CALIFORNIA REDEVELOPMENT ASSOCIATION LEGISLATIVE BILL REPORT FOR 2006 LEGISLATIVE SESSION October 3, 2006

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1 CALIFORNIA REDEVELOPMENT ASSOCIATION LEGISLATIVE BILL REPORT FOR 2006 LEGISLATIVE SESSION October 3, 2006 The State Legislature completed their business for the 2006 session by August 31 st. The Governor met the September 30 th deadline to sign or veto all the legislation passed to him by the 2006 State Legislature. This concludes a two-year legislative session so that all bills that have not been signed and chaptered are dead. The 2006 Regional Briefings will be held statewide October They are an opportunity to get a full report on the legislation that will affect redevelopment in California. Please join us and your peers for these informative sessions. You can register online at or call (916) to attend the one closest to you. They are free to CRA members. Our members only website carries a bill tracking report that is updated daily you can find it under Legislative Activities and Resources. Contact Lillian Henegar at lhenegar@calredevelop.org or , if you have questions. SUPPORT AB 773 AUTHOR: Mullin (D) TTTLE: Redevelopment: referendum Support LOCAION: Chapter 161, Statutes of 2006 This bill provides all voters with 90 days to gather signatures to qualify a referendum challenge to a redevelopment ordinance. This eliminates the current law s division between big cities, those with populations over 500,000, that have 90 days to collect signatures, and smaller cities, under 500,000 people, that have only 30 days. AB 773 was heard in the Assembly Housing and Community Development Committee on January 11th and was passed 6-0. The bill was passed by the Assembly Appropriations Committee and passed the Assembly, The Senate Local Government Committee passed, 5-0, and it went to the Senate Floor, where it was passed, The Assembly concurred, The Governor signed the bill August 28 th. AB 782 AUTHOR: Mullin (D) Redevelopment: project area Support LOCATION: Chapter 113, Statutes of 2006 AB 782 removes the exception for antiquated subdivisions from the definition of physical and economic blight in the Health & Safety Code as a stand along condition of blight. Specifically, it deletes Health & Safety Code Section 33031(a) (4). Antiquated subdivisions can be used as a finding of blight IF in an urbanized area. AB 782 passed, 7-0, the Assembly Housing and Community Development Committee. The Assembly voted, 72-0, to pass it. The Senate Local Government Committee passed 5-0, and it went to the Senate Floor, where it was passed. The Governor signed AB 782 and it has been chaptered. AB 1387 AUTHOR: Jones (D) CEQA: Residential Infill Projects Support LOCATION: Chapter 715, Statutes of

2 AB 1387 provides that a public agency is not required to produce another environmental impact report for the impacts of a residential project on traffic if it meets certain criteria: not more than 100 units with a minimum density of 20 units per acre and a half mile from a transit stop; on an infill site in an urbanized area; is in compliance with the traffic, circulation, and transportation policies in the general plan or zoning ordinance of the city or county; meets certain other criteria; and the local jurisdiction requires that the mitigation measures in the report are implemented. CRA supports amendments to CEQA that would facilitate infill development in urbanized areas. The Assembly Natural Resources Committee passed AB 1387, 6-0. The Assembly Appropriations Committee passed it, 17-0, and the Assembly passed it, The Senate Environmental Quality Committee passed it, 7-0. The Senate passed it, 30-1, and the Assembly concurred with the Senate s changes. The Governor signed this bill September 29th. AB 2145 AUTHOR: Montanez (D) Hazardous Materials: Liability Support LOCATION: Assembly Judiciary Committee AB 2145 defines applicable law as meaning certain state statutory and common laws that impose liability on an owner or occupant of property for pollution conditions caused by a release or threatened release of hazardous material on, under, or adjacent to the property. This bill includes technical cleanup language for the California Land Reuse and Revitalization Act of 2004 (also known at AB 389) as well. AB 2145 has been referred to the Assembly Judiciary Committee. This bill did not make it out of its first house. The language in AB 2145 has been placed in AB 766 (Coto), which can be found under the Watch section of this report. AB 2547 AUTHOR: Ridley-Thomas (D) Corporation Taxes: Deductions: Brownfields Support LOCATION: Assembly Appropriations Committee AB 2547 relates to the Corporation Tax Law. Its provisions allow a deduction in the amount of interest received by financial corporations from loans made for the purpose of redeveloping brownfields that are located within blighted areas. A May amendment adds a provision requiring the Legislative Analyst to report in 2013 on the use and effectiveness of the tax deduction. The Assembly Revenue & Taxation Committee passed AB 2547 to the Assembly Appropriations Committee. The Appropriations Committee placed the bill on Suspense, and then heard it, and it remains in the Committee. SB 148 AUTHOR: Scott (D) Alcoholic Beverages: Licenses Support LOCATION: Chapter 625, Statutes of 2006 SB 148 addresses problem liquor licensees. Amendments in the Assembly shifted control to the state by authorizing the Department of Alcoholic Beverage Control to impose conditions that it determines are reasonable pursuant to its investigation. The bill deletes certain requirements relating to required evidence for imposition of conditions and requires the department to adopt conditions or notify the local government body of its determination that there is not substantial evidence. It further provides additional bases for the suspension or revocation of an alcoholic liquor license, when a licensee fails to take required steps. SB 148 passed the Assembly Governmental Organization Committee, 14-0, and