with City staff on new policies of relevance, and providing education and awareness to City Council and staff. Modification of the City of Carlsbad's Legislative Platform: The legislative platform is a set of guiding principles that reflects the overarching ideals and vision of the Council. This document is critical in an overall legislative advocacy program as it provides broad policy statements that enable the City and its legislative advocacy firm to sift through the thousands of legislative proposals introduced each legislative session to evaluate those measures that fall within the scope of the platform. Working in conjunction with City staff, RPPG met with most departments and the Legislative Subcommittee to make major changes to the City's legislative platform. Detailed Legislative Analysis: RPPG provided detailed analyses of several pieces of legislation. These analyses have been critical in helping the City assess potential implications that pending legislation may have on operations, local discretion, and/or authority. Examples include but are not limited to: • Standalone analysis of ACA 1 (Aguiar-Curry) • Standalone analysis of ACA 13 (Ward) • ACA 1 and ACA 13 and Interfacing with the CBRT measure, Combined Analysis • Standalone analysis of the proposed Government Transparency Act • Standalone analysis of Proposition 1: Behavioral Health Infrastructure Bond Act of 2024 • Standalone analysis of AB 309 (Lee) • Enacted Housing and Transportation Bills • Summary of Enacted 2023 Surplus Land Act Bills, specifically SB 747 (Caballero), AB 480 (Ting), SB 229 (Umberg), SB 34 (Umberg), AB 129 (Budget Trailer Bill), AB 1734 (Jones-Sawyer), and AB 1469 (Kalra) • Memo on Proposition 28 • January legislative and administrative update Updates on the Legislative and Fiscal Process: RPPG provided timely informational updates during critical stages of the budget and policy processes. These updates provided the City with the necessary situational awareness of statewide trends, fiscal updates, what the City is positioned on, and how RPPG is engaging on its behalf. Examples include but are not limited to reports on : • Bill introduction deadline • House of Origin deadline • Suspense file updates • End of session legislative update • Budget updates: January proposal, May-Revise, June budget update, and final budget update • Budget Trailer bill update: Governor's infrastructure package Sacramento Lobby Day: From April 12-14, members of the city manager's office and Councilmembers were in Sacramento for the League of California Cities' City Leaders Summit. The city manager's office and the Councilmembers, accompanied by Sharon Gonsalves, met with members and staff of the Legislature, as well as several agency officials including: • Department of Fish and Wildlife • Department of Transportation 13 City of Carlsbad 2023 End of Year Report Dec. 12,2023 Item #2 Page 18 of 21 Client-Specific Webinar on 2023 New Housing Laws: In an effort to provide unique value to the City. Our team hosted a client-specific "new housing law" webinar on November 9, 2023 . The 75-minute session aimed to drive awareness on the most impactful pieces of legislation, provide insight on implementation and answer any questions clients may have on a specific issue. Our team also provided a comprehensive power point presentation as well as additional analysis on recent changes to the surplus lands act. LOOKING AHEAD: 2024 LEGISLATIVE SESSION Change in Committee Chairs With one of the most publicly contentious Assembly leadership changes in recent memory, it is a forgone conclusion that there will be major turnover in committee chairs. Upon the official transition, Speaker Rivas made swift changes to empower his closest allies-replacing Speaker Emeritus Rendon's entire team. However, given the timing of the transition, committee chairs have mostly stayed in place. As previously mentioned, the only two policy committee chair changes both have big impacts to local agencies with Isaac Bryan, the former Elections chair, elevated to Majority Leader and Cecilia Aguiar-Curry, former Local Government chair, elevated to Assembly Speaker pro Tempore. It is likely we will see major turnover in other committees directly impacting local government including Appropriations, Revenue and Taxation, Transportation, and others. Any such changes could potentially impact the pathway of priority legislation, either by creating new opportunities or further obstacles. It is widely anticipated that committee appointments will be announced sometime this month. At his inaugural ceremony in the Capitol, Speaker Rivas spoke to tackling the state's housing and homelessness crises, improving public services and infrastructure, and combating climate change as his priorities. At the end of session, the current Chair of the Assembly Labor Committee credited the leadership of Rivas "for making labor legislation a priority and helping position it to pass." Given the