M E M O R A N D U M. Townsend Public Affairs, Inc Legislative Summary for City of Walnut Creek

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1 ATTACHMENT M E M O R A N D U M To: From: Justin Wedel, Mayor, City of Walnut Creek Dan Buckshi, City Manager, City of Walnut Creek Christopher Townsend, President Niccolo De Luca, Senior Director Alex Gibbs, Senior Associate Date: October 19, 2018 Subject: Townsend Public Affairs, Inc Legislative Summary for City of Walnut Creek LEGISLATIVE SESSION Governor Brown considered 1,217 regular session bills this year and vetoed 201, which marks the highest veto rate (16.5 percent) of any of his terms as Governor. The Governor s veto percentage during his past two terms has ranged from 12 to 16.5 percent, a vast difference from his average veto percentage of 4.6 from 1975 to Governor Brown has considered nearly 20,000 bills during his 16-year combined tenure as California s Governor. The Legislature is currently in interim recess and will return on December 3rd to swear in the new Legislature. After being sworn into office, the new legislators will be able to begin introducing legislation; however, there will not be any significant legislative activity until the Legislature reconvenes in January. Below is a recap of some legislative highlights from o Homelessness. Cities and counties have the direct, daily perspective and responses to conditions that contribute to homelessness in their areas; however, state and federal funding is needed to provide additional tools and support to maintain access to support services, treatment, housing, and jobs. There were two major proposals that were introduced to provide cities resources to address homelessness; Senate Bill 912 (Beall) and Assembly Bill 3171 (Ting) sought to provide cities with additional funding and resources. The City supported both pieces of legislation. Summary. While neither SB 912 nor AB 3171 became law, the efforts to create resources to address issues related to homelessness resulted in the creation of the HEAP program, including $500 million in funding in the State Budget. o Affordable Housing. With the dissolution of redevelopment came the decrease in affordable housing funds. In addition, due to the high cost of housing in the Bay Area and state, legislative support for low-income residents and working families is needed. State Capitol Office 925 L Street Suite 1404 Sacramento, CA Phone (916) Fax (916) Federal Office 600 Pennsylvania SE Suite 207 Washington, DC Phone (202) Fax (202) Southern California Office 1401 Dove Street Suite 330 Newport Beach, CA Phone (949) Fax (949) Central California Office 744 P Street Suite 308 Fresno, CA Phone (949) Fax (949) Northern California Office 300 Frank Ogawa Plaza Suite 204 Oakland, CA Phone (510) Fax (510)

2 There were multiple pieces of legislation this session that sought to encourage more affordable housing, build more housing for the homeless, remove certain barriers that prevent accessory dwelling units, and other items. Summary. While a handful of affordable housing bills were signed into law, legislators have indicated that this is a policy area of real focus for the 2019 session. o Various Cannabis Legislation and Regulations With over 50 cannabis bills introduced in the Assembly and Senate this session, TPA tracked a lot of cannabis-related legislation, though recommended few for the City to take formal action on. These include legislation addressing taxes, creating a new banking system, and allowing cities to select where temporary, special events take place. Additionally, the Administration drafted and revised the emergency regulations which will become final by the end of the year. Summary: The special events bill was signed into law, the bill creating funding for cities with equity programs was signed into law, but the other measures that advanced to the Governor were vetoed. We anticipate that many of the bills that were unsuccessful this year will be reintroduced next session. Additionally, we are already hearing a significant amount of interest in possible legislation on testing requirements, new license types, and hemp consumer products. o Small Business Assistance Act of 2018/AB 2463 The Governor s budget included $20 million annually for five years to fund this program which seeks to provide matching funds for federally designated small business assistance centers. The bill the City supported, AB 2463, would establish a statutory program that would use $17 million of $20 million as capitalization. This supports the City goals of providing help to small businesses. Summary: This legislation was merged with the Budget process and ultimately approved. o Community Redevelopment Law of 2018/AB 3037 This bill would allow cities and counties to create redevelopment housing and infrastructure agencies (RHIAs) to fund infrastructure and would require that 30% of funding generated be set aside for affordable housing activities. Summary: As expected, AB 3037 did not make it to the Governor s desk but there is a growing coalition supporting the same effort for the 2019 session. Net Neutrality Senate Bill 822 establishes a strong Net Neutrality policy in California by banning practices by Internet Services Providers (ISPs) that block or slow access to websites or that discriminates among websites or applications. The bill empowers the California Attorney General to enforce and hold ISPs responsible for violations. SB 822 ensures that consumers who pay for internet access decide whether, when, and for what purpose to access the internet. This supports the City goal of providing open, free internet and closing the digital divide. TPA also provided detailed updates on Federal Communications Commission actions governing net neutrality at the national level and has continued to engage on the topic with Walnut Creek s elected representatives. Summary: SB 822 was signed into law. Page 2