was referred to the Assembly Appropriations Committee, where it passed, 18-0, and the Assembly passed it, The Senate concurred, 28-10, with the changes that had been made in the Assembly. The Governor signed SB 148 on September 29 th. SB 354 AUTHOR: Escutia (D) Hazardous Materials Release: Remediation Support LOCATION: Chapter 523, Statutes of 2006 Amendments removed the Brownfields Task Force language and inserted provisions to remove specific exceptions to the definition of property in the California Land Environmental Restoration and Reuse Act. The exceptions were: a site that is or becomes subject to a specified enforcement action or order issued by a California regional water quality control board (regional board) or a specified enforcement action by the department, a site that is or becomes subject to a corrective action requirement or for which a no-furtheraction determination has been issued by a regional board or a local oversight program as specified, unless a specified finding is made 2

3 SB 354 passed the Senate Environmental Quality Committee, 6-1, to the Appropriations Committee, where it was approved and sent to the Senate Floor, where it was passed, The Assembly Environmental Safety and Toxic Materials Committee passed the bill, 7-0, and the Assembly Appropriations passed it, The Assembly passed SB 354, 78-0, and the Senate concurred, 40-0, with the Assembly s changes. The Governor signed SB 354 on September 29 th. SB 1266 AUTHOR: Perata (D) Highway Safety, Traffic Reduction, Air Quality Support LOCATION: Chapter 25, Statutes of 2006 SB 1266 enacts the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of It authorizes a $ billion of general obligation bonds for transportation corridor improvements, trade infrastructure and port security projects, school bus retrofit, transportation improvements, transit and rail improvements, state-local transportation projects, transit security, local bridge retrofit, highway-railroad grade and crossing projects, highway rehabilitation, local street and road improvements. SB 1266 has passed the Assembly and the Senate and has been signed by the Governor. It will be Proposition 1B on the November ballot. SB 1689 AUTHOR: Perata (D) Housing and Emergency Shelter Trust Fund Act Support LOCATION: Chapter 27, Statutes of 2006 SB 1689 enacts the Housing and Emergency Shelter Trust Fund Act of It authorizes the issuance of $2.85 billion of general obligation funds of which the proceeds will be used to finance various existing housing program, capital outlay related to infill development, brownfield cleanup that promotes infill development, and housing-related parks. The bill establishes the Transit-Oriented Development Implementation Program to receive funding from the proceeds of the bond act. SB 1689 passed the Assembly and Senate and was signed by the Governor and will be Proposition 1C on the November ballot. SB 1798 AUTHOR: Perata (D) California Environmental Quality Act Support LOCATION: Assembly SB 1798 relates to existing law that exempts from California Environmental Quality Act a residential project on an infill site within an urbanized area that meets specified criteria. This bill redefines infill to exclude from the condition regarding the creation of parcels those parcels assembled as part of a redevelopment implementation plan. A May amendment adds a provision defining urban use as a facility or use that is not a qualified urban use or any combination of uses that include a facility or use that is not a qualified urban use. SB 1798 is a remake of Senator Perata s SB 832, which passed the Senate and was sent to the Assembly. The Senate Environmental Quality Committee passed SB 1798, 6-0. The Senate passed it, The Assembly Natural Resources Committee passed, 10-0, and it went to the Assembly Floor where it was placed in the Inactive File. SCA 7 AUTHOR: Torlakson (D) Transportation Investment Fund Support LOCATION: Chaptered; Resolution Chapter No. 49 SCA 7 proposes an amendment to the Constitution to authorize a suspension, in whole or in part, of a transfer of motor vehicle fuel sales tax funds to the Transportation Investment Fund for a fiscal year under certain circumstances. It prohibits a suspension from occurring more than twice during a period of 10 consecutive fiscal years and it also prohibits a suspension in any fiscal year in which a required repayment from a prior suspension has not been fully completed. SCA 7 will appear as Proposition 1A on the November ballot. OPPOSE AB 1990 AUTHOR: Walters (R) Eminent Domain Oppose LOCATION: Assembly 3

4 AB 1990 prohibits a city, county, special district, school district, community redevelopment agency, community development commission, or joint powers agency from exercising the power of eminent domain to acquire any real property if ownership of the property will be transferred to a private party or private entity. An amendment provides an exception for public utilities. In 2005, Assembly member Walters authored a similar bill, AB 590, prohibiting eminent domain for economic development, which was defeated in committee. The Assembly Housing & Community Development Committee failed the bill, 5-2. This bill is dead. AB 2092 AUTHOR: Hancock (D) Hazardous Substance Release: Vapor Intrusion Oppose LOCATION: Vetoed AB 2092 amendments require that CalEPA coordinate with an ombudsperson, Department of Toxic Substance Control (DTSC), state water board, the regional water boards, the California Integrated Waste Management Board, and specified local agencies to compile a summary of sites with known or potential vapor intrusion. The bill requires that this summary be posted on the CalEPA website. It also requires that this collaboration also develop a strategy and adopt an implementation schedule for identifying sites with potential vapor intrusion problems. A report on vapor intrusion must be submitted to the Legislature. The Assembly Environmental Safety and Toxic Materials Committee passed AB 2092, 4-2. The Appropriations Committee passed it, The Assembly