Speaker's agricultural roots and strong personal lived experiences and ties to the labor movement, we can expect the Speaker to continue to put his power behind these proposals in 2024 and into the future. Just prior to the Assembly adjournment of the 2023 Legislative session, Speaker Rivas indicated 2024 would include a focus on homeowners' insurance, housing, public safety, homelessness, and the fentanyl crisis. In late October, Speaker Rivas announced the formation of a new Select Committee on Retail Theft, chaired by Assemblymember Rick Zbur (D, Los Angeles). In the announcement, the Speaker stated his "expectation that the retail theft select committee will act with focus and urgency." We also may see changes to committee chairs in the Senate due to the President pro Tempore change from Senator Atkins to Senator McGuire, who are also similarly ideologically aligned. Senate committees for which turnover is most likely to impact local governments include Governance and Finance, Appropriations, and Judiciary. Although no changes in the Senate have yet been made, we can expect announcements in January after the leadership change becomes official. Given that Senator McGuire's district is heavily affected by wildfires, it is likely that we will see this continue as a priority for the Legislature. Looming Budget Deficit As projected in the final budget released in June, 2024 will see continued budgetary problems and likely additional cuts. The Legislature's non-partisan Legislative Analyst's Office (LAO) recently released a report estimating that the FY 23-24 budget solved a $27 billion deficit, which is notably below the $31.5 billion deficit that the budget closed. The LAO attributes this difference to policies that had originally been projected to be included in the FY 23-24 budget but were ultimately not enacted. The LAO had previously 14 City of Carlsbad 2023 End of Year Report Dec. 12, 2023 Item #2 Page 19 of 21 projected a $9 billion deficit for the next couple of budget cycles, though these forecasts may change when Governor Newsom releases his FY 24-25 budget proposal in January. It was projected in the May revision of the FY 23-24 budget that in a recession scenario and depending on the circumstances, general fund revenues could shrink up to $100 billion below current projections through FY 26-27. For local government, an extended period of state fiscal uncertainty has the potential of cutting both ways. On the one hand, polices that aim to reduce local authority by mandating a new program have the potential of being held due to the state's budgetary concerns associated with new state reimbursable mandates. On the other hand, the Legislature has a long history of raiding local budgets to close that gap on its own budgetary challenge. We have already seen the elimination of redevelopment agencies and the redirection of local property taxes to the Educational Revenue Augmentation Fund in order to close state budget gaps. Local governments need to remain vigilant in aggressively fighting any attempts by the state to reduce local funding formulas, or other longstanding tools that local agencies rely on to provide critical services. A Slowdown in Housing Legislation ... Not so Fast Over the past four years we have seen well over 120 new housing laws that are designed to increase the production of housing at all income levels. In 2023 alone we saw more than 150 housing-related measures introduced and about half of them were signed into law. Despite these legislative efforts, California has yet to realize the production boom that Governor Newsom has hoped for. Local government planning and land use is often easier for legislators to focus on rather than grappling with the realities of private markets, allocating major funding for subsidized housing, and challenging developers, environmental organizations, and other powerful interest groups. While local governments certainly have a responsibility to set the table and streamline local approval processes, it is arguable that much of this has already been addressed by layers of state laws, including many recently approved laws that local agencies are working diligently to implement. To that end, an October 13, 2023 LA Times Editorial, Jason Elliot, the Governor's Deputy Chief of Staff and the Administration's unofficial "Housing Czar", was quoted saying, "The next challenge is implementing the ambitious housing laws that have been passed over the last seven years. All the pieces are in place. It is now time for California to put those pieces to work, to permit the housing, to say yes to new housing and to hold local governments accountable for their responsibilities." So, will this mean a slowdown in the sheer volume of housing and homelessness-related legislation introduced next year? Likely not. It is expected that we will continue to see measures that aim to further bolster oversight and enforcement authority to the Attorney General and the