HomeMy WebLinkAboutConsider Positions on Legislation Pending Before the State a AOPCOVEI) C- D - /
( PET�oN- /b3S--IVT)
City of Huntington Beach
File #: 21-368 MEETING DATE: 5/3/2021
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Travis K. Hopkins, Assistant City Manager
Subject:
Consider positions on legislation pending before the State and Federal Legislature, as recommended
by the Intergovernmental Relations Committee (IRC)
Statement of Issue:
On April 21, 2021, the Intergovernmental Relations Committee (IRC), comprised of Mayor Kim Carr and
Council Member Mike Posey (with Mayor Pro Tern Tito Ortiz absent), discussed current State and Federal
issues with relevance to Huntington Beach. Following discussion, the IRC chose to take positions on certain
proposed legislation, which are presented to the City Council for consideration.
Financial Impact:
Not applicable
Recommended Action:
Approve one or more City positions on State legislation related specifically to housing issues.
A Oppose AB 115 (Bloom)
B Oppose AB 1401 (Friedman), unless amended
C Oppose SB 6 (Caballero)
D Oppose SB 9 (Atkins)
E Oppose SB 10 (Weiner)
F Support SB 15 (Portantino)
G Oppose SB 478 (Weiner)
H Oppose AB 602 (Grayson)
Approve one or more City positions on other State legislation
A. Support SB 612 (Portantino)
B Support SB 555 (McGuire)
C Oppose SB 556 (Dodd)
Approve a City position on Federal legislation
A Watch H.R. 5845 (Lowenthal)
Alternative Action(s):
Do not approve one or more recommended legislative positions and direct staff accordingly
Analysis:
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The IRC is recommending positions on State and Federal legislation, which are being presented to the City
Council for approval:
State Housing Legislation:
A. OPPOSE AB 115 (Bloom): Planning and zoning: commercial zoning: housing development
AB 115 would requirejurisdictions to allow for residential development in commercially zoned areas that are not
adjacent to industrial use. 'These developments must set aside at least 20% of its units for affordable housing and
must meet additional conditions including height, floor area ratio and density requirements. While affordable
housing is a priority, this hill would lintit the C'ity's oversight, particularly over cononercially coned areas that
mqv not be appropriate for a residential development.
B. OPPOSE UNLESS AMENDED AB 1401 (Friedman): Residential and commercial development:
parking requirements.
This bill would prohibit local governments from enforcing their parking requirements on residential and
commercial developments that are within '/z mile of public transit or low vehicle miles traveled areas.
The bill would not preclude a local government from imposing requirements when a project provides
parking voluntarily to require spaces for car share vehicles. The IRC believes that parking
requirements should remain a local issue and maintains an oppose position to AB 1401, unless it was
amended to exclude commercial developments, which are not as highly impacted by parking
requirements as residential developments.
C. OPPOSE SB 6 (Caballero): Local planning: housing: commercial zones
.['his bill would deem a housing development project as an allowable use on a neighborhood lot, which is defined
as a parcel within an office or retail commercial zone that is not adjacent to an industrial use The bill would
require the density for a housing development to meet or exceed the density deemed appropriate to accommodate
housing for lower income households according to the type of local jurisdiction. The hill's requirernetus will
likely conflict with the C'itv's current zoning requirements.
D. OPPOSE SB 9 (Atkins): dousing development: approvals.
This bill would require a proposed housing development containing no more than 2 residential units within it
single-family residential zone to be considered ministerially, if the proposed housing development meets certain
requirements. Combined with current accessory dwelling unit laxt SB9 will allow even more units to he built on
the same parcel without public review, which moll,present a concern.
E. OPPOSE SB 10 (Weiner): Planning and zoning: housing development: density.
Authorizes a local government to adopt an ordinance to zone any parcel for up to 10 units of residential density
per parcel, at it height specified in the ordinance, if the parcel is located in a transit-rich area, ajobs-rich area. or
an urban infill site. These developments would not be subject to CEQA, which presents a loss of oversiglt from
both the public and local government.
F. SUPPORT SB 15 (Portantino): Housing development: incentives: rezoning of idle retail sites.
This bill would require the Department of Housing and Community Development to administer a program to
provide local governments with grants to rezone idle sites used for a big box retailer or a commercial shopping
center to instead allow the development of housing, as defined. As the retail model evolves and large commercial
spaces are not required, this bill gives local governments the funds needed to rezone areas that nury be better
suited for a housing development.
G. OPPOSE SB 478 (Weiner): Planning and "Zoning Law: housing development projects.
This bill would prohibit a local agency from imposing a floor-to-area ratio standard that is less than 1.0 on it
housing development project that consists of 3 to 7 units, or less than 1.25 on a housing development project that
consists of fS to 10 units. The bill would prohibit a local agency front imposing a lot coverage requirement that
would preclude a housing development project from achieving the floor-to-area ratios described above. 77ie IRC
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could nol issue a support position due to the lack of additional, key details including density requirements.
H. OPPOSE AB 602 (Grayson): Development fees: impact fee nexus study.
This bill would require the State to create an impact fee nexus study template that may be used by
local jurisdictions. The bill would require that the template include a method of calculating the feasibility
of housing being built with a given fee level. Bill would require local governments to include additional
information and new requirements into their impact fee studies and requires that an impact fee nexus
study be adopted prior to the adoption of an associated development fee or exaction. The IRC opines
that impact fees should only be set and disbursed by the local jurisdiction that will be impacted by the
development assessed the fee.
Other State Legislation:
A) SUPPORT SB 612 (Portantino): Electrical corporations: allocation of legacy resources
Would require an electrical corporation, by July I, 2022, and not less than once every 3 years thereafter, to offer
an allocation of each product, as defined, arising from legacy resources. as defined, to its bundled customers and
to other load-serving entities, defined to include electric service providers and community choice aggregators
(CCA), serving departing load customers, as defined, who bear cost responsibility for those resources. The bill
would authorize a load-serving entity within the service territory of the electrical corporation to elect to receive
all or a portion of the vintaged proportional share of products allocated to its end-use customers and, if so. require
it to pay to the electrical corporation the commission-established market price benchmark for the vintage
proportional share of products received. This bill will help ensure that the Citv's fhutrre ('C'A customers receive
the.came benefits as legacy customers who choose to remain with Southern California Edison.
B) SUPPORT SB 555 (McGuire): Local agencies: transient occupancy taxes: short-term rental facilitator:
collection.
Would authorize a local agency to enact an ordinance exclusively delegating its authority to collect any transient
occupancy tax imposed by that local agency on short-term rentals to the California Department of Tax and Pee
Administration and to enter into a contract with the department for purposes of registration. rate posting.
collection, and transmission of revenues necessary to collect and administer any transient occupancy tax imposed
on a short-term rental as specified in this bill. This hill would .standardize and streamline the pervnhent and
collection of laves for all parties, including.short-term rental owners and the City, respeclively.
C) OPPOSE SB 556 (Dodd): Street light poles, traffic signal poles: small wireless facilities attachments.
Would prohibit a local government or local publicly-owned electric utility from unreasonably denying the leasing
or licensing of its street light poles or traffic signal poles to communications service providers for the purpose of
placing small wireless facilities on those poles. The bill would require that street light poles and traffic signal
poles be made available for the placement of small wireless facilities under fair, reasonable, and
nondiscriminatory fees, subject to specified requirements, consistent with a specified decision of the Federal
Communications Commission. This hill would limit the C'itv'.s' control over its own infrastructure, as well cis its
ability to set the appropriate fees needed to recover costs associated with the placement of these wireless
facilities.
Federal Legislation:
1. WATCH HR 5845: Break Free from Plastic Pollution Act.
The bill makes certain producers of products (e.g., packaging, paper, single-use products, beverage
containers, or food service products) fiscally responsible for collecting, managing, and recycling or
composting the products after consumer use. In addition, the bill establishes (1) minimum percentages
of products that must be reused, recycled, or composted; and (2) an increasing percentage of recycled
content that must be contained in beverage containers. Beginning on January 1, 2022, the bill phases
out a variety of single-use products, such as plastic utensils. The bill also sets forth provisions to
encourage the reduction of single-use products, including by establishing programs to refund
consumers for returning beverage containers and by establishing a tax on carryout bags. The bill
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creates a temporary moratorium on new or expanded permits for facilities that manufacture plastics
until regulations are updated to address pollution from the facilities. Finally, the bill establishes
limitations on the export of plastic waste to other countries.
Environmental Status:
Not applicable .
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Summary of Housing Bills
2. Oppose AB 115 (Bloom)
3. Oppose AB 1401 (Friedman), unless amended
4. Oppose SB 6 (Caballero)
5. Oppose SB 9 (Atkins)
6. Oppose SB 10 (Weiner)
7. Support SB 15 (Portantino)
8. Oppose SB 478 (Weiner)
9. Oppose AB 602 (Grayson)
10. Support SB 612 (Portantino)
11. Support SB 555 (McGuire)
12. Oppose SB 556 (Dodd)
13. Watch HR 5845 (Lowenthal)
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Huntington Beach Housing Legislation Matrix
April 21, 2021
Bill Summary City of Huntington Beach Sample of Support and
Staff Feedback Opposition
Planning and Zonin
AB 115 Requires all jurisdictions to allow for residential development in Staff recommendation:Watch, Support: Southern California
(Bloom) commercially zoned areas, that are not adjacent to industrial as more details are issued. Association of Nonprofit
use, provided that the development reserves 20%of the units Housing, East Bay for
for affordable housing. IRC recommendation: Oppose Everyone,Facebook, Housing
The housing development must meet certain height California
requirements, floor area ratio requirements,and density
requirements, unless the zoning standards of the city are less Oppose: City of Torrance, State
restrictive. Building Trades AFL-CIO
AB 1401 Prohibits the enforcement of parking requirements on Staff recommendation:Oppose Support: CA YIMBY, Bay Area
(Friedman) residential and commercial developments,within 14 mile of Council, CBIA, Chan
public transit or in low vehicle miles traveled areas IRC Recommendation: Oppose Zuckerberg Initiative, People for
unless amended to limit the bill Housing—Orange County,
to residential developments Silicon Valley Leadership Group
only. Commercial should be
excluded. Oppose:LOCC, California
Cities for Local Control
SB 6 Would require cities to allow residential development on Support:Abundant Housing LA,
(Caballero) commercially zoned property where office and retail uses are Staff recommendation:Oppose CA Association of Realtors, Los
permitted,so long as the parcel is not adjacent to industrial use. Angeles Business Council,
• A housing development project must comply with density IRC recommendation:Oppose Terner Center
requirements, local zoning, parking,design requirements, and
include an unspecified percentage of affordable housing units Opposition: CA Coalition for
• Developers must certify that the project is a public work or will Rural Housing,CA Housing
pay prevailing wage Partnership, Southern CA
• A local agency may exempt a lot zoned for commercial retail or Association of Nonprofit
office use from the bill if the local agency reallocates the lost Housing
residential density to other lots,so there is no net loss in
residential density
SB 9 Would allow for duplexes and lot splits in single family Support:CA Apartment
(Atkins) residential zones, by right, if the proposed development meets Staff recommendation:Oppose Association, CA Association of
certain requirements. Realtors, CA BIA, CA Chamber
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Huntington Beach Housing Legislation Matrix
April 21, 2021
In order to qualify for ministerial approval, the two new parcels IRC recommendation:Oppose of Commerce,CA YIMBY, LA
that replace the existing single parcel,must be of equal size. Chamber of Commerce
Combined with ADU law, this law will allow even more units to
be build on the same parcel without public review Opposition:Dozens of individual
Authorizes a local agency to require parking of one unit per cities, Livable California,
space,but prohibits a parking requirement if the project is within Homeowners Associations,
mile of high quality transit Neighborhood Associations,
League of California Cities,
Livable California,California
Cities for Local Control,
California Contract Cities
Association
SB 10 Create a streamlining tool for cities to rezone in certain areas Staff recommendation:Watch Support: California YIMBY, Bay
(Weiner) close to job centers,transit,and existing urbanized areas, to as more details are provided. Area Council,CalChamber,CA
allow up to ten residential units without undergoing CEOA Association of Realtors,CA BIA
Bill would allow cities to adopt a local ordinance to zone a IRC recommendation:Oppose
parcel up to 10 units of residential—not a state mandate Opposition: Several cities,
homeowners associations,
neighborhood associations, Stat
building and construction trades
SB 15 Requires HCD to administer a program to provide grants to Support: BizFed, Los Angeles
(Portantino) local governments that rezone idle sites used for a big box IRC recommendation: Support LOCC,ACCOC,AFL-CIO,
commercial shopping center to instead allow the development California Council of Laborers
of low and moderate income housing,as defined.
Opposition:plumbing-Heating-
Cooling Contractors of
California
SB 478 Sets minimum standards on floor area ratios(FAR) and Staff recommendation:Oppose SUPc0n:CA YIMBY, Bay Area
(Wiener) minimum lot sizes, for land zoned for"missing middle housing" Council,California Apartment
defined as duplexes to ten unit buildings. IRC recommendation: Oppose Association, CA BIA,Chan
Zuckerberg Initiative, Habitat for
Humanity
Oppose.AFL-CIO, CSAC,
several Homeowners
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Associations and Residential
Associations,Construction
Trades Council of CA, Urban
Counties of CA
AB 602 This bill would require the State to create an impact fee nexus IRC recommendation:Oppose Support:CA YIMBY, Habitat for
(Grayson) study template that may be used by local jurisdictions.The bill Humanity, East Bay Leadership
would require that the template include a method of calculating Council, Terner Center
the feasibility of housing being built with a given fee level.
• Bill would require local governments to include additional Oppose:CASA,CSOA,LOCC,
information and new requirements into their impact fee studies Urban Counties of CA
• Requires that an impact fee nexus study be adopted prior to the
adoption of an associated development fee or exaction.
• Requires that fees levied or imposed on a housing development
project by a local agency be proportionate to the square footage
of the proposed unit or units.
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AMENDED IN ASSEMBLY APRIL 20, 2021
CALIFORNIA I.6GISLATURE-2021-22 REGULAR SESSION
ASSEMBLY BILL No. 115
Introduced by Assembly Member Bloom
December 18, 2020
An act to add and repeal Section 65583.7 of the Government Code,
relating to land use.
LEGISLATIVE:COUNSEL'S DIGEST
AB 115, as amended, Bloom. Planning and zoning: connnercial
zoning: housing development.
Existing law, the Planning and Zoning Law, requires that the
legislative body of each county and each city adopt a comprehensive,
long-tern general plan for the physical development of the county and
city, and specified land outside its boundaries, that includes, among
other mandatory elements, a housing clement. Existing law authorizes
the legislative body of any county or city, pursuant to specified
procedures, to adopt ordinances that, among other things, regulate the
use of buildings, structures, and land as between industry, business,
residences, open space, and other purposes.
This bill, notwithstanding any inconsistent provision of a city's or
county's general plan, specific plan, zoning ordinance, or regulation,
would require that a housing development be an authorized use on a
site designated in any local agency's zoning code or maps for
commercial uses if certain conditions apply. Among these conditions,
the bill would require that the housing development be subject to a
recorded deed restriction requiring that at least 20% of the units have
an an"ordable housing cost or affordable rent for lower income
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AB 115 —2—
households,as those terns are defined,and located on a site that satisfies
specified criteria.
The bill would require the city or county to apply certain height,
density, and floor area ratio standards to a housing development that
meets these criteria. The bill would deem a housing development
consistent, compliant, and in conformity with local development
standards, zoning codes or maps, and general plan if it meets the
requirements of the bill.The bill would require ajurisdiction to comply
with these requirements only until it has completed the rezoning,
required as described above, for the 6th revision of its housing clement.
The bill would repeal these provisions as of January I, 2031. The bill
would also state the intent of the Legislature to develop and implement
high-rood labor policies to use a skillet/ construction wor-kfance for
projects utilising the provisions oj'the act.
The bill would include findings that changes proposed by this bill
address a matter of statewide concern rather than a municipal al7air
and, therefore, apply to all cities. including charter cities.
By adding to the duties of local planning officials, the bill would
impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act
for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
I SEC770N 1. It is the intent oj'the Legislature to develop and
2 implement high-road labor policies to use a skilled construction
3 workforce for projects utilizing the provisions of this act.
4 i.
5 SEC. 2. Section 65583.7 is added to the Goverment Code, to
6 read:
7 65583.7. (a) Notwithstanding any inconsistent provision of a
8 city's or county's general plan, specific plan, zoning ordinance,
9 or regulation,and subject to subdivision(c),a housing development
10 shall be an authorized use on a site designated in any local agency's
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1 zoning code or maps for commercial uses if all of the following
2 apply:
3 (1) The housing development is subject to a recorded deed
4 restriction requiring that at least 20 percent of the units have an
5 affordable housing cost or affordable rent for lower income
6 households.
7 (2) The site of the housing development satisfies both of the
8 following:
9 (A) The site of the housing development is not adjacent to any
10 site that is an industrial use.
I 1 (B) At least 75 percent of the perimeter of the site adjoins parcels
12 that are developed with urban uses. For purposes of this
13 subparagraph, parcels that are only separated by a street or highway
14 shall be considered to be adjoined.
15 (b) (I) A city or county shall apply the following development
16 standards to a housing development that meets the criteria in
17 subdivision (a), unless existing applicable -zoning standards of the
18 city or county are less restrictive:
19 (A) The height limit applicable to the housing development
20 shall be the greatest of the following:
21 (i) The highest allowed height for the site of the housing
22 development.
23 (ii) The highest allowed height for a commercial or residential
24 use within one-half mile of the site of the housing development.
25 (iii) Thirty-six feet.
26 (B) The maximum allowable floor area ratio of the housing
27 development shall be not less than 0.6 times the number of stories
28 that complies with the height limit under clause (i) of subdivision
29 (A).
30 (C) The density limit applicable to the housing development
31 shall be the greater of the following:
32 (i) The greatest allowed density for a mixed use or residential
33 use within one-half mile of the site of the housing development.
34 (ii) The applicable density deemed appropriate to accommodate
35 housing for lower income households identified in subparagraph
36 (B) of paragraph (3) of subdivision (c) of Section 655832.
37 (2) In addition, the housing development shall comply with any
38 applicable design standards of the city or county to the extent that
39 those design standards do not prohibit the maximum height limit,
40 density, or floor area ratio allowed under this section.
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1 (3) Notwithstanding any other provision of this section, a
2 developer of a housing development allowed in accordance with
3 this section may apply for a density bonus pursuant to Section
4 65915.
5 (4) A housing development shall be deemed consistent,
6 compliant, and in conformity with local development standards,
7 zoning codes or maps, and the general plan if it meets the
8 requirements of this section.
9 (c) For purposes of this section:
10 (1) "Affordable housing cost'has the same meaning as defined
11 in Section 50052.5 of the Health and Safety Code.
12 (2) "Affordable rent'has the same meaning as defined in Section
13 50053 of the I lealth and Safety Code.
14 (3) "Greatest allowed density" means the maximum allowable
15 gross residential density, including any density that requires
16 conditional approval, allowable under local zoning, including the
17 zoning ordinances and any specific plan adopted by the applicable
18 city or county that apply to the site of the housing development.
19 (4) "Highest allowable height' means the tallest height,
20 including any height that requires conditional approval, allowable
21 under local zoning, including the zoning ordinances and any
22 specific plan adopted by the applicable city or county that apply
23 to the site of the housing development.
24 (5) "Industrial use" includes, but is not limited to, utilities.
25 manufacturing,wholesale trade, transportation, and warehousing.
26 (6) "Lower income households" has the same meaning as
27 defined in Section 50079.5 of the Health and Safety Code.
28 (d) A jurisdiction shall only be subject to this section until it
29 has completed the rezoning required by Section 65583 for the 6th
30 revision of its housing clement pursuant to this article.
31 (c) The Legislature finds and declares that ensuring the adequate
32 production of affordable housing is a matter of statewide concern
33 and is not a municipal affair as that term is used in Section 5 of
34 Article XI of the California Constitution. Therefore, this section
35 applies to all cities, including charter cities.
36 (1) This section shall remain in effect only until January 1, 2031,
37 and as of that date is repealed.
38 SEG. 2.
39 U-iC. 3. No reimbursement is required by this act pursuant to
40 Section 6 of Article XIII B of the California Constitution because
9s
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1 a local agency or school district has the authority to levy service
2 charges, fees, or assessments sufficient to pay for the program or
3 level of service mandated by this act, within the meaning of Section
4 17556 of the Government Code.
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AMENDED IN ASSEMBLY APRIL 19, 2021
AMENDED IN ASSEMBLY APRIL 5, 2021
CALIFORNIA LEGISLATURE-2021-22 REGULAR SESSION
ASSEMBLY BILL No. 1401
Introduced by Assembly Member Friedman
(Coauthor: Assembly Member Lee)
(Coauthors: Senators Skinner and Wiener)
February 19, 2021
An act to add Section 65863.3 to the Government Code, relating to
land use.
LEGISLATIVE COUNSEL'S DIGEST
AB 1401, as amended, Friedman. Residential and commercial
development: parking requirements.
The Planning and Zoning Law requires each county and city to adopt
a comprehensive, long-term general plan for its physical development,
and the development of certain lands outside its boundaries, that
includes, among other mandatory elements, a land use element and a
conservation element. Existing law also permits variances to be granted
from the parking requirements of zoning ordinance for nonresidential
development if the variance will be an incentive to the development
and the variance will facilitate access to the development by patrons of
public transit facilities.
This bill would prohibit a local government from imposing a minimum
automobile parking requirement, or enforcing a minimum automobile
parking requirement,on residential, commercial, or other development
if the development is located on a parcel that is within one-half mile
walking distance of public transit, as defined. The bill would not
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AB 1401 —2—
preclude a local government from imposing requirements when a project
provides parking voluntarily to require spaces for car share vehicles.
The bill would prohibit these provisions j'om rechicing, eliminating, or
precluding the enforcement of any requirement imposed on a new
multifamily or nonresidential development to provide electric vehicle
parking spaces' or parking spaces that are accessible to persons with
disabilities, as s7)ecifiecl.
By changing the duties of local planning officials, this bill would
impose a state-mandated local program.
The bill would include findings that changes proposed by this bill
address a matter of statewide concern rather than a municipal affair
and, therefore, apply to all cities, including charter cities.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act
for a specified reason.
Vote: majority. Appropriation: no. fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California clo enact as follows:
1 SECTION 1. Section 65863.3 is added to the Government
2 Code, to read:
3 65863.3. (a) A local government shall not impose a minimum
4 automobile parking requirement,or enforce a minimum automobile
5 parking requirement, on residential, commercial, or other
6 development if the parcel is located within one-half mile walking
7 distance of public transit.
8 (b) When a project provides parking voluntarily, nothing in this
9 section shall preclude a local government from imposing
10 requirements on that voluntary parking to require spaces for car
I I share vehicles.
12 (c) Subdivision (a) shall not reduce, eliminate, at-prechale the
13 enforcement of an?v requirement imposed on a new multifamily
14 residential or nonresidential development to provide electric
15 vehicle parking spaces or parking spaces that are accessible to
16 persons with disabilities that would have otherlvis'e applied to the
17 development if this section did not apply.
18 (ej
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1 (d) For purposes of this section, "public transit" means either
2 of the following:
3 (1) A high-quality transit corridor as defined in subdivision (b)
4 of Section 21 155 of the Public Resources Code.
5 (2) A major transit stop as defined in Section 21064.3 of the
6 Public Resources Code.
7 (4)
8 (e) The Legislature finds and declares that this section addresses
9 a matter of statewide concern rather than a municipal affair as that
10 term is used in Section 5 of Article XI of the California
I l Constitution.Therefore,this section applies to all cities, including
12 charter cities.
13 SEC. 2. No reimbursement is required by this act pursuant to
14 Section 6 of Article XII I B of the California Constitution because
15 a local agency or school district has the authority to levy service
16 charges, fees, or assessments sufficient to pay for the program or
17 level of service mandated by this act,within the meaning of Section
18 17556 of the Government Code.
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AMENDED IN SENATE APRIL 12, 2021
AMENDED IN SENATE MARCH 8, 2021
SENATE BILL No. 6
Introduced by Senators Caballero, Eggman, and Rubio
(Principal coauthors: Senators Atkins,Durazo,Gonzalez, Hertzberg,
and Wiener)
(Coauthors: Senators Cortese, Hueso,-*nd Roth, and McGuire)
(Coauthors: Assembly Members Arambula, Carrillo, Cooper, Gipson.
Quirk-Silva, and Robert Rivas)
December 7, 2020
An act to amend Section 65913.4 of, and to add and repeal Section
65852.23 of, the Government Code, relating to land use.
LEGISLATIVE COUNSEL'S DIGEST
S13 6, as amended, Caballero. Local planning: housing: commercial
zones.
The Planning and Zoning Law requires each county and city to adopt
a comprehensive, long-term general plan for its physical development,
and the development of certain lands outside its boundaries, that
includes, among other mandatory elements,a housing clement. Existing
law requires that the housing clement include, among other things, an
inventory of land suitable and available for residential development. If
the inventory of sites does not identify adequate sites to accommodate
the need for groups of all households pursuant to specified law,existing
law requires the local government to rezone sites within specified time
periods and that this rezoning accommodate 100% of the need for
housing for very low and low-income households on sites that will be
zoned to permit Owner-occupied and rental multifamily residential use
by right for specified developments.
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This bill, the Neighborhood Homes Act, would deem a housing
development project, as defined, an allowable use on a neighborhood
lot, which is defined as a parcel within an office or retail commercial
zone that is not adjacent to an industrial use. The bill would require the
density for a housing development under these provisions to meet or
exceed the density deenud appropriate to accommodate housing for
lower income households according to the type of local jurisdiction,
including a density of at least 20 units per acre for a suburban
jurisdiction. The bill would require the housing development to meet
all other local requirements for a neighborhood lot, other than those
that prohibit residential use, or allow residential use at a lower density
than that required by the bill. The bill would provide that it housing
development under these provisions is subject to the local zoning,
parking, design, and other ordinances, local code requirements, and
procedures applicable to the processing and permitting of a housing
development in a zone that allows for the housing with the density
required by the act. If more than one zoning designation of the local
agency allows for housing with the density required by the act, the bill
would require that the zoning standards that apply to the closest parcel
that allows residential use at a density that meets the requirements of
the act would apply. l f the existing-zoning designation allows residential
use at a density greater than that required by the act, the bill would
require that the existing zoning designation for the parcel would apply.
The bill would also require that a housing development tinder these
provisions comply with public notice, comment, hearing, or other
procedures applicable to a housing development in a zone with the
applicable density. The bill would require that the housing development
is subject to a recorded deed restriction with an unspecified affordability
requirement, as provided.The bill would require that a developer either
certify that the development is a public work, as defined, or is not in
its entirety a public work, but that all construction workers will be paid
prevailing wages, as provided, or certify that a skilled and trained
workforce, as defined, will be used to perform all construction work
on the development,as provided. The bill would require a local agency
to require that a rental of any unit created pursuant to the bill's
provisions be for a term longer than 30 days. The bill would authorize
a local agency to exempt a neighborhood lot from these provisions in
its land use clement of the general plan if the local agency concurrently
reallocates the lost residential density to other lots so that there is no
net loss in residential density in the jurisdiction, as provided. The bill
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would specify that it does not alter or affect the application of any
housing, environmental, or labor law applicable to a housing
development authorized by these provisions, including, but not limited
to, the California Coastal Act, the California Environmental Quality
Act,the Housing Accountability Act,obligations to afTimtatively further
fair housing,and any state or local affordability laws or tenant protection
laws. The bill would require an applicant of a housing development
under these provisions to provide notice of a pending application to
each commercial tenant of the neighborhood lot. The bill would repeal
these provisions on January I, 2029.
The bill would include findings that changes proposed by the
Neighborhood Homes Act address a matter of statewide concern rather
than a municipal affair and, therefore, apply to all cities, including
charter cities.
The housing Accountability Act, which is part of the Planning and
Zoning Law, prohibits a local agency from disapproving,or conditioning
approval in a manner that renders infeasible, a housing development
project, as defined for purposes of the act, for very low, low-, or
moderate-income households or an emergency shelter unless the local
agency makes specified written findings based on a preponderance of
the evidence in the record. That act states that it shall not be construed
to prohibit a local agency from requiring a housing development project
to comply with objective, quantifiable, written development standards,
conditions, and policies appropriate to, and consistent with, meeting
thejurisdiction's share of the regional housing need,except as provided.
That act further provides that a housing development project or
emergency shelter shall be deemed consistent, compliant, and in
conformity with an applicable plan, program, policy, ordinance,
standard, requirement, or other similar provision if there is substantial
evidence that would allow a reasonable person to conclude that the
housing development project or emergency shelter is consistent,
compliant, or in conformity.
The bill would provide that for purposes of the Housing
Accountability Act, a proposed housing development project is
consistent, compliant, and in conformity with an applicable plan,
program, policy, ordinance, standard, requirement, or other similar
provision if the housing development project is consistent with the
standards applied to the parcel pursuant to specified provisions of the
Neighborhood Homes Act and if none of the square footage in the
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project is designated for hotel, motel, bed and breakfast inn, or other
transient lodging use, except for a residential hotel, as defined.