3 Priority Legislation AB 2923 (Chiu) BART: Transit-Oriented Development AB 2923 (Chiu) Bay Area Rapid Transit: Transit-Oriented Development was introduced in the CA State Assembly on February 16, 2018 by coauthors Assembly Members David Chiu (D - San Francisco) and Tim Grayson (D - Concord). According to the authors, the bill was introduced as a solution to the state s housing crisis, which is particularly acute in the Bay Area, in an attempt to expedite the construction of housing units around Bay Area Rapid Transit (BART) stations. The City of Walnut Creek lobbied heavily on AB 2923 throughout the 2018 legislative session. In February, the same month the bill was introduced, City delegates attended a working group meeting with Assembly Member Tim Grayson in his Concord district office to voice their concerns with the newly introduced bill, especially regarding the removal of local control. Throughout the process Townsend Public Affairs staff met with stakeholders in Sacramento and testified on behalf of the Walnut Creek in opposition to AB 2923 in committees, including the Assembly Local Government, Assembly Natural Resources, Senate Transportation and Housing and Senate Governance and Finance Committees. In June, Walnut Creek delegates, including Mayor Pro Tem Cindy Silva and staff, travelled to Sacramento to meet with a coalition of stakeholders, including other affected East Bay city mayors and council members, Assembly Member Tim Grayson, Assembly Member Catharine Baker, BART Board Member Nik Josefowitz and others to discuss potential amendments to the bill, including an amended definition of the ½ mile station entrance radius. In July, Walnut Creek delegates, including Mayor Pro Tem Cindy Silva, also attended a final local stakeholders meeting with Assembly Member Catharine Baker and Assembly Member David Chiu in his San Francisco district office to discuss potential amendments and seek further clarification on key points, such as the collection of local fees. In September, after an amended bill passed out of the legislature, Townsend Public Affairs staff met with the Governor s Office to discuss the lack of clarity remaining in the bill, the need for further reconsideration, and to request the Governor s veto. Later that month, Senator Steve Glazer and Assembly Member Catharine Baker, along with local East Bay stakeholders, including Walnut Creek elected officials, held a press conference at the City s BART station to request the Governor s veto. The bill was signed into law by Governor Jerry Brown on September 30, Several questions regarding the implementation of the bill still remain, most notably the collection of local fees. The authors and bill language were unable to clearly state if properties owned by BART but leased to third parties would still be subject to the collection of property taxes as a public agency. Currently, affected municipalities and local government stakeholder associations, such as the California League of Cities, are currently reviewing grounds for a legal challenge. Some proponents of such a challenge are citing the potential unconstitutionality of stripping local authority from one publicly elected body and transferring it to another without the consent of both entities as grounds for litigation. TPA is continuing to work with the state and stakeholders to ensure Walnut Creek is kept informed and up to date on the City s responsibilities regarding the implementation of AB Page 3