Housing and Community Development Department. Moreover, it is likely that we will see more focus on measures that require local agencies to prioritize infill streamlining that fit within a jurisdiction's Sustainable Communities Strategy (SGS), resulting in increased heights and densities near transit. Measures such as AB 68 (Ward), which did not advance this year, would have required local governments to demonstrate the necessity for housing growth in suburban areas in order to meet housing mandates. These policies will be a top priority for housing advocates. Government Transparency Act Earlier this year, nonprofit Consumer Watchdog proposed a ballot measure that, if passed by voters, would require a considerable increase in both state and local agency responsibility and cost, and would likely result in a high volume of frivolous litigation filed under the California Public Records Act. Titled the "Government Transparency Act," it is currently in the process of qualifying for the November 2024 ballot. 15 City of Carlsbad 2023 End of Year Report Dec.12,2023 Item #2 Page 20 of 21 Due to the severe costs that the requirements of the Act would impose on all public agencies, it is expected to face strong response from the Legislature and the Administration. The measure has until June 28, 2024, to qualify for the November ballot. Should this occur, we have major concerns that Legislature may cut a deal with ballot proponents by passing legislation which exempts the state while enacting the same or similar provisions currently being proposed impacting local government. Should a deal be reached, this would happen quickly, and would be in exchange for the proponents withdrawing the measure from the ballot. Should this happen, local governments are at risk of being left "holding the bag." We saw a similar process occur in 2018 when the California Business Roundtable pulled its tax measure in exchange for the state banning the ability of local governments to enact local soda taxes for 12 years. Climate Bond Given that Governor Newsom balanced the FY 23-24 budget on a future resources bond, and that climate remains a top priority for the Governor and the Legislature, we anticipate such a bond to continue to advance next year and to be put to voters on the November 2024 ballot. The bond authors, currently Assemblymember Eduardo Garcia (D, Coachella) and Senator Ben Allen (D, Malibu), and other stakeholders, are currently aiming for a bond in the $10-12 billion range. Both resources bonds, AB 1567 (Garcia) and SB 867 (Allen), are currently around $15 billion, but the determination of the final amount, what's included, and which vehicle will carry the final package are all still under deliberation. Administration priorities will play a large role in shaping the end product. The expectation is that legislative leaders may push a bond through the legislative process much faster than usual in January so that stakeholders have ample time for voter outreach to be successful on the ballot. However, starker economic conditions may shape the final outcome and may change the overall debt load that the Governor is willing to endorse at the ballot box. Given the delay in income tax return collections due to IRS filing extensions, the Administration has warned the Governor's January budget proposal may have to be premised on significantly limited revenue data. Timing of the bonds may be impacted and unable to move as quickly as legislative leaders hope while the state is forced to play catch up on determining updated projections based on final returns. Wildfire Insurance Governor Newsom signed an executive order on September 21 which requested that the Insurance Commissioner take regulatory action in the state's insurance market. That same day, the Insurance Commissioner announced a package of executive actions "aimed at improving insurance choices and protecting Californians from increasing climate threats while addressing the long-term sustainability of the nation's largest insurance market." Additionally, on October 9, the Assembly Insurance Committee and the Assembly Select Committee on Wildfire Prevention held an informational hearing on the state of the homeowner insurance market in California. Leaders agreed on the need for mitigation and for insurers to adjust rates based on mitigation efforts that homeowners have taken. However, there was disagreement whether insurance companies were taking an appropriate response to the wildfires. It is likely that this will be a hot topic in 2024, particularly given the new Senate President Pro Tempore, Mike McGuire, has a personal connection to the issue as his district has experienced multiple catastrophic wildfires in recent years. We anticipate we may see legislation in 2024 related to the homeowner insurance market, that may include measures relating to streamlining regulations, incentives for homeowners to take mitigation actions, or funding for communities to build