Legislation Details

File #: HIST-9555    Version: 1 Subject:
Type: Historical Status: Consent Agenda
In control: City Council Meeting Agenda
On agenda: 10/13/2008 Final action: 10/13/2008
Title: League of California Cities Priority Focus Editions #37 dated September 19, 2008 and #38 dated October 3, 2008.
Attachments: 1. League of California Cities Priority Focus Edition - Priority Focus #37.pdf, 2. League of California Cities Priority Focus Edition - Priority Focus #38.pdf
IN THIS ISSUE: September 19, 2008 Issue #37-2008 Page 7: Flex Your Power Award Applications Due Oct. 10 League Latino Caucus Hosts Events at Annual Conference Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff Special Note: Due to the League’s 2008 Annual Conference, Priority Focus will not publish on Friday, Sept. 26. Publication will resume on Friday, Oct. 3. LEGISLATURE EXPECTED TO APPROVE BUDGET DEAL Neither Local Government nor Transportation Revenues Used to Balance Budget After week of veto ultimatums and override stare downs, the term “Wild West” certainly applies to California’s budget stalemate which finally appeared to be over 80 days into the new fiscal year when Gov. Arnold Schwarzenegger and legislative leaders came to an agreement late Thursday afternoon. The agreement, if passed and signed, would resolve how to close the $15.2 billion shortfall. City officials can breathe a sigh of relief — the budget does not include borrowing of local government (Proposition 1A) or transportation (Prop. 42) revenues. It does, however, include a one-year, $350 million seizure of redevelopment funds. For more, see Page 2. •••••••••••••••••••••••••••••••••••• SB 375 SESSION SCHEDULED FOR ANNUAL CONFERENCE A session on SB 375 (Steinberg) is scheduled for Thursday, Sept. 25, during the League’s annual conference in Long Beach next week. The open session will be lead by League staff and leadership and will address questions about this bill which has land use implications for cities. SB 375 is currently on Gov. Arnold Schwarzenegger’s desk waiting for his signature. For more, see Page 6. •••••••••••••••••••••••••••••••••••• PRESIDENT BUSH SIGNS FEDERAL HIGHWAY USER TRUST FUND REMEDY BILL President Bush signed the Restoration of Highway Trust Fund Act, H.R. 6532, this week, providing $8 billion dollars for the Highway User Trust Fund (HTF). This funding allows reimbursements to state highway projects to continue through the remainder of the 2008 federal fiscal year. For more, see Page 6. 2 ‘Budget’ Continued from Page 1… The Governor had announced Tuesday afternoon that he would veto the budget the Legislature passed early that morning on the grounds that it “kicked the can down the alley” and did not provide responsible budget reform. In addition, the Governor criticized the Legislature’s proposal to withhold higher levels of state income tax to raise $1.6 billion in revenues (in effect an interest- free float loan from taxpayers). Legislators threatened a veto override. The Governor countered with a promise to veto most of the Legislature’s pending bills. In short, California’s government appeared on the verge of meltdown. The League issued a press statement Tuesday afternoon communicating that the initial legislative budget, which some legislators described as a “Ponzi scheme,” underscored the drastic need for comprehensive state budget reform. The statement also opposed the $350 million redevelopment fund take. The revised budget accord meets the Governor’s demands for stricter restrictions on accessing the budget reserve and provides additional authority to make mid-year corrections when revenues and expenses fall out of balance. Instead of withholding more taxes from paychecks as a interest-free loan, the new budget would raise these revenues by increasing penalties on corporations for tax violations. The Senate is scheduled to go into session to make necessary adjustments to the budget today (Friday) at 4 p.m., with the Assembly to follow at 5 p.m. Funding Areas of Specific Interest to Cities The final budget is expected to include funding allocations for these programs of importance to California cities. The analysis below also reports on areas discussed with the Governor’s May Revise even if not funded with the final budget package. At the end of this analysis is a chart outlining the budget trailer bills for FY 2008-09. Local Government Financing No Borrowing. The budget does not borrow from Prop. 1A (property tax) or Prop. 42 (sales tax on gas) funds. Redevelopment Agencies. The budget includes a one-year, one-time, ERAF shift of $350 million from redevelopment agencies (included in AB 1389, trailer bill). These funds will not be repaid. Redevelopment agencies must pay their shares of the $350 million prior to May 10, 2009. Borrowing from redevelopment housing funds is permitted under restricted circumstances. Legislative bodies are allowed to loan redevelopment agencies funds to make the payment based upon terms established by the legislative body and agency. Estimated impacts to redevelopment agencies can be found at http://www.calredevelop.org/AM/Template.cfm?Section=Home&TEMPLATE=/CM/ContentDisplay .cfm&CONTENTID=4665 State Mandates Reimbursement. The budget will defer $75 million in state mandate repayments. Cities receive about 30 percent of mandate repayments. Public Safety COPS/Juvenile Justice Grants. The Citizen Option for Public Safety (COPS)/Juvenile Justice Crime Prevention Act Program is funded at $214.2 million, or $107.1 million for each program. The budget act specifies that these payments will be made to local governments in four equal payments in September, December, March and June rather than in a lump sum. Details on each city’s allocation is available at www.californiacityfinance.com/COPSfy08MCest.pdf. Booking Fees. The budget includes an appropriation of $31.5 million for county sheriffs for Local Detention Facilities (Gov Code 29552). This is 10 percent lower than FY 2007-09 levels. Current law stipulates that in any year that the budget appropriation is less than $35 million, counties may impose booking fees on cities in proportion to the amount under appropriation. In this case, it 3 would be up to 10 percent of the rate in effect on June 30, 2006, adjusted annually by the annual California Consumer Price Index plus 1 percent compounded annually. For more information, see http://www.californiacityfinance.com/BkgFees090919.pdf Things That Did Not Happen: Corrections Reforms. The Corrections Trailer Bill (AB 841) was not taken up and thus not passed. Consequently, the parole reforms and sentencing changes discussed earlier this year will not be carried out. Health Care Receiver. The budget package did not include funding for the federal healthcare receiver’s demands to provide up to $8 billion over the next five years to bring the state’s health and mental health system in California’s 33 prisons up to a constitutional level of care. No Emergency Response Initiative Surcharge. The final budget deal did not include the insurance surcharge for the Emergency Response Initiative (ERI) (formerly known as the Wildland Firefighting Initiative). Through this program, the emergency response capabilities of the California Department of Forestry and Fire Protection (CAL FIRE), the Office of Emergency Services (OES) and the Military Department would have been increased. ERI funds are partially backfilled by increased General Fund spending. No Department of Justice (DOJ) Forensic