4 2018 Legislative Agenda TPA worked closely with the members of the Walnut Creek Legislative Subcommittee to update the City s 2017 Legislative Agenda. After consulting the City s legislative subcommittee, TPA then brought revised drafts to each member of the City Council for their input on areas of priority legislation. All of the revisions were included in a comprehensive draft document that was then brought before the entire City Council for debate and discussion. After deliberation and further direction from Council, TPA worked with staff in the City Manager s office to finalize the 2018 Legislative Agenda that served as the guiding document for which bills TPA would bring to the attention of the City and take potential action on going forward. Below are bills that were flagged for action through the 2017 and 2018 legislative platforms. Protect Local Control SB 827 (Wiener) Planning and Zoning: Transit Rich Housing The bill sought to exempt specified housing projects from locally developed and adopted building height limitations, densities, parking requirements, and design review standards. It also attempted to implement housing/building standards within one-half mile of a major transit stop, or along a high-quality transit corridor without regard for local ordinances. TPA lobbied heavily against the bill and it was ultimately defeated in the Senate Transportation and Housing Committee. TPA has continued discussions with the author s office and has learned that the bill will likely be reintroduced in AB 1912 (Rodriguez) Public Employees Retirement: Joint Powers Agreement: Liability This bill would have made any city who is currently a member of or who joins a Joint Powers Authority, liable for the PERS responsibility for all employees of said JPA. The bill was retroactive and would have applied to any JPA s Walnut Creek was currently a member of. TPA lobbied heavily against the bill and it was ultimately amended to solely specify the conditions of PERS responsibilities for any new JPA s which are formed. The bill passed out of both houses and was signed by the Governor on September 29, The bill could potentially impact the City of Walnut Creek s PERS obligations when contracting with a Joint Powers Authority in the future. SCA 20 (Glazer) Local Sales Tax: Online Sales The bill sought to reallocate the existing Bradley Burns sales tax formula for purchases made online. The bill would have restructured existing sales tax agreements with retailers and municipalities and instead made the location of point of delivery the entity who would receive online sales taxes. The bill was unclear in how it could potentially impact Walnut Creek, and TPA worked with the City Manager s office to seek further clarification before taking an official City position. TPA then worked with the author s office to ensure that Walnut Creek would be able to maintain any existing agreements in place; however, the bill ultimately failed to advance out of the Senate Appropriations Committee. The bill will likely be reintroduced next legislative session. Promote Public Safety AB 748 (Ting) Peace Officers: Video & Audio Recordings: Disclosure Currently, audio and video recordings taken by law enforcement officers (typically body camera Page 4

5 footage) are subject to the California Public Records Act for requests by the public, unless they are related to investigation and their release would endanger the safety of a person involved in the investigation or endanger the successful completion of the investigation. AB 748 would keep these provisions in place; however, it would require after July 1, 2019 that any audio or video recordings of a critical incident be made available within 45 calendar days, unless it met the above criteria and the reason for withholding said information would need to be reiterated every 30 days. The bill was signed into law by Governor Brown and could potentially impact Walnut Creek Police Department s operations regarding disclosure of body camera and other recordings. SB 1421 (Skinner) Peace Officers: Release of Records The bill removes specified privacy protections for law enforcement agencies in California with regards to law enforcement officer records, making them now subject to the California Public Records Act. In an author s statement, Senator Skinner said the main focus of the bill would be the release of records related to officer misconduct, especially in critical incidents. The bill was signed into law by Governor Brown and could potentially impact the Walnut Creek Police Department s operations regarding the disclosure of past officer records. Enhance Environmental Quality Proposition 68 Park Bond TPA had been previously working with the bond s author and other key stakeholders in the legislature since 2016 to advance SB 5, which eventually became Prop 68. Prop 68 was passed by California voters in June and includes roughly $4B in funding for parks, water, and recreation infrastructure across the state. With direction from the Walnut Creek City Council, TPA lobbied heavily for the inclusion of aquatic centers as an eligible funding category within the bond for the purpose of rehabilitating the Clarke Memorial Swim Center at Heather Farm Park. TPA worked with a coalition of stakeholders to lobby both authors offices and was able to get swim facilities like those at Heather Farm included in multiple competitive grant programs funded through Prop 68. Prop 68 funds are now beginning to be released and TPA is currently working with Walnut Creek and agency staff to ensure that Walnut Creek is in the best position possible, through public comment and amending grant guidelines, to capitalize on competitive grant funding. AB 1884 (Calderdon) Single Use Plastic Straws AB 1884 prohibits a food facility, where food may be consumed on the premises, from providing single-use plastic straws to consumers unless requested by the consumer. This legislation seeks to provide an opportunity for people to change their behavior towards single-use plastic items. This measure aligns with the City goal of environmental stewardship. The Governor signed this bill on September 20, and it will impact specified businesses within the City of Walnut Creek. SB 100 (De Leon) Renewable Energy SB 100, authored by Senator Kevin de León, was introduced last year to increase the State s procurement of renewable energy. The Legislature approved the bill during the last days of Session and sent it to Governor Brown. Specifically, the bill would increase the requirement for Page 5