The Planning and Zoning Law, until January I, 2026, also authorizes
a development proponent to submit an application for a multifamily
housing development that is subject to a streamlined, ministerial
approval process, as provided, and not subject to a conditional use
permit, if the development satisfies specified objective planning
standards, including a requirement that the site on which the
development is proposed is zoned for residential use or residential
mixed-use development, or has a general plan designation that allows
residential use or a mix of residential and nonresidential uses, with at
least %, of the square footage of the development designated for
residential use. Under that law, the proposed development is also
required to be consistent with objective zoning standards, objective
subdivision standards, and objective design review standards in effect
at the time the development is submitted to the local government.
This bill would permit the development to be proposed for a site
zoned for office or retail commercial use if the site has had no
commercial tenants on 50%or more of its total usable net interior square
footage for a period of at least 3 years prior to the submission of the
application. The bill would also provide that a project located on a
neighborhood lot,as defined,shall be deemed consistent with objective
zoning standards, objective design standards,and objective subdivision
standards if the project is consistent with the applicable provisions of
the Neighborhood Homes Act.
By expanding the crime of perjury and imposing new duties on local
agencies with regard to local planning and zoning,this bill would impose
a state-mandated local program.
The Califomia Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act
for specified reasons.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
I SECTION 1. Section 65852.23 is added to the Government
2 Code, to read:
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1 65852.23. (a) (1) This section shall be known, and may be
2 cited, as the Neighborhood Homes Act.
3 (2) The Legislature finds and declares that creating more
4 aflordablc housing is critical to the achievement of regional
5 housing needs assessment goals,and that housing units developed
6 at higher densities may generate affordability by design for
7 California residents, without the necessity of public subsidies,
8 income eligibility, occupancy restrictions, lottery procedures, or
9 other legal requirements applicable to deed restricted affordable
10 housing to serve very low and low-income residents and special
I 1 needs residents.
12 (b) A housing development project shall be deemed an allowable
13 use on a neighborhood lot if it complies with all of the following:
14 (1) (A) The density for the housing development shall meet or
15 exceed the applicable density deemed appropriate to accommodate
16 housing for lower income households as follows:
17 (i) For an incorporated city within a nonmctropolitan county
18 and for a nonmctropolitan county that has a micropolitan area,
19 sites allowing at least 15 units per acre.
20 (ii) For an unincorporated area in a nonmctropolitan county not
21 included in subparagraph (A), sites allowing at least 10 units per
22 acre.
23 (iii) For a suburban jurisdiction, sites allowing at least 20 units
24 per acre.
25 (iv) For a jurisdiction in a metropolitan county, sites allowing
26 at least 30 units per acre.
27 (B) "Metropolitan county," "nonmetropolitan county,"
28 "nonmctropolitan county with a micropolitan area," and
29 "suburban," shall have the same meanings as defined in
30 subdivisions (d), (c), and (t) of Section 65583.2.
31 (2) (A) The housing development shall be subject to local
32 zoning, parking, design, and other ordinances, local code
33 requirements, and procedures applicable to the processing and
34 permitting of a housing development in a zone that allows for the
35 housing with the density described in paragraph (1).
36 (B) If more than one zoning designation of the local agency
37 allows for housing with the density described in paragraph (1), the
38 zonine standards applicable to a parcel that allows residential use
39 pursuant to this section shall be the zoning standards that apply to
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1 the closest parcel that allows residential use at a density that meets
2 the requirements of paragraph (I).
3 (C) If the existing zoning designation for the parcel, as adopted
4 by the local government,allows residential use at a density greater
5 than that required in paragraph(I),the existing zoning designation
6 shall apply.
7 (3) The housing development shall comply with any public
8 notice, comment, hearing, or other procedures imposed by the
9 local agency on a housing development in the applicable zoning
10 designation identified in paragraph (2).
11 (4) The housing development shall be subject to a recorded deed
12 restriction requiring that at least _ percent of the units have an
13 affordable housing cost or affordable rent for lower income
14 households.
15 (5) All other local requirements for a neighborhood lot, other
16 than those that prohibit residential use, or allow residential use at
17 a lower density than provided in paragraph (1).
18 (6) The developer has done both of the following:
19 (A) Certified to the local agency that either of the following is
20 true:
2 I (i) The entirety of the development is a public work for purposes
22 of Chapter I (commencing with Section 1720)of'Part 7 of Division
23 2 of the Labor Code.
24 (ii) The development is not in its entirety a public work for
25 which prevailing wages must be paid under Article 2 (commencing
26 with Section 1720) of Chapter I of Part 2 of Division 2 of the
27 Labor Code,but all construction workers employed on construction
28 of the development will be paid at least the general prevailing rate
29 of per diem wages for the type of work and geographic area, as
30 determined by the Director of Industrial Relations pursuant to
31 Sections 1773 and 1773.9 of the Labor Code, except that
32 apprentices registered in programs approved by the Chief of the
33 Division of Apprenticeship Standards may be paid at least the
34 applicable apprentice prevailing rate. If the development is subject
35 to this subparagraph, then for those portions of the development
36 that are not a public work all of the following shall apply:
37 (1) The developer shall ensure that the prevailing wage
38 requirement is included in all contracts for the performance of all
39 construction work.
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1 (11) All contractors and subcontractors shall pay to all
2 construction workers employed in the execution of the work at
3 least the general prevailing rate of per diem wages, except that
4 apprentices registered in programs approved by the Chief of the
5 Division of Apprenticeship Standards may be paid at least the
6 applicable apprentice prevailing rate.
7 (111) Except as provided in subclause (V), all contractors and
8 subcontractors shall maintain and verify payroll records pursuant
9 to Section 1776 of the Labor Code and make those records
10 available for inspection and copying as provided therein.
I I (IV) Except as provided in subclause (V), the obligation of the
12 contractors and subcontractors to pay prevailing wages may be
13 enforced by the Labor Commissioner through the issuance of a
14 civil wage and penalty assessment pursuant to Section 1741 of the
15 Labor Code, which may be reviewed pursuant to Section 1742 of
16 the Labor Code, within 18 months after the completion of the
17 development,or by an underpaid worker through an administrative
18 complaint or civil action, or by a joint labor-management
19 committee though a civil action under Section 1771.2 of the Labor
20 Code. If a civil wage and penalty assessment is issued, the
21 contractor, subcontractor, and surety on a bond or bonds issued to
22 secure the payment of wages covered by the assessment shall be
23 liable for liquidated damages pursuant to Section 1742.1 of the
24 Labor Code.
25 (V) Subclauscs (111) and (IV) shall not apply if all contractors
26 and subcontractors performing work on the development are subject
27 to a project labor agreement that requires the payment of prevailing
28 wages to all construction workers employed in the execution of
29 the development and provides for enforcement of that obligation
30 through an arbitration procedure. For purposes of this clause,
31 "project labor agreement' has the same meaning as set forth in
32 paragraph (1) of subdivision (b) of Section 2500 of the Public
33 Contract Code.
34 (VI) Notwithstanding subdivision (c) of Section 1773.1 of the
35 Labor Code, the requirement that employer payments not reduce
36 the obligation to pay the hourly straight time or overtime wages
37 found to be prevailing shall not apply if otherwise provided in a
38 bona fide collective bargaining agreement covering the worker.
39 The requirement to pay at least the general prevailing rate of per
40 diem wages does not preclude use of an alternative workweek
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1 schedule adopted pursuant to Section 511 or 514 of the Labor
2 Code.
3 (B) Certified to the local agency that a skilled and trained
4 workforce will be used to perform all construction work on the
5 development.
6 (i) For purposes of this section, "skilled and trained workforce"
7 has the same meaning as provided in Chapter 2.9 (commencing
8 with Section 2600) of Part I of Division 2 of the Public Contract
9 Code.
10 (ii) If the developer has certified that a skilled and trained
I 1 workforce will be used to construct all work on development and
12 the application is approved, the following shall apply:
13 (1) The developer shall require in all contracts for the
14 performance of work that every contractor and subcontractor at
15 every tier will individually use a skilled and trained workforce to
16 construct the development.
17 (11) Every contractor and subcontractor shall use a skilled and
18 trained workforce to construct the development.
19 (111) Except as provided in subclause (IV), the developer shall
20 provide to the local agency, on a monthly basis while the
21 development or contract is being performed,a report demonstrating
22 compliance with Chapter 2.9 (commencing with Section 2600)of
23 Part I of Division 2 of the Public Contract Code.A monthly report
24 provided to the local government pursuant to this subclause shall
25 be a public record under the California Public Records Act(Chapter
26 3.5 (commencing with Section 6250) of Division 7 of Title 1)and
27 shall be open to public inspection. A developer that fails to provide
28 a monthly report demonstrating compliance with Chapter 2.9
29 (commencing with Section 2600) of Part I of Division 2 of the
30 Public Contract Code shall be subject to a civil penalty of ten
31 thousand dollars ($10,000) per month for each month for which
32 the report has not been provided. Any contractor or subcontractor
33 that fails to use a skilled and trained workforce shall be subject to
34 a civil penalty of two hundred dollars (S200) per day for each
35 worker employed in contravention of the skilled and trained
36 workforce requirement. Penalties may be assessed by the Labor
37 Commissioner within 18 months of completion of the development
38 using the same procedures for issuance of civil wage and penalty
39 assessments pursuant to Section 1741 of the Labor Code,and may
40 be reviewed pursuant to the same procedures in Section 1742 of
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1 the Labor Code. Penalties shall be paid to the State Public Works
2 Enforcement Fund.
3 (IV) Subclause (111) shall not apply if all contractors and
4 subcontractors performing work on the development are subject
5 to a project labor agreement that requires compliance with the
6 skilled and trained workforce requirement and provides for
7 enforcement of that obligation through an arbitration procedure.
8 For purposes of this subparagraph, "project labor agreement" has
9 the same meaning as set forth in paragraph (I) of subdivision (b)
10 of Section 2500 of the Public Contract Code.
I I (c) A local agency shall require that a rental of any unit created
12 pursuant to this section be for a term longer than 30 days.
13 (d) (1) A local agency may exempt a neighborhood lot from
14 this section in its land use element of the general plan if the local
15 agency concurrently reallocates the lost residential density to other
16 lots so that there is no net loss in residential density in the
17 jurisdiction.
18 (2) A local agency may reallocate the residential density from
19 an exempt neighborhood lot pursuant to this subdivision only if
20 the site or sites chosen by the local agency to which the residential
21 density is reallocated meet both of the following requirements:
22 (A) The site or sites are suitable for residential development.
23 For purposes of this subparagraph, "site or sites suitable for
24 residential development` shall have the same meaning as 'land
25 suitable Ior residential development," as defined in Section
26 65583.2.
27 (B) The site or sites are subject to an ordinance that allows for
28 development by right.
29 (e) (1) This section does not alter or lessen the applicability of
30 any housing, environmental, or labor law applicable to a housing
31 development authorized by this section, including, but not limited
32 to, the following:
33 (A) The California Coastal Act of 1976 (Division 20
34 (commencing with Section 30000)of the Public Resources Code).
35 (B) The California Environmental Quality Act (Division 13
36 (commencing with Section 21000)ofthe Public Resources Code).
37 (C) The Housing Accountability Act (Section 65589.5).
38 (D) The Density Bonus Law (Section 65915).
39 (E) Obligations to affirmatively further fair housing, pursuant
40 to Section 8899.50.
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I (F) State or local affordable housing laws.
2 (G) State or local tenant protection laws.
3 (2) All local demolition ordinances shall apply to a project
4 developed on a neighborhood lot-
5 (3) For purposes of the blousing Accountability Act (Section
6 65589.5),a proposed housing development project that is consistent
7 with the provisions of subdivision (b) shall be
8 deemed consistent,compliant,and in conformity with an applicable
9 plan, program, policy, ordinance, standard, requirement, or other
10 similar provision.
t l (4) Notwithstanding any other provision of this section, for
12 purposes of the Density Bonus Law (Section 65915), an applicant
13 for a housing development under this section may apply for a
14 density bonus pursuant to Section 65915.
15 (0 An applicant for a housing development under this section
16 shall provide written notice of the pending application to each
17 commercial tenant on the neighborhood lot when the application
18 is submitted.
19 (g) Notwithstanding Section 65913.4, a project on a
20 neighborhood lot shall not be eligible for streamlining pursuant to
21 Section 65913.4 if it meets either of the following conditions:
22 (1) The site has previously been developed pursuant to Section
23 65913.4 with a project of 10 units or fewer.
24 (2) The developer of the project or any person acting in concert
25 with the developer has previously proposed a project pursuant to
26 Section 65913.4 of 10 units or fewer on the same or an adjacent
27 site.
28 (h) For purposes of this section:
29 (1) "blousing development project" means a project consisting
30 of any of the following:
31 (A) Residential units only.
32 (B) Mixed-use developments consisting of residential and
33 nonresidential retail commercial or office uses, and at least 50
34 percent of the square footage of the new constriction associated
35 with the project is designated forresidential use. None of the square
36 footage of any such development shall be designated for hotel,
37 motel,bed and breakfast inn,or other transient lodging use, except
38 for a residential hotel.
39 (2) "Local agency'meats a city, including a charter city, county,
40 or a city and county.
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1 (3) "Neighborhood lot"means a parcel within an office or retail
2 commercial zone that is not adjacent to an industrial use.
3 (4) "Office or retail commercial zone" means any commercial
4 zone, except for zones where office uses and retail uses are not
5 permitted, or arc permitted only as an accessory use.
6 (5) "Residential hotel" has the same meaning as defined in
7 Section 50519 of the Health and Safety Code.
8 (i) The Legislature finds and declares that ensuring access to
9 affordable housing is a matter of statewide concern and is not a
10 municipal affair as that term is used in Section 5 of Article XI of
I I the California Constitution. Therefore, this section applies to all
12 Cities, including charter cities.
13 Q) This section shall remain in effect only until January 1, 2029,
14 and as of that date is repealed.
15 SEC. 2. Section 65913.4 of the Government Code is amended
16 to read:
17 65913.4. (a) A development proponent may submit an
18 application for a development that is subject to the streamlined,
19 ministerial approval process provided by subdivision (c) and is
20 not subject to a conditional use permit if the development complies
21 with subdivision (b) and satisfies all of the following objective
22 planning standards:
23 (1) The development is a nutltifamily housing development that
24 contains two or more residential units.
25 (2) The development and the site on which it is located satisfy
26 all of the following:
27 (A) It is a legal parcel or parcels located in a city if, and only
28 it', the city boundaries include some portion of either an urbanized
29 area or urban cluster, as designated by the United States Census
30 Bureau, or, for unincorporated areas, a legal parcel or parcels
31 wholly within the boundaries ofan urbanized area or urban cluster,
32 as designated by the United States Census Bureau.
33 (13) At least 75 percent ofthe perimeterofthe site adjoins parcels
34 that are developed with urban uses. For the purposes of this section,
35 parcels that are only separated by a street or highway shall be
36 considered to be adjoined.
37 (C) (i) A site that meets the requirements of clause (ii) and
38 satisfies any of the following:
39 (I) The site is zoned for residential use or residential mixed-use
40 development.
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1 (11) The site has a general plan designation that allows residential
2 use or a mix of residential and nonresidential uses.
3 (111) The site is zoned for office or retail commercial use and
4 has had no commercial tenants on 50 percent or more of its total
5 usable net interior square footage for a period of at least three years
6 prior to the submission of the application.
7 (ii) At least two-thirds ofthe square footageofthedcvelopment
8 is designated for residential use. Additional density, floor area,
9 and units, and any other concession, incentive, or waiver of
10 development standards granted pursuant to the Density Bonus Law
11 in Section 65915 shall be included in the square footage
12 calculation. The square footage of the development shall not
13 include underground space, such as basements or underground
14 parking garages.
15 (3) (A) The development proponent has committed to record,
16 prior to the issuance of the first building permit, a land use
17 restriction or covenant providing that any lower or moderate
18 income housing units required pursuant to subparagraph (B) of
19 paragraph (4) shall remain available at affordable housing costs
20 or rent to persons and families of lower or moderate income for
21 no less than the following periods of time:
22 (i) Fifty-five years for units that are rented.
23 (ii) Forty-five years for units that are owned.
24 (B) The city or county shall require the recording of covenants
25 or restrictions implementing this paragraph for each parcel or unit
26 of real property included in the development.
27 (4) The development satisfies subparagraphs(A)and(B)below:
28 (A) Is located in a locality that the department has determined
29 is subject to this subparagraph on the basis that the number of units
30 that have been issued building permits,as shown on the most recent
31 production report received by the department, is less than the
32 locality's share of the regional housing needs,by income category,
33 for that reporting period. A locality shall remain eligible under
34 this subparagraph until the department's determination for the next
35 reporting period.
36 (B) The development is subject to a requirement mandating a
37 minimum percentage of below market rate housing based on one
38 of the following:
39 (i) The locality did not submit its latest production report to the
40 department by the time period required by Section 65400, or that
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1 production report reflects that there were fewer units of above
2 moderate-incomc housing issued building permits than were
3 required for the regional housing needs assessment cycle for that
4 reporting period. In addition, if the project contains more than 10
5 units of housing, the project does either of the following:
6 (1) The project dedicates a minimum of 10 percent of the total
7 number of units to housing affordable to households making at or
8 below 80 percent of the area median income. Ilowever, if the
9 locality has adopted a local ordinance that requires that greater
10 than 10 percent of the units be dedicated to housing affordable to
1 1 households making below 80 percent of the area median income,
12 that local ordinance applies.
13 (Il) (ia) If the project is located within the San Francisco Bay
14 area, the project, in lieu of complying with subclause(1),dedicates
15 20 percent of the total number of units to housing affordable to
16 households making below 120 percent of the area median income
17 with the average income of the units at or below 100 percent of
18 the area median income. However, a local ordinance adopted by
19 the locality applies if it requires greater than 20 percent ofthc units
20 be dedicated to housing affordable to households making at or
21 below 120 percent of the area median income,or requires that any
22 of the units be dedicated at a level deeper than 120 percent. In
23 order to comply with this subclause, the rent or sale price charged
24 for units that arc dedicated to housing affordable to households
25 between 80 percent and 120 percent of the area median income
26 shall not exceed 30 percent of the gross income of the household.
27 (ib) For purposes of this subclause, "San Francisco Bay area"
28 means the entire area within the territorial boundaries of the
29 Counties of Alameda, Contra Costa, Marin, Napa, San Mateo,
30 Santa Clara, Solano,and Sonoma, and the City and County of San
31 Francisco.
32 (ii) The locality's latest production report reflects that there
33 were fewer units of housing issued building permits affordable to
34 either very low income or low-income households by income
35 category than were required for the regional housing needs
36 assessment cycle for that reporting period,and the project seeking
37 approval dedicates 50 percent of the total number of units to
38 housing affordable to households making at or below 80 percent
39 of the area median income. However, if the locality has adopted
40 a local ordinance that requires that greater than 50 percent ol'the
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1 units be dedicated to housing affordable to households making at
2 or below 80 percent of the area median income, that local ordinance
3 applies.
4 (iii) The locality did not submit its latest production report to
5 the department by the time period required by Section 65400, or
6 if the production report reflects that there were fewer units of'
7 housing affordable to both income levels described in clauses (i)
8 and (ii) that were issued building permits than were required for
9 the regional housing needs assessment cycle for that reporting
10 period, the project seeking approval may choose between utilizing
I I clause (i) or(ii).
12 (C) (i) A development proponent that uses a unit of affordable
13 housing to satisfy the requirements of subparagraph (B) may also
14 satisfy any other local or state requirement for allordablc housing,
15 including local ordinances or the Density Bonus Law in Section
16 65915, provided that the development proponent complies with
17 the applicable requirements in the state or local law.
18 (ii) A development proponent that uses a unit of affordable
19 housing to satisfy any other state or local affordability requirement
20 may also satisfy the requirements of subparagraph (B), provided
21 that the development proponent complies with applicable
22 requirements of subparagraph (B).
23 (iii) A development proponent may satisfy the affordability
24 requirements of'subparagraph (B) with a unit that is restricted to
25 households with incomes lower than the applicable income limits
26 required in subparagraph (B).
27 (5) The development, excluding any additional density or any
28 other concessions, incentives,or waivers ofdevclopmentstandards
29 granted pursuant to the Density Bonus Law in Section 65915, is
30 consistent with objective zoning standards, objective subdivision
31 standards, and objective design review standards in effect at the
32 time that the development is submitted to the local government
33 pursuant to this section,or at the timc a notice of intent is submitted
34 pursuant to subdivision(b),whichever occurs earlier. For purposes
35 of this paragraph, 'objective zoning standards," "objective
36 subdivision standards," and 'objective design review standards"
37 mean standards that involve no personal or subjective judgment
38 by a public official and are uniformly verifiable by reference to
39 an external and uniform benchmark or criterion available and
40 knowable by both the development applicant or proponent and the
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1 public official before submittal.These standards may be embodied
2 in alternative objective land use specifications adopted by a city
3 or county, and may include,but are not limited to, housing overlay
4 zones,specific plans, inclusionary zoning ordinances,and density
5 bonus ordinances, subject to the following:
6 (A) A development shall be deemed consistent with the objective
7 zoning standards related to housing density, as applicable, if the
8 density proposed is compliant with the maximum density allowed
9 within that land use designation, notwithstanding any specified
10 maximum unit allocation that may result in fewer units of housing
I I being permitted.
12 (13) In the event that objective zoning,general plan,subdivision,
13 or design review standards are mutually inconsistent, a
14 development shall be deemed consistent with the objective zoning
15 and subdivision standards pursuant to this subdivision if the
16 development is consistent with the standards set forth in the general
17 plan.
18 (C) It is the intent of the Legislature that the objective zoning
19 standards, objective subdivision standards, and objective design
20 review standards described in this paragraph be adopted or
21 amended in compliance with the requirements of Chapter 905 of
22 the Statutes of 2004.
23 (D) The amendments to this subdivision made by the act adding
24 this subparagraph do not constitute a change in,but are declaratory
25 of, existing law.
26 (F)A project located on a neighborhood lot,as defined in Section
27 65852,23, shall be decmcd consistent with objective zoning
28 standards, objective design standards, and objective subdivision
29 standards if the project is consistent with the provisions of
30 subdivision (b) of Section 65852.23 and if none of the square
31 footage in the project is designated for hotel, motel, bed and
32 breakftst inn,or other transient lodging use,exccptfora residential
33 hotel. For purposes of this subdivision. "residential hotel" shall
34 have the same meaning as defined in Section 50519 of the Health
35 and Safety Code.
36 (6) The development is not located on a site that is any of the
37 following:
38 (A) A coastal zone, as defined in Division 20 (commencing
39 with Section 30000) of the Public Resources Code.
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1 (B) Either prime farmland or farmland of statewide importance,
2 as defined pursuant to United States Department of Agriculture
3 land inventory and monitoring criteria,as modified for California,
4 and designated on the maps prepared by the Farmland Mapping
5 and Monitoring Program of the Department of Conservation, or
6 land zoned or designated for agricultural protection or preservation
7 by a local ballot measure that was approved by the voters of that
8 jurisdiction.
9 (C) Wetlands, as defined in the United States Fish and Wildlife
10 Service Manual, Part 660 FW 2 (June 21, 1993).
11 (D) Within a very high fire hazard severity zone, as determined
12 by the Department of Forestry and Fire Protection pursuant to
13 Section 51 178, or within a high or very high fire hazard severity
14 zone as indicated on maps adopted by the Department of Forestry
15 and Fire Protection pursuant to Section 4202 of the Public
16 Resources Coda This subparagraph does not apply to sites
17 excluded from the specified hazard zones by a local agency,
18 pursuant to subdivision (b) of Section 51179, or sites that have
19 adopted fire hazard mitigation measures pursuant to existing
20 building standards or state fire mitigation measures applicable to
21 the development.
22 (E) A hazardous waste site that is listed pursuant to Section
23 65962.5 or a hazardous waste site designated by the Department
24 of Toxic Substances Control pursuant to Section 25356 of file
25 Health and Safety Code, unless the State Department of Public
26 health, State Water Resources Control Board, or Department of
27 Toxic Substances Control has cleared the site for residential use
28 or residential mixed uses.
29 (F) Within a delineated earthquake fault zone as determined by
30 the State Geologist in any official maps published by the State
31 Geologist,unless the development complies with applicable seismic
32 protection building code standards adopted by the California
33 Building Standards Commission under the California Building
34 Standards Law (Part 2.5 (commencing with Section 18901) of
35 Division 13 of the health and Safety Code), and by any local
36 building department under Chapter 12.2(commencing with Section
37 8875) of Division I of Title 2.
38 (G) Within a special flood hazard area subject to inundation by
39 the I percent annual chance flood (100-year flood) as determined
40 by the Federal Emergency Management Agency in any official
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1 maps published by the Federal Emergency Management Agency.
2 If a development proponent is able to satisfy all applicable federal
3 qualifying criteria in order to provide that the site satisfies this
4 subparagraph and is otherwise eligible for streamlined approval
5 under this section,a local government shall not deny the application
6 on the basis that the development proponent did not comply with
7 any additional permit requirement, standard, or action adopted by
8 that local government that is applicable to that site.A development
9 may be located on a site described in this subparagraph if either
10 of the following are met:
11 (i) The site has been subject to a Letter of Map Revision
12 prepared by the Federal Emergency Management Agency and
13 issued to the local jurisdiction.
14 (ii) The site meets Federal Emergency Management Agency
15 requirements necessary to meet minimum flood plain management
16 criteria of the National Flood Insurance Program pursuant to Part
17 59 (commencing with Section 59.1) and Part 60 (commencing
I8 with Section 60.1) of Subchapter B of Chapter I of Title 44 of the
19 Code of Federal Regulations.
20 (1-1) Within a regulatory floodway as determined by the Federal
21 Emergency Management Agency in any official maps published
22 by the Federal Emergency Management Agency, unless the
23 development has received a no-rise certification in accordance
24 with Section 60.3(d)(3) of Title 44 of the Code of Federal
25 Regulations. If a development proponent is able to satisfy all
26 applicable federal qualifying criteria in order to provide that the
27 site satisfies this subparagraph and is otherwise eligible for
28 streamlined approval under this section, a local government shall
29 not deny the application on the basis that the development
30 proponent did not comply with any additional permit requirement,
31 standard, or action adopted by that local government that is
32 applicable to that site.
33 (1) Lands identified for conservation in an adopted natural
34 community conservation plan pursuant to the Natural Community
35 Conservation Planning-Act(Chapter 10(commencing with Section
36 2800) of' Division 3 of the Fish and Game Code), habitat
37 conservation plan pursuant to the federal Endangered Species Act
38 of 1973 (16 U.S.C. Sec. 1531 ct seq.), or other adopted natural
39 resource protection plan.
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1 (J) Habitat for protected species identified as candidate,
2 sensitive, or species of special status by state or federal agencies,
3 fully protected species, or species protected by the federal
4 Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.),
5 the California Endangered Species Act(Chapter 1.5 (commencing
6 with Section 2050) of Division 3 of the Fish and Game Code), or
7 the Native Plant Protection Act (Chapter 10 (commencing with
8 Section 1900) of Division 2 of the Fish and Game Code).
9 (K) Lands under conservation casement.
10 (7) The development is not located on a site where any of the
I I following apply:
12 (A) The development would require the demolition of the
13 following types of housing:
14 (i) I lousing that is subject to a recorded covenant, ordinance,
15 or law that restricts rents to levels affordable to persons and
16 families of moderate, low, or very low income.
17 (ii) Housing that is subject to any form of rent or price control
18 through a public entity's valid exercise of its police power.
19 (iii) Housing that has been occupied by tenants within the past
20 10 years.
21 (B) The site was previously used for housing that was occupied
22 by tenants that was demolished within 10 years before the
23 development proponent submits an application under this section.
24 (C) The development would require the demolition ofa historic
25 structure that was placed on a national, state, or local historic
26 register.
27 (D) The property contains housing units that arc occupied by
28 tenants, and units at the property are,or were,subsequently oflcred
29 for sale to the general public by the subdivider or subsequent owner
30 of the property.
31 (8) The development proponent has done both of the following,
32 as applicable:
33 (A) Certified to the locality that either of the following is true,
34 as applicable:
35 (i) The entirety ofthe development is a public work for purposes
36 of Chapter I (commencing with Section 1720)of Part 7 of Division
37 2 of the Labor Code.
38 (n) If the development is not in its entirety a public work, that
39 all construction workers employed in the execution of' the
40 development will be paid at least the general prevailing rate of per
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I dicm wages for the type of work and geographic area, as
2 deterntined by the Director of Industrial Relations pursuant to
3 Sections 1773 and 1773.9 of the Labor Code, except that
4 apprentices registered in programs approved by the Chief of the
5 Division of Apprenticeship Standards may be paid at least the
6 applicable apprentice prevailing rate. if the development is subject
7 to this subparagraph, then for those portions of the development
8 that are not a public work all of the following shall apply:
9 (1) The development proponent shall ensure that the prevailing
10 wage requirement is included in all contracts for the performance
1 I of the work.
12 (11) All contractors and subcontractors shall pay to all
13 construction workers employed in the execution of the work at
14 least the general prevailing rate of per diem wages, except that
15 apprentices registered in programs approved by the Chief of the
16 Division of Apprenticeship Standards may be paid at least the
17 applicable apprentice prevailing rate.