Laboratory Fees. The previous budget proposal for the Department of Justice to charge local agencies a fee-for- service for forensic laboratory tests was eliminated. Transportation Prop. 42. The Legislature’s FY 2008-09 budget fully funds Proposition 42 at a level of approximately $1.4 billion for investment in state highway improvements, local streets and roads maintenance, and transit. A city-by-city breakdown of allocations is posted online at www.californiacityfinance.com/Prop42alloc.pdf. Highway User Tax Account. This funding source is not wedded to the state budget process. Payments from April through September were delayed when the Governor declared a mid-year cash flow crisis in February. Reimbursements will begin at the end of September. Prop.1B Local Streets and Roads Account. AB 88 includes a $187 million appropriation for cities from the Prop. 1B Local Streets and Roads (LSR) account for FY 2008-09. (Counties have a separate allocation.) This appropriation will be available on a first come, first served basis to cities that have already received their full allocation in FY 2007-08. Cities must meet the following criteria to be eligible for funding: 1. Received full allocation for FY 2007-08; 2. Submitted Prop 1B LSR Annual Report to Department of Finance for FY 2007-08; 3. Agree to use the funds only for projects that do not currently have dedicated funding; 4. Funds must be committed to projects before July 1, 2009: and 5. Must certify that the unencumbered balance of their road fund is no more than three months of anticipated Highway User Tax Account (HUTA) and Prop. 42 income. If the unencumbered balance exceeds this amount, the city must agreed to decrease the unencumbered balance be either of the following: a. An amount equivalent to the allocation received in FY 2008-09, or b. Until the unencumbered balance is no more than three months of anticipated HUTA and Prop. 42 income. Note: For the purpose of this item, “unencumbered” means any portion of funding that is not designated, through prior approval by the city council, for use on the planning, review, design, or construction phase of a project currently underway at the time of the road fund report. 4 Prop. 1B State-Local Partnership Program. The Legislature also included implementing language for the Prop. 1B State-Local Partnership Program in AB 268 (Transportation Trailer Bill). The program requires a dollar-for-dollar match to access funds and creates two separate sub-accounts. Ninety-five percent of the funds will be available by matching funds from voter-approved fees or taxes solely dedicated to transportation purposes, and 5 percent will be available by matching funds from uniform developer fees through a competitive grant program. The California Transportation Commission (CTC) will develop further guidelines. The budget appropriates approximately $200 million in FY 2008-09. Public Transit. The budget funds public transit at varying levels through several methods: • Provides $406 million for State Transit Assistance (STA) account, but the Governor is expected to blue-pencil the STA amount to $306 million as he proposed in his May revise and reiterated in his August compromise budget to fund the home-to-school programs. (Blue penciling is when the Governor eliminates items from the passed budget.); • Allocates $60 million as a loan from the Traffic Congestion Relief Fund to keep the Public Transportation Account solvent; • Does not provide any funding for transit capital projects in the State Transportation Improvement Program; • Appropriates $350 million for the Public Transportation Modernization, Improvement, and Service Enhancement Account; and • Allows FY 2007-08 State Transit Assistant disbursements for the third and fourth quarters to be made by the Controller. Indian Gaming Special Distribution Fund. As part of the budget package, the Legislature approved AB 158 (Torrico). This bill appropriates $30 million from the Indian Gaming Special Distribution Fund (SDF) in FY 2008-09 to provide grants to local government agencies for the mitigation of casino impacts. It would also implement the following programmatic changes: • Modifies the composition of an Indian Gaming Local Community Benefit Committee (LCBC) if only one city is located within four miles of a tribal casino to state that only one city elected official will serve on the LCBC; • Grants can be used only to mitigate impacts from casinos. If grants are used for any other purpose, the funds will revert back to the SDF; and • Extends the sunset date of the SDF programs to January 1, 2010. Housing Prop. 1C Allocations. The budget allocates Prop. 1C funding for FY 2008-09. This funding includes: • $200 million for Regional Planning Housing and Infill Incentive Account; • $95.5 million for the Affordable Housing Innovation Fund; and • $95 million for Transit-Oriented Development Implementation Fund. The final budget does not contain the $30 million for Urban, Suburban, and Rural Parks grants included in previous versions of the budget. There is legislation pending with the Governor that would appropriate funds to form the guidelines for the grant program, but the earliest that grants will be available is 2010. Resources and Environment State Fire Marshall Building Code Inspections. Assembly Bill 338 (Resources Trailer Bill) requires the State Fire Marshal to charge local agencies and private entities for fire and life safety building code inspections and related fire and life safety activities rendered by the State Fire Marshal. The State Fire Marshal would be required to charge local government and private entities for the amount sufficient to recover the costs of the services provided. Truck Fleet Retrofits. The California Air Resources Board (ARB), under the revised budget, would transfer funds from its Air Quality Improvement Fund to finance low or zero-interest loans 5 and loan guarantees to assist truck retrofits proposed by ARB. Funds would be available to owners and operators of on-road heavy-duty diesel-fueled motor vehicles for costs associated with early compliance with ARB air regulations. Props. 84 and 1E. The budget makes several minor adjustments related to specific projects funded by Props. 84 and 1E. Governor’s Lottery and Budget Reform Proposals Lottery Securitization. The revised budget includes a lottery securitization proposal that is expected to generate $5 billion in debt relief for FY 2009-10 and likely more in the following year. Proceeds will be used for budgetary borrowing, bonded indebtedness, and payments to the Budget Stabilization Fund (BSF). It also includes provisions to protect education from any decrease in funds. Budget Reform.