additional defensible spaces. -----------END OF REPORT 16 City of Carlsbad 2023 End of Year Report Dec. 12,2023 Item #2 Page 21 of 21 City of Carlsbad Legislative Subcommittee Renne Public Policy Group │ www.publicpolicygroup.com Dane Hutchings, Managing Director, Renne Public Policy Group December 12, 2023 RPPG/Carlsbad: Key Highlights 2023 1,500 Pieces of legislation tracked on behalf of the City. 13/19 Success rate on legislative engagement –13 signed, 2 vetoed, and 4 two-year bills. $350K In new funding from the state budget for the City for the State Street Parking Lot EV Charging Stations Project with the help of Assemblymember Tasha Boerner. SB 428 Chaptered on 9/30 The City’s sponsored legislation. RPPG worked with the City, bill author Senator Blakespear, and the Administration to ensure it became law. Renne Public Policy Group │ www.publicpolicygroup.com 2 ~ 11111 Bills of Interest Renne Public Policy Group │ www.publicpolicygroup.com 3 Bills That The Committee Has Positioned On Sponsored Legislation: SB 428 (Blakespear) Renne Public Policy Group │ www.publicpolicygroup.com SB 428 (Blakespear) Temporary restraining orders and protective orders: employee harassment This bill would additionally authorize any employer whose employee has suffered harassment, as defined, to seek a temporary restraining order and an injunction on behalf of the employee and other employees upon a showing of clear and convincing evidence that an employee has suffered harassment, that great or irreparable harm would result to an employee, and that the respondent’s course of conduct served no legitimate purpose. City Position: Sponsor Status: Chaptered by Secretary of State - Chapter 286, Statutes of 2023 4 Legislative Update: Mental Health (Prop 1) Renne Public Policy Group │ www.publicpolicygroup.com AB 531 (Irwin) The Behavioral Health Infrastructure Bond Act of 2023 This measure would, if approved by the voters, authorize the issuance of $6.38 billion in bonds to finance grants for community-based treatment, care, and housing for people experiencing homelessness, at risk of homelessness, or living with a behavioral health challenge. City Position: Support Status: Chaptered by Secretary of State - Chapter 789, Statutes of 2023 SB 326 (Eggman) The Behavioral Health Services Act This measure would, if approved by voters, rename the Mental Health Services Act to the Behavioral Health Services Act, expand its scope to include the treatment of substance use disorders, and revise the distribution of its funds. City Position: Support Status: Chaptered by Secretary of State - Chapter 790, Statutes of 2023 5 Legislative Update: Mental Health Renne Public Policy Group │ www.publicpolicygroup.com SB 43 (Eggman) Behavioral health This bill expands the definition of gravely disabled to included a person’s inability to provide for their needs for nourishment, personal or medical care, or safety due to mental health or substance abuse disorder. City Position: Support Status: Chaptered by Secretary of State - Chapter 637, Statutes of 2023 6 Legislative Update: Public Safety Renne Public Policy Group │ www.publicpolicygroup.com AB 33 (Bains) Fentanyl Misuse and Overdose Prevention Task Force This bill establishes the Fentanyl Misuse and Overdose Prevention Task Force to undertake various duties relating to fentanyl misuse. The bill requires the task force to be cochaired by the Attorney General and the State Public Health Officer, or their designees. City Position: Support Status: Chaptered by Secretary of State - Chapters 887, Statutes of 2023 AB 701 (Villapudua) Controlled substances: fentanyl This bill increases sentencing requirements for fentanyl, heroin, or cocaine possession or sales, depending on the amount. City Position: Support Status: Chaptered by Secretary of State - Chapters 540, Statutes of 2023 7 Legislative Update: Public Safety Renne Public Policy Group │ www.publicpolicygroup.com SB 19 (Seyarto) Fentanyl Misuse and Overdose Prevention Task Force This bill establishes the Anti-Fentanyl Abuse Task Force to undertake various duties relating to fentanyl abuse including, among others, collecting and organizing data on the nature and extent of fentanyl abuse in California and evaluating approaches to increase public awareness of fentanyl abuse. The bill would require the task force to be chaired by the Attorney General. City Position: Support Status: Chaptered by Secretary of State - Chapter 857, Statutes of 2023 8 Legislative Update: Government Ops Renne Public Policy Group │ www.publicpolicygroup.com AB 40 (Rodriguez) Emergency Medical Services This bill establishes a statewide standard for ambulance patient offload time and require a protocol to reduce ambulance patient offload time if it exceeds the statewide standard. City Position: Support Status: Chaptered by Secretary of State - Chapter 793, Statutes of 2023 AB 584 (Hart) California Coastal Act of 1976: coastal development: emergency waiver In the