passed the bill, The Senate Environmental Quality Committee passed, 5-2, and the Senate Appropriations Committee passed it, 8-5. The Senate passed the bill, 24-15, and the Assembly concurred, 43-33, with the Senate s changes. The Governor vetoed AB 2092 on September 29 th. AB 2922 AUTHOR: Jones (D) Redevelopment Low and Moderate Income Housing Fund Oppose Support Oppose LOCATION: Vetoed AB 2922 (Jones) no longer deals with increasing the set aside for the Low and Moderate Income Housing Fund. It requires the agency to record at the same time it records the covenants and restrictions on assisted housing a separate document, Affordable Housing Restrictions on Transfer of Property. For plans that were adopted prior to December 31, 1993, implementation plans must include a report on the use of affordable housing funds including verification that affordability covenants and restrictions have been recorded. The bill also grants standing for tenants of restricted housing units to sue when a covenant is breached. The Assembly Judiciary Committee passed AB 2922, 6-3. The Housing & Community Development Committee passed the bill, 4-1. The Assembly Appropriations Committee passed it, 12-5, with amendments. The bill passed the Assembly, The bill is referred to the Senate Judiciary Committee. In the last hours of the session before the summer recess, the rules were waived and the bill was allowed a hearing in the Judiciary Committee after the break where it passed, 3-2. The Senate passed it, 24-12, and the Assembly concurred with the Senate s changes. The Governor vetoed AB 2922 on September 30th. A troublesome change was made in the bill during the Legislature s last week that made its provisions retroactive. After analysis, CRA had to change its support position for the bill to an oppose. ACA 22 AUTHOR: La Malfa (R) Eminent Domain: Condemnation Proceedings Oppose LOCATION: Assembly ACA 22 would amend provisions of the Constitution that authorize governmental entities to take private property for public use to provide that the property must be owned and occupied by the condemnor. It provides that if the property ceases to be used for the stated public use, the former owner has the right to reacquire the property. Amendments define just compensation and provide that when property is no longer used for public use and is reacquired by its former owner, the property is to be appraised at its pre-condemnation value. The amendments also provide that the court in deciding on a taking is not limited to the administrative record. The bill was defeated in Assembly Housing and Community Development Committee, 2-4. SB 1206 AUTHOR: Kehoe (D) Redevelopment Oppose LOCATION: Chapter 595, Statutes of

5 The provisions in SB 1206 include: The bill tightens the statutory definition of blight including eliminating high turnover rates and impaired investments as indicators of economic blight. It deletes or other similar factors which limits the allowed blighting factors for all communities and into the unknown future to the list specified in law. Local jurisdictions are required to submit additional reports, as outlined in the bill, to the Department of Finance. These reports include projections on tax increment as well as project the population changes and the number of school-age children during the 35-year life of the redevelopment project area. Agencies must reimburse school districts for their part in preparing the reports. The Attorney General and Department of Finance are named as interested persons in challenges to plan adoptions and amendments. The bill removes antiquated subdivisions as a stand-alone condition of blight. It provides that blight findings shall be based on clearly articulated and documented evidence. The bill extends to all cities and counties the requirements that referendum petitions related to redevelopment plan adoption, amendment or modification be submitted within 90 days of the adoption of the ordinance instead of 30 days. Prohibits using tax increment funds for land acquisition, related site clearance, and design costs in the construction of a city hall or county administration building. The bill requires that, for those mergers of project areas not contiguous, substantial blight must be found to remain within one of the project areas and that the blight cannot be eliminated without the merger. SB 1206 was heard in Local Government Committee and passed, 5-0. The Senate Judiciary Committee passed SB 1206, 3-1. The Senate Appropriations Committee passed it, 8-2. The Senate passed the bill, with 7 not voting. The Assembly Housing & Community Development Committee passed it, 5-0. The Assembly Judiciary Committee passed the bill, 6-0, with amendments. More were made in Assembly Appropriations, which passed it, The Assembly passed it, 78-1, and the Senate concurred, 40-0, with the Assembly s changes. The Governor signed SB 1206 on September 29 th. SCA 15 AUTHOR: McClintock (R) Eminent Domain: Condemnation Proceedings Oppose LOCATION: Senate Judiciary Committee SCA 15 amends provisions of the Constitution that authorize governmental entities to take private property for public use to provide that the property will be owned and occupied by the condemnor. It provides that if the property ceases to be used for the stated public use, the former owner has the right to reacquire the property. SCA 15 failed the Senate Judiciary Committee, 2-3. It is dead. SCA 20 AUTHOR: McClintock (R) Eminent Domain: Condemnation Proceedings Oppose LOCATION: Senate Judiciary Committee This proposed constitutional amendment emulates the ballot measures McClintock and others that could qualify for the November ballot. It prohibits transfer from private party to private party for purpose of economic development, increasing tax revenue, and other similar purposes. It expands the definition of just compensation, gives the property owner the right to re-acquire the property if it is no longer used for the specific purpose for which it was condemned, that his/her property taxes be assessed at the precondemnation level, and that challenges to the taking shall not be limited to the administrative record. SCA 20 was introduced in January The Senate Judiciary Committee failed the bill, 1-2. WATCH AB 766 AUTHOR: Coto (D) Hazardous Materials: Liability LOCATION: Senate Judiciary Committee AB 766 defines the term applicable law as meaning certain state statutory and common laws that impose liability on an owner or occupant of property for pollution conditions caused by a release or threatened release of hazardous material on, under, or adjacent to the property. Makes clarifying changes with regard to the use of that term and makes other technical non-substantive changes. AB 766 received rule waiver to be heard in Senate Judiciary Committee after the summer recess. 5