18 (111) Except as provided in subclause (V), all contractors and
19 subcontractors shall maintain and verify payroll records pursuant
20 to Section 1776 of the Labor Code and make those records
21 available for inspection and copying as provided therein.
22 (IV) Except as provided in subclause (V), the obligation of the
23 contractors and subcontractors to pay prevailing wages may be
24 enforced by the Labor Commissioner through the issuance of a
25 civil wage and penalty assessment pursuant to Section 1741 of the
26 Labor Code, which may be reviewed pursuant to Section 1742 of
27 the Labor Code, within 18 months after the completion of the
28 development, by an underpaid worker through an administrative
29 complaint or civil action, or by a joint labor-management
30 committee through a civil action under Section 1771.2 of the Labor
31 Code. If a civil wage and penalty assessment is issued, the
32 contractor, subcontractor, and surety on a bond or bonds issued to
33 secure the payment of wages covered by the assessment shall be
34 liable for liquidated damages pursuant to Section 1742.1 of the
35 Labor Code.
36 (V) Subclauscs (111) and (IV) shall not apply if all contractors
37 and subcontractors perfonning work on the dcvclopmcnt arc subject
38 to a project labor agreement that requires the payment ofprevailing
39 wages to all constriction workers employed in the CXCCUtiOn of
40 the development and provides for enforcement of that obligation
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1 through an arbitration procedure. For purposes of this clause,
2 "project labor agreement" has the same meaning as set forth in
3 paragraph (1) of subdivision (b) of Section 2500 of the Public
4 Contract Code.
5 (VI) Notwithstanding subdivision (c) of Section 1773.1 of the
6 Labor Code, the requirement that employer payments not reduce
7 the obligation to pay the hourly straight time or overtime wages
8 found to be prevailing shall not apply if otherwise provided in a
9 bona fide collective bargaining agreement covering the worker.
10 The requirement to pay at least the general prevailing rate of per
11 diem wages does not preclude use of an alternative workweek
12 schedule adopted pursuant to Section 511 or 514 of the Labor
13 Code.
14 (13) (i) For developments for which any of the following
15 conditions apply, certified that a skilled and trained workforce
16 shall be used to complete the development if the application is
17 approved:
18 (1) On and after January I, 2018, until December 31, 2021, the
19 development consists of' 75 or more units with a residential
20 component that is not 100 percent subsidized affordable housing
21 and will be located within ajurisdiction located in a coastal or bay
22 county with a population of 225,000 or more.
23 (11) On and after January I,2022, until December 31,2025, the
24 development consists of 50 or more units with a residential
25 component that is not 100 percent subsidized affordable housing
26 and will be located within ajurisdiction located in a coastal or bay
27 county with a population of 225,000 or more.
28 (I11) On and after January I, 2018, until December 31, 2019,
29 the development consists of 75 or more units with a residential
30 component that is not 100 percent subsidized affordable housing
31 and will be located within ajurisdiction with it population of fewer
32 than 550,000 and that is not located in a coastal or bay county.
33 (IV) On and after January I, 2020. until December 31, 2021,
34 the development consists of more than 50 units with a residential
35 component that is not 100 percent subsidized affordable housing
36 and will be located within ajurisdiction with a population of fewer
37 than 550,000 and that is not located in a coastal or bay county.
38 (V) On and after January I,2022,until December 31,2025, the
39 development consists of more than 25 units with a residential
40 component that is not 100 percent subsidized affordable housing
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1 and will be located within a jurisdiction with a population of fewer
2 than 550,000 and that is not located in a coastal or bay county.
3 (ii) For purposcsof this section, "ski t led and trained workforce"
4 has the same meaning as provided in Chapter 2.9 (commencing
5 with Section 2600) of Part I of Division 2 of the Public Contract
6 Code.
7 (iii) If the development proponent has certified that a skilled
8 and trained workforce will be used to complete the development
9 and the application is approved, the following shall apply:
10 (1) The applicant shall require in all contracts for the
I I performance of work that every contractor and subcontractor at
12 every tier will individually use a skilled and trained workforce to
13 complete the development.
14 (11) Every contractor and subcontractor shall use a skilled and
15 trained workforce to complete the development.
16 (III) Except as provided in subclause (IV), the applicant shall
17 provide to the locality, on a monthly basis while the development
18 or contract is being performed, a report demonstrating compliance
19 with Chapter 2.9 (commencing with Section 2600) of Part I of
20 Division 2 of the Public Contract Code.A monthly report provided
21 to the locality pursuant to this subclause shall be a public record
22 under the California Public Records Act(Chapter 3.5(commencing
23 with Section 6250) of Division 7 of Title 1) and shall be open to
24 public inspection. An applicant that fails to provide a monthly
25 report demonstrating compliance with Chapter 2.9 (commencing
26 with Section 2600) of Part I of Division 2 of the Public Contract
27 Code shall be subject to a civil penalty of ten thousand dollars
28 (S 10,000) per month for each month for which the report has not
29 been provided. Any contractor or subcontractor that fails to use a
30 skilled and trained workforce shall be subject to a civil penalty of
31 two hundred dollars (S200) per day for each worker employed in
32 contravention of the skilled and trained workforce requirement.
33 Penalties may be assessed by the Labor Commissioner within 18
34 months of completion of the development using the same
35 procedures for issuance of civil wage and penalty assessments
36 pursuant to Section 1741 of the Labor Code, and may be reviewed
37 pursuant to the same procedures in Section 1742 of the Labor
38 Code. Penalties shall be paid to the State Public Works
39 Enforcement Fund.
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1 (IV) Subclausc (111) shall not apply if all contractors and
2 subcontractors performing work on the development are subject
3 to a project labor agreement that requires compliance with the
4 skilled and trained workforce requirement and provides for
5 enforcement of that obligation through an arbitration procedure.
6 For purposes of this subparagraph, "project labor agreement" has
7 the same meaning as set forth in paragraph (1) of subdivision (b)
8 of Section 2500 of the Public Contract Code.
9 (C) Notwithstanding subparagraphs(A)and(B),a development
N that is subject to approval pursuant to this section is exempt from
I I any requirement to pay prevailing wages or use a skilled and
12 trained workforce if it meets both of the following:
13 (i) The project includes 10 or fewer units.
14 (ii) The project is not a public work for purposes ofChaptcr 1
15 (commencing with Section 1720) of Part 7 of Division 2 of the
16 Labor Code.
17 (9) The development did not or does not involve a subdivision
18 of a parcel that is,or,notwithstanding this section,would otherwise
19 be, subject to the Subdivision Map Act (Division 2 (commencing
20 with Section 66410)) or any other applicable law authorizing the
21 subdivision of land, unless the development is consistent with all
22 objective subdivision standards in the local subdivision ordinance,
23 and either of the following apply:
24 (A) The development has received or will receive financing or
25 funding by means of a low-income housing tax credit and is subject
26 to the requirement that prevailing wages be paid pursuant to
27 subparagraph (A) of paragraph (8).
28 (B) The development is subject to the requirement that
29 prevailing wages be paid,and a skilled and trained workforce used,
30 pursuant to paragraph (8).
3l (10) The development shall not be upon an existing parcel of'
32 land or site that is governed under the Mobilchomc Residency Law
33 (Chapter 2.5 (commencing with Section 798) of Title 2 of Part 2
34 of Division 2 of the Civil Code), the Recreational Vehicle Park
35 Occupancy Law (Chapter 2.6 (commencing with Section 799.20)
36 of Title 2 of Part 2 of Division 2 of the Civil Code), the
37 Mobilchomc Parks Act(Part 2.1 (commencing with Scction 18200)
38 of Division 13 of the Health and Safety Code), or the Special
39 Occupancy Parks Act(Part 2.3 (commencing with Section 18860)
40 of Division 13 of the Health and Safety Code).
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1 (b) (1) (A) (i) Before submitting an application for a
2 development subject to the streamlined, ministerial approval
3 process described in subdivision (c), the development proponent
4 shall submit to the local government a notice of its intent to submit
5 an application. The notice of' intent shall be in the form of a
6 preliminary application that includes all of the information
7 described in Section 65941.1, as that section read on January I,
8 2020.
9 (ii) Upon receipt of a notice of intent to submit an application
10 described in clause (i), the local government shall engage in a
II seeping consultation regarding the proposed development with
12 any California Native American tribe that is traditionally and
13 culturally affiliated with the geographic area, as dcscribcd in
14 Section 21080.3.1 of the Public Resources Code, of the proposed
15 development. In order to expedite compliance with this subdivision,
16 the local government shall contact the Native American Heritage
17 Commission for assistance in identifying any California Native
18 American tribe that is traditionally and culturally affiliated with
19 the geographic area of the proposed development.
20 (iii) The timeline for noticing and commencing a scoping
21 consultation in accordance with this subdivision shall be as follows:
22 (1) The local government shall provide a formal notice of a
23 development proponent's notice of intent to submit an application
24 described in clause (i) to each California Native American tribe
25 that is traditionally and culturally affiliated with the geographic
26 area of the proposed development within 30 days of receiving that
27 notice of intent. The formal notice provided pursuant to this
28 subclause shall include all of the following:
29 (ia) A description of the proposed development.
30 (ib) The location of the proposed development.
31 (ic) An invitation to engage in a scoping consultation in
32 accordance with this subdivision.
33 (11) Each California Native American tribe that receives a formal
34 notice pursuant to this clause shall have 30 days from the receipt
35 of that notice to accept the invitation to engage in a scoping
36 consultation.
37 (111) 11' the local government receives it response accepting an
38 invitation to engage in a scoping consultation pursuant to this
39 subdivision, the local government shall commence the scoping
40 consultation within 30 days of receiving that response.
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1 (B) The seeping consultation shall recognize that California
2 Native American tribes traditionally and culturally affiliated with
3 a geographic area have knowledge and expertise concerning the
4 resources at issue and shall take into account the cultural
5 significance of the resource to the culturally affiliated California
6 Native American tribe.
7 (C) The parties to a scoping consultation conducted pursuant
8 to this subdivision shall be the local government and any California
9 Native American tribe traditionally and culturally affiliated with
10 the geographic area of the proposed development. More than one
I I California Native American tribe traditionally and culturally
12 affiliated with the geographic area of the proposed development
13 may participate in the scoping consultation. However, the local
14 government, upon the request of any California Native American
15 tribe traditionally and culturally affiliated with the geographic area
16 of the proposed development, shall engage in a separate scoping
17 consultation with that California Native American tribe. The
18 development proponent and its consultants may participate in a
19 scoping consultation process conducted pursuant to this subdivision
20 if all of the following conditions arc met:
21 (i) The development proponent and its consultants agree to
22 respect the principles set forth in this subdivision.
23 (ii) The development proponent and its consultants engage in
24 the scoping consultation in good faith.
25 (iii) The California Native American tribe participating in the
26 scoping consultation approves the participation of the development
27 proponent and its consultants. The California Native American
28 tribe may rescind its approval at any time during the scoping
29 consultation, either for the duration of the scoping consultation or
30 with respect to any particular meeting or discussion held as part
31 of the scoping consultation.
32 (D) The participants to a scoping consultation pursuant to this
33 subdivision shall comply with all of the following confidentiality
34 requirements:
35 (i) Subdivision (r) of Section 6254.
36 (ii) Section 6254.10.
37 (iii) Subdivision(c)of Section 21082.3 of the Public Resources
38 Code.
39 (iv) Subdivision (d) of Section 15120 of Title 14 of the
40 California Code of Regulations.
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1 (v) Any additional confidentiality standards adopted by the
2 California Native American tribe participating in the scoping
3 consultation.
4 (E) The California Environmental Quality Act (Division 13
5 (commencing with Section 21000) of the Public Resources Code)
6 shall not apply to a scoping consultation conducted pursuant to
7 this subdivision.
8 (2) (A) If,after concluding the scoping consultation,the parties
9 find that no potential tribal cultural resource would be affected by
10 the proposed development,the development proponent may submit
I I an application for the proposed development that is subject to the
12 streamlined, ministerial approval process described in subdivision
13 (c).
14 (13) If, after concluding the scoping consultation, the parties
15 find that a potential tribal cultural resource could be aftected by
16 the proposed development and an enforceable agreement is
17 documented between the California Native American tribe and the
18 local government on methods, measures, and conditions for tribal
19 cultural resource treatment, the development proponent may submit
20 the application for a development subject to the streamlined,
21 ministerial approval process described in subdivision(c).The local
22 government shall ensure that the enforceable agreement is included
23 in the requirements and conditions for the proposed development.
24 (C) If, after concluding the scoping consultation, the parties
25 find that a potential tribal cultural resource could be affected by
26 the proposed development and an enforceable agreement is not
27 documented between the California Native American tribe and the
28 local government regarding methods, measures, and conditions
29 for tribal cultural resource treatment, the development shall not
30 be eligible for the streamlined, ministerial approval process
31 described in subdivision (c).
32 (D) For purposes of this paragraph,a scoping consultation shall
33 be deemed to be concluded if either of the following occur:
34 (i) The parties to the scoping consultation document an
35 enforceable agreement concerning methods, measures, and
36 conditions to avoid or address potential impacts to tribal cultural
37 resources that are or may be present.
38 (ii) One or more parties to the scoping consultation, acting in
39 good faith and after reasonable effort, conclude that a mutual
40 agreement on methods, measures, and conditions to avoid or
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1 address impacts to tribal cultural resources that are or may be
2 present cannot be reached.
3 (G) If the development or environmental setting substantially
4 changes after the completion of the seeping consultation,the local
5 government shall notify the California Native American tribe of
6 the changes and engage in a subsequent scoping consultation if
7 requested by the Califomia Native American tribe.
8 (3) A local government may only accept an application for
9 streamlined, ministerial approval pursuant to this section if one of
10 the following applies:
I I (A) A California Native American tribe that received a formal
12 notice of the development proponent's notice of intent to submit
13 an application pursuant to subclause (1) of clause (iii) of
14 subparagraph (A) of paragraph (I)did not accept the invitation to
15 engage in a scoping consultation.
16 (B) The Califomia Native American tribe accepted an invitation
17 to engage in a scoping consultation pursuant to subclause (11) of
I8 clause (iii) of subparagraph (A) of paragraph (1) but substantially
19 failed to engage in the scoping consultation after repeated
20 documented attempts by the local government to engage the
21 California Native American tribe.
22 (C) The parties to it scoping consultation pursuant to this
23 subdivision find that no potential tribal cultural resource will be
24 affected by the proposed development pursuant to subparagraph
25 (A) of paragraph (2).
26 (D) A scoping consultation between a California Native
27 American tribe and the local government has occurred in
28 accordance with this subdivision and resulted in agreement
29 pursuant to subparagraph (B) of paragraph (2).
30 (4) A project shall not be eligible for the streamlined,ministerial
31 process described in subdivision (c) if any of the following apply:
32 (A) There is a tribal cultural resource that is on a national, state,
33 tribal,or local historic register list located on the site of the project.
34 (B) There is a potential tribal cultural resource that could be
35 affected by the proposed development and the parties to a scoping
36 consultation conducted pursuant to this subdivision do not
37 document an enforceable agreement on methods, measures, and
38 conditions for tribal cultural resource treatment, as described in
39 subparagraph (C) of paragraph (2).
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1 (C) The parties to a scoping consultation conducted pursuant
2 to this subdivision do not agree as to whether a potential tribal
3 cultural resource will be affected by the proposed development.
4 (5) (A) If, after a scoping consultation conducted pursuant to
5 this subdivision, a project is not eligible for the streamlined.
6 ministerial process described in subdivision (c) for any or all of
7 the following reasons, the local government shall provide written
8 documentation of that fact, and an explanation of the reason for
9 which the project is not eligible, to the development proponent
10 and to any California Native American tribe that is a party to that
1 1 scoping consultation:
12 (i) There is a tribal cultural resource that is on a national, state,
13 tribal,or local historic register list located on the site of the project,
14 as described in subparagraph (A) of paragraph (4).
15 (ii) The parties to the scoping consultation have not documented
16 an enforceable agreement on methods, measures, and conditions
17 for tribal cultural resource treatment,as described in subparagraph
18 (C) of paragraph (2) and subparagraph (13) of paragraph (4).
19 (iii) The parties to the scoping consultation do not agree as to
20 whether a potential tribal cultural resource will be affected by the
21 proposed development, as described in subparagraph (C) of
22 paragraph (4).
23 (13) The written documentation provided to a development
24 proponent pursuant to this paragraph shall include information on
25 how the development proponent may seek a conditional use permit
26 or other discretionary approval of the development from the local
27 government.
28 (6) This section is not intended, and shall not be construed, to
29 limit consultation and discussion between a local government and
30 a California Native American tribe pursuant to other applicable
31 law, confidentiality provisions under other applicable law, the
32 protection of religious exercise to the fullest extent permitted under
33 state and federal law,or the ability of California Native American
34 tribe to submit information to the local government or participate
35 in any process of the local government.
36 (7) For purposes of this subdivision:
37 (A) "Consultation' means the meaningful and timely process
38 of seeking, discussing, and considering carefully the views of
39 others, in a manner that is cognizant of all parties'cultural values
40 and, where feasible, seeking agreement. Consultation between
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1 local governments and California Nativc American tribes shall be
2 conducted in a way that is mutually respectful of cacti party's
3 sovereignty. Consultation shall also recognize the tribes'potential
4 needs for confidentiality with respect to places that have traditional
5 tribal cultural importance. A lead agency shall consult the tribal
6 consultation best practices described in the "State of California
7 Tribal Consultation Guidelines: Supplement to the General Plan
8 Guidelines" prepared by the Office of Planning and Research.
9 (13) "Scoping"means the act of participating in early discussions
10 or investigations between the local government and California
11 Native American tribe, and the development proponent if
12 authorized by the California Native American tribe, regarding the
13 potential effects a proposed development could have on a potential
14 tribal cultural resource, as defined in Section 21074 of the Public
15 Resources Code, or California Native American tribe, as defined
16 in Section 21073 of the Public Resources Code.
17 (8) This subdivision shall not apply to any project that has been
18 approved under the streamlined, ministerial approval process
19 provided under this section before the effective date of the act
20 adding this subdivision.
21 (c) (1) If a local government determines that a development
22 submitted pursuant to this section is in conflict with any of the
23 objective planning standards specified in subdivision (a), it shall
24 provide the development proponent written documentation of
25 which standard or standards the development conflicts with, and
26 an explanation for the reason or reasons the development conflicts
27 with that standard or standards, as follows:
28 (A) Within 60 days of submittal of the development to the local
29 government pursuant to this section if the development contains
30 150 or fewer housing units.
31 (B) Within 90 days of submittal of the development to the local
32 government pursuant to this section if the development contains
33 more than 150 housing units.
34 (2) If the local government fails to provide the required
35 documentation pursuant to paragraph (1), the development shall
36 be deemed to satisfy the objective planning standards specified in
37 subdivision (a).
38 (3) For purposes of this section, a development is consistent
39 with the objective planning standards specified in subdivision (a)
40 if there is substantial evidence that would allow a reasonable person
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1 to conclude that the development is consistent with the objective
2 planning standards.
3 (d) (1) Any design review or public oversight of the
4 dcvclopmenl may be conducted by the local government's planning
5 commission or any equivalent board or commission responsible
6 for review and approval of development projects,or the city council
7 or board of supervisors, as appropriate. That design review or
8 public oversight shall be objective and be strictly focused on
9 assessing compliance with criteria required for streamlined projects,
10 as well as any reasonable objective design standards published
II and adopted by ordinance or resolution by a local jurisdiction
12 before submission of' a development application, and shall be
13 broadly applicable to development within the jurisdiction. That
14 design review or public oversight shall be completed as follows
15 and shall not in any way inhibit, chill, or preclude the ministerial
16 approval provided by this section or its effect, as applicable:
17 (A) Within 90 days of submittal of the development to the local
18 government pursuant to this section if the development contains
19 150 or fewer housing units.
20 (B) Within 180 days of submittal of the development to the
21 local government pursuant to this section if the development
22 contains more than 150 housing units.
23 (2) If the development is consistent with the requirements of
24 subparagraph (A) or (B) of paragraph (9) of subdivision (a) and
25 is consistent with all objective subdivision standards in the local
26 subdivision ordinance, an application for a subdivision pursuant
27 to the Subdivision Map Act(Division 2 (commencing with Section
28 66410)) shall be exempt from the requirements of the California
29 Environmental Quality Act(Division 13 (commencing with Section
30 21000) of the Public Resources Code) and shall be subject to the
31 public oversight timelines set forth in paragraph (1).
32 (c) (1) Notwithstanding any other law, a local government,
33 whether or not it has adopted an ordinance governing automobile
34 parking requirements in multifamily developments, shall not
35 impose automobile parking standards for a streamlined
36 development that was approved pursuant to this section in any of
37 the following instances:
38 (A) The development is located within one-half mile ol'public
39 transit.
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1 (B) The development is located within an architecturally and
2 historically significant historic district.
3 (C) When on-street parking pennits are required but not offered
4 to the occupants of the development.
5 (D) When there is a car share vehicle located within one block
6 of the development.
7 (2) If the development does not fall within any of the categories
8 described in paragraph (1), the local government shall not impose
9 automobile parking requirements for streamlined developments
10 approved pursuant to this section that exceed one parking space
I 1 per unit.
12 (f) (1) If a local government approves a development pursuant
13 to this section, then, notwithstanding any other law, that approval
14 shall not expire if the project includes public investment in housing
15 affordability,beyond tax credits, where 50 percent of the units are
16 affordable to households making at or below 80 percent of the area
17 median income.
18 (2) (A) Ifa local government approves a development pursuant
19 to this section and the project does not include 50 percent of the
20 units afordablc to households making at or below 80 percent of
21 the area median income, that approval shall remain valid for three
22 years from the date of the final action establishing that approval,
23 or if litigation is filed challenging that approval, from the date of
24 the final judgment upholding that approval.Approval shall remain
25 valid for a project provided that vertical construction of the
26 development has begun and is in progress. For purposes of this
27 subdivision, "in progress" means one of the following:
28 (i) The construction has begun and has not ceased for more than
29 180 days.
30 (ii) If the development requires multiple building permits, an
31 initial phase has been completed, and the project proponent has
32 applied for and is diligently pursuing a building permit for a
33 subsequent phase, provided that once it has been issued, the
34 building permit for the subsequent phase does not lapse.
35 (B) Notwithstanding subparagraph(A),a local government may
36 grant a project a one-time, one-year extension if the project
37 proponent can provide documentation that there has been
38 significant progress toward getting the development construction
39 ready, such as filing a building permit application.
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1 (3) If a local government approves a development pursuant to
2 this section, that approval shall remain valid for three years from
3 the date of the final action establishing that approval and shall
4 remain valid thereafter for a project so long as vertical construction
5 of the development has begun and is in progress. Additionally, the
6 development proponent may request, and the local government
7 shall have discretion to grant, an additional one-year extension to
8 the original three-year period. The local government's action and
9 discretion in determining whether to grant the foregoing extension
10 shall be limited to considerations and processes set forth in this
II section.
12 (g) (1) (A) A development proponent may request a
13 modification to a development that has been approved under the
14 streamlined, ministerial approval process provided in subdivision
15 (b) if that request is submitted to the local government before the
16 issuance of the final building permit required for construction of
17 the development.
18 (B) Except as provided in paragraph (3), the local government
19 shall approve a modification if it determines that the modification
20 is consistent with the objective planning standards specified in
21 subdivision (a) that were in effect when the original development
22 application was first submitted.
23 (C) The local government shall evaluate any modifications
24 requested pursuant to this subdivision for consistency with the
25 objective planning standards using the same assumptions and
26 analytical methodology that the local government originally used
27 to assess consistency for the development that was approved for
28 streamlined, ministerial approval pursuant to subdivision (b).
29 (D) A guideline that was adopted or amended by the department
30 pursuant to subdivision 0) after a development was approved
31 through the streamlined ministerial approval process described in
32 subdivision (b) shall not be used as a basis to deny proposed
33 modifications.
34 (2) Upon receipt of the developmental proponent's application
35 requesting a modification, the local government shall determine
36 if the requested modification is consistent with the objective
37 planning standard and either approve or deny the modification
38 request within 60 days after submission of the modification, or
39 within 90 days if design review is required.
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1 (3) Notwithstanding paragraph (1), the local government may
2 apply objective planning standards adopted after the development
3 application was first submitted to the requested modification in
4 any of the following instances:
5 (A) The development is revised such that the total number of
6 residential units or total square footage of construction changes
7 by 15 percent or more.
8 (13) The development is revised such that the total number of
9 residential units or total square footage of construction changes
10 by 5 percent or more and it is necessary to subject the development
II to an objective standard beyond those in effect when the
12 development application was submitted in order to mitigate or
13 avoid a specific, adverse impact, as that term is defined in
14 subparagraph (A) of paragraph (1) of subdivision 0) of Section
15 65589.5, upon the public health or safety and there is no feasible
16 alternative method to satisfactorily mitigate or avoid the adverse
17 impact.
18 (C) Objective building standards contained in the California
19 Building Standards Code (Title 24 of the California Code of
20 Regulations), including, but not limited to, building, plumbing,
21 electrical, fire, and grading codes, may be applied to all
22 modifications.
23 (4) The local government's review of a modification request
24 pursuant to this subdivision shall be strictly limited to determining
25 whether the modification, including any modification to previously
26 approved density bonus concessions or waivers, modify the
27 development's consistency with the objective planning standards
28 and shall not reconsider prior determinations that arc not affected
29 by the modification.
30 (h) (1) A local government shall not adopt or impose am
31 requirement, including, but not limited to, increased fees or
32 inclusionary housing requirements, that applies to a project solely
33 or partially on the basis that the project is eligible to receive
34 ministerial or streamlined approval pursuant to this section.
35 (2) A local ,,ovcmnncnt shall issue a subsequent permit required
36 for a development approved under this section if the application
37 substantially complies with the development as it was approved
38 pursuant to subdivision (c). Upon receipt of an application for a
39 subsequent permit, the local government shall process the permit
40 without unreasonable delay and shall not impose any procedure
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I or requirement that is not imposed on projects that are not approved
2 pursuant to this section. Issuance of subsequent permits shall
3 implement the approved development, and review of the permit
4 application shall not inhibit, chill, or preclude the development.
5 For purposes of this paragraph, a "subsequent permit" means a
6 permit required subsequent to receiving approval under subdivision
7 (c), and includes, but is not limited to, demolition, grading,
8 encroachment, and building permits and final maps, if necessary.
9 (3) (A) If a public improvement is necessary to implement a
10 development that is subject to the streamlined,ministerial approval
I I pursuant to this section, including, but not limited to, a bicycle
12 lane, sidewalk or walkway, public transit stop, driveway, street
13 paving or overlay, a curb or gutter,a modified intersection,a street
14 sign or street light, landscape or hardscape, an above-ground or
15 underground utility connection, a water line, fire hydrant, storm
16 or sanitary sewer connection,retaining wall,and any related work,
17 and that public improvement is located on land owned by the local
18 government, to the extent that the public improvement requires
19 approval from the local government, the local government shall
20 not exercise its discretion over any approval relating to the public
21 improvement in a manner that would inhibit, chill, or preclude the
22 development.
23 (B) If an application for a public improvement described in
24 subparagraph (A) is submitted to a local government, the local
25 government shall do all of the following:
26 (i) Consider the application based upon any objective standards
27 specified in any state or local laws that were in effect when the
28 original development application was submitted.
29 (ii) Conduct its review and approval in the same manner as it
30 would evaluate the public improvement if required by a project
31 that is not eligible to receive ministerial or streamlined approval
32 pursuant to this section.
33 (C) If an application for a public improvement described in
34 subparagraph (A) is submitted to a local government, the local
35 government shall not do either of the following:
36 (i) Adopt or impose any requirement that applies to a project
37 solely or partially on the basis that the project is eligible to receive
38 ministerial or streamlined approval pursuant to this section.
39 (ii) Unreasonably delay in its consideration, review,or approval
40 of the application.
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1 (i) (1) This section shall not affect a development proponent's
2 ability to use any alternative streamlined by right permit processing
3 adopted by a local government, including the provisions of
4 subdivision (i) of Section 65583.2.
5 (2) This section shall not prevent a development from also
6 qualifying as a housing development project entitled to the
7 protections of Section 65589.5.This paragraph does not constitute
8 it change in, but is declaratory of, existing law.
9 0) The California Environmental Quality Act (Division 13
10 (commencing with Section 21000)of the Public Resources Code)
I I does not apply to actions taken by a state agency, local government,
12 or the San Francisco Bay Area Rapid Transit District to:
13 (1) Lease, convey, or encumber land owned by the local
14 government or the San Francisco Bay Area Rapid Transit District
15 or to facilitate the lease, conveyance, or encumbrance of land
16 owned by the local government, or for the lease of land owned by
17 the San Francisco Bay Area Rapid Transit District in association
18 with an eligible TOD project, as defined pursuant to Section
19 29010.1 of the Public Utilities Code, nor to any decisions
20 associated with that lease, or to provide financial assistance to a
21 dcvclopnment that receives streamlined approval pursuant to this
22 section that is to be used for housing for persons and families of'
23 very low, low, or moderate income, as defined in Section 50093
24 of the Health and Safety Code.