* Reform measures are based on recommendations from the Legislative Analyst’s Office and include: • Changing the name of the Budget Stabilization Account to Budget Stabilization Fund and increasing the size of the BSF from 5 percent to 12.5 percent of General Fund Revenues; • New restrictions on transfers out of the BSF; • Capturing and depositing into the BSF any “April Surprise” (revenues over 5 percent of projections) not needed to fulfill Prop. 98 (education) requirements; • Allows the Governor and Director of the Department of Finance to make mid-year reductions of General Fund expenditures if 1) General Fund total available resources for the fiscal year will decline substantially below the estimate of total General Fund resources assumed in the Budget Act; or, 2) General Fund expenditures will increase substantially above the estimate of General Fund resources available; • Allows the Governor and Director of the Department of Finance to suspend Cost of Living Adjustments (COLA) for up to 120 days, or until the Legislature sends to the Governor legislation to address a fiscal emergency if one is declared. *This proposal requires voter approval, and a special election in 2009 is expected. State Revenues Final and complete details on the revenue portion of the budget are not available at the time of this writing. However, it is expected that the following provisions will be included: • No income tax increases for upper income levels or dependent credit reductions. • No increases in corporate tax rates. However, penalties for corporations who are consistently delinquent on taxes will double from 10 percent to 20 percent. • An estimated $2.3 billion from accelerating tax payments for corporations and individuals who make quarterly tax payments. • The Governor's accrual accounting change, for about $1.9 billion in revenue. • Expansion of the Net Operating Loss suspension proposal by also limiting various incentive credits for two years, for increased revenues of about $900 million. • Closes the yacht tax loophole by reinstating the 12 month use tax presumption for yachts and aircrafts purchased out of state and brought into California. During FY 2008-09, this is estimated to generate $17 million for the state and $11.8 million for local governments. • Authorization for loans and transfers of $855 million from various special funds to the General Fund. FY 2008-09 Budget Bills Passed by the Legislature The League prepared a chart outlining the FY 2008-09 budget bills passed by the Legislature. Note: The Corrections Trailer Bill (AB 841) and the bond for the Corrections receiver (AB 1189) were not taken up, and therefore not passed. Two additional measures failed in the Senate – a bill to create a Film Commission to award grants to movie studios and a bill related to the Sentinel power plant. 6 The League prepared the chart below outlining the FY 2008-09 budget bills passed by the Legislature. AB 1781 Conference Committee Report AB 88 Supplemental Budget Bill Makes changes to the Conference Committee Report and includes additional Prop. 1B allocation. AB 268 Transportation Budget Bill AB 519 Education Trailer Bill AB 1183 Health Trailer Bill AB 1279 Human Services Trailer Bill AB 1338 Resources Trailer Bill AB 1389 General Government Trailer Bill Contains information for several issues including public safety and redevelopment. AB 1452 Revenue Package #1 (required two-thirds vote) ABx3 36 Revenue Package #2 (required majority vote) As of this writing, this bill accelerates personal income tax withholding in the first six months of 2009. It is expected that the bill will either be withdrawn or substantially amended. AB 1526 Prop. 49 (After School Programs) Changes AB 1654 Lottery: Modernization AB 1741 Lottery: Securitization SCA 12 Lottery: Constitutional Change SCA 13 Budget Reform Constitutional Amendment AB 10 High Tech Overtime AB 186 Rural Crime Program Extension AB 158 Indian Gaming Special Distribution Fund (formerly AB 1389, Torrico) AB 1805 Mental Health Services for Special Education Students (formerly SB 292, Wiggins) AB 2026 Surplus State Property AB 2246 Fresno Joint Powers Charter School AB 2784 Medi-Cal: Hospital Reimbursement _____________________________________________________________________________ ‘SB 375’ Continued from Page 1… If adopted, SB 375 would do three things: 1. Use the regional transportation planning process to help achieve AB 32 goals; 2. Coordinate the Regional Housing Needs Allocation (RHNA) process with the regional transportation planning process; and 3. Use the California Environmental Quality Act (CEQA) streamlining as an incentive to encourage residential projects which help goals outlined in AB 32 to reduce greenhouse gas (GHG) emissions. The SB 375 session is scheduled from 12:45 to 2 p.m. on Thursday, Sept. 25 in room 203BC of the Long Beach Convention Center. _____________________________________________________________________________ ‘Highway User Trust Fund’ Continued from Page 1… The bill signing follows a push from Congress to provide funding to the dwindling account to avoid further delays in reimbursement. Earlier this month, the U.S. Department of Transportation (DOT) announced that it would delay reimbursements to state projects, providing funding once a week instead of twice daily, to stretch the shrinking balance. California is estimated to receive $930 million from the account in funding for highway and mass transit systems. This is approximately one third of California's federal highway funding. 7 DOT estimated a zero dollar account balance for the HTF by October 2008 because of the significant drop in fuel consumption across the nation. _________________________________________________________________________ Flex Your Power Award Applications Due Oct. 10 Flex Your Power (FYP), the statewide energy marketing campaign, is requesting applications for its 6th Annual Flex Your Power Award. Open to public agencies, businesses and organizations, this award highlights the achievements of California’s energy efficiency and peak demand response leaders. Award winners will receive recognition at the annual awards ceremony, through an on-line advertising campaign and be featured in FYP’s e-newsletter. In addition, winners will be considered for inclusion in FYP’s best practices guide. Applications are due Oct. 10 and can be found online at www.fypower.org/feature/awards. _____________________________________________________________________________ League Latino Caucus Hosts Events at Annual Conference The Latino Caucus is holding a number of events in conjunction with the League’s annual conference next week in Long Beach. Everyone is welcome to attend all of the events. Below is a brief summary of the Latino Caucus’ offerings which are scheduled for Friday, Sept. 26: • 11:15 a.m. to 12:30 p.m., conference session “Relationship between Elected Officials and Staff,” Room 103A/B, Long Beach Convention Center. This session will be lead by Yuri Calderon and Bonnie Garcia from Garcia Calderon Ruiz, LLP. • 12:30 p.m., Latino Caucus Annual Business Meeting, Room 103A/B, Long Beach Convention Center. Caucus President Henry Perea will discuss major 2008 accomplishments and announce $15,000 in educational scholarships to college-bound Latino students. • 6 to 9 p.m., 18th Annual Gala Award Reception, Sevilla Restaurant, 140 Pine Street, Long Beach. The evening features keynote speaker Assembly Member Fabian N un ez (D-Los Angeles), the former Speaker of the Assembly. Please contact the Latino Caucus for more information at (916) 669-1343. _____________________________________________________________________________ Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff Visit (and bookmark!) the League’s Legislative Resources Web page (www.cacities.org/legresources). You will find a roster and contact information for the League’s legislative staff; the online Bill Search program, background materials on lobbying your legislators, and more. _____________________________________________________________________________ IN THIS ISSUE: October 3, 2008 Issue #38-2008 Page 10: League Board Acts on November 2008 Ballot Initiatives Page 11: Board Endorses Sedalia Sanders for NLC Second Vice President New Board Officers Named