DATE: April 1, 2024
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
FROM: Marlene Subhashini, Assistant City Manager
Dane Hutchings, Managing Director, Renne Public Policy Group DEPARTMENT: City Manager
SUBJECT: 2024 STATE LEGISLATIVE UPDATE
RECOMMENDATION
It is recommended that the City Council, by Minute Order, receive and accept an informational report on the 2024 State Legislative Update.
EXECUTIVE SUMMARY
State legislation has the potential to have direct and significant impacts on a city’s legal authority; fiscal, operational, and environmental stability. Active legislative engagement protects and enhances the interests of Foster City’s residents and businesses.
Ensuring that Council, city staff and the community are aware of policies impacting our community is an important step when conducting City business.
In an effort to advance the City’s public policy advocacy efforts, the City’s legislative consultant, Renne Public Policy Group (RPPG) has been tracking priority legislation on behalf of the City. Some of these bills will have an impact in our community as well impact the City’s ability to retain local decision making, conduct operations and/or create new financial and legal liability.
BACKGROUND
After working closely with the City’s legislative consultant, the City Council adopted its first comprehensive state legislative platform at the December 18, 2023, Council
meeting (Attachment 2). Having a legislative platform is critical in the effectiveness of an overall legislative advocacy program as it provides broad policy statements that enables the City and its legislative advocacy firm to sift through the thousands of legislative proposals introduced each legislative session while elevating those measures that fall within the scope of the platform. The practice of adopting a legislative platform and policy is commonplace for public agencies that wish to have a sustained and engaged presence in the State legislative process. Upon adopting the Legislative Platform, Council requested that City staff along with our legislative consultant provide at least three (3) formal legislative updates to Council during a regularly scheduled meeting. Such updates are intended to provide Council with the information about the Legislative process and policy themes of interest to Council.
January 3, 2024, was the start of the 2024 legislative session. Governor Newsom unveiled the Administration’s FY24-25 budget proposal. The proposal was reflective of reduced state revenues. The forecast - which was originally projected to be a $38B deficit ballooned to nearly $70B by February. As expected, the Governor did not include the San Mateo County Vehicle Licensing Fee (VLF) shortfall in his budget. Although RPPG on behalf of the City has been successful in years past in securing the City’s portion of its VLF backfill, given the growing budget deficit, it is unlikely that a backfill will be included in this year’s final FY24-45 state budget. While negotiations will take place between the Newsom Administration and the Legislature, we will have a better sense of the overall deficit when Governor Newsom presents his updated budget proposal known as the “May Revise” which typically happens mind-May. From there, the Legislature must approve a balanced state budget no later than June 15 and the Governor has until June 30 to sign the budget.
February 16 marked the bill introduction deadline for the 2024 legislative session. There have been 2,231 pieces of new legislation introduced. Once introduced, all bills have to remain unchanged for 30 days; once this waiting period is over, they can have their language substantially altered. Additionally, about 400 bills that were introduced last year, but that did not make it to the Governor’s desk, remain active.
March 22 was the “amendment deadline” meaning that substantive language needs to be inserted in legislation in order for a piece of legislation to be referred to the appropriate policy committee. Lawmakers departed for their 10-day legislative spring break on March 23 and will resume session on Monday April 1. Over the next two months, thousands of measures will be heard in various policy committees with all bills needing to advance from their house of origin to the opposite house by Friday, May 24.
ANALYSIS
2024 State Legislative Trends
Within respect to Foster City’s top priorities, legislative focus for 2024 seems to be consistent with recent prior years: housing and land use (102 bills in this space), governmental operations, and transportation, public works – all policy areas have seen movement in this year. Additionally, public safety has re-emerged as a top priority.
Together, these four (4) policy areas account for more than 350 of the bills that have been introduced this year. In an effort to advance the City’s public policy advocacy efforts, RPPG has been tracking priority legislation on behalf of the City. As noted previously, some of these bills will have an impact in our community as well impact the City’s ability to retain local decision making, conduct operations and/or create new financial and legal liability. Below are a sampling of the measures that touch on each of the themes outlined above. For a more comprehensive list of tracked priority measures, please refer to Attachment 1.