25 (2) Approve improvements located on land owned by the local
26 government or the San Francisco Bay Area Rapid Transit District
27 that arc necessary to implement a development that receives
28 streamlined approval pursuant to this section that is to be used for
29 housing for persons and families of very low, low, or moderate
30 income,as defined in Section 50093 of the Health and Safety Code.
31 (k) For purposes of this section, the following terms have the
32 following meanings:
33 (1) "Aflordablc housing cost"has the same meaning as set forth
34 in Section 50052.5 of the health and Safety Code.
35 (2) "Affordable rent" has the same meaning as set forth in
36 Section 50053 of the Health and Safety Code.
37 (3) "Department" means the Department of Ilousing and
38 Community Development.
39 (4) "Dcvclopnment proponent"means the developer who submits
40 an application for streamlined approval pursuant to this section.
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1 (5) "Completed entitlements" means a housing development
2 that has received all the required land use approvals or entitlements
3 necessary for the issuance of a building permit.
4 (6) "Locality" or"local goverment" means a city, including a
5 charter city, a county, including a charter county, or a city and
6 county, including a charter city and county.
7 (7) "Moderate income housing units"means housing units with
8 an affordable housing cost or affordable rent for persons and
9 families of moderate income, as that term is defined in Section
10 50093 of the Health and Safety Code.
I 1 (8) 'Production report"means the information reported pursuant
12 to subparagraph (1-1) of paragraph (2)of subdivision (a)of Section
13 65400.
14 (9) "State agency" includes every state office, officer,
15 department,division, bureau, board,and commission,but does not
16 include the California State University or the University of
17 California.
18 (10) "Subsidized" means units that are price or rent restricted
19 such that the units arc affordable to households meeting the
20 definitions of very low and lower income, as defined in Sections
21 50079.5 and 50105 of the Health and Safety Code.
22 (1 1) "Reporting period" means either of the following:
23 (A) The first half of the regional housing needs assessment
24 cycle.
25 (B) The last hal l'of the regional housing needs assessment cycle.
26 (12) "Urban uses" means any current or former residential,
27 commercial,public institutional, transit or transportation passenger
28 facility, or retail use, or any combination of those uses.
29 (n The department may review, adopt, amend, and repeal
30 guidelines to implement uniform standards or criteria that
31 supplement or clarify the terms, references, or standards set forth
32 in this section. Any guidelines or terms adopted pursuant to this
33 subdivision shall not be subject to Chapter 3.5 (commencing with
34 Section 1 1340)of Part I of Division 3 of Title 2 of the Government
35 Code.
36 (m) The determination of whether an application for a
37 development is subject to the streamlined ministerial approval
38 process provided by subdivision (c) is not a "project" as defined
39 in Section 21065 of the Public Resources Code.
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1 (n) It is the policy of the state that this section be interpreted
2 and implemented in a manner to afford the fullest possible weight
3 to the interest of, and the approval and provision of, increased
4 housing supply.
5 (o) This section shall remain in effect only until January I,2026,
6 and as of that date is repealed.
7 SEC. 3. No reimbursement is required by this act pursuant to
8 Section 6 of Article XIII B of the California Constitution because
9 a local agency or school district has the authority to levy service
10 charges, fees, or assessments sufficient to pay for the program or
I I level of service mandated by this act or because costs that may be
12 incurred by a local agency or school district will be incurred
13 because this act creates a new crime or infraction, eliminates a
14 crime or infraction,or changes the penalty for a crime or infraction,
15 within the meaning of Section 17556 of the Government Code, or
16 changes the definition of a crime within the meaning of Section 6
17 of Article XI11 B of the California Constitution.
0
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AMENDED IN SENATE APRIL 27, 2021
AMENDED IN SENATE APRIL 5, 2021
SENATE BILL No. 9
Introduced by Senators Atkins, Caballero, Rubio, and Wiener
(Coauthors: Senators Gonzalez Cortese, Gonzalez, and McGuire)
(Goatitlier! ,6,gsenibly .%4eniber Robert Rivas)
(Coauthors:Assetnbly Members Robert Rivas and IVitks)
December 7, 2020
An act to amend Section 66452.6 of, and to add Sections 6585221
and 66411.7 to, the Government Code, relating to land use.
LCGISLArIVE COUNSEL'S DIGEST
SE 9, as amended, Atkins. Housing development: approvals.
The Planning and Zoning Law provides for the creation of accessory
dwelling units by local ordinance, or, if a local agency has not adopted
an ordinance, by ministerial approval, in accordance with specified
standards and conditions.
This bill, among other things, would require a proposed housing
development containing no more than 2 residential units within a
single-family residential zone to be considered ministerially, without
discretionary review or hearing, if the proposed housing development
meets certain requirements, including, but not limited to, that the
proposed housing development would not require demolition or
alteration of housing that is subject to a recorded covenant, ordinance,
or law that restricts rents to levels affordable to persons and families
of moderate, low, or very low income, that the proposed housing
development does not allow for the demolition of more than 25% of
the existing exterior structural walls, except as provided, and that the
development is not located within a historic district, is not included on
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SB9 —2—
the State Historic Resources Inventory, or is not within a site that is
legally designated or listed as a city or county landmark or historic
property or district.
The bill would set forth what a local agency can and cannot require
in approving the constriction of 2 residential units, including, but not
limited to,authorizing aeityoreountp local agency to impose objective
zoning standards,objective subdivision standards, and objective design
standards, as defined, unless those standards would have the effect of
physically precluding the constriction of up to 2 units or physically
precluding either of the 2 units from being at least 800 square fact in
floor area, prohibiting the imposition of setback requirements under
certain circumstances,and setting maximum setback requirements under
all other circumstances.
The Subdivision Map Act vests the authority to regulate and control
the design and improvement of subdivisions in the legislative body of
a local agency and sets forth procedures governing the local agency's
Processing, approval, conditional approval or disapproval, and filing
of tentative, final,and parcel maps,and the modification of those maps.
Under the Subdivision Map Act,an approved or conditionally approved
tentative map expires 24 months after its approval or conditional
approval or after any additional period of time as prescribed by local
ordinance, not to exceed an additional 12 months, except as provided.
This bill, among other things, would require a e ti er evunty local
agency to ministerially approve a parcel map
for an urban lot split that meets certain requirements, including, but not
limited to, that the urban lot split would not require the demolition or
alteration of housing that is subject to a recorded covenant, ordinance,
or law that restricts rents to levels affordable to persons and families
of moderate, low, or very low income, that the parcel is located within
a single Jamilt,residential zone,and that the parcel is not located within
a historic district, is not included on the State Historic Resources
Inventory, or is not within a site that is legally designated or listed as
a city or county landmark or historic property or district.
The bill would set forth what a local agency can and cannot require
in approving an urban lot split, including, but not limited to,authorizing
a city or eonntp local agency to impose objective zoning standards,
objective subdivision standards, and objective design standards, as
defined, unless those standards would have the effect of physically
precluding the construction of 2 units, as defined, on either of the
resulting parcels or physically precluding either of the 2 units from
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being at least 800 square feet in floor area, prohibiting the imposition
of setback requirements under certain circumstances, and setting
maximum setback requirements under all other circumstances.The bill,
until January I, 2027, would prohibit a local agency from imposing an
owner occupancy requirement on applicants unless specified conditions
arc met.
The bill would also extend the limit on the additional period that may
be provided by ordinance, as described above, from 12 months to 24
months and would make other conforming or nonsubstantive changes.
The California Environmental Quality Act (CGQA) requires a lead
agency, as defined, to prepare, or cause to be prepared, and certify the
completion of, an environmental impact report on a project that it
proposes to carry out or approve that may have a significant effect on
the environment. CI:QA does not apply to the approval of ministerial
projects.
This bill, by establishing the ministerial review processes described
above, would thereby exempt the approval of projects subject to those
processes from CGQA.
The California Coastal Act of 1976 provides for the planning and
regulation of development,under coastal development permit process,
within the coastal zone,as defined, that shall be based on various coastal
resources planning and management policies set forth in the act.
This bill would exempt a local government agency from being
required to hold public hearings for coastal development permit
applications for housing developments and urban lot splits pursuant to
the above provisions.
By increasing the duties of local agencies with respect to land use
regulations, the bill would impose a statc-mandated local program.
The bill would include findings that changes proposed by this bill
address a matter of' statewide concern rather than a municipal affair
and, therefore, apply to all cities, including charter cities.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act
for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
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The people of the Stare of California do enact cis follows:
I SI-CTION I. Section 65852.21 is added to the Government
2 Code, to read:
3 65852.21. (a) A proposed housing development containing
4 no more than two residential units within a single-family residential
5 zone shall be considered ministerially,without discretionary review
6 or a hearing, if the proposed housing development meets all of the
7 following requirements:
8 (1) The parcel subject to the proposed housing development is
9 located within a-eity city, the boundaries of which include some
10 portion of either an urbanized area or urban cluster, as designated
1 1 by the United States Census Burcau, or, for unincorporated areas,
12 a legal parcel wholly within the boundaries of an urbanized area
13 or urban cluster,as designated by the United States Census Bureau.
14 (2) The parcel satisfies the requirements specified in
15 subparagraphs(B)to(K), inclusive,ofparagraph(6)of subdivision
16 (a) of Scction 65913.4.
17 (3) Notwithstanding any provision of this section or any local
18 law, the proposed housing development would not require
19 demolition or alteration of any of the following types of housing:
20 (A) Housing that is subject to a recorded covenant, ordinance,
21 or law that restricts rents to levels affordable to persons and
22 families of moderate, low, or very low income.
23 (B) Housing that is subject to any form of rent or price control
24 through a public entity's valid exercise of its police power.
25 (C) Housing that has been occupied by a tenant in the last three
26 years.
27 (4) The parcel subject to the proposed housing development is
28 not a parcel on which an owner of residential real property has
29 exercised the owner's rights under Chapter 12.75 (commencing
30 with Section 7060) of Division 7 of Title I to withdraw
31 accommodations from rent or lease within 15 years before the date
32 that the development proponent submits an application.
33 (5) The proposed housing development does not allow the
34 demolition of more than 25 percent of' the existing exterior
35 structural walls, unless the housing development meets at least
36 one of the following conditions:
37 (A) If a local ordinance so allows.
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1 (13) The site has not been occupied by a tenant in the last three
2 years.
3 (6) The development is not located within a historic district or
4 property included on the State Historic Resources Inventory, as
5 defined in Section 5020.1 of the Public Resources Code,or within
6 a site that is designated or listed as a city or county landmark or
7 historic property or district pursuant to a city or county ordinance.
8 (b) (1) Notwithstanding any local law and except as provided
9 in paragraph (2), amity ereannty local agency may impose
10 objective zoning standards, objective subdivision standards, and
I I objective design review standards that do not conflict with this
12 section.
13 (2) (A) The eityor edmkp local agency shall not impose
14 objective zoning standards, objective subdivision standards, and
15 objective design standards that would have the efTect ofphysically
16 precluding the construction of' up to two units or that would
17 physically preclude either of the two units from being at least 800
18 square feet in floor area.
19 (B) (i) Notwithstanding subparagraph (A), no setback shall be
20 required for an existing structure or a structure constructed in the
21 same location and to the same dimensions as an existing structure.
22 (ii) Notwithstanding subparagraph(A), in all other circumstances
23 not described in clause(i),a local go%erftmen agency may require
24 a setback of up to four feet from the side and rear lot lines.
25 (c) In addition to any conditions established in accordance with
26 subdivision (b), a local agency may require any of the following
27 conditions when considering an application for two residential
28 units as provided for in this section:
29 (1) Off-street parking of up to one space per unit, except that a
30 local agency shall not impose parking requirements in either of
31 the following instances:
32 (A) The parcel is located within one-half mile walking distance
33 of either a high-quality transit corridor, as defined in subdivision
34 (b) of Section 21 155 of the Public Resources Code, or a major
35 transit stop,as defined in Section 21064.3 ofthe Public Resources
36 Code.
37 (B) There is a car share vehicle located within one block of the
38 parcel.
39 (2) For residential units connected to an onsitc wastewater
40 treatment system, a percolation test completed within the last-fA-e
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SB9 —6-
1 S years, or, if the percolation test has been recertified, within the
2 last 10 years.
3 (d) A local agency shall require that a rental of any unit created
4 pursuant to this section be for a tern longer than 30 days.
5 (e) Notwithstanding Section 65852 2, 65852.2 or 65852.22, a
6 local agency shall not be required to permit an accessory dwelling
7 unit or a junior accessory dwelling unit on parcels that use both
8 the authority contained within this section and the authority
9 contained in Section 6641 1.7.
10 (f) Notwithstanding subparagraph (B) of paragraph (2) of
I I subdivision(b),an application shall not be rejected solely because
12 it proposes adjacent or connected structures provided that the
13 structures meet building code safety standards and are sufficient
14 to allow separate conveyance.
15 (g) Local agencies shall include units constructed pursuant to
16 this section in the annual housing clement report as required by
17 subparagraph (1) of paragraph (2) of subdivision (a) of Section
18 65400.
19 (h) For purposes of this section, all of the following apply:
20 (1) A housing development contains two residential units ifthe
21 development proposes no more than two new units or if it proposes
22 to add one new unit to one existing unit.
23 (2) The terms `objective zoning standards," `objective
24 subdivision standards," and `objective design review standards"
25 mean standards that involve no personal or subjective judgment
26 by a public official and arc uniformly verifiable by reference to
27 an external and uniform benchmark or criterion available and
28 knowable by both the development applicant or proponent and the
29 public official prior to submittal.These standards may be embodied
30 in alternative objective land use specifications adopted by a-eity
31 ereounty, local ngencv, and may include, but are not limited to,
32 housing overlay zones, specific plans, inclusionary zoning
33 ordinances, and density bonus ordinances.
34 (3) "Local ngencv" means a city, county. or city and county,
35 whether general law or chartered.
36 (i) A local agency may adopt an ordinance to implement the
37 provisions of this section.An ordinance adopted to implement this
38 section shall not be considered a project under Division 13
39 (commencing with Section 21000) ofthe Public Resources Code.
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1 (j) Nothing in this section shall be construed to supersede or in
2 any way alter or lessen the effect or application of the California
3 Coastal Act of 1976 (Division 20 (commencing with Section
4 30000) of the Public Resources Code), except that the local
5 go%ernmem agency shall not be required to hold public hearings
6 for coastal development permit applications for a housing
7 development pursuant to this section.
8 SEC. 2. Section 66411.7 is added to the Government Code, to
9 read:
10 66411.7. (a) Notwithstanding any other provision of this
11 division and any local law, a eitq or eminty local agency shall
12 ministerially approve, as set forth in this section, a parcel map-or
13 for an urban lot split-dmt only if the local
14 agency cleternunes that the parcel map for the urban lot split meets
15 all the following requirements:
16 (1) The parcel mapor tentaiive mid final mnap subdivides an
17 existing parcel to create no more than two new parcels of
18 approximately equal lot area provided that one parcel shall not be
19 smaller than 40 percent of the lot area of the original parcel
20 proposed for subdivision.
21 (2) (A) Except as provided in subparagraph (B), both newly
22 created parcels are no smaller than 1,200 square feet.
23 (B) A local agency may by ordinance adopt a smaller minimum
24 lot size subject to ministerial approval under this subdivision.
25 (3) The parcel being subdivided meets all the following
26 requirements:
27 (A) The parcel is located within a.single family residential zone.
28 (B) The parcel subject to the proposed urban lot split is located
29 within a-eHy city, the boundaries of which include some portion
30 of either an urbanized area or urban cluster, as designated by the
31 United States Census Bureau, or, for unincorporated areas,a legal
32 parcel wholly within the boundaries of an urbanized area or urban
33 cluster, as designated by the United States Census Bureau.
34 (C) The parcel satisfies the requirements specified in
35 subparagraphs(B)to(K), inclusive, ofparagraph(6)of subdivision
36 (a) ol'Section 65913.4.
37 (D) The proposed urban lot split would not require demolition
38 or alteration of any of the following types of housing:
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SB 9 —8-
1 (i) Housing that is subject to a recorded covenant, ordinance,
2 or law that restricts rents to levels affordable to persons and
3 families of moderate, low, or very low income.
4 (ii) Housing that is subject to any form of rent or price control
5 through a public entity's valid exercise of its police power.
6 (iii) A parcel or parcels on which an owner of residential real
7 property has exercised the owner's rights under Chapter 12.75
8 (commencing with Section 7060) of Division 7 of Title I to
9 withdraw accommodations from rent or lease within 15 years
10 before the date that the development proponent submits an
II application.
12 (iv) (lousing that has been occupied by a tenant in the last three
13 years.
14 (E) The parcel is not located within a historic district or property
15 included on the State Historic Resources Inventory, as defined in
16 Section 5020.1 of the Public Resources Code, or within a site that
17 is designated or listed as a city or county landmark or historic
18 property or district pursuant to a city or county ordinance.
19 (F) The parcel has not been established through prior exercise
20 of an urban lot split as provided for in this section.
21 (G) Neither the owner of the parcel being subdivided nor any
22 person acting in concert with the owner has previously subdivided
23 an adjacent parcel using an urban lot split as provided for in this
24 section.
25 (b) An application for a parcel map for an urban lot split shall
26 be approved in accordance with the following requirements:
27 (1) A local agency shall approve or deny an application for a
28 parcel mop for an urban lot split ministerially without discretionary
29 review.
30 (2) A local agency shall approve an urban lot split only if it
31 conforms to all applicable objective requirements of the
32 Subdivision Map Act (Division 2 (commencing with Section
33 66410)), except as otherwise expressly provided in this section.
34 (3) Notwithstanding Section 6641 1.1, a local agency shall not
35 impose regulations that require dedications of rights-of-way or the
36 construction of offsite improvements for the parcels being created
37 as a condition of issuing a parcel map or tenta6ve and finaHitap
38 for an urban lot-nAit-split pursuant to this section.
39 (c) (1) Except as provided in paragraph (2), notwithstanding
40 any local law, a city oreounty local agency,may impose objective
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1 zoning standards, objective subdivision standards, and objective
2 design review standards applicable to a parcel created by an urban
3 lot split that do not conflict with this section.
4 (2) A local agency shall not impose objective zoning standards,
5 objective subdivision standards, and objective design review
6 standards that would have the effect of physically precluding the
7 construction of two units on either of the resulting parcels or that
8 would result in a unit size of less than 800 square feet.
9 (3) (A) Notwithstanding paragraph (2), no setback shall be
10 required for an existing structure or a structure constructed in the
I I same location and to the same dimensions as an existing structure.
12 (B) Notwithstanding paragraph (2), in all other circumstances
13 not described in subparagraph (A), a local government agency
14 may require a setback of up to four feet from the side and rear lot
15 lines.
16 (d) In addition to any conditions established in accordance with
17 subdi%-ision (e), this section, a local agency may require any of the
18 following conditions when considering an application for a parcel
19 map for an urban lot split:
20 (1) Easements required for the provision of public services and
21 facilities.
22 (2) A requirement that the parcels have access to,provide access
23 to, or adjoin the public right-of-way.
24 (3) Off-street parking of up to one space per unit, except that a
25 local agency shall not impose parking requirements in either of
26 the following instances:
27 (A) The parcel is located within one-half mile walking distance
28 of either a high-quality transit corridor as defined in subdivision
29 (b) of Section 21155 of the Public Resources Code, or a major
30 transit stop as defined in Section 21064.3 of the Public Resources
31 Code.
32 (B) There is a car share vehicle located within one block of the
33 parcel.
34 (c) A local agency shall require that the uses allowed on a lot
35 created by this section be limited to residential uses.
36 (f) (1) A local agency may impose an owner occupancy
37 requirement on an applicant for an urban lot split that meets one
38 of the following conditions:
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I (A) The applicant intends to occupy one of the housing units
2 as their principal residence for a minimum of one year from the
3 date of the approval of the urban lot split.
4 (B) The applicant is a "qualified nonprofit corporation" A
5 "qualified nonprofit corporation" means a nonprofit corporation
6 organized pursuant to Section 501(c)(3) of the Internal Revenue
7 Code that has received a welfare exemption under either of the
8 following:
9 (i) Section 214.15 of the Revenue and Taxation Code for
10 properties intended to be sold to low-income families who
1 1 participate in a special no-interest loan program.
12 (ii) Section 214.18 of the Revenue and Taxation Code for
13 properties owned by a community land trust.
14 (2) A local agency shall not impose additional owner occupancy
15 standards,other than provided for in this subdivision,on an urban
16 lot split pursuant to this section.
17 (3) This subdivision shall become inoperative on January 1,
18 2027.
19 (g) A local agency shall require that a rental of any unit created
20 pursuant to this section be for it term longer than 30 days.
21 (h) A local agency shall not require,as a condition for ministerial
22 approval of a permit parcel map application for the creation of an
23 urban lot split,the correction of nonconforming zoning conditions.
24 (i) (1) Notwithstanding any provision of Section 65852.2,
25 Section 65852.21, Section 65852.22, Section 65915,or this section,
26 a local agency shall not be required to permit more than two units
27 on it parcel created through the exercise of the authority contained
28 within this section.
29 (2) For the purposes of this section, "unit' means any dwelling
30 unit, including, but not limited to, a unit or units created pursuant
31 to Section 65852.21, a primary dwelling, an accessory dwelling
32 unit as defined in Section 658522, or a junior accessory dwelling
33 unit as defined in Section 65852.22.
34 0) Notwithstanding paragraph (3) of subdivision (c), an
35 application shall not be rejected solely because it proposes adjacent
36 or connected strictures provided that the structures meet building
37 code safety standards and are sufficient to allow separate
38 conveyance.
39 (k) Local agencies shall include the number of applications for
40 parcel maps for urban lot splits pursuant to this section in the
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1 annual housing clement report as required by subparagraph (1) of
2 paragraph (2) of subdivision (a) of Section 65400.
3 (1) I-or purposes of this section, both of the lenm "objeetive
4 following shall apply -
5 (1) "Objective zoning standards," "objective subdivision
6 standards,"and"objective design review standards'mean standards
7 that involve no personal or subjectivejudgment by a public official
8 and are uniformly verifiable by reference to an external and
9 uniform benchmark or criterion available and knowable by both
10 the development applicant or proponent and the public official
I I prior to submittal.These standards may be embodied in alternative
12 objective land use specifications adopted by a eity oreetmnty,local
13 agency, and may include, but arc not limited to, housing overlay
14 zones,specific plans, inclusionary zoning ordinances,and density
15 bonus ordinances.
16 (2) "Local agency" meons a city, county, or city and county.
17 whether general law or chartered.
18 (m) A local agency may adopt an ordinance to implement the
19 provisions of this section.An ordinance adopted to implement this
20 section shall not be considered a project under Division 13
21 (commencing with Section 21000) of the Public Resources Code.
22 (n) Nothing in this section shall be construed to supersede or in
23 any way alter or lessen the effect or application of the California
24 Coastal Act of 1976 (Division 20 (commencing with Section
25 30000) of the Public Resources Code), except that the local
26 gavemnient agency shall not be required to hold public hearings
27 for coastal development permit applications for urban lot splits
28 pursuant to this section.
29 SEC. 3. Section 66452.6 of the Government Code is amended
30 to read:
31 66452.6. (a) (1) An approved or conditionally approved
32 tentative map shall expire 24 months after its approval or
33 conditional approval,or after any additional period of time as may
34 be prescribed by local ordinance, not to exceed an additional 24
35 months. However, if the subdivider is required to expend two
36 hundred thirty-six thousand seven hundred ninety dollars
37 (5236,790) or more to construct, improve, or finance the
38 construction or improvement of public improvements outside the
39 property boundaries of the tentative map, excluding improvements
40 of public rights-of-way that abut the boundary of the property to
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1 be subdivided and that are reasonably related to the development
2 of that property, each filing of a final map authorized by Section
3 66456.1 shall extend the expiration of the approved or conditionally
4 approved tentative map by 48 months from the date of its
5 expiration,as provided in this section,or the date of the previously
6 filed final map, whichever is later. The extensions shall not extend
7 the tentative map more than 10 years from its approval or
8 conditional approval. However, a tentative map on property subject
9 to a development agreement authorized by Article 2.5
10 (commencing with Section 65864)of Chapter 4 of Division I may
I I be extended for the period of time provided for in the agreement,
12 but not beyond the duration of the agreement. The number of
13 phased final maps that may be filed shall be determined by the
14 advisory agency at the time of the approval or conditional approval
15 of the tentative map.
16 (2) Commencing January I, 2012, and each calendar year
17 thereafter, the amount of two hundred thirty-six thousand seven
18 hundred ninety dollars ($236,790) shall be annually increased by
19 operation of law according to the adjustment for inflation set forth
20 in the statewide cost index for class B constriction, as determined
21 by the State Allocation Board at its January meeting.The effective
22 date of each annual adjustment shall be March I. The adjusted
23 amount shall apply to tentative and vesting tentative maps whose
24 applications were received after the effective date of the
25 adjustment.
26 (3) "Public improvements," as used in this subdivision, include
27 traffic controls, streets, roads, highways, freeways, bridges,
28 overcrossings, street interchanges, flood control or storm drain
29 facilities, sewer facilities, water facilities, and lighting facilities.
30 (b) (1) The period oftime specified in subdivision(a), including
31 any extension thereof granted pursuant to subdivision (e), shall
32 not include any period of time during which a development
33 moratorium, imposed after approval of the tentative map, is in
34 existence_ However,the length of the moratorium shall not exceed
35 five years.
36 (2) The length of time specified in paragraph (1) shall be
37 extended for up to three years, but in no event beyond January t,
38 1992, during the pendency of any lawsuit in which the subdivider
39 asserts, and the local agency that approved or conditionally
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1 approved the tentative map denies, the existence or application of
2 a development moratorium to the tentative map.
3 (3) Once a development moratorium is terminated, the map
4 shalt be valid for the same period of time as was left to nm on the
5 map at the time that the moratorium was imposed. However, if the
6 remaining time is less than 120 days, the map shall be valid for
7 120 days following the termination of the moratorium.
8 (c) The period of time specified in subdivision (a), including
9 any extension thereof granted pursuant to subdivision (e), shall
10 not include the period of time during which a lawsuit involving
1 1 the approval or conditional approval of the tentative map is or was
12 pending in a court ofcompetentjurisdiction, ifthe stay ofthe time
13 period is approved by the local agency pursuant to this section.
14 After service of the initial petition or complaint in the lawsuit upon
15 the local agency, the subdivider may apply to the local agency for
16 a stay pursuant to the local agency's adopted procedures. Within
17 40 days after receiving the application,the local agency shall either
18 stay the time period for up to five years or deny the requested stay.
19 The local agency may, by ordinance, establish procedures for
20 reviewing the requests, including, but not limited to, notice and
21 hearing requirements,appeal procedures,and other administrative
22 requirements.
23 (d) The expiration of the approved or conditionally approved
24 tentative map shall terminate all proceedings and no final map or
25 parcel map of all or any portion of the real property included within
26 the tentative map shall be filed with the legislative body without
27 first processing a new tentative map. Once a timely filing is made,
28 subsequent actions of the local agency, including, but not limited
29 to,processing,approving,and recording, may lawfully occur after
30 the date of expiration of the tentative map. Delivery to the county
31 surveyor or city engineer shall be deemed a timely filing for
32 purposes of this section.
33 (e) Upon application of the subdivider filed before the expiration
34 of the approved or conditionally approved tentative map, the time
35 at which the map expires pursuant to subdivision (a) may be
36 extended by the legislative body or by an advisory agency
37 authorized to approve or conditionally approve tentative maps for
38 a period or periods not exceeding a total of'six years. The period
39 of extension specified in this subdivision shall be in addition to
40 the period of time provided by subdivision (a). Before the
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1 expiration of an approved or conditionally approved tentative map,
2 upon an application by the subdivider to extend that map, the map
3 shall automatically be extended for 60 days or until the application
4 for the extension is approved, conditionally approved, or denied,
5 whichever occurs first. Ifthe advisory agency denies a subdivider's
6 application for an extension, the subdivider may appeal to the
7 legislative body within 15 days after the advisory agency has
8 denied the extension.
9 (f) For purposes of this section, a development moratorium
10 includes a water or sewer moratorium, or a water and sewer
1 1 moratorium,as well as other actions of public agencies that regulate
12 land use, development, or the provision of services to the land,
13 including the public agency with the authority to approve or
14 conditionally approve the tentative map,which thereafter prevents,
15 prohibits, or delays the approval of a final or parcel map. A
16 development moratorium shall also be deemed to exist for purposes
17 of this section for any period of time during which a condition
18 imposed by the city or county could not be satisfied because of
19 either of the following:
20 (1) The condition was one that,by its nature, necessitated action
21 by the city or county, and the city or county either did not take the
22 necessary action or by its own action or inaction was prevented or
23 delayed in taking the necessary action before expiration of the
24 tentative map.
