Agenda Item No. 9
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: March 13, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Deputy City Manager
SUBJECT: State Legislative Update and Approval of 2023 Legislative Platform and Letter of Opposition to Initiative 21-0042A1
RECOMMENDATION
Receive a presentation on pending State legislation from the League of California Cities; approve the 2023 City of Grover Beach Legislative Platform; and authorize the Mayor to sign a letter opposing Initiative 21-0042A1, also known as the California Business Roundtable “Taxpayer Protection and Government Accountability Act.”
BACKGROUND:
The League of California Cities (Cal Cities) was founded in 1898 to advocate for local control through advocacy in the State legislature, in court and through strategic outreach and education for the public, policymakers and stakeholders. Annual advocacy efforts by Cal Cities are determined by seeking resolutions from Cal Cities membership, including the City. The League’s Advocacy Priorities for 2023 are:
• Protect and expand investments to prevent and reduce homelessness • Increase the supply and affordability of housing while retaining local decision-making • Improve public safety in California communities
• Safeguard essential local revenues and support fiscal sustainability.
As part of the City’s involvement with Cal Cities, the Channel Counties Division (San Luis Obispo, Santa Barbara and Ventura counties) Regional Public Affairs Manager David Mullinax will present the Council with an overview of pending legislation at the State level and to discuss the value and importance of legislative platforms for the Council’s future consideration. 2023 City of Grover Beach Legislative Platform
Legislation at the State and Federal level often affects cities’ revenue sources, mandated services and local control of governance. The purpose of a City Council-approved Legislative Platform is to establish parameters to guide the Council and staff in taking positions as a City on priority issues that impact City governance, policy issues, or services. Often, the timeframe to respond to proposed legislation or other actions by State and Federal government does not allow for full Council approval at a City Council meeting. Therefore, adoption of the proposed 2023 Legislative Platform (see Attachment 1) will authorize the City Manager to take positions on legislation on behalf of the City consistent with the platform to allow for timely communications through opposition or support letters on legislative proposals and actions in State and Federal government.
Staff would subsequently inform the Council of such communications when carried out.
Staff Report: Legislative Update, 2023 Legislative Platform, and Initiative Opposition Letter Page 2 March 13, 2023
The platform is organized in the following topic-based categories:
• General Government – Generally supports local control to address local needs and opposes State preemption of local authority and unfunded or underfunded mandates; • Local Government Finance – Generally supports legislation protecting or enhancing City revenues and opposes unfunded mandates, restrictions on revenues and restrictions on contracting for cities;
• Public Safety – Generally supports funding and support for emergency response and crime reduction programs;
• Transportation and Public Works – Generally supports funding and expedited processes capital and infrastructure projects, supports funding for key water supply projects, and funding for implementation of organic waste disposal requirements; • Resources and Environment – Generally supports funding and programs related to energy and water supply projects along with organic waste disposal • Community Development – Generally supports funding and programs to address homelessness, supports legislation to reform cannabis regulations and supports protection of transient occupancy tax revenue.
Letter Opposing Initiative 21-0042A1 (California Business Roundtable Initiative) Recently, an initiative funded by a group called the California Business Roundtable qualified for the November 2024 statewide ballot. The California Business Roundtable is an organization comprised of senior executives of many large companies in the state. The initiative, titled "Taxpayer Protection and Government Accountability Act,” seeks to limit the ability of state and local governments to enact, modify or expand taxes, assessments and fees. If passed, the initiative would establish a two-thirds voter approval requirement for any new or modified special taxes. Additionally, the initiative would require that local increases to taxes or fees be approved by a majority of statewide voters, would create new grounds to legally challenge governmental funding sources and would retroactively void all state and local taxes or fees adopted after January 1, 2022 if not in compliance with the restrictions of the initiative. Staff recommends the City join the League of California Cities and other local government advocacy groups in opposing this initiative. The proposed letter of opposition is attached as Attachment 2 and the Cal Cities summary of the initiative is attached as Attachment 3
FISCAL IMPACT
There is no fiscal impact associated with these actions.