6 Federal renewable energy to 50 percent by 2026, 60 percent by 2030, and 100 percent by The Governor signed this bill on September 10, and it may impact the City of Walnut Creek s choices when contracting with energy suppliers in California. Washington D.C. Advocacy Trip In January 2018, Mayor Justin Wedel attended the U.S. Conference of Mayors in Washington, DC. TPA facilitated meetings adjacent to the Conference with stakeholders and decision-makers in the federal government. In order to do so, TPA identified federal priorities, recommended advocacy points, proposed an itinerary, scheduled a day of meetings, drafted meeting notes, and conducted preparation sessions prior to scheduled federal meetings. TPA conducted these efforts for the following meetings: o Office of Senator Kamala Harris o Senator Dianne Feinstein o Office of Congressman Mark DeSaulnier o Senate Committee on Commerce, Science, and Transportation Walnut Creek and TPA conducted in-depth discussions on the need for changes in Public Education and Government Access (PEG) fee structures for municipalities and the importance of protecting local control over wireless infrastructure in the face of draft legislation in the Senate. After the meetings, TPA produced meeting notes and follow-up items that TPA would be engaging on for the City. Federal Wireless Telecommunication Facilities TPA has been working with several coalitions of local government stakeholders and advocating against major federal actions, both legislative and regulatory, that would limit local authority over infrastructure. Late in 2017, TPA discovered that members of Congress were crafting legislation similar to SB 649. On Walnut Creek s behalf, TPA worked closely with Senate Commerce, Science, and Transportation Committee staff on draft text to ensure that municipal priorities were reflected in introduced language. While TPA was able to mitigate the impacts on municipalities by lengthening restrictive deadlines on permit consideration, the bill as introduced (the STREAMLINE Small Cell Deployment Act, or S. 3157) still included too many provisions detrimental to the City of Walnut Creek. TPA engaged stakeholders through local government coalitions and got the word out about the importance of blocking this legislation. Although a hearing was held on July 25, 2018, no further action has been taken on the bill. If no action is taken before the end of Calendar Year 2019, the bill will need to be reintroduced in the 116 th Congress. TPA also advocated against the proposed Federal Communications Commission (FCC) rule that would have similarly detrimental effects on Walnut Creek s authority over local infrastructure. Although TPA had many allies in this effort, the 3-1 party line vote on Wednesday, September 26 approved the rule. TPA has already been in contact with members of stakeholder coalitions to ensure that Walnut Creek can sign onto an amicus brief for lawsuits against the FCC s new rule, expected to be filed in the coming days. Page 6

7 Federal Funding The Trump Administration published the annual President s Budget Request in February The President s Budget Request included cuts to a variety of crucial programs to Walnut Creek member cities, including the Community Development Block Grant (CDBG) Program, HUD-VASH vouchers and other homelessness funding, transportation grants like TIGER (now BUILD), and the Land and Water Conservation Fund. Immediately after publication, TPA helped the City of Walnut Creek outline their priority lines of funding, communicate that in an appropriations letter, and file appropriations requests with their congressional representatives. Throughout the year, TPA continued to advocate for robust funding levels for federal programs that support investment in local infrastructure, resulting in a vast majority of priority programs receiving funding or proposed funding at levels higher than the President s Budget Request, and in most cases equal to or higher than the Fiscal Year 2018 enacted funding levels. As of writing, Congress has not finalized full Fiscal Year 2019 funding for all programs, and is operating on a Continuing Resolution through December 7, Looking Forward to 2019 Sacramento Advocacy Trip TPA annually coordinates a state advocacy trip to Sacramento. TPA arranges the meetings, prepares background briefings, drafts documents to present, speaking points for meetings, and handles the follow up on any outstanding matters and next steps. The state advocacy trip is an important tool when laying the groundwork for future state funding. In order to support the efforts of the advocacy trip and further the City s legislative and funding agenda, TPA provides for the development of appropriate materials for meetings and maintains records such as: Prepare itineraries, agendas, memos, and talking points for the meetings and other advocacy efforts that support the City s priorities; Develop relevant materials to document and support the City s positions, including associated research Legislative Updates In addition to regular legislative updates and other communications we send to the City Team, TPA suggests verbal reports to the City Council when the State Legislature is on recess. For example, we would report out in April while they are on Spring Recess and during July while they are on Summer Recess. Page 7