25 (2) The condition necessitates acquisition of real property or
26 any interest in real property from a public agency, other than the
27 city or county that approved or conditionally approved the tentative
28 map, and that other public agency fails or refuses to convey the
29 property interest necessary to satisfy the condition. However,
30 nothing in this subdivision shall be construed to require any public
31 agency to convey any interest in real property owned by it. A
32 development moratorium specified in this paragraph shall be
33 deemed to have been imposed either on the date of approval or
34 conditional approval of the tentative map, ifcvidcnce was included
35 in the public record that the public agency that owns or controls
36 the real property or any interest therein may refuse to convey that
37 property or interest,or on the date that the public agency that owns
38 or controls the real property or any interest therein receives an
39 offer by the subdivider to purchase that property or interest for fair
40 market value, whichever is later. A development moratorium
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1 specified in this paragraph shall extend the tentative map up to the
2 maximum period as set forth in subdivision (b), but not later than
3 January 1, 1992,so long as the public agency that owns or controls
4 the real property or any interest therein fails or refuses to convey
5 the necessary property interest, regardless of the reason for the
6 failure or refusal, except that the development moratorium shall
7 be deemed to terminate 60 days after the public agency has
8 officially made, and communicated to the subdivider, a written
9 offeror commitment binding on the agency to convey the necessary
10 property interest for a fair market value, paid in a reasonable time
1 1 and manner.
12 SEC.4. The Legislature finds and declares that ensuring access
13 to affordable housing is a matter of statewide concern and not a
14 municipal affair as that term is used in Section 5 of Article al of
15 the California Constitution.Therefore, Sections I and 2 ofthis act
16 adding Sections 65852.21 and 6641 1.7 to the Government Code
17 and Section 3 of this act amending Section 66452.6 of the
18 Government Code apply to all cities, including charter cities.
19 SEC. 5. No reimbursement is required by this act pursuant to
20 Section 6 of Article XIII B of the California Constitution because
21 a local agency or school district has the authority to levy service
22 charges, fees, or assessments sufficient to pay for the program or
23 level of service mandated by this act,within the meaning of Section
24 17556 of the Government Code.
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AMENDED IN SENATE APRIL 27, 2021
AMENDED IN SENATE APRIL 13, 2021
AMENDED IN SENATE MARCH 22, 2021
AMENDED 1N SENATE FEBRUARY 24, 2021
SENATE BILL No. 10
Introduced by Senator Wiener
(Principal coauthors: Senators Atkins and Caballero)
(Principal coauthor: Assembly Member Robert Rivas)
December 7, 2020
An act to add Section 4752 to the Civil Code, and to add Section
65913.5 to the Government Code, relating to land use.
LEGISLATIVE.COUNSEL'S DIGEST'
SB 10, as amended, Wiener. Planning and zoning: housing
development: density.
The Planning and Zoning Law requires a city or county to adopt a
general plan for land use development within its boundaries that
includes, among other things, a housing element. Existing law requires
an attached housing development to be a permitted use, not subject to
a conditional use permit, on any parcel zoned for multifamily housing
if at least certain percentages of the units are available at affordable
housing costs to very low income, lower income,and moderate-income
households for at least 30 years and if the project meets specified
conditions relating to location and being subject to a discretionary
decision other than a conditional use permit. Existing law provides for
various incentives intended to facilitate and expedite the construction
of affordable housing.
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Existing law, the Davis-Stirling Common Interest Development Act,
governs the management and operation of common interest
developments. Existing law makes void and unenforceable any covenant,
restriction, or condition contained in any deed, contract, security
instrument, or other instrument affecting the transfer or sale of any
interest in a planned development, and any provision of a governing
document, that effectively prohibits or unreasonably restricts the
construction or use of an accessory dwelling unit or junior accessory
dwelling unit on a lot zoned for single-family residential use that meets
specified standards.
This bill would, notwithstanding any local restrictions on adopting
zoning ordinances,authorize a local government to adopt an ordinance
to zone any parcel for up to 10 units of residential density per parcel,
at a height specified in the ordinance, if the parcel is located in a
transit-rich area, ajobs-rich area, or an urban infill site, as those terms
arc defined. In this regard, the bill would require the Department of
Housing and Community Development, in consultation with the Office
of Planning and Research, to determine jobs-rich areas and publish a
map of those areas every 5 years, commencing January 1, 2023, based
on specified criteria. The bill would specify that an ordinance adopted
under these provisions, and any resolution to amend the jurisdiction's
General Plan, ordinance, or other local regulation adopted to be
consistent with that ordinance, is not a project for purposes of the
California Environmental Quality Act.The bill would impose specified
requirements on a zoning ordinance adopted under these provisions,
including a requirement that the zoning ordinance clearly demarcate
the areas that arc subject to the ordinance and that the legislative body
make a finding that the ordinance is consistent with the city or county's
obligation to affirmatively further fair housing. The bill would prohibit
a legislative body that adopts a zoning ordinance pursuant to these
provisions from subsequently reducing the density of any parcel subject
to the ordinance.
This bill would make void and unenforceable any covenant,restriction,
or condition contained in any deed, contract, security instrument, or
other instrument affecting the transfer or sale of any interest in a planned
development, and any provision of a governing document, that
efcctively prohibits or unreasonably restricts a use or density authorized
by an ordinance adopted pursuant to the provisions described above.
The bill would provide that it does not apply to provisions that impose
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reasonable restrictions,as defined,that do not make the implementation
of an above-described ordinance infeasible.
This bill would include findings that changes proposed by this bill
address a matter of statewide concern rather than a municipal affair
and, therefore, apply to all cities, including charter cities.
Vote: majority. Appropriation: no. Fiscal committee. yes.
State-mandated local program: no.
The people of the State of California do enact us follows:
I SECTION 1. Section 4752 is added to the Civil Code, to read:
2 4752. (a) Any covenant, restriction, or condition contained in
3 any deed, contract, security instrument, or other instrument
4 affecting the transfer or sale of any interest in a planned
5 development, and any provision of a governing document, is void
6 and unenforceable if it effectively prohibits or unreasonably
7 restricts a use or density authorized by an ordinance adopted
8 pursuant to Section 65913.5 of the Government Code.
9 (b) This section does not apply to provisions that impose
10 reasonable restrictions that do not make the implementation of
I I Section 65913.5 of the Government Code infeasible. For purposes
12 of this subdivision, "reasonable restrictions" means restrictions
13 that do not unreasonably increase the cost to construct, effectively
14 prohibit the construction of, or extinguish the ability to otherwise
15 construct residential housing in a manner authorized by an
16 ordinance adopted pursuant to Section 65913.5 of the Government
17 Code.
18 (c) The Legislature finds and declares that ensuring the adequate
19 production of affordable housing is a matter of statewide concern
20 and that this section serves a significant and legitimate public
21 purpose by eliminating potential restrictions that could inhibit the
22 production of affordable housing.
23 SEC. 2. Section 65913.5 is added to the Government Code, to
24 read:
25 65913.5. (a) (1) Notwithstanding any local restrictions on
26 adopting zoning ordinances enacted by the jurisdiction, including
27 restrictions enacted by a local voter initiative, that limit the
28 legislative body's ability to adopt zoning ordinances, a local
29 government may adopt an ordinance to zone a parcel for up to 10
30 units of residential density per parcel, at a height specified by the
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1 local government in the ordinance, if the parcel is located in one
2 of the following:
3 (A) A transit-rich area.
4 (13) A jobs-rich area.
5 (C) An urban infill site.
6 (2) An ordinance adopted in accordance with this subdivision,
7 and any resolution to amend the jurisdiction's General Plan,
8 ordinance, or other local regulation adopted to be consistent with
9 that zoning ordinance,shall not constitute a"project" for purposes
10 of Division 13 (commencing with Section 21000) of the Public
1 1 Resources Code.
12 (3) Paragraph(1)shall not apply to parcels located within a very
13 high fire hazard severity zone, as determined by the Department
14 of Forestry and Fire Protection pursuant to Section 51 178,or within
15 a high or very high fire hazard severity zone as indicated on maps
16 adopted by the Department of Forestry and Fire Protection pursuant
17 to Section 4202 of the Public Resources Code. This paragraph
18 does not apply to pareels exelt ded From the specified hazard zones
19
20 sites that have adopted fire hazard mitigation measures pursuant
21 to existing building standards or state fire mitigation measures
22 applicable to the development.
23 (b) A legislative body shall comply with all of the following
24 when adopting a zoning ordinance pursuant to subdivision (a):
25 (1) The -zoning ordinance shall include a declaration that the
26 zoning ordinance is adopted pursuant to this section.
27 (2) The zoning ordinance shall clearly demarcate the areas that
28 are zoned pursuant to this section.
29 (3) The legislative body shall make a finding that the increased
30 density authorized by the ordinance is consistent with the city or
31 county's obligation to affirmatively further fair housing pursuant
32 to Section 8899.50.
33 (c) A legislative body that adopts a zoning ordinance pursuant
34 to this section shall not subsequently reduce the density of any
35 parcel subject to the ordinance.
36 (d) A housing development project, as defined in subdivision
37 (h) of Section 65589.5, that is proposed on a parcel subject to an
38 ordinance adopted under this section shall be subject to the
39 protections established in Section 65589.5.
40 (c) For purposes of this section:
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1 (1) "lligh-quality bus corridor" means a corridor with fixed
2 route bus service that meets all of the following criteria:
3 (A) It has average service intervals of no more than 15 minutes
4 during the three peak hours- between 6 a.m. to 10 a.m., inclusive,
5 and the three peak hours between 3 p.m. and 7 p.m., inclusive, on
6 Monday through Friday.
7 (B) It has average service intervals of no more than 20 minutes
8 during the hours of a.m. to 10 a.m., inclusive,on Monday through
9 Friday.
10 (C) It has average intervals of no more than 30 minutes during
1 1 the hours of 8 a.m. to 10 p.m., inclusive, on Saturday and Sunday.
12 (2) (A) "Jobs-rich area" means an area identified by the
13 Department of Housing and Community Development in
14 consultation with the Office of Planning and Research and other
15 necessary stakeholders that is high opportunity and either is jobs
16 rich or would enable shorter commutc distances based on whether,
17 in a regional analysis, the tract meets both of the following:
18 (i) The tract is high opportunity, meaning its characteristics are
19 associated with positive educational and economic outcomes for
20 households of all income levels residing in the tract.
21 (ii) The tract meets either of the following criteria:
22 (1) New housing sited in the tract would enable residents to live
23 near more jobs than is typical for tracts in the region.
24 (II) New housing sited in the tract would enable shorter commute
25 distances for residents, relative to existing commute patterns and
26 jobs-housing fit.
27 (13) The Department of Flousing and Community Development
28 shall, commencing on January 1, 2023, publish and update, every
29 five vears thereafter,a map of the state showing the areas identified
30 by the department as'jobs-rich areas.'The department shall begin
31 with the most current version of the Department of Housing and
32 Community Development and California Tax Credit Allocation
33 Committee Opportunity Maps and update the methodology as it
34 determines is appropriate to advance the goals of subparagraph
35 (A).
36 (3) "Transit-rich area" means a parcel within one-half mile of
37 a major transit stop, as defined in Section 21064.3 of the Public
38 Resources Code, or a parcel on a high-quality bus corridor.
39 (4) "Urban infill site" means a site that satisfies all of the
40 following:
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1 (A) A site that is a legal parcel or parcels located in a city if,
2 and only if, the city boundaries include some portion of either an
3 urbanized area or urban cluster,as designated by the United States
4 Census Bureau, or, for unincorporated areas, a legal parcel or
5 parcels wholly within the boundaries of an urbanized area or urban
6 cluster, as designated by the United States Census Bureau.
7 (B) A site in which at least 75 percent of the perimeter of the
8 site adjoins parcels that are developed with urban uses. For the
9 purposes of this section, parcels that are only separated by a street
10 or highway shall be considered to be adjoined.
I I (C) A site that is zoned for residential use or residential
12 mixed-use development, or has a general plan designation that
13 allows residential use or a mix of residential and nonresidential
14 uses, with at least two-thirds of the square footage of the
15 development designated for residential use.
16 (0 The Legislature finds and declares that ensuring the adequate
17 production of affordable housing is a matter of statewide concern
18 and is not a municipal affair as that term is used in Section 5 of
19 Article XI of the California Constitution. Therefore, this section
20 applies to all cities, including charter cities.
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AMENDED IN SENATE MARCH 8, 2021
SENATE BILL No. 15
Introduced by Senator Portantino
December 7, 2020
An act to add Chapter 2.9 (commencing with Section 50495) to Part
2 of Division 31 of the Health and Safety Code, relating to housing.
LEGISLATIVE COUNSEL'S DIGEST
SB 15, as amended, Portantino. Housing development: incentives:
rezoning of idle retail sites.
Existing law establishes, among other housing programs, the
Workforce I lousing Reward Program, which requires the Department
of Housing and Community Development to make local assistance
grants to cities, counties, and cities and counties that provide land use
approval to housing developments that are affordable to very low and
low-income households.
This bill, upon appropriation by the Legislature in the annual Budget
Act or other statute, would require the department to administer a
program to provide incentives in the form of grants allocated as provided
to local governments that rezone idle sites used for a big box retailer
or a commercial shopping center to instead allow the development of
worl4twee housing:housing, as defined The bill would define various
terns for these purposes. In order to be eligible for a grant, the bill
would require a local government, among other things, to apply to the
department for an allocation ofgranl funds and provide documentation
that it has met specified requirements, including certain labor-related
requirements.The bill would make the allocation of these grants subject
to appropriation by the Legislature in the annual Budget Act or other
statute.
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SB 15 —2—
The bill would require the department to issue a Notice of Funding
Availability for each calendar year in which funds are made available
for these purposes. The bill would require that the amount of grant
awarded to each eligible local government be equal to 7 times the
average amount of annual sales and use tax revenue generated by each
idle site identified in the local government's application over the 7 years
immediately preceding the date of the local government's application,
subject to certain modifications, and that the local government receive
this amount in one lump-sum following the date of the local
government's application. The bill, upon appropriation by the
Legislature in the annual Budget Act or other statute, would authorize
the department to review, adopt, amend, and repeal guidelines to
implement uniform standards or criteria that supplement or clarify the
terms, references, or standards for this program and exempt those
guidelines from the allemaking provisions of the Administrative
Procedure Act. The bill would make its provisions operative oil and
after January 1, 2023.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
The people of the State of California clo enact as follows:
I SECTION 1. Chapter 2.9 (commencing with Section 50495)
2 is added to Part 2 of Division 31 of the Health and Safety Code,
3 to read:
4
5 CHAPTER 2.9. RETAIL SITE REZONING INCENTIVES
6
7 50495. For purposes of this chapter:
8 (a) "Applicant" means a public agency or private entity that
9 submits an application to a local government to undertake a
10 6vorkft)ree hottsin housing, as &-fined in subdivision (k),
I I development project on sites rezoned pursuant to this chapter.
12 (b) 'Big box retailer" means a store of greater than 75,000
13 square feet of gross buildable area that generates or previously
14 generated sales or use tax pursuant to the Bradley-Burns Uniform
15 Local Sales and Use Tax Law(Part 1.5 (commencing with Section
16 7200) of Division 2 of the Revenue and Taxation Code.
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1 (c) "Commercial shopping center" means a group of two or
2 more stores that maintain a common parking lot for patrons of
3 those stores.
4 (d) "Idle"means that at least 80 percent of the leased or rentable
5 square footage of the big box retailer or commercial shopping
6 center site is not occupied for at least a 12-month calendar period.
7 (c) "Local government"means a city,county,or city and county.
8 (t) "NOFA" means Notice of Funding Availability.
9 (g) "Project labor agreement" has the same meaning as in
10 paragraph (1) of subdivision (b) of Section 2500 of the Public
1 1 Contract Code.
12 (h) "Sales and use tax revenue" means the cumulative amount
13 of revenue generated by taxes imposed by a local government in
14 accordance with both of the following laws:
15 (1) The Bradlcy-Bums Uniform Local Sales and Use Tax Law
16 (Part 1.5 (commencing with Section 7200) of Division 2 of the
17 Revenue and Taxation Code).
18 (2) The Transactions and Use Tax Law (Part 1.6 (commencing
19 with Section 7251) of Division 2 of the Revenue and Taxation
20 Code).
21 (i) "Skilled and trained workforce" has the same meaning as
22 provided in Chapter 2.9 (commencing with Section 2600) of Part
23 1 of Division 2 of the Public Contract Code.
24 0) (1) "Use by right"means that the local government's review
25 of a Wffkfffee housing housing, cr.r defined in subdivision (k),
26 development does not require a conditional use permit, planned
27 unit development permit, or other discretionary local government
28 review or approval that would constitute a "project" for purposes
29 of Division 13 (commencing with Section 21000) of the Pubic
30 Resources Code. Any subdivision of the sites shall be subject to
31 all laws, including, but not limited to, the local government
32 ordinance implementing the Subdivision Map Act (Division 2
33 (commencing with Section 66410) of Title 7 of the Government
34 Code).
35 (2) A local ordinance may provide that "use by right" does not
36 exempt the use from design review. However, that design review
37 shall not constitute a "project" for purposes of Division 13
38 (commencing with Section 21000)of the Public Resources Code.
39 (k) " "Housing"means an owner-occupied
40 or rental housing development in which 100 percent of the
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l development project's total units, exclusive of a manager's unit
2 or units, are for lower income households, as defined in Section
3 50079.5,or for moderate-income households,as defined in Section
4 50053. Units in the development shall be offered at an affordable
5 housing cost, as defined in Section 50052.5, or at affordable rent,
6 as defined in Section 50053, except that the rent or sales price for
7 a moderate-income unit shall be at least 20 percent below the
8 market rate for a unit of similar size and bedroom count in the
9 same neighborhood in the city,county,or city and county in which
10 the housing development is located.The developer of the workroree
11 housing shall provide the local government with evidence to
12 establish that the units meet the requirements of this subdivision.
13 All units, exclusive of any manager's unit or units, shall be
14 restricted as provided in this subdivision for at least the following
15 periods of time:
16 (A) Fifty-five years for units that are rented. However, the local
17 government may require that the rental units in the housing
18 development project be restricted to lower income households for
19 a longer period of time if that restriction is consistent with all
20 applicable regulatory requirements for state assistance.
21 (B) Forty-five years for units that are owner occupied. However,
22 the local government may require that owner-occupied units in
23 the housing development project be restricted to lower income
24 households for a longer period of time if that restriction is
25 consistent with all applicable regulatory requirements for state
26 assistance.
27 50495.2. Upon appropriation by the Legislature in the annual
28 Budget Act or other statute, the department shall administer a
29 program to provide incentives in the form of grants allocated in
30 accordance with this chapter to local governments that rezone idle
31 sites used for a big box retailer or a commercial shopping center
32 to instead allow the development of....._k.r__.__ housing housing,
33 cis defined in subdivision (k) o 'Scetion 50495.
34 50495.4. In order to be eligible for a grant under this chapter,
35 a local government shall do all of the following:
36 (a) Rezone one or more idle sites used for a big box retailer or
37 commercial shopping center to allow worktoree hour n housing,
38 as defined in subdivision (k) of Section 50495, as a use by right.
39 (b) Approve and issue a certificate ofoccupancy for a workftmY
40 housing housing, cis defined in subcivision (k) of.Section 50495,
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1 development on each site rezoned pursuant to subdivision (a) for
2 which the local government seeks an incentive pursuant to this
3 chapter.
4 (c) Impose the requirements described in Sections 50495.5 and
5 50495.5.1 on all applicants.
6 (d) Apply to the department for an allocation ofgrant funds and
7 provide documentation that it has complied with the requirements
8 of this section.
9 50495.5. For purposes of subdivision (c) of Section 50495.4,
10 a local government shall impose all of the following requirements
1 1 on all applicants:
12 (a) (I) For an applicant that is a public agency, the applicant
13 shall not prequalify or shortlist, or award a contract to, an entity
14 for the performance of any portion of the wofkForee hattsing,
15 housing, as defined in subdivision (k) of Section 50495,
16 development project unless the entity provides an enforceable
17 commitment to the applicant that the entity and its subcontractors
18 at every tier will use a skilled and trained workforce to perform
19 all work on the project or contract that falls within an
20 apprenticeable occupation in the building and construction trades.
21 (2) paragraph (1) does not apply if any of the following
22 requirements are met:
23 (A) The public agency applicant has entered into a project labor
24 agreement that will bind all contractors and subcontractors
25 performing work on the project or contract to use a skilled and
26 trained workforce,and the entity agrees to be bound by that project
27 labor agreement.
28 (B) The project or contract is being performed under the
29 extension or renewal of a project labor agreement that was entered
30 into by the public agency applicant before January 1, 202 1. 2023,
31 (C) The entity has entered into a project labor agreement that
32 will bind the entity and all of its subcontractors at every tier
33 performing the project or contract to use a skilled and trained
34 workforce.
35 (b) For an applicant that is a private entity, the applicant shall
36 do both of the following:
37 (I) Demonstrate to the local government that either of the
38 following is true:
39 (A) The entirety of th housing, as defined
40 in subdivision (k) ofScction 50495, development project is a public
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1 work for purposes of Chapter I (commencing with Section 1720)
2 of Part 7 of Division 2 of the Labor Code.
3 (B) If the project is not in its entirety a public work, all
4 construction workers employed in the execution of the project will
5 be paid at least the general prevailing rate of per diem wages for
6 the type of work and geographic area,as determined by the Director
7 of Industrial Relations pursuant to Sections 1773 and 1773.9 of
8 the Labor Code, except that apprentices registered in programs
9 approved by the Chief of the Division of Apprenticeship Standards
10 may be paid at least the applicable apprentice prevailing rate.
11 (2) Demonstrate to the local government that a skilled and
12 trained workforce will be used to perform all constriction work
13 on the project.
14 50495.5.1. (a) If a workft5ree houstttg housing, as clefned in
15 suhdivision (k) of Section 50495, development project is subject
16 to subparagraph (13)of paragraph(I)of subdivision (b)of Section
17 50495.5, then, for those portions of the project that are not a public
18 work, all of the following shall apply:
19 (I) The private entity applicant shall ensure that the prevailing
20 wage requirement is included in all contracts for the performance
21 of the work on the project.
22 (2) All contractors and subcontractors shall pay to all
23 construction workers employed in the execution of the work at
24 least the general prevailing rate of per diem wages, except that
25 apprentices registered in programs approved by the Chief of the
26 Division of Apprenticeship Standards may be paid at least the
27 applicable apprentice prevailing rate.
28 (3) (A) Gxccpt as provided in subparagraph (C),all contractors
29 and subcontractors shall maintain and verify payroll records
30 pursuant to Section 1776 of the Labor Code and make those records
31 available for inspection and copying as provided by that section.
32 (B) Except as provided in subparagraph (C), the obligation of'
33 the contractors and subcontractors to pay prevailing wages may
34 be enforced by the Labor Commissioner through the issuance of
35 a civil wage and penalty assessment pursuant to Section 1741 of
36 the Labor Code, which may be reviewed pursuant to Section 1742
37 of the Labor Code, within 18 months after the completion of the
38 project, by an underpaid worker through an administrative
39 complaint or civil action, or by a joint labor-management
40 committee through a civil action under Section 1771.2 ofthe Labor
9s
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1 Code. If a civil wage and penalty assessment is issued, the
2 contractor, subcontractor, and surety on a bond or bonds issued to
3 secure the payment of wages covered by the assessment shall be
4 liable for liquidated damages pursuant to Section 1742.1 of the
5 Labor Code.
6 (C) Subparagraphs (A) and (B) do not apply if all contractors
7 and subcontractors performing work on the project are subject to
8 a project labor agreement that requires the payment of prevailing
9 wages to all construction workers employed in the execution of
10 the project and provides for enforcement of that obligation through
II an arbitration procedure.
12 (4) Notwithstanding subdivision (c) of Section 1773.1 of the
13 Labor Code, the requirement that employer payments not reduce
14 the obligation to pay the hourly straight time or overtime wages
15 found to be prevailing shall not apply if otherwise provided in a
16 bona fide collective bargaining agreement covering the worker.
17 The requirement to pay at least the general prevailing rate of per
18 diem wages does not preclude use of an alternative workweek
19 schedule adopted pursuant to Section 511 or 514 of the Labor
20 Code.
21 (b) An applicant that is a private entity subject to paragraph (2)
22 of subdivision (b)of Section 50495.5 shall comply with all of the
23 following requirements for the t+o-kforee hottsing housing, as
24 defined in subdivision (k) ofSecuon 50495, development project:
25 (1) The private entity applicant shall require in all contracts for
26 the performance of work that every contractor and subcontractor
27 at every tier will individually use a skilled and trained workforce
28 to complete the project.
29 (2) Every contractor and subcontractor shall use a skilled and
30 trained workforce to complete the project.
31 (3) (A) Except as provided in subparagraph (B), the private
32 entity applicant shall provide to the local government,on a monthly
33 basis while the project or contract is being performed, a report
34 demonstrating compliance with Chapter 2.9 (commencing with
35 Section 2600) of Part I of Division 2 of the Public Contract Code.
36 A monthly report provided to the local government pursuant to
37 this clause shall be a public record under the California Public
38 Records Act (Chapter 3.5 (commencing with Section 6250) of
39 Division 7 of Title 1 of the Government Code) and shall be open
40 to public inspection.A private entity applicant that fails to provide
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SB 15 —8-
1 a monthly report demonstrating compliance with Chapter 2.9
2 (commencing with Section 2600) of Part I of Division 2 of the
3 Public Contract Code shall be subject to a civil penalty of tcn
4 thousand dollars (S 10,000) per month for each month for which
5 the report has not been provided. Any contractor or subcontractor
6 that fails to use a skilled and trained workforce shall be subject to
7 a civil penalty of two hundred dollars (5200) per day for each
8 worker employed in contravention of the skilled and trained
9 workforce requirement. Penalties may be assessed by the Labor
10 Commissioner within 18 months ofcompletion of the project using
11 the same procedures for issuance of civil wage and penalty
12 assessments pursuant to Section 1741 of the Labor Code,and may
13 be reviewed pursuant to the same procedures in Section 1742 of'
14 the Labor Code. Penalties shall be paid to the State Public Works
15 Enforcement Fund.
16 (B) Subparagraph (A) does not apply if all contractors and
17 subcontractors performing work on the project are subject to a
18 project labor agreement that requires compliance with the skilled
19 and trained workforce requirement and provides for enforcement
20 of that obligation through an arbitration procedure.
21 50495.6. (a) Upon appropriation by the Legislature in the
22 annual Budget Act or other statute for purposes of this chapter,
23 the department shall allocate a grant to each local govemment that
24 meets the criteria specified in Section 50495.4 in an amount
25 determined pursuant to subdivision (b). For each calendar year in
26 which funds are made available for purposes of this chapter, the
27 department shall issue a NOFA for the distribution of funds to a
28 local government during the 12-nmonth period subsequent to the
29 NOFA. The department shall accept applications from applicants
30 at the end of the 12-nmonth period.
31 (b) The amount of grant provided to each eligible local
32 goverment shall be as follows:
33 (1) Subject to paragraphs (2) and (3), the amount of the grant
34 shall be equal to seven times the average amount of annual sales
35 and use tax revenue generated by each idle site identified in the
36 local government's application that meets the criteria specified in
37 subdivisions (a) and (b) of Section 50495.4 over the seven years
38 immediately preceding the date of the local government's
39 application.
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1 (2) For any idle big box retailer or commercial shopping center
2 site rezoned by a local government in accordance with subdivision
3 (a) of Section 50495.4 to allow mixed uses, the amount of grant
4 pursuant to paragraph (1) shall be reduced in proportion to the
5 percentage of the square footage of the development that is used
6 for a use other than . housing, as defined in
7 subdivision (A) of Section 50495.
8 (3) If for any NOFA the amount of funds made available for
9 purposes of this chapter is insufficient to provide each eligible
10 local government with the full amount specified in paragraphs(1)
I I and (2), based on the number of applications received, the
12 department shall reduce the amount of grant funds awarded to each
13 eligible local government proportionally.
14 (c) The department shall allocate the amount determined
15 pursuant to subdivision (b) to each eligible local government in
16 one lump-sum following the date of the local government's
17 application.
18 50495.8. Upon appropriation by the Legislature in the annual
19 Budget Act or other statute, the department may review, adopt,
20 amend, and repeal guidelines to implement uniform standards or
21 criteria that supplement or clarify the terns,references,or standards
22 set forth in this chapter. Any guidelines or terms adopted pursuant
23 to this chapter shall not be subject to Chapter 3.5 (commencing
24 with Section 11340) of Part I of Division 3 of Title 2 of the
25 Government Code.
26 50495.9. This chapter shall be operative on and after January
27 1, 2023.
O
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AMENDED IN SENATE APRIL 12, 2021
SENATE BILL No. 478
Introduced by Senator Wiener
February 17, 2021
An act to amend Section 65585 of, and to add Section 65913.11 to,
the Government Code, relating to housing.
LEGISLKI IVE COUNSEL'S DIGEST
SIB 478, as amended, Wiener. Planning and Zoning Law: housing
development projects.