6 Following a gut and amend before the break, this bill now contains the language from AB 2145 to do technical clean up of the California Land Reuse and Revitalization Act of 2004, or AB 389. AB 1020 AUTHOR: Hancock (D) Transportation Planning: Improved Travel Models LOCATION: Vetoed AB 1020 requires the Transportation Commission to adopt guidelines related to the travel demand models used in the development of regional transportation plans by regional transportation planning agencies. The bill requires a regional transportation planning agency for a region with a population of 800,000 or more to use those guidelines and specifies certain policy choices that a travel demand model shall be capable of evaluating. The Department of Transportation will assist the commission, on request, in this regard. AB 1020 passed, 8-5, the Assembly Committee on Transportation and went to the Local Government Committee, where it was amended and passed, 5-2. The Assembly Appropriations Committee also passed it, 13-5, and the Assembly passed it, The Senate Transportation & Housing Committee passed it, 8-5. The Senate Appropriations Committee passed it, 8-5. The Senate passed, 22-14, the bill and the Assembly concurred, 46-31, with the changes made in the Senate. The Governor vetoed AB 1020 on September 29 th. AB 1162 AUTHOR: Mullin (D), Salinas (D) CO-AUTHORS: Evans (D), Senator Kehoe (D) Eminent Domain LOCATION: Senate Rules Committee A gut and amend to AB 1162 inserted provisions that apply a moratorium to the exercise of eminent domain on owner-occupied residential property for private use, which is defined as any use other than use as a public facility or public works and is owned and operated by a public entity. The moratorium would be in effect until January 1, Further, amendments provided that the California Research Bureau of the State Library and the California Law Revision Commission submit reports to the Legislature on the exercise of eminent domain. AB 1162 was passed out of Senate Judiciary Committee, 5-2, on the condition that the authors of pending amendments agree on final language. Agreement was found on specifying that the moratorium would apply to those properties for which resolutions of necessity had not been adopted. AB 1162 was heard in and passed out of Senate Judiciary Committee, 5-2. It is in the Senate Rules Committee. AB 1279 AUTHOR: Ruskin (D) Hazardous Substances: Military Base Remediation LOCATION: Senate AB 1279 deletes provisions in existing law that prohibit the Director of Finance, not withstanding a specified provision of the Budget Act of 2003, for the and fiscal years, from eliminating any direct or indirect position in Department of Toxic Substances Control funded through an agreement. AB 1279 reached the Senate Floor where it was placed on the Inactive File. The bill passed the Assembly, 73-0, and the Senate Environmental Quality Committee, 7-0. It is on the Senate s Inactive File. AB 1340 AUTHOR: Assembly Environmental & Toxic Materials Committee California Environmental Protection Agency LOCATION: Senate Environmental Quality Committee AB 1340 makes a technical, non-substantive change to existing law that authorizes the Governor to appoint 3 deputies to the Secretary for Environmental Protection. The bill passed Assembly Environmental Safety & Toxic Materials Committee, 7-0, and the Assembly, It is in the Senate Environmental Quality Committee. AB 1893 AUTHOR: Salinas (D) Redevelopment LOCATION: Chapter 98, Statutes of 2006 AB 1893 relates to existing law which prohibits a redevelopment agency from using tax increment funds for the construction of a city hall or county administration building. The bill extends this prohibition to the acquisition of land upon which such building is to be constructed. AB 1893 was heard in the Assembly Housing & Community Development Committee where it passed, 4-0. AB 1893 passed the Assembly, The Senate Local Government Committee 6

7 passed the bill, 5-0, and the Senate passed it, The Governor signed it July 21st. AB 2144 AUTHOR: Montanez (D) Hazardous Materials: Land Use LOCATION: Chapter 562, Statutes of 2006 AB 2144 codifies the Memorandum of Agreement between DTSC and the Regional Water Quality Control Boards regarding agency oversight of remediation and provides for the electronic submission of environmental reports. AB 2144 passed out of the Assembly Environmental Safety & Toxic Materials Committee, 6-0. The Appropriations Committee passed it, Assembly passed The Senate Environmental Quality Committee passed the bill, 5-2. The Senate Judiciary Committee passed it, 3-2, and the Appropriations Committee passed it, 8-5. The Senate passed AB 2144, 24-15, and the Assembly concurred, 48-31, with the changes made in the Senate. The Governor signed AB 2144 on September 28 th. AB 2157 AUTHOR: Chu (D) Redevelopment: El Monte LOCATION: Assembly Housing & Community Development Committee AB 2157 authorizes the City of El Monte and the El Monte Community Redevelopment Agency to amend the Redevelopment Plan of the Downtown El Monte Redevelopment Project to allow it to carry out one or more transit-oriented redevelopment projects. AB 2157 reintroduces a concept from a bill that died in the 2005 session. CRA prefers a holistic approach to project area extensions rather than an agency-specific approach. This bill was referred to the Assembly Housing & Community Development and Local Government Committees. AB 2197 AUTHOR: DeVore (R) Redevelopment Plans: Tax-Increment Financing LOCATION: Assembly Local Government Committee AB 2197 prohibited a legislative body from adopting a redevelopment plan unless the county board of supervisors reviews and approves of the plan, amendment, or merger. The bill s language was deleted and replaced by a provision to require a California Research Bureau study of redevelopment oversight by other states. AB 2197 was passed 6-0 by the Assembly Housing & Community Development Committee. The Local Government Committee analysis noted that legislation was not necessary to direct the California Research Bureau to undertake such a study and the bill was not heard in that Committee. AB 2228 AUTHOR: Evans (D) Real Property Disclosures LOCATION: Senate Judiciary Committee AB 2228 requires a transferor of residential real property to disclose to a prospective transferee the availability of a report on specified environmental hazards applicable to the property. It further requires the transferor to provide the prospective transferee an opportunity to purchase the report and authorizes an environmental hazards expert to make and deliver the report or opinion on the disclosure of certain natural hazard disclosures upon the transfer of residential property. The Assembly Business and Professions Committee passed AB 2228, 8-0, and the Assembly passed it, It was referred to the Senate Judiciary Committee. AB 2286 AUTHOR: Torrico (D) Housing LOCATION: Senate A May amendment gutted AB 2286 provisions regarding the establishment of infrastructure financing districts in housing opportunity zones, and inserted a provision that upon approval of the Housing and Emergency Shelter Act of 2006 by November 2006 voters, the Secretary of Business, Transportation and Housing Agency would be directed to ensure that grants from the Regional Planning, Housing and Infill Incentive Account result in more housing, proper planning, and zoning for housing by local government entities. 7

8 AB 2286 passed out of the Assembly Local Government Committee, 5-0, and the Appropriations Committee passed it, The Assembly passed it, (with 10 not voting). AB 2331 AUTHOR: Villines (R) Prevailing Wages Exclusion: Qualified Transfers LOCATION: Assembly Labor & Employment Committee AB 2331 excludes from specified prevailing wage requirements any project that is funded in whole or in part by a qualified transfer by a city, county, or redevelopment agency of qualified real property to a nonprofit corporation. AB 2331 failed to pass the Assembly Labor & Employment Committee, 2-6. AB 2346 AUTHOR: Oropeza (D) Infrastructure financing districts: Los Angeles Harbor District LOCATION: Senate The language proposing the establishment of the Harbor District Development Authority in the City of Los Angeles has been deleted and replaced with language establishing an infrastructure financing district, Los Angeles Harbor District. AB 2346 passed, 7-0, the Assembly Committees on Local Government and Housing and Community Development. The bill passed the Assembly, The Senate Local Government Committee passed it, 4-0, and it has been sent to the Senate Floor where it ended up in the Inactive File. AB 2483 AUTHOR: Baca (D) State Highways: Sale of excess property LOCATION: Senate Transportation & Housing Committee AB 2483 authorizes the Department of Transportation, prior to disposing of its excess real property to first offer the property for sale, exchange, or lease at fair market value to a local agency for redevelopment purposes. It specifies that this provision does not apply to land of notable environmental value. AB 2483 passed Assembly Transportation Committee, 11-0, and the Appropriations Committee passed it, 18-0, with an amendment that provides that this bill does not supersede existing provisions governing surplus residential properties. The Assembly passed the bill It was referred to the Senate Transportation and Housing Committee where it failed to pass, 5-4 and 4 not voting. AB 2490 AUTHOR: Ruskin (D) California Toxic Release Inventory Program LOCATION: Vetoed AB 2490 relates to California Environmental Protection Agency s efforts pursuant to the federal Emergency Planning and Community Right-to-Know Act of 1986 (EPCRA). It enacts the Toxic Release Inventory Program Act of 2006, which requires Cal-EPA to establish the Toxic Release Inventory Program. Amendments provide that the CalEPA s Secretary make the determination when this is to occur and that the agency has a year to follow through on ensuring that California s requirements are maintained. Sites covered by the proposed Program are not those ordinarily handled by redevelopment agencies. The Assembly Environmental Safety & Toxic Materials Committee passed AB 2490, 5-2. The Appropriations Committee passed it, 12-5, with amendments. The bill passed the Assembly, It was passed out of the Senate Environmental Quality Committee, 5-2 and referred to the Senate Appropriations Committee. The Appropriations Committee moved, 8-2, the bill to the Senate Floor. It passed the Senate, 23-13, and the Assembly concurred, 45-32, with the Senate s changes. The Governor vetoed AB 2490 on September 28th. AB 2503 AUTHOR: Mullin (D) Affordable Housing LOCATION: Assembly Appropriations Committee 8