LAND USE PLANNING AND HOUSING
AB 1820 (Schiavo) Housing development projects: applications: fees and exactions. (As Amended 02/20/2024)
Existing law requires a housing development project be subject only to the ordinances, policies, and standards adopted and in effect when the preliminary application was submitted. This bill would authorize a development proponent that submits a preliminary application for a housing development project to request a fee and exaction estimate, as defined, and would require the local agency to provide the estimate within ten (10) business days of the submission of the preliminary application. The author’s intent is that such a request would allow developers to have a better financial picture of the cost of a development before committing to building the project, which would ensure affordable housing developments are brought online quickly and to completion without surprise costs. AB 1820 Press Release: Link
Status: Assembly Housing & Community Development Committee Set for Hearing April 10, 2024
AB 1886 (Alvarez) Housing Element Law: substantial compliance: Housing Accountability Act. (As Introduced 01/22/2024)
Current law permits a local jurisdiction to adopt its housing element if the Agency believes that it is substantially compliant with state housing laws. The California Housing and Community Development Department (HCD) has the ability to certify a housing element if it determines that it is substantially compliant with state housing laws and may seek additional changes to a housing element that may go beyond state housing goals.
However, current law allows an agency to adopt the draft housing element or amendment without changes and make specified findings as to why the draft element or amendment substantially complies with the Housing Element Law despite findings by HCD. This bill would provide HCD with a reputable presumption of validity thereby removing the ability for a local jurisdiction to adopt its housing element until HCD’s proposed revisions are adopted. AB 1886 Fact Sheet: Link
Status: Referred to Assembly Housing & Community Development Committee and Assembly Local Government Committee.
Set for Hearing in Assembly Housing April 10, 2024
AB 2023 (Quirk-Silva) Housing element: inventory of land: rebuttable presumptions. (As Amended 03/21/2024)
This bill, for the 7th and each subsequent revision of the housing element, would require a local government to complete the rezoning of sites within one year of the statutory deadline for the adoption of the housing element or the earlier of three (3) years after the date the housing element is adopted or 90 days after receipt of comments from HCD, as specified, if the local government satisfies certain requirements, including submitting a draft element or draft amendment to HCD for review within specified timeframes and adopting a draft element or draft amendment that the department finds to be in substantial compliance with the Housing Element Law, as specified.
Existing law requires a planning agency to submit a draft element revision or draft amendment to HCD for review at least 90 days prior to adoption and requires HCD, in written findings, to determine whether the draft element or amendment substantially complies with the Housing Element Law. Existing law, if HCD finds that the draft element or amendment does not substantially comply with the Housing Element Law, requires the legislative body to either change the draft element or draft amendment to substantially comply with the Housing Element Law or adopt the draft element or draft amendment without changes. Existing law requires a planning agency, promptly following the adoption of its element or amendment, to submit a copy to HCD.
This bill would specify that the duty to submit a copy of the adopted element or amendment to HCD does not excuse a legislative body from taking required actions in response to HCD finding that the draft element or amendment does not substantially comply with the Housing Element Law. More info: Link
Status: Assembly Housing & Community Development Committee Set for Hearing April 10, 2024
AB 2430 (Alvarez) Planning and zoning: density bonuses: monitoring fees. (As Introduced 02/13/2024)
This bill would prohibit a city, county, or city and county from charging a monitoring fee, as defined, on those types of housing developments if certain conditions are met.
Specifically, AB 2430 would prohibit a local government from charging a monitoring fee on affordable housing developments built using State Density Bonus Law that are already subject to a regulatory monitoring agreement with the California Tax Credit Allocation Committee (TCAC), the HCD, or the California Debt Limit Allocation Committee (CDLAC). The bill would provide that, beginning on January 1, 2025, any housing development that is currently placed in service, is subject to monitoring fees, and meets those conditions shall no longer be subject to those fees. AB 2430 Fact Sheet: Link Status: Assembly Housing & Community Development Committee Set for Hearing April 10, 2024
SB 1164 (Newman) Property taxation: new construction exclusion: accessory dwelling units. (As Introduced 02/14/2024)
This bill would exempt new ADU construction from property tax assessment for 15 years from the date of completion or until the property is sold. Specifically, this bill would exclude from classification as “newly constructed” and “new construction” the construction of an ADU, as defined, until 15 years have passed since construction on the ADU was completed or there is a subsequent change in ownership of the ADU. SB 1164 Press Release: Link
Status: Referred to Senate Revenue and Taxation Committee Set for Hearing April 10, 2024
CITY ADMINISTRATION, GOVERNMENTAL TRANSPARENCY AND PUBLIC ACCESS
AB 817 (Pacheco) Open meetings: teleconferencing: subsidiary body. (As Amended 01/17/2024)
This bill, until January 1, 2026, would provide additional flexibility under the Ralph M.