The Planning and Zoning Law requires a city or county to adopt a
general plan for land use development within its boundaries that
includes, among other things, a housing element. The law also requires
the Department of Housing and Community Development to notify the
City,county, or city and county, and authorizes the department to notify
the Attorney General, that the city, county, or city and county is in
violation of state law if the department finds that the housing clement
or an amendment to that clement, or any specified action or failure to
act,does not substantially comply with the law as it pertains to housing
elements or that any local government has taken an action in violation
of certain housing laws.
This bill would prohibit a local agency, as defined, from itttpesirtg
10, tin ts.from imposing a floor-to-area ratio stunclarcl that is less that?
1.0 on a housing cleveloptnent project that consists of 3 10 7 units, at-
less than 1.25 on a housing development project that consists of 8 to
98
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SB 478 —2—
10 units. The bill would prohibit a local agency from imposing a lot
coverage requirement that would preclude a housing development
project Born achieving the floor-to-area ratios described above. The
bill would prohibit a local agency from deriving a housing development
project located on an existing legal parcel solely on the basis that the
lot area of the proposed lot doer not meet the local agency's'
requirements far rninimum lot size. The bill would on1v applv to housing
cleveloprnertt pry jecty that meet specified requirennerhts, including, among
other things, that the project be located in a multifamily residential
zone at- a mixed-use zone, as specified The bill would additionally
require the department to identify violations by a local government of
these provisions, as described above.
The bill would include findings that changes proposed by this bill
address a matter of statewide concern rather than a municipal ajjair
and, therefore, apply to all cities, including charter-cities.
Vote: majority. Appropriation: no. Fiscal committee: yes.
Statc-mandated local program: no.
The people of the Slaw of California do enact as folloxzv:
I SFGTI(4?4 1r—The ccggrslxttire-find3-aflel-deeilares-all t4 Ote
RilltnvinS-
3 . .
41.
5 Elie laek oF proper planning at the loettl level for the app j
6
7 (b) it is Rie intent of the Legislature to ensttre proper pla
8 oeettrs at the loeal level bN requiring the Department 4
9
10 .
II below a speeified percentage 4 their regional housing mieed-i
12
13
elements as neeessafy-
14 SR
15 SECTION 1. Section 65585 of the Government Code is
16 amended to read:
17 65585. (a) In the preparation of its housing element, each city
18 and county shall consider the guidelines adopted by the department
19 pursuant to Section 50459 of the Health and Safety Code. Those
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1 guidelines shall be advisory to each city or county in the
2 preparation of its housing element.
3 (b) (1) At least 90 days prior to adoption of its housing element,
4 or at least 60 days prior to the adoption of an amendment to this
5 element, the planning agency shall submit a draft element or draft
6 amendment to the department.
7 (2) The planning agency staff shall collect and compile the
8 public comments regarding the housing element received by the
9 city, county, or city and county, and provide these comments to
10 each member of the legislative body before it adopts the housing
11 element.
12 (3) The department shall review the draft and report its written
13 findings to the planning agency within 90 days of its receipt of the
14 draft in the case of an adoption or within 60 days of its receipt in
15 the case of a draft amendment.
16 (c) In the preparation of its findings,the department may consult
17 with any public agency, group, or person. The department shall
18 receive and consider any written comments from any public
19 agency, group, or person regarding the draft or adopted element
20 or amendment under review.
21 (d) In its written findings, the department shall determine
22 whether the draft element or draft amendment substantially
23 complies with this article.
24 (c) Prior to the adoption of its draft element or draft amendment,
25 the legislative body shall consider the findings made by the
26 department. If the department's findings are not available within
27 the time limits set by this section, the legislative body may act
28 without them.
29 (f) If the department finds that the draft element or draft
30 amendment does not substantially comply with this article, the
31 legislative body shall take one of the following actions:
32 (1) Change the draltelement or draft amendment to substantially
33 comply with this article.
34 (2) Adopt the draft element or draft amendment without changes.
35 The legislative body shall include in its resolution of adoption
36 written findings which explain the reasons the legislative body
37 believes that the draft element or draft amendment substantially
38 complies with this article despite the findings of the department.
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SB 478 —4-
1 (g) Promptly following the adoption of its clement or
2 amendment, the planning agency shall submit a copy to the
3 department.
4 (h) The department shall, within 90 days, review adopted
5 housing elements or amendments and report its findings to the
6 planning agency.
7 (i) (1) (A) The department shall review any action or failure
8 to act by the city, county, or city and county that it determines is
9 inconsistent with an adopted housing clement or Section 65583,
10 including any failure to implement any program actions included
I I in the housing clement pursuant to Section 65583.The department
12 shall issue written findings to the city, county, or city and county
13 as to whether the action or failure to act substantially complies
14 with this article, and provide a reasonable time no longer than 30
15 days for the city, county, or city and county to respond to the
16 findings before taking any other action authorized by this section,
17 including the action authorized by subparagraph (B).
18 (B) If the department finds that the action or failure to act by
19 the city, county, or city and county does not substantially comply
20 with this article,and if it has issued findings pursuant to this section
21 that an amendment to the housing clement substantially complies
22 with this article, the department may revoke its findings until it
23 determines that the city, county, or city and county has come into
24 compliance with this article.
25 (2) The department may consult with any local government,
26 public agency, group, or person, and shall receive and consider
27 any written comments from any public agency, group, or person,
28 regarding the action or failure to act by the city, county, or city
29 and county described in paragraph(I), in determining whether the
30 housing clement substantially complies with this article.
31 Q) The department shall notify the city, county, or city and
32 county and may notify the office of the Attorney General that the
33 city, county, or city and county is in violation of state law if the
34 department finds that the housing element or an amendment to this
35 element, or any action or failure to act described in subdivision
36 (i),does not substantially comply with this article or that any local
37 government has taken an action in violation of the following:
38 (1) Housing Accountability Act (Section 65589.5).
39 (2) Section 65863.
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1 (3) Chapter 4.3 (commencing with Section 65915) of Division
2 1 of Titic 7.
3 (4) Section 65008.
4 (5) Section 65913.11.
5 (k) Commencing July I, 2019, prior to the Attorney General
6 bringing any suit for a violation of the provisions identified in
7 subdivision 0)related to housing clement compliance and seeking
8 remedies available pursuant to this subdivision, the department
9 shall offer the jurisdiction the opportunity for two meetings in
10 person or via telephone to discuss the violation, and shall provide
11 the jurisdiction written findings regarding the violation. This
12 paragraph does not affect any action filed prior to the effective
13 date of this section. The requirements set forth in this subdivision
14 do not apply to any suits brought for a violation or violations of
15 paragraphs (I), (3), and (4) of subdivision 0).
16 (n In any action or special proceeding brought by the Attorney
17 General relating to housing clement compliance pursuant to a
18 notice or referral under subdivision 0), the Attorney General may
19 request, upon a finding of the court that the housing clement does
20 not substantially comply with the requirements of this article
21 pursuant to this section, that the court issue an order or judgment
22 directing the jurisdiction to bring its housing clement into
23 substantial compliance with the requirements of this article. The
24 court shall retain jurisdiction to ensure that its order orjudgmcnt
25 is carried out. If a court determines that the housing clement of
26 the jurisdiction substantially complies with this article, it shall
27 have the same force and effect, for purposes of eligibility for any
28 financial assistance that requires a housing clement in substantial
29 compliance and for purposes of any incentives provided under
30 Section 65589.9, as a determination by the department that the
31 housing clement substantially complies with this article.
32 (1) If the jurisdiction has not complied with the order or
33 judgment after twelve months, the court shall conduct a status
34 conference. Following the status conference,upon a dctennination
35 that the jurisdiction failed to comply with the order or judgment
36 compelling substantial compliance with the requirements of this
37 article,the court shall impose fines on thcjurisdiction,which shall
38 be deposited into the Building Homes and Jobs Trust Fund. Any
39 fine levied pursuant to this paragraph shall be in a minimum
40 amount often thousand dollars (S 10,000) per month, but shall not
9s
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SB 478 —6-
1 exceed one hundred thousand dollars(S 100,000)per month,except
2 as provided in paragraphs (2) and (3). In the event that the
3 jurisdiction fails to pay fines imposed by the court in full and on
4 time,the court may require the Controller to intercept any available
5 state and local funds and direct such funds to the Building Homes
6 and Jobs Trust Fund to correct the jurisdiction's failure to pay.
7 The intercept of the funds by the Controller for this purpose shall
8 not violate any provision of the California Constitution.
9 (2) if the jurisdiction has not complied with the order or
10 judgment after three months following the imposition of fees
11 described in paragraph (1), the court shall conduct a status
12 conference. Following the status conference, if the court finds that
13 the fees imposed pursuant to paragraph (I)are insufficient to bring
14 the jurisdiction into compliance with the order or judgment, the
15 court may multiply the fine determined pursuant to paragraph (1)
16 by a factor of three. In the event that the jurisdiction fails to pay
17 fines imposed by the court in full and on time, the court may
18 require the Controller to intercept any available state and local
19 funds and direct such funds to the Building Homes and Jobs Trust
20 Fund to correct the jurisdiction's failure to pay. The intercept of
21 the funds by the Controller for this purpose shall not violate any
22 provision of the California Constitution.
23 (3) If the jurisdiction has not complied with the order or
24 judgment six months following the imposition of fees described
25 in paragraph(I), the court shall conduct a status conference. Upon
26 a determination that thcjurisdiction failed to comply with the order
27 orjudgment, the court may impose the following:
28 (A) If the court finds that the fees imposed pursuant to
29 paragraphs(I)and(2) are insufficient to bring thcjurisdiction into
30 compliance with the order or judgment, the court may multiply
31 the fine determined pursuant to paragraph (I) by a factor of six.
32 In the event that the jurisdiction fails to pay fines imposed by the
33 court in full and on time, the court may require the Controller to
34 intercept any available state and local funds and direct such funds
35 to the Building Homes and Jobs Trust Fund to correct the
36 jurisdiction's failure to pay. The intercept of the funds by the
37 Controller for this purpose shall not violate any provision of the
38 California Constitution.
39 (B) The court may order remedies available pursuant to Section
40 564 of the Code of Civil Procedure, under which the agent of the
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—7— SB 478
1 court may take all governmental actions necessary to bring the
2 jurisdiction's housing element into substantial compliance pursuant
3 to this article in order to remedy identified deficiencies.The court
4 shall determine whether the housing clement of the jurisdiction
5 substantially complies with this article and, once the court makes
6 that determination, it shall have the same force and effect, for all
7 purposes, as the department's determination that the housing
8 clement substantially complies with this article.An agent appointed
9 pursuant to this paragraph shall have expertise in planning in
10 California.
11 (4) This subdivision does not limit a court's discretion to apply
12 any and all remedies in an action or special proceeding for a
13 violation of any law identified in subdivision 6).
14 (m) In determining the application of' the remedies available
15 under subdivision (0, the court shall consider whether there are
16 any mitigating circumstances delaying thejurisdiction from coming
17 into compliance with state housing law. The court may consider
18 whether a city, county, or city and county is making a good faith
19 effort to come into substantial compliance or is facing substantial
20 undue hardships.
21 (n) The office of the Attorney General may seek all remedies
22 available under law including those set forth in this section.
23 SPG. 3
24 SEC. 2. Section 65913.11 is added to the Government Code,
25 to read:
26 65913.11. (a) With respect to a housing development project
27 _ oF at least two, but not more than 10, units, !ha! O7C'C'!5
28 the reyuiremews of subdivision (b), a local agency shall not do
29 any of the following:
30 1) (A) 1 iipose a floor to arett ratio standard that is lesi than
31 +:5-
32
33 agene�'s ability to impose building height standards it deemns
34 ..
35 _
36
37 fear, units.
38 (;) I iipose t& minimum let size 9tandeft! that exceeds
39 —
40 10,uniti.
98
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SB478 —8—
l (1) For a housing development project consisting of three to
2 seven units, impose a floor-to-area ratio standard that is less than
3 1.0.
4 (2) For a housing development project consisting of S to 10
5 units, impose a floor-to-area ratio standard that Is less than 1.25.
6 (3) Dent,a housing development project located on can existing
7 legal parcel solely on the basis that the lot area of the proposed
8 lot does not meet the local agencv's requirements for minimum
9 lot size.
10 (b) To be eligible for the provisions in subdivision(a), a housing
11 development project shall meet all of the following conditions:
12 (1) The project cor7sists ofat least 3, bra not more them 10, units.
13 (2) The project is located in a muhifcamily residential zone or
14 a mixed-use zone, as designated by the local agency. and is not
15 located in either of the following:
16 (A) 1i�ithui as sinhgle fan7ily zanne.
17 (B) Within a historic district or property included on the State
18 Historic Resources Inventor', as defined in .Section 5020 1 of the
19 Public Resources Code, or within a site that is designated or listed
20 as a city or count- ianchnark or historic property or district
21 pursuant to a city or county ordinance.
22 (3) The project is located on a legal parcel or parcels located
23 in a city if, and only if, the city boundaries include some portion
24 of either an urbanized area or urban cluster: as designated by the
25 United States Census Bureau, or;for unincorporated nren.c, a legal
26 parcel or parcels whol/v within the boundaries of an urbanizes!
27 area or urban cluster, as designated by the United States Censers
28 Bureau.
29 (c) (1) This section shall not be construed to prohibit a locai
30 agency from imposing ant,zoning or design standards, including,
31 but not limited to, building height and setbacks, on a housing
32 development project that meets the requirements of subdivision
33 (b), other than zoning or design standards that establish
34 floor-to-area ratios or lot size requirements that expressly conflict
35 with the standards in subdivision (a).
36 (2) Notwithstanding paragraph (1), a local agency may not
37 impose a lot coverage requirement that would preclude a houshng
38 development project that meets the requirements established in
39 subdivision (b)from achieving the floor-to-area ratio allowed in
40 subdivision (a).
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I (b)
2 (d) As used in this section:
3 (1) "Housing development project' means a housing
4 development project as defined in paragraph(2)of subdivision(h)
5 of Section 65589.5.
6 (2) "Local agency" means a county, city, or city and county,
7 including a charter city, or city and county.
8 (3) "Unit' means a unit of housing, ineludin but shall not
9 include an accessory dwelling unit or ajunior accessory dwelling
10 unit.
11
12 dwelling unit, tt junioi tteeesso-y dwelling tinii, or any ether
13 additional tink to an existing unit shall be eonsidered at lenit a
14
15 the eximing and proposed homes.
16 SEC. 3. The Lcgislatza-e finds cind declares drat missing»7idcUe
17 housing is naturally affordable, and therefore, the development of
18 nnhsi ng mOclle housing is a matter of statelvicle concern and is
19 not a nn7u7icipal affair cis that tern is used in Section 5 of Ai-ticle
20 Xl of the California Constitution. Therefore, Section 1 of this act
21 amending Section 65585 of, and Section 2 of this act adding Section
22 65913.11 to, the Government Coale apply to all cities, including
23 charter cities.
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AMENDED IN ASSEMBLY APRIL 19, 2021
AMENDED IN ASSEMBLY APRIL 6, 2021
AMENDED IN ASSEMBLY MARCH 18, 2021
CALIFORNIA LEGISI.Al'URE-2021-22 REGULAR SESSION
ASSEMBLY BILL No. 602
Introduced by Assembly Member Grayson
February 111 2021
An act to amend Sections 65940.1 and 66019 of, and to add Section
65940.2 to, the Government Code, and to add Section 50466.5 to the
Icalth and Safety Code, relating to land use.
LEGISLATIVE COUNSEL'S DIGEST
AB 602, as amended, Grayson. Development fees: impact fee nexus
study.
(1) Existing law, the Permit Streamlining Act, which is part of the
Planning and Zoning Law, requires each public agency to provide a
development project applicant with a list that specifics the information
that will be required from any applicant for a development project. The
Mitigation Fee Act requires a local agency that establishes, increases.
or imposes a fee as a condition of approval of a development project
to, among other things, determine a reasonable relationship between
the fee's use and the type of development project on which the fee is
imposed. Existing law requires a city, county, or special district that
has an intcmet wcbsitc to make available on its internet wcbsitc certain
information, as applicable, including its current schedule of fees and
exactions.
This bill, among other things, would require, on and after January 1,
2022,a city,county, or special district that conducts an impact fee nexus
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AB 602 —2—
study to follow specific standards and practices, including, but not
limited to, (1) that prior to the adoption of an associated development
fee or exaction, an impact fee nexus study be adopted, (2)that the study
identify the existing level of service for each public facility, identify
the proposed new level of service, and include an explanation of why
the new level of service is necessary, and (3) if the study is adopted
after July I, 2022, either calculate a fee levied or imposed on a housing
development project proportionately to the square footage of the
proposed units, or make specified findings explaining why square
footage is not an appropriate metric to calculate the fees.The bill would
also require a city, county, or special district to post a written fee
schedule or a link directly to the written fee schedule on its internet
websitc. The bill would require a city a?- county to request the total
amount of f es and eractions associated with a project upon the issuance
ofa certificate ofoccupancy, and to post this information on its internet
website, as specified. By requiring a city or county to include certain
information in, and follow certain standards with regard to, its impact
fee nexus studies and to include certain information on its internet
websitc, the bill would impose a state-mandated local program.
(2) Existing law requires the Department of Housing and Community
Development to develop specifications for the structure, functions, and
organization of a housing and community development information
system for this state. Existing law requires the system to include
statistical, demographic,and community development data that will be
of assistance to local public entities in the planning and implementation
of housing and community development programs.
This bill would require the department, on or before January 1, 2024,
to create an impact fee nexus study template that may be used by local
jurisdictions.The bill would require that the template include a method
of calculating the feasibility of housing being built with a given fee
level.
hotising development prqjeet. Fxisting law for these
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This bill "ould !emo%e eonsime6en exeise taxes and speeial taxes
(4)
(3) The Mitigation Fee Act requires notice of the time and place of
a meeting regarding any fee, that includes a general explanation of the
matter to be considered, be mailed at least 14 days before the first
meeting to an interested party who files a written request with the city
or county for mailed notice of a meeting on a new or increased fee.
This bill would authorize any member of the public, including an
applicant for a development project, to submit evidence that the city,
county, or other local agency has failed to comply with the Mitigation
Fee Act.The bill would require the legislative body of the city, county,
or other local agency to consider any timely submitted evidence and
authorize the legislative body to change or adjust the proposed fee or
fee increase, as specified.
(4) The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act
for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of Califonzia clo enact as follows:
I SECTION 1. Section 65940.1 of the Government Code is
2 amended to read:
3 65940.1. (a) (I) A city, county, or special district that has an
4 internet website shall make all of the following available on its
5 internet website, as applicable:
6 (A) (i) A current schedule of fees, exactions, and affordability
7 requirements imposed by that city, county, or special district.
8 including any dependent special districts, as defined in Section
9 56032.5, of the city or county applicable to a proposed housing
10 development project.
I I (ii) The city, county, or special district shall present the
12 information described in clause (i) in a manner that clearly
13 identifies the fees, exactions, and affordability requirements that
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AB 602 —4-
1 apply to each parcel and the fees that apply to each new water and
2 sewer utility connection.
3 (iii) The city, county, or special district shall post a written fee
4 schedule or a link directly to the written fee schedule on its internet
5 website.
6 (B) All zoning ordinances and development standards adopted
7 by the city or county presenting the information, which shall
8 specify the zoning, design, and development standards that apply
9 to each parcel.
10 (C) The list required to be compiled pursuant to Section 65940
11 by the city or county presenting the information.
12 (1)) The current and five previous annual fee reports or the
13 current and five previous annual financial reports, that were
14 required pursuant to subdivision (b) of Section 66006 and
15 subdivision (d) of Section 66013.
16 (l ) An archive of impact fee nexus studies, cost of service
17 studies, or equivalent, conducted by that city, county, or special
18 district on or after January I, 2018. For purposes of this
19 subparagraph, "cost of service study" means the data provided to
20 the public pursuant to subdivision (a) of Section 66016.
21 (2) A city,county,or special district shall update the information
22 made available under this subdivision within 30 days of any
23 changes.
24 (3) (A) A city or couniv shall
25 request from a development proponent, upon issuance of a
26 certificate of occupancy, the total amount of' fees and exactions
27 associated with the project for which the certificate was issued.
28 The city or county shall post this
29 information on its internet wcbsitc, and update it at ]cast twice per
30 year.
31 (B) A Ii
M distriet city or county shall not be
32 responsible for the accuracy for the information received and posted
33 pursuant to subparagraph (A). A ,
34 city or county may include a disclaimer regarding the accuracy of
35 the information posted on its interact wcbsitc tinder this paragraph.
36 (b) For purposes of this section:
37 (1) "Affordability requirement' means a requirement imposed
38 as a condition of a development of residential units, that the
39 development include a certain percentage of the units affordable
40 for rent or sale to households with incomes that do not exceed the
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1 limits for moderate-income, lower income, very low income, or
2 extremely low income households specified in Sections 50079.5,
3 50093, 50105, and 50106 of the Health and Safety Code, or an
4 alternative means of compliance with that requirement including,
5 but not limited to, in-lieu fees, land dedication, off-site
6 construction, or acquisition and rehabilitation of existing units.
7 (2) (A) "Exaction" means-both any of the following:
8 (1) A construction e'rcrse tLLv.
9 (1)
10 (ii) A requirement that the housing development project provide
I I public art or an in-lieu payment.
12 H
13 (iii) Dedications of parkland or in-lieu fees imposed pursuant
14 to Section 66477,
15 (A) A special tar levied on new housing units pursuant to the
16 Mello Roos Community Facilities Act (Chapter 2.5 (commencing
17 with Section 53311) ofPart I of Division 2 oJTitle 5).
18 (B) "Exaction' does not include fees or charges pursuant to
19 Section 66013 that are not imposed (i) in connection with issuing
20 or approving a permit for development or (ii) as a condition of
21 approval of a proposed development, as held in Capistrano Beach
22 Water Dist. v. Taj Development Corp. (1999) 72 Cal.App.4th 524.
23 (3) "Fee"means a flee or charge described in the Mitigation Fee
24 Act (Chapter 5 (commencing with Section 66000), Chapter 6
25 (commencing with Section 66010), Chapter 7 (commencing with
26 Section 66012),Chapter 8(commencing with Section 66016),and
27 Chapter 9 (commencing with Section 66020)).
28 (4) "Housing development project' means a use consisting of
29 any of the following:
30 (A) Residential units only.
31 (B) Mixed-use developments consisting of residential and
32 nonresidential uses with at least two-thirds of the square footage
33 designated for residential use.
34 (C) 'transitional housing or supportive housing.
35 (c) This section shall not be construed to alter the existing
36 authority of a city, county, or special district to adopt or impose
37 an exaction or fee.
38 SEC. 2. Section 65940.2 is added to the Government Code, to
39 read:
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AB 602 —6—
1 65940.2. (a) On and after January 1, 2022, a city, county, or
2 special district that conducts an impact fee nexus study shall follow
3 all of the following standards and practices:
4 (1) Prior to the adoption of an associated development fee or
5 excretion,,fee, an impact fee nexus study shall be adopted.
6 (2) When applicable, the nexus study shall identify the existing
7 level of service for each public facility, identify the proposed new
8 level of service, and include an explanation of why the new level
9 of service is appropriate.
10 (3) A nexus study shall include information that supports the
1 1 local agency's actions, as required by subdivision (a) of Section
12 66001.
13 (4) lfa nexus study supports the increase ofan existing fee, the
14 city, county, or special district shall review the assumptions of the
15 nexus study supporting the original fee and evaluate the amount
16 of fees collected under the original fee.
17 (5) (A) A nexus study adopted after July 1, 2022,shall eomply
18
19 (i) i alettime calculate a fee imposed on a housing development
20 project proportionately to the square footage of proposed units of
21 the development. A fee imposed proportionately to the square
22 footage of the proposed units of the development shall be deemed
23 to bear a reasonable relationship between the need for the public
24 facility and the type of'development project on which the fee is
25 imposed.
26 (B) A nexus stuck is not required to comply with subparagraph
27 (A) if the city, couniv, or special district makes a finding that
28 includes all of the following:
29 (id) lnelude tt finding that ineltide4 all of the
30 (-l)
31 (i) An explanation as to why square footage is not appropriate
32 metric to calculate fees imposed on housing development project.
33 (11) Benionsirnte
34 (ii) An explanation that an alternative basis of calculating the
35 fee bears a reasonable relationship between the need for the public
36 facility and the type of development project on which the fee is
37 imposed.
38
39 the publie F�eilit� and !he type oFeletel
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I the fee unless a finding is made pttr�utknt to this
2 snbelause.
3 (HI) Demonstrate that there ar
4 (iii) Thai other policies in the fee structure thttt support smaller
5 developments, or otherwise ensure that smaller developments are
6 not charged disproportionate fees.
7 (B) This paragraph does not prohibit an agency from establishing
8 different fees for different types of developments.
9 (6) A nexus study adopted after July I, 2022, shall consider
10 targeting fees geographically. If the city,county,or special district
I I does not target the fees geographically, it shall adopt a finding
12 explaining why the adoption of geographically specific fees is not
13 appropriate.
14 (7) A—Large jurisdictions shall adopt a capital improvement
15 plan shalladopted as as a part of the
16 that is required to mitigate de%ek)pment
17
18 dollars008 099j nexus Stuck
19 (8) All studies shall be adopted at a public hearing with at least
20 30 days' notice, and the local agency shall notify any member of
21 the public that requests notice of intent to begin an impact fee
22 nexus study of the date of the hearing.
23 (9) Studies shall be updated at least every eight years, from the
24 period beginning on January 1, 2022.
25 (10) The local agency may use the impact fee nexus study
26 template developed by the Department of I lousing and Community
27 Development pursuant to Section 50466.5 of the Health and Safety
28 Codc.
29 (b) This section does not require any study or analysis as a
30 prerequisite to impose any fee or charges pursuant to Section
31 66013.
32 (c) For purposes of this section:
33 (1) "Extteiion"and "Fee" have the same miennings as in Seettioft
34 6594001.
35 (1) "Development fee" .shall have the same meaning as
36 .subdivision (b) of Section 66000.
37 (2) "Large juriscliction" shall have the same meaning as
38 subdivision ((I of Section 53559.1 of the Health and Safety Code.
39 (?j
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AB 602 —8-
1 (3) "Public facility" has the same meaning as defined in
2 subdivision (d) of Section 66000.
3 SEC. 3. Section 66019 of the Government Code is amended
4 to read-
5 66019. (a) As used in this section:
6 (1) "Fee"means a fee as dcfined in Section 66000, but does not
7 include any of the following:
8 (A) A fec authorized pursuant to Section 66013.
9 (B) A fec authorized pursuant to Section 17620 of the Education
10 Code, or Sections 65995.5 and 65995.7.
11 (C) Rates or charges for water, sewer, or electrical services.
12 (D) Fees subject to Section 66016.
13 (2) "Party"means a person, entity,or organization representing
14 a group of people or entities.
15 (3) "Public facility"means a public facility as defined in Section
16 66000.
17 (b) For any fee, notice of the time and place of the meeting,
18 including a general explanation of the matter to be considered, and
19 a statement that the data required by this subdivision is available
20 shall be mailed at least 14 days prior to the first meeting to an
21 interested party who files a written request with the city, county.
22 or city and county for mailed notice of a meeting on a new or
23 increased fee to be enacted by the city, county, or city and county.
24 Any written request for mailed notices shall be valid for one year
25 from the date on which it is filed unless a renewal request is filed.
26 Renewal requests for mailed notices shall be filed on or before
27 April 1 of each year. The legislative body of the city, county, or
28 city and county may establish a reasonable annual charge for
29 sending notices based on the estimated cost of providing the
30 service. The legislative body may send the notice electronically.
31 At least 10 days prior to the meeting, the city, county, or city and
32 county shall make available to the public the data indicating the
33 amount of cost,or the estimated cost,required to provide the public
34 facilities and the revenue sources anticipated to fund those public
35 facilities, including general fund revenues. The new or increased
36 fee shall be effective no earlier than 60 days following the final
37 action on the adoption or increase of the fce,unless the city,county,
38 or city and county follows the procedures set forth in subdivision
39 (b) of Section 66017.
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1 (c) If a city, county, or city and county receives a request for
2 mailed notice pursuant to this section, or a local agency receives
3 a request for mailed notice pursuant to Section 66016, the city,
4 county, or city and county or other local agency may provide the
5 notice via electronic mail for those who specifically request
6 electronic mail notification.A city,county,city or county, or other
7 local agency that provides electronic mail notification pursuant to
8 this subdivision shall send the electronic mail notification to the
9 electronic mail address indicated in the request. The electronic
10 mail notification authorized by this subdivision shall operate as
I I an alternative to the mailed notice required by this section.
12 (d) (1) Any member of the public, including an applicant for a
13 development project, may submit evidence that the city, county,
14 or other local agency's determinations and findings required
15 pursuant to subdivision (a) of Section 66001 arc insufficient or
16 that the local agency otherwise failed to comply with this chapter.
17 Evidence submitted pursuant to this subdivision may include, but
18 is not limited to, information regarding the proposed fee
19 calculation, assumptions, or methodology or the calculation,
20 assumptions, or methodology for an existing fee upon which the
21 proposed fee or fee increase is based.
22 (2) The legislative body of the city,county,or other local agency
23 shall consider any evidence submitted pursuant to paragraph (1)
24 that is timely submitted under this chapter.After consideration of
25 the evidence, the legislative body of the city, county,or other local
26 agency may change or adjust the proposed fee or fee increase if'
27 deemed necessary by the legislative body.
28 SEC. 4. Section 50466.5 is added to the Health and Safety
29 Code, to read:
30 50466.5. (a) On or before January 1, 2024, the department
31 shall create an impact fee nexus study template that may be used
32 by local jurisdictions. The template shall include a method of
33 calculating the feasibility of housing being built with a given fee
34 level.
35 (b) The department may contract with nonprofit or academic
36 institutions to complete the template.
37 SEC. 5. No reimbursement is required by this act pursuant to
38 Section 6 of Article XI11 B of the California Constitution because
39 a local agency or school district has the authority to levy service
40 charges, fees, or assessments sufficient to pay for the program or
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AB 602 — 10—
I level of service mandated by this act,within the meaning of Section
2 17556 of the Government Code.
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AMENDED IN SENATE APRIL 13, 2021
AMENDED IN SENATE MARCH 9, 2021
SENATE BILL No. 612
Introduced by Senator Portantino
(Coauthors: Senators Allen, Becker, Linuin, McGuire,Stern, and
Wiener)
(Coauthors: Assembly Members Bauer-Kahan, Berman, Bloom,
Boomer Horvath, Chiu, Kalra, Lee, Levine, Mullin, MuratSUChi,
Robert Rivas, Stone,Ting, and Wood)
February 18, 2021
An act t add Section 366.4-ter to the
Public Utilities Code, relating to electricity.
LEGISLATIVE COUNSEL'S UIGES'1'
SB 612, as amended, Portantino. Electrical corporations and other
load-serving entities: allocation of legacy resources.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including electrical corporations. Existing
law authorizes the commission to fix the rates and charges for every
public utility and requires that those rates and charges be just and
reasonable.
Existing law requires the commission to authorize and facilitate direct
transactions between electric service providers and retail end-use
customers, but suspends direct transactions except as expressly
authorized. Existing law expressly requires the commission to authorize
direct transactions for nonresidential end-usc customers, subject to an
annual maximum allowable total kilowatthour limit established, as
specified, for each electrical corporation, to be achieved following a
now-completed 3-to-5-year phase-in period. Existing law requires the
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SB 612 —2—
commission, on or before June I, 2019, to issue an order specifying,
among other things, an increase in the annual maximum allowable total
kilowatthour limit by 4,000 gigawatthours and to apportion that increase
among the service territories of the electrical corporations. Existing law
requires the commission, by June 1, 2020, to provide the Legislature
with recommendations on the adoption and implementation of a 2nd
direct transactions reopening schedule and requires that the commission
make specified findings with respect to those recommendations,
including that the recommendations do not cause undue shifting ofcosts
to bundled service customers of an electrical corporation or to direct
transaction customers.
Existing law authorizes a community choice aggregator to aggregate
the electrical load of interested electricity consumers within its
boundaries and requires a community choice aggregator to file an
implementation plan with the Publie ' `' ' `es Commission commission
in order for the commission to determine a cost-recovery mechanism
to be imposed on the community choice aggregator to prevent a shifting
of costs to an electrical corporation's bundled customers. Existing law
requires that the bundled retail customers of an electrical corporation
not experience any cost increase as a result of the implementation of a
community choice aggregator program and requires the commission to
ensure that the departing load does not experience any cost increases
as a result of an allocation of costs that were not incurred on behalf of
the departing load.
Pursuant to existing law, the commission has adopted decisions and
orders imposing certain costs on customers of an electrical corporation
that depart from receiving bundled electrical service from an electrical
corporation to instead receive electric service from an electric service
provider or a community choice aggregator.
This bill would require an electrical corporation,by July 1, 2022,and
, not
less than once every 3 years thereafter, to offer an allocation of each
product, as defined, arising from legacy resources, as defined, to its
bundled customers and to other load-serving entities,defined to include
electric service providers and community choice aggregators, serving
departing lead departing load customers, as defined, who bear cost
responsibility for those resources. The bill would authorize a
load-serving entity within the service territory of the electrical
corporation to elect to receive all or a portion of the vintaged
proportional share of products allocated to its cnd-use customers and,
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if so, require it to pay to the electrical corporation the
conunission-established market price benchmark for the vintage
proportional share of products received. The bill would require that an
electrical corporation offer-aay the products allocated tom lead
departing load customers that a load-serving entity declines to elect to
receive in the wholesale market in an anntial sulteita through regular
solicitations and require that all revenues received through the annual
sellieitn6on these solicitations be credited toward reducing any
nonbypassablc charge For
,:_._:buti__ ettst__-_- the leetrg._..,
corporation.paid by bundled and departing load customers to recover
the costs of legacy resources. The bill would require the commission
to recognize and account for the value of all products in the electrical
corporation's legacy resource portfolio in determining anythe
nonbypassablc charge to be paid by depart mg load ettstorners. bundled
and departing load customers to recover the costs of lcgacv resources.
se are reasonably resolved.
ettuse4 FNisting law requires that an approved preettrement plan eliminate
renittining life of the contntei and that ig reeevered From botli bundled
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SB 612 —4—
wottlel require the commission it) detemiine amittal proceeding
for review of eantritet administration, if the eleetriett! eorpomtia i's
jr neehons response it)the request fi�r off�Fs were reasonab4e
a ld in file interest OF bundled and departing load ettstofflent.
Under existing law,a violation ofthe Public Utilities Act or any order,
decision, rule, direction, demand, or requirement of the commission is
a crime.
Because the provisions of this bill would be a part of the act and
because a violation of an order or dee sion ef th- a commission action
implementing its requirements would be a crime, the bill would impose
a state-mandated local .program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act
for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as f!!ales:
1 SECTION 1. Section 366.4 is added to the Public Utilities
2 Code, to read:
3 366.4. (a) For purposes of this section, the following terms
4 definitions apply:
5 (1) "Departing load Load customer" means a
6 customer of an electrical corporation that departs from receiving
7 electric service from an electrical corporation to instead receive
8 electric service from another load-serving entity.
9 (2) "Legacy resource" means any generation resource or
10 agreement to purchase electricity for delivery to end-use customers
I I in California that was procured by an electrical corporation solely
12 on behalfofthe electrical corporation's end-use customers it served
13 at the time of procurement and that is eligible for recovery to
l4 prevent cost shifting among the customers of load-serving entities.
15 (3) "Load-serving entity" has the same meaning as defined in
16 Section 380.
17 (4) "Product" means electrical resources procured to meet the
18 resource adequacy rcquircmcnts of Section 380,electrical resources
19 procured to meet the requirements of the California Renewables
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1 Portfolio Standard Program (Article 16(commencing with Section
2 399.11)), electrical resources that do not emit greenhouse gases,
3 and any new generating attributes identified after January I, 2021,
4 that have regulatory compliance or other identified market value.
5 (5) "Vintage" means the cost responsibility allocated by the
6 commission, for purposes of legacy resource cost responsibility,
7 to departing lent departing load customers,which the commission
8 allocates to those—deparing-feed departing load customers
9 corresponding to the year the customer departs from receiving
10 electric service from the electrical corporation.
11 (b) (1) By July I, 2022, and by eaeh 4tdy 1 not less than once
12 every three years thereafter, the commission shalt require an
13 electrical corporation t ,
14 offer an allocation of each product arising from legacy resources
15 to its bundled customers and to other load-serving entities serving
16 departing load departing load customers who bear cost
17 responsibility for those resources.
18 (2) The electrical corporation shall offer this allocation in an
19 amount up to each customer's proportional share of legacy
20 resources in the customer's vintage, as determined by the
21 commission.
22 (3) The electrical corporation shall offer the products for a term
23 and in a manner that maximizes the value of the legacy-researees-
24 resources and promotes stable long-term resource and reliability
25 planning.
26 (c) (1) A load-serving entity within the service territory of the
27 electrical corporation may elect to receive all or a portion of the
28 vintaged proportional share of products allocated to its cnd-use
29 customers and shall pay to the electrical corporation the
30 commission-established market price benchmark for the vintage
31 proportional share of products received.
32 (2) The electrical corporation shall offer
33 departing load etistomers within its ser%tee territet�- the
34 saine long term renewable portfolio standnrd valtie tivailable to
35 an allocation ofeligible renewable
36 pertfefie standard energy resources with a remaining contract ar
37 ownership term of at least 10 years to load-serving entities for a
38 tern» duration equal to the proport anate share of the remaining
39 terni oF the eligible renev%able energy resourees. These term. A
40 load-serving entity may apply these allocated resources 3.z l eoun
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SB 612 —6—
1 to its long-term procurement
2 requirement pursuant to subdivision (b) of Section 399.13.
3 (3) To enable a load-serving entity to effectively align its supply
4 with its customers' requirements, the electrical corporation shall,
5 at a minimum,provide each load-serving entity electing to receive
6 an allocation the following information for each allocated product:
7 (A) Not less than seven months before the beginning of the
8 production year, the most recent three-year historical production
9 data for the allocated products and the estimated annual production
10 profile by vintage and resource type in all hours.
11 (13) Within 15 days following the end ofeach production month,
12 actual production data for the prior month.
13 (d) (1) An electrical corporation shall offer-arty the products
14 allocated to departing lead departing load customers that a
15 load-serving entity declines to elect to receive pursuant to
16 subdivision (c) in the wholesale market in an -mittal Soli -
17 through regular solicitations. All revenues received through-the
18 annual 4okitat6en these solicitations shall be credited toward
19 reducing any nonbypassablc charge for all distribution ettstt)nierg.
20 oF the eleetrieel eorperation.paid b), bundled crud departing load
21 customers to recover the costs of legacy resources.
22 (2) The commission shall recognize and account for the value
23 of all products in the electrical corporation's legacy resource
24 portfolio in determining-a" the nonbypassablc charge to be paid
25 by departing load CUSfftleFS. the bundled and departing load
26 cusiorners to recover the costs of legacy resources.
27 Scc. _. occcidn 4�4.5 oF Luc Paouc Utilities cvaci3 $iiicr-cv
28 to read:
29
30
31 .
32 pro%-idt: under its rower Ptirehase agreements to the etigiomers ol
33
34
35
eorporation shall file a proposed proettrement plan with th-
36 eornmission not Inter than 69 dtty4 afier the eonimission .
37
38 speei6- the date that the eleemeal eorporation intends to fesurn
39
40eonimi4sion'; adoption OF a
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I proettrement plan, the eomintission shall allovt not less than 60
2
3 ptwstmani to th6s seeiiofl.
4
5 :_ but not be limited
.., all
.L,
t^'
Casgeeinted with the eleet
7 he, including any titilit� retained gener
8
9
10
11 eiectricity Felated prodeets and the to be
12 ..
13
14 produet, and proettrement related finaneial produet, imeht4ittgo
15 support and just fieation for the produet type and aniount to be
16
preeured tinder the plait-
17 .
18 (4) The duration, fiming and range of quantities 4eneh pro
19 to be proemd.
20
21
22
23 prde-ess
24
25
26 meehanism, their bemehmarks, and other
27 determine tile sharing OFF4,sks and beme,
28
29
30
31 exeet tion of the transaction. This shall inelude tin expedited
32
33
34 eorpormion shall propose alternative proeurenie it ehoiees in the
35
36 .
37
38 fallowing!
39 (A) The eleetriettl eorporation, in order to ktifill its unittel
40 resotree needs, slittil proettre resourees from eligible
97
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SB 612 —8—
I
3
4 4(3taptzr 2.3).
5
6 di%er4ified procurement portfiblio eeits sting 4 both short term
7
8
9
10
11 ,i .— rr that .__ __.t _ . .ti _ reliable, and r___v_
12
e
14
15
16 Study required ptirsuant to Gommis4ion Order 9.14 12 024, to
17 the extent tho4e findings are not superseded by other deman
18
19
20
21
22 gas fired generating units, shall aetiveb seek bids for =esottrees
23 ihat are not gas fired generating tiniis leeated in eoninitm i ties that
24 ,
25
26 polititanis, mid gFeenliattse gases.
27
28
29 greater preferenee to resourees that are not gas fired geitertttin,!;
30
31 burdens, 0 icluding, but not li iiited to, high emission levels 4foxte
32
33
34
35 3Zmasry E2017.
36 ,
37
y 38 stabilit
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-9— SB 612
I (H) A plan to tteh"", in diversity—of
3 faerierstiex
4
5 .
6
7
8 or updates it) the plan6 The eommission shall ensure thai the plan
9
10
II
12
13
14 one tip mare ofilte Features set Airth in this gubdivision shall apply
15
16 eonimis. ,
17
18
19
20
21 .. .
22
23
24
25
26
27 in
28 .
29
30
31
32
33 benchmark or benehmarks. The . meeitamiqsm
shall L
34 elenn ttehiewtble.and eontain quantifiable objeetives and sta idards.
36
37
38
39
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SB 612 — 10—
I
3 re eomplianee with its proettrement Pitt t. TO
4
5
6
7 .
8
9
10
II semv 6ts ettstofner4 tttjttst and rettsomiabie rates.
12 (2) Eliminate ihe need fijr after the fttet reasonableness rev
13
14
15
16
17 ensure
M1.. • ,_..,d_ ,.,_._•___• was
administered
in
.__.._Jamie_ ',L •1
18 terms tjF the eontreet, and eomitntet disptites that mitt) arise are
19 .
20
21 .
22
23
24
25 eommission.
26
27
28 plan. The eortimigSion shall review the power proettremem
29
30
31
32
33
34
35
36
37 \1L.,__ f)_.,,..._.__,. The
y,_ .:,...:__t
hall determine
• ,_ the
seheJ 1_
39
40 exceeded.After ganttafy 1 2096, this adjustment shall oeett, -ltem
97
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— ]I — SB 612
I deerned appropriate by the eommissien eonsistent with the
2 objeetows of this seetion.
3
4 ettstomers, i ieluding !he priee risk embedded its !on, term
5
6 '
7
8
9
10 (e) The eontmissien shall provide for tile periodic re%-ie%N
11
12 plmr
13
14
y 15
16
17 63i-
18
y 19
20
21 resulting From or related to its approved proettrement plait,
22 itteluding,but!lot limited to,proroged or exeettted power purehase
23 agreements, daitt reqtiest responses, or eunsultant reports, or any
24
25 ,.
26 that are nonmarket partieipants shall be provided tteeess to this
27
28 earttrttiysivrr.
29
30
31
32 agreement to reduee the eleetroeal corporation's total pmettrement
33 costs on a present vaitte basis oNer the remaining life ofthe eottintet
34 and that is reeovered frem both bundled and departing load
35
36
37
38 shall pubhel� report file restilts afthe FeqUeit f;5r offers itq ammittal
39 proeeeding
40
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SR 612 — 12—
1
3
4
5
6 request for offers "ere reasonable and III, lil-1.11, -1 —Iditd
7 and departing lead eustemers.
S
9
10
II
12 or to disallow eosts inetirTed as a result of gross ineoMpetente,
13
14 modify, or limit the Energy
15 fesponsibilities as set forth im Seetiorts 252 16,252 16.5,
17 ..
18 retail etistomers within the stme may file with the eommissio i
1) request Rjr exemption from this _
20 shall grant upon a showing oFgood eattse-.
21
22
23 on or after September 247 2002, Hie eummission
24
25
26 only io the extemit ii Finds,
27
28 ..
29
30 result ol'the divestiture of generation assets on or ttfter Septembei
31
32
33 .
34 ..
35 proposed proetim-ement eligible to use the proeedures in tit s seetion
36 .
37
38
39
40
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— 13— SB 612
I
2 any new gas fired generating timit, the commission shall reqtti-re
3 the eleetr6ettl eorporat 6 on to demonstrate eempliamee with its
4 approved proettrement plan.
5 SEG. 3.
6 SEC. Z. No reimbursement is required by this act pursuant to
7 Section 6 of Article XIIIB of the California Constitution because
S the only costs that may be incurred by a local agency or school
9 district will be incurred because this act creates a new crime or
10 infraction, eliminates a crime or infraction,or changes the penalty
I I for a crime or infraction, within the meaning of Section 17556 of
12 the Government Code, or changes the definition of a crime within
13 the meaning of Section 6 of Article XIII B of the California
14 Constitution.
O
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AMENDED IN SENATE APRIL 12, 2021
SENATE BILL No. 555
introduced by Senator McGuire
February 18, 2021
An act to add Part 1.65 (commencing with Section 7279.61) to
Division 2 of the Revenue and Taxation Code, relating to taxation, and
making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 555, as amended, McGuire. Local agencies: transient occupancy
taxes: online short-term rental facilitator: collection.
Existing law authorizes a city, county, or city and county to impose
taxes within itsjurisdiction,as provided, including a transient occupancy
tax, which is generally paid by a person for the privilege of occupying
a room or rooms, or other living space, in a hotel, inn, tourist home or
house, motel, or other lodging for a period of less than 30 days.
This bill would authorize a local agency, defined to mean a city,
county, or city and county, including a charter city, county, or city and
county, to enact an ordinance exclusively delegating its authority to
collect any transient occupancy tax imposed by that local agency on
short-term rentals to the California Department of Tax and Fee
Administration and to enter into a contract with the department for
purposes of registration, rate posting, collection, and transmission of
revenues necessary to collect and administer any transient occupancy
tax imposed on a short-term rental as specified in this bill. This bill
would define a short-term rental to mean file occupancy of a home,
house, a room in a home or house, or other lodging that is not a hotel
or motel in this state for a period of 30 days or less and under any other
circumstances specified by the local agency in its ordinance that is
98
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SB 555 —2—
facilitated by tin ordure a short-temi rental facilitator, as defined.This
bill would require the department to perform those functions, as
specified, and would require all local charges collected by the
department to be deposited in the Local Charges for Short-tenn Rentals
Fund, which would be created by the bill in the State Treasury. This
bill would continuously appropriate all amounts in the fund to the
department and would require the department to transmit the funds to
the local agencies periodically as promptly as feasible, as provided.
This bill would require an online a short-term rental facilitator
engaged in business in this state to be responsible for collecting from
the purchaser any local charge imposed on a short-term rental by any
local agency exclusively delegating its authority to the department
pursuant to this bill to collect those charges and would require thetirttfine
short-term rental facilitator to register with the department. The bill
would require the department to administer and collect the local charges
pursuant to the Fee Collection Procedures Law. This bill would also
make it a misdemeanor for any deputy, agent, clerk, or other officer or
employee of the department,or any former officer or employee or other
individual, who in the course of that individual's employment or duty
has or had access to returns, reports, or documents required to be filed
under this bill, to disclose or make known in any manner information
as to the amount of any local charges or any particulars, including the
business affairs of a corporation, set forth or disclosed therein.
By extending the application of the Fee Collection Procedures Law,
the violation of which is a crime, and imposing a new crime, this bill
would impose a state-mandated local program.
Existing constitutional provisions require that a staurte that limits
the right ojaccess to the meetings ojpublic bodies or the writings of
public officials and agencies be adopted with findings demonstrating
the interest protected by the limitation and the need for-protecting that
interest.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act
for a specified reason.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: ,vas.
9s
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—3— S B 555
The people of the State of California do enact as follows:
I SECTION 1. (a) The Legislature finds and declares that
2 occupancv tares are local taxes, not state tares, which are clue
3 and payable to local agencies, and support vital programs and
4 services provided by California's• cities and counties.
5 (b) The Legislature encourages short-term rental facilitators
6 to ensure the fill and prompt collection and remission directly to
7 local agencies of all due and payable occupancy taxes derived
8 front their facilitation of the occupancv of short-term rentals,
9 including by entering into voluntary agreements with cities and
10 counties to ensure that any occupancy tares due and payable to a
I I city a- count, sine timely paid in fill or continuing existing
12 agreements previously entered into with a local agency for these
13 purposes.
14 SECTION I.
15 SEC. 2. Part 1.65 (commencing with Section 7279.61) is added
16 to Division 2 of the Revenue and Taxation Code, to read:
17
18 PART 1.65. FAiR AND EFFECTIVE COLLECTION OF DUE
19 AND PAYABLE TRANSIENT OCCUPANCY TAXES
20 DERIVED FROM SHORT-TERM RENTALS ARRANGED BY
21 GNI—ItiE SHORT-TERM RENTAL FACILITATORS ACT OF
22 2021
23
24 7279.61. This part shall be known, and may be cited, as the
25 "Fair and Effective Collection of Due and Payable Transient
26 Occupancy Taxes Derived from Short-term Rentals Arranged by
27 Online Short-terra Rental Facilitators Act of 2021."
28 7279.62. All of the following definitions shall apply for
29 purposes of this part:
30 (a) "Department" means the California Department of Tax and
31 Fee Administration.
32 (b) "Local agency" means a city, county, or city and county,
33 which includes a charter city, county, or city and county.
34 (c) "Local charge" means a transient occupancy tax imposed
35 by a local agency on the privilege of occupying a home, house, a
36 room in a home or house, or other lodging that is not a hotel or
37 motel in this state for period of 30 days or less and under any other
38 circumstances specified by the local agency in its ordinance.
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SB 555 —4—
I (d) "Online short term rental fideiiiiater" means a Person
2
3 as fees From the transeetion, the rental aFe home, house, a room
4 in a hame or hottse, or other lodging that *s not a hotel or motel
5 that is not o"ned by the person f�eilifating the rental, threttg4t-an
6
7 who does both oFthe following!
8
9 engages in tiny oFthe following!
10
II .
12
13
or feehnolog) that brings purchasers and opermors iogethef-
14
15 requiFed to use to rent a lodging fforn the operater.
16 (R) Saftware development or resettreh and development
17 aetivities related to any of' the netivities dese=-ibed in pantgrM+
18
19 rentals.
20 .
21
22 short term rentols.
23 .
24 (B) Listing homes, houses, or rooms in homes or hettses, or
25 other lodgings ilia! aFe not a hotel or motel, and ihat is not owned
26 by that person or a related person, for rental an it short ferm basis.
27
28 (9) Branding shom term rentals as those eFthe online short term
29 rental f teil;tat
30 (£)Order taking.
31 (_e)
32 ((1 "Ordinance" refers to an ordinance of a local agency
33 imposing a local charge, including any local enactment relating to
34 the filing of a refund or a claim arising under the ordinance.
35 "Ordinance" also refers to an ordinance of a local agency
36 exclusively delegating the collection of transient occupancy taxes
37 imposed on short-term rentals within its jurisdiction to the
38 department.
39 (-1)
9s
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-5— SB 555
1 (e) "Purchaser"means a person who uses an enli e a short-term
2 rental facilitator to facilitate the occupation of a short-tenn rental
3 in this state.
4 (g)
5 (n "Short-term rental" means the occupancy of a home, house,
6 a room in a home or house, or other lodging that is not a hotel or
7 motel in this state for a period of 30 days or less and under any
8 other circumstances specified by the local agency in its ordinance
9 that is facilitated by an online a short-tern rental facilitator.
10 (g) "Short-term rental facilitator" means a person that
1 1 facilitates for consideration, regardless of whether it is deducted
12 as fees fn'orn the transaction, the rental of a home, horse, a room
13 in a home o' house, or other lodging that is not a hotel or motel
14 that is not owned by the person facilitating the rental, through a
15 marketplace operated by the person or a related person, and that
16 does both of the following:
17 (1) Direcll y o'indirectly. through one or more related persons,
18 engages in arry of the following:
19 (A) Transmits or otherwise communicates the offer or
20 acceptance between the purchaser and the operator.
21 (B) Owns or operates the infrastructure. electronic or physical,
22 or technology that brings purchasers and operators together.
23 (C) Provides a virtual currency that purchasers are allowed or
24 required to use to rent a lodging from the operator
25 (D) Software development or research and development
26 activities related to arry of due activities described in paragraph
27 (2), if such activities are directly related to facilitating short-term
28 rentals.
29 (2) Dlreclly at-indirectly, through one at-more related persons,
30 engages in any ofthe fallowing activities with respect tofacilitating
31 short-term rentals:
32 (A) Paynnerti processing services.
33 (B) Listing homes, houses, o' rooms in homes or houses, or
34 other lodgings that are not a hotel or motel. and that are not owned
35 by that person or a related person,for rental on a short-lean basis.
36 (C) Selling prices.
37 (D) Branding shore-term rentals as those of the short-term rental
38 facilitator
39 (E) Taking order's or reservations.
9s
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SR 555 —6-
1 7279.64. For purposes of this part,a person is related to another
2 person if both persons are related to each other pursuant to Section
3 267(b) of Title 26 of the United States Code, as that section was
4 amended by Public Law 1 14-1 13, and the regulations thereunder.
5 7279.66. (a) (1) On or after July I, 2022, a local charge
6 imposed by a local agency on a short-term rental shall be collected
7 from the purchaser by an etil ne a short-tern rental facilitator
8 pursuant to Section 7279.79 7279.70, and the department shall
9 perform all functions incident to the collection and administration
10 of that local charge pursuant to Section 7279.68 if the local agency
1 1 does-a44 both ofthe following:
12 (A) Enacts an ordinance exclusively delegating its authority to
13 collect local charges imposed by that local agency on short-term
14 rentals to the department. The ordinance-must shall contain the
15 enective date of the delegation, which must correspond with the
16 date that commences a calendar quarter, and be at least six months
17 from the date the local agency enacts the ordinance.
18 (13) Enters into a contract with the department for purposes of
19 registration, rate posting,collection,and transmission of revenues
20 necessary to collect and administer the local charges of a local
21 agency imposed on a short-ternm rental as specified in Section
22 7279.68. In the contract, the local agency shall certify to the
23 department that its ordinance applies its local charge on short-term
24 rentals, the applicable transient occupancy tax rate for short-term
25 rentals, any other information the department decors necessary to
26 implement this part,and that the local agency agrees to indemnify,
27 and hold and save hamiless, the department, its officers, agents,
28 and employees for any and all liability for damages that may result
29 from collection pursuant to the contract.
30 (2) event it-!fa local agency adopts a new local charge
31 that is imposed on short-term rentals on or after the eflectivc date
32 of this part, the local agency can enact an ordinance exclusively
33 delegating the collection of its transient occupancy taxes imposed
34 on short-term rentals to the department and enter into a contract
35 with the department to perform the functions set forth in this part,
36 on or before December I of each year, with collection of the local
37 charge to commence April I of the nest calendar year. In the
38 contract, the local agency shall certify to the department that its
39 ordinance applies its local charge on short-term rentals, the
40 applicable transient occupancy tax rate for short-term rentals, any
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1 other information the department deems necessary to implement
2 this part, and that the local agency agrees to indemnify, and hold
3 and save harmless, the department, its officers, agents, and
4 employees for any and all liability for damages that may result
5 from collection pursuant to the contract.
6 (3) in that a local agency increases its local charge
7 after the effective date of this part, the local agency shall provide
8 the department with written notice of the increased local charge
9 on or before December 1, with collection of the local charge to
10 commence April I of the next calendar year.
11 (4) 1 i the event that if a local agency reduces or eliminates a
12 local charge imposed on short-term rentals, the local agency shall
13 provide the department with written notice within 30 days of the
14 reduction or elimination.The reduction or elimination shall become
15 operative on the first day of the calendar quarter commencing more
16 than 60 days from the date the local agency notifies the department
17 that it no longer imposes a local charge or that the rate of its local
18 charge has been reduced.
19 (5) If a local agency enters into a cataract with the cleparonent
20 pursuant to paragraph (2), provides the departmenl with written
21 notice of an increased local charge pursuant to paragraph (3), or
22 provides the department with writlen notice of a reduction or
23 elimination pursuant to paragraph (4), the department shall
24 provide short-term rental facilitators with written notice within
25 30 days oj'that event.
26 (b) Notwithstanding any other law, the authority of a local
27 agency to collect a local charge imposed on a short-term rental is
28 suspended as of the effective date specified in its ordinance
29 described in paragraph (1) of subdivision (a).
30 (c) (1) A local agency may enact an ordinance terminating the
31 delegation of authority to the department pursuant to paragraph
32 (1) of subdivision (a), so long as the efTective date of the
33 termination of the delegation corresponds with the date that
34 commences a calendar quarter, and is at least six months front the
35 date the local agency enacts the ordinance terminating the
36 delegation.
37 (2) The cleparanent shall provide notice of a termination
38 pursuant to this subdivision to the short-term rental fcacilitalors
39 within 30 days of the local agency terminating the delegation of
40 cnahority to the department.
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SB 555 —8-
1 7279.68. (a) Ifdelegated the authority pursuant to an ordinance
2 described in Section 7279.66, the department shall perform the
3 registration, rate posting,collection, and transmission of revenues
4 necessary to collect and administer local charges, subject to the
5 limitations set forth in subdivision (f).
6 (b) All local charges collected by the department shall be
7 deposited in the Local Charges for Short-term Rentals Fund, which
8 is hereby created in the State Treasury, and shall be held in trust
9 for the local agency, and shall not be used for any other purpose.
10 Local charges shall consist of all taxes,charges, interest,penalties,
I I and other amounts collected and paid to the department resulting
12 from the imposition of the transient occupancy tax, less payments
13 for refunds and reimbursement to the department for expenses
14 incurred in the administration and collection of the local charges.