9 AB 2503 authorizes cities and counties to enter into a joint powers agreement to form an affordable housing pooling arrangement for the acquisition, construction, or development of housing that is affordable to lower income families within the jurisdiction of the joint powers agency, created by the agreement. The bill specifies how the public agencies may contribute funds to a housing trust fund of the joint powers agency and how the funds may be used. The Assembly Local Government Committee passed AB 2503, 5-0. The Housing & Community Development Committee passed it, 7-0. The Appropriations Committee placed the bill on the Suspense File. It was heard and remains in the Committee. AB 2610 AUTHOR: Keene (R) Redevelopment Agencies LOCATION: Senate Judiciary Committee AB 2610 extends specified immunity to a person who acquires property from an agency if the agency undertakes and completes a remedial or removal action or causes another person to undertake and complete that action and the agency is immune from liability as set forth in existing law. The Assembly Judiciary Committee passed AB 2610 with amendments, 9-0. It passed out, 7-0, of the Assembly Housing & Community Development Committee. The Appropriations Committee passed the bill, 18-0, and sent it to the Assembly Floor. The Assembly passed it, The Senate Environmental Quality Committee passed it, 6-0, and referred it to the Senate Judiciary Committee. AB 2682 AUTHOR: Daucher (R) Redevelopment: Tax increment revenues LOCATION: Assembly Appropriations Committee AB 2682 requires the share of property tax increment revenues diverted from local educational agencies to be directed to the county instead of the local educational agencies when a redevelopment agency is deactivated if the county is a low wealth county. This status will be in effect until the county reaches the average statewide percentage of countywide ad valorem property tax revenues. The bill defines low wealth county to be based on the percentage of countywide ad valorem property tax revenue collected and allocated for the fiscal year in relation to the average statewide percentage of those revenues. AB 2682 passed, 7-0, the Assembly Local Government Committee and was referred to the Appropriations Committee where it was heard and has remained. ACA 4 AUTHOR: Plescia (R) Transportation Investment Fund LOCATION: Assembly Appropriations Committee ACA 4 repeals the specific constitutional authority of the Legislature and the Governor to suspend Proposition 42. Specifically, if approved by the statewide voters, this bill would repeal constitutional provisions that allow suspension of all or part of the annual transfer of motor vehicle fuel sales tax revenues from the General Fund to the Transportation Investment Fund (TIF). ACA 4 was heard in Assembly Transportation Committee and passed, 13-0, to the Assembly Appropriations Committee. ACA 15 AUTHOR: Nation (D) Eminent Domain: Redevelopment LOCATION: Assembly Governmental Organization Committee ACA 15 is a Constitutional amendment relating to eminent domain. ACA 15 will require that a redevelopment agency make a written finding that a property has both physical and economic blight before it can be acquired through eminent domain. ACA 27 AUTHOR: McCarthy (R) State budget: capital outlay LOCATION: Assembly This proposed constitutional amendment would require that the Governor introduce a budget bill and that the Budget Bill passed by the Legislature and signed by the Governor allocate General Fund revenues to fund capital outlay projects of statewide significance and interest, as defined in the bill, in an annual amount determined pursuant to a specified schedule. This bill includes a prohibition on the use of General Fund revenues to fund the acquisition of property, where the power of eminent domain has been used (except for purposes of constructing a building at 9

10 California State University or University of California, a highway, or a water storage facility). SB 53 AUTHOR: Kehoe (D) Redevelopment Oppose Neutral LOCATION: Chapter 591, Statutes of 2006 SB 53 requires that when a redevelopment plan is amended to extend the time limit for exercising eminent domain, the agency make findings that significant blight remains within the project area and that it can not be eliminated without the use of eminent domain. The bill requires that agencies must provide a description of their program to use eminent domain and can contain restrictions. SB 53 passed out Senate Local Government Committee, 6-0, and the Senate, The Assembly Local Government Committee amended and then passed the bill, 7-0. With the amendments, CRA has removed its opposition to the bill. The Assembly Appropriations Committee passed the bill, SB 53 passed the Assembly, 79-0; the Senate concurred, 40-0, with the changes made in the Assembly. The Governor signed SB 53 on September 29 th. SB 223 AUTHOR: Torlakson (D) Infill Housing LOCATION: Assembly Appropriations Committee SB 223 establishes the Job-Center Housing Planning Program to provide loans to cities and counties to adopt specific plans that provide for additional infill housing opportunities. The bill requires, as a condition of loan eligibility, that a specific plan meet specified criteria, including that it covers an area that is predominantly urbanized and served by public transportation and that it allows for the development of at least 200 new housing units in a non-metropolitan area or 500 new units in a metropolitan area. An amendment made July 1 st allows loan funds to be used for plan-related costs including public participation activities outside of regularly scheduled meetings of the governing bodies such as charrettes. SB 223 passed out, 8-5, Appropriations Committee. It went to the Senate floor where it passed, The bill passed the Assembly Local Government Committee, 5-2, and the Housing and Community Development Committee, 5-0. It remains in the Assembly Appropriations Committee. SB 521 AUTHOR: Torlakson (D) Recording Fees: Contra Costa County n/a LOCATION: Assembly SB 521 would authorize Contra Costa County to institute an increase in real estate recording fees to be deposited in a fund for the development of very low-, low-, and moderate-income housing to be administered by the County. SB 521 passed out of Senate Local Government Committee, 4-3, and the Appropriations Committee, 8-5. The Senate passed it, The Assembly Housing and Community Development Committee passed it, 5-2, and the Assembly Local Government Committee passed it, 5-2. The Assembly failed to pass, It was amended the last week for amendments on the floor. The changes weren t enough to get the support needed to call for another vote and it did not leave the Assembly. It was placed on the Assembly Inactive File. SB 982 AUTHOR: Senate Environmental Quality Committee Hazardous Substances and Waste: Underground Storage: Enforcement LOCATION: Vetoed SB 982 requires an enforcement coordinator to carry out various duties. The bill requires the enforcement coordinator to additionally establish and maintain a website for receiving reports concerning violations of the hazardous waste control laws and any other statutes and regulations that govern hazardous waste. The State Water Resources Control Board is required to report quarterly on compliance with the underground storage tank laws. SB 982 passed Senate Environmental Quality Committee, 9-0, and the Senate, The Assembly Environmental Safety and Toxic Materials Committee passed it, 7-0, and it passed the Assembly Appropriations Committee, The Assembly passed it, The Senate concurred, 40-0, with the Assembly s changes. The Governor vetoed SB 982 on September 28 th. 10

11 SB 989 AUTHOR: Senate Environmental Quality Committee Hazardous Material: Bona Fide Ground Tenant LOCATION: Chapter 510, Statutes of 2006 SB 989 extends immunity in California Land Reuse and Revitalization Act of 2004 to bona fide ground tenant meeting the specified conditions in the Act. This bill passed Senate Environmental Quality Committee, 9-0, and the Judiciary Committee, 7-0. The Senate passed it, The bill was amended in the Assembly Environmental Quality and Toxic Materials Committee to make it consistent with the California Land Restoration and Reuse Act. It was passed, 7-0, and the Assembly Judiciary Committee passed it, 9-0. The Assembly Appropriations Committee passed the bill to the Consent Calendar. The Assembly passed it, 78-0, and the Senate concurred, 40-0, with the Assembly s changes. The Governor signed SB 989 on September 27 th. SB 1024 AUTHOR: Perata (D) Public Works and Improvements: Bond Measure Watch LOCATION: Assembly SB 1024 enacts the Safe Facilities, Improved Mobility, and Clean Air Bond Act of 2005 to authorize state general obligation bonds for specified purposes, including levee improvements, restoration of Proposition 42 transportation funds, port infrastructure and security projects, trade corridors of significance, emissions reduction projects, environmental enhancement projects, and transportation needs in cities and counties relative to housing as well as transit-oriented development, flood control, passenger rail improvement, housing, regional growth, and infill development. SB 1024 appropriates unspecified amount of general obligation bonds for the above purposes. It passed the Senate Transportation and Housing Committee, 10-3, and passed the Senate, No action has occurred on the bill in the Assembly. SB 1052 AUTHOR: Kehoe (D) Subdivisions: Appeals LOCATION: Chapter 247, Statutes of 2006 SB 1052 revises the Subdivision Map Act to recast provisions requiring that a hearing be held within a specified time after the date of a request filed by the sub-divider or the appellant. It also provides, regarding appeals to the legislative body, that if there is no regular meeting of the legislative body during the specified time for which the specified notice can be given, or within a specified time from receipt of the request, the appeal may be heard at the next regular meeting or within 60 days, whichever is shorter. SB 1052 passed out of the Senate Local Government Committee, 7-1. The Senate passed it, 29-3, and the Assembly Local Government Committee passed it, 7-0. The Assembly passed the bill, 70-1, and sent it to the Senate for concurrence. The Senate concurred, 30-3, with the Assembly amendments. The Governor signed SB 1052 on September 14 th. SB 1210 AUTHOR: Torlakson (D) Eminent Domain Oppose Neutral LOCATION: Chapter 594, Statutes of 2006 SB 1210 amends sections of the Eminent Domain Law which are applicable to all public agencies that use eminent domain. The bill contains the following provisions: The bill makes it more time-consuming and more difficult for agencies to obtain orders of prejudgment possession. An exception is provided for public utilities which allow an accelerated process in the event of an emergency situation. In current law, when a court determines that the public entity s offer was unreasonable and defendant s demand was not, the public entity is responsible for the dependant s costs including litigation expenses. The bill adds a definition for litigation expenses, reasonable attorney s fees and costs, including reasonable expert witness and appraiser fees, which is current practice. Following a notice of condemnation or an offer to purchase under a threat of eminent domain, this bill requires the public entity to pay for the independent appraisal of the property by a licensed appraiser. The appraisal cost is capped at $5,000. The bill prohibits an officer who is also a member of the governing body of an organization that has an interest in, or to which the public agency may transfer an interest in, property that the public agency may acquire by eminent domain from voting on any matter affecting that organization. The bill provides that an amendment to a redevelopment plan extending the time limitation on exercising the power of eminent domain requires findings of substantial 11