ALTERNATIVES
The Council has the following alternatives to consider:
1) Receive a presentation on pending State legislation from the League of California Cities; approve the 2023 City of Grover Beach Legislative Platform; and authorize the Mayor to sign a letter opposing Initiative 21-0042A1, also known as the California Business Roundtable “Taxpayer Protection and Government Accountability Act”; or 2) Do not approve Legislative Platform and authorize Mayor to sign letter opposing Initiative 21-0042A1; or
3) Provide alternative direction to staff.
Staff Report: Legislative Update, 2023 Legislative Platform, and Initiative Opposition Letter Page 3 March 13, 2023
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. 2023 City of Grover Beach Legislative Platform
2. Letter of Opposition to Initiative 21-0042A1
3. Cal Cities Summary of Initiative 21-0042A1
City of Grover Beach
2023 Legislative Platform
Approved by City Council March 13, 2023
Attachment 1
Contents
SECTION 1 – INTRODUCTION................................................................................................. 1
1.1 General Purpose.......................................................................................................... 1
1.2 Authority ...................................................................................................................... 1
1.2.1 Adoption. .............................................................................................................. 1
1.2.2 City Manager Authority. ........................................................................................ 1 SECTION 2 – GENERAL GOVERNMENT................................................................................. 1
2.1 Local Control................................................................................................................ 1 SECTION 3 – LOCAL GOVERNMENT FINANCE...................................................................... 1 SECTION 4 – PUBLIC Safety .................................................................................................... 2
4.1 General........................................................................................................................ 2
4.2 Emergency Response.................................................................................................. 2
4.2 Crime Reduction .......................................................................................................... 2
4.3 Victim’s Rights ............................................................................................................. 2 SECTION 5 – TRANSPORTATION AND PUBLIC WORKS....................................................... 2
5.1 General Infrastructure.................................................................................................. 2 SECTION 6 – RESOURCES AND ENVIRONMENT .................................................................. 2
6.1 Water Resiliency.......................................................................................................... 2
6.2 Organic Waste Disposal............................................................................................... 2 SECTION 7 – COMMUNITY DEVELOPMENT........................................................................... 3
7.1 Housing and Homelessness ........................................................................................ 3
7.2 Commercial Cannabis.................................................................................................. 3
7.3 Travel and Tourism...................................................................................................... 3 1 SECTION 1 – INTRODUCTION
1.1 General Purpose
The City of Grover Beach Legislative Platform (Platform) is adopted to formalize Council priorities and allow for expedient promotion of the City’s interests in legislative matters.
The Platform is designed to guide the Council and staff in taking appropriate action on legislative proposals and actions in the State and Federal governments.
1.2 Authority
1.2.1 Adoption - The Platform is developed with input from all City departments and is adopted by the City Council annually.
1.2.2 City Manager Authority – The City Manager or designee may take actions to support or oppose proposed legislation without prior approval of the City Council when consistent with the platform.
SECTION 2 – GENERAL GOVERNMENT
2.1 Local Control
• Support legislation that enhances local control for various permitting, land use, contracting and discretionary actions and allows cities to address the needs of local communities within a framework of regional cooperation
• Oppose legislation that preempts local authority by the State and impedes the City’s ability to address community needs.
• Oppose legislation that imposes unfunded or insufficiently funded mandates by the State.
SECTION 3 – LOCAL GOVERNMENT FINANCE
• Support legislation that protects, increases and/or modernizes revenue streams for local priorities.
• Support legislation to provide full and prompt reimbursement to all local agencies for all state-mandated programs and/or infractions and losses associated with local revenue shifts.
• Oppose legislation that mandates new duties, responsibilities or obligations to a City under state realignment.
• Oppose legislation that increases the threshold for voters to pass new or increased state or local taxes needed to fund local services and infrastructure. • Oppose legislation that eliminates or restricts control of or creates barriers to the City’s revenue sources.
• Oppose legislation that restricts the City’s ability to contract for goods or services or otherwise increases costs of contracting for goods or services. 2 SECTION 4 – PUBLIC SAFETY
4.1 General
• Support legislation to establish a peace officer decertification process through POST.
4.2 Emergency Response
• Support legislation to provide funding for disaster prevention efforts, emergency response planning, and training and equipment for response and recovery efforts. • Support legislation to develop and implement statewide-integrated public safety communication systems.