Page 12: Transit Oriented Development and Infill Incentive Grant Program Meetings Scheduled Water Control Board Revises Fee Schedule Page 13: Menifee Becomes California’s 480th City Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff GOVERNOR SIGNS SB 375 Saying that it was the “sequel” to AB 32, Gov. Arnold Schwarzenegger signed SB 375 (Steinberg) into law on Tuesday, Sept. 30. The League supported this legislation because it addresses implementation of the 2006 Global Warming Act. Most importantly, Sen. Steinberg’s bill assures that the decisions about how to achieve greenhouse gas emissions from cars and light trucks will remain in the hands of locally elected officials. For more, see Page 2. •••••••••••••••••••••••••••••••••••• GOVERNOR TAKES FINAL ACTION ON 2008 LEGISLATION With the state budget finally in place, Gov. Arnold Schwarzenegger turned his attention to legislative matters, signing and vetoing bills on his desk. Tuesday, Sept. 30 was the constitutional deadline for the Governor to act on bills and he vetoed a higher percentage of bills this year than any previous governor He explained that the Legislature’s delay in passing the FY 2008-09 state budget forced him to prioritize the bills sent to his desk. For more, see Page 2. •••••••••••••••••••••••••••••••••••• LEAGUE ANNUAL CONFERENCE WRAPS UP The 110th League of California Cities Annual Conference was held last week in Long Beach, with Gov. Arnold Schwarzenegger firing up attendees in a special session held on Thursday, Sept. 25. More than 1,800 city officials attended the conference at the Long Beach Convention Center and were briefed on key legislative issues affecting cities. For more, see Page 7. 2 ‘SB 375’ Continued from Page 1… In addition, SB 375 will lead to greater efficiency in government because it aligns what could have been three separate planning processes–one for transportation, one for housing, and one for reducing greenhouse gas emissions–into a single process. This will provide more certainty for General Plans and assures better coordination between state agencies. SB 375 provides relief from the California Environmental Quality Act (CEQA) for residential projects that are consistent with the regional plan to achieve greenhouse gas reductions. The bill also amends the housing element law, extending the amount of time that the state must approve most local housing elements from five-to-eight years. Because SB 375 is so complex, the League has prepared a technical overview of the bill to help city local officials understand its scope. This paper is available on the League’s Web site (http://www.cacities.org/resource_files/27223.SB 375 Implementation Final 9-19-08(1.1).pdf.) _____________________________________________________________________________ ‘Sign and Veto’ Continued from Page 1… More than 130 pieces of legislation received a veto message stating that the bill was not among the highest priorities for California. Legislation receiving this message are indicated with an asterisk (*) below. In total, the Governor signed 772 bills and vetoed 415 bills this year. The Governor’s final action was consistent with the League’s request two-thirds of the time. Out of 42 bills, 28 decisions were consistent with the League’s request, and 14 were not. On four bills that were vetoed, and for which the League had requested a signature, the Governor’s message indicates the delay in the budget as the reason, thus making it likely they will be reintroduced next year. Further information on bills can be found on the League Web site at www.cacities.org/billsearch. A list of his actions for bills the League of California Cities followed is below by legislative area. Employee Relations AB 2754 (Bass) Request: Veto Result: Signed – Chapter 684, Statutes of 2008 Provides a rebuttable presumption under the workers’ compensation system for public safety employees who claim a methicillin-resistant Staphylococcus aureus (MRSA/staph)-related injury. AB 2918 (Lieber) Request: Veto Result: Vetoed Prohibits the use of a consumer credit report for employment purposes, with some exceptions. AB 3063 (Committee on Labor & Employment) Request: Veto Result: Vetoed Prohibits employers from requesting that an applicant disclose information or use for employment related decisions information concerning a criminal conviction that was expunged or judicially ordered sealed. SB 1115 (Midgen) Request: Veto Result: Vetoed Weakens the apportionment statute (defining the portion of injury related to the workplace, as opposed to pre-existing conditions) implemented by SB 899 (Poochigian 2004), the landmark legislation that implemented much needed workers’ compensation reforms, and allow the courts to overrule apportionment even when based on findings of actual previous disability. SB 1296 (Corbett) Request: Veto Result: Signed – Chapter 712, Statutes of 2008 Provides superior courts exclusive jurisdiction over actions involving interest arbitration where the action involves representatives of firefighters. 3 Environmental Quality AB 31 (De Leon) Request: Sign Result: Signed – Chapter 623, Statutes of 2008 Requires the California Department of Parks and Recreation (DPR) to establish a local assistance program to distribute grants to the most park needy communities across the state, with funding derived from the $400 million that was designated for this purpose in Proposition 84. AB 2270 (Laird) Request: Sign Result: Vetoed Allows cities and water agencies to restrict usage of specific types of water softeners only if the State Water Resources Control Board or the regional water quality control board made a finding that control of residential salinity will contribute to the achievement of water quality objectives in the region. AB 2347 (Ruskin) Request: Sign Result: Signed – Chapter 572, Statutes of 2008 Requires a manufacturer that owns or owned a name brand of mercury-added thermostats sold in this state before January 1, 2006, to establish and maintain a collection and recycling program for out-of-service mercury-added thermostats. AB 2939 (Hancock) Request: Sign Result: Vetoed Allows those local governments who wish to enact stronger green building standards to do so without the existing restrictions of climatic, geological or topographical conditions. SB 1016 (Wiggins) Request: Sign Result: Signed – Chapter 343, Statutes of 2008. Re-calculates the way solid waste diversion efforts are imposed upon local governments, and also revises the timelines that local jurisdictions must adhere to when reporting to the Integrated Waste Management Board. SB 1357 (Padilla) Request: Sign Result: Signed – Chapter 697, Statutes of 2008 Authorizes the Department of Conservation to expend up to $20 million from July 1, 2009, to Jan. 1, 2012, for recycling and litter reduction grants and programs, and requires a grant recipient to submit a report to the department and would require the department to publish an evaluation of grants made pursuant to these provisions, including a summary of those reports. SB 1548 (Florez) Request: Sign Result: Signed – Chapter 622, Statutes of 2008 Creates a local city selection committee (Existing law requires five members to be appointed by cities within the territory of the district, based on region and population) within the San Joaquin Valley Unified Air Pollution Control District Board of Directors. Public Utilities: Energy AB 2466 (Laird) Request: Sign Result: Signed – Chapter 540, Statutes of 2008 Establishes the Renewable Energy Self-Generation Program to allow a city, county, city and county, special district, school district, or other public agency to benefit from the excess electricity produced at the local entity's facility. The bill authorizes a local governmental entity to receive a credit on the bill of a benefiting account, equal to the amount of the electricity it exported to the electrical grid and from an eligible renewable generating facility. SB 980 (Padilla) Request: Veto Result: Vetoed Requires the California Energy Commission to evaluate the adequacy of the electric distribution system of local publicly owned electric utilities as a part of their 2009 Integrated Policy Report. 