Brown Act to permit non-decision-making bodies to continue to meet remotely without adhering to posting requirements. This bill will assist in helping diversify City boards in an open and transparent manner. The bill includes a 2026 sunset date and requires an in-person location for public comment. It does not include an in-person quorum requirement for members.
Status: In Senate, awaiting referral to appropriate Senate Policy Committees.
AB 2715 (Boerner) Ralph M. Brown Act: closed sessions. (As Introduced 02/14/2024)
Existing law, the Ralph M. Brown Act, generally requires that all meetings of a legislative body of a local agency be open and public and that all people be permitted to attend and participate. Existing law authorizes a legislative body to hold a closed session on, among other things, matters posing a threat to the security of essential public services, as specified. This bill would additionally authorize a closed session to consider or evaluate matters related to cybersecurity, as specified, provided that any action taken on those matters is done in open session.
Status: Referred to Assembly Local Government Committee AB 2561 (McKinnor) Local public employees: vacant positions. (As Amended 03/11/2024)
This bill would require each public agency with bargaining unit vacancy rates exceeding 10% for more than 90 days within the past 180 days to meet and confer with a representative of the recognized employee organization to produce, publish, and implement a plan consisting of specified components to fill all vacant positions within the subsequent 180 days. The bill would require the public agency to present this plan during a public hearing to the governing legislative body and to publish the plan on its internet website for public review for at least one year. AB 2561 Fact Sheet: Link Status: Referred to Assembly Public Employment and Retirement Committee SB 1116 (Portantino) Unemployment Insurance: Trade disputes: eligibility for Benefits. (As Introduced 02/13/2024)
Current law makes an employee ineligible for benefits if the employee left work because of a trade dispute and specifies that the employee remains ineligible for the duration of the trade dispute. Existing case law holds that employees who left work due to a lockout by the employer, even if it was in anticipation of a trade dispute, are eligible for benefits.
This bill would restore eligibility after the first 2 weeks for an employee who left work because of a trade dispute. SB 1116 Press Release: Link Status: Referred to Senate Labor, Public Employee and Retirement Committee
PUBLIC SAFETY
AB 1772 (Ramos) Theft. (As Amended 02/01/24)
Existing law, the Safe Neighborhoods and Schools Act, enacted by Proposition 47, as approved by the voters at the November 4, 2014, statewide general election, defines and prohibits an act of shoplifting and prohibits prosecution for an act of shoplifting under any other law. Existing law defines shoplifting as entering a commercial establishment with intent to commit larceny while the establishment is open during regular business hours.
This bill, if enacted and subsequently approved by the voters, would revise the definition of shoplifting to require an intent to steal retail property or merchandise. AB 1772 Press Release: Link
Status: Referred to Assembly Public Safety Committee.
SB 905 (Weiner) Crimes: theft from a vehicle. (As Amended 03/18/2024) Existing law defines the crime of burglary to include entering a vehicle when the doors are locked with the intent to commit grand or petit larceny or a felony. Existing law makes the burglary of a vehicle punishable as a misdemeanor or a felony. This bill would make forcibly entering a vehicle, as defined, with the intent to commit a theft therein a crime punishable by imprisonment in a county jail for a period not to exceed one year or imprisonment in a county jail for 16 months, or 2 or 3 years.
Status: Referred to Senate Public Safety Committee, set for hearing April 2.
SB 982 (Wahab) Crimes: organized theft. (As Amended 03/05/24) Existing law, until January 1, 2026, makes a person guilty of organized retail theft, punishable as a misdemeanor or a felony, as specified, if the person acts in concert with one or more persons to steal merchandise from one or more merchant’s premises or online marketplaces with the intent to sell or return the merchandise for value, acts in concert with 2 or more persons to receive, purchase, or possess merchandise knowing or believing it to have been stolen, acts as an agent of another to steal merchandise from one or more merchant’s premises or online marketplaces as part of an organized plan to commit theft, or recruits, coordinates, organizes, supervises, directs, manages, or finances another to undertake acts of theft. This bill would extend the operation of the crime of organized retail theft indefinitely.
Status: Passed out of Senate Public Safety committee. Referred to Senate Appropriations committee.