4.2 Crime Reduction
• Support legislation to allow for greater crime reduction in the community. • Support legislation to add fentanyl to the list of illegal substances subject to the existing weight enhancements for criminal sentencing.
4.3 Victim’s Rights
• Support legislation increasing the rights of victims of crimes.
SECTION 5 – TRANSPORTATION AND PUBLIC WORKS
5.1 General Infrastructure
• Support legislation providing funding for revolving loan fund programs to assist with financing capital costs of infrastructure improvements, including facility replacements. • Support legislation to expedite project delivery processes and expand project delivery methods for use by all cities for facilities and infrastructure. • Support legislation that secures state and federal fees and taxes originally programmed for roadway repairs, highway congestion management and transportation improvement projects.
• Oppose legislation that slows, impairs or eliminates funding for public infrastructure.
SECTION 6 – RESOURCES AND ENVIRONMENT
6.1 Water Resiliency
• Support legislation and administrative actions that provide funding or grant programs for energy and water efficiency improvements.
• Support legislation that provides funding for key water supply and infrastructure grant and loan programs.
6.2 Organic Waste Disposal
• Support legislation that provides additional funding or other assistance to implement organic waste disposal requirements from SB 1383.
3 SECTION 7 – COMMUNITY DEVELOPMENT
7.1 Housing and Homelessness
• Support legislation to streamline housing development while protecting the City’s permitting, fees and regulatory processes.
• Support legislation to providing funding mechanisms for infrastructure needed for housing development.
• Support legislation providing funding for homeless services and shelter projects and operations.
• Support legislation to allow the City more flexibility in creating shelters and temporary and permanent housing.
• Support legislation to provide funding for cleanup efforts as a result of homeless encampments.
7.2 Commercial Cannabis
• Support legislation that provides for realistic reforms of regulatory barriers to the legal cannabis industry
• Support legislation that allows for the sale of food and non-alcoholic drinks at cannabis retailers that permit onsite consumption of cannabis products.
7.3 Travel and Tourism
• Oppose legislation that would reduce or eliminate online travel agencies or platforms from collecting and remitting Transient Occupancy Tax to local jurisdictions.
City of Grover Beach
Mayor Karen Bright Mayor Pro Tem Anna Miller
Council Member Robert Robert, Council Member Daniel Rushing, Council Member Clint Weirick Matthew Bronson
City Manager
154 South Eighth Street Grover Beach, California 93433 www.groverbeach.org Administrative Services/Water (805) 473-4550 City Council/City Manager (805) 473-4567 City Clerk (805) 473-4568 Community Development - Building, Planning & Economic Development (805) 473-4520 Human Resources (805) 473-4564 Parks & Recreation (805) 473-4580 Police/Non-Emergency (805) 473-4511 Public Works (805) 473-4530 March 13, 2023
Bismark Obando
Director of Public Affairs, League of California Cities 1400 K Street, Suite 400
Sacramento, CA 95814
Re: Letter Opposing Initiative 21-0042A1
On March 13, 2023, the Grover Beach City Council voted to oppose Initiative 21-0042A1, a deceptive proposition aimed for the November 2024 statewide ballot that would significantly jeopardize cities’ ability to provide essential services and infrastructure for our residents.
The measure includes undemocratic provisions that would make it more difficult for local voters to pass measures needed to fund local services and projects and would limit voter input by prohibiting local advisory measures where voters can express a preference on how they want their local tax dollars spent. This measure creates new constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, including impacts on local infrastructure and our environment.
This measure also may make it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods. Unless defeated, the measure puts billions of dollars currently dedicated to local services at risk, and could force cuts to fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more.
The proposed initiative would post a significant challenge to the City, hampering its ability to maintain revenues at a level to effectively and efficiently provide needed services for the community. You may list the City of Grover Beach in formal opposition to Initiative #21-0042A1 and include our City as part of the growing coalition of public safety, labor, local government, infrastructure advocates, and other organizations throughout the state opposed to this deceptive proposition.