4 Land Use/Housing AB 749 (Wolk) Request: Sign Result: Signed – Chapter 477, Statutes of 2008 Requires, as of March 1, 2009, residential care facilities for the elderly to have an emergency plan that includes specified provisions and is available, upon request, to both residents onsite as well as to local emergency responders. AB 842 (Jones) Request: Veto Result: Vetoed Requires the Department of Housing and Community Development to rank applicants for the award of capital improvement project grants based upon a reduction of vehicle miles traveled as a result of a qualifying infill project, as specified. AB 2000 (Mendoza) Request: Sign Result: Vetoed Provides additional flexibility to a local government in the regional housing need assessment (RHNA) process, by allowing a local government that exceeds its regional housing need during a planning period to count the excess units toward meeting its share in the next planning period. AB 2280 (Saldana) Request: Sign Result: Signed – Chapter 454, Statutes of 2008 Makes several technical fixes to the Density Bonus Law and addresses an absurd interpretation of the law relating to the bonus awarded to affordable senior projects within larger scale developments. AB 2494 (Caballero) Request: Sign Result: Signed – Chapter 641, Statutes of 2008 Establishes the Housing-Related Parks Program to govern the allocation of $200 million under the administration of the Department of Housing and Community Development (HCD). Requires the department to use funds allocated from the account, to provide grants for the creation, development, or rehabilitation of park and recreation facilities, to cities and counties that meet certain criteria, including adoption of a HCD approved housing element, and issue housing starts for newly constructed units that are affordable to very low or low-income households. SB 375 (Steinberg) Request: Sign Result: Signed – Chapter 728, Statutes of 2008 Aligns transportation, housing, and greenhouse gas (GHG) emissions regional planning processes, provides incentives through CEQA streamlining for infill projects, and provides additional certainty for local governments that engage in planning processes that will result in reductions in GHG emissions. SB 992 (Wiggins) Request: Sign Result: Vetoed Requires the Department of Alcohol and Drug Programs (ADP) to administer the licensure and regulation of adult recovery maintenance facilities, and requires the department to adopt emergency regulations, implement the fee process for initial licensure, the provisions for the extension of licensure, follow up compliance visits, and civil penalties. Public Safety AB 38 (Nava) Request: Sign Result: Signed – Chapter 372, Statutes of 2008 Consolidates the roles and responsibilities of the Governor’s Office of Emergency Services and Office of Homeland Security into a new state agency, the California Emergency Management Agency, for a more efficient state-wide disaster preparedness and response system. 5 AB 759 (Karnette) Request: Sign Result: Vetoed Requires local fire enforcing agencies to inspect elderly care facilities with six or fewer residents, applying standards established by the State Fire Marshal and Department of Social Services, to ensure the fire safety of the facility. This bill also permits the fire enforcing agencies to collect reasonable fees from the facility owner to cover the expense of inspections. AB 844 (Berryhill) Request: Sign Result: Signed – Chapter 731, Statutes of 2008 Creates additional requirements on scrap metal recyclers and traders to prevent scrap metal thefts by requiring identification of those presenting scrap metal to the recycler and a three-day delay in payment to those individuals. This bill also allows local government to enact stronger ordinances to prevent scrap metal thefts if local public safety needs warrant greater regulation. AB 1724 (Jones) Request: Sign Result: Vetoed* Permits local government agencies to enact and enforce vehicle impoundment ordinances for nuisance vehicles repeatedly involved with illegal dumping activity. AB 1751 (Fuentes) Request: Sign Result: Vetoed* Permits local government agencies to enact and enforce vehicle impoundment ordinances for nuisance vehicles repeatedly involved with prostitution-related activity. AB 1859 (Adams) Request: Sign Result: Signed – Chapter 659, Statutes of 2008 Creates an additional $3,000 penalty for stolen scrap metal sales or purchase charges that involve fire hydrant and fire department connection parts. AB 2151 (Jones) Request: Sign Result: Vetoed Authorizes the Alcoholic Beverage Control Department to deny the transfer or issuance of a liquor retail license if it would contribute to blight, based on the findings of the local government agency. AB 2151 also authorizes a local redevelopment agency to deny the issuance or transfer of a liquor retail license within the redevelopment agency. AB 2262 (Torrico) Request: Sign Result: Vetoed Expands the “Safe-Surrender" program to allow children seven-days old or younger to be surrendered to a safe-surrender site as designated, which may include fire departments upon approval by the local fire agency or governing body. SB 1519 (Yee) Request: Sign Result: Signed – Chapter 721, Statutes of 2008 Authorizes a local government agency to request the disconnection of telephone service provided to unlicensed taxi cab operations and permits telephone service providers to disconnect or deny the issuance of telephone service if local enforcement efforts have not prevented or stopped the unlawful taxi cab operations. Revenue and Taxation AB 697 (Hancock) Request: Sign Result: Vetoed* Prohibits a city and/or county, including a chartered city or county, on or after Oct. 1, 2008, from entering into any form of agreement that results, directly or indirectly, in the payment, transfer, diversion or rebate of any amount of Bradley-Burns local sales and use tax proceeds to any person for any purpose when both of the following apply: (1) the agreement results in a reduction in the amount of Bradley-Burns tax proceeds received by another local agency from a retailer within the territorial jurisdiction of that other local agency; and (2) the retailer continues to maintain a physical presence within the territorial jurisdiction of that other local agency. 