12 remaining blight and that the blight cannot be removed without the use of eminent domain. SB 1210 passed out of the Senate Local Government Committee, 4-1. The Judiciary Committee heard the bill and it passed, 3-1, with amendments. The Senate Appropriations Committee passed it, 8-3, with amendments. The Senate passed, SB 1210 passed the Assembly Housing & Community Development Committee, 7-0, the Assembly Judiciary Committee, 7-0, and the Assembly Appropriations Committee passed it, The Assembly passed it, 78-0, and the Senate concurred, 32-0, with the Assembly s changes. The Governor signed SB 1210 on September 29 th. CRA no longer opposes SB 1210 and has taken a neutral position. SB 1317 AUTHOR: Torlakson (D) Property Tax Revenue Allocations: Public Utilities: Qualified Property LOCATION: Chapter 872, Statutes of 2006 SB 1317 requires that the assessed value of qualified property placed in service by a public utility be allocated entirely to the county in which the property is located. It also requires that the balance of these revenues remaining after these allocations have been made be allocated to fire districts, water districts, cities, or the county. Late amendments have clarified that the Bureau of Equalization is not required to modify its computerized tax rolls and ties implementation of this bill to the passage of AB 2670 (Aghazarian) Property taxation: regulated railway companies. SB 1317 was passed, 3-2, by the Senate Local Government Committee. The Appropriations Committee passed the bill, The Senate passed it, The Assembly Local Government Committee passed it, 6-0. The Assembly Appropriations Committee passed the bill, The Assembly passed, 59-18, and the Senate concurred, 32-4, with the changes made in the Assembly. The Governor signed SB 1317 on September 30 th. SB 1650 AUTHOR: Kehoe (D) Eminent Domain LOCATION: Chapter 602, Statutes of 2006 SB 1650 would require public entities to lease a condemned property to the original owner if the entity is not going to use the property for a public use in the next two years. In addition, if a public entity uses eminent domain to take private property for a public use, but later decides to use the condemned property for another public use, SB 1650 requires a two-thirds vote by the public entity s governing body. If a public entity fails to justify the change in public use, SB 1650 requires the public entity to offer a first right of refusal to sell the property back to the original property owner at an affordable price. If the condemned property was a single-family residence and the owners are low- or moderate-income, SB 1650 requires the public entity to sell the property to the original property owners at the acquisition price. If the original owner declines the first right of refusal, SB 1650 requires the public entity to sell the property as surplus property and any financial gain paid to the former owner. The bill outlines what constitutes a diligent effort by the public entity in locating the original owner. The Senate Judiciary Committee passed the bill, 4-0. The Senate passed SB 1650, The Assembly Housing and Community Development Committee passed it, 7-0, with clarifying amendments and it passed the Assembly Judiciary Committee, 7-0. The Assembly Appropriations Committee voted it out, 18-0, and to the consent calendar. SB 1650 passed, 77-0, and the Senate concurred, 40-0, on the Assembly amendments. The Governor signed SB 1650 on September 29 th. SB 1754 AUTHOR: Lowenthal (D) Housing and Infrastructure Zones LOCATION: Senate Appropriations Committee SB 1754 establishes a pilot project allowing for the formation, under criteria developed by councils of government and the Secretary of the Business Transportation and Housing Agency, of 100 housing and infill infrastructure zones. It authorizes the Economic Development and Infrastructure Bank to finance the specified construction, expansion, improvement, seismic retrofit, or rehabilitation of real or other tangible property, for various purposes. The League of California Cities supports SB The bill has been referred to the Senate Local Government and Transportation & Housing Committees. SB 1754 passed, 3-2, out of Local Government Committee. The Transportation & Housing Committee passed it, 7-5. The Appropriations Committee did not hear the bill. 12

13 SB 1809 AUTHOR: Machado (D) Redevelopment: Eminent Domain LOCATION: Chapter 603, Statutes of 2006 SB 1809 amends current requirement that a legislative body record a statement upon the adoption of a redevelopment plan to reflect that property is located within a redevelopment project area, adding a requirement that recordation take place within 60 days and requiring a statement whether the plan authorizes use of eminent domain and what limitations are imposed on that use. SB 1809 went to the Senate Judiciary Committee, where it passed, 4-0. Because the cost to the state is insignificant and revenues will not be affected per Senate Rule 28.8, the Appropriations Committee sent SB 1809 to the Senate Floor without a hearing. The Senate passed it, SB 1809 passed the Assembly Housing & Community Development Committee, 7-0, and the Assembly Judiciary Committee, 9-0. The Assembly Appropriations Committee passed it, 18-0, to Consent Calendar. It passed the Assembly, The Governor signed SB 1809 on September 29th. SCA 21 AUTHOR: Runner G (R) State Budget LOCATION: Senate Budget and Fiscal Review Committee SCA 21 requires the Governor's Budget to contain a separate estimate of General Fund Revenue, and of the principal and interest payable on outstanding General Fund-supported debt. SCA 21 was introduced in January 2006 to implement the Governor s Strategic Growth Plan. It was referred to Senate Committees on Budget and Fiscal Review and Elections Reapportionment and Constitutional Amendments. The Senate Committee on Budget and Fiscal Review has held the bill. SCA 24 AUTHOR: Torlakson (D) Eminent domain LOCATION: Senate Education Committee SCA 24 is a proposed constitutional amendment declaring that public use does not include the taking of owner-occupied residential property for private use. This amended language was taken from SCA 12, which was heard in Senate Judiciary Committee in SCA 12 was then amended to cover educational funding of before and after school programs. The bill is in Senate Education Committee. The Legislative Bill Report is adapted from the bill report prepared for CRA by State Net. Members can access CRA s tracking report, which State Net updates daily, by going to the Legislation page on the members-only website, and clicking on Legislative Activity and Resources. Please contact Lillian Henegar, lhenegar@calredevelop.org, for more information. 13