event of a disaster or similar situation where emergency work is necessary, the coastal commission can authorize emergency actions or projects within the coastal zone up to $25,000, a threshold that has not been updated since 1976. City Position: Support Status: Chaptered by Secretary of State - Chapter 118, Statutes of 2023 9 Legislative Update: Brown Act Renne Public Policy Group │ www.publicpolicygroup.com AB 557 (Hart) Open meetings: local agencies: teleconferences This bill eliminates the sunset provision in AB 361 (R. Rivas, 2021) and would extend renewal period from 30 days to 45 days. City Position: Support Status: Chaptered by Secretary of State - Chapter 534, Statutes of 2023 10 Legislative Update: Transportation Renne Public Policy Group │ www.publicpolicygroup.com SB 381 (Min) Electric bicycles: study This bill requires the Mineta Transportation Institute at San Jose University to conduct a study on e-bikes to inform and improve safety of riders and pedestrians. City Position: Support Status: Chaptered by Secretary of State - Chapter 869, Statutes of 2023 11 Legislative Update: Labor Renne Public Policy Group │ www.publicpolicygroup.com AB 1484 (Zbur) Temporary public employees This bill requires temporary public employees to be automatically included in the same bargaining unit as the permanent employees. Significantly amended to remove the grievance process language and to clarify that contract services providers are not included. City Position: Oppose Status: Chaptered by Secretary of State - Chapter 691, Statutes of 2023 12 Legislative Update: Housing Renne Public Policy Group │ www.publicpolicygroup.com SB 423 (Wiener) Land use: streamlined housing approvals: multifamily housing developments This bill authorizes the Department of General Services to act in the place of a locality or local government, at the discretion of that department, for purposes of the ministerial, streamlined review for development in compliance with the above- described requirements on property owned by or leased to the state. The bill was considerably amended to: •Create a 2036 Sunset •Eliminate the DGS authority to develop on land leased to the state •Provide development guardrail for development in coastal and high fire zones City Position: Oppose Status: Chaptered by Secretary of State - Chapter 778, Statutes of 2023 13 Legislative Update: Water Renne Public Policy Group │ www.publicpolicygroup.com AB 399 (Boerner) Water Ratepayers Protections Act of 2023: County Water Authority Act: exclusion of territory: procedure This bill requires a member agency to receive majority vote of the electorate before it can detach from a county water authority. City Position: Watch Status: Chaptered by Secretary of State - Chapter 802, Statutes of 2023 Note – the following statement was added to the legislative platform: “Support legislation that establishes a more equitable voting structure at the San Diego County Water Authority, such as by providing that Board decisions be approved by both a tally vote majority and a weighted vote majority of the member agencies.” 14 State Legislature: Looking into 2024 Second Year of Two-Year Session: Bills that did not make it out of their house this year have until January 31st to pass their house of origin. Election Year: Being an election year, we will see turnover in the legislature and several important ballot measures on the March and November ballots. Assembly Leadership Changes: •Cecilia Aguiar-Curry (D, Winters) is the new Majority Leader •Jim Wood (D, Santa Rosa) is the new Speaker Pro Tempore •Juan Carrillo (D, Los Angeles) is the new chair of Local Government •Kevin McCarty (D, Sacramento) is the new chair of Public Safety •Chris Ward (D, San Diego) is the new chair of Housing Renne Public Policy Group │ www.publicpolicygroup.com 15 State Budget: Looking into 2024 2023-24 Budget Act:Included a $310 billion spending plan with a projected deficit of $31.7 billion. Deferred revenues from late federal collection:The budget process this year was made more complicated when many Californians were granted until October, instead of April,to file income tax returns because of storm-related disaster declarations.On December 7,the LAO released a projection of $68B looming budget deficit due to revenue received in November being significantly below projections. Renne Public Policy Group │ www.publicpolicygroup.com 16 Looking Forward: Key Dates in 2024 Renne Public Policy Group │ www.publicpolicygroup.com January 3: Legislature reconvenes January 10: Governor’s 24-25 budget proposal announced January 19: Last day to submit bill requests to the Office of Legislative Counsel January 31: Last day for each house to pass two-year bills in their house of origin February 16: Last day to introduce bills in 2024 March 22-March 31: Spring Recess May 24: House of Origin Deadline (for new measures) 17 Questions/Discussion Thank You! Renne Public Policy Group │ www.publicpolicygroup.com