6 AB 1221 (Ma) Request: Sign Result: Vetoed* Expands the toolbox of available options for financing infrastructure associated with transit village development by ensuring that these facilities may be financed through the use of existing Infrastructure Financing District Law. This bill also expands the size of a transit village development district from one-quarter to one-half mile, and requires that at least 20 percent of all tax increments under the plan be used for affordable housing development. AB 1451 (Leno) Request: Sign Result: Signed – Chapter 538, Statutes of 2008 Extends the sunset date with respect to the existing property tax exclusion from reassessment provided to the construction or addition of active solar energy systems from the 2008-09 fiscal year, to the 2015-16 fiscal year. In addition, this bill allows this exclusion to be transferred to the initial occupant of a new building, if the builder installed the solar energy system during the original construction. SB 301 (Romero) Request: Sign Result: Signed – Chapter 375, Statutes of 2008 Extends existing statute that provides additional financial assistance through the Vehicle License Fees (VLF) allocated to cities for future incorporations and annexations by cities of inhabited territory. SB 1064 (Hollingsworth) Request: Sign Result: Signed – Chapter 386, Statutes of 2008 Provides income and property tax relief to individuals, businesses, and local governments that suffered losses as a result of five separate disasters during 2007 and 2008. Transportation/Public Works AB 642 (Wolk) Request: Sign Result: Signed – Chapter 314, Statutes of 2008 Allows cities to use design-build contracting for building construction projects as well as wastewater facilities, solid waste management facilities, or water recycling facilities for more efficient, cost-effective public works projects. AB 983 (Ma) Request: Veto Result: Vetoed Requires cities to provide full, complete, and accurate plans, including cost estimates on all public works projects, which would reduce incentives for contractors to report errors in plans during bidding because additional expenses could be recouped through change-order claims against the public agency. AB 2295 (Arambula) Request: Sign Result: Vetoed Includes local street and road rehabilitation projects on the list of eligible types of projects that may receive State Transportation Improvement Funds. Miscellaneous AB 2537 (Furutani) Request: Sign Result: Signed – Chapter 678, Statutes of 2008 Helps to ensure that city public works projects can be completed with volunteers by continuing provisions that establish volunteers do not have to be paid prevailing wages for their work, as it is being done on voluntary basis. AB 2427 (Eng) Request: Veto Result: Vetoed* Prohibits a city or county from incidentally regulating a local healing arts business that is licensed or certified by the State Department of Consumer Affairs. 7 AB 2610 (Davis) Request: Veto Result: Vetoed* Unnecessarily mandates local governments that want to address unattended collection boxes in their community and must follow a new permit program outlined in the bill. SB 1124 (Local Government Committee) Request: Sign Result: Signed – Chapter 709, Statutes of 2008 Enacts the Local Government Omnibus Act of 2008 and proposes various technical, but important, changes to the law affecting local agencies' powers and duties. Specifically, the uniform code copy requirement is amended, revising the requirement that clerks of local legislative bodies must maintain “a reasonable supply of copies” and instead stipulates that only one copy must be kept on-hand. ____________________________________________________________________________ ‘Annual Conference Wrap Up’ Continued from Page 1… The opening general session, held on Wednesday, Sept. 24, featured keynote speaker Neal Petersen and remarks by League President Jim Madaffer and League Executive Director Chris McKenzie. Madaffer presided over the opening session and discussed the League’s activities over the past year. “When we look back at 2008, I am convinced it will be seen as a year when the League prevented what could have been devastating grabs of local property tax and transportation funds and defeated a draconian, anti-local control ballot measure in Proposition 98,” said Madaffer. “The key to our success will continue to be our strong grassroots involvement of our members and a League staff that keeps us focused and informed. It has been a great year for California’s cities, and we will make sure next year is one as well if we remain united and focused.” McKenzie spoke about the state budget and the League’s legislative efforts including work on housing, climate change and infrastructure. He also focused on the convincing defeat of Proposition 98 and passage of Prop. 99 in June. Prop. 98 was a Trojan horse which purported to offer eminent domain reform but in reality would have had a devastating impact on local land use control, renter protections, water projects, environmental protections and more. Prop. 99 on the other hand, which won by a landslide with 63 percent of the vote, provides real eminent domain reform, protecting single family home owners. McKenzie told the assembled city officials, “The League exists to protect and restore local control, and we have had a record of phenomenal success this year in doing just that. At the same time, we advanced each of our strategic goals in the area of protecting local revenues, supporting city climate change efforts, securing additional infrastructure funding, and advancing hones eminent domain reform.” Neal Petersen, award-winning author of Journey of a Hope Merchant: From Apartheid to the Elite World of Solo Yacht Racing, delivered the keynote address. He captivated audiences with the story of his solo trip around the world in a homemade boat. “No barriers, only solutions is my message…and never take no for an answer. Anything is possible,” noted Petersen. “I’ve always believed that the biggest changes can be made at the local level.” The first general session closed with a video announcing the 2008 winners of the League’s prestigious Helen Putnam Awards, which are given to cities that develop programs that significantly increase the level of service for their communities. The following cities were honored: Bakersfield, Dublin, Fontana, Livermore, Leemore, Long Beach, Morgan Hill, Mountain View, Newport Beach, Palmdale, Perris, Pleasanton, Poway and Santa Clarita. Day Two: Governor Fires Up Crowd Gov. Arnold Schwarzenegger fired up approximately 1,600 city officials on the morning of Thursday, Sept. 25, addressing issues ranging from the state budget to redistricting. The crowd’s 8 enthusiasm during his remarks was testament to their appreciation of his solid commitment to finding a balanced budget solution that did not rely on borrowing local government or transportation revenues. “Sacramento’s definition of borrowing is never paying it back,” the Governor told the audience. The Governor was introduced by League President and San Diego President Pro Tem Jim Madaffer. “California cities have no better advocate in the state capitol than Arnold Schwarzenegger,” said Madaffer. Thursday’s general session featured Richard Florida’s keynote address titled “Who’s Your City.” Florida spoke to the crowd about the way people choose the places they live and how that affects everything from their real estate investment to their families. “Cities are the driving force of the global economy. More than half of the world’s population lives in an urban area. According to our statistics, 40 mega regions account for two-thirds of the world’s output and about nine in 10 of the world’s innovations. What this means is that city officials really are key stewards of the global economy and economic competitiveness,” said Florida. Harriet Miller Honored with League’s Past Presidents’ Lifetime Achievement Award Hal Conklin, a League past president and former mayor of the City of Santa Barbara, and Pat Eklund, mayor of Novato and League past president, presented Harriet Miller, former Santa Barbara mayor, with the League of California Cities Past Presidents’ Lifetime Achievement Award. “Harriet Miller epitomizes a true public servant in the very best sense of the term. That’s why the League’s past presidents selected her for this prestigious award. She consistently demonstrated a great capacity to lead, a genuine concern for people and the ability to make a difference. Harriet’s service advanced the quality of life for Santa Barbara residents and helped the League of California Cities become a more effective advocate for all California cities,” said Conklin. Miller spoke about her long term commitment to community service. “Local government is the most meaningful to me. It’s the level of government closest and most responsive to the people,” remarked Miller. Day Three: Doris Kearns Goodwin Captivates Audience with Lessons of Leadership At the closing general session on Friday, Sept. 27, the League announced the election of new officers forming the 2008-09 executive committee of the board of directors. A full story on the new executive committee is included in today’s issue of Priority Focus. Keynote speaker Doris Kearns Goodwin, Ph.D., addressed the attendees at the close of Friday’s general session. A renowned presidential historian and gifted storyteller, Goodwin’s timely remarks came just before the first presidential debate between Republican Party nominee Sen. John McCain and Democratic Party nominee Sen. Barack Obama. “I am talking about lessons of leadership, drawing from great leaders of history, particularly Abraham Lincoln. Even though he was at a national level, at a time of great crisis, the qualities that he showed – his political skills and his emotional strength – are precisely the qualities that make for good leaders at any level,” commented Goodwin. “These strengths are what we should be using to measure the presidential candidates rather than superficial markers.” 9 League President and San Diego President Pro Tem Jim Madaffer introduces Gov. Arnold Schwarzenegger. Former Santa Barbarba Mayor Harriet Miller is honored with the Past President’s Lifetime Achievement Award. Gov. Arnold Schwarzenegger fired up the crowd on Thursday, Sept. 25. Sacramento Mayor Heather Fargo, elected to serve as the League’s president, assumes the post held for the past year by San Diego City Council President Pro Tem Jim Madaffer. League Executive Director Chris McKenzie and San Diego City Council President Pro Tem Jim Madaffer present Sacramento Mayor Heather Fargo with the crystal gavel. 10 _____________________________________________________________________________ League Board Acts on November 2008 Ballot Initiatives The League’s board of directors has adopted positions on eight of the 12 measures on the November 2008 ballot. The board took positions on seven of the measures when it met last week in conjunction with the annual conference in Long Beach and adopted a position on Proposition 7 earlier this year. The ballot measures cover a variety of topics including redistricting, children’s hospital grants, and public safety. The board’s positions on these ballot measures are below: Proposition 1A – Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century: Issues $9.95 billion of general obligation bonds, $9 billion of which will be made available in conjunction with federal and private funds for the planning and construction of a high- speed train system, and $950 million of which will be available for capitol projects on other passenger rail lines to provide connectivity to the high-speed train system. Position: No position Proposition 3 – Children’s Hospital Projects: Issues $980 million in bonds to be used for grants of approximately $98 million each for qualifying non-profit Children’s Hospitals to expand and renovate to make more room to treat children, and to purchase life-saving medical equipment for the treatment. Position: No position Proposition 5 – Nonviolent Offender Rehabilitation Act of 2008 (NORA): Expands drug treatment diversion programs for nonviolent offenders; modifies parole supervision procedures and expands prison and parole rehabilitation programs; allows for additional early release credits for participation and performance in rehabilitation programs’ changes the penalties for marijuana possession; and makes various changes to the organization of rehabilitation programs in the CA Department of Corrections and Rehabilitation. Position: Oppose Proposition 6 – Safe Neighborhoods Act (or the Safe Neighborhoods Act: Stop Gang, Gun, and Street Crime): Creates and revises numerous state and local criminal justice programs to address criminal street gang activity, firearms and narcotics, child abuse, victim protection, juvenile offender programs, parole and community re-entry, juvenile and county jail facilities, and the electronic monitoring of sex offenders. Position: No position Proposition 7 – Solar and Clean Energy Act of 2008: Requires utilities, including government- owned utilities, to generate 20 percent of their power from renewable energy by 2010, a standard currently applicable only to private electrical corporations. It also raises requirement for utilities to 40 percent by 2020 and 50 percent by 2025. Position: Oppose (The League’s position on this measure was adopted earlier in the year) Proposition 9 – Victims’ Bill of Rights Act of 2008: Marsy’s Law: Expands the legal rights of crime victims and their ability to seek restitution; creates restrictions on the early release of inmates from incarceration; and restructures the granting and revocation of parole. Position: Support Proposition 10 – The California Renewable Energy and Clean Alternative Fuel Act: Issues $5 billion in general obligation bonds to fund renewable energy generation, alternative fuels for transportation, and energy efficiency and conservation programs. Position: No position Proposition 11 – Redistricting. Constitutional Amendment and Statute: Changes the way the U.S. House of Representatives, the state Legislature (Assembly and Senate), and the Board of Equalization district boundaries are determined. Position: Support. * A significant factor in the League taking “no position” on several of the above measures related to concerns over impacts to the state budget. _____________________________________________________________________________ 11 Board Endorses Sedalia Sanders for NLC Second Vice President El Centro City Council Member Sedalia Sanders was endorsed by the League of California Cities board of directors for the National League of Cities (NLC) second vice president position. The board took this action at its meeting on Friday, Sept. 26, in Long Beach. Last year, the League endorsed another candidate from California, Riverside Mayor Ron Loveridge. If elected to this position in November at the NLC Congress of Cities Conference in Orlando, Fla., Sanders will assume a position on the NLC board of directors as well as the NLC executive committee. She would likely serve as president of NLC from November 2010 to November 2011. Loveridge is currently NLC second vice president and will likely become NLC president in November 2009. Sanders, who served as president of the League of California Cities 1995–1996, was first elected to the El Centro City Council in 1985. She has been selected