15 Notwithstanding Section 13340 of the Government Code, all
16 amounts in the Local Charges for Short-term Rentals Fund are
17 continuously appropriated to the department.The department shall
18 transmit the funds to the local agencies periodically as promptly
19 as feasible,but shall be made at least once in each calendar quarter.
20 The department shall furnish a quarterly statement indicating the
21 amounts paid and withheld for expenses of the department.
22 (c) The department shall prescribe and adopt riles and
23 regulations as may be necessary or desirable for the administration
24 and collection of local charges and the distribution of the local
25 charges collected.
26 (d) The department's audit duties under this part shall be limited
27 to verification that the-cjeilirre short-term rental facilitator complied
28 with this part.
29 (e) (1) The department shall make available to a requesting
30 local agency any information that is reasonably available to the
31 department regarding the proper collection and remittance of a
32 local charge of the local agency by an enli ie n short-term rental
33 facilitator.
34 (2) Except as otherwise provided in paragraph (1) and as
35 required to administer this part, it is a misdemeanor punishable by
36 a fine not exceeding one thousand dollars (SI,000), by
37 imprisonment in a county jail not exceeding one year, or by both,
38 in the discretion of the court, for any deputy, agent,clerk, or other
39 officer or employee of the department, or any former officer or
40 employee or other individual,who in the course of that individual's
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-9— SB 555
1 employment or duty has or had access to returns, reports, or
2 documents required to be filed under this part, to disclose or make
3 known in any manner information as to the amount of any local
4 charges or any particulars, including the business affairs of a
5 corporation, set forth or disclosed therein.
6 (3) Any information subject to paragraph (1) is exempted from
7 any requirement of public disclosure by the department pursuant
8 to subdivisions (i) and (k) of' Section 6254 of the Government
9 Code.
10 (1) The local agency that has adopted an ordinance to impose a
I I local charge that applies to short-term rentals and exclusively
12 delegates the authority to the department shall be solely responsible
13 for:
14 (1) Defending any claim regarding the validity of the ordinance
15 in its application to short-term rentals.
16 (2) Interpreting any provision of the ordinance, except to the
17 extent specifically superseded by this statute.
18 (3) Responding to any claim for refund by a purchaser arising
19 under local charges collected pursuant to an ordinance described
20 in Section 7279.66. The claim shall be processed in accordance
21 with the provisions of the local enactment that allows the claim to
22 be filed.
23 (4) Certifying that the ordinance ofthe local agency applies the
24 local charge to short-temi rentals and agreeing to indemnify and
25 hold harmless the department and its officers, agents, and
26 employees for any and all liability for damages that may result
27 from collection of the local charge.
28 (5) Reallocation of local charges as a result of'correcting errors
29 relating to the location of the short-term rental, for up to two past
30 quarters from the dale of knowledge.
31 (g) In connection with any actions or claims relating to or arising
32 from the invalidity of a local tax ordinance, in whole or in part,
33 the online short-term rental facilitator shall not be liable to any
34 consumer as a consequence of collecting the tax. In the event a
35 local agency is ordered to refund the tax, it shall be the sole
36 responsibility of the local agency to refund the tax. In any action
37 seeking to enjoin collection of a local charge by an online a
38 short-term rental facilitator, in any action seeking declaratory relief
39 concerning a local charge, in any action seeking a refund of local
40 charge, or in any action seeking to otherwise invalidate a local
9s
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S B 555 — 10—
I charge, the sole necessary party defendant in the action shall be
2 the local agency on whose behalf the department collects the
3 charge.There shall be no recovery from the state for the imposition
4 of any unconstitutional or otherwise invalid local charge that is
5 collected pursuant to this part.
6 (h) For purposes of this section:
7 (1) "Quarterly local charges" means the total amount of local
8 charges transmitted by the department to a local agency for a
9 calendar quarter.
10 (2) "Refund" means the amount of local charges deducted by
I I the department from a local agency's quarterly local charges in
12 order to pay the local agency's share of a local charge refund due
13 to one taxpayer.
14 (3) "Offset portion" means that portion of the refund which
15 exceeds the greater offifty thousand dollars(550,000)or 20 percent
16 of the local agency's quarterly local charges.
17 (i) Except as provided in subdivision 0), if the department has
18 deducted a refund from a local agency's quarterly local charges
19 that includes an offset portion,then the following provisions apply:
20 (1) Within three months after the department has deducted an
21 offset portion, the local agency may request the department to
22 transmit the offset portion to the local agency.
23 (2) As promptly as feasible after the department receives the
24 local agency's request, the department shall transmit to the local
25 agency the offset portion as part of the department's periodic
26 transmittal of local charges.
27 (3) The department shall thereafter deduct a pro rata share of
28 the offset portion from future transmittals of local charges to the
29 local agency over a period to be determined by the department,
30 but not less than two calendar quarters and not more than eight
31 calendar quarters, until the entire amount of the offset portion has
32 been deducted_
33 0) The department shall not transmit the offset portion of the
34 refund to the local agency if that transmittal would reduce or delay
35 either the department's payment of the refund to the taxpayer or
36 the department's periodic transmittals of local charges to other
37 local agencies.
38 (k) A local agency shall pay to the department its pro rata share
39 of the department's cost of collection and administration.
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— It — SB555
1 The department shall annually prepare a report showing the
2 amount of both reimbursed and unrcimbursed costs incurred by it
3 in administering the collection of local charges pursuant to this
4 part.
5 7279.70. (a) (1) Atio ;mr,c—A short-term rental facilitator
6 engaged in business in this state shall be responsible for collecting
7 from the purchaser any local charge imposed on a short-term rental
8 by any local agency exclusively delegating its authority to the
9 department pursuant to Section 7279.66 to collect those charges.
10 The online short-tenn rental facilitator shall remit those local
I I charges collected to the department. The responsibility for the
12 charge is not extinguished until it has been paid to this state.
13 (2) All amounts collected by the online short-term rental
14 facilitator pursuant to this section-is are due and payable to the
15 department on or before the last day of the month following each
16 calendar quarter. On or before the last day of the month following
17 each quarterly period, a return for the preceding quarterly period
18 shall be filed with the department by each online short-tern rental
19 facilitator using electronic media. Returns shall be authenticated
20 in a form or pursuant to methods as may be prescribed by the
21 department.
22 (b) The department shall administer and collect the local charges
23 exclusively delegated by a local agency under this part pursuant
24 to the Fee Collection Procedures Law(Part 30 (commencing with
25 Section 55001)). For purposes of this part, the references in the
26 Fee Collection Procedures Law to"fee"shall include local charges
27 delegated by a local agency to be collected by the department
28 pursuant to this part, and references to "fcepaycr" shall include
29 any online short-temi rental facilitator required to collect and remit
30 local charges exclusively delegated by a local agency to be
31 collected by the department pursuant to this part.
32 (c) The department shall publish and maintain a list of local
33 agencies delegating its authority to collect local charges oil
34 short-term rentals on its intemet website, including the rate. The
35 list shall also include any other information determined to be
36 relevant to the department for the proper collection of the local
37 charges, including, but not limited to, the duration period of the
38 short-term rental,or any other circunmstances specified by the local
39 agency applicable in those jurisdictions for determining whether
40 any local charge is due for the occupancy of a short-term rental.
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1 (d) (1) The department may prescribe, adopt, and enforce
2 regulations relating to the administration and enforcement of this
3 part, including, but not limited to, collections, reporting, refunds,
4 and appeals.
5 (2) The department may prescribe, adopt, and enforce any
6 emergency regulations as necessary to implement this part. Any
7 emergency regulation prescribed, adopted, or enforced pursuant
8 to this section shall be adopted in accordance with Chapter 3.5
9 (commencing with Section 1 1340)of Part 1 of Division 3 of Title
10 2 of the Government Code, and, for purposes of that chapter,
I I including Section 11349.6 of the Government Code, the adoption
12 of the regulation is an emergency and shall be considered by the
13 Office of' Administrative Law as necessary for the immediate
14 preservation of the public peace, health and safety, and general
15 welfare.
16 7279.72. Atrorciine-A short-term rental facilitator that is subject
17 to a local agency ordinance that delegates authority for collection
18 of a local charge to the department pursuant to Section 7279.66 is
19 required to register with the department. Every application for
20 registration shall be made upon a form prescribed by the
21 department and shall set forth the name under which the applicant
22 transacts or intends to transact business, the location of its place
23 or places of business,and such other information as the department
24 may require. An application for registration shall be authenticated
25 in a form or pursuant to methods as may be prescribed by the
26 department.
27 SEC. 3. The Legislature finds and declares that Section 2 of
28 this act, which adds Section 7279.68 to the Revenue and Taxation
29 Cock, imposes a limitation on the public's right of access to the
30 meetings of public bodies or the writings of public officials and
31 agencies within the meaning of Section 3 of Article I of the
32 California Constitution Pursuant to that cons7iiintiar7al provision,
33 the Legislature makes the following findings to demonstrate the
34 interest protected by this limitation and the need for protecting
35 that interest
36 In order to comply with existing law and to prevent unfair
37 competitive chsadvartages, it is necessarvfor information provider!
38 to local agencies by the California Department of Tar and Fee
39 Achninisnation pursuant to .Section 2 of this act to remain
40 co fdential.
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— 13— SB 555
1 SCC2-
2 SEC. 4. No reimbursement is required by this act pursuant to
3 Section 6 of Article XIIIB of the California Constitution because
4 the only costs that may be incurred by a local agency or school
5 district will be incurred because this act creates a new crime or
6 infraction, eliminates a crime or infraction, or changes the penalty
7 for a crime or infraction, within the meaning of Section 17556 of
8 the Government Code,or changes the definition of a crime within
9 the meaning of Section 6 of Article X111 B of the California
10 Constitution.
O
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AMENDED IN SENATE APRIL 27, 2021
AMENDED IN SENATE APRIL 12, 2021
AMENDED IN SENATE MARCH 16, 2021
SENATE BILL No. 556
Introduced by Senator Dodd
February 18, 2021
An act to add Division 2.6 (commencing with Section 5980) to the
Public Utilities Code, relating to communications.
LEGISLATIVE COUNSEL'S DIGEST
SB 556, as amended, Dodd. Street light poles, traffic signal poles:
small wireless facilitics attachments.
Existing law requires a local publicly owned electric utility to make
appropriate space and capacity on and in-their its utility poles,as defined,
and support structures available for use by cable television corporations,
video service providers, and telephone corporations. Existing law
requires fees adopted to cover the costs to provide this use, and terms
and conditions of access, to meet specified requirements, and specifics
the manner in which these fees and terms and conditions of access could
be challenged.
This bill would prohibit a local government or local publicly owned
electric utility from unreasonably denying the leasing or licensing of
its street light poles or traffic signal poles to communications service
providers for the purpose of placing small wireless facilities on those
poles. The bill would require that street light poles and traffic signal
poles be made available for the placement of small wireless facilities
under fair, reasonable, and nondiscriminatory
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SB 556 —2—
.fees. The bill would specify time periods
for various actions relative to requests for placement of a small wireless
facility by a communications service provider on a street light pole or
traffic signal pole. The bill world authorize a local publicly owned
electric utility or local government to dery an application far-use of a
street light pole or traffic signal pole, as applicable, because of
insufficient capucifv or safety reliability, or engineering concerns
subject to certain conchtions. By placing additional requirements upon
local publicly owned electric utilities and local governments, the bill
would impose a state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act
for a specified reason.
Vote. majority. Appropriation: no. Fiscal committee: yes.
Statc-mandated local program: yes.
The people of the State of California do enact crs jollows:
1 SECTION 1. (a) This act shall be known, and may be cited
2 st, cited, as the California Connectivity Act.
3 (b) The Legislature finds and declares all of the following:
4 (1) Communities across California face a multitude of'barriers
5 to the deployment of resilient and accessible broadband networks.
6 Broadband internet access service in urban communities varies by
7 neighborhood, with great discrepancies in infrastructure
8 technology. Communities in rural areas often lack sufficient
9 broadband internet access service, as well as the backhaul
10 infrastructure, to provide broadband services.
11 (2) The COVID-19 pandemic has highlighted the extent to which
12 broadband access is essential for education, tclehealth, remote
13 working, public safety, public health and welfare, and economic
14 resilience. The pandemic adds greater urgency to develop new
15 strategies and expand on existing successful measures to deploy
16 reliable networks. Connection to the interact at reliable speeds is
17 also crucial to California's economic recovery from the impact of
18 COVID-19. Millions of children are attending classes remotely,
19 telchealth visits have skyrocketed, and many more Californians
20 are telecommuting from their places of residence. Additionally,
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-3— SB 556
1 with unprecedented growth in unemployment caused by COVID-19
2 and the need to participate in all aspects of society from home, the
3 demand for reliable broadband internet access service has
4 significantly increased as millions of additional Californians need
5 access to successfully weather the pandemic and to recover.
6 (3) Wireless broadband internet access is critical to distance
7 learning. Just as important, wireless broadband intemet access is
8 needed to address the digital divide. In 2017, for example, 73
9 percent of households accessed the internet using a cellular
10 telephone.The Federal Communications Commission reports that
I I nearly 70 percent of teachers assign homework that requires
12 broadband access.Although California has made progress closing
13 the digital divide at schools, intemet access at home is still a
14 challenge.Almost 16 percent ofschoolage children,about 945,000,
15 had no internet connection at home in 2017 and 27 percent, about
16 1.7 million, did not have broadband connections. Access varies
17 significantly by family income, parental education, race or
18 ethnicity, and geography. For example, 22 percent of low-income
19 households with schoolage children did not have any internet
20 connection at home and 48 percent reported no broadband
21 subscription at home.
22 (4) Over 2,000,000 Californians lack access to high-speed
23 broadband at benchmark speeds of 100 megabits per second
24 download, including 50 percent of rural housing units. More than
25 14,000,000 Califomians, over one-third of the population, do not
26 subscribe to broadband at the minimum benchmark speed to
27 support distance learning and technologies that depend on upload
28 speed. Only 34 percent of adults over 60 years of age use the
29 internet,excluding older adults from access to telemedicine,social
30 services, and other support.
31 (5) The Centers for Medicare and Medicaid Services define
32 tclehealth as "a two-way, real-time interactive communication
33 between a patient and a physician or practitioner at a distant site
34 through telecommunications equipment that includes, at a
35 minimum,audio and visual equipment:'Tclemedicinc encompasses
36 a growing number of applications and technologies, including
37 two-way live or streaming video, videoconferencing,
38 store-and-forward imaging along with the internet, email,
39 smartphones, wireless tools, and other forms of
40 telecommunications. These technologies facilitate and leverage
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SB 556 —4-
1 the latest innovations in computer, network, and peripheral
2 equipment to promote the health of patients around the world.
3 Critical to its success is reliable broadband internet access.
4 (6) Telchealth technology permits health care services to be
5 delivered without in-person contact, reducing the risk of disease
6 transmission to both patients and health care workers, and frees
7 up in-person resources for COVID-19 patients. Telchealth allows
8 patients to receive health services away from settings where the
9 potential for contracting COVID-19 is high, such as hospitals,
10 health clinic waiting rooms, private practices, and other medical
I I facilities. Telchealth can also expand the reach of resources to
12 communities that have limited access to needed services.
13 (7) Due to widespread restrictions, and with fewer elective
14 procedures occurring in California and around the country to
15 reserve beds for COVID-19 patients, the telchealth share of total
16 medical claim lines, which is the individual service or procedure
17 listed on an insurance claim, increased 8,336 percent nationally
18 from April 2019, toApril2020. Similar percentage increases have
19 occurred in California.
20 (8) Millions of Californians are working from home while
21 sheltering in place. Even employers that had not previously
22 permitted remote-work arrangements have changed their policies
23 during the pandemic. The Department of General Services reports
24 that 83.9 percent of state workers are working from home. Survey
25 data indicates that nearly two-thirds of those who still had jobs
26 during the pandemic were almost exclusively working from home.
27 That compares with just 13 percent of workers who said they did
28 so even a few times a week prior to the COVID-19 pandemic.
29 Telework is expected to continue at rates much higher than before
30 COVI D-19 even after the pandemic is over.Among those workers
31 surveyed who had previously not regularly worked from home,
32 62 percent said they were enjoying the change, and 75 percent
33 expect their employers to continue to provide flexibility in where
34 they work after the pandemic has passed. Indeed, the State of
35 California, one of Califomia's largest employers, has stated the
36 desire for 75 percent of the state's workforce to remain home, at
37 least part time, for the foreseeable future. The Metropolitan
38 Transportation Commission in the San Francisco Bay Area voted
39 to adopt a strategy to have large, office-based companies require
40 people to work from home three days a week as a way to slash
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218
-5— SB 556
1 emissions of greenhouse gases from car commutes. Critical to the
2 success of telework is reliable broadband intemet access.
3 (9) The enormous increases in distance Teaming, letehealth,and
4 telework require a significant boost in broadband infrastructure,
5 especially near the homes where these activities take place. To
6 promote wireless broadband intemet access near homes, it is in
7 the interest of the state to ensure the deployment of wireless
8 facilities on street light poles and traffic signal poles. It is in the
9 interest of the state to ensure that local publicly owned electric
10 utilities and local governments that own or control traffic signal
1 1 poles or street light poles make them available to communications
12 service providers for the placement of small wireless facilities,
13 under reasonable rates, terms, and conditions.
14 (10) The state has a compelling interest in ensuring that local
15 publicly owned electric utilities and local governments provide
16 access to traffic signal poles and street light poles, with
17 nondiscriminatory fees that recover reasonable actual costs,
18 consistent with applicable federal regulations barring localities
19 from denying reasonable, nondiscriminatory access to their pole
20 infrastructure for small wireless facility attachments at reasonable
21 and cost-based rates. Therefore, it is the intent of the Legislature
22 that this act supersedes all conflicting local laws and this act shall
23 apply in charter cities.
24 (11) Time is of the essence to approve small wireless facility
25 siting applications given the immediate need for broadband interact
26 access, as amplified by the COVID-19 pandemic.
27 (c) It is the intent of-the Legislature to facilitate the deployment
28 of wireless broadband intemet access and to bridge the digital
29 divide by connecting students, families, and communities with
30 reliable interest connectivity that will remain a necessity after the
31 COVID-19 pandemic has abated.
32 SEC.2. Division 2.6(commencing with Section 5980)is added
33 to the Public Utilities Code, to read:
34
35 DIVISION 2.6. CALIFORNIA CONNECTIVITY ACT
36
37 5980. For purposes of this division, the following terms have
38 the following meanings:
39 (a) "Annual costs of ownership" means the annual capital costs
40 and annual operating costs of a street light pole or traffic signal
9fi
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SB 556 —6-
1 pole, which shall be the average costs of all similar street light
2 poles and traffic signal poles owned or controlled by the local
3 government or publicly owned electric utility. The basis for the
4 computation of annual capital costs shall be historical capital costs
5 less depreciation.The accounting upon which the historical capital
6 costs are determined shall include a credit forall reimbursed capital
7 costs. Depreciation shall be based upon the average service life of
8 the street light pole or traffic signal pole.Annual cost of ownership
9 does not include costs for any property not necessary for use by
10 the small wireless facility.
I I (b) "Communications service provider"means a cable television
12 corporation, video service provider, or telephone corporation.
13 (c) "Governing body' means the governing body of a local
14 government or local publicly owned electric utility, including,
15 where applicable, a board appointed by a city council.
16 (d) "Local government" means a city, including a charter city,
17 county, or city and county.
18 (c) "Small wireless facility" has the same definition as defined
19 in subsection (1) of Section 1.6002 of Title 47 of the Code of
20 Federal Regulations.
21 (1) "Street light pole" means a pole, arm, or fixture used
22 primarily for street, pedestrian, or security lighting.
23 (g) "Traffic signal pole" means a pole, arm, or fixture used
24 primarily for signaling traffic flow.
25 (h) "Usable space' means the space above the minimum grade
26 that can be used for the attachment of antennas and associated
27 ancillary equipment.
28 5981. (a) A local government or local publicly owned electric
29 utility shall not unreasonably deny the leasing or licensing of its
30 street light poles or traffic signal poles to communications service
31 providers for the purpose of placing small wireless facilities. Street
32 light poles and traffic signal poles shall be made available for the
33 placement of small wireless facilities under fair, reasonable, and
34 nondiscriminatory fees, subject to the requirements in Section
35 5982. Access to street light poles or traffic signal poles may also
36 be subject to other reasonable terms and
37 '
38
39 timid 4�hqrd Report ftnd Order (September 26, 2918) FGG 18 133,
40
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-7— SB 556
I .
3 (b) (1) A local publicly owned electric utility or local
4 government shall respond to a request for placement of a small
5 wireless facility by a communications service provider on a street
6 light pole or traffic signal pole, or multiple poles, owned or
7 controlled by the local publicly owned electric utility or local
8 government within 45 days of the date of receipt of the request.
9 or within 60 days if the request is to attach to over 300 poles. If
10 the request is denied, the local publicly owned electric utility or
I I local government shall provide in the response the reason for the
12 denial and the remedy to gain access to the street light poles or
13 traffic signal poles. If a request to attach is accepted, the local
14 publicly owned electric utility or local government,within 14 days
15 after acceptance of the request, shall provide a cost estimate,based
16 on actual cost, for any necessary make-ready work required to
17 accommodate the small wireless facility. The requesting party
18 shall accept or reject the make-ready cost estimate within 14 days.
19 Within 60 days of acceptance of the cost estimate,the local publicly
20 owned electric utility or local government shall noti fy any existing
21 third-party attachers that make-ready work for a new attacher needs
22 to be performed.The requesting party shall have the responsibility
23 to coordinate with third-party existing attachers for make-ready
24 work to be completed. All parties shall complete all make-ready
25 work within 60 days of the notice, or within 105 days in the case
26 of a request to attach to over 300 poles. The local publicly owned
27 electric utility or local government may complete make-ready
28 work without the consent of the existing attachers, if the existing
29 attachers fail to move their attachments by the end of the
30 make-ready timeline requirements specified in this paragraph.
31 (2) The timelines described in paragraph (1) may be extended
32 under special circumstances upon agreement of the local publicly
33 owned electric utility or local government and the communications
34 service provider.
35 ., agrees
36 the street light pole or traffie signal
37 (c) (1) A local publicly owned electric utility or local
38 government may deny an application for use of a street light pole
39 or traffic signal pole,as applicable,because of insufficient capacity
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SB 556 —8-
1 or safety,reliability,orenginceringzoffeer,sin concerns, subject
2 to both of the following conditions:
3 (A) The capacity, safety, and reliability concerns can be
4 adc/ressed through the replacement ofthe street light pole or traffic
5 signal pole but the communication service provider is unable or
6 univilling to replace the pole or a replacement of the pole would
7 not sufficiently mitigate the safety, engineering or capacity
8 concerns-
9 (B) The local publicly owner/electric utility or local government
10 identifies the concerns, provides the communication service
I I provider with an opportunity to remedy the concerns, and the
12 communication service provider declines to adopt the remedies.
13 (2) In denying an application, a local publicly owned electric
14 utility or local government may also take into account the manner
15 in which a request from a communications service provider under
16 this division could impact an approved project for future use by
17 the local publicly owned electric utility or the local government
18 of its street light poles or traffic signal poles for delivery of the
19 core service related to a street light pole or traffic signal pole, as
20 applicable.
21 (d) This division does not limit the authority of a local publicly
22 owned electric utility or local government to ensure compliance
23 with all applicable law in determining whether to approve or
24 disapprove use of a street light pole or traffic signal pole, as
25 applicable.
26 5982. (a) A local government or local publicly owned electric
27 utility is entitled to fair and reasonable compensation that recovers
28 a reasonable approximation of the direct and actual costs related
29 to the communication service provider's placement of small
30 wireless facilities on street light poles or traffic signal poles,
31 consistent with the Federal Communications Commission's
32 Declaratory Ruling and Third Report and Order (September 26,
33 2018) FCC 18-133, In the Matter of Accelerating Wireline
34 Broadband Deployment by Removing Barriers to Infrastructure
35 Investment, WT Docket No. 17-79 and WC Docket No. 17-84.
36 The compensation may include both of the following:
37 (1) The local government or local publicly owned electric utility
38 may assess an annual attachment rate per pole that is a reasonable
39 approximation of the direct and actual costs and does not exceed
40 an amount resulting from both ol'the following requirements:
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-9— SB 556
1 (A) The local government or local publicly owned electric utility
2 shall calculate the rate by multiplying the percentage of the total
3 usable space that would be occupied by the small wireless facility
4 attachment by the annual costs of ownership of the street light pole
5 or traffic signal pole.
6 (B) The local government or local publicly owned electric utility
7 shall not levy a rate that exceeds the estimated amount required
8 to provide use of the street light pole or traffic signal pole for which
9 the annual recurring rate is levied. If the rate creates revenues in
10 excess of actual costs,the local government or local publicly owned
l l electric utility shall use those revenues to reduce the rate.
12 (2) The local government or local publicly owned electric utility
13 may assess a one-time reimbursement fee for actual costs incurred
14 by the local government or publicly owned electric utility for
15 rearrangements performed at the request of the communications
16 service provider.
17 (b) A local publicly owned electric utility or local government
18 establishes a rebuttable presumption that its attachment fees comply
19 with subdivision (a) if the attachment fees are equal to or less than
20 the presumptively reasonable attachment fee set forth in paragraph
21 79(b) of the Federal Communications Commission's Declaratory
22 Ruling and Third Report and Order (September 26, 2018) FCC
23 18-133, In the Matter of Accelerating Wireline Broadband
24 Deployment by Removing Barriers to Infrastructure Investment,
25 WT Docket No. 17-79 and WC Docket No. 17-84. This
26 presumptively reasonable atittehment fee shall be aff�red, and of
27
28
29 .
30 (c) Unless the communications service provider and local
31 government otherwise agree, if existing contractual attachment
32 rates exceed the presumptively reasonable attachment fee set forth
33 in paragraph 79(b)of the Federal Communications Commission's
34 Declaratory Ruling and Third Report and Order (September 26,
35 2018) FCC 18-133, In the Matter of Accelerating Wireline
36 Broadband Deployment by Removing Barriers to Infrastructure
37 Investment, WT Docket No. 17-79 and WC Docket No. 17-84,
38 the rates, terms, and conditions that are specified in a contract
39 executed before January 14,2019,shall remain valid only for small
40 wireless facilities already attached to a street light pole or traffic
96
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SB 556 — tu—
I signal pole by a communications service provider before January
2 I, 2022,and only until the contract, rate, term, orcondition expires
3 or is terminated according to its terms by one of the parties.
4 5983. This division does not prohibit a local publicly owned
5 electric utility or local government from requiring a one-time fee
6 to process a request for attachment, if-the one-time fee does not
7 exceed the actual cost of processing the request-
8 5984. This division does not prohibit a communications service
9 provider and a local government from mutually agreeing to a rate,
10 charge, term, or condition that is different from that provided in
I I this division. Either party may withdraw from a negotiation for an
12 agreement upon written notice to the other party.
13 5985. If the communication service provider requests a
14 rearrangement of a street light pole or traffic signal pole, owned
15 and controlled by a local government or local publicly owned
16 electric utility, the local government or local publicly owned
17 electric utility may charge a one-time reimbursement fee for the
18 actual costs incurred for the rearrangement.
19 5986. A local publicly owned electric utility shall use the
20 procedures established in Section 9516 for the adoption of the
21 attachment fee described in subdivision(a)of Section 5982,except
22 that the local publicly owned electric utility may avoid the
23 procedure of Section 9516 by applying the provision of subdivision
24 (b) of Section 5982. Any person or entity may follow the
25 procedures of Section 9517 to protest the adoption of a fee adopted
26 by a local publicly owned electric utility pursuant to Section 5982
27 and not adopted pursuant to subdivision (b) of that section. The
28 procedures forjudicial action or proceeding to attack, review, set
29 aside, void, or annul a fee pursuant to Section 9518 and requests
30 for audits of fees in Section 9519 apply to attachment fees adopted
31 by a local publicly owned electric utility pursuant to Section 5982
32 and not adopted pursuant to subdivision (b) of that section.
33 SEC. 3. No reimbursement is required by this act pursuant to
34 Section 6 of Article XI11 B of the California Constitution because
35 a local agency or school district has the authority to levy service
36 charges, fees, or assessments sufficient to pay for the program or
37 level of service mandated by this act,within the meaning of Section
38 17556 of the Government Code.
O
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#breakf reef romplastic POLLUTION ACT FACT SHEET
The Break Free From Plastic Pollution Act of 2021 (BFFPPA) introduced by Sen.Jeff Merkley(OR)and Rep.Alan
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The U.S.erports 225 shipping e
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carbon footprint.
governments billions of J• Plastic is being 1?t +!rt f ++ t ++ dollars by shifting the cost
converted back L� of waste management to
s.9e 9 gsm,s It +1 ++ producers.
into fossil fuels ++III +fn t^m S_.L107 3Y110[ S-.Y IOJ
far burning, eL�+�l IY `\ lG�l • Moving toward true"full-
. . — t+ ++ p g Zero waste systems wrote over 26o tames as
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p many jabs as landfills and incinerators.
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