SUSTAINABILITY AND TRANSPORTATION
AB 2427 (McCarty) Electric vehicle charging stations: permitting: curbside charging. (As Introduced 02/13/2024)
Existing law creates the Governor’s Office of Business and Economic Development, known as “GO-Biz,” and requires GO-Biz to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth. Existing law continues into existence the zero-emission vehicle (ZEV) division within GO-Biz as the Zero- Emission Vehicle Market Development Office. Existing law references GO-Biz’s Electric Vehicle Charging Station Permitting Guidebook, which recommends best practices for electric vehicle supply equipment permitting. This bill would require the office to develop a model permitting checklist, model zoning ordinances, and best practices for permit costs and permit review timelines to help local governments permit curbside charging stations as part of the office’s development of the Electric Vehicle Charging Station Permitting Guidebook or any subsequent updates. The bill would also require the office to consult with local governments, electric vehicle service providers, and utilities while developing the above-described materials.
Status: Referred to Assembly Transportation Committee and Assembly Local Government committee. Set for hearing in Assembly Local Government committee 04/10/24.
SB 915 (Cortese) Local Government: autonomous vehicles. (As Introduced, 01/09/2024)
This bill would prohibit an autonomous vehicle service, which has received approval to conduct commercial passenger service or engage in commercial activity using driverless vehicles by the Department of Motor Vehicles, the Public Utilities Commission, or another state agency, from commencing operation within a local jurisdiction until authorized by a local ordinance enacted pursuant to the bill’s provisions. The bill would authorize each city, county, or city and county in which an autonomous vehicle has received authorization to operate, to protect the public health, safety, and welfare by adopting an ordinance or resolution in regard to autonomous vehicle services within that jurisdiction.
The bill would require each city, county, or city and county that adopts an ordinance or resolution to include certain provisions within that ordinance or resolution. These would include a policy for entry into the business of providing autonomous vehicle services including a permitting program, the establishment of reasonable vehicle caps and hours of service restrictions, and the establishment of an interoperability or override system accessible by first responders in case of an emergency.
Status: Set for hearing, April 3, 2024, Senate Local Government committee.
SB 1031 (Wiener) San Francisco Bay area: local revenue measure: transportation improvements. (As Amended 03/18/24)
This bill would authorize the Metropolitan Transportation Commission (MTC) to raise and allocate new revenue and incur and issue bonds and other indebtedness, as specified.
In this regard, the bill would authorize the commission to impose a retail transaction and use tax, a regional payroll tax, a parcel tax, and a regional vehicle registration surcharge in all or a subset of the nine (9) counties of the San Francisco Bay area, in accordance with applicable constitutional requirements. The bill would require the parcel tax to be collected by counties and the other three (3) taxes to be collected by specified state agencies and would require the net revenues from those taxes to be remitted to the commission, as prescribed. The bill would require the revenue generated pursuant to these provisions to be used for transportation improvements in the San Francisco Bay area, including for various transit purposes, and would require the commission to distribute those revenues in accordance with specified requirements and expressions of legislative intent.
Status: In Senate Rules, Awaiting Committee Assignment
ENERGY AND UTILITIES
AB 1999 (Irwin) Electricity: fixed charges. (As Introduced 01/30/2024) Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to adopt new, or expand existing, fixed charges, as defined, for the purpose of collecting a reasonable portion of the fixed costs of providing electrical service to residential customers. Under existing law, the commission may authorize fixed charges for any rate schedule applicable to a residential customer account. Existing law requires the commission, no later than July 1, 2024, to authorize a fixed charge for default residential rates to be established on an income-graduated basis, with no fewer than 3 income thresholds, so that low-income ratepayers in each baseline territory would realize a lower average monthly bill without making any changes in usage (AB 205). This bill would repeal the provisions described in the preceding paragraph. The bill would instead permit the commission to authorize fixed charges that, as of January 1, 2015, do not exceed $5 per residential customer account per month for low-income customers enrolled in the California Alternate Rates for Energy (CARE) program and that do not exceed $10 per residential customer account per month for customers not enrolled in the CARE program.
The bill would authorize these maximum allowable fixed charges to be adjusted by no more than the annual percentage increase in the Consumer Price Index for the prior calendar year, beginning January 1, 2016. This bill contains other related provisions and other existing laws. AB 1999 Press Release: Link
Status: Referred to Committee on Utilities & Energy
FULL BILL TEXT TO ANY MEASURE CAN BE FOUND BY GOING TO THE STATE’S LEGISLATIVE INFORMATION WEBSITE: THAT CAN BE ACCESSED BY
CLICKING HERE
California Environmental Quality Act
Not Applicable
FISCAL IMPACT
There is no fiscal impact associated with receiving this report.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Smart Planning, Development, and the Local Economy
ATTACHMENTS:
Attachment 1 – Full Priority List
Attachment 2 – Council Adopted Legislative Platform