by her peers to serve as mayor four terms during her tenure. She served the city council 1985–1999 and then again from 2003 to present. During her city council hiatus, Sanders was elected to the El Centro Elementary School Board Trustees, serving a two year term which included one year as president. Active in the Imperial Valley region, Sanders has been chair of the Imperial Valley Association of Governments and has served as vice chair of the Southern California Association of Governments’ Hazardous Waste Management Committee. In addition, she was part of a regional body that designed and implemented a plan to distribute $20 million from the largest rural to urban water swap in California history. Sanders’ state service includes appointments to the Rural Development Council and the Agricultural District Association that represented Imperial County at the state level. League Service: Sanders led the League as president from 1995–1996, during a difficult economic downturn in California when the state seized local government property taxes to help balance the state budget. Her board of directors’ tenure encompasses two periods: 1993–1999 and 2003–today. Sanders first became active in the League locally, serving as president of the Imperial Valley Division. She also served as president of the League’s Mayors and Council Members’ Department. An important contribution Sanders has made to the League was helping develop the organization’s African American and Latino Caucuses. The establishment of the caucuses was the League’s first recognition of these constituency groups. Sanders also helped strengthen the League’s legislative position by establishing strategic partnerships. NLC Service Sanders has extensive NLC service: Advisory Council (2005-current); board member (1996– 1998); member, Race Relations Task Force, and Resolutions Committee; Advocacy Ambassador (1997–1998); and member of the Strategic Plan Committee (1997–1998). She is also a member of Women in Municipal Government (WIMG) and the National Black Caucus of Local Elected Official (NBC-LEO). In 1998, Sanders served as a panelist for NBC-LEO’s summer regional conference and board of directors meeting. _____________________________________________________________________________ New Board Officers Named The League of California Cities announced the election of new officers at the closing general session of last week’s annual conference. The newly elected officers form the 2008-2009 executive committee of its board of directors. Sacramento Mayor Heather Fargo was elected to serve as the League’s president, assuming the post held for the past year by San Diego City Council President Pro Tem Jim Madaffer. Rolling Hills Estates Council Member Judy Mitchell was elected as first vice president, and Rancho 12 Cordova Council Member Ken Cooley was elected and will join the League’s executive committee as second vice president. The League’s bylaws call for officers to serve one-year terms. Under the League’s bylaws, Madaffer now becomes immediate past president of the League and remains a member of the League’s executive committee. Fargo moves up to her current position after serving the past year as first vice president. Mitchell has served the past year as second vice president. Heather Fargo was elected to the Sacramento City Council in 1989. In 2000, she was elected mayor and assumed the position in 2001. Mayor Fargo has been a member of the League’s board of directors since 2003 and joined the executive committee in 2006. ____________________________________________________________________________ Transit Oriented Development and Infill Incentive Grant Program Meetings Scheduled The California Department of Housing and Community Development (HCD) has announced a series of stakeholder meetings for Proposition 1C transit oriented development and infill incentive grant program funds. The meetings are scheduled during October and will be held in Los Angeles, San Diego and Sacramento. Additional information about the meetings can be found on HCD’s Web site at www.hcd.ca.gov. (www.hcd.ca.gov/fa/Bond_Program_Workshops.pdf) Meeting Schedule The meetings are scheduled from 9 a.m.–4 p.m. with an hour break at noon for lunch. The morning session will address infrastructure funding (water, sewer, traffic, site cleanup, etc.). The afternoon session will focus on funding for housing and related infrastructure near transit stations. Oct. 9: Los Angeles Junipero Serra Building 320 West 4th Street, Carmel Room Oct. 15: San Diego Civic Center Concourse Building 202 C Street, Silver Room Oct. 17: Sacramento 400 R Street, River Room _____________________________________________________________________________ Water Control Board Revises Fee Schedule The State Water Resources Control Board (Water Board) released emergency regulations on Wednesday, Sept. 24 to revise its core water quality regulatory fee schedule. Existing law allows for an annual increase of fees by the Water Board to conform to the revenue levels set by the State Budget Act. While this action usually takes place mid-summer, the state budget stalemate caused it to be delayed. The fee changes under the proposed emergency regulations provide the potential for some fees to go down and other fees to rise dramatically, depending on the type of discharger. According to the Water Board, the rationale for the increase in fees is the financial condition of the Water Board’s Waste Discharge Permit Fund, which currently has projected $17.2 million deficit for FY 2008-09. The fees propose to raise $18.4 million for FY 2008-09 to eliminate the projected deficit for the future and keep the fund solvent. The League circulated the emergency regulations for comment late last week in order to submit comments to the Water Board by its Sept. 30 deadline. The League’s letter has been posted on its Web site (http://www.cacities.org/resource_files/27224.SWRCB Fee Increase Letter 30Sept08.pdf.) 13 The Water Board will be deciding on the emergency regulations on Tuesday, Oct. 7 at its monthly board meeting in Sacramento. The upcoming meeting agenda and information about video broadcasting is available on the Water Board’s Web site (www.swrcb.ca.gov/board_info?agendas/2008/oct/100708mtg.shmtl.) If you have any questions about the League’s position on the fee increase, please contact Kyra Ross, legislative representative at (916) 658-8252. _____________________________________________________________________________ Menifee Becomes California’s 480th City On Oct. 1, Menifee officially became California’s 480th city. Voters in Riverside County approved cityhood for Menifee on June 3, with 61 percent of the 8,507 votes cast in favor of incorporating the 48-square-mile areas of Menifee, Sun City, Quail Valley and parts of Romoland. The new municipality is home to about 60,000 residents. Voters approved the name of Menifee over Menifee Valley and also chose to elect council representatives by districts rather than at-large. ____________________________________________________________________________ Find a Bill, Legislators, Leg Committee, or Ask League Leg Staff Visit (and bookmark!) the League’s Legislative Resources Web page (www.cacities.org/legresources). You’ll find a roster and contact information for the League’s legislative staff; the online Bill Search program, background materials on lobbying your legislators, and more. _____________________________________________________________________________