Sincerely,
Karen Bright
Mayor
City of Grover Beach
Attachment 2
C: Senator John Laird
Assembly Member Dawn Addis
Cal Cities Regional Division Manager David Mullinax
Cal Cities Summary of Business Roundtable Initiative 21-0042A1
BACKGROUND
On Feb. 1, 2023, the “Taxpayer Protection and Government Accountability Act,” or AG# 21-0042A1, qualified for the November 2024 ballot. This anti-local control measure will decimate vital local and state services to the benefit of wealthy corporations. The measure is sponsored by the California Business Roundtable (CBRT) — the lobbying arm of the largest and wealthiest corporations in California.
Cal Cities, along with a broad coalition of local governments, labor, public safety, education, and infrastructure advocates, strongly oppose this initiative.
SUMMARY
The initiative limits voters’ authority, adopts new and stricter rules for raising taxes and fees, and may make it more difficult to hold violators of state and local laws accountable.
Effective date
• All new or increased taxes or fees adopted by the Legislature, a city council, or the local voters after Jan. 1, 2022, must comply with the Act’s new rules.
State taxes
• All new or increased state taxes will require majority voter approval.
Local taxes
• New requirements for voter approval:
o when an existing tax is applied to a newly annexed territory. o when an existing tax is applied to a new service or product, for example when a utility user tax is applied to a new service.
• All new or increased taxes adopted after Jan. 1, 2022, must include a sunset date.
Fees and charges
• Requires that charges for access, use and rental of government property be “reasonable” such as fees charged for use of government facilities and public works infrastructure to oil companies, utilities, gas companies, cable companies, and other corporations.
• Fees and charges for services and permits may not exceed the “actual cost” of providing the product or service for which the fee is charged. “Actual cost” is the “minimum amount necessary.” Examples include planning services, excavation and encroachment permits, preparation of candidate statement, and permit parking. • State and cities have burden of proving by “clear and convincing evidence” that a fee/charge is not a tax, that the amount is reasonable, and that it does not exceed the “actual cost.”
Attachment 3
• No fee or charge or exaction regulating vehicle miles traveled can be imposed on new development.
Fines and penalties [administrative enforcement of state law and municipal codes] • May require voter approval of fines and penalties for corporations and property owners that violate state and local laws unless a new, undefined adjudicatory process is used to impose the fines and penalties. Examples include nuisance abatement, organic waste reduction requirements, and failure to maintain a vacant property.
Voters
• Local advisory measures are prohibited. No measure may appear on the ballot asking for approval of a general tax that would express the voters' preference for how the tax revenue should be used.
• Overturns Upland decision so taxes proposed by initiative are subject to the same rules as taxes placed on the ballot by a city council.
• Voters may not amend a city charter to impose, extend, or increase a tax or fee.
Fiscal
• Puts approximately $2 billion from fees and charges at risk each year, subject to legal peril.
• Puts approximately $2 billion of annual tax revenue at risk. Many tax measures approved between 2022-2024 will need to be resubmitted to voters to comply and be reapproved.
TALKING POINTS
Jeopardizes vital local and state services
• This far-reaching measure puts at risk billions of dollars currently dedicated to critical state and local services.
• It could force cuts to fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more.
Undermines voter rights, transparency, and accountability • This misleading measure changes our Constitution to make it more difficult for local voters to pass measures needed to fund local services and projects. • It also includes a provision that would retroactively cancel measures that were passed by local voters — effectively undermining the rights of voters to decide for themselves what their communities need.
• It would limit voter input by prohibiting local advisory measures, where voters provide direction to politicians on how they want their local tax dollars spent.
Opens the door for lawsuits, bureaucracy, and red tape that will cost taxpayers and hurt our communities
• The measure would encourage lawsuits, bureaucracy, and red tape that would cost local taxpayers millions — while significantly delaying and stopping investments in vital services.
Gives wealthy corporations a major loophole to avoid paying their fair share — forcing local residents and taxpayers to pay more
• The measure would create new constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, including local infrastructure and our environment — shifting the burden and making individual taxpayers pay more.
Allows corporations to dodge enforcement when they violate environmental, health, public safety, and other laws
• The deceptive scheme may create new loopholes that make it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods.